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and Jackson, M.C (1991) Critical Systems Thinking, Chichester: John Wiley REFERENCES The use of systemstheory of management in modern day organizations is essential for organizationefficiency and increase the profitability. But the management will need tocombine with contingency approach theory, as we know then organization can beaffected by both internal factor and external environments. So the use of contingencyapproach will allow the management to decide according to the prevailingexternal environment. Recommendations In conclusion,Systems Theory suggests an evolutionary explanation for the dominance of modernmanagement theories in contemporary organizations.
It also clarifies the roleof complex organisations in modern world; and predicts that the complexity oforganisations, and therefore the role of management, will probably continue toincrease proportionally with the increase of efficiency and complexity oforganization. Conclusion Recommendation is hereby made for organizations toadopt the systems approach to guarantee orderliness and constancy of operations Second, thestructured nature of the systems theory enables the organization to functioneffectively without much friction. Chains of command and lines of authority areclearly spelt out because of the inevitable subsisting relationships betweensubsystems. First, forcorporate growth and profitability, modern day organizations should managetheir organizations applying the systems theory of management. This is becauseof its bridging ability and interfacing strength in the classical and humanrelations approaches to managing organizations.
In the light ofthe analysis done at Tanzania international container terminal services (TICTS)with regards to this matter, the following recommendations are hereby made formodern day organizations and the business world in general on issues botheringon the adoption of the systems theory in management. SUMMARY But TICTS is not only limited to system model at timesis using contingency approach depending on the situations. And this flexibilitybetween adopting system approach and contingency approach gives more autonomyto employees. And has contributed to the recent success of TICTS and make it asleading service provider of terminal handling services at port of Dar essalaam.This is the section which interact with the customerand ensure that the service is properly delivered to customer and handling ofany complaint which has been raised by customers.
And they provide the feedbackto management and operations team. Also they are responsible to handle andensure there is a good working relationship between TICTS and other portsstakeholders such as SUMATRA, TAFFA etc.Commercial& Cooperate Affairs SectionThis serves as the process unit in the systemcomponent, as they are the ones who serves the vessel and handling of customerscargo while in port. Are the one who allows the customers to process theircargo to the final point and they work hand in hand with engineering unit whomensure that the equipment is available to facilitate the operations.OperationsSection & EngineeringThis section serves as the input in the Ticts system,as it interacts with customers and accept and forward all the booking andpayments, to allows the company to start processing the customers cargo. Forexample, they initiate the container movement by raising the invoices andissuance of permit which will enable the customer either to take his containerfrom port for import, and to bring the container to terminal for export andvice-versa. Then they forward it to operations section for execution andimplementation of customers request.
CustomerService & Billing SectionThe management of Tanzania international containerterminal services has been sub-dived into different departments as shown above,and each one department is dependant to another departments to functioneffectives. Tanzaniainternational container terminal services deals with handling of containervessels at the port of dar es salaam through the lease agreement between theHPH and Tanzania port Authority. It has been operational since 2000, and thecompany performance has been excelling since ever, one among of the reason istheir adoption to good management style which suits the industry needs. Andtheir preferred model of management is system model approach. This can be seendeep from the structure of the organization as shown belowAPPLICATIONOF SYSTEM MODEL APPROACH AT TANZANIA INTERNATIONAL CONTAINER TERMINAL SERVICES(TICTS)Like living systems, most organizations if not all,operate in constant interchange with their environment. They have many complexinteractions and interrelationships within their boundaries.
To survive,organizations must grow and achieve a dynamic equilibrium rather than simplyreturn to a steady state. It is for these reasons that general systems theoryhas come to be applied to the study of organizational phenomena such as designof management planning and control systems. i) Conceptualization:asystem is a concept whose form reflects the aims and values of the individualor group whose concept it is (Harry,1990)h) Environment:Thereare things which are not part of the system, which significantly affect it, butwhich the system can only marginally influence, called the environment of thesystem.g) Identity:Theproperties of a system that enable it to be identified and separated from otherthings which are not part of the system.f) Holismand emergent properties: A system is a whole which exhibitsproperty which only have meaning in terms of the interactive processes of itscomponents.e) Process:thechanges resulting from these interactions are called processesd) Interaction:Thecomponents affect each other by their presence in or removal from the systemwhich results from mutual interaction with the systems environment.c) Structure:Theform of this connection is fixed in an organized way called structure.
Theconcepts of structure and organization become more interesting in largesystems, where more than just one or two possible structures or organizationsmay be considered.b) Connection:Thesecomponents of a system are connected together to function as a single system oforganization.a) Components: Asystem consists of more than one part called component elements of a system. Acomponent refers to anything that is part of a system or sub-system. The termelement implies the smaller components that one would wish to identifyseparately. Organization of a system is the specification of relations betweenits elements.
Accordingto Harry (1990) the followingelements are indicators of a quality system;QUALITIES OF SYSTEM MODEL Closed system model is like open system but their onlymajor difference is the interaction with external environment and using thefeedback from the external environment to process the inputs.Re-energizingthe system; Itis worthy of note that in the systems model of management process, some of theoutputs become inputs again. Apparently, the satisfaction and new knowledge orskills of employees become important human inputs. Similarly, profits arereinvested in cash and capital goods, such as machinery, equipment, buildingsand inventory.External Environment; Asa component of the systems model, the external environment plays a key role inthe transformation of inputs into outputs. While it is true that organizationshave little or no power to change the external environment, they have noalternative but to respond to it.Output; Inputare secured and utilized by transformation through the managerial functionswith due consideration for external variables into outputs.
Outputs ofdifferent kinds vary with the organization. They usually include many of thefollowing; products, services, profits, satisfaction and integration of thegoals of various claimants to the organization.Process; In an organizational system, inputs are transformed inan effective and efficient manner into outputs. This can be viewed fromdifferent perspectives. Focus can be on such management functions as finance,production, personnel and marketing.
This is where the management function andexecution of work is done.Input; The composition of inputs from the externalenvironment may include people, capital, managerial skills as well as technicalknowledge of skills. It also includes the various claimants’ groups of peoplemaking demands on the organization; such as employees, consumers, suppliers,stockholders, federal, state and local governments.The above model explains how various managementfunctions are formed, function such as organizing, controlling, planning andleading etc. The model depends on the sub components of inputs, process, outputand external environment to operates as system.Source:Weihrich, et al (2008) Everyorganized enterprise does not exist in a vacuum. It is rather known to dependon its external environment which is a part of a larger system, such as theindustry to which it belongs, the economic system and the society (Weihrich, 2008). According to them, theorganization receives inputs, transforms them and exports the outputs to theenvironment as shown in the basic input-output model below;Organizational management systemsconsist of many internal subsystems that need to be continually aligned witheach other.
As companies grow, they develop more and more complex subsystemsthat must coordinate with each other in the process of transforming inputs tooutputs (McShanean,2003). Theseinterdependencies can easily become so complex that a minor event in onesubsystem may amplify into serious unintended consequences elsewhere in theorganization. SYSTEM MANAGEMENT APPROACH MODELThe systemtheory allows organization to interact with external environment, whenorganization is adopting to open system management model. As stipulated in the work ofLudwig von Bertillon (1973) recognized the need of any organization to interactwith its external environment, unlike what was proposed by classical schooltheorists like Max Weber, F. Tailor and Fayol who viewed organization as closedsystem.
To him, for survival of an organization like the way living organismsurvives, should operate in open system and not closed system.Over the years transcending downhistory, organizations have either adopted a management model or a combinationof models. Whichever model that is adopted, the survivability and maximizationof profit is often a key objective for any organization. The present-day organization isfaced with the challenges of adoption of a specific style of management in itsday to day operational decision making. These could be seen manifesting in avariation of several management philosophies that has evolved over the years.Theories exist that are drawn from the scientific management school, theclassical organization theory school, the behavioral school and the relationstheories.
Others are the management science school and some recent developmentsin management theory; the systems approach and the contingency approachrespectively. INTRODUCTION This paperis objectively geared at showing an understanding of what the systems theory isall about, its application in management, especially with modern dayorganizations. For this case Tanzania, International Container TerminalServices will be taken as a case on how it uses and implement the system theoryof management, and the possible set back involved. Thesystem school brings focus on the organization’s various functions and theimportance of ensuring that the different components function in a synergy thatensures that the overall outcome of the organization is up to expectations (Lewis, Stephen and Patricia, 1998)Aline of thought in the management field which stresses the interactive natureand interdependence of external and internal factors in an organization. Asystems approach is commonly used to valuate market elements which affect theprofitability of a business.
The Systems Approach, therefore,relies on all components, or sub-systems, to work in harmony and coordination toensure the success of the larger system. With respect to management, system simply refers to aset of different independent parts working together in interrelated manner toaccomplish a whole. It is with this essence that synergism appears. Forinstance, an organization is formed by different departments, sections, andunits composed of individuals and groups which are independent, but workingtogether to achieve a common goal with the aim of turning organizational visioninto reality.Flood and Jackson (1991) define a system as a complexand highly interlinked network of parts exhibiting synergistic properties thewhole is greater than the sum of its parts. It is a collection of interrelatedparts acting together to achieve some goal which exists in the environment.
Also, system is defined as a set of objects together with relationships betweenthe objects and between their attributes related to each other and to theenvironment so as to create or form a whole (Schoderbek , 1985). Further, Check land (1981) defines a system asa model of a whole entity, which may be applied to human activity. System approachThecontingency approach is a management theory that suggests the most appropriatestyle of management is dependent on the context of the situation and thatadopting a single, rigid style is inefficient in the long term. Contingencymanagers typically pay attention to both the situation and their own styles andmake efforts to ensure both interact efficiently. The contingency approachcontrasts with other forms of leadership, such as trait-based management,whereby personality and individual make-up predict patterns of management andresponses to given situations over time.
Contingency approachModernmanagement theory denotes to highlights the use of efficient mathematicalprocedures in the system with scrutinizing and assume the existing inter-relationshipof management and personnel in all characteristic. Modern management conceptsstarted afterwards 1950s.Modern interpretation involves that an employeeensures not labour for only coinage. They labour for the consummation &contentment with good incarnate panache. Some of these approaches bear theirroots in the 1950s and the 1960s and continue to be dominant in the managementcircles to date (Wren, 1987) .It isseen that modern age after the 1950?s to present their highly evolved issues isthat relationship between morale and productivity, there is on discerning isthe correspondent accent on man and machine, meanwhile of this period ofmanagement theirs development has been gotten a phase to recognize thepivotally of refinement and perfection action of manager for several concernsas a result it is a big issues is how deals the owner and manager level for theconsistency basis. There are various theories to modern management, some amongof them are;Acollection of ideas which set forth general rules on how to manage a businessor organization. Management theory addresses how managers and supervisorsrelate to their organizations in the knowledge of its goals, the implementationof effective means to get the goals accomplished and how to motivate employeesto perform to the highest standard.
Management theorySimplyto manage is to forecast and to plan, to organise, to command, to co-ordinate andto control by Henri Fayol. Managementis often included as a factor of production along with‚ machines, materials andmoney. According to the management guru Peter Drucker (1909-2005), the basictask of management includes both marketing and innovation to ensureorganization survival and success. Management can be categorized into twoschool of thought; classical management which covers the period between theancient Egyptian and Mayan to the era of early industrialization. And the othercategory is modern management; practice of modern management originates fromthe 16th century study of low efficiency and failures of certain enterprises,conducted by the English statesman Sir Thomas More (1478-1535).
Later, otherscholars such as Henri Fayol, Max Webber and other came with different theoriesand concept relating with management.Management CONCEPTUAL FRAMEWORK