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The Mass Transit Railway (MTR) Corporation Limited of Hong Kong was established in 1957 as MTR Corporation with the Hong Kong Government as the only shareholder then to help meet Hong Kong's public transport requirements with a mission to construct and operate, under careful, far-sighted commercial principles, an urban metro system which currently carries 5.2 million passengers per week on an average. However, the firm has now diversified into various other areas of business which gave rise to the management issue being addressed in the research of MTR being such a large business with a diverse range of interests wherein the planning at all levels of its organizational operations is fundamental to the success of the long term and the short term goals of MTR. Herbert A. Simon (1960), the father of System Theory of Management considered any organization as a system composed of related and dependent elements which when in interaction from a unity whole. Thus, it is clear that MTR needs to consider the various levels of management as the elements of the system that form the organization as a whole. The report will thus argue that the best way to approach this diversified business model is to follow the system approach and carry on planning at all levels in a way that the levels are inter-related to form an organizational whole.
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