Republic of the Philippines

SORSOGON STATE UNIVERSITY

SCHOOL OF GRADUATE STUDIES
Office of Advanced Education
Magsaysay Avenue, 4700 Sorsogon City

MARITES H. MENCIAS
MAM-AS

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1. Define systems theory of management.

2. Gain understanding of the theory and its

importance to management.

3. Identify its components, contributions and

limitations.

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Systems theory
of management
is…

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 Ludwig von Bertalanffy (1901–1972)
(Fig. 1) is widely known as the father of
general system theory (GST). Some
scholars are aware of his contributions
to the concepts of open systems and
steady state (flux equilibrium), and in
some areas of research his growth
equations are still being referred to
today.

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 systems theory, therefore, is a general science
of wholeness... The meaning of the somewhat
mystical expression, “The whole is more that
the sum of its parts” is simply that constitutive
characteristics are not explainable from the
characteristics of the isolated parts. The
characteristics of the complex, therefore,
appear as new or emergent... - Ludwig von
Bertalanffy

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…System theory of management refers to the goal-
oriented mechanism composed of different parts
that interact and are interrelated in a way that
the collective efforts of all parts are greater than
the sum of their individuals parts.

….Focuses on how each component of an

organization interrelates.

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Systems Theory

PROCESS

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 Input
Input is the first step of the system approach. An
organization’s input includes human resource, raw
materials, physical resources, financial resources,
equipment, technology, and information.

 Process
The organizational process consists of processing
inputs to make them the desired outputs. The process
may include transformation, operation, planning,
leadership, and management.
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 Output
Output is the product of an organization.
After successful processing, the output of an
organization may be desired product, service,
employee behavior, productivity,
profitability, loss job satisfaction, etc.

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Some of the features of the system approach
include:
Goal-Oriented
An organization is a goal oriented system.
An organization’s all subsystems have certain
goals to achieve and their collective efforts
result in the achievement of the goals of the
system.

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 An organization is composed of both
open and closed systems. A closed system is
within the organization and does not interact
with the external environment.
An open system interacts with both the
internal and external environment. It
influences and gets influenced by the external
environment.

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 Synergy
Describes the efforts of the whole as greater
than the efforts of individual parts. The
system approach ensures synergy in the in the
organization.
 System Boundary
Every system has a boundary. In an open
system, the boundary is flexible and in a closed
system, the boundary is fixed.
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 Feedback
Feedback is an essential component of the
management system to provide information
regarding output.
 Environment
The environment surrounding the
school/school district includes the social,
political, and economic forces that impinge
on the organization.
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Contributions:
It provides a holistic view of the organization.
It analyzes how different subsystems interact and
relate to one another to produce synergistic effects.
It implies that the organizational system would
experience environmental effects, allowing
management to implement important tactics to
counteract environmental influence.
This theory is helpful for managing large and
complex organizations.
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Limitations:
This theory is too abstract which is intangible in
the real sense.
It is not possible to apply this concept in small
organizations.
This approach does provide specific guidelines to
managers for functions and duties.
There are no specific tools of management
suggested by this theory.

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 Schools are a social systems in which two or more
persons work together in a coordinated manner to attain
common goals. All schools are open systems. An open
system consists of five basic elements: inputs, a
transformation process, outputs, feedback, and the
environment.

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 Schools use four kinds of resources from
the environment: human, financial, physical,
and information resources. Through
technology and administrative functions, the
inputs undergo a transformation process.

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 According to the businessdictionary.com, a
system is defined as a collection of detailed
methods, procedures, and routines that are used
to complete a specific task, perform a duty, or
solve a problem. There is no clear definition of
how a system is defined. Organizations,
according to open systems theory, are highly
influenced by their surroundings.

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 Education refers to a school system in which
specific people are primarily responsible for teaching
children acceptable behavior, according to the
definition. When the school system becomes a part of
the total social structure, it is recognized as a separate
institution by its members. According to the views of
open school systems, schools constantly interact with
one another. Systems theory is used within and
outside an organization to explain and predict how a
decision will affect the organization.
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 Ludwig von Bertalanffy - General System Theory
(nwlink.com)
 System Theory - Systems Approach to Management –
Harappa
 www.nationalforum.com/Electronic%20Journal
%20Volumes/Lununburg,%20Fred%2…
 Systems Management Theory - Bing images
 mundanopedia.com/business/organizational-theory/
systems-theory-of-managemen…
 https://uk.indeed.com/.../career-development/systems-
theory-of-management

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