System approach in management

A Systematic approach to management is a way of thinking in relation to management and organisation. It should not be confused with a set of different principles for the administrative apparatus. For the first time the application of this management tool in the late 50-ies, and gave a huge contribution to the scientific school of management.

The System represents a certain integrity, consisting of parts that are closely interrelated. While each part has its own purpose and its contribution to the overall performance of the system. Any organization can be represented in the form of a system. It can be as open, interacting with the external environment, and closed system with a fixed hard limit, and not dependent on the environment.

Based on the presence in these structures of subsystems, from a scientific point of view, there are different schools of management. Thus, the behavioral school deals with social subsystem, technical school – the management using the scientific approach.

The System approach in management is very important in the case when the model of organization corresponds to the type of open system. In other words, the organization may obtain from the external environment, capital, information, materials and human resources. All of these components are called “inputs”. During the implementation of its activities, the organization should handle these inputs, transforming them into services or finished products, which will be its outputs.

Under effective control system during the conversion will be obtained plus the cost of the inputs as well as profit, sales growth and expand the scope of the organization.

The Situational approach to management has had a huge impact on management theory through the use of scientific approaches to the specific conditions and environment. The basis of this approach is directly the situation itself, represented a particular set of circumstances that can influence the organization at a particular time.

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With this approach, managers can effectively determine which techniques to use to achieve the goals of the organization in each case. As a systematic approach to management, situation may not be just a set of rules governing composition. This way of thinking for making organizational decisions.

Any system requires some coordination of aspects of implementation of economic activity. System approach to management allows you to link tasks that arise in the achievement of the organizations strategic goals.

In Other words, this approach deals with:

with the development objectives of the organization, bringing them to the attention of the staff and obtaining feedback.

- strategic planning

- to build the culture of the organization;

- analysis of market;

business planning.

For a greater understanding of the concept of ‘systemic approach to management" we have to understand the term “organization”. Among the different definitions is better to choose something which represents voluntary Association of citizens to accomplish a particular activity.

The Central figure in any organization is its owner or leader. In other words, this man who saw a new, unusual and original solution to meet human needs. To this end, he actively starts to operate to implement the idea, spending their personal time, effort and money. It is from this moment begins the process of creating a specific system called “organization” with its subsystems and other parts.