THE CONCEPT OF SYSTEM THEORY

Question 1

TRUE OR FALSE AN ORGANIZATION IS AN EXAMPLE OF AN OPEN SYSTEM.

Answer 1

True , an organization is an example of open system.

Question 2

WHY IS THE SYSTEM APROACH IMPORTANT IN BUSINESS MANAGEMENT.

Answer 2

The system approach is important ,because business

enterprises interact continually with the external environment.

Question 3

A SYSTEM IS OPEN IF…

Answer 3

the system is dependent on the environment and the environment is dependent on the system; there is a specific interaction between system
and environment.

Question 4

WHAT DOES SYNERGY MEAN…

Answer 4

The whole is greater than the sum of it part.

Question 5

Discuss the business enterprise as an open system.

Answer 5

An organization can be viewed as an open system. To be able to function, the
organization is dependent on the environment for resources physical, human,
information and financial. The environment is dependent on the organization for
goods, services, jobs, and wealth that the organization provides. There is
interaction between the two.

Question 6

Explain what is meant by the ‘systems approach to management

Answer 6

-The systems approach to management presents the business organization as
an open system. There are four concepts that need to be understood: The open system, subsystems, synergy, and entropy. An organization is an open system because there is an interaction between it and the environment. The organization is a system within a system. For example,, it is part of the economic system of the country. The organization also has various subsystems, such as finance, human resources, and production. All these subsystems are interdependent.

Synergy is another principle applied to the systems theory. The individual
subsystems are simultaneously applied so that the results of their simultaneous
action are greater than the sum of the individual efforts. Lastly, entropy is
a process of system breakdown. It occurs when the organisation does not
make the necessary adjustments to ensure its continued existence in a
particular environment. It is doomed to disintegration or failure

Question 7

EXPLAIN THE OPEN SYSTEM…

Answer 7

• An open system dependents on the environment in which it operates.
• The environment depends on the open system.
• The open system and the environment interacts in a specific way.

Question 8

DISCUSS THE SYSTEM PERSPECTIVE OF AN ORGANISATION.

-AVAILABLE (inputs from the environment)

Answer 8

• Raw materials
• Capital
• People
• Premises and equipment
• Information and technology
• Expertise
• Mission and goal.

Question 9

-Transformation processes (or the processing of input resources)

Answer 9

• Marketing process
• Purchasing process
• sales ,finance and production processes
• Management processes such as , (organising ,leading and controlling)
• Technology and system.