Managing
Systems
Another way to look at the
manager’s job is from the perspective of managing systems.
System:
A system
is a set of interrelated and interdependent parts arranged in a
manner that produces a unified
whole. It’s a concept taken
from the physical sciences and applied to organizations.
The two basic types of
systems are
Closed
systems are not influenced by and do not interact with their environment.
Open
systems dynamically interact with their environment.
Today, when we call
organization systems, we mean open systems, that is, an organization that
constantly
interacts with its
environment.
The
systems theory approach is based on the notion that
organizations can be visualized as systems of
interrelated parts or
subsystems that operate as a whole in pursuit of common goals. This will be
discussed
in more detail in the next
session.
1.
The major components of a system are:
a.
Inputs: the various human, materials, financial, equipment, and informational
resources
required to produce goods and
services.
b.
Transformation processes: the organization’s managerial and technological
abilities that are
applied to convert inputs
into outputs.
c.
Outputs: the products, services, and other outcomes produced by the
organization.
d.
Feedback: information about results and organizational status relative to its
environment.
2.
Open versus closed systems. These are terms indicating the relative degree
with which a system
interacts with its
environment. While there are very few, if any, completely open or completely
closed systems, we usually
view open systems as those having continual interaction with its
environment. Closed systems
are those with little interaction and feedback from their
environments.
3.
Two major characteristics of open systems are:
a.
Negative entropy is the ability of open systems to bring in new
energy in the form of inputs
and feedback from the
environment in order for the organization to delay or to arrest entropy,
the decaying process.
b.
Synergy is the ability of the whole to equal more than the sum of its parts.
c.
The systems viewpoint suggests that managers are likely to be more
successful if they attempt
to operate their units as open systems rather than as closed system.
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