System Any real world object with at least 3 following components is known as a system. And the basic components of a system are Input Process Output For e.g.--- Human, computer, university, car, vehicles, electronic equipments etc University Inputs: Students, Faculty, Textbooks Processes: Education/Courses Output: graduates Feedback: surveys, grades

System Concepts The term system is derived from the Greek word “systema” which means an organized relationship among components Definition “ A system is an orderly grouping of interdependent components linked together to achieve a specific objective” System has a specific objective Components( subsystems) are interdependent and interrelated Objective of the system is important than objectives of subsystems “Business organization is considered as a system”

Business organization as a System

Elements / components of a system Key elements of a System are Inputs Processor Output Control Feed back Environment Boundaries

Business Organization system Labour unions Customer Compare output against standard Competitors Financial institutions Feed back Action Management (control) Policy Decisions HR, Facilities, Energy, M/c, information, Materials Goods / services Transformation government The community OUTPUT PROCESS INPUT Std of performance Stake holders Vendors

Input Processor Output The elements to be processed in the system. E.g. business system accepts HR, money, materials, machineries, information as input Processor The element which transforms the input to output. E.g. Manufacturing process Output The major objective of the system is to produce output that has a value to the user. It can be a product / service.

Control Control element guides the system. Controls different activities in the system. Control can be both internal & external. Eg. Plans, policies, strategies, standards in concern of business system Feedback Control is achieved by feedback. Feedback is essential for self-regulation or correction of faults Feedback measures the output against a standard There are +ve, -ve feedbacks

Environment Boundaries It is the ‘super system’ where the organizational system resides. E.g. environment of a business system include competitors, customers, stakeholders, share holders, government, labour, vendors, etc……… Boundaries A system will have its boundaries, scope of operations E.g. organizations be local or global (geographical boundaries) etc…..

Characteristics of a System Organisation Hierarchical structure of organization from top level to bottom level. ( e.g. organizational structure) Interaction Refers to the interrelationship between the components ( E.g. purchasing dept should interact with production, sales and payroll depts.) Interdependence One system depends on the input of the other system in the organization.( e.g. the output of production dept is the input of sales dept) Integration All parts of the system works together to get the central objective Central objective Every system will have its central objective to accomplish

TYPES OF SYSTEMS Natural & Manufactured Social, people-Machine & Machine Closed & Open Adaptive & Non-Adaptive Permanent & temporary Deterministic & Probabilistic

Natural & Manufactured Natural System Natural systems abound in nature Systems which are made its own without human intervention E.g. eco system, water system, solar system Manufactured System Manufactured systems are made by human thought E.g. business systems, transportation systems, etc

Social, people-Machine & Machine Social systems Systems which are made up of people group E.g. social clubs, political parties, government agencies People-machine systems System composed of people who utilize certain equipments to achieve their objectives E.g. manufacturing companies etc…. Machine systems Pure machine systems will obtain their own inputs and will maintain themselves E.g. sensors, self-heating thermostat systems

Closed & Open Open system Closed system Systems which exchange information with the environment for reaching the objectives E.g. every business organization is open to the environment Open system are divided into 2 Adaptive and non-adaptive Closed system system which does not interact with the environment. E.g. organizational secrecies are mostly closed Generally an organization is mostly open, but merely closed.

Adaptive & non- adaptive Adaptive System System that accepts changes from its environment in order to improve the functionalities, achievements. Most systems adapt the changes in the environment in order to survive in the industry E.g. all business organizations are adaptive E.g. consider mobile industry Mobile companies had to change their plans and policies in order to survive in the industry since lots of competitors with attractive packages is evolving day-by-day.

Non- adaptive system Systems which does not changes their plans and policies according to the environment E.g. some business organizations are partially non-adaptive E.g. RAYMONDS, Louis Phillip are non-adaptive in their price plans, but adaptive in the technicalities

Permanent and Temporary Permanent systems systems that lasts for long time e.g. business firms like Wirpo, Infosys can be considered as permanent Temporary systems systems which are designed to last for a specified period of time and after the get dissolved. e.g. government, seasonal businesses, etc...

Control In Systems Control is necessary to ensure proper operation of the System Feedback process is added to basic system for this purpose Control & feed back are the vital element in any planning process to achieve the objective.

Control of business activity takes place at two levels control from within the organization and external Internal control Eg, there will be control systems within the organization.. for managing the consistency and quality of products coming off a production line for the management of waste and pollution for monitoring employee absence rates to ensure that the best candidates are recruited to a company, etc. External control There are a number of external controls which limit business activity rules and regulations about safe working practice the contents that can legitimately be put into products Standards are set by organizations (ISO,BSI etc…) Government appointed bodies regulate competition Rules to pay appropriate levels of taxes on time.

Steps in Control Setting up a standard specifying expected performance (Eg-ISO , BIS etc….) Measurement of actual performance Comparison of the actual with the standard Reporting of deviation to a control unit ( a manager) A set of actions a control unit can choose from to change performance if it is unfavorable A procedure for higher levels if the control unit fails to produce correct performance.

Feedback Feedback is defined as the return part of the o/p of a system into the i/p for the purpose of modification & control of o/p. Feedback can be positive or negative. Positive feedback causes the systems to repeat or amplify an adjustment or an action. It is in the same direction as measured deviation.

Negative Feedback Feed back that seeks to dampen and reduce fluctuations around a norm or a standard is termed as negative feedback. Negative feed back Control INPUT PROCESS OUTPUT s sensor ACTIVATING UNIT comparator standard

TYPES OF CONTROL SYSTEMS Feed back is the key to system control. There are 2 types of control system Closed loop System system in which feedback based on output, is fed back to make appr. Alternations to input eg-> every business system Open loop System system where no feed back. Control is external to the system eg-> electronic machines with no self adjustments