What is System approach theory of Management?

[rms]

Explain the features of System approach theory of Management

[nbm]

A system is a set of inter-connected and inter-related elements directed to achieve certain goals.
This theory views organisation as an organic and open system composed of many sub-systems. As a
system organisation is composed of a number of sub-systems viz. production, supportive, maintenance,
adaptive managerial, individuals and informal groups.

All these sub-systems operate in an interdependent and interactional relationship. The various
subsystems or parts of an organisation are linked with each other through communication, decisions,
authority responsibility relationships, objectives, policies, procedures and other aspects of coordinating
mechanism. Organisations as systems have a variety of goals. The important among them are survival,
integration and adaptation with environment and growth.

The major features of the approach to the study of management may be summed up as under:

1. A system consists of inter-related and interdependent parts.

(2) The approach emphasises the study of the various parts in their inter-relationships rather than
in isolation from each other.

(3) The approach brings out the complexity of a real life management problem much more sharply
than any of other approaches.

(4) The approach may be utilised by any of the other approaches.

(5) The approach has been utilised in studying the function of complex organisations and has been
utilised as the base for new kinds of organisation.

The Systems Approach has an edge over the other approaches insofar as its closeness to reality is
concerned. However the problem with the approach is its utter complexity particularly when it comes
to a study of large and complex organisations. The conceptual framework of management provided by
this approach is too abstract to be useful to practising managers. The approach recognises the input of
environment but does not functionally relate it to management concepts and techniques.