system A system is a collecting and gathering of parts (or subsystems) integrated to achieve an overall goal . Systems have input, processes(throughputs), outputs and outcomes, with ongoing feedback among these various parts. If one part of the system is removed, the nature of the system is changed.In system we have 3 main parts.
1.Input – resources and information needed to suply the organizational system2.processes (throughput) – the activities withing the organizational system that gets work done3.output – outcomes , product and services created or delivered by the organizationFor example, a car is a system. It is a collection of components which put together in a particular way, will transport you. likewise, if one part is faulty or stops working then this can have a huge impact on the whole system A system is any set of distinct parts that interact to form a complex whole. An organization is also a system with parts such as employees, assests , products , resources and informaion that form a complex system A system can be either closed system or open system.
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Closed systemclosed system is not affected by its environment.In a closed system, interactions only happen within the specific system, which means closed systems are shut off from the outside environment, and every interrelation is carried inside that closed system.Closed systems have the advantage of being efficient because there are clear procedures that are not affected by outside influences Open system An open system interacts with its environments by way of inputs, processes and outputs.Organizations should be treated as open systems that are continually dependent upon and influenced by their environments. The basic characteristic of the enterprise as an open system is that it transforms inputs into outputs within its environment. {Miller and Rice (1967) } Why is it Important to Look at Organizations as Systems?Systems theory has brought a new perspective for managers to interpret patterns and events in their organizations.
In the past, managers normally took one part and focused on that. Then they passed all attention to another part. The problem was that an organization could, EX- have departments that operate well by themselves but don’t combine well together. accordingly, the organization suffers as a whole. Now, more managers are recognizing the various parts of the organization, and, in particular, the interrelations of the parts.
EX -the coordination of central offices with other departments, engineering with manufacturing, supervisors with workers, etc. Managers now focus more attention on matters of ongoing organization and feedback. Managers now determine problems, not by examining what appear to be separate parts of the organization, but by recognizing larger patterns of interactions. Managers maintain perspective by focusing on the outputs they want from their organizations. Now managers focus on structures that cause behaviors that determine events – rather than reacting to events as was always done in the long ago.
Advantages , 1. It increases organisation’s flexibility to environmental changes. The organisation is studied as a whole and not through its parts. This enables it to adapt to the needs of the environment. Decisions are made keeping in mind the macro as well as micro environment.2. The focus is on reaching the individual as well as overall goals of the organisation.
3. equality in decision making such that no specific domain gets special treatment4. adjustable and strong5.
Focuses on multiple dimensions of management.disadvantages , 1. May not be always practical and lead to late in decision making.2. Nature of inter-dependence is not described.3.
Classification of the inter relationships has to be done correctly otherwise it could be unsuccessful.4. Does not cater to contingencies or particular style of functioning in the organisation.5.
May not be relevant to smaller organisations.
