Systems approach is consisted of two types of system, the closed and open systems. Closed systems have relatively little interaction with the environment. (Heil 2015) The Closed-system approach conceives the organization as a system of mechanical, technology, equipment and materials; that tends to exclude competitors, suppliers, distributors and government regulators. The Closed system approach allows the managers to analyze problems by examining the internal structure of the organization with little consideration of the external environment. (Heil 2015). Example, the watch is a closed system. The watch is relatively a self-contained and self-maintaining unit that has little interactions with its environment. (Heil 2015) In contrast, Open systems is dynamically interact with their environment. In Open Systems approach, the organization is considered as an entity that takes in inputs (resources) from the environment, transforms them or processes these resources into output that are distributed into the environment.
http://www.slideshare.net/artinsane/systems-approach-to-management Organization systems function with the same concept as biological systems; different part of the human body play different roles. Different parts do not have the same functions. Internally, organization systems in an organization can be affected by many interdependent factors, such as individuals, groups, motivation, attitudes, goals and authority. (Robbins and Coulter 2007). For example, no matter how efficient is the production department, if the marketing department don’t anticipate changes in customer tastes, then the company cannot innovate the products. Without the input of information and innovation, the particular company cannot fight with the other competitor in the market. In the end, the company cannot excel at its performance. Externally, organization cannot sustain for long if it ignores government regulations, or the relations with any external parties that it depends. (Robbins and Coulter 2007) That’s why essential relationships between organization and its environment are important in businesses.
In contingency approach, management is not based on simplistic principles. It is the methods of managing “depends on the situation”. Different situations will require managers to use different approaches and techniques. (Robbins and Coulter 2007) There are no simplistic rules for managers to follow in this approach. For example, a company CEO is been thrown with the difficult provocative questions by a journalist. He was not happy with that and he actually wanted to avoid the questions, as every answer that he is giving in the media interview session is considered as crucial. In this type of situation, the CEO may either want to choose to bridge the questions or just tell the truths. There is no exact right and wrong answers for the questions. But in the end, the CEO has to take up the responsibility to bear the consequences from his answers in the interview, as he is the person who represents the company.
Ethics refers to the principles and rules that define the right and wrong conduct. Managers face dilemma sometimes when they have to handle and make decisions. They cannot make decisions merely based on their feelings, and actually it is quite complicating when comes to managerial ethics. Here are four main perspectives of ethics: Utilitarian view, right view, theory of justice view, and Universal view. (Robbins and Coulter 2007) The first view is the Utilitarian theory. Utilitarian theory makes ethical decision based on quantitative method, whereby that it wants to provide the greatest good for the greatest number. It makes decision by considering at the best consequences. (Robbins and Coulter 2007) For example, currently there are a lot of nurses resigned from Hospital Sumatera. Many wards in Hospital Sumatera become lacks of nurses, and ENT ward suffers the most from the event. ENT ward manager had written many emails and requested for nurses, but it is not easy for Human Resource manager to recruit a staff in a short time.
In this case, Director of Nursing decides to transfer one of the nurses from Cardiac Ward to ENT ward, although the particular nurse whom is going to ENT ward is reluctant to follow the order. Cardiac Ward nurses are not really happy with it either. In this Utilitarian theory, the action and decision made by the Director of Nursing is considered as morally right because it can create the greatest balance of benefits over harm for everyone involved. The Director of Nursing thinks for the benefits of the patients and nurses in another ward. Utilitarianism only wants to produce maximum benefits for every party. Second ethical perspective is the rights view of ethics. This view concentrates on the fundamental rights of all human beings. Every human being has the fundamental right to be treated as a free and equal person that can make his or her own decisions. (Manuel Velasquez 2014) Examples of the individual rights include: right to privacy, free speech, freedom of conscience, life and safety, etc. (Robbins and Coulter 2007).
Take for example, foreign construction workers in Malaysia have the rights to be protected and received the equal treatment as the other local workers. The company and engineers need to brief them with the workplace safety rules before they start to work, because the foreign workers have the rights for their life and safety. Besides that, free medical treatment and shift duty allowances must be paid to these immigrant workers. It is the responsibility of the employer to take care of the staffs. Third is the justice view of ethics. This view implies that all people are entitled to equal access to products and service, regardless of their age, sex, race, socio-economic status, religion, education level, culture, lifestyle, disability, and ethnicity. It is the responsibility and commitment of the organizations to provide equal and fair treatment to all clients.
As a result, organizations have to develop rules and procedures for distributing goods and services and adjudicating claims in a fair manner. (Robbins and Coulter 2007) The manager who manages the department by using this justice view of justice will keen to treat the staffs fairly. For example, the manager rates his/her staffs fairly based on the performance. He/she shall not rate and pay the staffs based on arbitrary differences such as gender, race or personal preferences. And last is the Universal approach. Universal approach will choose the course of action that applies to all people under all situations. According to Benn Goertzel, Universal ethics exists because compassion exists. The ethic of compassion is a natural and inevitable part of the universe. (Goertzel 2004) These ethical standards are seemed to apply to all people throughout the nations. Take for example, killing and stealing is a crime.
Most of the people do not agree with aggression acts. There are obvious reasons why universal ethics are beneficiary to society, and everyone agree with it. If people are allowed to kill people, then this would encourage and lead to widespread violence, and it is detrimental to the well- being of society. (Goertzel 2004) Similarly in management, managers aware and apply the Universal Code of ethics in their daily works. For example the company that produces industrial waste.
The managers need to decide and think of the precautions to take, in order to avoid harm to local communities and ecosystem. They cannot simply dispose the waste materials, but to abide to the government rules. But among all, most peoples follow the utilitarian approach, because it is more consistent with the business goals. They want the business to be more efficient and productive. However, it is still not an easy task when comes to managerial ethics. In fact, managers are increasingly finding themselves struggling for the right things to do. (Robbins and Coulter 2007)