o A set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
o An organized or complex whole; an assemblage or
combination of things or parts forming a complex
o A system is basically a combination of parts
(subsystem). Each part may have various sub-parts.
o An organization is a system of mutually dependent
parts, each of which may include many subsystem.
Management as a Social System
Management as Open System
Multilevel and Multidimensional
An integral approach
Are not influenced by and do not interact
with their environment (all system input and
output is internal).
Dynamically interact to their environments
by taking in inputs and transforming them
into outputs that are distributed into their
1. Inputs – are people, money, information,
equipment, and materials required to produce and
organization’s goods or services.
2. Output – the products, services, profits, loses,
employee, satisfaction or discontent, and the like
that are produced by the organization.
3. Transformation Process – the organization’s
capabilities in management and technology that are
applied to converting inputs into outputs.
4. Feedback – information about the reaction of the
environment to the outputs that affects the inputs.
It is a management model that describes 7 factors to
organize a company in an holistic and effective
Together these factors determine the way in which
a corporation operates. Managers should take into
account all seven of these factors, to be sure of
successful implementation of a strategy. Large or
They're all interdependent, so if you fail to pay
proper attention to one of them, this may effect all
others as well. On top of that, the relative importance
of each factor may vary over time.
"Hard" elements are
easier to define or
them: These are
and reporting lines
"Soft" elements, on the
other hand, can be more
difficult to describe, and
are less tangible and more
influenced by culture.
However, these soft
elements are as important
as the hard elements if the
organization is going to be
Strategy - Actions a
company plans in
response to or
anticipation of changes
in its external
environment. It may
also be seen as plans
for allocation of
resources to enable the
Structure - Basis for
influenced primarily by
strategy and by
and diversity. This is
also the way that
different units in the
firm relate to each
Systems - Formal and
informal procedures that
support the strategy and
structure. Often internal
systems are more powerful
than they are given credit
for. They are also the
procedures and processes
that characterize how the
work should be done and
internal systems used to
accomplish the needed
Style - The culture of
the organization, how
key managers behave
and what they do
rather than what they
say. It answers the
questions: How do they
spend their time? What
are they focusing their
Staff - Human resource
processes and efforts used
to develop managers,
socialization, and the
shaping of basic
management values, It also
includes ways of
introducing young recruits
to the company, and the
support given to manage
Skills - These are the
distinctive and core
competencies of the
company, They include the
ways competencies are
expanded or shifted. This
can also be determined
from the perspective of
core competencies that
exist and are developed in
Shared values -Also called super ordinate goals, these
are the central believes and attitudes, guiding concepts,
and fundamental ideas around which a business is built.
Usually stated at the abstract level, they have great
meaning inside the organization even though outsiders
may not see or understand them. They can be
summarized as what extent the company stands for and
what it believes in.
These seven elements also
help estimate the effectiveness
of a firm. They are interrelated -
- if one element changes, it will
affect all the others.
It aims at meaningful analysis of
organizations and their management.
It facilitates the interaction between
organization and its environment.It
guides managers to avoid analysing
problems in isolation and to develop
an integrated approach.
The approach does not recognize the
differences in systems.
Systems philosophy does not specify
the nature of interactions and inter-
Unpractical: It cannot be easily and
directly applied to practical problems.
Coordination of the organization’s parts is
essential for proper functioning of the
Decisions and actions taken in one area of
the organization will have an effect in
other areas of the organization.
Organizations are not self-contained and,
therefore, must adapt to changes in their