Question

(a) Using a diagram explain the systems approach to management. .

(b) Assuming the organisation that you are working for uses the systems approach to management, describe how this approach is practiced in your organisation. (10marks)

Answer 1

Ans- a)

The System approach to management considers the organization a system consisting of dynamic and inter-related parts which act in an external environment in a synchronized manner for the organization to function properly

According to the approach each part of the organization represents a part, department or a sub-department, which can be further divided into sub-systems

Each part continuously and effectively interacts with the complete system as a group of sub-systems and integrates the goals of different department and sub-departments of the organization with the overall goals of the organization’s growth, development and profitability, along with integrating the goals of the organization with the goals of the environment or society in which it operates. Integration of the goals of each sub part maintains balance or equilibrium and enables the organization to develop in a dynamic environment.

The approach accumulates the knowledge from different and diverse fields of study such as economics, management, financial planning and strategy etc. As the organization interacts with different components of the society, the system facilitates optimum utilization of different fields of knowledge to improve interaction among its sub-parts.

The Systems approach impacts the future of the organization by enabling the organization to constantly interact with respond to any changes in the internal and external environmental factors; it facilitates the organization to frame programs, policies and procedures that promote business objectives in sync with social and environmental objectives.