Modern theory, also called systems analysis of organizations developed largely since the 1950s. It has its own peculiar point of view. It considers all elements, the whole organization as well as its component parts. It views an organization as an adaptive system. If it is to survive, it must adjust to changes in the environment.
Modern theory views the organization and its environment as inter-dependent. Each depends on the other for resources. Modern theory with its emphasis on synthesis and design provides the overall view of organization unlike the earlier classical and neo-classical theories. The earlier theories concentrated on the internal formal structure and technology. They assumed that machinery, material and work process was the only important variables. They further assumed that the human or social system remained constant.
The human relations movement, of course, took a system’s point of view, but “it restricted its perspective to social-psychological variable, leaving aside question of structure, technology and organization interaction” The systems analysis or modern theory avoids this weakness and deals interactively with the problem of full describing and explaining organizational phenomena. Perhaps the most evident feature of the systems analyses is the effort to look at organization in its totality. The representative writings in this field are: “Organizations” by March Simon, and “Modern Organization Theory” by Haire Norbert Wiener pioneered in the field of Cybernetics, gave the firsts clear view on an organization as a system consisting generally of inputs, process, outputs, feedback and environment as shown here.
Hicks and Gullet mention the following important characteristics of modern theory; dynamic, multi-level and multi-dimensional, multi-motivated, probabilistic, multi-disciplinary, descriptive, multi-variable and adaptive.
Nigro and Nigro say that systems frame-work start with the proposition that all social organizations share certain characteristics. They explain, as below, most important ones.
1.
Organization, as open systems, constantly seek and import resources
(inputs) in both human and material form, and ‘transform these inputs into
products and services, using internal social and the technological processes.
2.
Organizations, as open systems, export
their products to the external environment and these output usually become the
input of other organizations.
3. Organization structures develop around patterned activities that form stable and predictable input through input and output cycles.
4.
Over time, structural differentiation and task specialization are common system
responses to the search for resources and adaptiveness and as the organization
becomes more complex, managerial structures for co-ordination and control
became more elaborate.
5Feedback in the form of information about environmental responses to organizational activities (outputs), is used to keep the system on course with regard to its goals and to evaluate the performance of the organization and its sub-units.
5Feedback in the form of information about environmental responses to organizational activities (outputs), is used to keep the system on course with regard to its goals and to evaluate the performance of the organization and its sub-units.
6.
Organizations, as systems, seek equilibrium “or a stable state, both internally
and in relation to top external forces and they
achieve equilibrium through a constant process of adaptation to their environment.
achieve equilibrium through a constant process of adaptation to their environment.
Organization
as a system, is dependent upon the effective functioning of its parts called
sub-systems. Each sub-system performs a series of needed activities. In any
large and complex organization these activities are usually attached to
specialized units as for example personnel, sales, research, but they are
essential to the organization and may not necessarily be centralized. Mainly
the sub-systems of an organization are;
1. Production or technical sub-systems: This is called operations or technical core. These
are the human and mechanical
processes. They transform inputs into the primary outputs of the organization.
processes. They transform inputs into the primary outputs of the organization.
2.
Supportive sub-systems: These are of
two types:
(i)
which procure raw materials and dispose of outputs like purchases, sales etc.
(ii)
which specialize in the development of supportive relationships with external
sectors for example research, advertising and public relations.
3. Maintenance sub-subsystems: These ensure the necessary inputs of human skills, for example personnel functions of all kinds.
3. Maintenance sub-subsystems: These ensure the necessary inputs of human skills, for example personnel functions of all kinds.
4.
Adaptive sub-system: These help the organization anticipate and respond to changing
environmental conditions and demands, for example planning units, or
research and development units.
5Managerial Sub-system: This is called the administrative structure. This
co-ordinate and inter-relate the other subsystems, resolve conflicts between
units, allocate resources and relate external conditions to internal goods and
requirements.
THE
CYBERNETIC MODEL
Organizational
systems like social systems are considered to be cybernetic in their behaviour
with regard to the external environment. That means that “they are
self-steering, using feedback to guide and control their behaviour. They
develop mechanism to collect, interpret and apply feedback in their
decision-making processes so as to acquire the capacity to adapt, evaluate
performance and to correct errors.