Systems theory is an extension of the humanistic perspective that describes organizations as open systems characterized by entropy, synergy and subsystem interdependence. The systems theory is one of the recent historical trends of organization and management (the other two are contingency view and total quality management). General systems theory grew out of the organismic views of L. Bertalanffy and other biologists during1950s and K. Boulding, D. Katz, R. Kahn, F. Kast, J. Rosenzweig, W. Buckley, R. Ackoff, K. Back, D. Easton, A.D. Hall, R.E. Eagen, E.J. Miller, A.K. Rice, T. Parsons made contributions to theorizing and operationalizing the systems view to management and organizations.
The classical and management science perspectives
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An open system may attain a state where the system remains in dynamic equilibrium through the continuous inflow of materials, energy, and information.
• Feedback: The concept of feedback is important in understanding how a system maintains a steady state. Information concerning the outputs or the process of the system is fed back as an input into the system, perhaps leading to changes in the transformation process and/or future outputs. Feedback can be both positive and negative, although the field of cybernetics is based on negative feedback. Negative feedback is informational input which indicates that the system is deviating from a prescribed course and should readjust to a new steady state.
• Hierarchy: A system is composed of subsystems of a lower order and is also part of a suprasystem. Thus, there is a hierarchy of the components of the system.
• Internal Elaboration: Closed systems move toward entropy and disorganization. In contrast, open systems appear to move in the direction of greater differentiation, elaboration, and a higher level of organization.
• Multiple Goal-Seeking: Social systems appear to have multiple goals or purposes. Social organizations seek multiple goals; they are composed of individuals and subunits with different values and objectives.
• Equifinality of Open Systems: In mechanistic systems, there is a direct cause and effect relationship between the initial conditions
In society, there are groups that interact with each other. They may be families, churches, government agencies, or anything in between. Those groups can be defined as systems, and in the systems perspective that is what they are referred to (Hutchison, 2017). In the 1960s, Ludwig von Bertalanffy developed the general systems theory in relation to biology, but it was widely publicized and used for various subjects (Hutchison, 2017). Hutchison (2017) summarized Bertalanffy’s theory by saying, “any element is best understood by considering its interactions with its constituent parts as well as its interactions with larger systems of which it is a part.” (p.
Many organizations structure themselves in a traditional and recognizable way using a hierarchy. The dictionary definition of hierarchy is a series of ordered groupings of people or things within a system. Hierarchy describes reporting levels and the status of people in the structure. This structure has lots of employees involved; it is used in large retail shops for example Tesco.
1. System Thinking: System thinking is nothing but instead of focusing on only one particular issue, we have to analyze and try to understand the entire system on the whole. With this kind of analyzation, we can easily find a solution to the problem as the problems are not confined to only a particular area or time. We might find a solution for a particular issue, somewhere in the whole system by analyzing the entire system completely. We should try to relate the actions and the consequences on the whole as the issues occur at different time levels, not confined to only one particular time level. We have to have knowledge of the relation between different departments of an organization and the relation between them and the functionality between the departments as to how they are related in an organization. We generally focus on only one particular issue rather than seeing the bug picture and that shouldn’t be done. In system thinking we analyze the big picture.
A complicated system is one in which the outcome or the result of the system is predictable. And where
A system is a set of interrelated parts. Systems theory assumes that a system must be understood as a whole, rather than in component parts. It is a way of looking at the world where all the objects are interrelated with one another. Many family systems are addressed in the movie Little Miss Sunshine.
A system is “A set of interrelated and interdependent parts arranged in a manner that produces a unified whole” (robbins 2006), and Systems theory is the
In order for any organization to be successful, they must find effective ways to change systems and policies that are ineffective in creating a successful environment. A system consists of four things, elements, attributes, internal relationships, and the system environment. The systems theory is transdisciplinary study of the abstract organization of phenomena, independent of their substance, type, or spatial or temporal scale of existence (Heylighen & Joslyn, 1992). The study investigates all the principals common to all complex bodies, and the models which can be used to describe them. Von Bertalanffy (1971) was the creator of the “system” concept, he developed this idea as an answer to the limitations of individual disciplines in addressing complex social issues (Mitchell, 2005). The underlining principal of this theory is that an organization consists of multiple, interdependent parts that collectively form more than the sum of their parts. Developed from the systems theory, are three separate theories with the basis of each being the systems theory. The activity theory considers the entire program versus just one single sector, it sees the operation as a whole instead of sub departments, it combines both micro and macro elements of the organization. The chaos theory does not mean a chaotic hectic situation, rather a situation where there appears to be little to no order, there really is a hidden underlying order. The complexity theory is
Law of mass action ( Le Chatlier’s Law) – A system at equilibrium responds to a stress in such a way that it relieves that stress.
The two systems are such close partners that they are explored together in this chapter
For a jumping off point we start with the smallest example of randomness found in nature: the atom. The Second Law of Thermodynamics describes a system beginning with a large but already dissipated amount of energy coming from the breakdown of chemicals in the sun and ending when that energy disperses at the level of each tiny atom whose 'random' movement is propelled by that energy.(10)
“If not enough change is allowed to occur, the system is said to be closed.”(Becvar & Becvar, 1999, p. 23) While there is no type of system which is entirely closed, there are some systems that lack beneficial energy or input to stay balanced.
The System Theories focused attention on organizations as 'systems ' and on the complexity and interdependence of relationships of their inter-related sub-systems. This approach attempted to synthesize the classical approaches (organizations without people) with the later human relations approaches that focused on the psychological and social aspects ( 'people without organizations).
The General Systems Theory (GST) came about as an effort to describe the systems approach, born from the biological concept of the organism developed in the first part of the 20th century (Von Bertalanffy, 1972). In contrast to the mechanistic systems which are closed and have a direct relationship between a cause and its effect, a biological or social system is open, operating on a principle of equifinality, where regardless of the starting point, the objective can be achieved (Kast & Rosenzweig, 1972). Any system will achieve equilibrium, but an open system can reach a steady state by accessing resources from outside itself (Kast & Rosenzweig, 1972). The underlying assumptions of GST rely on the organization of a company resembling the inner workings of an organism. However, subgroups within organizations can act independently of the the whole, in
Systems thinking is a method of thinking that looks at the interconnectedness between different elements rather than a linear cause and effect approach and sees patterns of change rather than fixed “snapshots”. In essence it is a view on the “whole picture” (Anderson, R 1994).
General system theory focuses on the interaction or the relationships between components that contribute to the system as a whole.