NEW GLOBAL VISION COLLEGE

DEPARTEMENT MBA

SCHOOL OF POST GRADUATE STUDIES

ASSIGNMENT OF THEORIES OF
MANAGEMENT AND PRACTICE
INDIVIDUAL ASSIGNMENT
ARTICLE REVIEW

Name : ASTER SIME

ID :
Section : F

Sub to: M MIKIYAS

NOV.24/ 2023
 System theory
Main concepts :
* System: A system is a defined collection of parts that work together to achieve a
specific purpose. In management, a system can refer to an organization,
department, or process.
* Feedback: Feedback is information or communication that flows back from the
output of a system to the input, allowing the system to adapt to its environment.
* Equilibrium: Equilibrium refers to a state of balance or stability within a system.
In management, equilibrium can be achieved when conflicting elements are in
balance, and the system is able to function effectively.
1. Systems thinking: Systems theory emphasizes the importance of thinking in
terms of systems, rather than individual parts. Systems thinking involves
understanding how different components interact with one another to create an
overall system.
2. Feedback loops: Systems theory also emphasizes the importance of feedback
loops, which are the ways in which the output of a system is fed back into the
system and used to influence its behavior. Feedback loops can help managers to
understand how the organization is functioning and identify areas for
improvement.
3. Holism: Systems theory argues that an organization should be considered as a
whole, rather than as a collection of individual parts. This holistic approach can
help managers to understand how different components of the organization are
interconnected and influence one another.
Contribution:
* System theory emphasizes the importance of understanding the
interdependencies within an organization or system. It helps managers to
understand how different components interact and how changes in one area can
impact the entire system.
* System theory provides a framework for managers to identify and manage
conflicts and imbalances within a system. By understanding the feedback loops
within a system, managers can identify sources of conflict and develop strategies to
address them.
* System theory emphasizes the importance of considering the long-term
consequences of decisions within a system. It helps managers to think strategically
and to consider the impact of their decisions on other parts of the system.
1. Improved understanding of organizational behavior: Systems theory provides
managers with a framework for understanding and managing organizational
behavior. By understanding how different components of a system interact with
one another, managers can develop more effective strategies for managing the
organization.
2. Improved decision-making: Systems theory can help managers to make better
informed decisions by providing them with a framework for understanding the
overall system and its behavior. By considering the entire system, managers can
make better decisions that take into account the impact of individual parts on the
system as a whole.
3. Improved problem-solving: Systems theory can also help managers to solve
problems more effectively by providing them with a framework for understanding
the interconnectedness of different components of the system. By understanding
how different parts are interrelated, managers can develop more effective strategies
for solving problems and improving the performance of the organization.

Weaknesses:
* Systems theory can be complex and difficult to apply in a practical setting.
Managers may struggle to identify all the interdependencies within their system, or
to understand how changes in one area will impact the entire system.
* Systems theory can be rigid and inflexible. Managers may find it difficult to
accommodate the unique needs of their organization or system within the
constraints of a system theory framework.
* Systems theory assumes that all systems can be reduced to a small number of
interdependencies. This may not be the case, and managers may struggle to
identify all the factors that impact a system.
System theory is a management theory that focuses on understanding how different
components of an organization work together to create a whole. The theory argues
that an organization is a system, and that each part affects and is influenced by the
others. The goal of system theory is to provide managers with a framework for
understanding and managing the organization as a whole, rather than just focusing
on individual parts.
1. Difficulty in implementation: Systems theory can be difficult to implement in
practice, as it requires managers to think in terms of systems rather than individual
parts. This can be a challenge for some managers, who may be more accustomed to
focusing on individual tasks.
2. Complexity: Systems theory can be complex, as it deals with complex systems
with many interconnected parts. This complexity can make it difficult for managers
to understand and apply the concepts effectively.
3. Lack of empirical evidence: Systems theory is a relatively new management
theory, and there is still limited empirical evidence to support its effectiveness.
This lack of empirical evidence can make it difficult for managers to make
informed decisions based on the theory.