The Systems Theory
Systems Theory Summary:
The systems theory (1960-1980) states that the structures of organizations are open systems which are
influenced by interdependent variables that rely on openness and feedback. A systems organization
provides every worker with consciously coordinated activities or forces to achieve an agreed upon outcome
Assumptions of the Systems Theory:
 Epistemological Assumptions (study of knowledge)
- Groups will use processes and their resources within their environment to develop the
desired outputs
 Ontological Assumptions (study of the state of being: identities)
- The theory is deterministic, because the environment and the resources provide the
processes that are used to gain the desired outputs
 Organizations follow the ideas of equifinality and entropy
-Equifinality is the idea that multiple paths lead to the same outcome
-Entropy is the belief that an organization needs to import new energies and ideas in order to
avoid deterioration and disintegration
 Every organization is dependent on its environment
-The environment provides raw material and other inputs while the organization produces the
outputs
-Tightly knit parts of the organization influence each other directly while loosely knit parts of
the organization are more interdependent of one another
 Organizations should focus on the process that shapes their activities and structures
- Activities and structures of an organization should be able to adapt to their customers and
anticipate what they will want and/or need in the future
 “System” might but assumed to mean harmony and unity, but this is not always the case
 Organizations should believe in “wholeness”
- Each organization is viewed as a part of a larger system and composed of smaller
subsystems
- Every worker in the organization should be doing their part to achieve a common goal that
is central to the overall objective of the organization
Characteristic Patterns of the Systems Theory:
 Organizations function like a living organization
- All parts of the organization are interdependent
- Organizations have ups and downs—similar to human beings
- Organizations must balance stability and adaption to compete with competitors
 Groups can be open systems
- Systems are defined as a set of actions that affect one another within an environment and
form a larger pattern that is different from any of the other parts
- Groups are deterministic due to the environment and resources which provided the
processes that are used to gain the correct outputs
- Each group is influenced by such independent variables, i.e.: interdependence and the
input/output process
- Feedback between workers provides the ability for monitoring and adjustment
 Groups can be closed systems
 Systems consists of objects in an environment that exhibit an internal relationship among
other objects
- Objects are defined as parts, elements or variables that are both physical and abstract
- Systems rely on the wholeness and interdependence, focusing on the idea that the whole
of an organization is more than the sum of all the interdependent parts
 Systems theory focuses on correlations, supra- and sub-systems, chains of influence, and
cause and effect
- Goals are achieved through lines, communes, and hierarchies
- Communication is perceived as an integrated process rather than an isolated event
- Each part of the organization affect and is affected by the other parts
Systems Theorists and Practitioners:
 Ludwig von Bertalanffy: biologist/developer of systems theory
 Nikolas Luhmann; German sociologist and systems theorist
 Used by both Marx and Darwin in their development of theories
Network Analysis in Open Systems Theory:
 Network Roles
- Group or clique members: most important
1. Rely on interaction and interdependence
2. Made up of subgroups and cliques
3. Relies on coordination and relationships
4. Wholeness
- Bridge: most important
1. Connects one variable to another (interaction)
2. Transfers feedback from environment and from within the system
- Isolate: least important
1. No feedback/openness
2. No groups or interactions
 Dimensions of Analysis for Individuals
- Connectedness and Accessibility: most important
1. Chains of influence supra and sub-systems
2. Based on feedback which relies on connectedness and accessibility
3. Each part affected by each other—outcome is a product of multiple
actions
- Centrality: least important
1. No real hierarchy in systems
2. All parts work together
3. The common goal is central, not an individual
 Dimensions of Analysis for Dyads
- All elements important: strength, symmetry, directions, stability, multiplexity and
openness.
- Openness: most important
1. Everyone is connected to everyone and reflects ideas of each other
2. Rely on feedback from environment and between workers
- Stability: most important
1. Environment needs stability and openness and can adjust based on feedback
2. Must balance stability and adaption to compete with competitors
 Dimensions of Analysis for Whole Networks
- Clustering: most important
1. Subgroups and cliques make up system like a living organism
2. All parts are part of a larger system which is composed of smaller
subsystems.
- Most of communication: most important
1. Feedback
- Size: least important
1. Not relevant to how a system works
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