System Approach and Contingency Approach

Presented by,Ambarish Biswas (EEE120200188)Md. Aktaruzzaman (EEE120100169)Farhad Hossain (EEE120100180)Salman Bin Muzib (CSE 100200619)

System• A system is a set of interrelated but

separate parts working towards a common purpose.

• The arrangement must be orderly and there must be proper communication facilitating interaction between the elements and finally this interaction should lead to achieve a common goal.

System Approach• System approach to management views

the organization as a unified, purposeful system composed of interrelated parts.

• This approach also gives the manager to see the organization as a whole and as a part of the larger external environment.

Contd…• System oriented manager would make

decisions only after they have identified impact of these decisions on all other departments and the entire organization.

• They must intertwine their department with the total organization and communicate with all other departments, employees and with each other.

Example

Production Department

Marketing Department

Human Resource

Department

Finance Department

Key Concepts

Subsystem

Feedback

FlowsSystem Boundary

Closed System

Synergy Open System

Managerial Knowledge, Goals,

Inputs

Planning

Organizing

Staffing

Leading

Controlling

Output

REENGINEER ING

COMMUNICAT ION

External Environment

External Environment

External

Environment:

Opportunities

Threats

Characteristics• Systems have structure, defined by parts and their

composition;

• Systems have behavior, which involves inputs, processing and outputs of material, energy or information;

• Systems have interconnectivity : the various parts of a system have functional as well as structural relationships between each other.

• System(s) have by itself function(s) or group of functions .

Features of System approach

Features

Advantages• It aims at meaningful analysis of

organizations and their management.

• It facilitates the interaction between organization and its environment.

• It guide manager to avoid analyzing problems in isolation and to develop an integrated approach.

Disadvantages• The approach does not recognize the

differences in systems.• Over-conceptual• Systems philosophy does not specify the

nature of interactions and interdependencies.

• Unpractical: It cannot be easily and directly applied to practical problems.

• Lack of Universality• Complex System

CONTINGENCY APPRAOACH

Contingency approach states that there is “no one best way” to manage an organisation.It is also known as situational approach.

• In 1970s, it is recognized as a key to effective management.

• CONTRIBUTORS: L.W. Lorsch Joan Woodward Burns George Stalker Paul R.Lawrence

What you do “depends” on the “situation”.

-internal contingency factors-external contingency factors

Internal Contingency Factors

Tasks

Technology

People

Purpose Structure

External Contingency Factors

Socio-cultural Factors

Economic Factors

Technological Factors

Legal/PoliticalFactors

General Environment of Coca Cola

Socio cultural•Concerns about health•Easier access to refrigeration•Baby boomers drinking less•Immigrants drink less•Concerns about recycling•Increased acceptance in China and India

Government•Increased health standards for bottling •Stricter liability legislation

Economic•Slow economic growth•Prospect of economic recovery

Technological•New recycle friendly canning tech.•New promotional opportunities via the internet•Threat of substitute drinks

Coca Cola

Instead of propagating universally applicable organisation-management principles, this theory tries to demonstrate that different circumstances require different organisational structures

What works for one organisation may not work for the other.

Managers need to understand the key contingencies that effect the management practice for a given situation.

Difficulty in determining all relevant contingency factors and showing relationship between them may be complex.

It is totally practical approach without support of theoretical and conceptual frame work.

Sometimes manager finds difficulties in analyzing the situation and discovering appropriate management technique in absence of proper research and lack of proper understanding of the situation.

Limitations of Contingency Approach:

Questions:1.What is system approach? Give example and write the

key concepts of system approach.2.Write the block diagram of system approach external

environment and features of system approach.3.What is contingency approach? Write the internal and

external contingency factors. 4.Discribe the external contingency factors of general

environment of Coca Cola.

True-False:1.Feedback is a part of key concept of system approach. T2.External contingency factors are to types. F3.Technological factor is a part of external contingency factor. T

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