Presented by:

SUCHETA ACHARJEE
PALASH DE
MAMPY MONDAL
SHUVANKAR BANERJEE
RICHA MISHRA
SUBHADIP MONDAL
PRIYANKA DAS
SK. FARHAD
 SYSTEMS APPROACH TO
MANAGEMENT
 It is a collection of interrelated parts acting together to
achieve some goal which exists in the environment.
Also, system is defined as a set of objects working
together with relationships between the objects and
their attributes related to each other and to the
environment.

 Therefore, system in simple terms in respect to

management, it is a set of different independent parts
working together in interrelated manner to accomplish
a set of objectives.
 KEY CONCEPTS/
ELEMENTS OF SYSTEM
APPROACH
SYSTEM
SUBSYSTEM SYNERGY BOUNDARY

FEEDBACK FLOWS
 ELEMENTS OF SYSTEM
APPROACH
SUB-SYSTEM:
 An organization is a unified and purposeful system
consisting of several interconnected, interacting and
interdependent parts.

 The parts of a system are called sub-systems. Each sub-

system influences the other sub-systems and the system as
a whole.

 The position and function of each sub-system can be

analyzed and understood only in relation to other sub-
systems and to the organization as a whole.
to be contd...
 ELEMENTS OF SYSTEM
APPROACH
SYNERGY:
Each sub-system derives it’s strength by it’s association and
interaction with the other sub-systems. As a result, the
collective contribution of the organization is greater than the
aggregate of individual contributions of it's sub-systems. This
is known as synergy.

SYSTEM BOUNDARY:
Each system has a boundary that separates it from it’s
environment. The boundary determines which parts are internal
to the organization and which are external. For example,
employees are within the boundary and creditors; customers
are external to a firm.
to be contd...
ELEMENTS OF SYSTEM
APPROACH
FEEDBACK:
The reaction or response of the environment to the output
is known as feedback. Feedback is useful in evaluating
and improving the functioning of the system.

FLOW:
It represents the movement of inputs(men, material,
money, machine, etc.) into the system from the
environment, their transformation into outputs(goods and
services) and supply of outputs to the environment.
INPUT-OUTPUT MODEL
TRANSFORMATION
INPUTS
PROCESS
• Raw materials
• Human resources • Employees’ Work Activities
• Capital • Management Activities
• Technology • Technology and Operations
Methods
• information

OUTPUTS
• Products and Services
• Financial Results
• Information
• Human results
CLASSIFICATION OF SYSTEM
 Open system- An open system actively interacts with
it’s environment. By interacting with other systems, it
tries to establish exchange relationships.

 Closed system- A closed system is self-contained and

isolated from the environment. It is a non-adaptive
system. It does not receive inputs often from other
systems and does not trade with the outside world.
Example: An automatic wrist watch.
 McKINSEY 7-S MODEL
The 7-S MODEL was originally
used to analyze both large
and small firms by looking
at their structure, offering
a wider explanation through
seven.

Elements:
Strategy, Structure, Systems,
Style, Staff, Skills and Shared Values.
 THE SEVEN ELEMENTS
 Strategy- Actions a company plans in response to or
anticipation of changes in it's external environment. It
may also be seen as plans for allocation of resources
to enable the company’s identified goals.

 Structure- Basis for specialization and coordination

influenced primarily by strategy and byorganizational
size and diversity. This is also the way that different
units in the firm relate to each other.

to be contd...
 THE SEVEN ELEMENTS
 Systems- Formal and informal procedures that support the
strategy and structure. Often internal systems are more
powerful than they are given credit for. They are also the
procedures and processes that characterize how the work
should be done and internal systems used to accomplish
the needed performance.

 Style- The culture of the organization, which consists of

two components. One of them is management style, how
key managers behave and what they do rather than what
they say. It answers the questions: How do they spend
their time? What are they focusing their attention on?

to be contd...
 THE SEVEN ELEMENTS
 Staff- Human resource management, the processes and
efforts used to develop managers, socialization and the
shaping of basic management values. It includes ways of
introducing young recruits to the company, and the
support given to manage employees’ careers.

 Skills- These are the distinct and core competencies of the

company. They include ways in which competencies are
expanded or shifted. This can also be determined from the
perspective of core competencies that exist and are
developed in the firm.

to be contd...
 THE SEVEN ELEMENTS
 Shared values- Also called super ordinate goals, these
are the central believes and attitudes, guiding
concepts, and fundamental ideas around which a
business is built. Usually stated at the abstract level,
they have great meaning inside the organization even
though outsiders may not see or understand them.
They can be summarized as what extent the company
stands for and what it believes in.
 ADVANTAGES OF THIS
THEORY
 It aims at meaningful analysis of organizations and
their management.

 It facilitates the interaction between organization

and it’s environment.

 It guides managers to avoid analyzing problems in

isolation and to develop an integrated approach.
DISADVANTAGES OF THIS
THEORY
 Over-conceptual

 The approach does not recognize the differences in

systems.

 Systems philosophy does not specify the nature of

interactions and inter-dependencies.

 Unpractical: It cannot be easily and directly applied

to practical problems.
 CONCLUSION
In spite of certain difficulties and limitations, it
provides opportunity to modify and improve the
management system as best as possible in the light of
the evaluation of the outcomes in relation to inputs,
processes, environment constraints and stipulated
objectives. Thus system approach has full potentiality
to provide effective control to the process and
products of management by solving the various
problems related to organization.
Thank you