The system approach to management is based on general system theory founded by Scientist Ludwig Von Betalanffy.

The main context of this theory is that to be able to fully understand the operations of an entity, the entity must be viewed as a system.

A system is a number of interdependent parts functioning as a whole for some purpose.

The concept of WHOLENESS is very important in general system analysis. The system must be viewed as a whole and modified only through changes in its parts.

L. Thomas Hopkins suggested 6 guidelines for system analysis:

  1. The whole should be the main focus of the analysis. Parts to receive secondary attention.
  2. Integration is the key variable in wholeness analysis. It is defined as the interrelatedness of the many parts within the whole.
  3. Possible modifications in each part should be weighed in relation to possible effects on every other part.
  4. Each part has some role to play so that the whole cam accomplish its purpose.
  5. The nature of the part and its function is determined by its position in the whole.
  6. All analysis starts with the existence of the whole. The parts and their interrelationships should then evolve to best suit the purpose of the whole.

 

THE MANAGEMENT SYSTEM:

The main parts of the management system  are:

  • Organizational Input
  • Organizational Process
  • Organizational Output

The management system is an open system, which interacts with its environment.

The factors which the management system interact with are:

  • Government
  • Suppliers
  • Customers
  • Competitors

Each of these factors represents a potential environment influence that significantly change the future of the organization and thus the management system.

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