1. 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

2. 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”

3. Business organization as a System

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

5. 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

6. 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.

7. 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

9. 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…..

10. 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

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

13. 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

14. 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

15. 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.

16. 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.

17. 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

18. 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...

19. 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.

20. 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.

21. 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.

22. 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.

23. 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

24. 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