3. Systems Approach
a) What are the key characteristics of the approach?
The systems approach attempts to reconcile classical and human relations approaches and the work of the formal and the informal writers. Attention is focused on the total work organisation and the interrelationships of structure and behavior, and the range of variables within the organisation. This approach can be contrasted with a view of the organization as separate parts. The systems approach encourages managers to view the organization both as a whole and as part of a larger environment. The idea is that any part of an organization's activities affects all other parts.
b) Does the approach work in practice - if not, why not?
If considering whether or not the systems approach help seeing how the whole organisation works and how changes in one part makes changes in other parts, then yes this approach works. Systems oriented production managers make scheduling decisions only after they have identified the impact of these decisions on other department and on the entire organisation.
c) How did the approach help develop management thinking?
This approach gives managers a way of looking at the organisation as a hole and as a part of the larger external environment. Systems approach helped managers grasp the importance of webs of business relationship efforts.
d) Is the approach still relevant today?
Nowadays we can see the impact of systems approach in many ways.
Production managers in a manufacturing plant, for example, prefer long uninterrupted production runs of standardised products in order to maintain maximum efficiency and low costs.
Marketing managers on the other hand want to offer customers quick delivery of a wide range of products would like a flexible manufacturing schedule that can fill special order on short notice. To do that they have to communicate not only with other employees and departments, but frequently with representative of other organisation as well.
e) Is the approach only workable in a particular social, cultural and economic context?
This approach is workable not only in business environment, but also sciences, architecture. For example in oceanography - forecasting complex systems behaviour.
4. Contingency Approach
a) What are the key characteristics of the approach?
Contingency approach, which can be seen as an extension of systems approach, highlights possible means of differentiating among alternative forms of organisation structures and systems of management. There is no one optimum state. For example, the structure of organisation and its success are dependent, that is contingent upon, the nature of tasks with which it is designed to deal and the nature of environmental influences.
The most appropriate structure and system of management is therefore dependent upon the contingencies of the situation for each particular organisation. The contingency approach implies that organisation theory should not seek to suggest one best way to structure or manage organisations but should provide insights into the situational and contextual factors which influence management decisions.
b) Does the approach work in practice - if not, why not?
This approach is reasonable and it makes sense when dealing with real life situations. Management can't use one way to manage or structure organisations as every organisation has its own strengths, weaknesses, opportunities and threats.
c) How did the approach help develop management thinking?
The approach helped to understand and approve the fact that there can't be only one way to deal with managing or structuring organisations.
d) Is the approach still relevant today?
Yes, the approach is still relevant today and that is why managers study organisations from all points of view and plan their future.
e) Is the approach only workable in a particular social, cultural and economic context?
This approach is applicable to all possible kinds of context as it does not have one set of rules for all organisations.