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SYSTEMS  THEORY  

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WHAT  IS  SYSTEMS  THEORY?  

!  Systems  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  to  provide  alternative   approaches    

THE  PREMISES  OF  SYSTEMS  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      

CHARACTERISTICS/FEACTURES  OF   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  parts  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.        

CHARACTERISTICS/FEATURES  OF   SYSTEMS  THEORY   !  Boundaries   The  part  of  the  system  that  separates  it  from  its  

environment.  The  four  types  of  boundaries   involved  in  the  process  are  physical,  linquistical,   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  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  

DISADVANTAGES  OF  SYSTEMS           THEORY  

!  Systems  Theory    does  not  focus  on  specific   task  functions  

!  It  does  not  provide  for  detailed  focus.   !  The  changes  in  environment  may  directly   affect  the  structure  and  function  of  the   organization  

!  It  does  not  directly  explore  the  impact  of   interpersonal  relationships  and  loyalty  on   productively.  

WAYS  SYSTEMS  THEORY  IS  USED   IN  MODERN  ORGANIZATIONS  

Systems  theory  is  used  to  measure  performance,   and  to  control  and  compute  the    interactions   among  individuals  in  each  department  of  the   organisation.  

When  the  system  theory  is  utilized  in  an   organization,  it  typically  encourages  growth   and  development  of  the  organization.  

If  a  typical  managerial  leader  has  knowledge  of   Systems  Theory  it  is  generally  easier  to   manage  the  mechanisms  of  products  and   services  leaving  the  organization.