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The use of systems
theory of management in modern day organizations is essential for organization
efficiency and increase the profitability. But the management will need to
combine with contingency approach theory, as we know then organization can be
affected by both internal factor and external environments. So the use of contingency
approach will allow the management to decide according to the prevailing
external environment.



In conclusion,
Systems Theory suggests an evolutionary explanation for the dominance of modern
management theories in contemporary organizations. It also clarifies the role
of complex organisations in modern world; and predicts that the complexity of
organisations, and therefore the role of management, will probably continue to
increase proportionally with the increase of efficiency and complexity of




















Recommendation is hereby made for organizations to
adopt the systems approach to guarantee orderliness and constancy of operations

  Second, the
structured nature of the systems theory enables the organization to function
effectively without much friction. Chains of command and lines of authority are
clearly spelt out because of the inevitable subsisting relationships between

  First, for
corporate growth and profitability, modern day organizations should manage
their organizations applying the systems theory of management. This is because
of its bridging ability and interfacing strength in the classical and human
relations approaches to managing organizations.

In the light of
the analysis done at Tanzania international container terminal services (TICTS)
with regards to this matter, the following recommendations are hereby made for
modern day organizations and the business world in general on issues bothering
on the adoption of the systems theory in management.






But TICTS is not only limited to system model at times
is using contingency approach depending on the situations. And this flexibility
between adopting system approach and contingency approach gives more autonomy
to employees. And has contributed to the recent success of TICTS and make it as
leading service provider of terminal handling services at port of Dar es

This is the section which interact with the customer
and ensure that the service is properly delivered to customer and handling of
any complaint which has been raised by customers. And they provide the feedback
to management and operations team. Also they are responsible to handle and
ensure there is a good working relationship between TICTS and other ports
stakeholders such as SUMATRA, TAFFA etc.

& Cooperate Affairs Section

This serves as the process unit in the system
component, as they are the ones who serves the vessel and handling of customers
cargo while in port. Are the one who allows the customers to process their
cargo to the final point and they work hand in hand with engineering unit whom
ensure that the equipment is available to facilitate the operations.

Section & Engineering

This section serves as the input in the Ticts system,
as it interacts with customers and accept and forward all the booking and
payments, to allows the company to start processing the customers cargo. For
example, they initiate the container movement by raising the invoices and
issuance of permit which will enable the customer either to take his container
from port for import, and to bring the container to terminal for export and
vice-versa. Then they forward it to operations section for execution and
implementation of customers request.

Service & Billing Section

The management of Tanzania international container
terminal services has been sub-dived into different departments as shown above,
and each one department is dependant to another departments to function














international container terminal services deals with handling of container
vessels at the port of dar es salaam through the lease agreement between the
HPH and Tanzania port Authority. It has been operational since 2000, and the
company performance has been excelling since ever, one among of the reason is
their adoption to good management style which suits the industry needs. And
their preferred model of management is system model approach. This can be seen
deep from the structure of the organization as shown below


Like living systems, most organizations if not all,
operate in constant interchange with their environment. They have many complex
interactions and interrelationships within their boundaries. To survive,
organizations must grow and achieve a dynamic equilibrium rather than simply
return to a steady state. It is for these reasons that general systems theory
has come to be applied to the study of organizational phenomena such as design
of management planning and control systems.


i)       Conceptualization:
system is a concept whose form reflects the aims and values of the individual
or group whose concept it is (Harry,

h)     Environment:
are things which are not part of the system, which significantly affect it, but
which the system can only marginally influence, called the environment of the

g)      Identity:
properties of a system that enable it to be identified and separated from other
things which are not part of the system.

f)       Holism
and emergent properties: A system is a whole which exhibits
property which only have meaning in terms of the interactive processes of its

e)      Process:
changes resulting from these interactions are called processes

d)     Interaction:
components affect each other by their presence in or removal from the system
which results from mutual interaction with the systems environment.

c)      Structure:
form of this connection is fixed in an organized way called structure. The
concepts of structure and organization become more interesting in large
systems, where more than just one or two possible structures or organizations
may be considered.

b)     Connection:
components of a system are connected together to function as a single system of

Components: A
system consists of more than one part called component elements of a system. A
component refers to anything that is part of a system or sub-system. The term
element implies the smaller components that one would wish to identify
separately. Organization of a system is the specification of relations between
its elements.

to Harry (1990) the following
elements are indicators of a quality system;



Closed system model is like open system but their only
major difference is the interaction with external environment and using the
feedback from the external environment to process the inputs.

the system; It
is worthy of note that in the systems model of management process, some of the
outputs become inputs again. Apparently, the satisfaction and new knowledge or
skills of employees become important human inputs. Similarly, profits are
reinvested in cash and capital goods, such as machinery, equipment, buildings
and inventory.

External Environment; As
a component of the systems model, the external environment plays a key role in
the transformation of inputs into outputs. While it is true that organizations
have little or no power to change the external environment, they have no
alternative but to respond to it.

Output; Input
are secured and utilized by transformation through the managerial functions
with due consideration for external variables into outputs. Outputs of
different kinds vary with the organization. They usually include many of the
following; products, services, profits, satisfaction and integration of the
goals of various claimants to the organization.

Process; In an organizational system, inputs are transformed in
an effective and efficient manner into outputs. This can be viewed from
different perspectives. Focus can be on such management functions as finance,
production, personnel and marketing. This is where the management function and
execution of work is done.

Input; The composition of inputs from the external
environment may include people, capital, managerial skills as well as technical
knowledge of skills. It also includes the various claimants’ groups of people
making demands on the organization; such as employees, consumers, suppliers,
stockholders, federal, state and local governments.

The above model explains how various management
functions are formed, function such as organizing, controlling, planning and
leading etc. The model depends on the sub components of inputs, process, output
and external environment to operates as system.

Weihrich, et al (2008)
















organized enterprise does not exist in a vacuum. It is rather known to depend
on its external environment which is a part of a larger system, such as the
industry to which it belongs, the economic system and the society (Weihrich, 2008). According to them, the
organization receives inputs, transforms them and exports the outputs to the
environment as shown in the basic input-output model below;

Organizational management systems
consist of many internal subsystems that need to be continually aligned with
each other. As companies grow, they develop more and more complex subsystems
that must coordinate with each other in the process of transforming inputs to
outputs (McShanean,2003). These
interdependencies can easily become so complex that a minor event in one
subsystem may amplify into serious unintended consequences elsewhere in the


The system
theory allows organization to interact with external environment, when
organization is adopting to open system management model.  As stipulated in the work of
Ludwig von Bertillon (1973) recognized the need of any organization to interact
with its external environment, unlike what was proposed by classical school
theorists like Max Weber, F. Tailor and Fayol who viewed organization as closed
system. To him, for survival of an organization like the way living organism
survives, should operate in open system and not closed system.

Over the years transcending down
history, organizations have either adopted a management model or a combination
of models. Whichever model that is adopted, the survivability and maximization
of profit is often a key objective for any organization.


The present-day organization is
faced with the challenges of adoption of a specific style of management in its
day to day operational decision making. These could be seen manifesting in a
variation of several management philosophies that has evolved over the years.
Theories exist that are drawn from the scientific management school, the
classical organization theory school, the behavioral school and the relations
theories. Others are the management science school and some recent developments
in management theory; the systems approach and the contingency approach


























This paper
is objectively geared at showing an understanding of what the systems theory is
all about, its application in management, especially with modern day
organizations. For this case Tanzania, International Container Terminal
Services will be taken as a case on how it uses and implement the system theory
of management, and the possible set back involved.


system school brings focus on the organization’s various functions and the
importance of ensuring that the different components function in a synergy that
ensures that the overall outcome of the organization is up to expectations (Lewis, Stephen and Patricia, 1998)

line of thought in the management field which stresses the interactive nature
and interdependence of external and internal factors in an organization. A
systems approach is commonly used to valuate market elements which affect the
profitability of a business. The Systems Approach, therefore,
relies on all components, or sub-systems, to work in harmony and coordination to
ensure the success of the larger system.


With respect to management, system simply refers to a
set of different independent parts working together in interrelated manner to
accomplish a whole. It is with this essence that synergism appears. For
instance, an organization is formed by different departments, sections, and
units composed of individuals and groups which are independent, but working
together to achieve a common goal with the aim of turning organizational vision
into reality.

Flood and Jackson (1991) define a system as a complex
and highly interlinked network of parts exhibiting synergistic properties the
whole is greater than the sum of its parts. It is a collection of interrelated
parts acting together to achieve some goal which exists in the environment.
Also, system is defined as a set of objects together with relationships between
the objects and between their attributes related to each other and to the
environment so as to create or form a whole (Schoderbek , 1985). Further, Check land (1981) defines a system as
a model of a whole entity, which may be applied to human activity.

            System approach

contingency approach is a management theory that suggests the most appropriate
style of management is dependent on the context of the situation and that
adopting a single, rigid style is inefficient in the long term. Contingency
managers typically pay attention to both the situation and their own styles and
make efforts to ensure both interact efficiently. The contingency approach
contrasts with other forms of leadership, such as trait-based management,
whereby personality and individual make-up predict patterns of management and
responses to given situations over time.

            Contingency approach

management theory denotes to highlights the use of efficient mathematical
procedures in the system with scrutinizing and assume the existing inter-relationship
of management and personnel in all characteristic. Modern management concepts
started afterwards 1950s.Modern interpretation involves that an employee
ensures not labour for only coinage. They labour for the consummation &
contentment with good incarnate panache. Some of these approaches bear their
roots in the 1950s and the 1960s and continue to be dominant in the management
circles to date (Wren, 1987) .It is
seen that modern age after the 1950?s to present their highly evolved issues is
that relationship between morale and productivity, there is on discerning is
the correspondent accent on man and machine, meanwhile of this period of
management theirs development has been gotten a phase to recognize the
pivotally of refinement and perfection action of manager for several concerns
as a result it is a big issues is how deals the owner and manager level for the
consistency basis. There are various theories to modern management, some among
of them are;

collection of ideas which set forth general rules on how to manage a business
or organization. Management theory addresses how managers and supervisors
relate to their organizations in the knowledge of its goals, the implementation
of effective means to get the goals accomplished and how to motivate employees
to perform to the highest standard.

           Management theory

to manage is to forecast and to plan, to organise, to command, to co-ordinate and
to control by Henri Fayol.

is often included as a factor of production along with‚ machines, materials and
money. According to the management guru Peter Drucker (1909-2005), the basic
task of management includes both marketing and innovation to ensure
organization survival and success. Management can be categorized into two
school of thought; classical management which covers the period between the
ancient Egyptian and Mayan to the era of early industrialization. And the other
category is modern management; practice of modern management originates from
the 16th century study of low efficiency and failures of certain enterprises,
conducted by the English statesman Sir Thomas More (1478-1535). Later, other
scholars such as Henri Fayol, Max Webber and other came with different theories
and concept relating with management.




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