SYSTEMS THEORY

Financial, computer, missile, and other systems, such as the ecosystem, are all ways to view something as a set of elements interacting to produce output. This viewpoint is called systems theory, and it can help you to understand how your organization or work environment operates.

System theory entails viewing an entity, such as an organization, as consisting of several elements. You must identify those elements to understand your working environment.

The basic elements of a system are:

• participants (e.g., people, machinery, organizations) who make decisions or receive inputs, outputs, or both
• processes (e.g., activities, procedures that transform or transfer inputs or outputs or both)
• inputs (e.g., data, triggers) that enable processes to occur
• outputs (e.g., data, products) that result from the execution of processes
• boundaries (e.g., internal and external points with the environment and other systems).

Systems theory offers two main benefits. It will provide you with a better understanding of your work environment. With it, you can also reduce the complexity of the environment and concentrate on what matters.

for Applying Systems Theory

• Draw symbols (e.g., circles) for the major functions or processes that occur.
• Draw symbols (e.g., boxes) reflecting the major actors or players.
• Draw lines connecting a process with another process(es), actor with another actor(s), and process(es) with actor(s).
• Label the lines to indicate what flows (e.g., forms, information) between symbols.
• Add a legend at the bottom of the page.