Systems Approach
Modern organization theory is a sophisticated and scientific way of explanting a complex organization. This theory is comparatively systematic and highly constructive. It is not an instantaneous or overnight development but it is a composite representation of various contributions from different disciplines for more than two decades. Modern organization theory can be understood in two approaches though both of them are interrelated. These are systems approach and contingency approach. Before the emergence of contingency approach in management systems approach was treated to be the modern approach. Many of the writers have treated modern organization and systems approach of organizational designs as synonymous e.g. Scott observes that: "the distinctive qualities of modern organization theory are its conceptual analytical base its reliance or empirical research data and above all its integrative nature. These qualities are framed in a philosophy which accepts that the only meaningful way to study organization is to study it as a system". Modern organization theory as a systems approach is an integrative one which considers the organization in its totality. The study of a system must rely on a method of analysis involving the simultaneous variations of mutually dependent variables. This is what systems approach of organization theory offers. Here we are presenting the relevant aspects of systems approach for organizational design. These are subsystems in the organization and their linking and structural arrangement.