3–1

• Organization

• An entity where two or more than two people are working together to achieve a common goal.

3–2

Managing Systems

• System mean:

• A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

• e.g. Personal Computer

3–3

Managing Systems

• System Theory

• Provides a more general and broader picture of what managers do then the other perspectives of Management provide.

3–4

System Level

•  • General

• Level Component

• Global Multinational Corp. Corporate Corporation Organizational Division

• Group Work Group / Dept.• Organismic Individual• Organic Heart / Kidneys• Cellular Individual cells

•  Specific

3–5

• Organization as System

• Three major components involved:

• e.g. Watching a film

InputThrough

PutOut Put

3–6

System’s View of Organization

Environment

TRAN-SFORMATION

PROCESS

OUTPUTSProducts

AndServices

INPUTSHumanPhysical

Financial andInformational

resources

Feed Back Lops

3–7

Managing Systems

• System mean:

• A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

• e.g. Different dept. of organization

3–8

System’s View of Organization

Environment

TRAN-SFORMATION

PROCESS

OUTPUTSProducts

AndServices

INPUTSHumanPhysical

Financial andInformational

resources

Feed Back Lops

3–9

Organization as a System

• Environmental factors

INPUTS

1. Managers2. Workers3. Equipment4. Facilities5. Materials6. Money7. Energy8. Information

OUTPUTS

1. Goods2. Services3. Waste4. Profits &

losses5. Staff Growth

andSatisfaction

TRANSFORMATION

Managerial and Technical abilities(POLCA & Technology)

Cultural influences Market influences

Performance Feed back

3–10

Managing Systems

• Closed System• Not influenced by and do not interact with their

environment.

• Open System• Dramatically interacts with its environment

• Organizations• Take inputs from their environments and transform or

process the inputs into outputs and outputs are distributed into the environment.

System

The Organization As An Open System

TransformationEmployee’s work activitiesManagement activitiesTechnology and operations methods

OutputsInputsRaw materials

Human resourcesCapital

TechnologyInformation

Products and servicesFinancial results

InformationHuman results

Environment

Environment

Feedback

© Prentice Hall, 2002 3-3-1111

3–12

Organization

• External Environment

• Major forces outside the organization with potential to influence significantly a product or service's likely success.

• e.g. one organization influence success or failure of 2nd org.

• Or

• One product effect the sale, profit or loss of other product

3–13

Organization

• External environment is made up of :

1. The Mega Environment• The broad conditions (Society/Govt. conditions) and

trends in societies in which an organization operates.

2. The Task Environment• Specific outside elements with which an organization

interfaces / interacting in the course of conducting its business.

3–14

Organization

• The External Environment

• Mega or General• Environment

Task or Specific Environment

TheOrganization

Suppliers Customers

PublicPressureGroups Competitors

3–15

Organization

• The Mega Environment

Technological element Economic element

International element

Legal – Political element

Socio cultural element

The Organization

3–16

Organization

• Five major elements;

1. Technological element

Current state of knowledge regarding production of products & services (Accounting system or ATM Machines)

2. Economic element

Systems of producing , distributing and consuming wealth.

3. Legal – Political element

Legal & governmental systems with in which an organization must function.

3–17

Organization

4. Socio Cultural element

Attitudes, values, norms, beliefs, behavior & associated demographic trends characteristic of a given geographic area.

5. International element

Developments in countries outside of an organization’s home country with potential to influence the organization.