The document discusses system theory and its application to organizational development. It provides an overview of key aspects of system theory including: - System theory views organizations as open systems that exchange with their environments. - Ludwig von Bertalanffy first described general systems theory in 1950 and Kenz & Kahn applied open systems theory to organizations in 1966. - Organizations can be analyzed using models like the congruence model, which depicts the organization as an input-output system transforming inputs from the environment, resources, and history into outputs like performance.

1. Assignment on-
“System Theory”
Course No# 504
Prepared for
Prof. Dr. Md Mosharraf Hossain.
Department of Management
University of Dhaka

2. Prepared By
Sonia Akter
Id No# 146

3. System Theory…………
Topic Outline:
Overview of System Theory.
Definition of System Theory
The Nature of System Theory
Congruence Among System Elements.
Sociotechnical Systems Theory &Open System
Planning. &
Open System Thinking

4. System Theory…………..
*A second foundation of organization development is system theory,
which views organizations as open systems in active exchange with
their environments.
*This section explains system theory, describe the characteristics of
systems, and shows how systems theory enhances the practice of OD.
*Ludwig von Bertalanffy first describes the principles of general
systems theory in 1950.
*Kenz & Kahn were the first to apply open systems theory to
organization in 1966.

5. System Theory……….
*Systems theory is one of the most powerful conceptual tools for
understanding the dynamics of organizations and organizational
change.
*Fagen defines system, “ As a set of objectives together with
relationships between the objects and between their attributes”.
*Von Bertalanffy refers to a system, “As a set of elements standing
in inter –action”14 .
*Hanna says, “ A system is an arrangement of interrelated parts”.
In summary, “System denotes interdependency, interconnectedness,
and interrelatedness among elements in a set that constitutes an
identifiable whole or gestalt.

6. The Nature of Systems………..
*Organizations are open system. Therefore, studying open systems leads
to a good understanding of organizations.
*Katz and Kahn and Hanna describes the following characteristics of open
System:-
i. All open systems are input-throughput-output mechanisms:
System take inputs from the environment in the form of energy,
information, money, people, raw materials and so on. They do something
via throughput, conversion that change the input and export products to the
environment in the form of output.
ii. Every system delineated by a boundary:
What is inside the boundary is system and what is outside the boundary is
the environment.
A good rule of thumb for drawing the boundary is that, “More energy
exchange occurs within the boundary than across the boundary”

7. Continued………………..
iii. Open systems have purposes or goals:
These purposes must align with purposes or need in the environment.
iv. Law of entropy:
It states that, “ All systems “Run down” and disintegrate unless they
reverse the entropic process by importing more energy than they use.
v. Informative system:
Information is important to systems in several ways. Feedback is
information from the environment about system performance. System
requires 2 kinds of feedback:
 Positive feedback &
Negative feedback.

8. Continued…………………….
vi. Open system is steady state or dynamic process:
Systems achieve a steady state or equilibrium point and seek to maintain
this equilibrium against disruptive forces either internal or external.
The nature or characteristics of open systems explain many phenomena
that are observed in organizations.

9. EE
EExExternal
Nature System Model
Sources of
Energy,
Materials.
Information,
Human
Resources.
Inputs
Transforming
Mechanism
Outputs Users
Internal Interface
Feedback Mechanism
External Interface
Feedback
Mechanism
Figure: A System in Interaction with its Environment

10. Congruence among system
Elements…….
*David Nadler and associates at Delta Consulting Group developed the
congruence model for understanding organizational dynamics and
change.
*This model depicts the organization as an input-throughput-output
system.
Input
Transforma
tion
Output
Open System Process

11. Continued…………………..
In this model,
The Major 3
inputs are:
1. The
environment;
Which
imposes
constrains and
opportunities
about what the
organization
can or can not
do.
2. Resources
available to
the
organization;
capital,
people,
knowledge
and
technology
3.History;
which consists
of memories of
past successes,
failures
important
events and
critical
decision which
still influence
behavior today

12. Continued…………………..
Outputs are performance at the total organizational level, unit/group
level and individual level.
The congruence model’s value is as an analytical tool for
1. Assessing the characteristics and functioning of each elements
and
2. Evaluating the “goodness of fit” or how well the elements “go
together”
In brief , The congruence model is an excellent diagnostic tool . System
model are essential for the practice of OD.

13. Figure: The Congruence Model Showing the
Input
Environment
Resources
History
Strategy
Work
Informal
Organization
People
Formal
Organization
Output
System
Unit
Individual
Organization as a System
Source: David A. Nadler. Champions of Change. P. 41

14. Sociotechnical system theory & open system
planning…………………..
Two major variations of open system theory are:
1. Sociotechnical System Theory(STS) and
2. Open System Planning.

15. Continued…………………..
*Sociotechnical System Theory(STS):
Sociotechnical System Theory(STS) was developed by Eric Trist, Fred
Emery and others at the Tavistock Institute in the 1950s.
The thesis of STS is that all the organizations are comprised of two
interdependent systems:
i. A social system and
ii. A technical system.
 And that changes in one system can affect the other system
STS is the principal conceptual foundation for efforts in work
redesign and organization restructuring.
There have been a number of principal developed to implement STS.
Principal Such as: Optimizing the social and technical system,
training group members in multi tasking skills and so on.

16. Open System Planning……………
*Open systems planning entails:
Scanning the environment to determine the expectations of external
organizations and stakeholders.
Developing scenarios of possible futures realistic and ideal.
Developing actions plans to ensures that a desirable future occurs.
Most OD practitioners engaged in redesign projects use a combination
of sociotechnical systems theory and open systems planning.
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