Final

Introduction
Chester Bernard and von bertalaniffy are known to be part of the major contributors of
management who came up with the system theory is of the domeinating organization theories
in the management today .it treat an organisation as either open or closed system .system
theory is defined as the interdisciplinary study of systems therefore the academic progation
seeks to spill out the contribution made by chester Bernard and von bertalaniffy to
management.
Chester Barnard’s Social Systems Approach and Contribution to management.
Chester Barnard was the President of new Jerray Bell Telephone Company. He served in
various other organisations too. His important writings include: The Functions of Executive
(1938). Organisation and Management (1948). Elementary Conditions of Business Morals.
His writings had important impact on human organisation. In his organisation theory he
adopted a sociological approach and in dealing with the functions of executives, he stressed
the importance of leadership and communication. Barnard divided organisation into formal
and informal. He said that informal organisation is an important part of formal organisation.
Barnard viewed organizations as cooperative systems, which he defined as a complex of

physical, biological, personal and social components which are in a specific systematic
relationship by reason of the cooperation of two or more persons for at least one definite end.
Basically, according to Barnard, we enter into cooperative arrangements to accomplish things
we cannot do alone.
He viewed organizations in biological terms akin to a living organism that seeks to survive in
a hostile environment. Similarly, he recognized that an organization is not self-sufficient, but
needs to rely upon resources from the outside environment that allow it to function and also
limits an organization's actions. For example, an organization needs capital, labor, equipment,
and resources to function and accomplish its goals. On the other hand, science and
technologies are resources in the environment that can be tapped by an organization but also
limit what it can accomplish. We can't achieve a goal that is outside the laws of physics,
Barnard’s Contributions to Management Thought:
Barnard suggested social systems approach to management. His main contributions to

management thought can be described as follows:
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Theory of Formal Organisation:
Barnard gave a theory of formal organisation. He defined it as “a system of consciously co-

ordinated activities of forces of two or more persons.” According to him, organisation
consisted of human beings whose activities were co-ordinated and therefore becomes a
system : According to Barnard initial existence of organisation depends upon three elements :
(i) the willingness of persons to contribute efforts to the co-operative system (ii) there should
be an objective of co-operation and (iii) proper communication system is necessary.
Organisational Equilibrium:
Barnard suggested an equilibrium model to describe the balance achieved between the
contributions of the members of an organisation and return contribution made by the
organisation to the fulfilment of private goals of the members. Barnard treated organisation as
separate from the environment where it works. The persons working in the organisation have
two roles a personal role and an organisational role. There should be a balance between what
employees get out of the organisation (money, status, recognition, etc.) and what they
contribute in form of time, knowledge, discomfort, production, etc.
Acceptance Theory of Authority:
Barnard did not agree with the classical concept of authority where it comes from top to
bottom. He said that authority comes from bottom. In his opinion authority is confirmed only
when it is accepted by a person to whom it has been addressed. Disobedience of such a
communication is a denial of authority.
According, to Barnard the decision as to whether an order has authority or not lies with the
person to whom it is addressed, and does not reside in persons of authority or those who issue
these orders. Thus in Barnard’s view, if a subordinate does not accept his manager’s
authority, it does not exist.
A person will accept authority under following conditions’:
(a) He can and does understand the communication;
(b) At the time of his decision he believes that it is not inconsistent with the purpose of the
organisation.
(c) At the time of his decision, he believes it to be compatible with his personal interest as a
whole; and
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(d) He is able (mentally and physically) to comply with it.
Functions of the Executive:
Barnard postulated three types of functions for the executives in forma! Organisational set up.
These functions are:
(a) Maintaining proper communication in the organisation
(b) Obtaining essential services from individuals for achieving organisational goals
(c) Formulating purposes and objectives at all levels.
Informal Organisation:
Both formal and informal organisations co-exist in every enterprise. Informal organisation
refers to those social interactions which do not have consciously co-ordinated joint purpose.
This organisation exists to overcome the problems of formal organisation. Barnard suggested
that executives should encourage the development of informal organisation to bring
cohesiveness in the organisation and also to serve as a means of communication.
Ludwig von Bertalanffy contribution to management
The Systems Approach to management theory, commonly viewed as the foundation of

organizational development, views the organization as an open system made up of
interrelated and inter dependent parts that interact as sub-systems. Thus the organization
comprises a unified singular system made up of these subsystems. For example, a firm is a
system that may be composed of sub-systems such as production, marketing, finance,
accounting and so on. As such, the various sub-systems should be studied in their inter-
relationships rather, than in isolation from each other. The system as a whole is affected by
internal elements (aspects of the sub-units) and external elements. It is responsive to forces
from the external environment.
The systems approach to management is more a perspective for viewing problems than a
school of management thought. Ludwig von Bertalanffy is recognized as the founder of
general system theory. The system approach is based on the concept that an organization is a
system. A system is defined as a number of interdependent parts functioning as a whole for
some purpose. Here there are five components: inputs, a transformation process, outputs,
feedback, and the environment. The systems approach is very important in general
management analysis. Four especially ideas that have had substantial impact on management
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thinking are the concepts of open versus closed systems, subsystems, subsystems and
interdependencies, synergy and entropy.
Open versus closed systems. According to Ludwig von Bertlanffy, there are two basic types
of systems: closed systems and open systems. Closed system are not influenced by and do not
interact with their environments. Open systems interact with their environment. All
organizations are open systems, although the degree of interaction may vary.
Entropy. Entropy is a universal property of systems and refers to their tendency to run down
and die. A primary objective of management, form systems perspective, is to avoid entropy.
Synergy. Synergy means that the whole is greater the sum of its parts. Synergy is an
important concept for managers in that it reinforces the need to work together in a
cooperative fashion.
Subsystems. A subsystem is a system within a system. From another perspective, subsystems

are parts of a system that depend on one another.
The contributions of system approach to management:
 Under a system approach, managers have a good view of the organization.

 It gives importance to the interdependence of the different parts of an organization
and its environment.
 It foretastes consequences and plan actions.
 Systems thinking warns managers against adopting piecemeal approach to the
problem-solving.
 It assists in studying the functions of complex organizations
 It is probabilistic rather than deterministic.
 It has been utilized as the base for the new kinds of organizations like project
management organization.
 It is possible to bring out the inter-relations in various functions like planning,
organizing, directing and controlling.
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Conclusion
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REFERENCES
Bertalanffy, L. von, (1969). General System Theory. New York: George Braziller, pp. 196
Bertalanffy, L. von, (1969). General System Theory. New York: George Braziller, pp. 194-
197
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Introduction

Chester Barnard’s Social Systems Approach and Contribution to management.

Barnard viewed organizations as cooperative systems, which he defined as a complex of

Barnard’s Contributions to Management Thought:

Barnard suggested social systems approach to management. His main contributions to

Barnard gave a theory of formal organisation. He defined it as “a system of consciously co-

Acceptance Theory of Authority:

A person will accept authority under following conditions’:

(a) He can and does understand the communication;

Functions of the Executive:

(a) Maintaining proper communication in the organisation

(c) Formulating purposes and objectives at all levels.

Ludwig von Bertalanffy contribution to management

The Systems Approach to management theory, commonly viewed as the foundation of

Subsystems. A subsystem is a system within a system. From another perspective, subsystems

The contributions of system approach to management:

 Under a system approach, managers have a good view of the organization.

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