Scribd
Upload
25 views3 pages

Systems Approach - Meaning, Importance, Factors

The Systems Approach is a management perspective that views business problems as part of an interconnected whole, emphasizing the importance of subsystems and their contributions to overall success. It is crucial for understanding complex issues across various business domains by considering all departments rather than isolating problems within individual areas. While it offers a holistic view and efficient solutions, it can also overlook important details when problems are too complex or when focus shifts away from subsystems.

Uploaded by

fone24757
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
25 views3 pages

Systems Approach - Meaning, Importance, Factors

The Systems Approach is a management perspective that views business problems as part of an interconnected whole, emphasizing the importance of subsystems and their contributions to overall success. It is crucial for understanding complex issues across various business domains by considering all departments rather than isolating problems within individual areas. While it offers a holistic view and efficient solutions, it can also overlook important details when problems are too complex or when focus shifts away from subsystems.

Uploaded by

fone24757
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

What is Systems Approach?

Systems approach is a management perspective which advocates that any business problem should be seen as
system as a whole which is made up of an hierarchy of sub-systems. So rather than seeing the problem in parts it
should be seen as whole. Systems approach can be applied to all the business domains like administration,
insurance, banking, hospitality etc.
Though it defines system as a whole but it keeps focus on the subsystems and components as well on their role
in the entire system. It is linked closely to Systems Thinking. A defined system has a clear boundary and is
separate from the environment. This makes it stand apart to look at the problem and its solution. Each subsystem
contributes to making this system as a whole.
Many administrators and designers use the system approach to solve and articulate a complex problem. It was
first initiated by Ludwing Von Bertalanfty.

Importance of Systems Approach


Systems approach is very important as it provides the bigger picture. It sees all departments and subsystems as
contributing factors for the overall organization. Overall success of organizations is seen as a whole and not
success of one department over the other.
Let us take a scenario.

If we are facing an issue in a company related to sales and we only see the problem to be solved with the sales
department rather than all the departments together we may not be able to solve the problem effectively.
Only focusing on sales will lead to more pressure on sales team to increases sales leading to poor customer
experience as the sales department will try hard on upselling or cross selling. But if we use systems approach
and see the problem of sales at whole level then we might see that the product quality can be an issue or may be
there is not enough marketing done for the product or may be the after sales service is not provided leading to
drop in sales figures.
The company can then focus on overall goals and strategy to make sure that a high quality product or service
would be produced with great customer experience. That will help not only help the sales problem but overall
uplift the company.
Systems approach gives insights into each components' workings and helps see its contribution to the overall
system.

Read More
Systems Selling
Pre-Approach
Sales Approach
Product Approach
Acquisition Integration Approaches
Problem Solution Approach

Factors in Systems Approach


1. Dependency
Each part of the system derives inputs and information from other system to achieve the business goal. The parts
do not exist in silos but are coupled with one another to work as part of an entire working system.

2. Responsiveness
The system changes as per the environment and reacts to the changes in the environment. If the external
environment changes then systems responds as well by making changes in its parameters to stay relevant and
work as per expectations.

3. Results
Systems approach is focused on producing right results for the overall system. Each part needs to work
according to the requirement of the overall system and product expected results.
All departments and sub-systems of the overall large system need to product results.
Just one or two parts performing well will not help the system.

4. Focus
The focus of each part of the system should be clearly and well defined. e.g. All the departments in the
organization should have their clear responsibilities to make the system or organization work. Overlapping
responsibilities can reduce the focus and effectiveness of the entire system.
Advantages of Systems approach
The benefits of this approach are:
1. It helps to see the problem at holistic level and resolves the issues
2. Systems approach helps understand the problem in a better way and comes up with more efficient solution
3. It clearly defines the scope or the boundary for systems and problems where in influence of internal and
external factors can be seen

Disadvantages of Systems Approach


This approach has its disadvantages:
1. Sometimes problems are too complex and needs focus on the sub-systems rather than keep seeing system as a
whole.
2. While designing from bottom to top, focus on sub-systems is required and important details can be left in case
focus is only kept on overall system
3. Many a times while solving a specific issue leads to focus on a component and not on overall system

You might also like