Understanding Systems Theory: Types, Components, and Applications
MANAGEMENT SYSTEMS
Systems Theory
What is a System?
A system is a coordinated set of parts that interact to achieve a goal.
Types of Systems
- Open System: Interacts with the environment by importing energy, transforming it, and exporting the converted energy.
- Closed System: Unable to interact with the environment in the way described above.
Components of a System
- Objects: The parts or components of a system. For example, atoms, stars, genes, neurons. These parts are often physical.
- Attributes: The properties of objects. For example, a star’s temperature, distance from other stars, and relative velocity.
- Supersystem: A larger system that encloses the system under consideration.
- Subsystem: A smaller system within the larger system. Each part of a system can be considered a subsystem.
Example:
- Supersystem: The community or region where a business operates.
- System: The business enterprise itself.
- Subsystem: Different functional areas within the company, such as marketing, finance, or operations.
Features of a System
- Principle of Recursion: What is applicable to a system is also applicable to its supersystem and subsystems.
- Roads: The adaptability and survival of a system in the face of change.
- Frontier: The boundary that separates the system from its environment, defining what belongs to the system and what is external.
- Synergy: The whole is greater than the sum of its parts. Studying individual parts in isolation cannot fully explain or predict the behavior of the entire system. Synergy arises from the relationships and interactions between the parts.
Levels of Organization
Refer to the hierarchy of systems, from subsystems to supersystems, representing different levels of complexity. As we move up the hierarchy, the level of complexity increases.
Example:
- Atomic particles, cells, human organs (tissue, skin, arteries, veins, muscles, etc.)
- An Operations Research Department of 8 people, which is part of an administrative system (Operations, Procurement, Quality, etc.), which is part of the company as a whole.
Reductionism
The process of breaking down a system into its subsystems, moving from higher to lower complexity. However, complete disintegration leads to information loss.
Elements of a System
- Input Currents: Flows of energy and resources required for the system’s operation and maintenance.
- Output Flows: The results or products that the system exports to the environment.
- Information Input: A particular type of input current. It follows the law of increments, meaning the information within a system is the sum of existing information plus new information entering the system.
- Conversion Process: The mechanism by which the system transforms input energy into outputs, achieving its objectives.
- Feedback: Information about the system’s performance relative to its objectives. This information is used to make necessary adjustments and ensure goal achievement. Feedback acts as a control mechanism.
Control Subsystem
- Negative Feedback: When the system deviates from its target, feedback informs the decision-making centers, prompting corrective actions to realign the system.
- Positive Feedback: When feedback reinforces the current direction or behavior of the system.
Definition of a Total System
- System Objectives: Define the desired outcomes of the system. Performance measurement helps determine the quality of system performance.
- The System Environment: The external factors and influences that can impact the system.
- System Resources: The assets, inputs, and capabilities available to the system. A balance sheet can review resource utilization.
- System Components: The individual parts or subsystems that perform specific actions within the system.
- The Management System: Responsible for planning, coordinating, controlling, and allocating resources to ensure the system achieves its objectives.
Functions of a Viable System
- Production Function: Transforms inputs into the system’s desired outputs (goods or services), focusing on technical efficiency.
- Support Functions: Provide the production subsystem with necessary elements, export goods, recover input currents, and ensure the system’s acceptance and legitimacy.
- Maintenance Functions: Ensure the system’s components remain functional and within the system’s boundaries.
- Adaptation Subsystems: Responsible for making necessary changes to ensure the system’s survival in a changing environment.
- Management System: Coordinates the activities of all other subsystems and makes decisions to achieve overall system goals.
Example: Mining Company
- System: Mining Company
- Objectives:
- Achieve a turnover of US $500,000
- Generate business with a composition of 75% product sales and 25% pre-sales and after-sales service.
- Environment:
- Competitors
- Customers
- Suppliers
- Resources:
- Human Resources (HR)
- Infrastructure (computers, networks, servers, etc.)
- Components:
- Engineering Department
- Development Department
- Marketing Department
- Personnel Department
- Management:
- Penetrate the market for mining companies
- Fully understand the operation of the mining sector
- Develop new solutions for specific business needs of the mining sector