DEFINITION OF A SYSTEM

A system can be simply defined as an organized or complex whole. It is

an entity which consists of inter-dependence parts.
Also, a system may be defined as a combination of interrelated
elements, or sub-systems, organized in such a way as to ensure the
efficient functioning of the system as a whole, necessitating a high
degree of co-ordination between the subsystems, each of which is
designed to achieve a specified purpose.

SYSTEM ELEMENTS
System elements are the entities that make up the systems. Not all
systems have the same combination of elements. System element can
be a tangible object or intangible object. Every system element consists
of input element, transformation element, output element, control
mechanism and objectives. When system elements represent a
manufacturer, the input resources are the raw materials, which are
transformed into finished products or services. The control mechanism
is the firm's management, the objectives are the goals that the firm
seeks to achieve and the feedback loop is the flow of information both
to and from management.

SYSTEM FEATURES
1.)Interdependence:
From the definition of a system, system interdependence means that
systems are coordinated and linked together according to the plan and
objectives of the system. One subsystem depends on the output of
another subsystem for proper functioning. Therefore parts of the
organization or subsystems depend on one another, for proper
functioning of the system as a whole.

2.)Environment
All systems whether it is natural or man-made co-exists with an
environment. It is very important for a system to adapt itself to its
environment. Also, for a system to exist it should change according to
the changing environment. What one includes in the system and what
one includes in the environment depends on the particular problem
being studied.

3.)Interaction:
This refers to the ways and manners in which each subsystems or
component functions with other subsystems or components of the
system, for the achievement of the system’s overall objective.

4.)Boundaries

Systems are normally delineated by a boundary, which separates them

from their environment. Anything within the boundary is part of the
system, anything outside is part of the environment. The description of
a system, system element and system environment is interwoven and
not easily illustrated. Every system has defined boundaries within which
it operates. Beyond these limits the system has to interact with the
other systems.

5.)Interfaces

This is another important feature through which the system interacts

with the outside world. System interacts with other systems through its
interfaces. Users of the systems also interact with it through interfaces.
Therefore, these should be customized to the user needs. These should
be as user friendly as possible

6.)Objective

Every system should have a central objective which may be real or

stated. A system cannot exist without a defined objective. Although an
organization can use a stated objective to achieve another objective,
but the overall objective should remain intact and holism.

7.)Standards

This is the acceptable level of performance for any system. Systems

should be designed to meet standards. Standards can be business
specific or organization specific.

8.)Feed Back

Feedback is an important feature of systems. The output of a system

needs to be observed and feedback from the output taken so as to
improve the system and make it achieve the laid standards.

9.)Coupling and De-coupling (integration and disintegration)

If systems are over-integrated they become too complex to understand

and operate. If one part of the system ceases to function correctly this
may cause system as a whole to deteriorate and perhaps cease to
function completely. When systems are decoupled it administers them
in some cases as they become less complex and more flexible. The
efficiency with which systems are designed and integrated plays a large
part in their failure or success.

TYPES OF SYSTEMS RELATIONSHIPS

System relationship describes relationship of the system with other

system that is close to it and how it reacts to or is influence, in its
environment by other systems.
The following are types of system relationships:
1. Open Systems
Are those which interact with their environment, by receiving input
from the outside and delivers output to outside, either for the
collection of data on which to base strategy or for conducting business
transactions with suppliers, customers, the general public,
departments, trade organization, government etc. Employees are
obviously influenced by what they do in their job, but as members of
society at large, they are also a part of the environment of the business
therefore, their work inevitably affects the environment. Open systems
are adaptive and require speedy reaction to competitive situations and
other threats in the most effective way. Open systems include man,
organizational resources and business systems.

2. Closed Systems
This is the type of system that is isolated from environment influences
and therefore, do not interact with their environment either for the
exchange of information or business transaction. Closed systems are
independent of its environment, and no environmental influences
affect the behaviour of the system. Such systems are self-contained and
business systems do not conform to these categories as they interact
with their environment to a great degree as no business exists in a
vacuum.

3. Physical System
Physical systems are tangible entities which can be touched and
sometimes have emotional feelings that may be static or dynamic in
nature.

4. Abstract System
These are formulas, representation or model of a real system, which do
not possess any physical structure. The abstract is conceptualization of
physical situations.

5. Probabilistic System:

It only allows their output to be predicted within certain limits i.e. their
precise outputs cannot be known in advance. Business and economic
system are of a probabilistic nature, since they are subjected to many
internal and external forces. If information is probabilistic (e.g.
forecasts) a set of possible outcomes and their associated probabilities
is given.

6. Deterministic or Mechanistic Systems:

Deterministic systems are mechanistic in nature. This type of system

enables the output generated from specific inputs to be predicted
without error, providing that it is operating correctly and under control,
there is no uncertainty about it at all. This equally applies to a computer
program e.g. a fully automated production process. Mechanical
systems perform in a predefined manner when subjected to specific
inputs. Business and economic systems do not come unto this category
since they are highly unpredictable. A deterministic system is not
applicable in a developing country because stable conditions do not
exist in business for long since most business is foreign based.

7. Cybernetic system:

This is also known as adaptive or self-organizing system. It is one which

adopts and reacts to a stimuli i.e. adapts to its environment by
adjusting its behaviors on a self-organizing basis. The system alerts its
inputs as a result of measuring its performance (outputs) by monitoring
its own behavior. Human plants and organizations are examples of
adaptive system. In order to survive in a competitive world, they must
react, if they do not react, then they die. The most suitable system is
the adaptive system. Computerized credit control systems are also
adaptive since credit facility will be prevented from exceeding the
credit limit in order to minimize exposure to a particular client/ group.

8. Planning System:

It deals with the allocation of resources to specific tasks and the setting
of performance standards. It establishes the guideline for future action
without which a business is likely to drift in the wrong directions. An
example is a budget plan of an organization.

9. Control systems:

Control systems are often separately structural from the system which
they control, e.g. the quality controls system controls the quality of
production. These types of system are basically administrative systems
for monitoring the results and modifying and the state of the physical
systems to which they relate.

GENERAL SYSTEM THEORY

General system theory is based on scientific analysis of systems to

understand theory nature and behavior varying circumstance and the
effect of the environment on performance. The principles of general
system theory may be considered to relate to the principles of
management as both are based on scientific analysis.

Management principles are based on the scientific analysis of

management functions and practice in various environments. Thus
businesses are controlled by management systems which are activated
by the various control systems which themselves are based on scientific
theories, i.e. General System Theory

General system theory principles may conflict with the practice of

management because compromise is the keynote of success rather
than inflexible rulings which appear relevant from previous experience.
All management problems have different ingredients, which makes it
impossible to pre-formulate solutions even for similar situations.
Standard rules do not apply because they are not always accepted by
all parties to the conflict.

Management problems relate to social conflict between various

factions i.e. employee- employer, customer supplier, business-
government, which do not always lend themselves to quantifiable
solutions.