1.2.1 Importance of Looking at Organizations as Systems

The effect of this systems theory in management is that it helps managers to look at organizations from a broader perspective. In the past, managers typically took one part and focused on it. Then they moved all attention to another part. The problem was that an organization could, for example, have wonderful departments that operate well by themselves but do not integrate well together; consequently, the organization suffers as a whole.

Now, more managers are recognizing the various parts of the organization, and, in particular, the interrelations of the parts, for example, the coordination of central offices with other departments, engineering with manufacturing, supervisors with workers, etc. Managers now focus more attention on matters of ongoing organization and feedback. Managers now diagnose problems, not by examining what appear to be separate pieces of the organization, but by recognizing larger patterns of interactions. Managers maintain perspective by focusing on the outcomes they want from their organizations. Now, manager's focus on structures that provoke behaviors that determine events – rather than reacting to events as was always done in the past.