2 SYSTEM APPROACH IN MANAGEMENT

M. R. Thilakam

SYSTEM APPROACH IN MANAGEMENT

Objectives:

1. To know the meaning of family system

2. To Understand system approach in management

3. To manage the resources in an effective manner

Introduction:

In our experience we have noticed some of our friends or relatives accomplish what they have aimed for, while the others could never be able to reach their goals. The difference to due to the efficient methods adopted by them through which they could manage their resources effectively. Knowledge on management will help one to manage the available resources in an efficient manner.

Traditionally the managerial skills among women were restricted to home and its related activities. Today women are taking up multiple roles as producers, consumers and coordinator of good personal and family relationships. In this context a home maker needs to plan, guide or direct the use of human and material resources to meet the goals or demands. Hence it essential for them to manage their resources in an effective manner to meet their demands. Understanding systems approach in management may help one or a family to manage the situation by considering their interrelationship with other systems. Singal and Gandotra (2014) give three approaches under modern management – quantitative approach system’s approach and contingency approach. Quantitative approach is based on scientific management; it offers systematic and scientific analysis and solutions to the problems faced by the managers. It tires to achieve high degree of precision, perfection and objectivity. Mathematical and statistical tools are used to solve complex problems.

Singal and Gandotra (2014) give three approaches under modern management – quantitative approach system’s approach and contingency approach. Quantitative approach is based on scientific management; it offers systematic and scientific analysis and solutions to the problems faced by themanagers. It tires to achieve high degree of precision, perfection and objectivity. Mathematical and statistical tools are used to solve complex problems.

System’s approach is the latest development related to organizations and their management. It emphasizes inter-dependence and inter-relationships among various activities of an organization. Organization is seen as a larger system and ‘system’s approach’ tries to identify nature of relationship among various components of the organization. A system may be defined as a set of interrelated and interacting components assembled in a particular sequence to produce results. These components could also be termed as subsystems. It is through the subsystems that the larger system operates and is viewed as a whole.

Subsystems interact and, therefore, they influence and are influenced by each other. Every system has some boundaries and within these boundaries lies an internal environment which consists of internal and controllable variables. The external environment is beyond these boundaries and is outside the control of the system.

Contingency approach aims to take a ‘step away’ from universal application of managerial principles and recommends that application of principles is subject to appropriateness of the situation. According to this approach, effectiveness of management pattern is contingent upon various factors and their interrelationship in a particular situation. In this approach, emphasis is placed on situational variables.

However system approach is widely followed in studying family management. A system is defined as interrelated elements or parts having a boundary and functional unity within a larger system. Churchman (1968) defines system as a coordinated set of parts for accomplishing goals. A system could be open or closed. In an open system, factors outside the system affect and are affected by the environment while in closed system, it is not so.

The criteria which compare a family to a system are:

1.Families are dynamic units and they may change over the years from several members to just one individual or vice-versa. Individuals who comprise a family unit work together to reach their goals. Their lifestyles may vary but they all function to maintain their home.

2. Like a system, a family also has a boundary which separates it from other systems. Within each family, concerns for personal relationships, responsibilities for personal maintenance and development, and the management of family resources help to differentiate a family from other systems.

According to Shukul and Gandotra (2006) Home Management/Family Resource Management can be seen as ecological social system. The reasons for using this approach is that management cannot be viewed in isolation. The family lives in a social setting and therefore cannot be separated from the impact of its physical, economics, social and political environment. Secondly this approach highlights interrelationship, interdependent and interaction, all of which are closely related to the real world. Finally it makes it possible to focus on individual components without losing sight of the totality.

Effects of Visual Merchandising on Purchasing Practices among Consumers *S. Madhumitha **Dr. M. R. Thilakam

Advertisement is a popular device employed in the modern marketing system. Advertising has assumed more importance and it is very difficult to estimate its magnitude today. Visual merchandising is a type of media which plays a vital role in advertisement. Today it has become a part of our popular culture. It attract the customers of different sections to buy the goods. Window display is a form of merchandise display which refers to the product in front of the shop at a dominant place. There is no substantive evidence to indicate that window display has lead to an increase in sales. Hence the study on “Effects of Visual Merchandising on Purchasing Practices of Consumers” was undertaken with the following objectives to:

Assess the significance and effectiveness of window displays among the selected textile shops
Find out the influence of window display on consumer purchase
Find out the details on planning of window display in selected shops
Survey among Selected Shops
Survey among Selected consumers

2. Conduct of case study among two selected shops

Conduct of Survey

A. Survey among Selected Shops

The investigator conducted a market survey in the busy areas of Coimbatore such as Gandhipuram, R. S. Puram, Fun mall, Brook Fields and Saibaba Colony. These areas were mainly selected as there are many new textile shops located in these places. The shops with attractive window displays which drew the attention of the customers to their shop where selected as a samples. Fifty shops were chosen for the study frominvestigator selected interview, as a research method to get the information regarding the research study. The investigator framed the schedule for the market survey. On the basis of pre-testing, necessary amendments were made and collected the required information using well prepared interview schedule. She contacted the owners or person in charge, or an executive and explained the purpose of the study. The investigator visited the textile shops initially in order to get to know the shops. The observation was also accompanied along with the interview schedule. Collected data was consolidated and tabulated for further analysis.

B: Survey among Selected Consumers

Totally three hundred samples were selected from fifty shops selected for the market survey by the investigator based on purposive sampling. With the consent of the executives of the shops the consumers were contacted in the surveyed shops. The investigator explained to them the purpose of the study and she proceeded with her interview. For the research study, the investigator collected the data from the consumers who had visited the shops through personal interview using a well structured interview schedule. The data thus collected were consolidated and tabulated and discussed.

Results of the survey conducted among selected shops and consumers

1. General Information

Majority of 85 percent of the consumers belonged to middle income group. Among the surveyed consumers, majority 72 percent were youngsters.

2. Information on Advertisement

Advertisement media was categorized as direct, indirect, outdoor and point of purchase advertising. The surveyed executives of the selected shop felt that among the various type of direct advertising, leaflets, cards, booklets and brochures had influenced the purchase of their products by above 60 per cent of the consumers. However the consumers expressed that booklets and brochures along with frees had influenced their purchase of textile products from the shop. Regarding indirect advertising the executive of the selected shops and consumers informed press advertising and news paper advertising influenced the purchase of textile products among 80 and 76 per cent of the shops, whereas news paper advertising had mainly influenced the consumers.

Regarding outdoor display majority of the surveyed executives and customers informed that posters and banners had an impact on the purchasing habits among 80 per cent of new consumers. All the executives and 81 per cent of the consumers expressed that window display definitely had a positive effect on their purchasing habits.

The impression on advertisement among selected consumers when enquired disclosed the fact that advertising is mainly exaggeration of facts to attract potential customers (39 per cent).

3. Details on Visual Merchandising

From the surveyed official of the selected shops it could be understood that all of them considered visual merchandising as a means of advertising. Besides it expresses the character of the store attract attention, display new arrivals ad represent latest fashion.

Regarding the views of the executive of the surveyed shops on the type of displays preferred by the customers from their point of view when enquired, revealed that consumers preferred promotional displays. With regard to the design of the presentation of promotional display, majority of the executives and consumers were of the opinion that their customers would prefer line arrangement. According to the view of the 75 per cent of the executive of the shops and 57 per cent of the surveyed consumers considered mannequins as a necessary element in visual merchandising.

The executives of the textile shops surveyed were asked to rank the elements of merchandise according to their importance. As expected mannequins were given first importance followed by forms. Regarding the principles followed in a merchandise display 93 per cent of the executives of selected shops and 37 per cent of the consumers considered theme as the basic principle and the most essential for effective merchandise display. All the executive of the selected shops and 26 per cent of surveyed consumers opined that point of purchase fixture is the latest trend in visual merchandising.

The major role of lighting in visual merchandising as expressed by all the executive of the selected shops and 84 per cent of the consumers surveyed, disclosed that it is to attract the attention of the consumers and to have bright store front for appealing appearance. All the surveyed executive of the selected shops revealed that they follow image advertising in order to facilitate the customers to remember easily and to attract attention of the customers.

Products of latest trend were mainly displayed in the windows of selected shop. To attract the attention and to provide efficient and attractive lighting , were the major key factors considered while presenting a window display of selected shops. All the selected customers however expressed that the window should reflect the character of the store, attract the attention, with clean window , provision for adequate lighting, frequent changing of displays and display major products in the shop. The consumerssurveyed revealed the fact maximum (82 percent) of them gave importance for the quality of the product they buy. Window display, advertisement, image of the shop were the other factors which had influenced their apparel.

Informative window display was preferred by majority of the students both executives and (100 per cent) consumers (33 per cent), followed by decorative window display, special lighting display, mixed window display, ordinary window display and display with any movement. Regarding the type of display setting, maximum (71 per cent and 38 per cent) of the executives and customers preferred fantasy setting. Majority 89 per cent of the surveyed executive of the shops revealed that principle emphasis was given maximum importance in a display. However the surveyed consumers had observed balance on both the sides (44 per cent) and emphasising the items to be displayed (34 per cent) as the principles adopted by the shops they had seen.

Among the surveyed shops maximum (84 per cent) of the shops has used realistic mannequins. The same trend was seen in the preference shown toward kinds of mannequins by the selected consumers also (92 per cent). When the consumers explored both the interior and exterior window displays they rated the window plays based on certain criteria. Clean windows with attractive memorable display, adequate lighting were preferred by majority of surveyed consumers for interior displays. However regarding the exterior windows, majority expected it to reflect the character of the store, display of new arrivals, arranged in latest theme with adequate bright lighting.

4. Edification on Window Display

Majority of the shops surveyed revealed that they change their display, especially the mannequins every day while the rest informed that they change displays every week. The consumers informed that as the shops will be investing heavily on window displays it is justifiable if it is retained for longer period. The relationship between different income levels with the habit of watching window display, hobby of window shopping and purchase attracted by window display were tested using correlation. It showed that they were no significant relationship between the variables. For effective display of the products, the selected consumers suggested the use of bright of colours (71 per cent) good lighting effect and varying heights of products displayed.

C) Presentation of the case study

The investigator visited a chain operated textile show room-which is established throughout India and collected the detailed information from the executives of the shop. They informed that they follow similar display in all the showrooms. The exterior windows will be designed in head quarters (Bangalore) by a team of experts in visual merchandising. The display will be done as per the instructions from the head office and a photograph of the display had to be sent to the head office immediately. However the interior displays are designed by the in house staff.

Regarding the second shop selected for the case study , there are four branches in three major cities of Tamilnadu. It has its own visual merchandising department headed by the owner of the shop. The visual presentation are generally done by free lancers specialized in this field. For each season they spend up to 15 lakhs for the exterior per shop.

Conclusion

To conclude Advertising has been ever evolving since the days of drummers and cave carvings and it will stay as long as human existence remains on the planet. Its evolution will keep on invading our lives with newer inventions introduced in the market and updating the techniques of advertising accordingly. In future latest discoveries like computers and internet could look like horse driven carriage as compared to supersonic crafts and space travel. As new technology has given new vistas for creation to the advertising agency these areas have lot of potential for research and achievement.

Subsystems interact and, therefore, they influence and are influenced by each other. Every system has some boundries and within these boundaries lies an internal environment which consists of internal and controllable variables. The external environment is beyond these boundaries and is outside the control of the system.

The criteria which compare a family to a system are:

2.Like a system, a family also has a boundary which separates it from other systems. Within each family, concerns for personal relationships, responsibilities for personal maintenance and development, and the management of family resources help to differentiate a family from other systems.

FIGURE1

Families or constantly interacting with the environment surrounding them. They are called ecological system or eco system. Thus the family function as a system coordinated to accomplish a set of goals. Rice and Tucker view family as a set of components bound together as a functioning whole in dynamic interaction with the environment. A family for their day to activities depends on various external systems. External systems are a part of their families environment functioning outside the family. These environment which is a set of conditions are properties which influence a given system, though not an integral part of it called ecosystem.

Ecosystem has three basic elements. They are

a) Members –Persons who are interdependent and work together with a feeling of unity.

b) Environments-Anything external to the members both human and natural which could affect them

c) Organization-Web of human transactions –the role pattern of members, the management

Systems for processing informations and co-coordinating activities for achievement of common goals.

In a family eco system two types of environment are indicated namely micro and macro environment.

Micro environment: Micro environment are the elements immediately surrounding the living environment which is provided or shared by other family system.

Macro environment: Macro environment surround the micro environment through societal system or natural and/or structured surroundings.

A Boundary is one which separates one family’s system or area from each other. It may be flexible – expanding and contracting – or fluid –changing from day to day or slowly overtime depending on the circumstances. The permeability are openness to interchange tend to increase from the outer boundary to the center or core family system.

Interface is the common or shared boundary of system.

2.1. Microenvironment: Micro environment indicates the physical and social surrounding of the family or house hold. This surrounding serves as a buffer by filtering the inputs of information, energy and matter from the macro environment.

A Micro environment includes physical habitat and social aspects.

2.1.1. Physical habitat: Immediate environment such as space territories indicated as house, apartments, hedges or lawns are examples for physical habitat.

2.1.2. Social aspect : The interaction the family system have with their relatives, friends and neighbors, besides the stage of family life cycle, age, socio economic status and cultural background is considered as social aspect.

2.2 Macro Environment: It includes societal system and natural and structured system.

2.2.1 Societal systems is the most important part of the family eco system and surround the macro environment. The interaction between the individual or families with societal system is less intimate or less personal than the micro environment.

Socio cultural, political system, economical system and technological system are part of societal system.

2.2.2 Social Cultural System: The meaning and content of a society is defined by culture. The cultural values and expectation and societal norms may limit the managerial involvement of an individual. For example the cultural values of certain communities may not permit women to take up employment outside.

2.2.3 Political System: The laws regulation, protection and other services have a great impact on the family system. The families by paying their tax, by voting, adhering the laws and by fulfilling their civic responsibility support the political system.

2.2.4. Economic System: The goods and services required for the family are made available to them at reasonable price as per their expectation. The choice families make influence the general economy and affect the available resources of a family. For instance the government supplies food products in ration shops at a subsidized rate which in turn helps the families to save their money.

2.2.5. Technological System: Development of science and technology has influenced the life style of the families. This has a great impact as personal and social welfare system thus increasing the significance of management. Science and technology have introduced number of household gadgets which help the homemaker to save her time and energy.

2.3. Natural and Structured System: These are the physical and biological surroundings within which the functioning of societal systems take place. Space, buildings, highways and parks are examples for physical systems while biological systems include marine plant and animal life, mountains, seashores etc

Most of the family resources which are originated in the macro environment are converted to the forms needed by the society and families. Alteration of food into the desired forms through technological processes such as freezing, drying, baking and cooking is ideal examples for this. Interaction of physical and biological system with societal system in the macro environment provides important interchange in the total ecosystem.

THE FAMILY SYSTEM

A family is a system with parts and relationships more complex and it exists wherever the members are functioning together family system can function with varying components and can adapt to changes. A family system may include individuals who are independently responsible for themselves, or it may include a group of related or unrelated individuals who share at lease some portion of their day-to-day interests and necessities through their mutual interaction.

A family can be relatively an open system or closed system. When families continuously interact with its environment it is called open system. When it does not make significant exchange with its environment it is called closed system.A closed system does not make significant exchanges with its environment. A small child who has very low resistance to diseases should live in a germ free environment .She has to take food from environment while the body waste flow across the boundary into the environment

3.1 Elements of Family System

The components of family system are input, through put, output and feedback.

FIGURE

3.1.1 Input: Matter, energy and information entering the family system are classified as resources and demands.

3.1.2 Output: As the resources are utilized by the family to meet the demands, the used resources and met demands leave the family system and enter as output in the environment.

3.1.3 Through Put: The process of changing inputs-matter, energy and information into output is called throughput. The responses of families in using their resources differ and so also the output. Two families with very different initial circumstances may arrive at similar conditions. This is called equifinality. Similarly families with same oppurnities and resources may lead to different outcomes. This is referred as multifinality.

3.1.4 Feedback: The information that reenters the systems as input is called feedback. A feedback can be positive or negative. A positive feedback accepts deviations from anticipated effects and promotes rather than inhibiting change. Negative feedback is an information input which indicates that the system is deviating from a prescribed course and should readjust to a new steady state.

A morphogenic system response is deviation promoting through the information provided by positive feedback.Morpho static systems are relatively fixed form, stable, mechanistic and relatively closed.

A family that has to cancel their vacation travel plans uses their time for local sightseeing .is an example for morphogenic system. In morphostatic system a change in the vacation travel plan would be a cancellation of their vacation time and postponement until the original plan could be implemented.

3.1.5 Subsystem: A subsystem fulfills the same condition as a system and plays a functional role in an larger system. The family is an subsystem of a community system and the community is a subsystem of a regional system. Within a family system personal and managerial subsystem exists.

FIGURE 3

Through the personal subsystem, interpersonal relations are involved and responsilibilities for personal maintenance and for personal development are carried out.

Family Resource Management as a System

The inputs are demands, events, requirements and expectation and resources; the throughput includes components of planning and implementing while the output refers to met demands and use resources. Feedback reenters the input. The elements of family system are discussed below.

4.1 Input answers questions like why, what, when and where. Inputs to family systems and subsystem are called demands. Demands and resources are the inputs to the family systems and their subsystem. They are goals or events that require action. It may arise from inside or outside the family system. Goals are value based objectives it gives direction to one’s actions. Values are what is desirable or has worth. Events are unexpected are low probability occurrences that require action and may originate from macro habitat. Resources are means for meeting demands. Resources may be human or non human.

4.2 Through Put: Within the managerial system through put answers questions such as how, how much, how good, when and where .The effectiveness of a system can be assessed by comparing the output with input. The term “BLACK BOX” explains the unknown through put.

For the management of home and personal affairs, through put is analyzed in terms of planning and implementing.

FIGURE 6

4.2.1 Planning: Unless there is a plan either written or unwritten, general or specific management cannot take place. For guiding actions or meeting the demands of the family, planning is essential. Planning is a series of decisions concerning future standards/and or sequence of action. Hence decision making skills are important in planning.

4.2.2 Basic steps in planning are a) Recognizing the problem b) Seeking the alternatives c) Choosing between alternatives d)Acting to carry out the plan and e)Accepting the consequences.

4.2.3 Choosing of an alternative should be based on facts and not on emotions and impulses. While making a plan there should be a) Balance between available resources b) apt for individual situations c) Realistic and flexible. Since planning decisions involve standards and sequences of actions needed to meet demands, the two planning subsystems standard setting and action sequencing are made use of. Plans are shown as the outputs of planning with standards and sequences as major parts. The feedback arrows shown in planning to the personal subsystem and from plans to planning indicate the openness of the subsystem components.

Repeated uses of plans are common and practical way to simplify everyday living. The repeat use plan bypass the demand, resource, inputs and plans before they reach the planning subsystem. This indicates that output from previous planning could be used for the present purposes. While planning,standards evolve. Standards are measure of quality and quantity

4.2.4 While planning the sequence of action, there should be clarity of sequence, flexibility and reality.

4.2.5 Facilitation is a mechanism that promotes a given order, delegation of responsibility, anticipating environmental distractions and recognition. It serves as an accelerator while planning.

FIGURE 4

After standards and sequences are developed into a plan which is consistent with resources and demands, implementing the action is the next step of management

5.1 Implementing: It is defined as putting a plan into action. It comprises both controlling and facilitating. Controlling includes checking an action against the plan, adjusting the standards and facilitating or assisting the progress or flow of actions.

FIGURE 5

5.1.1 Checking can be done through subjective or objective methods. Subjective methods include visual, auditory, tactual or through other sensory means. Objective methods involves using measuring devices such as thermometers, scales etc…

5.1.2 Adjusting: From a planned behavior when there is a deviations which was identified through checking then the plans must be adjusted.

6. Facilitating is assisting the progress in a flow of action by capitalizing on individual potential.

7. Feed back/Evaluating: It is used to assess what has been done and how effective the process was in relation to the goals achieved. Positive feedback shows the differences between expected and actual outcomes. It acknowledges and supports the deviation.

Neutral feedback recognizes the compatibility of output with input

Negative feedback reveals the differences between actual and devised output which are not acceptable and influence the system to reduce the deviation.

FIGURE 6

Summary:

Management is a dynamic subsystem of the family. Efficient management motivates the effective use of individual or family resources to meet the set goals. The micro and macro environment influence the goals of individuals and families. Unexpected occurrences called events, whether originated internally or externally can bring about managerial response.

Planning and implementing are through put processes that directs how resources will be used to meet goals. Planning involves setting up of standards and sequencing of action. Decision making is basic to all managerial components and functions. Outputs of the system result on met demands and used resources. The success of the management depends on the degree to which the demands are met.

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