System n Contingency Approach

SYSTEM

• A system is a set of interrelated and inter dependent parts arranged in a manner that produces a unified whole.

TYPES OF SYSTEM

• CLOSED SYSTEM

• OPEN SYSTEM

ClOSED SYSTEM

• A closed system is a system in the "state of being isolated from its surrounding environment." In reality no system can be completely closed; there are only varying degrees of closure.Eg- clock

OPEN SYSTEM

• An open system is a system which continuously interacts with its environment. The interaction can take the form of information, energy, or material transfers into or out of the system boundary, depending on the discipline which defines the concept. Eg- human being

ORGANISATION AS AN OPEN SYSTEM

DEFINITION

• Systems approach is a way to think about organizations and management problems., views an organization as interrelated parts with a unified purpose; surviving and thriving in its environment.

SYSTEMS APPROACH IS A PROBLEM-SOLVING METHOD

WHICH HELPS TO:.Define the problem as clearly as possible. . Analyse the problem and identify alternative solutions..Select from the alternatives and develop the most viable solution mix.. Implement and test the solution.. Evaluate the effectiveness and worth of the solution

EVALUATION OF THE SYSTEMS CONCEPT:

• ENSURES WORKING TOGETHER OF INTERDEPENDENT UNITS.

• IMPLIES THAT DECISIONS AND ACTIONS TAKEN IN ONE ORGANIZATIONAL AREA WILL EFFECT OTHERS.

• RECOGNIZES THAT ORGANIZATIONS ARE NOT SELF-CONTAINED.

• MADE CLEAR THAT THERE IS NO ‘ONE BEST WAY ‘ OF DOING ANYTHING

EVALUATION OF THE SYSTEM CONCEPT:

• ‘BIG PICTURE’ IS EMPHASIZED. MANAGERS CAN MAKE DECISIONS IN TOTAL PRESPECTIVE. IT BROADENS THEIR VIEW POINTS.

• ENABLES US TO SEE THE CRITICAL VARIABLES AND THEIR INTERACTION WITH ONE ANOTHER.

ONE OF THE MAJOR LIMITATION WHICH SOME CRITICS SUGGEST IS THAT SYSTEM APPROACH IS TOO ABSTRACT. IT FAILS TO POINT OUT THE EXACT NATURE OF RELATIONSHIP OF PARTS. IT LACKS UNIVERSALITY OF ITS PRECEPTS.

CONTINGENCY

Contingency means an event which may or may not occur; that which is possible or probable; a fortuitous event; a chance.

DEFINITION

• A management approach that considers an organization’s objectives,organization and job design,human resources,environment and managerial skills as interacting and affecting the type of management decisions made about planning,organizing,leading and controlling.

ASSUMPTIONS:

• MANAGEMENT MUST FIT ITS ENVIRONMENT.

• DIFFERENT SITUATIONS REQUIRE THE APPLICATION OF DIFFERING MANAGEMENT TECHNIQUES.

• MANAGERS HAVE TO DEVISE METHODS AND TO LEARN WHEN AND HOW TO APPLY EACH ONE.

• IT EMPHASIZES THE SEED FOR ANALYSING SITUATION.

CONTRASTING VIEWS OF MANAGEMENT EFFECTIVENESS

POPULAR CONTINGENCY VARIABLES

• Organization size

• Routineness of task technology

• Environmental uncertainty

• Individual differences

LIMITATIONS OF CONTINGENCY APPROACH

• Inadequate literature

• Complex

• Reactive not proactive

SITUATIONALIST THEORY OF LEADERSHIP

• An approach that advocates that leaders understand their own behaviour,the behaviour of their subordinates,and the situation before they utilize a particular leadership style.The application of this approach requires diagnostic skills in human behaviour on the part of the leader.

RELATIONSHIP BETWEEN TWO APPROACHES

• SYSTEMS APPROACH

• 1.Treats all organisatins alike irrespective of their size,cultural settings etc.

• 2.Stresses on interaction and interdependance between systems and subsystems.

• 3.Studies organisation at abstract and phillosophical level.

• 4.Vague and complex.

• CONTINGENCY APPROACH

• 1.Treats each organisation as unique entity.

• 2.Identifies the exact nature interdependencies and their impact on organisation design and management style.

• 3.Down to earn and action oriented approach.

• 4.Pragmatic and action oriented.

CONCLUSION:

BOTH THESE APPROACHES ARE COMPLEMENTARY TO EACH OTHER. THE MANAGER SHOULD USE OTHER APPROACHES UNDER THE FRAMEWORK OF CONTINGENCY APPROACH.

THANK YOU !!

BY- GURVINDER

VIPRA