UNIT 3 SCHOOLS OF MANAGEMENT
THOUGHTS- II
LESSON 7 THE SOCIAL SYSTEM SCHOOL
LESSON 8 DECISION THEORY SCHOOL
LESSON 9 THE SYSTEMS SCHOOL
,LESSON 7 THE SOCIAL SYSTEM SCHOOL
TABLE OF CONTENTS:
7.0 OBJECTIVES
7.1 CONCEPT AND PHILOSOPHY
7.2 FEATURES
7.3 MAIN CONTRIBUTORS AND THINKERS
7.3.1 MAX WEBER
7.3.2 ABRAHAM MASLOW
7.4 USES AND LIMITATIONS
7.5 SUMMARY
7.6 REFERENCES
7.7 GLOSSARY
, BBM 105 Unit 3, Lesson 7
LESSON 7 THE SOCIAL SYSTEM SCHOOL
In this unit and in the next two units we will study the schools of management
thoughts. In this lesson we will discuss the Social System School which is based on
empirical approach and emphasizes on the fact that the organization is a social
system. Many management thinkers have contributed to this school of management
thought.
7.0 Objectives
On completing this lesson you would understand the following:
Concept and Philosophy
Features of this school
Contributors to this approach
Uses and limitations
7.1 Concept and Philosophy
This school has been developed by researchers who regard management as
a social system. This school is based on system analysis and chiefly relies on
empirical approach. It identifies the nature of cultural relationships of various social
groups and attempts to show them as related, and usually, as an integrated system.
This school of management thought is closely related to human behavior school.
Chester I Bernard is regarded to be the Founder of this school. He studied
the entire relationship within the organization. His concept of “Formal Organization”
is regarded to be the major contribution to the fields of management. He visualizes
the concept of co-operative system. According to Barnard, people come together in
formal organizations to achieve ends they cannot accomplish working alone. But as
they pursue the organization's goals, they must also satisfy their individual needs.
Thus Barnard arrived at his central thesis: An enterprise can operate efficiently and
survive only when the organization’s goals are kept in balance with the aims and
needs of the individuals working for it.
For example, to meet their personal goals within the confines of the formal
organization, people come together in informal groups such as cliques. To ensure its
survival, the firm must use these informal groups effectively, even if they sometimes
work at purposes that run counter to management’s objectives. Barnard's recognition
of the importance and universality of this "informal organization" was a major
contribution to management thought.
65
THOUGHTS- II
LESSON 7 THE SOCIAL SYSTEM SCHOOL
LESSON 8 DECISION THEORY SCHOOL
LESSON 9 THE SYSTEMS SCHOOL
,LESSON 7 THE SOCIAL SYSTEM SCHOOL
TABLE OF CONTENTS:
7.0 OBJECTIVES
7.1 CONCEPT AND PHILOSOPHY
7.2 FEATURES
7.3 MAIN CONTRIBUTORS AND THINKERS
7.3.1 MAX WEBER
7.3.2 ABRAHAM MASLOW
7.4 USES AND LIMITATIONS
7.5 SUMMARY
7.6 REFERENCES
7.7 GLOSSARY
, BBM 105 Unit 3, Lesson 7
LESSON 7 THE SOCIAL SYSTEM SCHOOL
In this unit and in the next two units we will study the schools of management
thoughts. In this lesson we will discuss the Social System School which is based on
empirical approach and emphasizes on the fact that the organization is a social
system. Many management thinkers have contributed to this school of management
thought.
7.0 Objectives
On completing this lesson you would understand the following:
Concept and Philosophy
Features of this school
Contributors to this approach
Uses and limitations
7.1 Concept and Philosophy
This school has been developed by researchers who regard management as
a social system. This school is based on system analysis and chiefly relies on
empirical approach. It identifies the nature of cultural relationships of various social
groups and attempts to show them as related, and usually, as an integrated system.
This school of management thought is closely related to human behavior school.
Chester I Bernard is regarded to be the Founder of this school. He studied
the entire relationship within the organization. His concept of “Formal Organization”
is regarded to be the major contribution to the fields of management. He visualizes
the concept of co-operative system. According to Barnard, people come together in
formal organizations to achieve ends they cannot accomplish working alone. But as
they pursue the organization's goals, they must also satisfy their individual needs.
Thus Barnard arrived at his central thesis: An enterprise can operate efficiently and
survive only when the organization’s goals are kept in balance with the aims and
needs of the individuals working for it.
For example, to meet their personal goals within the confines of the formal
organization, people come together in informal groups such as cliques. To ensure its
survival, the firm must use these informal groups effectively, even if they sometimes
work at purposes that run counter to management’s objectives. Barnard's recognition
of the importance and universality of this "informal organization" was a major
contribution to management thought.
65
