Organizational Behavior Based on a Systems Approach

Organizational Behavior Based on a Systems Approach
The organization as a whole is the major emphasis in the systems approach, rather than any one unit. However, the connections between these systems, as well as the interactions of the organization with its surroundings, are also highlighted.

Method of system-level planning
The fundamental concepts that apply to the human body also apply to businesses, which may be thought of as a collection of interdependent systems. An example of a subsystem is the sales, marketing, and production departments, which all work together to produce a finished product.

The global economy may be seen as a system of national subsystem economies, and this concept is applicable to both firms and whole economies. National economies may be understood as subsystem industries, which in turn can be seen as subsystem corporations.

There are five principles of the systems approach.

It is possible to look at the big picture and see underlying patterns, trends as well as consequences of changes in how they effect the greater environment by using a systems approach to management. Long-term solutions to issues may be found by executives who have a better grasp of how their organization’s components and structures interact.

Consider these five systems-approach principles:

  • Each component or subsystem is linked together to form a coherent whole when put together.
  • Subsystems should be seen as part of a larger system rather than as stand-alone entities.
  • The internal components of an organization’s system are separated from the external systems by a border.
  • A system interacts with its surroundings, accepting inputs such as information, materials, and energy, and then changing and providing outputs for other systems.
  • When an organization adapts to its surroundings and evolves, it is dynamic in nature.
  • Organising via the lens of systems

The organization as a whole is the major emphasis in the systems approach, rather than any one unit. A focus on how systems interact with one another, as well as how an organisation interacts with its surroundings, is also included in this analysis. Subsystem modifications will always have an impact on other subsystems, no matter how little.

You may wish to increase the size of your outside sales force, for instance. Your company’s goods should become more well-known as a consequence, which should lead to greater sales and an increase in market share (environment). But this would mean more work for the employment and accounting departments, the manufacturing and shipping divisions, customer service and buying.

As an example of a subtler approach, imagine that you are proposing a 20 percent increase in the commission paid to the sales team. With a systems approach, you should also be able to foresee how this will affect the morale of other departments, particularly when sales people start showing up in new automobiles. This should improve sales and increase the burden in other areas.

Making changes within a subsystem requires carefully examining the implications for the whole system; a company is an ecosystem, and repercussions are unavoidable. Effective change and company efficiency are more likely when you actively seek to limit bad consequences and predict them.

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