Systems theory and the project

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 Systems theory is a management approach
that attempts to integrate and unify
scientific information across many fields of
knowledge in order to solve problems by
looking at the total picture rather than
through an analysis of individual
components. A system is thus a group of
elements (human and non-human) that are
organised and arranged in such a way that
the elements can act as a whole towards
achieving a common goal, objective or end.
It consists of a collection of interacting
subsystems that span or interconnect all.
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 If the system is closed the management
has complete control of it but if open it
reacts to the environment. It may also
be an extended system – that is
significantly dependent on other systems
for its survival hence it is ever changing
as the significant other control resources
required by the system or consume its
output e.g. in construction the
significant others are trade unions,
suppliers, financiers, government,
consumer pressure groups, educational
institutions and customers.
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 Project organisation is a man-made system
which has a dynamic interplay with its
environment – customers, competitors, labour
organisations, suppliers, government, and
many agencies. It is thus a system of
interrelated parts working in conjunction with
each other in order to accomplish a number of
goals both those of the organisations and the
individual participants. Consequently, the
system requires a management technique that
is able to cut across many organisational
disciplines – finance, manufacturing,
engineering, marketing, etc – hence project
management.
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 Purpose of a project system:
Develop relationships
between organisational
resources
Obtain information
Assist in decision making

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 Systems and sub-systems;
 Organisational system
 Information system

◦ Informal
◦ Formals
 Financial system
 Marketing system
 Inventory control system
 Personnel system
 Production system

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 The project system may be modelled to
exhibit actual behaviour of components and
demonstrate ways in which they interrelate –
total picture. Types of models:
 Communications

◦ Oral or written
◦ Certain results will be achieved from specific
managerial action
 Schematic

◦ Static – set of relationships fixed in time

including bar and arrow charts or start and
end activity
◦ Flow rate – flow of relationships e.g. cpm,
decision trees
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 Dynamic – transformation of relationship rather than
activity which are effective in describing the total
system e.g. black boxes where and input is
manipulated to obtain output and feedback
 Iconic – scaled up or down replicas of the actual
system
 Analog – means of representing physical property by
other physical property e.g. fuel gauge represent fuel
in the tank
 Symbolic – represent properties and relationships in
a system by symbolic or mathematical expression or
equation
 Conceptual – non-mathematical models that attempt
to describe a concept or theory that could simply be
a figment of imagination e.g. research hypothesis
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