A system is an interrelated and interdependent set of elements functioning as a whole. It is an open system that interacts with its environment. It is composed of inputs from the environment (material or human resources), transformation processes of inputs to finished goods (technological and managerial processes), outputs of those finished goods into the environment (products or services), and feedback (reactions from the environment). Subsystems are systems within a broader system. Interdependent subsystems (such as production, finance, and human resources) work toward synergy in an attempt to accomplish an organizational goal that could not otherwise be accomplished by a single subsystem. Systems develop synergy. This is a condition in which the combined and coordinated actions of the parts of a system achieve more than all the parts could have achieved acting independently. Entropy is the process that leads to decline. System- is a group of interrelated and interdependent parts working together to attain one common objective. Systems obtain input from the environment, process the inputs and provide out puts to the environment it can be shown as follows;
Input Stage
Raw
Materials
Conversion
Stage
Machines
Human skills
Output
Stage
Goods
Services
Sales of outputs
Firm can then buy inputs
Fig 2.3 Flow of System
Characteristics of systems
A system has several distinguishing features i. A system can be open or closed ii. System has boundary iii. System has subsystems iv. Failure in one subsystem can be considered as failure of the entire system
A. A system can be open or closed * Open system: is a system which interacts with its external environment to survive. It is 'dependent system as it must obtain inputs from its environment to attain its objective.
* Closed system: is a system which is self-contained and thus not affected by changes that occur in