Explore the Systems Approach in Organizational Behavior: Key Features Unveiled

Systems Approach to Management

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. Organizations as systems have a variety of goals. The important among them are survival, integration and adaptation with environment and growth.

Tom Northup - “All organizations are perfectly designed to get the results they are now getting. If we want different results, we must change the way we do things." 

Systems approach is an approach that entails analysis of problems and come up with a blend of solutions. It is a generally approach that involves tackling problems in an advanced disciplined manner keeping priorities in mind. It is a branch of systems thinking process.

The entire system can be broken into three parts namely - input, process and output.

1. Input involves the raw materials, funds, technology, etc.
2. The process refers to activities related to management, technology, operations, etc.
3. Outputs are the products, results, etc.
4. The response or feedback in a system focuses on the information and data which is utilized for executing certain operations. These inputs aid in correcting the errors found in the processes.

It is a management approach which enables the leadership to see the company as a unified part or a major section of the larger outside corporate environment. Even a small activity in a section of a company has a substantial effect on other sections of the company. Such a system may be biological, physical or social, and may enable the management to efficiently determine the long-term goals of the company. The systems approach states that, for realizing the operations of an entity, it is essential to see the entity as a whole system.

Feature of System approach 

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 emphasizes 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.

Elements of a System 

A system is made of different subsystems: internal and external. These subsystems are interconnected and influence each other and the system as a whole. Each of the subsystem interacts with the adjacent subsystem and they work in synergy for the betterment of the entire system. The limits, within which the internal subsystems function, are determined by the system boundary. The external subsystems, on the other hand, are those which lie outside the boundary limits, but still influence the system.

For example: In a supermarket, the various subsystems are the marketing and advertising, sales, admin and finance department. These are the internal subsystems that lie within the boundary. The external subsystems here are the buyers or the customers who visit the store. Only when all these subsystems work together, the system is said to function effectively.

1. Open and Closed System - The organization can act as an open or a closed system.
2. An open system is the one where the elements of the system can interact with the environment. This interaction can involve the transfer of material, information or manpower. The purchase department in any organization can be an example of open system. The buyers have to interact with suppliers (environment) and other internal departments to carry out the purchasing activity.
3. A closed system is the one which does not interact with the environment at all. There is no exchange of information, material or manpower between the system and environment. It is sometimes referred as an 'isolated system'. An assembly line can be treated as a closed system if it does not interact for supply of raw materials. A research department can also be an example of closed system.

All individual elements are highly dependent on each other, so a change in any one of them may disturb other sections. The company can analyze its current position and then look for areas where improvement is needed. For this, the organization can frame a set of questions based on the seven areas and look for answers for the same. Once the lacking areas are identified, the right action can be taken. The systems approach to management is the key to coordinate all the processes in a large company, and define the importance of individual procedures in the firm.

Advantages of Systems Approach in management

1. It concentrates on end results rather than the means.
2. It provides an orderly and efficient plan of action.
3. It develops coordination of the specialized activities.
4. It provides a good basis of control
5. It frees management from many daily details of operations management.

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