MODERN (SYSTEM) VIEWPOINT-4

As a part of our talk on Organizational design, development and change today we continue our discussion on modern view point which is also important function for any Organizations. While the classical theorists recognized only a closed system viewpoint, the modern theorists believe in organizations as open systems. The work of D. Katz and R L Kahn provided the intellectual basis to merge classical, neoclassical and modern viewpoints.

 

This belief in viewing organizations as open systems widened the perspective further and led to the development of a “contingency approach” to the study of organizations. The contingency approach incorporates the environmental variables and relates them to management variables. The underlying logic is that concepts relating to organizations and management work differently in different situations (or environments). Jay Galbraith’s modern structural organization theory highlights the information processing model and captures the essence of the systems/contingency perspective on organizations. He constructs theories about the amount of information an organization must process under different levels of (a) uncertainties, (b) interdependence among organizational elements, and (c) organizational adaptation mechanisms. Over the years thus, fresh perspectives are emerging providing new vistas and opportunities to understand organizations better. There is as yet no single verified universally valid general theory of organization as such.

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