Strengths and Gaps in Systems Theory
Strengths and Gaps in Systems Theory
Systems Theory
Organization theory is the macro examination that analyzes the whole organization as a functional unit (Daft, 2009). The analysis looks at the differences in behavior and structure. Systems theory is a perspective that views organizations as systems (Cunliffe, 2008). A system comprises an interrelated set of elements that obtains resources from the environment, processes them, and generates output to the environment. A system consists of subsystems that perform specialized activities necessary for an organization to function as a whole. Systems theory views organizations in two perspectives (Daft, 2009). It perceives organizations either open systems or closed systems. Organizations as open systems interact with the environment, in order to survive. It acquires resources from the environment and exports output to the environment. On the other hand, closed systems do not need the external environment for survival. They are autonomous, sealed off, and enclosed from the external environment. In relation to open systems, issues of globalization, technological innovation, ethics and social responsibility, demographic diversity, and environmental responsiveness are vital because they influence performance.
Strengths and Gaps
Systems theory provides a comprehensive view of organizations (Cunliffe, 2008). It involves the analysis of parts whose individual roles integrate to drive the whole organization. The systems perspective focuses on patterns, processes, and relationships between the environment organizations (Daft, 2009). It embraces randomness and anticipation of consequences that may not be possible to perceive under other perspective of organizational analysis. However, the challenge with systems theory is trying to make desired outcomes more probable. It places little focus on planning and engineering solutions. It pays little attention to technical issues as a factor in capacity and performance enhancement.
Systems Acquisitions and Mergers
Acquisitions and mergers are forms of acquiring organization ownership (Galpin & Herndon, 2007). A company gets access to products, technology, and other resources when it purchases a controlling interest in an organization or a part of an organization (Daft, 2009). Acquisition is a form of obtaining ownership, in which an organization purchases another organization and assumes total control. A merger is a form of acquiring ownership that involves unification of organizations into a single entity. Organizations use mergers and acquisitions to gain operational leap or advantage (Galpin & Herndon, 2007). However, they pose immense challenges to organizations that may imply the likelihood of failure. In relation to acquisitions, organizations face the challenges of actual value determination and system conversion. In terms of a merger, challenges include model integration and product harmonization. Overall, the challenges of mergers and acquisition are attributable to factors some of which are ineffective integration efforts, overvaluation, poor strategic integration and, haphazard or incomplete due diligence. Systems change in the model or structure, product, and culture due to mergers and acquisitions.
Conclusion
Organizations are systems that interact with the environment and cope with rapid environmental changes that include globalization, ethics and social responsibility, speed of responsiveness, diversity, and technological change (Daft, 2009). Organizations sometimes respond to these challenges through acquisitions and mergers.
References
Daft, R. (2009). “Organization Theory and Design (10th ed.)”. Mason, OH: Southwestern College Publishing Company.
Galpin, T. & Herndon, M. (2007). “The Complete Guide to Mergers and Acquisitions: Process Tools to Support M&A Integration”. San Francisco, CA: Josey- Bass.
Cunliffe, A. (2008). “Organization Theory”. Thousand Oaks, CA: Sage Publications, Inc.
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