System defined A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Closed system Open system

According to this theory, an organization system has four major components Inputs Transformation process Out put Feed back

INPUTS Labor Materials Capital Machinery information

TRANSFORMATION PROCESS

OUTPUTS

Planning Organizing Staffing Leading Controlling technology

Goods Services Profits and losses

Feed back

Systems have structure, defined by parts and their composition. Systems have behavior, which involves inputs , processing and outputs of material, energy or information. Systems have interconnectivity : the various parts of a system have functional as well as structural relationships between each other. System(s) have by itself function(s) or group of functions .

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Coordination of the organization parts is essential for proper functioning of the entire organization. Decision and actions taken in one area of the organization will have an effect in another areas of the organizations. Organizations are not self contained and therefore, must adapt to changes in their external environment.

There is no one universally applicable set of management principle by which to manage organization. Organization are individually different, face different situations, and require different ways of managing.

1. An awareness of & ability to relate to the economic, social, and political environment. 2.An ability to manage with complex organizational structures. 3.An ability to be innovative & initiate change. 4.An ability to manage & utilize increasingly sophisticated information systems. 5.An ability to manage people with widely different & changing values and expectations.

Specialization Grouping Coordination

Specialization System is divided into smaller components allowing more specialized concentration on each component

Grouping
-To avoid generating greater complexity

with increasing

specialization it becomes necessary to group related discipline or sub discipline Coordination -As the components and the subcontinent of system are group it necessary to coordinate the interaction among groups.

The systems approach stresses the need for more understanding in the development of sophisticated problemsolving techniques, e.g. simulation, operations research & computerized information systems. All these aim to improve the control mechanisms of organizational systems so that they can plan for and react more effectively to changes in the environment.

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