Another way to look at the manager’s job is from the perspective of
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
The two basic types of systems are
are not influenced by and do not interact
with their environment.
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.
1. 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.
The major components of a system are:
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.
the products, services, and other outcomes
produced by the organization.
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.
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.