chapter 1 basic concept system ideas

8/13/2019 Chapter 1 Basic Concept System Ideas

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BM031-3-3

MANAGEMENT PROBLEM

SOLVING

BA (Hons) Business Management

BA (Hons) Human Resource Management

Hemalatha.R



BM031-3-3

MANAGEMENT PROBLEM

SOLVING

Chapter 1

Basic Concepts : System Ideas



BM031-3-3 Managing Problem Solving Basic Concept :System Ideas 3

Topic and Structure of lesson

• „System‟

• Characteristics of a „system‟

• The Systems Thinking Approach• Types of systems




Learning Outcomes

At the end of this lecture, you should be

able to:-• Develop a thorough understanding of the term a

„system‟.

• Identify and elaborate on characteristics that denote a

„system‟

• Develop a clear understanding of the Systems

Thinking approach and reasons to its evolution.

• Identify various types of systems

• Select and justify the use of appropriate system terms




What is a “system”

Definition:

A recognizable whole which

consists of a number of

parts/components/elements,that are connected up to an

organized way, that

collectively work together to

achieve some common

purpose or goal




Characteristics of a “system”

• A system does something (input-process-output)

• Components of a system word towards a collective goal

• Systems do not operate in complete isolation

• Additional or removal of a components changes thesystem

• There are means of control and communication

(feedback) which promote system survival

• System can be complex and can be made up of othersmaller system – subsystem – suprasystem

• The system has a boundary


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• Outside the boundary is a system environment which

affects the system

(Ex: Customers, Sales channel/Distributors, Suppliers,

Competitors, Partners, Government and Legislation, theEconomy)

• The system is owned by someone – ownership

Carter et al. (1984), Checkland (1981), Checkland and

Scholes (1990), Morgan (1986) and Open University T301.

Characteristics of a “system”



Traditional Problem

“Managers typically took one part and focusedon that. Then they moved all attention to another

part.”

Carter et al. (1984), Checkland (1981), Checkland andScholes (1990), Morgan (1986) and Open University T301

The problem:

An organization could have wonderful

departments that operate well by themselves butdon‟t integrate well together. Result – organization suffers as a whole.



The “System Thinking” approach

(System Thinking – originated 1956 Prof Jay Forrester MIT)

• Powerful set of problem solving tools branching from

systems analysis

• A way of understanding reality that emphasizes the

relationship among a system‟s parts, rather than theparts themselves.

• Different from the traditional form of Analysis –

separating individual pieces of what is being studied

• Studies how the individual components interacts witheach other – the bigger picture.



• Art and science of making reliable inferences aboutbehavior by developing an increasingly deep

understanding of underlying structure

• A framework for seeing interrelationship

• A technique of helping a person view the world,including its organizations from a broad perspective that

includes structures, patterns and events rather than just

the events themselves.

• “Difficulties in solving problems often stem from the factthat problems do not occur in isolation but in relation to

each other”

(Example provided )




• Variety of diagrams and graphs to model

and predict system behavior.

• Attention to feedback is an essentialcomponents of system thinking




Types of systems – in business

• Deterministic system (mechanistic)

– All of the system‟s outputs can be determined

by its inputs.Ex: Calculator, Computer System

• Probabilistic System (stochastic)

– The outputs of the system cannot be

predicted with complete accuracy.Ex: Production Planning system used to schedule work, Sales

Forecasting System



• Adaptive system (self-organizing/cybernetic)

– Responds to changes in the environment and

modifies it‟s operations accordingly. Ex: Human beings, Plants, Business Organization

• Hard and Soft systems – Hard system has an explicit objective, governed by fixed rules

and procedures, conditions in the systems environment tend to

be stable and therefore more predictable. Result – system

outputs predicted more easily and performance can be

measured objectively.

Ex: Ticketing system, production line, manufacturing




– Soft system operates in a relatively

unpredictable environment where conditions

may be uncertain or liable for rapid change.

Usually involve people or socio-technicalsituations.

• Involves people‟s values, attitudes and behavior

which may be complex and variable.

• Properties are difficult to quantify and measure.Ex: viewpoints, conflicts, vested interest, etc…

• Takes into account “world-view ”.




• General classification

– Natural system (Ex: biological system, disease, the

weather)

– Designed abstract systems (Ex: computer

programming languages, simulatory models, information

systems)

– Engineered or designed technical systems (Ex:

process plant, computer system)

– Human Activity systems (Ex: Work organizations, a

department, committee)

Types of systems



Exercise

Exercise 1

For each of the following examples, provide counter arguments as towhy they perceived system could be classified as both HARD andSOFT depending on one‟s view:

a) container truck (a motor vehicle system for transporting heavygoods containers)

b) computer system (an operating system built up of hardware andsoftware meeting basic user needs)

c) computer steering committee (a system for guiding theintroduction and implementation of computers)

d) university/institution ( a system providing service – education)

e) hospital ( a system providing medical service)



Exercise

Exercise 2

Answer the following questions in relation to your college or university.

a) What are the institution‟s objectives?

b) Identify a range of typical inputs, processes and outputs.?

c) What feedback mechanisms are in place and what kinds of

information do they produce?

d) What control mechanisms exist?

e) What encompasses the environment of this system boundary?



Exercise

Exercise 3

a) Give an example of a “system”

b) How would you apply the “system thinking” approach from your

example above?



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References

Web Sites• http://www.thinking.net/Systems_Thinking/OverviewSTarticle.pdf

• http://www.managementhelp.org/misc/defn-systemsthinking.pdf

• http://searchcio.techtarget.com/sDefinition/0,,sid182_gci874009,00.h

tml

Books

• Alan Waring, Practical Systems Thinking, Thomson Learning 2002

• Charles Parker, Thomas Case, Management Information System –

Strategy and Action, Mitchell McGraw-Hill, 1993

http://www.thinking.net/Systems_Thinking/OverviewSTarticle.pdf

http://www.managementhelp.org/misc/defn-systemsthinking.pdf

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http://www.thinking.net/Systems_Thinking/OverviewSTarticle.pdf

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