engleski

Systems approach to management problems

Development of concepts of holistic solutions has long tradition in management of complex problems. In the period after World War II in various parts of the world appeared concepts that indicated growing complexity of business and social interdependence and aspired to integrated approach to solving problems. This approach was soon adapted by the system-oriented management that used principle of open systems in the study of business entities. Since business entities can also be regarded as systems, they are observed as separate set with specific goal and interconnected elements. Generally accepted definition is that business entity is a well known system of converting resources. Taking into account the temporal and situational elements, company process the resources, i.e. inputs (labor, ideas, capital, raw materials) into outputs (products, services, etc.) whose value is larger than total resource value, i.e. inputs necessary for their production, in the eyes of a group environment with which business entities cooperate. The fact that implies complexity is that in business entities observed as systems there are elements that are interconnected, where complexity can be defined with two components: structural and functional. Business entities and their environment are regulated units that operate and interact, while their relationships and positions subordinate their activity to numerous requests. Complexity of business entities and environment requires a systematic managerial approach because managing issues also becomes complex in structural and functional sense and their perception and understanding requires connections in temporal and contextual dimension. In so doing, the managing issue is manifested as issue of asking right questions because it is pointless to seek answers to badly formed questions. The mistake that most commonly occurs in management problems is the attitude how to manage existing business system with known managerial methods. During design of future business activity it is difficult to accept attitude that it will have same or similar decision-making structure, relations of functions etc. The aim of this paper is to show how straight thinking in management philosophy as well as its extensions of the present appear as wrong assumption. Therefore systems approach is proposed as alternative management approach.

company; management; complexity; systems approach

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