Concept of Systems Approach to Management

The theory emphasizes that a system is not simply a collection of individual parts but rather an organized whole, where the interdependence of its parts contributes to the unique characteristics of the entire system. Every system, including organisations, is composed of interdependent subsystems, which themselves can consist of smaller subsystems. This recognition highlights the complexity and interconnectedness of organisations as open systems. Unlike closed systems, open systems interact with their external environment, relying on it for energy, information, and materials. These interactions with the external environment influence the functioning of the system. Open systems can adapt to changes in their external environment, ensuring their continued viability and survival.

Overall, the General Systems Theory applied to organisation and management views organisations as complex, open systems comprised of interdependent subsystems. It emphasizes the interconnectedness of the parts and their interactions with the external environment. This approach recognizes that organisations are not self-sufficient but rely on external inputs and adapt to changes in their environment to thrive.

The General Systems Theory applied to organisation and management in the 1950s, has been developed through the contributions of pioneers such as Kenneth Boulding, Ludwig Von Bertalanffy, Nisbet Wiener, E.L. Trist, F.E. Kast, R.A. Johnson, and Chester Barnard.