3–1 Organization An entity where two or more than two people are working together to achieve a common goal.

3–2 Managing Systems System mean: A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. e.g. Personal Computer

3–3 Managing Systems System Theory Provides a more general and broader picture of what managers do then the other perspectives of Management provide.

3–4 System Level General Level Component GlobalMultinational Corp. CorporateCorporation OrganizationalDivision GroupWork Group / Dept. OrganismicIndividual OrganicHeart / Kidneys CellularIndividual cells Specific

3–5 Organization as System Three major components involved: e.g. Watching a film Input Through Put Out Put

3–6 System’s View of Organization Environment TRAN- SFORMATION PROCESS OUTPUTS Products And Services INPUTS Human Physical Financial and Informational resources Feed Back Lops

3–7 Managing Systems System mean: A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. e.g. Different dept. of organization

3–8 System’s View of Organization Environment TRAN- SFORMATION PROCESS OUTPUTS Products And Services INPUTS Human Physical Financial and Informational resources Feed Back Lops

3–9 Organization as a System Environmental factors INPUTS 1.Managers 2.Workers 3.Equipment 4.Facilities 5.Materials 6.Money 7.Energy 8.Information OUTPUTS 1.Goods 2.Services 3.Waste 4.Profits & losses 5.Staff Growth and Satisfaction TRANSFORMATION Managerial and Technical abilities (POLCA & Technology) Cultural influences Market influences Performance Feed back

3–10 Managing Systems Closed System Not influenced by and do not interact with their environment. Open System Dramatically interacts with its environment Organizations Take inputs from their environments and transform or process the inputs into outputs and outputs are distributed into the environment.

System The Organization As An Open System Transformation Employee’s work activities Management activities Technology and operations methods OutputsInputs Raw materials Human resources Capital Technology Information Products and services Financial results Information Human results Environment Feedback © Prentice Hall,

3–12 Organization External Environment Major forces outside the organization with potential to influence significantly a product or service's likely success. e.g. one organization influence success or failure of 2 nd org. Or One product effect the sale, profit or loss of other product

3–13 Organization External environment is made up of : 1.The Mega Environment The broad conditions (Society/Govt. conditions) and trends in societies in which an organization operates. 2.The Task Environment Specific outside elements with which an organization interfaces / interacting in the course of conducting its business.

3–14 Organization The External Environment Mega or General Environment Task or Specific Environment The Organization SuppliersCustomers Public Pressure Groups Competitors

3–15 Organization The Mega Environment Technological elementEconomic element International element Legal – Political element Socio cultural element The Organization

3–16 Organization Five major elements; 1.Technological element Current state of knowledge regarding production of products & services (Accounting system or ATM Machines) 2.Economic element Systems of producing, distributing and consuming wealth. 3.Legal – Political element Legal & governmental systems with in which an organization must function.

3–17 Organization 4.Socio Cultural element Attitudes, values, norms, beliefs, behavior & associated demographic trends characteristic of a given geographic area. 5.International element Developments in countries outside of an organization’s home country with potential to influence the organization.