The process approach describes how management performs the functions of planning, organizing, leading, and controlling. However, a process approach was needed to encompass and synthesize the different approaches. The systems approach is a theory that sees an organization as a set of interrelated and interdependent parts. There are two basic types of systems. Closed systems are not influenced by and do not interact with their environment.
Open systems are dynamic systems that interact with and respond to their environment.
Systems-perspective advocates envision the organization as being made up of interdependent factors. The manager's job is to ensure that all parts of the system are coordinated internally so that the organization's goals can be reached. The contingency approach involves recognizing and responding to situational variables as they arise. It has been used in recent years to replace simplistic principles of management and to integrate much of management theory. A number of trends and issues are changing the way managers do their jobs.