System Theory

SYSTEM
THEORY
REPORTER:
PRECIOUS PEARL J. AWACAY
Learning Objectives:
At the end of the session we will able to:

1. Identify the premises of the System Theory
2. Identify the different System Assumptions
3. Know the function of system theory
4. Apply the system theory on the reality
5. Identify the advantages and disadvantages of system approach
System Theory
The system theory is the transdisciplinary study of the

abstract organization of phenomena, independent of their
substance, type, or spatial or temporal scale of existence.
It is also a management methodology as it is a way of

analyzing and thinking about organizations and also an
alternative approach.
THE SYSTEMS THEORY
• focuses on understanding the organization as an open system that
transforms inputs into outputs.
• based on the work of a biologist, Ludwig von Bertalanffy.
• Kenneth Boulding, Richard Johnson, Fremont Kast, and James
Rosenzweig (other contributors).
• began to have a strong impact on management thought in the
1960s as a way of thinking about managing techniques that would
allow managers to relate different specialties and parts of the
company to one another, as well as to external environmental
factors.
The Premises of The System Theory
The systems theory puts forth the premise that
organizations, like living organisms, are made up of
numerous component subsystems that must work together in
harmony for the larger system to succeed.
Systems theory states that organizational success relies on

synergy, interrelations and interdependence between
different subsystems.
System Assumptions
Reigeluth, Bathany, and Olson (1993) described the
following assumption in terms of design:
"A systems view suggests that essential quality of a part
resides in its relationship to the whole.“
"The system and its parts should be designed from the
perspective of the whole system and in view of its
embeddedness in its environment."
System Assumptions
"The systems design notion requires both coordination and

integration. We need to design all parts operating at a
specific system level of the organization interactively and
simultaneously. This requires coordination. The requirement
of designing for the interdependency across all system
levels invites integration."
Classification of System Theory
Open systems Closed systems
Components of System Theory
CHARACTERISTICS OF SYSTEMS
THEORY
Communication
Provides for the flow of information among the
subsystems
Systems, subsystems and super system
Systems: set interrelated parts that turn inputs into
outputs through processing.
Subsystems: do the processing
Super systems: are other systems in environment.
Boundaries
The part of the system that separates it from its
environment.
The four types of boundaries involved in the process
are physical, linguistic, systematic and psychological
boundaries.
Goal-directedness
Systems are goal oriented and engage in feedback in order to
meet the goals of the organization.
Holistic view
Systems theory focuses on the arrangement of and relations
between the parts that connect them into a whole . The
mutual interaction of the parts makes the whole bigger than
the parts themselves
McKinsey 7-S Model
The 7-S model was originally used to analyze both large and
small firms by looking at their structure, offering a wider
explanation thorough Elements: strategy, structure, systems,
style, staff, skills, and shared values.
The Seven Elements
1. Strategy - Actions a company plans in response to or

anticipation of changes in its external environment.
2. Structure -Basis for specialization and coordination

influenced primarily by strategy and by organizational
size and diversity.
3. Systems -Formal and informal procedures that support

the strategy and structure.
4. Style - The culture of the organization.
5. Staff -Human resource management, the processes and efforts

used to develop managers, socialization, and the shaping of
basic management values.
6. Skills -These are the distinctive and core competencies of the

company.
7. Shared values -Also called super ordinate goals, these are the
central believes and attitudes, guiding concepts, and
fundamental ideas around which a business is built.
Advantages and Disadvantages of
System Theory
Advantages Disadvantages
● It aims at meaningful analysis ● Over-conceptual
of organizations and their ● The approach does not recognize the
management differences in systems
● It facilitates the interaction ● Systems philosophy does not
between organization and its specify the nature of interactions
environment and inter-dependencies
● It guides managers to avoid ● Unpractical: It cannot be easily and
analyzing problems in directly applied to practical
isolation and to develop an problems.
integrated approach.
Conclusion
Systems advocates envision the organization as being made up of
interdependent factors including individuals groups , attitudes, motives,
formal structure, interactions goals, status & authority if all parts of the
organization are not coordinated internally then organization goals can not
be achieved. Again open system approach recognized that org. are not self
content they rely on their environment for essential inputs as a sources to
absorbs their outputs. So system approach is very crucial for organizations
for its existence in business scenario and economic environment, in order
to face all cyclic circumstances and move step ahead to achieve
organizational goal.
“Management is the activity of getting things done with the
aid of people and other resources”
REFERENCE
1. https://www.onlinemswprograms.com/social-work/theories/systems-theory-social-work/
2. https://pubsonline.informs.org/doi/pdf/10.1287/serv.2.1_2.126
3. https://www.siue.edu/~adheil/Systems%20Theory%20Paper.pdf
4. https://uk.sagepub.com/sites/default/files/upm-binaries/49393_Walker,_Chapter_One.pdf
5. https://brill.com/view/book/9789462096356/BP000009.xml
6. :Yoder-Wise, P.S. (2011). Leading and Managing in Nursing (5th ed.). St. Louis: Mosby. Sullivan, E.J.
& Decker, P.J. (1992). Effective Leadership and Management in Nursing (3rd ed.). Redwood: Addison-
Wesley. Petula, S. (2005). Can Applying Systems Theory Improve Quality in Health Systems?
National Association for Healthcare Quality. Retrieved from www.nahq.org/uploads/JHQQNol.pdf
Savigny, D. D., & Adam, T. (2009). Systems Thinking for Health Systems Strengthening. World
Health Organization.

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SYSTEM

At the end of the session we will able to:

The system theory is the transdisciplinary study of the

It is also a management methodology as it is a way of

Systems theory states that organizational success relies on

"The systems design notion requires both coordination and

1. Strategy - Actions a company plans in response to or

2. Structure -Basis for specialization and coordination

3. Systems -Formal and informal procedures that support

5. Staff -Human resource management, the processes and efforts

6. Skills -These are the distinctive and core competencies of the

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