System Theory
In the 1950s, the expansion Of the economy, the rapid growth of the middle class, the proliferation of larger and more complex corporations, and advances in communication and travel introduced new problems that had to be addressed by managers. At the same time, the Ford Foundation and Carnegie Corporation issued reports suggesting that business education in the United States was inadequate for developing managers because it focused more on vocational training than on organizational problem solving. As a result, management theorists and practitioners began to direct their attention to the question of how organizations as a whole could be made more efficient and effective.The systems theory approach to management is based on the assumptions and ideas of a biologist named Ludwig von Bertalanffy.
To read more about System Theory
Eric Raymond