![]() That is why an organisation is called an open system. All the factors of input and output influence the organisation. At this time, they happen to be in the form of goods, services and satisfaction. Then they walk out of the organisation in the form of output and once again mingle with the environment. ![]() Within the organisation, they are converted into products through the process of various activities. All these factors of environment enter an organisation as Input. The chief factors of the environment of an organisation happen to be raw material, power, finance, machine, man-power, technique, market, new products, government policies, etc. When all the parts of a system work keeping in mind the interests of others, the performance turns out to be decidedly better results. Here, the pointer happens to be towards coordination. It is thus, clear that if job is performed collectively rather than individual, it is certainly well-performed with better results. But if that are told to lift the weight collectively, they would certainly be able to lift a load in excess of five quintal. When they are told to lift a load of one quintal, everybody will be able to lift only one quintal of load. Everybody has a capacity to carry a load of five quintal each. Suppose there are five persons in a group. This can be better understood with the help of an example. It means that the whole is greater than the sum of its parts. That is why the system approach is called holistic. It can, therefore, be said that no decision is possible in respect of any particular sub-system alone. Yet again whether the finance department will be able to provide the required financial support. If that is not done, the major system is certainly damaged and it cannot work properly.įor example- if the sales department is aiming at doubling its sales, it shall have to take care of the fact whether the purchase department would be in a position to purchase the requisite amount of raw material.Īgain whether the personnel department will be able to provide the required man-power. Therefore, every decision is taken keeping in view the entire organisation, meaning thereby, that all the sub-systems are kept in mind while taking a decision. It clearly means that a decision taken with regard to a particular sub-system does influence or affect the other sub-systems. Therefore, it is clear that various sub-systems constitute a major system.Ī major characteristic of the System Approach is that it is looked upon as a whole. Similarly, the national economy itself happens to be a sub-system of the world system. Industry is a sub-system of a national economy. Company itself is a sub-system of industry. purchase, sale, finance, production, personnel, research and development) happen to be its sub-systems.Īll these are created by the major system which happens to be the company itself. In the context of a company, all its departments (e.g. It means that whenever we take some decision regarding a particular sub-system, we should always keep in mind the possible effect of the decision might have on the other sub-systems. The following are the chief characteristics of the System Approach:Įvery system happens to be a combination of many sub-systems. Therefore, when manager taken some decision regarding a particular sub-system, he should also take into consideration the defect of his decision on the other sub-systems. Then and only then the objective of the organization can be achieved. ![]() It can, therefore, be said that a system means different inter-related parts which work n cohesion simultaneously to achieve a particular purpose.Īccording to the system approach, the whole organization is a system and its various departments are its sub-systems. Therefore, the success of the system depends on the cooperation and efficiency of the sub-systems. For example- a scooter is a system which has many sub-systems in the form of engine, shaft, gear, wheels body, etc.Īll these sub-systems are inter-related with one another and if one of them fails the whole system stops working. All the sub-systems influence one another. A group of different units which means a complete unit is called a system, while the small units are themselves independent, but somehow or the other is connected with the sub-systems of the related system. The system approach means a group of small inter-related units.
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