1SYSTEM THEORY OF MANANGEMENTDefinition to systems theoryA system can be defined as a whole entity with so that there is a perceived or visible boundarythat separates its internal environment from the surrounding. From this definition, therefore, itsclear that these systems have individual and unique separate parts which interact purposely forthe system to effectively attain its goals. This theory emphasizes on the holistic nature ofmanagement, instead of individual components of the system. The system can either be open orclosed. An open system interacts with its environment by way of inputs, throughputs, andoutputs. A closed system, on the other hand, can be said to be independent of the environment.In management, the organization is seen as an open system, where inputs(resources, equipmentand the work of the staff) are transformed(throughputs-processing) and the output(en ...
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