System Approach

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