Systems Theory PDF

# Systems Theory ## Contents - What is System Theory? - The Premises of System Theory - Important View Point on System - Characteristics and Features of System Theory - Advantage of System Theory - Disadvantage of System Theory - Ways System Theory is Used in Modern Organisations - Conclusion ## Wh...

# Systems Theory ## Contents - What is System Theory? - The Premises of System Theory - Important View Point on System - Characteristics and Features of System Theory - Advantage of System Theory - Disadvantage of System Theory - Ways System Theory is Used in Modern Organisations - Conclusion ## What is the System Theory - The system theory is the transdisciplinary study of the abstract organization of phenomena, independent of their substance, type, or spatial or temporal scale of existence. - It is also a management methodology as it is a way of analyzing and thinking about organizations and also an alternative approach. - **Simpler definition says,** A theory that sees an organization as a set of interrelated and interdependent parts. - The systems theory focuses on understanding the organization as an open system that transforms inputs into outputs. - This theory is based on the work of a biologist, Ludwig von Bertalanffy, who believed that a general systems model could be used to unite science. - Early contributors to this theory included Kenneth Boulding, Richard Johnson, Fremont Kast, and James Rosenzweig. - The systems theory began to have a strong impact on management thought in the 1960s as a way of thinking about managing techniques that would allow managers to relate different specialties and parts of the company to one another, as well as to external environmental factors. - The systems theory focuses on the organization as a whole, its interaction with the environment, and its need to achieve equilibrium. ## The Premises of the System Theory - The systems theory puts forth the premise that organizations, like living organisms, are made up of numerous component subsystems that must work together in harmony for the larger system to succeed. - Systems theory states that organizational success relies on synergy, interrelations and interdependence between different subsystems. - As arguably the most valuable component of a company, employees make up various vital subsystems within an organization. - Departments, work groups, business units, facilities and individual employees can all be considered component systems of the organizations. ## Environment A diagram depicting an open system with the following elements: - **Environment** on the outside - **Input**, including physical, human, financial, and information, on the left - **System** in the middle, with the label **Transformation** - **Output**, including product & services, financial, and human results, on the right - **Feedback** from the environment on the bottom and to input on the left ## Important View Points on Organization - Open Systems - Closed System - Subsystem - Synergy - Entorpy ## Characteristics/Features of the Systems Theory - **Communication**: Communication mechanisms must be put in place for organizational systems to exchange relevant information with its environment. Communication provides for the flow of information among the subsystems. - **Systems, subsystems and supersystem**: Systems are a set interrelated parte that turn inputs to outputs through processing. Subsystems is the step that does the processing of the objectives within an organization. Super systems are other systems in environment of which the survival of the focal system is dependent. - **Boundaries**: The part of the system that separates it from its environment. The four types of boundaries involved in the process are physical, linguistical, systematic and psychological boundaries. - **Goal-directedness**: systems are goal oriented and engage in feedback in order to meet the goals of the organization. Also, every part of the system is interdependent with each other working together towards the goal. ## Advantages of the Systems Theory - It focuses on the environment and how changes can impact the organization. - Broadens the theoretical aspects for viewing the behaviour of organizations. - It is designed to deal with complex tasks. - It aims in meaningful analysis of organization and their management. - Facilitates interaction between organization and environment. ## Disadvantages of the Systems Theory - The systems theory doesn't focus on specific task functions. - Over conceptual. - Unpractical ie it can't be easily & directly applied to practical problems. - The theory changes in environment directly affect the structure and function of the organisation. - Doesn't directly explore the impact of interpersonal relationships, type of interaction, interdependencies and loyality on productivity. ## Ways System Theory is Used in Modern Organisation - System theory is used to measure performance, control and compute the interactions among individuals in each department of the organisation. - When the system theory is presented in an organisation this helps in growth and development. - If a typical managerial leader has any knowledge of the system theory it is easier to manage the mechanisms of products and services leaving the organisation. ## Conclusion - Systems advocates envision the organization as being made up of interdependent factors including individuals groups, attitudes, motives, formal structure, interactions goals, status & authority if all parts of the organization are not coordinated internally then organization goals can not be achieved. - Again open system approach recognized that org. are not self content they rely on their environment for essential inputs as a sources to absorbs their outputs. - So system approach is very crucial for organizations for its existance in business scenario and economic environment, in order to face all cyclic circumstances and move step ahead to achieve organizational goal. ## Diagram of the Calgary Strategy A diagram of a circular strategy with the following elements: - Vision: "Imagine Calgary" - Plan, including Municipal Development Plan and Calgary Transportation Plan - Guide/Align People and Processes Documents - Implement, including - Explore - Input - Analyze - Output - Applications Policies, including Imagine - Accountability, Trust, Responsibility - Outcome-Based Decisions That Help Realize Our Vision - Innovation, Collaboration, Transparency - Learn - Participants in the circle include: - Applicants - Community - City <br>