Fundamentals of Management, 8th ed

The Systems Perspective

The systems perspective is one important contemporary management perspective. A

system

is an interrelated set of elements functioning as a whole.

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As shown in Figure 1.4,

by viewing an organization as a system, we can identify four basic elements: inputs, trans-

formation processes, outputs, and feedback. First, inputs are the material, human, financial,

and information resources that an organization gets from its environment. Next, through

technological and managerial processes, inputs are transformed into outputs. Outputs

include products, services, or both (tangible and intangible); profits, losses, or both (even

Inputs from the

environment:

material inputs,

human inputs,

financial inputs, and

information inputs

Transformation

process: technology,

operating systems,

administrative

systems, and

control systems

Outputs into

the environment:

products/services,

profits/losses,

employee behaviors,

and information

outputs

Feedback

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