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CSEET · Business Laws and Management · Principles of Management and Modern Approaches

Consider the statements about the systems approach to management. Statement I: An organisation is viewed as a set of interrelated parts working together towards common goals. Statement II: An organisation is treated as a closed unit that is unaffected by its environment. Which is correct?

Only Statement I is correct. The systems approach treats an organisation as interrelated parts working towards common goals, and as an open system that interacts with its environment. Calling it a closed unit unaffected by the environment is incorrect.

  1. ABoth I and II are correct
  2. BOnly I is correctCorrect
  3. COnly II is correct
  4. DNeither I nor II is correct

Explanation

The systems approach sees the organisation as interdependent subsystems that interact with the external environment, so it is an open system. Statement II is therefore wrong, as it describes a closed system.

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