The Systems Approach and Decision Making of Organization

Success mainly depends on the systems approach and decision making. Normally decisions cannot be made in an environment of a closed system.

As it has already been said, many factors of the environment of planning exist outside the enterprise. besides each department or section of an enterprise is a system of the total enterprise; the managers of these organizational units must be responsive to the polices and programmers to other organizational units and of the entire enterprise.

Moreover, people working in the enterprise are a part of the social system. Their thoughts and attitudes must be given due consideration by a manager as and when he takes a decision.

Systems Approach and Decision Making

Even when managers work with a closed-system model like the operations research decision models, they do so simply to have a workable program to solve. But in that case, too, they work with certain assumptions about environmental forces, which very significantly influence their decision. They tend to change the construction of their model according to the exigencies and circumstances beyond its boundaries.

When it is said that managers take into account the various factors or elements in the system environment of their problem, it does not mean that they abdicate their role as decision-makers.

Decisions are to be made and someone must decide upon a course of action from among alternatives, taking into account events and forces prevailing in the environment of a decision. In brief, decisions must be made recognizing the fact the organizations are open systems, interacting with the environment.

Decisions must be made recognizing the fact that organizations are open systems, interact with the environment.

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