Importance of System Thinking in Organizations: MGT603 Report

This report, prepared for MGT603, delves into the critical role of system thinking in organizational contexts. It begins with an introduction to system thinking as a powerful tool for optimizing business opportunities and problem-solving, highlighting its six key tools: interconnectedness, synthesis, emergence, feedback loops, causality, and system mappings. The report then examines the benefits of system thinking, such as optimizing entities within a system and fostering creative system design. A case study of XYZ bank demonstrates the application of system thinking tools, particularly CATWOE analysis, to address customer loss. The report also includes critiques of two peer assignments, evaluating their holistic approach and the effective use of system thinking tools. The references provide a comprehensive list of sources that support the concepts discussed.

Running head: IMPORTANCE OF SYSTEM THINKING IN ORGANIZATION
Importance of System Thinking In Organization
Name of the Student
Name of the University
Authors note

1IMPORTANCE OF SYSTEM THINKING IN ORGANIZATION
Table of Contents
Part A: Proposal Individual........................................................................................................2
Introduction............................................................................................................................2
Importance of System thinking..............................................................................................2
Analysis of the organizational issues using Systems thinking tools......................................3
Part B: Critique Individual.........................................................................................................4
References..................................................................................................................................5

2IMPORTANCE OF SYSTEM THINKING IN ORGANIZATION
Part A: Proposal Individual
Introduction
System thinking is one of the most powerful and robust tool that is capable of
optimizing and exploring business opportunities. System thinking can be seen as a method to
identify any problem or challenging situation and to develop inventions to overcome them. It
helps in solving problems and understanding how a particular thing can influence completely.
It involves a framework that critically analyzes problems and provides solution (Joshi, Kumar
& Patil, 2017). The concept of system thinking was initiated in 1956. There are six tools that
can provide the fundamental understanding of system thinking (Liu, Forrest & Yang, 2015).
The tools are Interconnectedness, Synthesis, Emergence, feedback loops, causality and
system mappings. Hence, the aim of this report is to provide a holistic view and to critically
analyze how the concept of System thinking helps in assisting the issues faced be various
organizations. It depicts the importance of system thinking and its tools. Further, the paper
gives a critique of the original post with two peer assignments.
Importance of System thinking
It is important to understand how system thinking gives a way of analyzing different
problems. It offers to expand the range of choices by understanding how the entity of any
system can help in attaining desired solution. Though, system thinking can be difficult to
practice but it will also help to explore dynamic complications. The demand of improved
structure has been increased and for the organizations who has not yet implemented System
thinking needs to be watched (Haines, 2016). The mangers of the specific organization must
enlarge their vision and plan the use of emerging technologies to get future benefits. The
several benefits associated with System thinking are:

3IMPORTANCE OF SYSTEM THINKING IN ORGANIZATION
 It optimizes and offers advantages for any object or entity within the system.
 It gives a circular approach by utilizing all the products and services and gives more
value to waste.
 System thinking interconnects and provides creative designing of new system.
Analysis of the organizational issues using Systems thinking tools
The XYZ bank which was constantly experiencing the loss of customers, to eliminate this
issue it decided to implement an incentive plan for the employees to motivate them and
satisfy them. The strategy was to gain potential customers by providing commission to the
employees. The best method to redeem the customers is by executing the process of system
thinking.
The problem can be analyzed using CATWOE Analysis.
C- Customer: The bankers must understand what are the requirements if the customers. The
scheme offered to the customer must also benefit the customer.
A- Actors: the bank manager and the employees must introduce specialized system which
with attract the customer’s attention (Zhang & Boies, 2018).
T- Transformation process: change in the process planning and efficient strategy must be
implemented to gain the trust of the customer.
W- World view: The impact of the proposed system will help in achieving the customer’s
objective.
O- Owners: the owner of the bank manager will decide whether the new plan will be
successful or not.

4IMPORTANCE OF SYSTEM THINKING IN ORGANIZATION
E- Environmental constrains- These are the limitation that interrupts the operation of the
system. It may happen that there might be not enough resources and the bank manager does
not want to provide any additional offer to the customers.
Part B: Critique Individual
1. Critique on Sanjay Reddy Kaligota’s post:
This assignment is not purely holistic as it lacked the technique that must be utilized
to solve the issues in the organization. The use of CATWOE analysis is unidentified
in the assignment. Applying this technique will help to visualize the problem and will
provide the means of reducing them. The use of system thinking tools is not well
defined in the assignment. The importance of system thinking in an organization or
business is the main aspect of this report. However the peer assignment lacked
essential credentials of the system thinking tools. The technique that must be utilized
to solve the issues in the organization is unidentified in the assignment.
2. Critique on Vineet joshi’s post:
This assignment is a holistic approach which provides a good understanding of system
thinking. The system thinking tool is explained properly by highlighting the
advantages of System thinking in the organization. The implementation of the system
tools will attract potential customers. The introduction of employee benefits will help
in modifying the marketing strategies. It will help the organization to regain its lost
customers. Therefore, a brief understanding of system thinking is clearly depicted by
this assignment which has helped in solving the identified problem of the
organization.

5IMPORTANCE OF SYSTEM THINKING IN ORGANIZATION
References
Haines, S. (2016). The systems thinking approach to strategic planning and management.
CRC Press.
Joshi, A., Kumar, A., & Patil, P. (2017). Systems Thinking and Total Quality
Management. Supply Chain Pulse, 8(1), 38-41.
Liu, S., Forrest, J., & Yang, Y. (2015). Grey system: thinking, methods, and models with
applications. Contemporary Issues in Systems Science and Engineering, 153-224.
Zhang, L., & Boies, K. (2018). Corporate University: A Systems Thinking Situating Senior
Leader Assessment and Development in Context to Enhance Organizational
Viability. Industrial and Organizational Psychology, 11(4), 669-676.