System Approach to Management: Meaning, Advantages and Disadvantages

Systems approach to management is a collection of techniques and strategies that allow organizations to function as a cohesive unit. The system approach to management is a collection of tools and techniques that managers can use to improve the performance of their organizations. By taking a holistic view of the organization, managers can identify and address issues before they become major problems. The systems approach also allows managers to respond quickly to changes in the environment, thus ensuring that the organization remains competitive.

The system approach is based on the belief that the organization is a complex, interconnected system and that any change made in one part of the organization will have an impact on other parts of the organization. An organization is a system of mutually dependent parts, each of which may include many subsystems. A subsystem is a collection of elements that interact with one another to achieve a common goal. For example, a department within an organization may be considered a subsystem, as it has its own set of goals that are dependent on the goals of the larger organization.

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General System Theory

Ludwig von Bertalanffy proposed the systems approach to understanding complex phenomena under the name of General System Theory. This approach views complex phenomena as systems made up of interconnected parts, and emphasizes the study of how those parts interact with one another. Ludwig von Bertalanffy published his general systems theory in 1968, despite creating it orally in the 1940s.

Elements of Systems Approach

Organizations consist of many interconnected, interacting, and interdependent parts. System parts are called subsystems. Subsystems influence each other and the system as a whole. Only by analyzing and understanding each subsystem in relation to the other subsystems and to the organization as a whole can its position and function be understood.

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Subsystems are strengthened by their interactions and associations with one another. Due to this, the organization’s collective contribution is greater than the sum of the individual contributions of its subsystems. This is known as synergy. An environment and a system are separated by a boundary. Depending on the boundary, an organization’s internal and external parts are distinguished. The employees of a company are within its boundaries, as are the creditors; the customers are external to the company.

Feedback refers to the environment’s reaction to the output. A system’s performance can be evaluated and improved through feedback. It is common for organizations to have several alternative methods of accomplishing the same task or achieving the same goal.

Advantages of System Approach

By using a system-wide perspective, managers can see how different parts of the organization interact with one another and identify ways to improve efficiency.

A systems approach to management is one that takes into account the entirety of a problem or situation, rather than just individual parts. This holistic view can help to resolve issues in a more effective and efficient manner.

It is designed to encourage managers to integrate their approaches to problems rather than analyze them in isolation.

Disadvantages of System Approach

In this approach, system differences are not taken into account. There is no specification of the nature of interactions and interdependencies in this philosophy.

There are many times when a specific issue leads to focusing on a component and not on the overall system while trying to solve it.