6. ELEMENTS OF SYSTEMS APPROACH
1.OPEN/CLOSED SYSTEM: Systems may be either open or closed. An open system is one which
depends on outside environment for its survival. A closed system is one which does not interacts with the
outside environment.
2.SUB-SYSTEMS:The entire system is divided into many parts. Each part is called Sub-system. A system
may be a sub-system of a larger system like a plant is a part of a company.
3.SYNERGY: It means the whole is greater than the sum of its parts. Synergy means co-operation and
interaction of various departments in an organisation which results in more productivity.
4.DEFINED BOUNDARIES: Each system has a defined boundary in an organisation which separates it
from other. In a closed systems this element is rigid and in the case of open systems it is flexible.
5.FEEDBACK MECHANISM: The system can modify itself depending on the feedback of people.It
helps the system to find and correct its errors.
6.INPUT-OUTPUT SYSTEM: An organisation is an input output system. The inputs include
physical, human, financial resources which helps in the production of outputs of goods & services.
7.
8.
9.
10. • It forces managers to view their organization as part of a whole.
• It encourages managers to focus on better communication and cooperation within the organization.
• It makes managers acutely aware that good internal management of the organization may not be
enough to ensure survival.
• It forces managers to be aware of how the environment affects specific parts of the organization.
• It concentrates on end results rather than the means.
• It provides an orderly and efficient plan of action.
• It develops coordination of the specialized activities.
• It provides a good basis of control.
• It frees management from many daily details of operations management.
ADVANTAGES
11. If there is a change in environment it may react slowly resulting a chance for a loss.
It may result in internal disputes.
It does not specify the the nature of interactions and inter-dependencies.
It does not concentrate on the means it use
DISADVANTAGES
