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System Theory

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Topic 1: Systems theory, efficiency and effectiveness
Effective management is ‘making the right decisions and successfully implementing them.’ Contrast the concept of effectiveness with the concept of efficiency. Describe basic systems theory as it applies to organizations and discuss the concepts of efficiency and effectiveness in terms of inputs, throughputs (or ‘the transformation process’) and outputs. Include some examples in your discussion.

Abstract Efficiency means doing things right, while effective means doing the right things. In management, managers will strive for low resource waste (high efficiency) and high goal attainment (high effectiveness). Systems theory is an extension of the humanistic perspective that describes …show more content…

Feedback also comes from the larger environment of the organization like influences from government, society, economics, and technologies. This overall system framework applies to any system, including subsystems (departments, programs, etc.) in the overall organization.
Systems theory may seem quite basic. Yet, decades of management training and practices in the workplace have not followed this theory. Only recently, with tremendous changes facing organizations and how they operate, have educators and managers come to face this new way of looking at things. This interpretation has brought about a significant change (or paradigm shift) in the way management studies and approaches organizations.
The effect of systems theory in management is that writers, educators, consultants, etc. are helping managers to look at the organization from a broader perspective. Systems theory has brought a new perspective for managers to interpret patterns and events in the workplace. They recognize the various parts of the organization, and, in particular, the interrelations of the parts, example, the coordination of central administration with its programs, engineering with manufacturing, supervisors with workers, etc. This is a major development. In the past, managers typically took one part and focused on that. Then they moved all attention to another part. The problem was that an organization could, example, have a wonderful central

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