Systems theory in management
Systems theory is a management theory that treats an organization, as the name suggests, as a system. The system, in this case, is presumed to be either closed or open, though most approaches treat an organization as an open system. An open system gets to interact with the environment, and this is through the inputs, throughputs, and outputs. Applying the systems theory to management, which is the practice of getting things done by converting inputs to outputs, the inputs are natural resources, employees, and equipment under the control of the management (Jackson, 2015). These inputs are then transformed to throughputs, which end up yielding the final product or service called output.
Nevertheless, there are various pros and cons of systems theory. One of the pros of this theory is that it increases the adaptability of an organization to change, as an organization is studied as a whole and not through its parts. This concept makes it easier for an organization to adapt to its environmental needs. Apart from that, the other advantage of the systems theory is regarding uniformity in decision making in that no specific domain in the organization is accorded preferential treatment (Dima, 2015).
On the other hand, there are various cons of systems theory. The main disadvantage is that this theory may not be suitably applicable to small organizations. Systems theory assumes that most organizations are big and complex. The other disadvantage is that the theory may not be practical and may lead to delayed decision making (Cunliffe & Luhman, 2012). Last but not least, the nature of interdependence of various parts that form a whole system may not be well-defined, and this is the other weakness of systems theory.
However, systems theory can effectively be applied in the context of organizational change. The theory offers a holistic approach to viewing an organization (Cunliffe & Luhman, 2012). The importance of this, in the face of change, is that it enhances a favorable forecast for which the stated goals to be achieved are viewed. Therefore, systems theory better supports change in an organization.