3–1 organization an entity where two or more than two people are working together to achieve a...
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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
• Global Multinational Corp. Corporate Corporation Organizational Division
• Group Work Group / Dept.• Organismic Individual• Organic Heart / Kidneys• Cellular Individual cells
• Specific
3–5
• Organization as System
• Three major components involved:
• e.g. Watching a film
InputThrough
PutOut Put
3–6
System’s View of Organization
Environment
TRAN-SFORMATION
PROCESS
OUTPUTSProducts
AndServices
INPUTSHumanPhysical
Financial andInformational
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
OUTPUTSProducts
AndServices
INPUTSHumanPhysical
Financial andInformational
resources
Feed Back Lops
3–9
Organization as a System
• Environmental factors
INPUTS
1. Managers2. Workers3. Equipment4. Facilities5. Materials6. Money7. Energy8. Information
OUTPUTS
1. Goods2. Services3. Waste4. Profits &
losses5. Staff Growth
andSatisfaction
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
TransformationEmployee’s work activitiesManagement activitiesTechnology and operations methods
OutputsInputsRaw materials
Human resourcesCapital
TechnologyInformation
Products and servicesFinancial results
InformationHuman results
Environment
Environment
Feedback
© Prentice Hall, 2002 3-3-1111
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 2nd 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
TheOrganization
Suppliers Customers
PublicPressureGroups Competitors
3–15
Organization
• The Mega Environment
Technological element Economic 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.
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