Organisations are Systems of Interdependent human Beings (definition)
General System Theory (GST)
1. Have Goal
2. Sub-system
3. Environment
4. Synergy 2+2 = 5
5. Boundary
All systems have sub-systems and the function of the sub-system is to help the system achive its goal; eg Human Body is a system which has many sub-system such as respiratory system; digestive systems.
Systems work within an environment. The environment has an impact on the systems and systems have an impact on the environment. Every system has a boundary.
All systems have a number of input, processes and output. For example we take in oxygen and it has a number of process in the body and the output is carbon dioxide.
Synergy is the combination of two or more system. Based on the combination, the result may be positive or negative.
UK border Agency as a system (Example)
Goal
To regulate the flow of people gaining access to the country inbound and outbound.
Environment
Europen Union, International Students, Financial
Today organisations are working in an environment which is:
1. Turbulent
2. Dynamic
3. Uncertain
4. Customer driven
5. Technology dominated
Management
Management helps organisation to achieve its goal.
1. Strategic (how to achieve a goal)
2. Objective (short term target that helps to acheive goal)
3. Plan
4. Goal
Organisation has goals. Management see how goals are achieve. Goals can be achieved in many ways. How goals is achieve is strategy.
Tesco
Strategic:
1. launch a new service(tesco bank, insurance)/ decide on new products or service
2. geographical expansion
3. merges/ acquisition
4. decision on organisation structure
5. investment plans
6. formulating high level policy for the whole organisation
Tactical:
1. Developing the structure for new investment