System Theory Essay

2078 Words 9 Pages
Topic 1: Systems theory, efficiency and effectiveness
Effective management is ‘making the right decisions and successfully implementing them.’ Contrast the concept of effectiveness with the concept of efficiency. Describe basic systems theory as it applies to organizations and discuss the concepts of efficiency and effectiveness in terms of inputs, throughputs (or ‘the transformation process’) and outputs. Include some examples in your discussion.

Abstract Efficiency means doing things right, while effective means doing the right things. In management, managers will strive for low resource waste (high efficiency) and high goal attainment (high effectiveness). Systems theory is an extension of the humanistic perspective that describes
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An efficient manager is a person who is always does the things right. Not only they allocate the resources well, but also they produce the maximum output with minimum cost and their productivity is high. So in order to achieve that, first the products must be high quality. Second the products must be delivered in time. Third the needs of the customers must be fulfilled. Lastly, these things must be done with minimum cost.
Systems theory has had a significant effect on management science and understanding organizations. First, let’s look at “what is a system?” A system is a collection of part unified to accomplish an overall goal. If one part of the system is removed, the nature of the system is changed as well. For example, a pile of sand is not a system. If one removes a sand particle, you’ve still got a pile of sand. However, a functioning car is a system. Remove the carburettor and you’ve no longer got a working car. A system can be looked at as having inputs, processes, outputs and outcomes. Systems share feedback among each of these four aspects of the systems.
Let’s look at an organization. Inputs would include resources such as raw materials, money, technologies and people. These inputs go through a process where they’re planned, organized, motivated and controlled, ultimately to meet the organization’s goals. Outputs would be products or services to a market. Outcomes would be, for example, enhanced quality of life or productivity

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