The document compares and contrasts the system approach and contingency approach to management. The system approach views an organization as a system with interdependent parts, while the contingency approach recognizes there is no universal management approach and the optimal approach depends on situational factors. Key differences include the system approach focuses on internal organization structure, while contingency approach emphasizes how the external environment impacts organizational design. Effective management is situational and adapts to changing conditions according to contingency theory.