A systematic approach to management is a way of thinking in relation to management and organization. It should not be confused with a set of different principles of action for the administrative apparatus. The first use of this management tool was noted in the late 50s, and served as a huge contribution to the scientific school of management.
The system is a certain integrity consisting of parts that are closely interconnected. Moreover, each part has its purpose and contribution to the general characteristics of the system. Any organization can be represented as a system. This can be either an open, interacting with the external environment, or a closed system that has fixed rigid restrictions and is not dependent on the environment.
Based on the presence of subsystems in these structures, from a scientific point of view, there are various schools of management. Thus, a behavioral school deals with the social subsystem, and a technical school deals with management using a scientific approach.
A systematic approach to management is very important when the organization model matches the type of open system. In other words, an organization can receive capital, information, materials and human resources from the external environment . All these components are called “inputs”. During the implementation of its activities, the organization must process these inputs, converting them into services or finished products, which will be its outputs.
With an effective management system during the conversion, the added value of inputs will be obtained, as well as profit, sales growth and the scope of the organization will expand.
The situational approach to management has had a huge impact on the theory of management through the use of scientific approaches to certain conditions and conditions. The basis of this approach lies directly with the situation itself, represented by a specific set of circumstances that may affect the organization’s activities at a certain time.
Using this approach, managers can more effectively determine which techniques to use to achieve the organization’s stated goal in each particular case. Like a systematic approach to management, a situational one cannot simply be a set of prescriptive instructions for senior management. This is a way of thinking for making organizational decisions.
Any system requires a certain coordination of aspects of economic activity. A systematic approach to management allows you to link together the tasks that arise when the organization achieves its strategic goals.
In other words, this approach deals with:
- development of the goals of the organization, bringing them to the attention of employees and receiving feedback;
- strategic planning;
- building a culture of organization;
- analysis of the market;
- business planning.
For a better understanding of the concept of "systematic approach to management" it is necessary to understand the term "organization". Among the various definitions, it is more expedient to choose the one that means the voluntary association of citizens to carry out a specific type of activity.
The central figure in any organization is its owner or leader. In other words, this is a person who has seen a new, unusual and original decision to satisfy human needs. To do this, he actively begins to act to implement the idea, spending his personal time, effort and money. It is from this moment that the process of creating a certain system called “organization” begins with its subsystems and other components.