Industrial Management

1. System Approach and
Contingency Approach
Presented by,
Ambarish Biswas (EEE120200188)
Md. Aktaruzzaman (EEE120100169)
Farhad Hossain (EEE120100180)
Salman Bin Muzib (CSE 100200619)

2. System
• A system is a set of interrelated but
separate parts working towards a common
purpose.
• The arrangement must be orderly and
there must be proper communication
facilitating interaction between the
elements and finally this interaction should
lead to achieve a common goal.

3. System Approach
• System approach to management views
the organization as a unified, purposeful
system composed of interrelated parts.
• This approach also gives the manager to
see the organization as a whole and as a
part of the larger external environment.

4. Contd…
• System oriented manager would make
decisions only after they have identified
impact of these decisions on all other
departments and the entire organization.
• They must intertwine their department with
the total organization and communicate
with all other departments, employees and
with each other.

5. Example
Production
Department
Marketing
Department
Human
Resource
Department
Finance
Department

6. Key Concepts
Subsystem
Feedback
FlowsSystem
Boundary
Closed
System
Synergy
Open
System

7. Managerial
Knowledge, Goals,
Inputs
Planning
Organizing
Staffing
Leading
Controlling
Output
R
E
E
N
G
I
N
E
E
R
I
N
G
C
O
M
M
U
N
I
C
A
T
I
O
N
External Environment
External Environment
External
Environment:
Opportunities
Threats

8. Characteristics
• Systems have structure, defined by parts and their
composition;
• Systems have behavior, which involves inputs,
processing and outputs of material, energy or
information;
• Systems have interconnectivity : the various parts of
a system have functional as well as structural
relationships between each other.
• System(s) have by itself function(s) or group
of functions .

9. Features of System approach
Features
Dynamic
Social
System
Open
system
AdaptiveMultivariabl
e
Integrated
Interdepen
dent

10. Advantages
• It aims at meaningful analysis of
organizations and their management.
• It facilitates the interaction between
organization and its environment.
• It guide manager to avoid analyzing
problems in isolation and to develop an
integrated approach.

11. Disadvantages
• The approach does not recognize the
differences in systems.
• Over-conceptual
• Systems philosophy does not specify the
nature of interactions and
interdependencies.
• Unpractical: It cannot be easily and directly
applied to practical problems.
• Lack of Universality
• Complex System

12. CONTINGENCY APPRAOACH

13. Contingency approach states that there is “no
one best way” to manage an organisation.
It is also known as situational approach.

14. • In 1970s, it is recognized as a key to effective
management.
• CONTRIBUTORS:
 L.W. Lorsch
 Joan Woodward
 Burns
 George Stalker
 Paul R.Lawrence

15. What you do “depends” on the
“situation”.
-internal contingency factors
-external contingency factors

16. Internal Contingency Factors
Tasks
Technology
People
Purpose Structure

17. External Contingency Factors
Socio-cultural
Factors
Economic
Factors
Technological
Factors
Legal
/Political
Factors

18. General Environment of Coca Cola
Socio cultural
•Concerns about health
•Easier access to refrigeration
•Baby boomers drinking less
•Immigrants drink less
•Concerns about recycling
•Increased acceptance in China
and India
Government
•Increased health standards
for bottling
•Stricter liability legislation
Economic
•Slow economic growth
•Prospect of economic recovery
Technological
•New recycle friendly canning tech.
•New promotional opportunities
via the internet
•Threat of substitute drinks
Coca Cola

19. Instead of propagating universally applicable
organisation-management principles, this
theory tries to demonstrate that different
circumstances require different organisational
structures
What works for one organisation may not work
for the other.
Managers need to understand the key
contingencies that effect the management
practice for a given situation.

20.  Difficulty in determining all relevant
contingency factors and showing relationship
between them may be complex.
 It is totally practical approach without support of
theoretical and conceptual frame work.
 Sometimes manager finds difficulties in
analyzing the situation and discovering
appropriate management technique in absence of
proper research and lack of proper understanding
of the situation.
Limitations of Contingency Approach:

21. Questions:
1.What is system approach? Give example and write the
key concepts of system approach.
2.Write the block diagram of system approach external
environment and features of system approach.
3.What is contingency approach? Write the internal and
external contingency factors.
4.Discribe the external contingency factors of general
environment of Coca Cola.

22. True-False:
1.Feedback is a part of key concept of system approach. T
2.External contingency factors are to types. F
3.Technological factor is a part of external contingency factor. T

23. THANK YOU