Theory
Systems Theory
Functions of Theory
Organize facts that people observe everyday
Predict future behavior
Control or alter behavior
Systems Theory -
Historical Perspective
1951 - Ludwig von Bertalanffy
1956 - Kenneth Boulding
1960’s - practitioners were able to translate
systems theories into a meaningful theory
that would apply to management theory and
management problems
– Deacon and Firebaugh (1965)
Systems Theory
Attempts to integrate and unify scientific
information across many fields of
knowledge
Attempts to solve problems by looking at
the total picture, rather than through an
analysis of the individual components
Systems thinking is a way of looking at the
world in which objects are interrelated with
one another
What is a system
A system is a coordinated set of parts for
accomplishing goals (Deacon & Firebaugh)
A group of elements, either human or
nonhuman, that is organized and arranged in
such a way that the elements can act as a
whole toward achieving some common
goal, objective, or end. (Kerzner, H.)
A system is a collection of parts that
interact with each other to function as a
whole (Lewis, J.P.)
Systems Theory Concepts
Boundary
– separates a system’s area of influence from that
of other systems
– determines what is included within the system
and what is not part of the system
– defines the system, the limits or the borders
between systems
Systems Theory Concepts: Boundary
– Represents the interface
• point of contact between the system and other
systems
– Three kinds of boundaries:
• spatial or physical
• functional
• analytical
– Permeability
• degree to which boundaries permit or impede the
flow of energy, matter, or information into and out
of the system
– open system
– closed system
Systems Theory Concepts
Inputs
– Matter, energy, information
Outputs
– results of system processes
Transformation
– are the actions taken upon the inputs that result
in outputs
Feedback
– Information concerning the outputs or the
process of the system
Managerial Action Using
Systems Approach
Planning
Demands Met demands
Implementing
Values Achieved goals
Decision-Making
Matter Satisfaction/
Controlling
Energy Dissatisfaction
Communicating
Information Altered resources
Sequencing
Resources
Use of resources
Inputs Transformation Outputs
Feedback
Systems Theory Concepts
Entropy
– is the tendency of all forms of organization to
move toward disorganization or death
– disorder and randomness
Homeostasis: systems try to remain in
balance (negative entropy)
Feedback revisited
– negative feedback (status quo; static)
– positive feedback (growth, change)
Systems Thinking in
Project Management
Linear-causal thinking
Circular causal thinking since systems
involve feedback
Causality in human relations is circular
A B
Systems Thinking in
Project Management
Fourlevels of understanding in systems
thinking
– Reactive
– Adaptive
– Systemic structure
– Shared vision
Tragedy of Commons
– need to think win-win