Friday, May 9, 2014

Explain Systems Approach to Management

Systems approach to management also called as the modern theory of Management. Modern theory considers an organization as an adaptive system which has to adjust to changes in its environment. An organization is now defined as a structured process in which individuals interact for attaining objectives.

Meaning of "System": The word system is derived from the Greek word meaning to bring together or to combine. A system is a set of interconnected and inter-related elements or component parts to achieve certain goals. A system has three significant parts:

1. Every system is goal-oriented and it must have a purpose or objective to be attained.
2. In designing the system we must establish the necessary arrangement of components.
3. Inputs of information, material and energy are allocated for processing as per plan so that the outputs can achieve the objective of the system.

Read also:

1. 14 Principles of Management by The Father of modern operational theory
2. Principles of Operational Management by Henri Fayol
3. Principles of Scientific Management by F. W.Taylor
4. What is Managment? : Management Concepts and Principles


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