Business
Systems management theory highlights that an organization is one whole system comprising different departments, units, functions and divisions. Therefore, the system performs better as a whole because all parts are interdependent; hence, the failure of any part may cease organizational engine and lead to negative results. Systems theory specifically highlights the importance of positive and negative feedback loops because they impact strategic planning, strategic retreat or advancements in the light of evaluation of market environment. System theorists elucidate that an open system enables organizations to interact with external sources whereas a closed system is independent of environmental forces and pressures i.e. it could not be affected by its surroundings. Thus, it is applicable where protected environment is needed.
Management systems are particularly designed to resolve organizational complexities, hindrances and issues. The purpose of management systems is to foster conceptual thinking culture among its users so that they could develop particular solutions to address unique challenges in diverse situations. In fact, a specific management system couldn’t be successful in every culture or environment; however, the conceptual thinking leads to modifications in an existing system for problem-solving, decision-making and accomplishment of global objectives. For example, a meat company has retail outlets worldwide but it can’t sell pork in Muslim countries; therefore, the company will make changes to its management system without any compromise on HALAL labeled products to achieve sales objectives in international markets.
The System Management Applications not only facilitate in examination of events, workplace patterns and decisions but also their expected consequences. Therefore, the managers could define intrinsic and extrinsic risks that could be mitigated through contingency planning.
