The system and situation approach or perspectives are the two perspective which share related viewpoints on organisation and how they function.
The system at its most simple level, taken input from environment such as material input, human inputs, financial inputs and information inputs and then transform those inputs to the desire out puts such as product or services, employee behavior, profit or losses, additional information, environment or the organisation and for the interest of the organisation stakeholders. Then the feedback is included to show that outputs commonly have an effect upon the system, often by returning as an input. (Griffin and Moorhead, 2007)
If we see an organisation as a whole system, there are likely to be a number of sub-systems, each a separate entity but each forming an integral part of the whole. notably, the output from one sub-system are likely to form, inputs for another sub-system.
The system approach concentrates attention on the dynamics of the organization. It allows us to consider not just how the organisation functions in formal or informal terms, but how it react to and how change may affect it. The system perspective helps the organisation to better understanding of its environment and the important of the organization’s sub-systems.
The Situational Perspective is another perspective that use for how an organisation operate and could or should be managed. In the earlier days, the classical approach suggested one best form of structure and placed emphasis on general sets of principles that could be used in any organisation under any conditions but we all