One of the most important contributions to this school has been made by Chester I. Barnard. His classic treatise entitled “The Functions of the Executive”, published in
1938, is considered by some management scholars as one of the most influential books
published in the entire field of management. Like Fayol, Barnard based his theories and approach to management on the basis of his first-hand experience as a top-level executive.
Fundamentals of System Approach:
All organizations are a co-operative system.
As co-operative systems, organizations are a combination of complex physical, biological, personal and social components, which are in a specific systematic relationship by reason of the co-operation of two or more persons for at least one definite end.
An employee’s role and his co-operation are a strategic factor in achieving organizational objectives.
Following are the criticisms that this theory received.
Long on intellectual appeal and catchy terminology and short on verifiable facts and practical advice.
Complex in nature, particularly when it comes to the study of large and complex organizations.
However, we can conclude that the system approach is an instructive approach and way of thinking rather than a systematic model of solution to explain the complexities of managing modern organizations.