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All the employees would certainly desire to achieve it under all circumstances. According to it, the managers should take decisions not according to principles but according to the situations. The following analysis examines the organizational approach to management that I work for. Major contributors in this field are L. V Bertalanffy, C. I. Bernard, H. A. Simon, R. A.Johnson, F. E. Kast, K. Boulding, and others. The dividing line in a closed system is rigid while in respect of open system, it is flexible. Again, ‘earth’ is a whole system of which our country ‘India’ is a part. This is a system that remains unaffected by the environmental factors. Real accounts, personal accounts & nominal accounts are the traditional approach of recording transactions but there is another approach of classification of accounts which involves recording of transactions on the basis of increase/decrease in the assets, liabilities, capital, expenses and revenues and that approach is known as the modern approach of accounting. Managers should not ignore the importance of taking actions according to the needs of the situations. It is the responsibility of management to analyse the contingencies or conditions peculiar to each situation and then choose the right approach to deal with it. Then and only then the objective of the organization can be achieved. This is totally well informed. Modern management experts consider an organisation as an open system. This approach believes that the management’s main job is decision-making and organization is a decision-making unit. Suppose there are five persons in a group. Then they walk out of the organisation in the form of output and once again mingle with the environment. A rationale for the: (i) emergence of HRS, (ii) the value of HRS, (iii) some discussion of differing approaches to HRS, (iv) some discussion of HRS strategy types (hard v soft), (v) the concept of fit and other issues which you wish to include based on your reading, (vi) including your conclusion, with your definition of HRS. An open system means a system which remains constantly in touch with its environment and is influenced by it. After analysing the various alternatives, a rational decision has to be taken. The system approach has failed to establish a relationship between the organization and environment. As a result, the contribution of whole organisation is greater than the aggregate of individual contribution of its sub-systems. The reason is that there is a restoring the in inputs in this process. Finding the solution to the problem at hand; v. Establishing controls over the solution; vi. viii. Constant change 10 All these factors are subject to change that is why the environment of an organization is called dynamic. Organizational efficiency depends on the quality of managerial decisions. Management tries to identify such factors and reasons. When managers take any decision regarding any one particular factor, they have to take into consideration the effect it will have on the other factors. The chief reason for it is that the managers have to face problems one after the other and they have to take decision to solve those problems. Capital is the amount invested by the owners into their business. (3) Use of Quantitative Methods not Possible: There are many occasions when the use of Quantitative Methods is not possible. It may also be considered as common sense approach. 4. Generally, an event may be the result of so many variables. Therefore a change in one part has an impact on other parts according to the nature of relationship. In order to define the term management theory and to critically evaluate classical and human approaches it is also important to discuss what shaped the thinking of management theory development. The following are the chief characteristics of the System Approach: Every system happens to be a combination of many sub-systems. Within the organisation, they are converted into products through the process of various activities. The parts and sub-parts of a system have mutual relationship with each other. The following are the main features of the contingency approach: 1. In such situations a manager makes use of his knowledge and experience rather than some formulae. Managerial policies and practices to be effective, if they adjust to changes in environment. This transformation has three processes. Skill is not necessarily a born quality. Within 1960-1980,the planning approach from the business historian Chandler(1962), and the organizations like , consulting group Mc Kinsey and BCG has significantly reflected in the definition of Chandler (1962). It clearly means that a decision taken with regard to a particular sub-system does influence or affect the other sub-systems. Lorsch and P.R. It is also decided as to who will report to whom. (3) This approach lays stress on taking rational decisions. The quantitative approach was propounded by C. W Churchman and his colleagues around the year 1950. Major contributors in this field are H. Simon, C. Barnard, K. Arrow, Newmann, Leontieff, and others. ORGANIZATIONAL MANAGEMENT APPROACH ANALYSIS 2 Linear programming, game theory, queuing theory, sim­ulation, etc., are often used for making rational decisions.   But, at the same time, due weightage has to be given to the environmental factors affecting the management of an organisation. At this time, they happen to be in the form of goods, services and satisfaction. Structure makes it possible to establish coordination among the people in the organisation. The help of a computer is usually taken in order to make use of the above mentioned techniques. System Approach III. 1. Likewise, no problem is analysed in isolation. For example, There is a pay cut for an unauthorised absent. iv. The first approach is the traditional approach of accounting and the second one is the modern approach. Decision becomes absolutely necessary when there are many alternatives available to solve a particular problem. On Chandler (1962) formed a formal approach, Critically evaluate the classical and human relations approaches of management theory.

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