Systems Thinking as a Holistic Approach - Literature review Example

Introduction A system consists of interrelated parts and components that interact with each other in order to perform a specific activity. Systems’ thinking is a holistic approach whereby a system is analyzed or studied by breaking it down into separate elements. Sytems thinking can be used to conduct research in different subject matters such as educational systems, political matters, environmental aspects, economic conditions, medical research and human resource amongst many others. According to the systems thinking approach, a particular behaviour results from the effects of reinforcing and balancing. Reinforcing is the process by which the different components of a system are put into action. Balancing process makes sure that every component of a system is in equilibrium with each other. Feedback forms an integral part of the sytems thinking approach. For instance while analyzing a project on human resource; the management is considering increasing the number of employees in the organization, however past results show that increasing the number of workers has proven to be counterproductive. Therefore in such a scenario the firm must take into consideration feedbacks generated from past actions to analyse the current system (Checkland and Poulter, 2010). Sytems thinking was founded in the year 1956 by the MIT professor Jay Forrestor. Forrestor had recognized that there was a need of a better way of testing new ideas and aspects of the social system like in the manner how ideas are tested in engineering. In traditional forms of analysis, a system in broken up into different parts and then studied. In case of sytems thinking, a system’s parts are analysed on the basis of how they interact with each other in order to produce behaviour (Checkland and Winter, 2006). System thinking emphasizes upon the proper usage of input so that the desired results can be obtained. In case of analyzing a project as a system, the inputs are capital, labour, machines materials and time. The desired output can be in the form of services and products. The systems thinking approach induces the detailed analysis of each aspect of the action plan that is formulated to achieve the desired results. Therefore the management needs to consider the critical success factors and the impact of the external environment upon the operations. The systems theory brings stability in the operations of an organization which otherwise can be chaotic as the business environment, both internal and external are constantly changing. The systems approach also establishes adequate link between the different components of an organization by establishing linear relationships between different organizational units and their functions. The main objective of systems thinking is to provide a mathematical or a logical solution for understanding the complex behaviour of business environment so that adequate guidance can be generated to meet desired organizational and social goals (Rubenstein-Montano, et al., 2001). Importance of sytems thinking in management Systems thinking approach has grown into wide spread use because it helps management to solve complex problems more effectively. Most organizations develop a sense of urgency to solve problems quickly. This leads to devastating consequences in the long run as managers fail to analyse future consequences. Short sightedness has led managers to solve and resolve the same problems again and again. This leads to loss of valuable time. In systems thinking approach a given situation is analysed from different aspects and the impact of each action upon different business units and their functioning is critically evaluated. Even the long run effects from various view point are taken into consideration. The process of systems thinking works best when the employees and managers can naturally adhere to it for solving problems and in decision making and when the organization has a suitable technique of approach towards sytems thinking. In the systems thinking approach, management alone is not involved. The process involves the entire organization and all the associated stakeholders. A problem or a plan of action is analyzed and studied from the view point of all the associated aspects of business. The concept of sytems thinking helps tapping intelligence from different communities and stakeholders who are directly or indirectly associated with e business. Through the sytems thinking approach, a fundamental aspect in management gets solved automatically, that is taking into account the interest of stakeholders. The process of systems thinking is more than just structuring the different conclusions that are available from different thinking perspectives. It is also about shifting the way management and the organization as a whole thinks, communicates and takes action. The decision making process involves studying a given scenario from the viewpoints of; past results; the effects upon future results and the reaction of different stakeholders. Business environment is constantly changing. New technologies, ideas and concepts change the way an organization functions overtime. It is essential that management incorporates the aspect of change in the process of decision making. Along with changing business environment it becomes essential for the management to incorporate change in the way the organization communicates with external and internal components and the way in which operations are carried out. Distance education has witnessed high popularity in the past decade because of ease of accessibility and flexibility. Distance education is grounded upon the systems approach. The systems science has helped distance education to emerge as a concept of learning that can be accessed by anyone from anywhere at any time. Credit also goes to the high use of technology and media in the field of distance education. It incorporates the use of multimedia for instructional purpose. Systems thinking have implemented the practice of developing course teams for the purpose of providing instructions and designing the entire structure of teaching. The systems thinking approach has helped to understand that in distance education the aspect of separation between the learner and the instructor, also known as the transactional distance, arises out of two factors. Firstly the level of interdependence that each learner requires in the process of learning and secondly the structure that the institution requires to follow so that student can meet the necessary learning objective. Distance education is largely seen to be successfully implemented in those areas of studies where the interdependence between students is low. This feature is seen to exist in those fields of studies that incorporate self research and practice where the subject matter of learning varies from student to student. Also different types of distance education institutes are seen to follow different types of structure. The structure is chosen based upon the understanding regarding the type of knowledge that is imparted, the degree of explanation and faculty involvement that is required, the medium that best suits the instruction type and student requirements (Cordoba-Pachon, J.R., 2010). Sytems approach to management Organizational management has been following three main types of models predominantly for performing functions related to planning and decision making. They are the traditional approaches, human relations theory and the sytems thinking approach. The traditional thinking was based upon Taylor and Fayol’s scientific and administrative management theory that viewed the organization as a machine. This view was criticized upon the grounds that it had little or no consideration for the aspect of human resource as a valid an important factor for organizational success. The human relations theory was based upon the studies conducted by Herzberg, Maslow and Mayo. It drew valid conclusions by establishing relations between organizational affectivity with group behaviour, leadership and individual motivation. Although this theory was suitable for considering various needs of the employees, it lacked sufficient insight upon aspects such as marketing, technology, competition and organizational structure. Due to weaknesses in both the traditional and the human relations approaches, the system thinking concept emerged as a dominant aspect for managing organizations. The sytems approach views organization as a whole and as an open system that was in constant interaction with the external and internal environment (Frank, 2000). The functionalist sytems approach Functionalism has supplied the concept of sytems thinking with the required ground for sociological and philosophical factors. Much of the concept of systems thinking is governed by functionalism. Functionalism identifies an organisation as co operative system whereby an individual tries to do something under strict environmental constrains. Therefore in order to achieve desired results it becomes necessary that the individuals co-operate with each other. It is seen that there is a high degree of co-operation that exists between department and between employees. Co-operation arises because tasks and responsibilities are subdivided. Therefore if one unit stops functioning, it impacts the operations in another unit. Individuals recognize this phenomenon and perform their duties with diligence and in a timely manner so that related work units do not suffer. Co-operation also paves way exchange of skill and knowledge within a organization. From the perspective of the external environment also it can be seen that there exists a sufficient amount of co-operation between business concerns and the society. The idea upon which a business framework is set up and what it promises to deliver must be supportive towards social development Functionist approach also identifies contingency as an important factor. The contingency theory sees an organization as a collection of systems and subsystems that are interdependent. The functions performed by each system are important and influences organizational success as a whole. Firms have to operate with limited resources to achieve desired results. Using proper technology and methods, inputs are converted into outputs. The inputs are generally in the form of matter, energy and information. The outputs obtained can be in form of products, services, energy and information. The management needs to consider the best structure for establishing adequate connection for flow of goods and services between the different systems and subsystems. The contingency theory also views an organization as an open system. As an open system an organization influences and also gets influenced by the external factors existing in the environment such as lack of resource availability, shortage of labour, lack of technological growth and so on. This paves way for studying the existing threats and opportunities that an organization has in context of the entire environment in which the organization functions. Apart from the environment, size and structure are also considered to be variable factors that affect the way in which organizations function. The theory imposes that subsystems within an organization are designed in accordance with each other and the demands of the external environment. On the basis of the resources that are at disposal for the organization, it suitably decides upon the plan of action so that the desired results can be achieved. Hence based on the contingency factor link is established between goals of the organization, resource utilization, returns available and impact upon society. The socio technical sytems theory have also helped in shaping the organizations perspective regarding the systems theory. It has been seen that the organizational operations are significantly impacted by the advancement of technology and how effectively the organization can adapt itself with the changing technological scenario (Jackson, 2000). The postmodern systems approach Society at present is said to have entered a postmodern era. The postmodern era is characterized by technical, economical and social advancement all at once. Lack of ethics and adherence towards corrupt activities has made managing the society all the more difficult. The postmodern approach in sytems thinking emphasizes on the fact that social aspects are required to be considered and valued while analyzing and constructing an organizational structure. The way organizations functions vary from society to society due to the influence of social factors such as education, culture, politics, and faith. An organisation functions within the framework of the society and cannot remain aloof from getting influenced by the social aspects. The postmodern approach to systems theory states that an organization formulates its goals, strategies and operations based on the resources obtain from the society and the benefits that the society expects to obtain from the organization. It is a mutual give and take relationship that exists between the society and an organization. As the external environment of a business is in a constant state of change it becomes necessary for the management to formulate strategies and plans accordingly so that the organization moves ahead along with the forward moving society. This incorporates analysing the changing preferences and needs of the society and delivering accordingly. The structure of an organization needs to be such that it can easily incorporate changes especially technological. The postmodern approach also takes into consideration the aspect of optimization. Rapidly declining resources and changing climatic conditions have induced organizations to carry on operations causing least negative effects upon the environment. Minimization of wastage and recycling are also factors that are followed by many organization of the modern era. The internet has played a significant role in actualizing the postmodern era. It has compressed time and space. Information dissemination has never been this easy as it is at present. However overload of information has lead to lack of authenticity and reliability. Although receiving information on time has become easy but receiving correct information is challenging as data is seen to get easily manipulated. Electronic simulation has helped to directly represent the real world. This has helped in studying the results and implications that an operation is expected to generate in the future. Computer programs and networks have facilitated the easy performance of many business activities. Postmodern theory firmly believes that there is a strong commitment between information technology and business environment. However the aspect that the modern era relies heavily upon software technology has drifted it away from the realistic matters such as the growth of unemployment due to advancement of technology that have automated a large number of jobs. Similarly the advancement in technology has also brought with the danger of losing valuable information and records due to hacking and system breakdown. The postmodern era although has accounted for a high degree of growth, it also has made individuals and organizations highly dependent on software technology for almost all types of jobs excepting those that require physical labour. This high technology dependence may induce sense of lethargy in the coming generations. The emancipator systems approach Industrialization had induced the aspect of human benefactor. This means that machines had helped to relieve pressure from workers. An important aspect to be considered in this regard is that, in the earlier days population condition was not as much out of control as it is now. Hence technological growth worked in favour of social development from all aspects. In the present times however, the situation is different. Advancement in technology has reduced the number of jobs that require human intervention. One of the major features of society today is that there is a high degree of concentration of power and technical control. The system of governance has not been successful at providing equal rights due to increase of bureaucratic control. Capitalism has further aggravated the problem by concentrating power in the hands of the rich and powerful. The emancipator system also takes into account the speed of change in society overtime. One of the significant matters of concern is the rapidly growing population and the concentration of population in the metropolitan areas. On one hand the growth of population has created demand for more jobs and on the other hand technological advancement reduced the number of jobs. All these aspects lay immense burden upon planning the growth of the society. The emancipator theory suggests that organizations need to incorporate change keeping in mind the current social problems and the problems that are likely to arise in the future. In other words organization should become responsible for solving social issues and not aggravate them. Along with technological advancement it is important for business concerns to develop new and potential areas or department that can generate work opportunities. Such an approach towards managing society can be considered positive. The interpretive systems approach SSM Overview Seven stages of SSM Modes of SSM Existing studies of the use of system thinking in ODE Conclusion Reference list Checkland, P. and Poulter, J., 2010. Systems Approaches to Managing Change: A Practical Guide. London: Springer-Verlag Checkland, P, and Winter M., 2006. “Process and content: two Ways of using SSM.” Journal of the Operational Research Society 57(12): pp. 1435–1441. Cordoba-Pachon, J.R., 2010. System practice in information system. England: Routledge. Jackson, M.C, 2000. Systems approaches to management. New York: Springer. Rubenstein-Montano, B., Liebowitz, J., Buchwalter, J., McCaw, D., Newman, B. and Rebeck, K., 2001. A systems thinking framework for knowledge management. Decision support systems, 31(1), pp. 5-16. Frank, M., 2000. Engineering systems thinking and systems thinking. Systems Engineering, 3(3), pp. 163-168. Read More