The System School Of
Management Thought

System Components

Inputs

Transformation Process

Outputs

Feedback

Interconnected Elements

Organizations are interconnected parts

Changes in one element affect the entire system

emphasis on relationship and interdependence

Open and closed systems

Open systems interact with the environtment

Closed systems operate independently

Organizations typically exhibit open systems characteristics

Holistic Perspective

Emphasis on viewing organizations as a whole

Understanding the entire system

Consideration of external factors

End products or services resulting from transformation

Goods, Services, Information

The result of organizational activites

Resources entering system

Materials, Information, Energy, Human Resources

Source of raw materials and information

Core operation of the organization

Activities tranforming inputs into outputs

Production processes and decision making communication

Information on system's performance

Used to adjust inputs or processes

Continuous Improvement

Application Management

Strategic Planning

Organizational Development

Continuous Improvement