Today we continue our discussion on System Concept. The importance of the systems concept to the manager is that it helps him to identify the critical sub-systems in his organization and their inter-relationships with each other and the environment. It is a responsibility of a manger to use the system in such a way that it can generate internet profit.
A system is always seeking an equilibrium state, that is, where all the sub-systems are at the optimum level, in tune with and at rest with each other, and the desired output is being achieved. In an open system, this level of equilibrium is never static but is always dynamic. This is because the environment is never static, it is always changing and since the open system is all the time interacting with environment, what may have been an equilibrium level today will not be so tomorrow. It is the concern of the manager to seek this equilibrium level. An individual can make money from home while it is a responsibility of a manager to establish en equilibrium level which helps company to make internet profits.
One of the most important interactions between an organization and the environment is that of information. A manager who has information about the impending government legislation which will affect his organization can suitably modify his decision and avoid costly mistakes. Similarly, a manager who is well informed about his employees’ activities, expectations, opinions and grievances can take corrective action much before a crisis develops. We now turn our attention to this information flow and see how best it can be organized from the manager’s viewpoint.
A system has the following components:
1. A number of parts of sub-systems which when put together in a specific manner form a whole system
2. Boundaries within which it exists
3. A specific goal or goals. This goal is expressed in terms of an output which is achieved by receiving input and processing it to form the output
4. Close inter-relationship and inter-dependency amongst the various sub-systems
The inter-relationship of the sub-systems can be define in terms of:
- The flows which exist among them, such as flow of information, money, materials, etc. The most important of these is the information flow which we shall discuss in the next section.
- The structure within which they related to each other. This structure may be physical, geographic or organizational and shall be dealt with in the section entitled ‘organizing’.
- The procedures by which the sub-systems relate to one another. By procedures we mean those planned activities which affect the performance of the entire system. In the context of an organization, this refers to planning and we shall discuss these under the heading ‘planning’
- The feedback and the control process and mechanisms which exist to ensure that the system is moving towards its desired objectives. In this unit, we have dealt with this in the section on controlling.
Every practicing manager knows form experience that whatever actions and decisions he takes, in any particular area of activity, have results which extend well beyond that specific activity. The impact of decisions in some cases affects the whole organization and even external environment. A simple decision to throw out an inefficient, lazy worker can trigger off union activity which can, in extreme situations, even result in strike. For example, in a company who are selling blinds, vertical blinds and roman shades products. The marketing person who is not able to complete the given targets to them, a manager is supposed to remove such under performing marketing team member.
The situation may become so hot that the union forces the neighboring units also to join the strike. Thus when a manager takes a decision he never views its impact in isolation but tries to understand and anticipate its repercussions on the entire organization and the environment. The manager understands that his organization is a totality of many, inter-related, inter-dependent parts, and put together for achieving the organizational objectives. This is a nutshell is the very essence of the systems concept. In Term life insurance Company who is selling providing Instant Life Insurance Rates online, if their agents are working with good performance and targeted output, it is in favors of company to remove them from team.
A system is defined as a sum total of individuals but inter-related parts (sub-systems), and is put together according to a specific scheme of plan, to achieve the pre-stated objectives.
· to develop familiarity with various types of systems and processes involved in managing an organization
· to understand the concept of a system and learn what the management information system is
· to develop an understanding about the necessity of each managerial process and its logical sequencing in relation to the other processes.
· to identify the major elements of each process
You know the various responsibilities and tasks expected of you as a manager. Now you have to get down to the nitty-gritty of actually performing all these tasks and discharging you responsibilities. For this you must understand the various systems and processes involved in managing. It does not matter whether you manage a private company, a public sector company, or even a non-commercial organization. The essentials of managing remain the same.
In this unit we began by introducing the systems concept and see how it can be applied to organizations. We then move to the all important concept of management information systems and examine it in detail. Later on we shall take up for discussion the management processes of planning, controlling, organizing, Motivating, leading and decision-making.