Systems Approach to organization & Modern Organization Theory.

Systems Approach to organization & Modern Organization Theory.

Systems Approach to organization

According to system approach the organization is considered as a single integrative entity composed of different interrelated elements, organization is considered as one system integrating the various parts of the organization which functions in a coordinated manner to fulfill the desired objective of the organization. According to this theory each constituent element of the organization is interrelated to each other and any effect on it will also effect the overall organization, the prime role of manager is to coordinate the different activities and constituents of the organization to achieve the targets.

According to system approach it is the synergy which comes from the coordination of all elements of the organization brings the unique competencies of the organization, we can’t view a department or an activity in isolation to improve the performance of the organization.

Basics of the system theory

System: - An integration of constituents/ parts or sub system working harmoniously in a interdependent relationship, interacting with internal and external environment to achieve a predetermined objective, system try to synergize its elements by way of efficient coordination so that it can perform in the best possible manner.

Sub System:-  a part of the overall system which also acts as a system in itself, e.g. a functional departmental of the organization can be seen as a part of the organization system and can also be considered a system in itself. So we can different systems like goal sub system, technical sub system, structural sub system, managerial sub system, psychological sub system.

Synergy:-  synergy means the effect of system is more as compared to the sum total effect of its constituent elements. If the different activities and sub systems of the organization are coordinated well then only synergy can be achieved and this is the challenge which the management face.

 Classification of the system: - the system can be open, closed or semi permeable, open system is a system which interacts with the environment outside it, in a closed system it do not interact with the external environment, semi permeable is a system which allows only selective interaction with the external environment.

System Boundary: - a barrier which separates the system and its constituents from the external environment. Boundary allows or disallows the system to interact with the external environment and also distinguish the system from the environment as a whole.

Process and Flow – A system is formed to achieve desired objectives and for it the system require some inputs and transform it in to the out puts, any activity within a system which require an input and transformed into an output is known as process, system is also a process which is an integration of so many interlinked sub processes. Any system is dynamic which means there is movement or flow in the system, this flow is of the various materials, information or communication, finance etc. if these flows are not maintained appropriately then system will fail to perform.

Feedback Mechanism:-  every system has a mechanism of feedback and feed forward, this mechanism is required to begin and end a process, to monitor and evaluate whether the things are going as planned. To find out, the status of overall functioning of system.

The system theory of management is one step further to all the previous theories of management, it envisaged the overall organization and all its activities as one entity, it emphasized the interrelations and interdependencies of each part of the organization in the success. This theory conceptualized the ideas focusing only on one component will not lead to success; the manager should consider the effects their decisions will carry on the entire system even when a single element of the system is related.

System theory compiled the scientific management theory, administrative theory and the human relation theory in one.

Modern Organization Theory

Modern organization theory is integration of the different management theories so as to combine the valuable concepts of all in to one, the management organization theory have the points

System View of the organization:- the organization is considered as a system which is open to its environment, it receives inputs from the environment and process it to relevant outputs in the form of products or services. The organization not only got effected but also effects the environment in which it operates. So the main aim of the organization is to make a suitable fit between itself and the environment in which it operates.

Adaptive and Dynamic :- the modern organization theory emphasize adaptive and dynamic nature of organization, according to this organization need to be dynamic I.e. should be flexible to change to suit the environment and can adapt these changes quickly to perform better in business.

Multilevel and multidimensional:- the theory encompass the micro and macro aspects of the organization, it not only see organization and its components as a system it also view organization as sub system of the environment as a social, economical and business entity of the industry, nation or society.

Multidisciplinary: - the modern organization theory is multidisciplinary in nature as it draws its concept from various disciplines like psychology, economics, sociology, engineering, anthropology etc. The major focus is on dealing with situations by way of study and research from numerous disciplines.

Motivation: -   the theory accepts to the fact that each individual has different sets of needs which motivate him, the behavior is the outcome of so many different factors and we have to deal with them differently.

Descriptive and probabilistic in nature:-  the theory only describe how the management is done it doesn’t tell the ways to manage, it means it is only giving a description and not prescribing any ways as it depends on probabilities or chances of happening a certain outcome, according to this theory we can only give probabilistic view about the system’s outcome, we can not predict in absolute terms.

Integrative: - The theory integrates all the important areas and concepts of management theory.