Main Elements of SystemsApproach
An organization is a unified and purposeful system consisting of several interconnected, interacting and interdependent parts.
The parts of a system are called sub-systems. Each sub-systeminfluences the other sub-systems and the system as a whole.
The position and function of each sub-system can be analyzed andunderstood only in relation to other sub-systems and to organizationas a whole.
Each sub-system derives its strength by its association andinteraction with the other sub-systems. As a result the collectivecontribution of the organization is greater than the aggregate of individual contributions of its sub-systems. This is known as synergy.
Each system has a boundary that separates it from its environment.The boundary determines which parts are internal to the organizationand which are external. For example, employees are within theboundary and creditors; customers are external to a firm.
The reaction or response of the environment to the output is known asfeedback. Feedback is useful in evaluating and improving thefunctioning of the system.
Organizations operate on the principle that they have severalalternative ways of doing the same thing or achieving the same goal.