The systems theory

The systems theory approach is based on the notion that organizations can be visualized as systems of interrelated parts or subsystems that operate as a whole in pursuit of common goals. This will be discussed in more detail in the next session.

1.                   The major components of a system are:

a.                  Inputs:  the various human, material, financial, equipment, and informational resources required to produce goods and services.

b.                  Transformation processes:       the organization’s managerial and technological abilities that are applied to convert inputs into outputs.

c.                   Outputs:  the products, services, and other outcomes produced by the organization.

d.                  Feedback:  information about results and organizational status relative to its environment.

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