SYSTEM APPROACH A system is set of interrelated and inter dependent parts working towards a common purpose.For Instance: The human body is a system with all the organs, muscles, bones and conscious that likes all of its parts. In a company a group of division people working for a common goal or success. So this system mainly approach to the management.
INPUTS Inputs from the external environment include people, capital, managerial & technological skills etc`. In addition various groups of people make demands on the enterprise.For Instance: Employees want higher pay, more benefits and job security on the other hand consumer demand safe reliable products at reasonable prices.
Suppliers want assurance that their products will be bought. Stock holders want not only a high return on their investment but also security for their money. Federal state and local government depends on taxes paid by the enterprise, but they also expect the enterprise to comply with their laws. Similarly the community demands that enterprise be “Good Citizens” providing no of jobs with a minimum of pollution.
TRANSFORMATIONPROCESS It is the task of managers to transform the inputs in an effective and efficient manner into outputs. The transformation process can be viewed from different perspectives. Thus one can focus on such diverse enterprise functions as finance, production, personal and marketing. Writers on management look on the transformation process in terms of their particular approaches for management.
Specifically writers belonging to the human behavior school focus on interpersonal relationships. Social systems theorists analyze the transformation by concentrating on social interactions and those advocating decision theory see the transformation as sets of decisions. The most comprehensive and useful approach for discussing functions of planning, organizing, managerial knowledge.
COMMUNICATION SYSTEM Communication is essential to all places of the managerial process for two reasons. First: The objectives set in planning are communicated. So that appropriate organization structure can be derived. Communication is essential in the selection, appraisal and training of managers to fill the roles in the structure. Through communication that one determines whether events are perform conform to plan.
Second: Communication system is to link the enterprise with its external environment constraints - Customer, Businesses. It is through effective communication organization becomes aware of competition, potential threats and constraining factor.External Variables: Effective manager will regularly scan the external environment while it is true that manager may have little or no power to change the external environment.
OUTPUTS: It is the task of the managers to secure and utilize inputs to the enterprise, to transform them through the managerial function with due consideration for external variables into output. Outputs include products, services, profits, satisfaction and integration of the goals of various claimants to the enterprise. The organizations must indeed provide many “satisfaction” if it hopes to retain and elicit contributions from its member.
It must contribute to the satisfaction not only for basic material needs (money, food, shelter & job security) but also needs for affiliation, acceptance, esteem and perhaps even self actualization. So that one can use his or her potential and work place.
REENERGIZING Finally, it is important to notice that in the systems model of the management process some of the output becomes inputs again. Thus the satisfaction and new knowledge or skills of employees become important human inputs. Similarly profits, the surplus of income over costs are reinvested in cash and capital goods. Such as machinery, equipment, building and inventory.
FUNCTION OF MANAGERSPlanning: Planning involves selecting missions and objectives and the actions to achieve them; It requires decision making, which is choosing future courses of action from alternatives.
Organizing: People working together in groups to achieve some goal must have roles to play. The concept of role implies that what people do has a definite purpose or objective; they know how their job objectives fits into group effort, and they have the necessary authority, tools and information to accomplish the task. The purpose of organization structure is to help in creating an environment for human performance
Staffing: Staffing involves filling and keeping filled, the positions in the organization structure. This is done by identifying work force requirements, recruiting, selecting, placing, promoting and appraising. So that tasks are accomplished effectively and efficiently.Leading: Leading is influencing people so that they will contribute to the organization and group goals.
Controlling: Controlling is measuring and correcting individual and organizational performance to ensure that events conforms to plan. It involves measuring performance against goals and plans, showing where deviations from standard exist and helping to correct deviations from standards.
Coordination: Some authorities consider coordination to be a separate function of the manager. It seems more accurate, however, to regard it as the essence of managership, for achieving harmony among individual efforts toward the accomplishment the group goals.
KEY CONCEPT OF SYSTEMAPPROACHOpen ended and Close ended systems.SubsystemSynergyDefined BoundriesFeedback MechanismMultidisciplinaryConsideration of whole systemInput-Output system
FEATURES OF SYSTEMS APPROACH• Dynamic• Multilevel and Multidimensional• Multimotivated• Probabilitistic• Multidisciplinary• Descriptive• Adaptive
1.Under systems approach, managers have a good view of theorganization.2.It gives importance to interdependence of the different partsof an organization and its environment.3.It forecasts consequences and plans actions.4.Systems thinking warns managers against adoptingpiecemeal approach to the problem-solving.5.Systems approach is applied in all organizations for instanceTQM(TOTAL QUALITY MANAGEMENT)
CONCLUSION• System approach is very crucial for organizations for it’s existence in business scenario and economic environment, in order to face all cyclic circumstances and to move step a head to achieve goals.