Organizations as a system.

A system is a whole made up of parts. Each part can affect the way other parts work and the way all parts work together will determine how well the system works. when can look at business organization as a system because it conforms to the system definition; it recognizes the interrelationships of people, processes, decisions and designs organizational structure in order to realize its projected economic goal. An organization with a good designed system will requires an understanding of how all the parts (for instance, HR department, production department, logistic department, finance department, sales department, marketing department, IT department …etc) fit together as a whole, an intimate understanding of the parts themselves for a better understanding of endogenous event and a full awareness of the organization’s environment including the other external systems to which it is connected to better prepare for exogenous changes.

Some hypothetical problems that disrupt the balance of the an organization would be a coordination or communication issue between departments, for instance HR department not selecting adequate candidate for a specific job skill because it did not have all relevant information about the job, or for instance marketing department lunches a new product without integrating logistic department in the project which may cause delays of production and order fulfillment issues. Another issue that may disrupt the balance of the system is exogenous event, for instance shortages of a raw material due to whether changes which will affect negatively the production and order fulfillment therefore customer dissatisfaction. We can say that these issues emerge when departments of an organization are managed to achieve their goals at the expense of the whole.

The system thinking perspective emphasizes that everything is