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Management Theory
 

Management Theory

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a requirement in one of my subjects in Masters...

a requirement in one of my subjects in Masters...

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  • These are now refined into planning, organizing, leading and controlling – the essentials of management in management textbooks
  • Planning – deciding what needs to happen in the future (today, next week, next month, next year or over the next 5 years others) and generating plan of actions

Management Theory Management Theory Presentation Transcript

  • Management Theory Joefil C. Jocson
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Outline
    Learning Expectations
    Definition of Management
    Introduction
    Pre-Classical Theory
    The Systematic Approach
    Classical Theory
    Scientific Management
    Administrative Management
    Bureaucratic Management
    The Human Relation School
    The Social System School
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Expectations
    Know the why, what, when and how of the Systematic Management and classical approaches to management – the Scientific, Administrative, and Bureaucratic.
    Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory.
    Explain the principle of job specialization and division of labour, and tell why the study of person–task relationships is central to the pursuit of increased efficiency.
    Explain why the study of the external environment and its impact on an organization has become a central issue in management thought.
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • What is Management?
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    The word management is derived from
    the Italian word , Maneggiare, which means “to train horses” or literally “to handle”
    the French words, Maneger, meaning “to direct a household”, i.e. “ to economize” and Menager, “ an act of guiding or leading”.
    Etymologically, therefore it means to handle , direct economically, guide and lead.
    Source:
    http://www.introduction-to-management.24xls.com/en128
  • What is Management?
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    �Mary Parker Follett, described management as "the art of getting things done through people."
    Source:
    http://www.introduction-to-management.24xls.com/en128
  • What is Management?
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    �Richard L. Daft: "Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources“
    Source:
    http://www.introduction-to-management.24xls.com/en128
  • What is Management?
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    �Peter Drucker's viewpoint, managers give direction to their organizations, provide leadership, and decide how to use organizational resources to accomplish goals.
    Source:
    http://www.introduction-to-management.24xls.com/en128
  • Intro
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    • Down thru the ages, most “managers” operated on a trial and error experimental basis. The demands of industrial revolution changed this traditional practice. Management emerged as a formal discipline at the turn of 19th century and will continually evolve today and to the next generation as a means of Management philosophy and principles.
  • Management is a Global affair
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 10/6/2011
    @ 2011 NEUST Masters in Engineering Management
    10
  • Evolution of Management Theory
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Systematic Approach (1890-1900)
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    • During the 19th century , growth in business and industry in the US and in Britain, France & Belgium centered on Manufacturing. Early managers and writers like Adam Smith, believed that management of these firms was chaotic, and they strove to systematise it. Most organizational tasks were subdivided and performed by specialized labor. However, poor coordination among subordinates and different levels of management caused frequent problems and breakdwon of the manufacturing process.
  • Systematic Approach (1890-1900)
    Some theorists of the pre-classical period
    ROBERT OWEN – a successful British entrepreneur with social conscience, he was ahead of his time in recognizing the importance of human resources at a time when capitalists were focused on machines because they were more expensive.
    CHARLES BABBAGE – known as the father of computing. His inventions turned out to be the world’s first mechanical calculator and analytical engine that had the basic elements of modern day computer. While in the process of producing his inventions, he came up with ideas that made direct contributions to management theory.
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Systematic Approach (1890-1900)
    Some theorists of the pre-classical period
    HENRY TOWNE –.a mechanical engineer and president of the Yale and Towne Manufacturing company, Towne championed the need to treat management as a separate field of systematic study at par with engineering. In a meeting in ASME in Chicago, he proposed the establishment of a science of management and the development of principles that could be applied across situations of management. One of those present was Frederick W. Taylor who subsequently came out with scientific management.
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Systematic Approach (1890-1900)
    Goals of Systematic Management Approach
    To build specific procedures and processes into operation to ensure coordination;
    To achieve economy in operations;
    To provided adequate staffing ;
    To maintain inventories to meet consumer demands;
    To set-up organizational controls
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Systematic Approach (1890-1900)
    The goals of systematic management were achieved through:
    Definitions of duties and responsibilities
    Standardized techniques for performing these duties
    Specific means of gathering, handling, transmitting and analyzing information
    Cost accounting, wage and production control systems to facilitate coordination and communication
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Systematic Approach (1890-1900)
    Systematic Management focused on internal operation because:
    Problems and concerns were in the manufacturing processes;
    Managers were under pressure to meet explosive growth in demand
    Managers were free to focus on internal issues of efficiency, partly because the government did not constrain business practices significantly.
    Labor was poorly organized at this stage of industrial development. As a result, managers were oriented towards things and machineries, rather than people.
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Systematic Approach (1890-1900)
    Contributions:
    Beginning of formal management in the US
    Promotions of efficient, uninterrupted production
    Limitations
    Ignored relationship between an organization and its environment
    Ignored differences in manager and worker’s view
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Scientific Management (1900-1910)
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    sci·en·tif·icman·age·ment
    noun 
    Management of a business, industry, or economy, according to principles of efficiency derived from experiments in methods of work and production, esp. from time-and-motion studies
    Web definitions
    Scientific management was a theory of management that analyzed and workflows, with the objective of improving labor productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs Shop Management (1903). ...
    en.wikipedia.org/wiki/Scientific_management
  • Scientific Management (1900-1910)
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Scientific Management comes out of the body of knowledge developed by Frederick W. Taylor, Frank and LilianGilberth and Henry L. Gantt. They studied mainly the jobs of workers at lower level of organization or shop floor level factories.
    It stresses scientifically determined changes in management practices as the solution to improving labor productivity. It introduced “time and motion study” to find the “one best way” to perform a task; that is, it studies how a task can be structured to increase labor productivity.
  • Scientific Management (1900-1910) - Taylorism
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Concept, Nature and Scope
    • Standardization of work practices and methods reduce waste and increase productivity.
    • Time and task study of workers’ efforts to maximize productivity and output.
    • Systematic selection and training of workers to increase efficiency and productivity.
    • Differential pay incentives based on established work standards.
  • Scientific Management (1900-1910) - Taylorism
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Limitations
    • Taylorism was resisted strongly at grassroots level by workers, trade unionists, and even managers because of its very tight control of personal-work life,
    • viewed workers as extensions of the machines,
    • ignores the nature of work as a social process,
    • dehumanized view of workers
    which defects later criticized later by the human relations school
  • Scientific Management (1900-1910) - Taylorism
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Theorists of Scientific Management
    • FREDERICK TAYLOR – An americanquaker industrial engineer, developed the theory that labor productivity can be improved by scientfically determined management practices, earned him the “father of scientific management”
    • GILBRETHS – focused on the study of fatigue, motion studies, and ways of promoting worker’s welfare. The famous time and motion study reduces a task to its basic movements down to its elementary human micro-motions, which they called “therbligs”
  • Scientific Management (1900-1910) - Taylorism
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Theorists of Scientific Management
    • FREDERICK TAYLOR – An americanquaker industrial engineer, developed the theory that labor productivity can be improved by scientfically determined management practices, earned him the “father of scientific management”
    • GILBRETHS – focused on the study of fatigue, motion studies, and ways of promoting worker’s welfare. The famous time and motion study reduces a task to its basic movements down to its elementary human micro-motions, which they called “therbligs”
  • Scientific Management (1900-1910) - Taylorism
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Theorists of Scientific Management
    • HENRY L. GHANTT – created the famous Ghantt Chart, a graphical illustration usually a bar graph or diagram which indicate time allocations for sequential operations and traces progress, routing, scheduling, and task and time intervals. Later on, became the basis of Du Pont in creating CPM and by the Navy in formulating the PERT.
  • Administrative Management (1920-1930)
    Definition 
    is the use of institutions and order rather than relying on personal qualities to get things done.
    basically focuses on how a business should be organized and the practices an effective manager should follow.
    The study of how to create an organizational structure that leads to high efficiency and effectiveness.
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Henri Fayol (1845-1924)
    French management theorist.
    Father of modern operational management theory (George, p. 146).
    First to ask “What is Management?”
    Author General and Industrial Management
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Plan
    "Planning reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact of change and develop appropriate responses." (Robbins, 2000, p.247)
    “deciding what needs to happen in the future”   
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Organize
    Organization is the development of the institutions resources, including human and material resources
    “making optimun use of the resources to carry out the plan successfully”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Command
    Commanding is keeping the institution’s action and process running
    “determining what needs to be done in a situation and getting people to do it”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Coordinate
    Coordination is the alignment and harmonization of the group’s efforts
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Control
    Control means that the above activities are performed according to the appropriate rules and procedures
    “ checking progress against plans”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    1. Division of Work
    Specialization belongs to the order of things. The object of division of work is to produce more and better output with the same effort. This is accomplished by reducing the number of objects to which attention and effort must be directed.
    “Specialization of labor is necessary for organizational success”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    2. Authority and Responsibility
    Authority is the right to give orders and responsibility is its essential counterpart. Wherever authority is exerted, responsibility arises
    “The right to give orders must accompany responsibility”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    3. Discipline
    Discipline implies obedience and respect for the agreements between the firm and its employees. Establishing agreements binding a firm and its employees should be one of the chief preoccupations of industrial heads. Disciplinary formalities emanate from these agreements, and they maybe involve sanctions judiciously applied.
    “Obedience and respect help an organization run smoothly”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    4. Unity of command
    An employee should receive orders from one superior only
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    5. Unity of direction
    Each group of activities having one objective should be unified under one plan and one head
    “the efforts of everyone in the organization should be coordinated and focused in the same direction”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    6. Subordination of individual interest to the general interest
    The interest of one employee or group of employees should not prevail over that of the company or broader organization.
    “resolving the tug of war between personal and organizational interest in favor of organization is one of management’s greatest difficulties”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    7. Remuneration
    To maintain their loyalty and support, workers must be given a fair wage for their services rendered.
    “employees should be paid fairly in accordance with their contribution”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    8. Centralization
    Like division of work, centralization belongs to the order of things. However, the appropriate degree of centralization varies from one organization to the other. The problem is to find the measure that will give the best overall yield.
    “the relationship between centralization and decentralization is a matter of proportion; the optimum balance must be found for each organization”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    9. Scalar Chain
    The scalar chain is the chain of superiors, ranging from the ultimate authority to the lowest ranks. It is the error to depart needlessly from the line of authority, but it an even greater one to adhere to it to the detriment of the business.
    “subordinates should observe chain of command”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    10. Order
    A place for everything and everything in its place
    “both material things and people should be in their proper places”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    11. Equity
    Equity is the combination of kindness and justice
    “fairness that results from a combination of kindness and justice will lead to devoted and loyal service”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    12. Stability of Tenure of Personnel
    High turnover breed’s inefficiency. A mediocre manager who stays is infinitely preferable to an outstanding manager who comes and goes.
    “people need time to learn their jobs”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    13. Initiative
    Initiative involves thinking out a plan and ensuring out a success. This gives zeal and energy to an organization.
    “one of the greatest satisfaction is formulating and carrying out a plan”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • 14 Principles of Management
    14. Esprit de Corps
    Union of strength, and it comes from harmony among personnel. It is an extension of the principle of unity of command, emphasizing the need for teamwork and the importance of communication
    “harmonious effort among individuals is the key to organizational success”
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Discussion Question?
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Which of the following is the most important aspect of Fayol’s principles of management?
    Division of Labor
    Unity of Command
    Remuneration of Personnel
    Esprit de corps
  • Bureaucratic Management (1920-1930)
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    A group of workers (for example, civil service employees of the U. S. government), is referred to as "the bureaucracy.”
    “a formal system of organization based on clearly defined hierarchical levels and roles in order to maintain efficiency and effectiveness”
    Bureaucracy has an informal usage, as in “there‘s too much bureaucracy where I work.”
  • Bureaucratic Management (1920-1930)
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    • German sociologist historian that wrote about the emergence of bureaucracy (or bureaucratic management) from more traditional organizational forms (like feudalism) and it's rising pre-eminence in modern society.
  • Weber’s Principles of Bureaucracy
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Weber’s Principles of Bureaucracy
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    “A continuous organization of official functions bound by rules”
    Authority of officials was subject to published rules and codes of practice.
    2. Specialization
    Each office has a defined sphere of competence, involving division of labor
    3. A clearly defined hierarchy of offices
    A firm system of supervision based on clear levels of authority. Each official knows whom to report to with specified rights of control and complaint procedures.
  • Weber’s Principles of Bureaucracy
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    4. General Rules
    A stable, comprehensive system of conduct which can be learned and may require technical qualifications to understand and administer
    5. Impersonality
    No hatred or passion with equality of treatment for all clients of the organization.
    6. Free selection of appointed officials
    Selected that is on the basis of professional qualifications, with proof shown by a diploma gained through examinations.
  • Weber’s Principles of Bureaucracy
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    7. Full-time paid officials
    Usually paid on the basis of hierarchical rank, the office being their sole or major concern.
    8. Career officials
    There is a career structure and a system of promotion based on seniority or merit based on the judgment of superiors
    9. Private / Public Split
    Separates business and private life. The official works in a detached fashion from the ownership of the organization.
    10. There is a strict, systematic discipline and control of the official's work
  • Key Characteristics of Bureaucratic Management
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    RULES
    This are formal guideline for the behavior of employees while they are on the job. Rules can provide the discipline for the organization to achieve it’s goals.
    2. IMPERSONALITY
    Reliance on the rules leads to impersonality. Members and managers are selected on the basis of their qualifications either by examination or on the basis of their education or training.
    3. DIVISION OF LABOR
    This is the process of dividing duties and functions into simpler, more specialized task.
  • Key Characteristics of Bureaucratic Management
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    4. HIERARCHICAL STRUCTURE
    This ranks jobs according to the amount of power and authority (right to decide) given to each manager or employee. The authority and responsibility are clearly legitimized.
    5. AUTHORITY STRUCTURE
    This is the organizational structure that determines the right to make decisions of varying importance at different levels within the organization.
    6. LIFELONG CAREER COMMITMENT
    This means job security is guaranteed as long as the manager or employee is technically qualified, competent and performs satisfactorily.
  • Key Characteristics of Bureaucratic Management
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    7. RATIONALITY
    It is the use of the most efficient possible means to achieve the organization’s objectives. Rationality requires general organization’s goals or purpose to be broken down into more specific objectives for each part of organization.
  • Criticism of Bureaucratic Management
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Too much emphasis on rules and regulations. The rules are and regulations are rigid and inflexible.
    No importance is given to informal groups. Nowadays, informal groups play an important role in all business organizations.
    Bureaucracy involves a lot of paper work. This results in lot of wastage of time effort and money
    There will be unnecessary delay in decision-making due to formalities and rules.
    Bureaucratic model maybe suitable for government organizations. But it won’t be suitable for business organizations because business organizations believe in quick decision making and flexibility in procedures.
  • Criticism of Bureaucratic Management
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Too much importance is given to the technical qualifications of the employees for promotions and transfers. Dedication and commitment of the employee is not considered.
    There is difficulty in coordination and communication
    There is limited scope for Human Resource.
  • Human Relation Theory
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Human relations movement refers to the researchers of organizational development who study the behavior of people in groups, in particular workplace groups. It originated in the 1930s' Hawthorne studies, which examined the effects of social relations, motivation and employee satisfaction on factory productivity. The movement viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts.
  • Human Relation Theory
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    The Human Relations Movement – Behavioral Approach
    • An effort to make managers more sensitive to their employees’ needs
    • Arose out the influence of
    • The threat of unionization
    • The Hawthorne studies
    • The philosophy of industrial humanism
  • Human Relations Movement Pyramid
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • The Theorists
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    • Elton Mayo
    • Believed emotional factors were more important determinants of productive efficiency than were physical and logical factors.
    • Mary Parker Follett
    • Advocated that managers become aware of how complex each employee is and how to motivate employees to cooperate rather than to demand performance from them.
    • Concerned that Taylor ignored the human side of the organization. Suggested workers help in analyzing their jobs
    If workers have relevant knowledge of the task, then they should control the task
  • The threat of unionization
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    The Wagner Act of 1935 legalized union-management collective bargaining, promoting the growth of unions and union avoidance by firms.
  • The Hawthorne Studies (1924)
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    The study’s results that productivity was strongly affected by workers’ attitudes turned management toward the humanistic and realistic viewpoint of the “social man” model
    Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932.
    Worker productivity was measured at various levels of light illumination.
    Researchers found that regardless of whether the light levels were raised or lowered, worker productivity increased
  • The Hawthorne Studies (1924)
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    Human Relations Implications
    Hawthorne effect— workers’ attitudes toward their managers affect the level of workers’ performance
    Human relations movement – advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity
  • Question?
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    What theory assumes the average worker is lazy, dislikes work and will do as little as possible?
    Theory X
    Theory Y
    Theory Z
    Theory QZ
  • The Philosophy of Industrial Humanism
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    • Douglas McGregor
    • Developed Theory X and Theory Y
    • Theory X: management’s traditionally negative view of employees as unmotivated and unwilling workers.
    • Workers have little ambition and wish to avoid responsibility
    • Managers must closely supervise and control through reward and punishment.
    • Theory Y: the positive view of employees as energetic, creative, and willing workers.
    • Managers should allow workers greater latitude, and create an organization to stimulate the workers.
  • The Philosophy of Industrial Humanism
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
  • Systems Theory
    EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual
    • What is a System?
    • A collection of parts that operate interdependently to achieve a common purpose.
    • Systems Approach
    • Posits that the performance of the whole is greater that the sum of the performance of its parts.
    • Analytic versus synthetic thinking: outside-in thinking versus inside-out thinking.
    • Seeks to identify all parts of an organized activity and how they interact.