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Systems Approach
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Systems Approach To Management by Bertalanffy
Systems Approach To Management
T he word System is taken f rom a Greek language which means to bring together or to combine. A system is a set of inter-related parts, which work together to achieve certain goals. Image Credits © Pablo Alf ieri. Ludwig von Bertalanffy is called the Father of the Systems Approach. According to Ludwig von Bertalanf f y,

"In order to understand an organised whole, we must know both the parts as well as the relation between them."

Concepts of Systems Approach To Management
A systems approach has the f ollowing key concepts :1. Open or Closed Systems : Systems may be either open or closed. An open system is one, which depends on the outside environment f or survival. A closed system does not interact with the environment. 2. Sub-system : T he f ull system is made up of many parts. Each part is called a sub-systems. A system may be a sub-system of a larger system. For e.g. A department is a sub-system of a plant. A plant is a sub-system of a company. 3. Synergy : Synergy means that the whole is greater than the sum of its parts. In an organisation, when dif f erent departments co-operate and interact, they become more productive. T his is called synergy. 4. Defined boundaries : Each system has a boundary that separates it f rom its environment. In case of a closed system, the system boundary is rigid. However, in an open system, the boundary is f lexible. A business organisation, has boundaries with many external systems like creditors, suppliers, customers, government agencies, etc. T he system is inside the boundary, the environment is outside the boundary. 5. Feedback mechanism : A system can adjust itself to the changing environment through the f eedback mechanism. Feedback helps the system to f ind out and correct its mistakes. 6. Multidisciplinary : Management

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