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CMA Foundation · Fundamentals of Business Economics and Management · Introduction to Management

At a Pune manufacturing unit, a manager realises that the factory, its suppliers, customers, finance and workers are all interdependent, and that a change in the purchasing department affects production and sales. Which approach to management does this view reflect?

This reflects the systems approach. It views the organisation as a collection of interrelated and interdependent subsystems that interact with their environment, so a change in one department, such as purchasing, affects others like production and sales. The other approaches focus on tasks, rules or principles instead.

  1. ASystems approachCorrect
  2. BScientific management approach
  3. CBureaucratic approach
  4. DAdministrative principles approach

Explanation

The systems approach sees an organisation as a set of interrelated parts working together and interacting with the environment. Scientific management concentrates on task efficiency, bureaucracy on rules and hierarchy, and administrative theory on universal principles of management, none of which stress interdependence.

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