System approach of organizational design

System approach of organizational design

There are various implications of systems approach in the management including organizational design. Systems approach of modern organizations theory has suggested three aspects relevant to design of organization structure. These are modern organizations, lateral relationship, and cybernetics.

Modern organization models: System approach of organizational design recognizes the problems involved in managing large and complex organizations. Therefore, it has replaced the simpler classical and neoclassical models because they have been too inadequate to solve the problems of today's organizations. The approach recognizes the need for flexibility and adaptability of organization that task forces etc. the basic value of these organizations structure that they are able to cope up with environmental dynamics very easily.

Lateral relationships: system approach suggests emphasis on lateral relationship among people in the organization. This emphasis is in contrast to vertical relationship emphasised by the classical theory and horizontal relationship emphasized by the neoclassical theory. While both these relationships are important for the organizational functioning, lateral relationships achieve coordination more effectively by eliminating the hierarchical control. In modern organizational designs people are not exactly placed in superior subordinate relationship and therefore exercise of authority for controlling behaviour is not effective. Organizational processes in such cases are quite different which will be discussed along with forms of modern organization structures.

Cybernetics: cybernetics is an aspect of systems theory. Cybernetics is an important concept for the control function. The world 'cybernetics' stems for the Greek cybernetics' or helmsman and thus relates to the connotation direction of cybernetics involves communication and control. It is concerned with information flow in complex systems. Although cybernetics has been applied primarily to mechanistic engineering problems its model of feedback and regulation has significance for social systems also. In the organizational context it is interested in the problems of regulation and control in complex probabilistic self regulatory systems of the organization. Since it emphasizes regulation in complex system it has become a model for thinking in regard to the application of advanced information technology to the control of complex organization. This is why organizations using sophisticated management information systems adopt cybernetic model as an integral part of their model of operation.

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