The systems theory approach to management is based on the assumptions and ideas of a biologist named Ludwig von Bertalanffy. Von Bertalanffy approached the field of science from the perspective that each discipline studies forms of systems that are composed of interrelated subsystems. Basically, a system is an interrelated set of elements functioning as a whole. Examples of systems would be plant cells, a clock, a hospital, or the human body. In management theory, the system is the organization composed of subsystems such as departments or divisions. Von Bertalanffy emphasized that the survival or failure of the system was dependent on the interrelation of subsystems ‘and their contribution to the overall purpose of the system. Hence, activities in a production department will be determined largely by the sales department, which in turn will be dependent on budget allocations from the accounting department, which in turn is dependent on the cost efficiency of the production department, and so forth. The implication is that no department is fully independent of another; it cannot act independently or make decisions without considering their effect on other departments.
To read more about System Theory

Eric Raymond

air dryer