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Kathmandu University
1 March 2010
SYSTEMS APPROACH TO MANAGEMENT
• Presenter: Rebat Kumar Dhakal
Presentation outline

1. 1. System
2. 2. Systems theory
3. 3. Systems approach to
management
4. 4. General systems theory
5. 5. Social systems theory
1. SYSTEM

"No longer do we see the world

in a blind play of atoms, but
rather a great organization.”
- Harper Perennial, 1987
 SYSTEM
 A set of things or parts forming a whole.
 A system is a composition of several
components working together to
accomplish a set number of objectives.
- Ernest Madara (2008)
 A system can be biological, physical or
social.
 Ecosystem, solar system, a business or an
organization
Systems exist at all levels
persons
families
organizations
communities
societies
cultures and so on.
 Holon*

Each social entity whether large or

small, complex or simple, is a
holon (Greek = expresses the idea that each
entity is simultaneously a part and a whole).
WHOLE > SUM OF ITS PARTS
The whole becomes greater than the sum
of its parts because the whole includes
elements, which cannot be broken down
and applied to individual members.

The properties of these letters, when

considered together can give rise to meaning
which does not exist in the letters by
themselves.
 A system consists of four things
I. Objects – the parts, elements, or variables
within the system. These may be physical
or abstract or both.
II. Attributes – the qualities or properties of
the system and its objects.
III. Internal relationships among its objects.
IV. Environment – systems exist in an
environment.

Thus, a system is a set of things that affect one

another within an environment and form a larger
pattern that is different from any of the parts.
Characteristics of a System
a) organization: there is an orderly way in which
things work and operate
b) goal directedness: there are a number of goals or
objectives to be accomplished
c) Integration: a way in which things are tied
together
d) Interaction: a way in which the components
interact
e) Interdependence: a way in which the various
components depend on each other
+ others like evolving/
adaptability/ hierarchy/
 Elements of a System
a) Input –the element that initiates an activity e.g.
the data entry through the devices such as
keyboard, mouse and scanner etc.
b) Throughput (Process) – this element
transforms or manipulates the input into results
(central processing unit within a computer system)
c) Output- the ultimate result or product after
processing. e.g. information for decision making
+
Feedback Environment
Control Boundary
 Types of Systems
a) Open vs. closed systems
b) Adaptive system (self organizing system or
cybernetic system)
c) Physical vs. abstract systems
d) Deterministic vs. probabilistic systems
e) Natural vs. man-made system
f) Mechanistic vs. biological systems
g) Information system (management
information system)
h) controlled (cybernetic) or uncontrolled
An organization as a system
 An organization is an open system
that brings together people to
undertake activities for achieving an
objective which can be profit-oriented
(business) or charity-oriented e.g. local
authority.
 The organizations are made up of people in
different departments that are governed by known
policies and procedures.
An organization takes in raw materials, energy and
labor and through its production systems transforms
or adds value to these to produce goods / services.
It is obligatory for the management to control the
various operations by collecting feedback from
customers to remain relevant and where necessary it
may have to enhance performance or take corrective
actions if the results are below expectations.

Each department has a boundary of functions. A change

in the environment can have a profound impact upon the
entire system.
 Systemic Thinking
 Using the mind to recognize pattern,
conceive unity, and form some coherent
wholeness – seeking to complete the
picture.
 Comprehension of the whole/part
nature of life is the central tenet of
systemic thinking.
 System thinking focuses on causes,
rather than occurrences around
organizations in solving problems
effectively.
 Subsystems in an Educational Enterprise
- Banathy (1987)

The learning experience subsystem: the cognitive

information processing of the learner
.

The instructional subsystem: the production of the

environment or opportunities for learners to learn by the
instructional designers and teachers
.

The administrative subsystem: decision making of resource

allocation by the administrators based on the instructional
needs and governance input
.

The governance subsystem: the production of policies which

provide directions and resources for the educational
enterprise in order to meet their needs by ‘owners’
 2. SYSTEMS THEORY
Basic idea : objects in the world are
interrelated to one another.
It provides a framework by which groups
of elements and their properties may be
studied jointly in order to understand their
outcomes.
The fundamental systems-interactive model of
organizational analysis features the continual
stages of input, throughput, and output .
System Model. Littlejohn (1999)
Input Process Output
Human Activities
•Concentration of Rise in Global
•burning fuels
GHG increases Temperature
•deforestation
•Unhealthy GHE (Global warming)
•Industrialization
behavior
Solar Energy
Outcome
System Model Of Climate
Change Climate Change

•Contamination
Health Effects
•Temperature related Pathways Impact
illness and death •Transmission
dynamics •Regional weather
•Air pollution related
change
•Water and food
•Heat waves
borne disease •Changes in agro-
•Vector borne disease •Extreme weather
-ecosystem hydrology •Temperature
and water shortage •Socio-economic •Precipitation
•Mental, nutritional and and demographic
other health effects disruption
Climate Change& Human Health. NYSoCC, 2008.
 Ideas of Systems View
all phenomena can be viewed as a web
of relationships among elements.
.

all systems, whether electrical,

biological, or social, have common
patterns, behaviors, and properties that
can be understood and used to develop
greater insight into the behavior of
complex phenomena.
Systems theory comes from the GST proposed
by Ludwig von Bertalanffy.
The systems view investigates the
components of the phenomena, the
interaction between the components, and the
relation of components to their larger
environment.
Organizations are complex social systems;
reducing the parts from the whole reduces
the overall effectiveness of the organizations.
 The systems approach
Components of the organizational
concepts (systems approach) have been
used to manage armies and governments
for millennia. However, it was not until
the Industrial Revolution of the 19th and
20th centuries that formal recognition of
the "systems" approach to management,
philosophy, and science emerged.
(Whitehead 1925, von Bertalanffy 1968)
Four major concepts underlying systems approach
Specialization: A system is divided into smaller components
allowing more specialized concentration on each component.
Grouping: Related (sub)disciplines are grouped to avoid
generating greater complexity with increasing specialization.
Coordination: The interactions among the components are
coordinated.
Emergent properties: Dividing a system into subsystems
requires understanding the "emergent properties" of a
system; i.e., recognizing why the system as a whole is greater
than the sum of its parts. E.g. two forest stands may contain
the same tree species, but the spatial arrangement and size
structure of the individual trees will create different habitats
for wildlife species. In this case, an emergent property of each
stand is the wildlife habitat.
 3. Systems Approach to Management
It views a company as an
interconnected purposive system
that consists of several business
sections.
It is the study of a firm in its totality
so that the men and material
resources of the firm can be
organized to realize the firm's
overall objectives efficiently.
Flow, Process, & Response in Business Systems
The collaborative working of input and
output factors = the flow in a system.
The processes consist of several subsystems
that are interconnected by procedures.
The response/feedback focuses on the
information which is utilized for executing
certain operations. The information is the
know-how that is fed in men and machines.
These inputs aid in correcting the errors
found in the processes.
 The systems approach to management is
based on GST – the theory that says that to
understand fully the operation of an entity,
the entity must be viewed as a system which
requires understanding the interdependence
of its parts.
It implies that every manager should be much more
precise about decision-making and information
flow.
First a detailed systems study will be necessary to
decide on the best objectives and then subsidiary
systems must be set up to realize these objectives
efficiently.
The management system is
composed of a number of parts
that function interdependently
to achieve a purpose. It is an
open system. It interacts with its
business environment which
includes customers, suppliers,
competitors, and government.,
7-S Model
A framework for analyzing organizations and their
effectiveness.
1. Strategy;
2. Structure;
3. Systems;
4. Style;
5. Skills;
6. Staff; and
7. Shared values.
To improve management of an organization, one has to
pay attention to all of the seven elements at the same
time.
www.1000ventures.com/.../mgmt_system_approach.html
 The System approach views the
organization as a unified,
purposeful system composed of
interrelated parts. This way the
manager can look at the
organization as a whole or part of
the larger outside environment.
Activity of any part affects all
other parts of the organization.
- Stephen Rampur, 2009.
 4. General Systems Theory
 Nothing can be understood in isolation but must be
seen as part of a system.
 Includes the narrower field of social systems, is a
cross-disciplinary body of scientific thought that
developed during the 20th century.
 General systems theory can be defined as: system in
which the elements are in exchange, and which are
bounded constitute a system, which operates within
an environment.
 System change may be natural, planned or managed.
Management should make an attempt to ensure that
a system fits in with a super-system in a way that
works appropriately to accomplish some end.
Background
GST was originally proposed
by Ludwig von Bertalanffy in
1928. He proposed that a
system is characterized by
the interactions of its
components and the
nonlinearity of those
interactions.
Contd.
Contd. Background
 Since Descartes, the "scientific method" had progressed
under two related assumptions. A system could be
broken down into its individual components so that each
component could be analyzed as an independent entity,
and the components could be added in a linear fashion
to describe the totality of the system.
 Bertalanffy proposed that both assumptions were
wrong. On the contrary, a system is characterized by the
interactions of its components and the nonlinearity of
those interactions. In 1951, von Bertalanffy extended
systems theory to include biological systems and three
years later, it was popularized by Lotfi Zadeh, an

electrical engineer at Columbia University.
o

- McNeill and Freiberger (in Walonick1993)

"Humanistic" Features of General Systems Theory
It also
The impliesGST
Bertalanffian thatis ethical
and ecological because it aims at
everybody tends to treat
increasing the awareness in
life human
every with reverence,
of the need and
of being
functionally interconnected with
also tend to treat each
each other, with his/her
other with
community, dignity.
with the whole
humanity.
Social Systems Perspectives
 A philosophical viewpoint on the relationship of
persons with their social environment.

 A social system is composed of persons or

groups who interact and mutually influence
each other’s behavior.

 A social system is a bounded set of interrelated

activities that together constitute a single
entity.
 The Social Systems Approach
 The social systems approach encompasses both
holistic (group/ top-down) and atomistic
(individual/bottom-up) views at once.
 The holistic view implied “downward” causality,
while the atomistic view implied “upward”
causality.
 Holistic Viewpoint:
◦ The whole determines the actions of its parts.
◦ People are determined by society.
 Atomistic Viewpoint:
◦ The whole is the sum of its parts
◦ Persons determine the society.
 5. Social System Theory
A social system is a set of inter-related and
inter-dependent components
People, Families, Groups, Organizations,
Communities, etc are all OPEN SYSTEMS
System BOUNDARIES separate one system
from the next– and tension occurs at the
boundary.
Social systems are characterized by
COMPLEXITY, meaning that the
possibilities of their structures and
capacities to change are immeasurable.
 Social System Theory

* Emphasis is placed on the

“root causes” of social
problems

* Social justice is the ultimate

goal
Social System Theory is “holonistic”
requiring:
◦ Specification of the focal system
◦ Specification of the units that
constitute that holon
◦ Specification of the significant
environmental systems
◦ Specification of one’s own position
relative to the focal system
Process Factors affecting social systems
A change in one part of the system will impact
changes in other parts of system
Two internal processes affecting social systems :
Morphostasis refers to those
processes that help the system
maintain itself, whereas
morphogenesis refers to those
processes that help the system change,
grow, more elaborate.
(Ritzer 2000,p.319)
 Changes in Social Systems
Changes in systems may come about in a
variety of ways, for example, by accessing
and influencing the elite decision-makers.
Changes can also come about through
conflict and setting new goals, directions,
and values. Changes occur as individuals or
groups move away from center or towards
the center as well, that is, mainstream and
deviant locations in a system are possible.
 Chaos Theory
For a system to function as a system, rather than a
collection of parts, it must have ways of self-organizing
and even directing behavior. ... A wild ecosystem is
chaos driven. An organism or organization is purpose
driven. ...
.

Chaos theory concerns the analysis of

unpredictable systems that are extremely sensitive
to initial conditions. One important example of a
chaotic system is climate. A tiny inaccuracy in a
single measurement of a chaotic system—such as a
temperature variation of a fraction of a degree—
can produce large errors in solutions to the
model’s equations and predictions.
Microsoft ® Encarta ® 2009. © 1993-2008.
 In a 1980 lecture, cosmologist Stephen
Hawking pointed out that Chaos
theory is an attempt to explain and
model the seemingly random
components of a system.
 One of the most important discoveries
from chaos theory is that a relatively
small, but well-timed or well-placed
jolt to a system can throw the entire
system into a state of chaos.
Approaches to the Study of Systems

 A cross-sectional approach
deals with the interaction
between two system.

 A developmental approach
deals with the changes in a
system over time.
Approaches to evaluating subsystems
 A holistic approach examines the system as
a complete functioning unit.
 A reductionist approach looks downward
and examines the subsystems within the
system.
 The functionalist approach looks upward
from the system to examine the role it plays
in the larger system.
All three approaches recognize the existence
of subsystems operating within a larger
system.
 Equilibrium
 When all forces in a system are balanced to the
point where no change is occurring, the system
is said to be in a state of static equilibrium.
 Dynamic (steady state) equilibrium exists when
the system components are in a state of change,
but at least one variable stays within a specified
range.
 Homeostasis is the condition of dynamic
equilibrium between at least two system
variables. Kuhn (1974) states that all systems
tend toward equilibrium, and that a
prerequisite for the continuance of a system is
its ability to maintain a steady state.
 SUMMING UP
The concept of system appears throughout the
social and natural sciences and has generated a
body of literature of its own (‘general systems
theory’). A system is any pattern of relationships
between elements, and is regarded as having
emergent properties of its own, over and above
the properties of its elements. The system is seen
as possessing an inherent tendency towards
equilibrium and the analysis of systems is the
analysis of the mechanisms which maintain
equilibrium, both internally and externally, in
relation to other systems.
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