Managing Systems
Another way to look at the manager’s job is from the perspective of managing systems.
System:
A system is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. It’s a concept taken from the physical sciences and applied to organizations.
The two basic types of systems are
Closed systems are not influenced by and do not interact with their environment.
Open systems dynamically interact with their environment. Today, when we call organization systems, we mean open systems, that is, an organization that constantly interacts with its environment.
The systems theory approach is based on the notion that organizations can be visualized as systems of interrelated parts or subsystems that operate as a whole in pursuit of common goals. This will be discussed in more detail in the next session.
1. The major components of a system are:
a. Inputs: the various human, materials, financial, equipment, and informational resources required to produce goods and services.
b. Transformation processes: the organization’s managerial and technological abilities that are applied to convert inputs into outputs.
c. Outputs: the products, services, and other outcomes produced by the organization.
d. Feedback: information about results and organizational status relative to its environment.
2. Open versus closed systems.
These are terms indicating the relative degree with which a system interacts with its environment. While there are very few, if any, completely open or completely closed systems, we usually view open systems as those having continual interaction with its environment. Closed systems are those with little interaction and feedback from their environments.
3. Two major characteristics of open systems are:
a. Negative entropy is the ability of open systems to bring in new energy in the form of inputs and feedback from the environment in order for the organization to delay or to arrest entropy, the decaying process.
b. Synergy is the ability of the whole to equal more than the sum of its parts.
c. The systems viewpoint suggests that managers are likely to be more successful if they attempt to operate their units as open systems rather than as closed system.
Answer to Test Yourself on Management Viewpoints and Theories!!!!
1. What are some early evidences of management practice?
Some early evidences of management practice are the Egyptian pyramids, the Great Wall of China, and the status of Venice as a major economic trade center in the 1400s.
2. Explain why division of labor and the Industrial Revolution were important to the study of
management.
Division of labor increases productivity by increasing each worker’s skill and dexterity, saves time that is commonly lost in changing tasks, and creates labor-saving inventions and machinery. During the Industrial Revolution, business owners were creating large businesses that required formalized management practice.
3. What are the four major approaches to the study of management?
The four major approaches to the study of management are scientific, general administrative, quantitative, and organizational behavior. Each is correct and makes an important contribution to our overall understanding of management.
5. Describe Frederick W. Taylor’s contributions to scientific management?
Frederick Taylor defined four principles of management—develops a science for each element of an individual’s work; scientifically select, train, teach, and develop each worker; cooperate with workers to ensure that all work is done in accordance with the principles of science; and divide work and responsibility almost equally between management and workers.
6. Explain Frank and Lillian Gilbreth’s contributions to scientific management?
Frank and Lillian Gilbreth studied work arrangements to eliminate wasteful hand and body motions. They also experimented with the design and use of proper tools and equipment for optimizing work performance.
7. Describe Fayol’s principles of management and how they compare with Taylor’s?
Henri Fayol’s principles of management were division of work, authority, discipline, unity of command, unity of direction, subordination of individual interests, remuneration, centralization, scalar chain, order, equity, and stability of tenure of personnel, initiative, and esprit de corps. In contrast to Taylor’s principles, Fayol’s focused on the entire organization and not just the individual worker.
8. What did Weber contribution to the general administrative theories of management?
Max Weber described an ideal type of organization called a bureaucracy, characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. Rules and controls were to be applied uniformly, avoiding involvement with individual personalities and preferences of employees.
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