Keeping in mind the concept of system approach, come up with two practical examples on how decisions and actions in one organizational area can affect the other areas of an organization (Think from both perspectives (positive + Negative).
Answers
Answer:
Systems Approach identifies the inter-dependencies and inter-relations between the various parts of the organisation and helps to get a holistic view while dealing with business issues. The advantages and disadvantages of this approach are listed below:
Advantages:
1. It increases organisation’s adaptability to environmental changes. The organisation is studied as a whole and not through its parts. This enables it to adapt to the needs of the environment. Decisions are made keeping in mind the macro as well as micro environment.
2. The focus is on achieving the individual as well as overall goals of the organisation.
3. Uniformity in decision making such that no specific domain gets preferential treatment
4. Adpative and Dynamic
5. Focuses on multiple dimensions of management.
Disadvantages:
1. May not be always practical and lead to delays in decision making.
2. Nature of inter-dependence is not defined.
3. Classification of the inter relationships has to be done properly otherwise it could be counter productive.
4. Does not cater to contingencies or particular style of functioning in the organisation.
5. May not be applicable to smaller organisations. The theory assumes that most of the organisations are big, complex and open systems.