2. Definition of System in Organization :
• The term system may be defined as a set of
interrelated elements that operate collectively to
achieve some common purpose or goal.
• For example: Human body is a system, consisting of
various parts such as head, hands, and legs and so
on. The various body parts are related by means of
connecting networks of blood vessels and nerves.
• This systems has a main goal which we may call
“living”. Thus a system can be described by
specifying its parts, the easy in which they are
related, and the goals which they are expected to
achieve.
3. • A business is also a system where economic
resources such as people, money, material,
machine etc. are transformed by various
organizational processes such as production,
marketing, finance…etc. into goods and services.
• “A System may be defined as a set of elements,
joined together to achieve a common objective”
• Systems have input, processes, outputs and
outcomes, with ongoing feedback among these
various parts. If one part of the system is
removed, the nature of the system is changed.
4.
5. Elements of System:
• 1. Outputs and Inputs
• 2. Processor(s)
• 3. Control (Decision Making Subsystem)
• 4. Feedback
• 5. Environment
• 6. Boundaries and Interface
6. Outputs and Inputs:
• Inputs are the element (material, human resources
and information) that enters the system for
processing.
• A major objective of a system is to produce an
output that has value to its user. Whatever the
nature of the output (goods, services or information)
it must be in line with the expectations of the
intended user.
• A system feeds on input to produce output in much
the same way that a business brings in human,
financial and material resources to produce goods
and services.
7. Processor(s):
• The processor is the element of a system that
involves the actual transformation of input into
output.
• It is the operational components of a system.
Processors may modify the input totally or
partially depending on the specifications of the
output.
• This means that as the output specifications
change so does the processing.
8. Control:
• The control element guides the system. It is the
decision‐making subsystem that controls the pattern
of activities governing input, processing and output.
• In an organizational context, management as a
decision making body controls the inflow, handling
and outflow of activities that affect the welfare of the
business.
• In a computer system, the operating system and
accompanying software influence the behavior of the
system.
• Output specifications determine what and how
much input is needed to keep the system in balance.
9. Feedback:
• Control in a dynamic system is achieved by
feedback. Feedback measures output against a
standard in some form of cybernetic procedure that
includes communication and control.
• CYBERNETICS is the science of communication and
control theory that is considered especially with the
comparative study of automatic control systems.
• Output information is fed back to the input and/or
to management (Controller) for careful
consideration. After the output is considered against
performance standards,
10. • changes can result in the input or processing and
consequently, the output.
• Feedback may be positive or negative, routine or
informational.
• Positive feedback reinforces the performance of
the system. It is routine in nature.
• Negative feedback generally provides the
controller with information for action
11. Environment:
• Environment is within which an organization
operates.
• It is the source of external elements imposed on
the system. In fact, it often determines how a
system must function.
• For example, the organization’s environment,
consisting of vendors, competitors, and others
may provide constraints and consequently,
influence the actual performance of the business.
12. Boundaries and Interface:
• A system should have defined by its boundaries
– the limits that identify its components,
processes and interrelationships when it
interfaces with another system.
• For example, a teller (ATM) system in a
commercial bank is restricted to the deposits,
withdrawals and related activities of customers
checking and savings accounts
13. Types of System:
• 1. Conceptual and Empirical
• 2. Natural and Manufactured
• 3. Social, People-machine and Machine
• 4. Open and Closed
• 5.Permanent and temporary
• 6.Stationary and non- stationary
• 7. Sub –system and super- system
• 8. Adaptive and Non- adaptive
• 9. Simple and complex
• 10. Stable and Dynamic
• 11.Deterministic and Probabilistic
14. • 1. Conceptual and Empirical
• Philosophical questions tend to be conceptual in
nature. This means that they cannot be
answered simply by giving facts or information.
A concept is the object of a thought, not
something that is present to the senses.
• The word “empirical” means “gained through
experience.” Scientific experiments and
observation give rise to empirical data. Scientific
theories that organize the data are conceptual.
Historical records or results of sociological or
psychological surveys are empirical. Making
sense of those records or results requires the use
of concepts.
15. 2.Natural and Manufactured
• Natural system: Natural systems are related to
nature. A natural system is one that exists in
nature, independent of any human involvement.
The natural system consists of all the physical
and biological materials and their processes
Example: Ecology system, solar system, water
system.
• Manufacture system: People make them.
Example: transport system, defense system,
production, accounting system etc
16. 3. Social, People-machine and Machine
• System made up of people are pure social System.
For example : political parties.
• Human Machine Systems: They both perform some
of the activities in the accomplishment of a goal
(making a decision). The Machine elements,
hardware and software are relatively closed and
deterministic. Example: Manufacturing industry.
• Pure Machine System would have to obtain their
Own inputs and maintain themselves. For Example :
Electronic power generations System.
17. 4. Open and Closed
• Open system interacts and influence with
environment constantly.
• For example : Marketing, Communication and
Forecasting
• Closed System doesn’t interact or react with the
environment at all.
• For Example: Accounting System, cash , stock.
18. 5.Permanent and temporary
• Permanent System: These systems exist for a
relatively long period of time. System made by
people is generally permanent.
• Temporary System: The systems are design to
stay for a specific period of time. These are
important for the accomplishment of a specific
task in business and for research in science
19. 6.Stationary and non- stationary
• Stationary system: A Stationary system (fixed) is one
whose operations either do not differ much or in
repetitive cycles.
• Example: the automobile factory, government
agency, supermarket store operation, high school
etc.
• Non-stationary system: It is one whose properties
and operations vary significantly or in repetitive
cycle.
• Example: advertisement organization, defense
system, research and development.
20. 7. Sub –system and super- system
• Sub – system: Each system is nested in a large
system. The System in the hierarchy that were
most interested.
• Super – system: Super system is a term that has
atleast two uses :
• - As a opposed to subsystem
• - To donate any extremely large and complex
system,
21. 8. Adaptive and Non- adaptive
• Adaptive System: If a system has the ability to
change itself or its environment in order to survive,
it is known as an adaptive system.
• Adaptation is required to improve functionality of
survivor.
• Example: High-level living organism such as animal
and human.
• Development is also based on adaptation system.
• Successful business that adapts to change in
environment is also an example of adaptive system
22. • Non adaptive system:
• These systems do not react or adapt to the
environment. It is not able to change in response to
changes in the environment.
• 9. Simple and complex
• Simple System: It has few components and
relationship or interaction between elements is
complicated.
• Complex : Complex system has many component
that are highly related and interconnected.
23. 10. Stable and Dynamic
• Stable System:
• It undergoes very little changes over time.
• Dynamic System:
• It undergoes rapid and constant change overtime.
• 11.Deterministic and Probabilistic :
• A deterministic system operates in a predictable
manner wherein the interaction among the parts is
known with certainty.
• The probabilistic system can be described in terms
of probable behavior, but a certain degree of error is
always attached to the prediction of what the system
will do
24. Deterministic and Probabilistic :
• The system can be classified into different categories
based on perfectibility of output & degree of
information exchange with the environment.
• A system is called deterministic when the inputs are
processed so as to achieve 100% output, the system
is known as deterministic system where the output
certainty is completely predictable.
• A deterministic system is one in which the
occurrence of all events is known with certainty.
• In such a system, given a description of the system
state at a particular point of time of its operation,
the next state can be perfectly predicted.
25. • Example: The solar system is a deterministic
system because; the movement of planet can be
predicted to high degree of precision.
• This system is based o specific rules and
therefore the outcome can be predicted. A
computer program performs specific operation
according to predefined set of rules and
conditions.
26. • A system is said to be probabilistic when the
output can be estimated but not confirmed.
• A Probabilistic system is one in which the
occurrence of events cannot be perfectly
predicted.
• Through the behavior of such a system can be
described in terms of probability, a certain
degree of error is always attached to the
prediction of the behavior of the system.
Example: Share market system, weather forecast
27.
28. Open and Closed System:
• An open system is one that interacts with its
environment and thus exchanges information,
material, or energy with the environment, including
random and undefined inputs.
• Open systems are adaptive in nature as they tend to
react with the environment in such a way, so as to
favour their continued existence. Such systems are
‘self organizes’, in the sense that they change their
organization in response to changing conditions.
• Example: All living systems (e.g. human, plants and
cell etc.) are open systems.
29. • They attempt to maintain equilibrium by
homeostasis, i.e the process of adjusting to keep
the system operating within prescribed limits.
• An open system is one which has several
interfaces with its environment.
• It allows interface across its boundary. It
receives inputs and delivers outputs to the
outside.
• The library system falls into this category, since
it must adapt to the changing demands of the
user.
30. Characteristics of an open system:
• I. Input from outside: Open systems are self-adjusting
and self-regulating; it takes input from its environment.
• II. Process, Output and Cycles: Open system produce
useful output and operate in cycles.
• III. Entropy: All dynamic system run over some time and
results in loss of energy.
• IV. Equifinality: This term implies that goals are
achieved through the different actions and a variety of
path.
• V. Differentiation: Open systems have a tendency
towards an increasing specialization of functions and a
greater differentiation of their components.
31. • A closed system is self-contained one that does not
exchange material, information, or energy with its
environment.
• Though relatively, such systems are rare in business
world. Closed systems sustain their operation only as
long as they have adequate regulatory information and
do not need anything from the environment.
• A closed system is one that is isolated from
environmental influences. In actual, a closed system is
uncommon.
• In system analysis, organizations, applications, and
computers are invariably open, dynamic systems
influenced by their environment.
• The concept of closed system is more relevant to
scientific systems than to social systems.
• Example: A chemical reaction in a sealed insulated
container