The systems approach views an organization holistically as a system of interrelated parts working together toward common goals. It considers how an organization interacts with and is influenced by its external environment. An organization is seen as an open system that acquires inputs from the environment, transforms them through internal processes, and produces outputs that feedback into the environment. The systems approach aims to understand how all parts of an organization depend on each other so the entire system can function effectively.

1. The system approach to management is
based on the general system theory- the
theory that to understand fully the
operation of an entity, the entity must be
viewed as a system. This requires the
understanding the interdependence of its
parts. The systems approach takes a
holistic view of the entire organization
system and stresses processes.
The System Approach

2. Systems theory
 It is an approach based on the notion that organization
can be visualized as a system. A system is a set of
interrelated parts that operate as a whole in pursuit of
common goals.
 The systems approach views the organization as a
system that is interdependent with other systems in its
environment. The environment of an organization
includes the social, political, cultural, technological, and
economic forces that affect it.
 Systems approach views the organization as a unified,
purposeful, directed system of interrelated parts, rather
than dealing separately with the various segments of an
organization.

3.  Systems theory is an extension of the humanistic
perspective that describes organizations as open
systems that are characterized by entropy,
synergy, and subsystem interdependence. A
system is a set of interrelated parts that function
as a whole to achieve a common purpose. A system
functions by acquiring inputs from the external
environment, transforming them in some way, and
discharging outputs back to the environment.

4.  Based from Ludwig von Bertalanffy ( founder of
general system theory), systems theory focuses on
the arrangement of and relations between the parts
which connect them into a whole (holism).
 The main premise of the theory is that to
understand fully the operation of an entity, the
entity must be viewed as a system. To understand
the system as a whole requires understanding the
interdependence of the parts.

5.  A system is a number of interdependent parts
functioning as a whole for some purpose. It is a
collective association of inter-related and inter-
dependent parts. An organization is a system
with many departments that are linked by
people working together. It is the relationships
among human beings that define the system, not
so much about the machines and facilities.

6.  The systems approach is an approach in solving
problems by diagnosing them within a
framework of what are called the system’s
inputs, transformation process, and outputs in
the light of feedback.
 Input-is the human, physical, material,
financial, and information resources that enter
the transformation process and leave it as
outputs. At a university, for example, the inputs
include students, faculty, money, buildings, and
audio-visuals

7.  Transformation processes- are the technologies used
to convert input to output. In a university, the
transformation processes are such technology as
lecturers, reading, assignments, lab experiments,
term paper and test.
 Output is the original input, now in a changed
condition. Output in a University include the
graduating students.

8.  Feedback is any form of information about a
system’s status and performance. One form of
feedback in a university is the graduate’s ability
to get a job. In an organization, feedback may
take the form of marketing surveys, financial
reports, production records, performance
appraisals, etc…
 Management role in the systems approach is to
ease the transformation process by planning,
organizing, leading, and controlling the system.

9. Transformation Process
INPUTS
Human,
physical,
financial,
and
information
resources
TRANSFORMATION
PROCESS
ENVIRONMENT
OUTPUTS
Products
and Services
Feedback Loops

10. The School System
Teaching-
Learning
Process
social-
cultural
sub-
system
technological
sub-system
political
sub-system
economic
sub-
system
individu
als,
laws,
practice
s,money
,
materia
ls,
beliefs,
values,
technolo
gy,
Gra
dua
tes,
inn
ova
tio
n,
inv
ent
ion
SOCI
ETY
Emplo
yment
syste
m
LoopsFeed back