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Interlinkage or assemblage of thingswhere parts and sub parts are

arranged in an order. Or it is a combination of things or

parts forming a complex unit.

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A system is a combination of partsand sub systems.

Parts and sub parts of a system aremutually related to each other.

Arrangement in a system is more

important. Prevalence of boundary.

Closed and open system.

System transforms inputs into

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Closed systems have no interactionwith environment

Closed system are self contained andself maintaining

Closed systems are mechanical

Closed systems are like closed loops Open systems have feedback

mechanism

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Management as a social system

Management as open system

Adaptive Dynamic

Probabilistic

Multi level and multidimensional

Multivariable

An integrated approach

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This approach is a value basedmanagement model that describes how

one can effectively organise acompany.

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Strategy

Structure

Systems Shared values

Skills

Style

staff

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Strategy:

What is our strategy?

How do we intend to achieve our objectives?

How do we deal with competitive pressure?

Structure:

How is the company/team divided? What is the hierarchy?

How do the various departments coordinateactivities?

How do the team members organize and align

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Style:

How participative is the management/leadershipstyle?

How effective is that leadership? Do employees/team members tend to be

competitive or cooperative?Staff:

What positions or specializations are representedwithin the team?

What positions need to be filled?

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Skills: What are the strongest skills represented

within the company/team?

Are there any skills gaps?

What is the company/team known for doingwell?

Do the current employees/team membershave the ability to do the job?

How are skills monitored and assessed?

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The model is based on the theory that,for an organization to perform well,these seven elements need to be

aligned and mutually reinforcing the model can be used to understandhow the organizational elements areinterrelated,

We can use the 7S model to helpanalyze the current situation (Point A),a proposed future situation (Point B)and to identify gaps and inconsistencies

between them

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FEL is engaged in the manufacturing of farm equipments. Itmarkets the equipment through a network of distributors. Italso exports its equipments and the chairman of the co. isalso satisfied with the performance. One day in a meeting all

the distributors urged the chairman to introduce some newmodels to satisfy changing demands of the customers. Thechairman however suggested that introduction of new modelswould require heavy investment in R and D. further anychanges would also be costly. His argument was the

company has been quite successful even with a limitednumber of models. So he emphasised more on the cutting inthe cost of production of the existing models and reducingtheir prices. With this argument chairman decided not tointoduce new models but insisted to cut the cost and price.

However he agreed to seek the opinion of a consultant totest the validity of the decision.

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Q1. it is said that to be successful anorganisation must be an open system.

What management implications doesthis statement has?

Q2. What suggestions will you give if

you were the consultant to FEL?