Analysis of System Theory: Environment, Feedback, and Impact

This assignment explores the core concepts of system theory, differentiating it from other management approaches by highlighting its holistic nature, which views organizations as interconnected systems composed of interacting subsystems. It examines how organizations, as open systems, interact with and are influenced by their internal and external environments, including factors like customer preferences and socio-political changes. The analysis emphasizes the importance of feedback mechanisms in assessing organizational activities and making necessary corrections, detailing how feedback from the public shapes the perception of outputs and influences the system's evolution. The assignment includes practical examples and discusses the roles of team leaders in applying system theory to motivate colleagues and achieve organizational goals. The paper also references key academic sources to support its arguments.

Running head: SYSTEM’S THEORY
SYSTEM’S THEORY
Name of Student
Name of the University
Author Note

1SYSTEM’S THEORY
Table of Contents
Response to question 1: How does the holistic nature of the System theory differentiate it
from other management theories and reflection?.......................................................................2
Response to question 2: How the system’s theory considers the impact of the environment on
the organization and vice versa and the importance of feedback...............................................2
References..................................................................................................................................2

2SYSTEM’S THEORY
Response to question 1: How does the holistic nature of the System theory
differentiate it from other management theories and reflection?
Systems theory defines that all systems are made up of sub-systems and therefore
each sub system is a part of a whole big system which again is a sub system of a bugger
system. Systems theory describes how the sum of parts individually always smaller than the
whole which creates synergy. There can be two main types of systems open and closed
systems. Some of its most important features that distinguish it from other managerial
activities are that- systems are formed of sub-systems that keep interacting with each other,
systems needs to be changed according to the changes in the internal and external
environment, a system integrates the goals of the sub system with that of the organizational
goals such that there can be synergy in the organization (Hayes, 2018).
I had witnessed the system theory in my organization that was used by my team
leader to motivate my colleagues. My colleague got demotivated because d different reasons
and therefore his work got affected and my team leader noticed the same. Then he explained
to my colleague how each of our work was important individually and how they affected the
organization as a whole that is he showed us the big picture which also made us all feel that
each of our work mattered to the achievement of the overall objectives and how it would
ultimately benefit us (Teece, 2018). Thus, the application was successful and my colleague
got motivated.

3SYSTEM’S THEORY
Response to question 2: How the system’s theory considers the impact of
the environment on the organization and vice versa and the importance of
feedback.
There are two main types of system: open system and the close system. An open
system is one which interacts with the environment and changes in case of any change in the
external and internal environment and closed systems are the ones which does not interact
with the environment. An open system continuously interacts with the external environment.
The open system is therefore influenced and impacted by its environment and it also
influences its internal and external environment (Otley, 2016). The external and internal
environment both have an impact on the system because it is operating in the environment
and therefore any change in the customers preferences, or social, political changes will
influence the operations of the company and moreover the internal environment or the
employees, stakeholders and others also have an impact over the system. This is so because
the output of the products may help in improving the lives of the customers and it has an
influence over its employees and other internal members of the organizations within the
boundary. Feedback plays a very important role in the system theory because it helps the
organization in knowing how the output is perceived by the public (Shafritz, Ott & Jang,
2015). This feedback helps the organization in assessment of its activities and the corrections
that are to be made. The response of the people to the output is called feedback.

4SYSTEM’S THEORY
References
Hayes, J. (2018). The theory and practice of change management. Palgrave.
Otley, D. (2016). The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, 45-62.
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. Cengage
Learning.
Teece, D. J. (2018). Dynamic capabilities as (workable) management systems theory. Journal
of Management & Organization, 24(3), 359-368.