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Management and Systems Theory

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Management and Systems Theory

Systems theory is an important concept in management today. The concept treats a business entity as an open or closed system. Businesses operate in environments that allow them to interact with external systems. Systems theory treats organizations as largely open systems (Jackson, 2007). The theory suggests a relationship among inputs, processes, and outputs. For an organization that manufactures cars, the inputs include labour and materials such as steel and paint, processes include design, and outputs include finished cars.

The advantages of systems theory include simplicity, mechanisms to address uncertainty and effective use of feedback mechanisms. The theory simplifies complex organizational environments to enhance our understanding of the underlying systems. This approach also provides important information about organizations that managers can use to reduce risks associated with uncertainty. Feedback can help in enhancing various elements of an organization or other system.

The drawbacks of systems theory include the inability to capture inequality and difficulties in applying the system to complex environments. The theory focuses on the relationship among inputs, processes, and outputs to the extent that it overlooks other important areas in organizations, including social issues such as inequality and power (Dima, 2014). this limitation suggests that systems theory lacks sufficient tools to explain all the important current issues.

The theory has important applications in nursing. Healthcare departments such as emergency, radiology, and surgical units have their unique sets of staff. In systems theory, each department is viewed as interacting with other departments. The theory can uncover inefficiencies and other problems in the departments and foster nursing care through continuous improvement.

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