Theory

1
Theory

• Systems Theory

2
Functions of Theory

• Organize facts that people observe everyday
• Predict future behavior
• Control or alter behavior

3
Systems Theory - Historical Perspective

• 1951 - Ludwig von Bertalanffy
• 1956 - Kenneth Boulding
• 1960s - practitioners were able to translate
  systems theories into a meaningful theory that
  would apply to management theory and management
  problems
• Deacon and Firebaugh (1965)

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Systems Theory

• Attempts to integrate and unify scientific
  information across many fields of knowledge
• Attempts to solve problems by looking at the
  total picture, rather than through an analysis of
  the individual components
• Systems thinking is a way of looking at the world
  in which objects are interrelated with one another

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What is a system

• A system is a coordinated set of parts for
  accomplishing goals (Deacon Firebaugh)
• A group of elements, either human or nonhuman,
  that is organized and arranged in such a way that
  the elements can act as a whole toward achieving
  some common goal, objective, or end. (Kerzner,
  H.)
• A system is a collection of parts that interact
  with each other to function as a whole (Lewis,
  J.P.)

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Systems Theory Concepts

• Boundary
• separates a systems area of influence from that
  of other systems
• determines what is included within the system and
  what is not part of the system
• defines the system, the limits or the borders
  between systems

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Systems Theory Concepts Boundary

• Represents the interface
• point of contact between the system and other
  systems
• Three kinds of boundaries
• spatial or physical
• functional
• analytical
• Permeability
• degree to which boundaries permit or impede the
  flow of energy, matter, or information into and
  out of the system
• open system
• closed system

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Systems Theory Concepts

• Inputs
• Matter, energy, information
• Outputs
• results of system processes
• Transformation
• are the actions taken upon the inputs that result
  in outputs
• Feedback
• Information concerning the outputs or the process
  of the system

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Managerial Action Using Systems Approach
Demands Values Matter Energy Information Resources
Planning Implementing Decision-Making Controlling
Communicating Sequencing Use of resources
Met demands Achieved goals Satisfaction/ Dissatisf
action Altered resources
Transformation
Outputs
Inputs
Feedback
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Systems Theory Concepts

• Entropy
• is the tendency of all forms of organization to
  move toward disorganization or death
• disorder and randomness
• Homeostasis systems try to remain in balance
  (negative entropy)
• Feedback revisited
• negative feedback (status quo static)
• positive feedback (growth, change)

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Systems Thinking in Project Management

• Linear-causal thinking
• Circular causal thinking since systems involve
  feedback
• Causality in human relations is circular

A
B
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Systems Thinking in Project Management

• Four levels of understanding in systems thinking
• Reactive
• Adaptive
• Systemic structure
• Shared vision
• Tragedy of Commons
• need to think win-win