The document discusses the systems approach, which views an organization as a set of interrelated and interdependent parts that form a unified whole known as a system. The systems approach aims to analyze organizations and their management in a meaningful way, and facilitates interaction between an organization and its environment. However, it does not recognize differences between systems and does not specify the nature of interactions, making it difficult to directly apply to practical problems.

1. The systems approach
• System
– A set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
– An organized or complex whole; an assemblage or
combination of things or parts forming a complex
unitary whole
– A system is basically a combination of parts
(subsystem). Each part may have various sub-parts.
– An organization is a system of mutually dependent
parts, each of which may include many subsystem.

2. Advantages of systems approach
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.

3. Disadvantages of systems approach
Over-conceptual
The approach does not recognize the
differences in systems.
Systems philosophy does not specify the
nature of interactions and inter-
dependencies.
Unpractical: It cannot be easily and
directly applied to practical problems.

4. Implications of systems approach
• Coordination of the organization’s parts is
essential for proper functioning of the entire
organization.
• 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
external environment.