The General System Theory For Understanding Modern Organizations

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.

Classical organization theory evolved during the first half of this century. It represents the merger of scientific management, bureaucratic theory, and administrative theory.

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.

The Organizations have evolved over the years and from the Concept of people management they slowly have moved towards the concept of System managements and this is how an organizations needs to aim to grow and to succeed in growing complex market environment.

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

The natural and the rational perspectives ignored the element of the external environment with the assumption that organizations existed as closed systems. On the contrary, the Open systems approach incorporates the aspect of the external factors that have an effect on the organization (Hardy, 1983, p. 341). The open systems perspective depict that organizations exist as a jumbled collection of interrelated systems linked by activities of the participants that are brought together by various institutional environments (Scott, 2003).

A concept we learned about in Business Leadership that relates to the main point in this book is control systems. We looked at the importance of control in management and learned about various different systems. In this book, systems are shown to greatly help customer service. Systems are predetermined ways to get a specific result and still ensure consistency. Andrew, the plant manager said “Systems give you a floor, not a ceiling”. Thus, a system is the sort of thing you build on, a starting point. An external control measure, for example, involves

The open systems model can be used to diagnose these problems, identify their causes, find the best solutions, and provide recommendations (Harrison, 2004).

Introduction: This business analysis will define the various problems related to the manufacture of the Luon Pants made by Lululemon Atheltica Inc. The Luon product was pulled because of a higher ration of sheerness, which made the pants. Lululemon Inc. has also been negligent with handling customer service at local retail outlets. A More so, the corporate leadership at Lululemon Inc. has been negligent in acknowledging heavier weight consumers that are not part of the “physically fit” demographic. A systems analysis of these various parts of the Lululemon corporation that need to be resolved to return the company to higher performance quality in pant materials, corporate leadership, and customer service.

To begin understanding how organizations learn from and adapt to change it is important to understand the concept of systems thinking. “Systems thinking is the process of understanding how various systems influence one another within a complete entity (or larger system) (“Are You Living in a World of Chaos,” 2016). Senge uses the example of a rainstorm to explain these relationships because it is only when we consider the different events that occur before, during and after the storm will rainstorms make any sense (Senge, 1990, p. 6). Systems thinking is important for leaders to comprehend because it involves looking at the effects decisions might have across a business or organization. As I discovered during this 8-week course, there is a cause and effect relationships to our actions and it is important for leaders to pay close attention to the effect their decisions have across an organization.

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

Bobis (2011) further implied that when leader’s mastered system thinking language, their contribution to an organization as a whole was fostered because system thinking is what is needed to operate from the sideline which gave allowance for innovation by reviewing the company in a linear perspective, while embracing the chaos theory through exploration when organizations dealt with complex system changes in the initial stages of making a difference in organizational outcomes.

An open system approach is that which views an organization as an integration of different parts