Thursday, August 9, 2012

Contributions and limitations of system theory of management


Contributions
1.       Holistic and integrated view: - System theory makes holistic and integrated view. It helps manager to whole organization.
2.       Integrated thinking: - Manager must make integrated thinking of organization. Instead of thinking separate activities, a manager can think as a while and make plan.
3.       Interrelated and interdependent: - Subsystems are interrelated and interdependent. Manager can better understand how a disturbance in one part of organization affects other part of organization and how the whole organization is affected.

Limitations
1.       The theory doesn’t offer specific tools and technique for practicing managers.
2.       System theory is criticized as being too abstract and vague, so it cannot be applied into practical problems.
3. It fails to specify the nature of interaction and interdependence between and organization and its environment.

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