Systems Theory for Business

Organizational themes

Systems theory

Systems are related to each other, and they themselves contain subsystems. For definition, a system consists of a set of inputs, a set of outputs and a set of processes which transform inputs into outputs. All activities involved in the system is defined as system boundary, for example a payroll system might include all the activities in the payment of staff in a business. Others systems outside but relate to it are considered as the environment. System thinking is the interactions between the system and its environment.

A system should be looking at as a whole organization rather than separated functional subsystems. There are approaches suggest IT developers should divide complex problems into smaller issues, but they should remain it as a whole in mind because this process of decomposition may cause wrong understanding about the system or harms the unity of the system. Also, human components may react differently when we treat the system as some single processes than a role in the whole system.

According to systems theory, organizations are open systems. It means the information in the system will have two sides interaction with the environment. Also, organizations are complex systems which require a wide range of knowledge to understand, analyze and develop information systems.

System theory put a great effect on how information system works. There are always human and computer elements in an information system. System theory points out that, computer elements or technology elements are easier to manage and predictable. Also, analyzing those elements can provide a particular result, but not an ideal solution for organizations. On the other hand, human elements are very complex and t...

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... of the top managers are enhanced. The leaders should be able to connect every single individual in the project and make them work together. The most importance thing is: people should work for the same goal, not any single purposes.

Besides, the leaders have to manage well the resources and negotiate proper requirements corresponding to the resources provided.

After agreeing a suitable range of requirements and features, development team should deliver a high quality product which can satisfy the customers. Of course, during the process of developing a system, there should be annual meeting between customers and the team for further testing and changing if there are new requirements.

In general, project management requires a lot of effort from the leaders and their knowledge in not only IT aspect but also administrative aspect, soft skills, leadership skills, etc.