system approach

Systemo A set of interrelated and interdependent parts

arranged in a manner that produces a unified whole.o An organized or complex whole; an assemblage or

combination of things or parts forming a complex unitary whole

o A system is basically a combination of parts (subsystem). Each part may have various sub-parts.

o An organization is a system of mutually dependent parts, each of which may include many subsystem.

Management as a Social System Management as Open System Adaptive Dynamic Probabilistic Multilevel and Multidimensional Multivariable An integral approach Multidisciplinary

Closed systems

Are not influenced by and do not interact with their environment (all system input and output is internal).

Open systems

Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

1. Inputs – are people, money, information, equipment, and materials required to produce and organization’s goods or services.

2. Output – the products, services, profits, loses, employee, satisfaction or discontent, and the like that are produced by the organization.

3. Transformation Process – the organization’s capabilities in management and technology that are applied to converting inputs into outputs.

4. Feedback – information about the reaction of the environment to the outputs that affects the inputs.

The Organization as an Open System

Mckinsey’s 7s Framework

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2–7

Mckinsey’s 7s Framework It is a management model that describes 7 factors to

organize a company in an holistic and effective way.

Together these factors determine the way in which a corporation operates. Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or small.

They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well. On top of that, the relative importance of each factor may vary over time.

McKinsey 7s Model

The Seven Elements

Hard Elements

Strategy

Structure

Systems

"Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines

The Seven Elements

Soft Elements

Shared Values

Skills

Style

Staff

"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture.However, these soft elements are as important as the hard elements if the organization is going to be successful.

The Seven Elements Strategy - Actions a

company plans in response to or anticipation of changes in its external environment. It may also be seen as plans for allocation of resources to enable the company’s identified goals

The Seven Elements

Structure - Basis for specialization and coordination influenced primarily by strategy and by organizational size and diversity. This is also the way that different units in the firm relate to each other.

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

The Seven Elements

Style - The culture of the organization, 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?

The Seven Elements

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

The Seven Elements

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

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.

The Seven Elements

These seven elements also help estimate the effectiveness of a firm. They are interrelated -- if one element changes, it will affect all the others.

It aims at meaningful analysis of organizations and their management.

It facilitates the interaction between organization and its environment.It guides managers to avoid analysing problems in isolation and to develop an integrated approach.

Over-conceptualThe 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.

Coordination of the organization’s parts is essential for proper functioning of the entire organization.

Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.

Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

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