Theory of a System
An Organization is a System more than it is a hierarchy.
A System needs an aim. The Aim is provided by the Charter.
Managing a system requires knowledge of its components, their relations to each other and to the external environment. The capabilities of the system determine its output to a much greater extent than the efforts of individuals in the system.
The Organization’s Leadership is responsible for the aims and methods of the system, and thus for its output.
Many activities in an organization can be measured. The Organization’s Leadership is responsible for understanding: - the purposes of measurement - the difference between stable and unstable systems - how to stabilize unstable systems - the meaning of variation in stable systems - how to improve stable systems.
Most activities in an organization cannot be measured, yet they must be managed.
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