1) A system is made up of interrelated parts that work together as a unified whole. An organization is a system with subsystems and parts that are mutually dependent. 2) An organization can be viewed as an open system that interacts with its external environment by taking in inputs and transforming them into outputs. Key aspects of an open system include inputs, transformation processes, outputs, and feedback. 3) The seven factors model describes seven interrelated factors - strategy, structure, systems, style, staff, skills, and shared values - that determine how a corporation operates and should be considered by managers for successful implementation of strategies.

1. 

2. System
o A set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
o An organized or complex whole; an assemblage or
combination of things or parts forming a complex
unitary whole
o A system is basically a combination of parts
(subsystem). Each part may have various sub-parts.
o An organization is a system of mutually dependent
parts, each of which may include many subsystem.

3.  Management as a Social System
 Management as Open System
 Adaptive
 Dynamic
 Probabilistic
 Multilevel and Multidimensional
 Multivariable
 An integral approach
 Multidisciplinary

4. Closed systems
Are not influenced by and do not interact
with their environment (all system input and
output is internal).
Open systems
Dynamically interact to their environments
by taking in inputs and transforming them
into outputs that are distributed into their
environments.

5. 1. Inputs – are people, money, information,
equipment, and materials required to produce and
organization’s goods or services.
2. Output – the products, services, profits, loses,
employee, satisfaction or discontent, and the like
that are produced by the organization.
3. Transformation Process – the organization’s
capabilities in management and technology that are
applied to converting inputs into outputs.
4. Feedback – information about the reaction of the
environment to the outputs that affects the inputs.

7. © 2007 Prentice Hall, Inc. All rights
reserved.
2–7

8.  It is a management model that describes 7 factors to
organize a company in an holistic and effective
way.
 Together these factors determine the way in which
a corporation operates. Managers should take into
account all seven of these factors, to be sure of
successful implementation of a strategy. Large or
small.
 They're all interdependent, so if you fail to pay
proper attention to one of them, this may effect all
others as well. On top of that, the relative importance
of each factor may vary over time.

10. Hard Elements
 Strategy
 Structure
 Systems
"Hard" elements are
easier to define or
identify and
management can
directly influence
them: These are
strategy
statements;
organization charts
and reporting lines

11. Soft Elements
 Shared Values
 Skills
 Style
 Staff
"Soft" elements, on the
other hand, can be more
difficult to describe, and
are less tangible and more
influenced by culture.
However, these soft
elements are as important
as the hard elements if the
organization is going to be
successful.

12.  Strategy - Actions a
company plans in
response to or
anticipation of changes
in its external
environment. It may
also be seen as plans
for allocation of
resources to enable the
company’s identified
goals

13.  Structure - Basis for
specialization and
coordination
influenced primarily by
strategy and by
organizational size
and diversity. This is
also the way that
different units in the
firm relate to each
other.

14.  Systems - Formal and
informal procedures that
support the strategy and
structure. Often internal
systems are more powerful
than they are given credit
for. They are also the
procedures and processes
that characterize how the
work should be done and
internal systems used to
accomplish the needed
performance

15.  Style - The culture of
the organization, how
key managers behave
and what they do
rather than what they
say. It answers the
questions: How do they
spend their time? What
are they focusing their
attention on?

16.  Staff - Human resource
management, the
processes and efforts used
to develop managers,
socialization, and the
shaping of basic
management values, It also
includes ways of
introducing young recruits
to the company, and the
support given to manage
employees’ careers

17.  Skills - These are the
distinctive and core
competencies of the
company, They include the
ways competencies are
expanded or shifted. This
can also be determined
from the perspective of
core competencies that
exist and are developed in
the firm.

18.  Shared values -Also called super ordinate goals, these
are the central believes and attitudes, guiding concepts,
and fundamental ideas around which a business is built.
Usually stated at the abstract level, they have great
meaning inside the organization even though outsiders
may not see or understand them. They can be
summarized as what extent the company stands for and
what it believes in.

19. These seven elements also
help estimate the effectiveness
of a firm. They are interrelated -
- if one element changes, it will
affect all the others.

20. It aims at meaningful analysis of
organizations and their management.
It facilitates the interaction between
organization and its environment.It
guides managers to avoid analysing
problems in isolation and to develop
an integrated approach.

21. Over-conceptual
The approach does not recognize the
differences in systems.
Systems philosophy does not specify
the nature of interactions and inter-
dependencies.
Unpractical: It cannot be easily and
directly applied to practical problems.

22.  Coordination of the organization’s parts is
essential for proper functioning of the
entire organization.
 Decisions and actions taken in one area of
the organization will have an effect in
other areas of the organization.
 Organizations are not self-contained and,
therefore, must adapt to changes in their
external environment.