System theory of management

Ø     System is the combination of different parts, which are interrelated and dependent on each other and work together to achieve common goal. A system is an interrelated set of elements functioning as a whole. IN other words, a system is a group of interrelated and interdependent parts are working towards a similar goal. It is a combination of several parts forming a complex whole. A system is the system of combination of different interrelated and interdependent part which work together to obtain common goal. System theory views organization as a unified purposeful system consisting of different interrelated parts. System theory helps manager to understand organization as a whole and he/she also knows how the different parts of organization are interrelated with each other. Organization is a system consisting of input process, output process and feedback component.