l3 - systems & organizations
TRANSCRIPT
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 130
SYSTEMS amp
ORGANIZATIONS
1
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 230
SYSTEMS CONCEPTS
A SYSTEM is an integrated set of componentsor entities that interact to achieve a particularfunction or goal Systems are composed of independent subsystems Systems have boundaries outputs inputsmethods of converting inputs into outputs andsystem interfaces
Eg College Class Business ndash use of resources
2
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 330
BOUNDARIES
The boundary defines the scope of activitiesof the systemClass room lecture test grading etc
When defining a system you must establisha boundary A business system also has defined
boundariesEg Sales ManagersOwner of Business
3
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 430
SYSTEMS amp SUBSYSTEMS
Systems may consist of numerous subsystemseach of which may have elements interactionsamp objectives
Subsystems perform specialized tasks related tothe overall objectives of the total system
Eg Educational Systems ndash CoursesBusiness Systems ndash various subsystems
4
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 530
INPUTS amp OUTPUTSSystems or subsystems produce outputs fromvarious inputsSome value or utility must be added to the inputduring this conversion processOutputs of one subsystem may become the inputsfor anotherOutputs of one subsystem must adhere to certainstandards to become acceptable to the next
subsystemThe more exactly the standards are adhered to theeasier it will be to interface the two systems
5
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 630
INTERFACE
An interface is a connection at a system orsubsystem boundariesIt serves as a medium to convey the output
from one system to the input of another system
Eg
Inventory control amp purchaseInventory control sys Provide info on stock based onsales amp inventory turnover trends
6
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 730
SUBSYSTEM INTERFACE amp
INTERFACE PROBLEMSSometimes the output of one subsystem may
not be able to accommodate the needs of another subsystemEg
Production system may not able to produce enough stock to meet sales demand during peak periodCollege studentsPublisher
7
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 830
SYSTEMS amp THEIRENVIRONMENTS
People organizations and other systems thatsupply data to or receive data from the system
Managers perceive the environment differentlydepending on their area of work Further various kinds of systems interact with
the environments in different waysEg Owner of business ndash financial institutes competitorGovt agency etc
Systems may be either open or closed 8
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 930
OPEN SYSTEMS
Operate in an external environment amp exchange information amp material with thatenvironment
Out side system boundary
An open system needs to receive feedback inorder to exist in the environment and changewith it
Ex a marketing system exists in a competitive environment
9
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 230
SYSTEMS CONCEPTS
A SYSTEM is an integrated set of componentsor entities that interact to achieve a particularfunction or goal Systems are composed of independent subsystems Systems have boundaries outputs inputsmethods of converting inputs into outputs andsystem interfaces
Eg College Class Business ndash use of resources
2
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 330
BOUNDARIES
The boundary defines the scope of activitiesof the systemClass room lecture test grading etc
When defining a system you must establisha boundary A business system also has defined
boundariesEg Sales ManagersOwner of Business
3
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 430
SYSTEMS amp SUBSYSTEMS
Systems may consist of numerous subsystemseach of which may have elements interactionsamp objectives
Subsystems perform specialized tasks related tothe overall objectives of the total system
Eg Educational Systems ndash CoursesBusiness Systems ndash various subsystems
4
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 530
INPUTS amp OUTPUTSSystems or subsystems produce outputs fromvarious inputsSome value or utility must be added to the inputduring this conversion processOutputs of one subsystem may become the inputsfor anotherOutputs of one subsystem must adhere to certainstandards to become acceptable to the next
subsystemThe more exactly the standards are adhered to theeasier it will be to interface the two systems
5
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 630
INTERFACE
An interface is a connection at a system orsubsystem boundariesIt serves as a medium to convey the output
from one system to the input of another system
Eg
Inventory control amp purchaseInventory control sys Provide info on stock based onsales amp inventory turnover trends
6
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 730
SUBSYSTEM INTERFACE amp
INTERFACE PROBLEMSSometimes the output of one subsystem may
not be able to accommodate the needs of another subsystemEg
Production system may not able to produce enough stock to meet sales demand during peak periodCollege studentsPublisher
7
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 830
SYSTEMS amp THEIRENVIRONMENTS
People organizations and other systems thatsupply data to or receive data from the system
Managers perceive the environment differentlydepending on their area of work Further various kinds of systems interact with
the environments in different waysEg Owner of business ndash financial institutes competitorGovt agency etc
Systems may be either open or closed 8
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 930
OPEN SYSTEMS
Operate in an external environment amp exchange information amp material with thatenvironment
Out side system boundary
An open system needs to receive feedback inorder to exist in the environment and changewith it
Ex a marketing system exists in a competitive environment
9
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 330
BOUNDARIES
The boundary defines the scope of activitiesof the systemClass room lecture test grading etc
When defining a system you must establisha boundary A business system also has defined
boundariesEg Sales ManagersOwner of Business
3
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 430
SYSTEMS amp SUBSYSTEMS
Systems may consist of numerous subsystemseach of which may have elements interactionsamp objectives
Subsystems perform specialized tasks related tothe overall objectives of the total system
Eg Educational Systems ndash CoursesBusiness Systems ndash various subsystems
4
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 530
INPUTS amp OUTPUTSSystems or subsystems produce outputs fromvarious inputsSome value or utility must be added to the inputduring this conversion processOutputs of one subsystem may become the inputsfor anotherOutputs of one subsystem must adhere to certainstandards to become acceptable to the next
subsystemThe more exactly the standards are adhered to theeasier it will be to interface the two systems
5
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 630
INTERFACE
An interface is a connection at a system orsubsystem boundariesIt serves as a medium to convey the output
from one system to the input of another system
Eg
Inventory control amp purchaseInventory control sys Provide info on stock based onsales amp inventory turnover trends
6
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 730
SUBSYSTEM INTERFACE amp
INTERFACE PROBLEMSSometimes the output of one subsystem may
not be able to accommodate the needs of another subsystemEg
Production system may not able to produce enough stock to meet sales demand during peak periodCollege studentsPublisher
7
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 830
SYSTEMS amp THEIRENVIRONMENTS
People organizations and other systems thatsupply data to or receive data from the system
Managers perceive the environment differentlydepending on their area of work Further various kinds of systems interact with
the environments in different waysEg Owner of business ndash financial institutes competitorGovt agency etc
Systems may be either open or closed 8
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 930
OPEN SYSTEMS
Operate in an external environment amp exchange information amp material with thatenvironment
Out side system boundary
An open system needs to receive feedback inorder to exist in the environment and changewith it
Ex a marketing system exists in a competitive environment
9
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 430
SYSTEMS amp SUBSYSTEMS
Systems may consist of numerous subsystemseach of which may have elements interactionsamp objectives
Subsystems perform specialized tasks related tothe overall objectives of the total system
Eg Educational Systems ndash CoursesBusiness Systems ndash various subsystems
4
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 530
INPUTS amp OUTPUTSSystems or subsystems produce outputs fromvarious inputsSome value or utility must be added to the inputduring this conversion processOutputs of one subsystem may become the inputsfor anotherOutputs of one subsystem must adhere to certainstandards to become acceptable to the next
subsystemThe more exactly the standards are adhered to theeasier it will be to interface the two systems
5
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 630
INTERFACE
An interface is a connection at a system orsubsystem boundariesIt serves as a medium to convey the output
from one system to the input of another system
Eg
Inventory control amp purchaseInventory control sys Provide info on stock based onsales amp inventory turnover trends
6
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 730
SUBSYSTEM INTERFACE amp
INTERFACE PROBLEMSSometimes the output of one subsystem may
not be able to accommodate the needs of another subsystemEg
Production system may not able to produce enough stock to meet sales demand during peak periodCollege studentsPublisher
7
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 830
SYSTEMS amp THEIRENVIRONMENTS
People organizations and other systems thatsupply data to or receive data from the system
Managers perceive the environment differentlydepending on their area of work Further various kinds of systems interact with
the environments in different waysEg Owner of business ndash financial institutes competitorGovt agency etc
Systems may be either open or closed 8
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 930
OPEN SYSTEMS
Operate in an external environment amp exchange information amp material with thatenvironment
Out side system boundary
An open system needs to receive feedback inorder to exist in the environment and changewith it
Ex a marketing system exists in a competitive environment
9
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 530
INPUTS amp OUTPUTSSystems or subsystems produce outputs fromvarious inputsSome value or utility must be added to the inputduring this conversion processOutputs of one subsystem may become the inputsfor anotherOutputs of one subsystem must adhere to certainstandards to become acceptable to the next
subsystemThe more exactly the standards are adhered to theeasier it will be to interface the two systems
5
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 630
INTERFACE
An interface is a connection at a system orsubsystem boundariesIt serves as a medium to convey the output
from one system to the input of another system
Eg
Inventory control amp purchaseInventory control sys Provide info on stock based onsales amp inventory turnover trends
6
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 730
SUBSYSTEM INTERFACE amp
INTERFACE PROBLEMSSometimes the output of one subsystem may
not be able to accommodate the needs of another subsystemEg
Production system may not able to produce enough stock to meet sales demand during peak periodCollege studentsPublisher
7
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 830
SYSTEMS amp THEIRENVIRONMENTS
People organizations and other systems thatsupply data to or receive data from the system
Managers perceive the environment differentlydepending on their area of work Further various kinds of systems interact with
the environments in different waysEg Owner of business ndash financial institutes competitorGovt agency etc
Systems may be either open or closed 8
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 930
OPEN SYSTEMS
Operate in an external environment amp exchange information amp material with thatenvironment
Out side system boundary
An open system needs to receive feedback inorder to exist in the environment and changewith it
Ex a marketing system exists in a competitive environment
9
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 630
INTERFACE
An interface is a connection at a system orsubsystem boundariesIt serves as a medium to convey the output
from one system to the input of another system
Eg
Inventory control amp purchaseInventory control sys Provide info on stock based onsales amp inventory turnover trends
6
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 730
SUBSYSTEM INTERFACE amp
INTERFACE PROBLEMSSometimes the output of one subsystem may
not be able to accommodate the needs of another subsystemEg
Production system may not able to produce enough stock to meet sales demand during peak periodCollege studentsPublisher
7
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 830
SYSTEMS amp THEIRENVIRONMENTS
People organizations and other systems thatsupply data to or receive data from the system
Managers perceive the environment differentlydepending on their area of work Further various kinds of systems interact with
the environments in different waysEg Owner of business ndash financial institutes competitorGovt agency etc
Systems may be either open or closed 8
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 930
OPEN SYSTEMS
Operate in an external environment amp exchange information amp material with thatenvironment
Out side system boundary
An open system needs to receive feedback inorder to exist in the environment and changewith it
Ex a marketing system exists in a competitive environment
9
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 730
SUBSYSTEM INTERFACE amp
INTERFACE PROBLEMSSometimes the output of one subsystem may
not be able to accommodate the needs of another subsystemEg
Production system may not able to produce enough stock to meet sales demand during peak periodCollege studentsPublisher
7
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 830
SYSTEMS amp THEIRENVIRONMENTS
People organizations and other systems thatsupply data to or receive data from the system
Managers perceive the environment differentlydepending on their area of work Further various kinds of systems interact with
the environments in different waysEg Owner of business ndash financial institutes competitorGovt agency etc
Systems may be either open or closed 8
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 930
OPEN SYSTEMS
Operate in an external environment amp exchange information amp material with thatenvironment
Out side system boundary
An open system needs to receive feedback inorder to exist in the environment and changewith it
Ex a marketing system exists in a competitive environment
9
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 830
SYSTEMS amp THEIRENVIRONMENTS
People organizations and other systems thatsupply data to or receive data from the system
Managers perceive the environment differentlydepending on their area of work Further various kinds of systems interact with
the environments in different waysEg Owner of business ndash financial institutes competitorGovt agency etc
Systems may be either open or closed 8
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 930
OPEN SYSTEMS
Operate in an external environment amp exchange information amp material with thatenvironment
Out side system boundary
An open system needs to receive feedback inorder to exist in the environment and changewith it
Ex a marketing system exists in a competitive environment
9
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 930
OPEN SYSTEMS
Operate in an external environment amp exchange information amp material with thatenvironment
Out side system boundary
An open system needs to receive feedback inorder to exist in the environment and changewith it
Ex a marketing system exists in a competitive environment
9
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1030
CLOSED SYSTEM
It is relatively self-containedIt does not exchange information with theenvironment
Does not get feedback
As a result it may deteriorate and ultimately beof no useEg
Training programsUniversity courses
10
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1130
SYSTEM FEEDBACKFeedback is an indicator of currentperformance rates when compared to a setof standardsEffective feedback results in continuousadjustments and changes to make sure thatgoals are being achievedPositive feedback helps to increasemotivation and achieve results
Negative feedback is used for correction andguidanceEx Marketing managers need feedback from marketresearch
Trainers in company 11
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1230
SYSTEM ENTROPYEntropy is a state that occurs withoutmaintenanceIf new skills concepts and techniques are notlearnt they will become out of date
Auto mobile enggTraining sessions or routine physicalcheckups for employees and preventivemaintenance for equipment can prevententropyChecks provide valuable feedback which cansave a lot of time and money for the
organization 12
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1330
SYSTEM CHANGE amp STRESS
Systems change over timeChange may be due to identified problems ordue to new business opportunities This resultsin stress on the system
Ex to achieve the same profits more sales may berequired
The tendency is to localize the stress to onearea and deal with itIt is easier to deal with change in one subsystem rather than the whole system
Eg Sales manager ndash cutting cost on small customers 13
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1430
SYSTEM CHANGE amp STRESSStress also occurs if inputs are not monitored butsame outputs are expected
Ex training orientation of new employees minimizes stressfaced in the jobStudents admission
Although changes within the subsystem areeffective it is necessary to remember that
subsystems are a part of the whole system and
interact with other systemsso managers must consider the entire system whilemaking any changesEx College Test CAP
New worker14
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1530
HOW A SYSTEM WORKSSystems differ in terms of their goals components
IPL
On the basis of these the system and its workingmay differ from others
A system may exhibit signs of entropy if it is notsuccessfully managed and maintained
New employees have to be brought in from time totime and also old employees need to be retrained
15
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1630
SYSTEMS CONCEPTS INBUSINESS
The systems approach is a way of analyzingbusiness problemsThis approach views the business organizationas a system of interrelated parts designed toaccomplish goalsEach subsystem is a self-contained unit but isalso a part of the whole systemManagers need to understand the goals of thebusiness and design the functions of thesubsystems to achieve these goals
16
S S S CO C S
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1730
SYSTEMS CONCEPTS INBUSINESS
The market research subsystem of the businessmay obtain information from the customersabout changes modifications that need to bemade in product amp services
17
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1830
Market research subsystem
Input
Input
Input
Input
Process Output
Service subsystem
Marketing subsystem
Manufacturing subsystem
Process
Process
Process
Output
Output
Output
Customerneeds
Finishedgoods
Productin use
THE FIRM rsquo S SUBSYSTEMS
18
AN INFORMATION SYSTEM AS A
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 1930
AN INFORMATION SYSTEM AS ASYSTEM
The major purpose of an information system is toconvert data into informationThe information system is a subsystem of the businesssystem of an organization
Information systems that provide information on dayto day activities of a business are known asoperational systems Information systems that provide information to allow
the management to allocate resources effectively areknown as tactical systems Information systems that support the strategic plansof a business are known as strategic planning systems
19
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2030
INFORMATION SYSTEMS An information system consists of componentsthat interact to achieve the objectives of thebusiness
An information system contains elements suchas
HardwareSoftware (application s-ware amp system s-ware)
PersonnelDatabasesprocedures
20
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2130
A B C Company
Accountspayable
PurchasingCashreceipts
OrderProcessing
BillingInventory
update
Order
entry
SUBSYSTEMS OF A MAIL ORDER FIRM
21
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2230
Salestransactions
Old
Inventorymaster
InventoryUpdate
NewInventory
master
Saleslisting
Reorder
report
An inventory update system(input amp output)
22
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2330
SUBSYSTEM INTERFACES
Interfaces exist between a subsystem andother subsystemsOutputs of one subsystem become the inputsof another subsystemIf the outputs of one subsystem are incorrectthe next subsystem will be affected
Ex if the price of one item is entered incorrectlythe billing will be incorrect
23
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2430
INTERNAL CONTROLS
Internal standards are necessary to make surethat data is processed accurately Another control is the use of passwords toaccess certain dataWithout standards and controls the system maynot produce valid results or outputs
24
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2530
USING THE SYSTEMS APPROACH IN
PROBLEM SOLVINGThe systems approach to problem solvinginvolves the following steps
Define the problemGather data describing the problemIdentify alternative solutionsEvaluate these alternativesSelect and implement the best alternativeFollow up to determine whether the solution isworking or not
25
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2630
USING INFORMATION SYSTEMSFOR FEEDBACK
In todays business environment the manager hasto respond to competitors and customers on a real-time basis
The most effective managers are those who cansense interpret amp make decisions and act uponthem in a quick and timely mannerThe feedback will consist of changing informationmodels that can react to changes in the externalenvironmentThe managers have to make sure their feedback
provides them with the relevant information 26
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2730
FEEDBACK
Feedback in the learning organizationFeedback is critical to understanding anorganization from a system perspective
Some feedback is reinforcingPositive feedback influences successfulperformance
27
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2830
BALANCING FEEDBACKBalance means stability and systems try toachieve stabilityFilling a new position is a balancing processbecause skilled workforce needs to bemaintained in the firm It is like steering acarBalancing process is difficult to diagnosebecause it looks as if nothing has happenedChange is always problematic Resistance tochange is a response by the system that isattempting to maintain an implicit systemgoal 28
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 2930
Case study
Question ndash Answers Paper review
29
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system
832019 l3 - Systems amp Organizations
httpslidepdfcomreaderfulll3-systems-organizations 3030
Practice QuestionsQ1 Why is feedback useful in controlling the
internal working of a system
Q2 Explain system and Subsystem givingExample
Q3 Short notes on(a) System Entropy(b) Open amp Close system