Elite Electric Company

SYSTEM APPROACH

Treating an organization as a system is critically important to its success.

The fundamental elements of system approach include:

1. There are many variables within a system.

2. The parts of a system are interdependent.

3. There are many subsystems contained within larger systems.

4. Systems generally require inputs, engage in some process, and produce output.

5. The input-process-output mechanism is cyclical and self-sustaining.

6. Systems produce both positive and negative results.

7. Systems produce both intended and unintended consequences.

8. The consequences of systems may be short-term, long-term, or both.

Holistic organization behavior interprets people– organization relationships in terms of the whole person, whole group, whole organization, and whole social system. It takes an across-the board view of people in organizations in an effort to understand as many of the factors as possible that influence people’s behavior.

A systems viewpoint should be the concern of every person in an organization. The clerk at a service counter, the machinist, and the manager all work with people and thereby influence the behavioral quality of life in an organization and the organization’s outputs. Managers, however, tend to have a larger responsibility, because they are the ones who make more of the decisions affecting human issues, and most of their daily activities are people-related.

However, negatives effects as well as positive effects sometimes result from the behavioral actions of managers. It is necessary to make a cost-benefit analysis to determine whether potential actions will have a net positive or net negative effect.

These costs can include work slowdowns, higher absenteeism rates, or other consequences of work dissatisfaction. The process of creating a cost-benefit analysis also forces managers to look beyond the immediate implications of their actions.

Limitations of Organizational Behavior

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