MSC'N'BUSINESS:
NOUN 2018 PAST Q&A - OGANIZATIONAL BEHAVIOR AND THEORY
Q: Modern Organizations are viewed as a ‘System’ Discuss.
(8marks)
A: Systems Theory
Modern Organizational Theories are classified into two types
– Systems Theory and Contingency Theory. In this article, we will take an
in-depth look at the Systems Theory along with its contributions and
criticisms.
The Systems Theory was developed in the early 1960s. With a
conceptual and analytical base, it attaches great significance to empirical
research data. In simple terms, the
theory considers organizations as systems. ”A system is an organized or complex
whole – an assemblage or combination of things or parts which form a complex
unitary whole”.
There are two types of systems:
Open Systems – which interact with their environment.
Also, all living systems are open systems.
Closed Systems – which have no interaction with their
environment. Also, all non-living systems are closed systems.
An organization is an Open System as it continuously
interacts with its environment. Therefore, to understand an
organization, one must identify its boundaries. We can understand an
organization’s interaction with its environment as an input-output model.
Inputs are energy, information, and materials which
the organization takes from the environment. It then transforms with the
help of people and machines and supplies the output to the environment. Further, the reaction of the environment to
the output is the feedback mechanism using which the organization can evaluate
and correct itself.
systems theory
An organization has several sub-systems like technical
sub-systems, social sub-systems, etc. Some of these sub-systems are independent
and don’t need interlinking through any process. Hence, the Systems Theory
involves the study of an organization and identifies:
Its strategic parts
The nature of the interdependency between these parts. If there are any processes or systems which
link the parts together and the list of goals that the system is trying to
accomplish.
Main Parts of an Organization System
The primary parts of an organization system are as follows:
Individual – An individual and his personality are the
basic part of the system. Every individual’s attitude and motives determine his
expectations when he participates in the organization system.
Formal Organization – A formal organization is the
interrelated pattern of jobs which are designed to regulate the actions of
individuals and other resources in the organization. Therefore, the individual
must perform his job and the organization must fulfil his expectations on successfully completing the job. Usually, there is incongruency between the
goals of the organization and those of its members.
Informal Organization – In any organization, an
individual interacts significantly with the informal group to which he belongs.
This informal group, typically, demands the individual to conform to its
laid-down behaviour patterns. The individual conforms to accomplish his
goals by associating with the informal group. Further, since the two interact,
they modify each other’s behaviour.
Status and Roles – In every organization, individuals
are expected to play certain roles. These roles determine their status. There
are times when the demands on an individual from formal and informal
organizations contradict each other. At such times, there is a role conflict.
Therefore, the two roles must fuse together. This fusion
process works to wield divergent elements together to preserve the
integrity of the organization.
Physical Setting – Another important component is the
physical surroundings in which an individual performs a job. Therefore, it is
important to carefully examine the interaction in the complex man-machine
system. One cannot approach the problem in a purely technical manner and needs
to consider the social, psychological, as well as physiological conditions of
members. Only then can one fit the machines to men.
An interconnection between the sub-systems The sub-systems of an organization are
interconnected through various processes as described below:
Communication – An effective mechanism which links
all the organizational sub-systems together. It involves receiving messages
from the external environment and sharing these messages within the organization.
It also works as a control and coordination mechanism to link the decision
centres in the system.
Decision-making is another important process
for linking various parts in an organization. In fact, the decision to produce
depends on the interaction between individuals and the demands of the
organization. Hence, the decision of an individual to participate in production
depends on the demands and rewards of the organization.
Balance – Balance is an equilibrating mechanism which
allows the different parts of the system to stay in a harmonious and structured
relationship with each other. It helps in ensuring integrity in the face of a
rapidly changing environment.
Contributions of the Systems Theory
The Systems Theory offers an open-system view of an
organization and recognizes its environmental interface. The theory is dynamic and adaptive. It adopts a multi-level and multi-dimensional
approach. Therefore, it considers both macro and micro aspects. Further, it draws from several disciplines
like sociology, economics, psychology, engineering, etc.
It is descriptive and not prescriptive or normative,
Further, it is probabilistic and not deterministic and places a lot of emphasis
on lateral rather than vertical relationships.
Cybernetics is another significant contribution to the Systems Theory.
Cybernetics is the science of communication and control in a man-machine
system.
Criticism of the Systems Theory
The Systems Organizational Theory is not unified but an
amalgamation of several theories like the systems theory, contingency theory,
decision theory, etc. It is not really
modern, but a synthesis of the research contributions of earlier theories. This theory is too abstract to be of
practical use. It does not specify the precise relationships between the
organization and the social system.
It does not offer a framework which can be applied to all
organizations.
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