I. Systems theory
The systems management theory has had a significant effect on management science. A system is an interrelated set of elements functioning as a whole. An organization as a system is composed of four elements: • Inputs — material or human resources • Transformation processes — technological and managerial processes • Outputs — products or services • Feedback — reactions from the environment
Advocates of the leadership/management theory In relationship to an organization, inputs include resources such as raw materials, money, technologies, and people. These inputs go through a transformation process where they 're planned, organized, motivated, and controlled to ultimately meet the organization 's goals. The outputs are the products or services designed to enhance the quality of life or productivity for customers/clients. Feedback includes comments from customers or clients using the products. This overall systems framework applies to any department or program in the overall organization. Systems theory may seem quite basic. Yet decades of management training and practices in the workplace have not followed this theory. It is a management approach which enables the leadership to see the company as a unified part or a major section of the larger outside corporate environment. Even a small activity in a section of a company has a substantial effect on other sections of the company. Such a system may be biological, physical or social, and may enable the management to efficiently determine the long-term goals of the company. The systems approach states that, for realizing the operations of an entity, it is essential to see the entity as a whole system. The systems theory encourages managers to look at the organization from a broader perspective. Managers are beginning to recognize the various parts of the organization, and, in particular, the interrelations of the parts. Systems
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