The Systems Approach

A system is a collection of parts operating interdependently to achieve a common purpose.

In the systems approach:

• The whole is greater than the sum of its parts
• Use of Analytic (outside-in) thinking and synthetic (inside-out) thinking
• Seeks to identify all parts of an organized activity and how they interact

Barnard’s Early Systems Perspective

Chester I. Barnard wrote Functions of the Executive

Characterized all organizations is cooperative systems. Defined principal elements in an organization are willingness to serve, common purpose, communication and strong advocate of business ethics.

Barnard’s Cooperative System

General Systems Theory

General Systems Theory: An interdisciplinary area of study based on the assumptions that everything is part of a larger, interdependent arrangement.

Levels of systems: Identification of systems at various levels helps translate abstract systems theory into more concrete terms. Each system is a subsystem of the system above it.

Levels of Living Systems is Closed Versus Open Systems

Closed system: A self-sufficient entity

Open system: Depends on its surrounding environment for survival

New Directions in Systems Thinking

Organizational learning and knowledge management – Organizations are living and thinking open systems that learn and engage in complex mental processes.

Chaos theory – Every complex system has a life of its own, with its own rule book.

Complex adaptive systems - Self-organizing

Complex Adaptive Systems and Classical Management Systems Approach

Lessons from the Systems Approach

Managers now have a greater appreciation for the importance of seeing the whole picture. Manager should not become preoccupied with one aspect of organizational management while ignoring other internal and external realities. The systems approach tries to integrate various management theories. Criticism is short on verifiable facts and practical advice.