System theory of management bipsu-converted
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This document discusses the systems theory of management. It defines a system as a collection of interrelated parts working together to achieve goals. A management system includes inputs, transformation processes, outputs, feedback, and the environment. It views an organization as made up of subsystems that work together holistically and synergistically. The systems approach helps study complex organizations and identify interrelations between functions. However, it is abstract and does not provide specific tools for managers. Primary contributors to systems theory include Bernard, Simon, von Bertalanffy.
System theory of management bipsu-converted
- 1. System Theory of Management Jeffrey M. Projo Biliran Province State University School of Graduate Studies
- 2. System Theory of Management 2 • It is a collection of interrelated parts acting together to achieve some goal which exists in the environment. Also, system is defined as a set of objects working together with relationships between the objects and their attributes related to each other and to the environment. • Therefore, system in simple terms with respect to management, it is a set of different independent parts working together in interrelated manner to accomplish a set of objectives.
- 3. System Approach to Management 3
- 4. The system approach envisions the organization as made up of 5 components: 4 ➢ INPUTS - Raw Materials, Human Resources, Capital, Information, Technology. ➢ A TRANSFORMATIONAL PROCESS- Employee Work Activities, Management Activities, Operations, Methods ➢ OUTPUTS- Products or Services, Financial Results, Information, Human Results. ➢ FEEDBACK- Results from outputs influence inputs. ➢ THE ENVIRONMENT- These components make up internal and external factors that affect the system.
- 5. Elements of Systems Approach 5 • Sub-Systems – Each organization is a system made up of a combination of many sub-systems. These subsystems are interrelated. • Holism – Each sub-system works together to make up a single whole system. Decisions made in any subsystem affect the entire system. • Synergy- The collective output of the whole system is greater than the sum of the output of its sub-systems. • Closed and Open Systems- The whole organization is an open system made up of a combination of open and closed sub-systems. • System Boundary- The organization is separate from the external environment made up of other systems.
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- 14. 14 The advantages of the systems approach include: Disadvantages of the system approach include: It assists in studying the functions of complex organizations. This approach is somewhat abstract and vague. It is probabilistic rather than deterministic. It can be difficult to apply to large and complex organizations. It has been utilized as the base for the new kinds of organizations like project management organization. It does not provide any tool and technique for managers. It is possible to bring out the inter- relations in various functions like planning, organizing, directing and controlling It is not a prescriptive management theory, as it does not specify tools and techniques for practicing managers. Advantages and Disadvantages of a Systems Approach
- 15. 15 Primary Contributors of Systems Theory •Chester Bernard introduced the concept of Cooperative Systems in his book, Functions of an Executive (1938). •Economist, Herbert Simon, introduced in his book, Administrative Behavior (1947), the concept of systems process in decision-making within organizations. Notably, he introduced concepts of bounded rationality and satisfying. •Biologist, Ludwig von Bertalanffy, introduced principles of General Systems theory in 1950. •Other contributors include: Lawrence J. Henderson, W.G. Scott, Deniel Katz, Robert L. Kahn, W. Buckley and J.D. Thompson.
- 16. 16 Reference: . Systems Theory of Management - Explained. The Business Professor, LLC. (2022). Retrieved 22 January 2022, from https://thebusinessprofessor.com/en_US/management-leadership-organizational- behavior/systems-theory-of-management.
- 17. 17 “ Management of a system requires knowledge of the interrelationships between all of the components within the system and of everybody that works in it.” - W. Edwards Deming-