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# Systems theory

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“When Simplicity is broken up, It is made into instruments. Evolved individuals who employ them, Are made into leaders. In this way, the Great System is United."

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### Systems theory

1. 1. “When Simplicity is broken up, It is made into instruments. Evolved individuals who employ them, Are made into leaders. In this way, the Great System is United." - Lao Tzu
2. 2. What is a “SYSTEM”?A system is a set of two or more interrelated elements with the following properties: 1. Each element has an effect on the functioning of the whole. 2. Each element is affected by at least one other element in the system. 3. All possible subgroups of elements also have the first two properties. (Russell Ackoff, 1981, pp. 15-16.)
3. 3. SYSTEM Man made Natural Eg:Electric system,computer system etc Eg:solar system,digestive system etc SYSTEM Open system Closed system It is where there is exchange of materials, energies, Or informations between the system and the environment . It is where there is NO exchange of materials, energies, Or informations between the system and the environment .
4. 4. So how are we going to deal with this different types of systems? SYSTEMS THEORY General Systems Theory was proposed in the 1940's by the biologist Ludwig von Bertalanffy and furthered by Ross Ashby. Other types of systems theory •Biochemical systems theory •Dynamical systems theory •Ecological systems theory •Modern systems theory
5. 5.  A way of studying a system as one unit, instead of individual parts.  By examining a system as a whole, it is easier to understand how each part contributes to the overall mission. “Systems theory can reasonably be considered a specialization of systems thinking, a generalization of systems science, a systems approach.”
6. 6. What are the basic elements of any system?  All systems have
7. 7. Input is the term denoting either an entrance or changes which are inserted into a system and which activate/modify a process Output is the term denoting either an exit or changes which exit a system PROCESS: Perform a series of mechanical or chemical operations on (something) in order to change or preserve it Feedback- Information about reactions to a product, a person's performance of a task, etc., used as a basis for improvement. Throughput: Work done on those resources used to produce a product.
8. 8.  Hierarchy: , that is, systems consist of subsystems(SECONDARY SYSTEM) and systems operate within environments .  Boundaries are the interface between a system and its subsystems or a system and its environment  goal seeking: that is, they move in the direction of goal achievement  Cybernetics: is the study of feedback & control.For a system to work properly, it must have control mechanisms.Control mechanisms  Accept information about system outputs  Evaluate information using goal related criteria  Use the feedback as additional inputs
9. 9. •Input: number of hours worked • pay rates of each employee. Example THROUGH PUT:The work done by the computer to calculate the amount of pay, and the payroll taxes. •The paychecks • payroll reports. FEEDBACK: Check figures provided to show that the calculations were correct (number of employee paychecks processed, total payroll paid, etc.)
10. 10. Properties of Systems  EQUILIBRIUM: A system must maintain balance or homeostasis if it is to survive.  ADAPTABILITY: A system should survive in the changing environment  INTERDEPENDENCE That is, a change in one part of the system will result in a change in another part of the system (propagation of change).  INDEPENDENCE Independence is where a particular part of the system has some responsibility for some functionally related activity.
11. 11.  Systems working well experience synergy where the total system output are greater than the sum of all inputs  Hierarchies permit complex sets of sub-systems.A complex system is difficult to understand as a whole. Therefore it is better to divide the system into smaller units .Sub- systemscan be viewed as modules, elements, organizational departments. Input Output
12. 12. Basic Principles of Systems Theory 1. A system is greater than the sum of its parts. 2. Every system, living or mechanical, is an information system 3. A system and its environment are highly interrelated. 4. The greater the degree of wholeness in the system ,the more efficient the system 5. The greater the degree of systamization,the more efficient the opreation of the system 6. The effectiveness of the system depends on the optimization of the system 7. A highly complex system may have to be broken into subsystems so each can be analyzed and understood before being reassembled into a whole. 8. Application of system theory can guide decision makers in understanding ,modifying,and controlling the organisation,actions.
13. 13. THE CONTIGENCY THEORY The contingency approach in management says that:  There is no one particularly best/fixed method to organize and manage  people, the tasks and structure of an organization.  The environment (external and internal) has an impact on the organization  and therefore managers must be flexible in order to react to the changes in the environment.  As technology changes and advances, so must managers.
14. 14. •As to how the parts of the systems theory are organized should depend on the •unique needs of an organization. •Managers should therefore look at the contingencies in the environment while •applying the systems theory of management in their organizations. •This would help them to assess the uncertainities that could arise and also •process the required decisions to be prepared for the uncertainities.
15. 15. REFERENCE:  Businessdictionary  Practical Systems Thinking By Alan Waring  Introduction to the Systems Approach By Lawrence Lipsitz  http://pespmc1.vub.ac.be/macroscope/chap2.html  The Delft Systems Approach: Analysis and Design of Industrial Systems By Hermanus Petrus Maria Veeke