Systems Approach to Management

Summary

This session focuses on the systems approach to management, emphasizing the importance of understanding inputs, outputs, and processes within a managerial system. It discusses the necessity of digitization in modern organizations and the role of interrelated functions in achieving objectives with resource optimization. The analogy of academic institutions processing raw students into graduates is used to illustrate the concept. The session also covers managerial functions like planning, organizing, staffing, directing, and controlling, and suggests using feedback for continuous improvement. Recommended resources for further study include books and online materials.

Takeaways

• 🎓 The session aims to understand the inputs, outputs, and the concept of systems approach in management.
• 🧩 A managerial system is a set of inter-related functions aimed at achieving objectives through effective resource utilization.
• 🌐 Digitization is essential for organizations due to the complexity of modern firms and the digital world's pervasive influence.
• 🏭 In an academic context, the input is a raw student, processed through education to become an output, a graduate.
• 🔄 Inputs in management can be various resources like manpower, machines, materials, money, methods, markets, information, legal aspects, and government regulations.
• 🛠️ Processing in management involves executing managerial functions such as planning, organizing, staffing, directing, controlling, and forecasting.
• 🎯 The output of management is the achievement of objectives, which could be goods in manufacturing or services in service industries.
• 🔁 Systems approach can include closed-loop systems where feedback from outputs is used to improve future inputs and processes.
• 📚 The session references five books and suggests using the internet for further information on systems approach in management.
• 🙌 The session concludes with a thank you to the attendees, emphasizing the importance of understanding systems approach in today's digitized business environment.

Q & A

What is the main focus of the session on the systems approach to management?

The main focus of the session is to help students understand the concept of systems approach to management, including identifying the inputs and outputs of a managerial system, and recognizing the importance of effective utilization of resources to achieve organizational objectives.

Why is digitization considered essential in today's organizations?

Digitization is considered essential due to the increasing complexity of firms and the need to adapt to the digital world. It is seen as a vital component for any organization to remain competitive and efficient in their operations.

What is the basic schematic of a system as discussed in the session?

The basic schematic of a system involves having inputs, processing, and outputs. Inputs are the resources or raw materials that go into the system, processing refers to the functions or activities performed on these inputs, and outputs are the end results or products of the system.

Can you provide an example of how the input-output model is applied in an educational institution?

In an educational institution, the input could be a raw student who is then processed through various subjects and practical sessions. The output is a graduate student, specifically, a graduate engineer in the case of engineering institutions.

What are the different types of resources considered as inputs in the management process?

In the management process, inputs can include man (human resources), machine (equipment and technology), material (raw materials), money (financial resources), methods (processes and techniques), markets (customer base), information (data and knowledge), legal aspects, and government rules and regulations.

What are the managerial functions that constitute the processing part of the management system?

The managerial functions, which are part of the processing in the management system, include planning, organizing, staffing, directing, controlling, motivation, and forecasting.

How does the concept of feedback fit into the systems approach to management?

Feedback is an integral part of the systems approach to management as it allows for a closed-loop system. It involves taking the output, evaluating it, and using this information to make corrective actions or improvements in the input and processing stages for future planning periods.

What is the role of decision making and information flow in the digital world as per the session?

In the digital world, decision making and information flow play a vital role. Managers take decisions based on the information that flows within the organization, which is crucial for the effective functioning and adaptation to the dynamic digital environment.

What are the subsidiary systems mentioned in the session, and how do they contribute to achieving organizational objectives?

Subsidiary systems are the smaller systems within a larger organizational system. They contribute to achieving organizational objectives by performing specific functions in an efficient and effective manner, ensuring that the overall system operates optimally.

How does the session suggest improving the understanding of inputs, outputs, and processing in different industries?

The session encourages students to think about different industries, such as manufacturing or service industries, and consider what might be the inputs, outputs, and processing involved in those industries. This exercise helps to deepen the understanding of the systems approach to management across various sectors.

Outlines

00:00

🎓 Systems Approach to Management

The first paragraph introduces the concept of a systems approach to management within an educational context. It emphasizes the importance of understanding the inputs and outputs of a managerial system, as well as the overall process. The session aims to clarify how systems are interrelated functions designed to achieve objectives through the effective use of resources. The necessity of digitization in modern organizations is highlighted, with the digital world presented as an essential tool for any firm. The paragraph uses the analogy of an academic institution to explain the system's input (raw students) and output (graduate engineers), with the processing involving teaching various subjects and conducting practical sessions.

05:01

📈 Management Functions and Decision Making

The second paragraph delves into the specifics of management functions and the role of information flow in the digital world. It discusses how decisions are made and how information moves within an organization. The paragraph introduces the concept of subsystems within a larger system and the importance of achieving objectives efficiently. It outlines the various resources that can be considered inputs in management, such as manpower, machines, materials, money, methods, markets, information, legal aspects, and government regulations. The managerial functions, including planning, organizing, staffing, directing, controlling, and motivation, are described as the processing part of the system. Examples are given to illustrate these functions, such as manpower planning in a manufacturing industry and the organizational structure necessary for executing these functions.

10:02

🔁 Feedback and Continuous Improvement

The third paragraph discusses the importance of feedback in a management system, suggesting that it can lead to remedial or corrective actions. It mentions the possibility of incorporating feedback into future planning periods to improve processes. The paragraph concludes by recommending five books for further reading and encourages the use of the internet for additional resources. The speaker thanks the audience for their attention, indicating the end of the session.

Keywords

💡Systems Approach

The 'Systems Approach' refers to a way of understanding and managing complex systems by viewing them as a collection of interrelated parts that work together to achieve a common goal. In the context of the video, it is used to discuss how management systems function, where inputs are processed to produce outputs. The video emphasizes that this approach is essential due to the complexity of modern organizations and the necessity of digital integration.

💡Management Process

The 'Management Process' encompasses the various activities and functions that managers perform to direct and coordinate the efforts of an organization to achieve its goals. The video describes this process in terms of inputs (resources), processing (management functions), and outputs (objectives). It is highlighted as a fundamental concept in understanding how organizations operate effectively.

💡Inputs

In the video, 'Inputs' are defined as the resources that go into a system. For a management system, these can include manpower, machines, materials, money, methods, markets, information, legal aspects, and government rules and regulations. The video explains that understanding and optimizing these inputs is crucial for the effective functioning of any organization.

💡Outputs

'Outputs' are the results or products that a system generates after processing its inputs. In the context of the video, for educational institutions, the output is a graduate student, while for manufacturing industries, it could be goods or services. The video underscores the importance of aligning outputs with the objectives of the management system.

💡Processing

In the video, 'Processing' refers to the transformation that occurs within a system, where inputs are worked on to produce outputs. For management systems, this involves carrying out managerial functions such as planning, organizing, staffing, directing, controlling, and motivating. The video uses the example of academic institutions processing raw students into graduate engineers.

💡Digitization

'Digitization' is the process of converting information into a digital format. The video stresses that digitization is not just a trend but a necessity for modern organizations. It is integral to the systems approach as it enables efficient information flow and decision-making, which are critical for managing complex systems.

💡Information Flow

The 'Information Flow' is the movement of data within an organization, which is vital for decision-making and coordination. The video discusses how in the digital world, the flow of information is a key component of the management process, influencing how decisions are made and how various parts of an organization communicate and synchronize their activities.

💡Managerial Functions

The 'Managerial Functions' are the specific roles and tasks that managers perform within an organization. These include planning, organizing, staffing, directing, and controlling. The video explains that these functions are the 'processing' part of the management system, where resources are utilized to achieve the organization's objectives.

💡Objectives

'Objectives' are the goals or targets that an organization aims to achieve. In the video, objectives are presented as the desired outputs of the management process. They guide the allocation of resources and the execution of managerial functions, ensuring that the organization's efforts are directed towards achieving its strategic goals.

💡Subsystems

'Subsystems' are smaller, interdependent systems within a larger system. The video mentions that in a management system, there can be various subsystems, each with its own inputs, processing, and outputs. These subsystems work together to contribute to the overall objectives of the organization, highlighting the interconnected nature of organizational functions.

💡Feedback

'Feedback' in the video refers to the information received from the output of a system that is used to influence the input and processing of the system. This concept is part of a closed-loop system where the management can use feedback to make corrective actions, improving the system's performance over time. The video suggests that feedback is a critical aspect of the systems approach in management for continuous improvement.

Highlights

Introduction to the systems approach to management, focusing on inputs, processes, and outputs.

Key learning objective: Understanding inputs and outputs for a managerial system, and the role of management as a process.

Systems approach is defined as a set of interrelated functions that work together to achieve organizational objectives.

Emphasis on the importance of digitization in modern organizations due to the complexity of operations and digital trends.

Basic schematic of a system: inputs, processing, and outputs. Example of academic institutions, where raw students are processed to become graduates.

Inputs for management systems are different resources like man, machine, materials, money, and methods.

Management functions serve as the 'processing' part of the system, including planning, organizing, staffing, directing, and controlling.

Outputs in the systems approach correspond to organizational objectives, which could include goods or services.

Systems must have interrelation between functions for efficient and effective achievement of objectives.

Every manager plays a critical role in decision-making and information flow, which is vital in today's digital world.

Concept of subsystems within an organization, which work together to achieve the larger goals of the system.

Managerial functions detailed: Planning, organizing, staffing, directing, controlling, motivation, and forecasting.

Example of manpower and production planning in manufacturing industries, highlighting different organizational levels.

Closed-loop systems with feedback mechanisms allow organizations to take corrective actions based on output analysis.

Final mention of resources for further reading, including reference books and online materials for expanding knowledge on systems management.

Transcripts

institute of technology

sulapur

in today's session

we will discuss about

systems approach

to management

at the end of this session

students are expected to understand

what are the inputs

and outputs

for a managerial system or a management

as a process you can say

and what is the concept of systems

approach

to

management so this is what is expected

at the end of the session

if we consider

uh

in general

how the system might look like

then

uh it refers basically

to the

set of inter-related functions

what for

basically to achieve the objectives

how

by having

effective utilization of

resources

now with this particular statement

uh

we can again say

like uh

essential white is essential it's due to

complexity of the firm and

need of a digitization see today there

is no way out for any organization

than to adopt the digitization

digital

world is there as we all know

and

no substitute for uh

digitization for any organization

talking in general uh very basic uh

primitive

schematics of

what is a system

now

uh any system if we think of

then

very basic is it has to have some input

and certain output

as it is indicated here

and in between the input and output

some processing happens

for example if we look into

academic institutions then input is a

raw student like

who is processed with the different

subjects being taught to him

and output is a

graduate student say for in engineering

institutions if we talk then output is a

graduate engineer so this is how four

years we process the student by teaching

different subjects conducting different

practical sessions on variety of

subjects so this is how input and output

it means and how

what do we do exactly

in

processing

secondly

same thing little

ahead of it if we talk

for the management process the same

schematic

if we extend

then

inputs

we can take as

different resources

there are like different types of

resources we'll talk in the next slide

but here in management process

we can

take

different resources as

input

then processing may be something like

all different functions

uh that management people carry out

they have certain functions and they

execute it

so the execution of those functions is

nothing but the processing we can call

as a matter of a system

and output is something in the

management you can say

what are the objectives

management people are having

so

that is how uh

input we can correlate with different

resources

processing is nothing but different

functions

and output you can associate with the

objectives

now at this point uh i expect you people

to

think of

different inputs and outputs

for any organization just now i gave the

example of education institution

you can think of any other

industry

maybe manufacturing or service and for

that industry for that organization

what

might be the inputs what might be the

outputs and what may stand as the

processing

just think of some examples

now here again

uh it refers to

the set of interrelated functions

there has to have interrelation

of different functions to achieve the

objectives that's the main thing again

with

optimum utilization of resources and

it's essentially we have seen this in

the beginning essentially due to the

complexity of the forms and

need of the digitization this we have

discussed in the beginning

now next to that every manager is put up

here on the left side of the screen

to be very precise about what

about basically decision making

and the information flow nowadays in the

digital world information flow has again

a

vital role

so what is happening in the industry

that you try to imagine

basically

decisions are being taken by the

management and information is flowing

from one place to other place one point

to other point in organization

then

subsidiary systems

means in a system again you can have

different subsystems

and

these subsystems you have to have

ultimately while reaching to was

objectives

with

efficient and effective ways of doing

work

so this is what is happening i'm trying

to tell you what exactly might include

in input output and

processing that is talking specifically

here what might be resources what

might mean in functions and what

might be the part of objectives here in

systems approach

to the management now this particular

figure

would clear the things a little

in a better way

now here

input we have said

now the general systems approach that

part of the figure is omitted here input

processing and output

now specifically here for management

input means different resources what are

these resources

they are like

man machine material money methods

markets information

legal aspects

government rules regulations what not so

many things

as

input as resources as a resource inputs

we can have in

management

now in processing

we have management functions or

managerial functions functions carried

out by the managers what are those

functions

planning

organizing staffing directing control

motivation forecasting what not so many

functions

are being carried out by

management people resolve functions we

have discussed in detail in earlier

slides

uh like just to brief again planning

means for example in manufacturing

industry

we need to have manpower planning

and there uh

maybe even production planning we need

to have

uh if you take automobile example for

example say then how many models you

have and each model in different time

periods say months if we take how many

quantities you need is a very gross

aspect of a planet

organization level which normally is

called as a master production schedule

same thing cut down at a shop floor

level you can call the load chart which

is going to type of a plan

when you talk about a particular job and

its particular operation on a particular

machine so at a very micro level you

talk at that

then organization you have a structure

as a

the basic framework for the execution of

managerial functions

orders to be followed in sequence

you need certain organization structures

with the

authorities and

responsibilities being

defined very clearly

then staffing you know like

how many graduate engineer training you

need as freshers

like you know some industries recruit

hundreds of people at as a phrase

graduate so thousands also some

industries recruit

now these organizations need to really

evaluate

how many people really they need

that's understaffing their training

their

appraisal reports so many things are

there in staffing

then directing

controlling

you plant something but

are the things really going as per the

plan or not

that also one has to look into

properly and control function comes in

now these are all functions being

carried out is a part of managerial

functions which is the middle part of a

systems concept that is uh processing

so processing here it means these

functions

and

what are the output or the objectives or

the end of it in resource is

you have some goods and or

services so for manufacturing industries

you can have goods and services for

service industries you

may not have goods but you can have only

services so these are in all we have

the systems approach and again the

systems may be closed loop systems

wherein you can take a feedback from

the output and

connect it to the input side that is in

reality uh take the feedback on the

outputs and have the remedial actions

right there if possible if not in

upcoming your tenure the planning period

you can have the corrective

actions here i refer these five books

and beyond this you can refer internet

also lots of things are available there

also

thank you everybody thank you