GENERAL SYSTEMS THEORY

Engr. Marvin Darius M. Lagasca

Professor: Jo B. BitonioME 215 Management of Change & Transition

Ludwig von Bertanlaffy

Put forward in 1968 a theory known as

General Systems Theory. The theory

attempted to provide alternatives to

conventional models of organization.

Principles of General Systems Theory

Laws that govern biological open systems can be applied to systems of any form.

Open-Systems Theory Principles– Parts that make up the system are interrelated.– Health of overall system is contingent on subsystem functioning.– Open systems import and export material from and to the

environment.– Permeable boundaries (materials can pass through)– Relative openness (system can regulate permeability)– Synergy (extra energy causes nonsummativity--whole is greater

than sum of parts)– Equifinality vs. “one best way.”

Systems Theory Emphasizes:

Synergy Interdependence Interconnections

– within the organization – between the organization and the environment

Organization as ORGANISM

General Theoretical Distinctions

Previous theories prescribe organizational behavior, organizational structure or managerial practice (prediction and control). MACHINE

Systems theory provides an analytical framework for viewing an organization in general (description and explanation). ORGANISM

Strengths

Recognizes . . .– interdependence of personnel– impact of environment on organizational structure and

function– effect of outside stakeholders on the organization

Focuses on environment and how changes can impact the organization

Seeks to explain “synergy” & “interdependence” Broadens the theoretical lens for viewing

organizational behavior.

Summary Systems Theory is NOT a prescriptive management theory Attempts to widen lens through which we examine and

understand organizational behavior Key Concepts

– Synergy– Interdependence– Interconnections– Organization is treated not as a machine but an

organism Organizations cannot separate from their environment Organizational teams or subsystems cannot operate in

isolation

Contingency Theory

First extension of Systems Theory into Management Practice - CONTINGENCY THEORY

There is no one best way to structure and manage organizations.

Structure and management are contingent on the nature of the environment in which the organization is situated.

Argues for “finding the best communication structure under a given set of environmental circumstances.

Two Contingency Theories Burns and Stalker (1968) Management of Innovation

– Organizational systems should vary based on the level of stability in the environment

– Two different types of management systems Mechanistic systems - appropriate for stable environment Organic systems - required in changing environments (unstable

conditions)– Management is the Dependent Variable

Variations in environmental factors lead to management

Lawrence and Lorsch (1969)– Key Issue is environmental uncertainty and information flow– Focus on exploring and improving the organization’s relationship

with the environment– Environment is characterized along a certainty-uncertainty

continuum