1.4.1. The Systems Theory
A system is a collection of interdependent components that work together to achieve a shared objective. Within a system, these components—known as subsystems—rely on one another to function effectively and fulfill the system’s overall purpose.
The systems theory can also be applied to organizations. From the lens of systems theory, an organization is a system that exhibit several key characteristics (Payne-Palacio and Theis 2016):
Subsystem Integration: Organizations are composed of multiple interconnected subsystems that interact to accomplish defined goals and objectives.
Complexity and Interdependence: They are highly complex entities that require careful attention to inputs, processes, outputs, feedback mechanisms, and the broader environment in which they operate.
Societal Embeddedness: Organizations do not exist in isolation. They are embedded within and interdependent on the larger society and other systems operating within it.
Dynamic Interaction: Organizations are not static. They continuously interact with their environment, influencing and being influenced by it in return.
Holistic Functioning: The effectiveness of an organization cannot be understood by examining its individual parts in isolation. Instead, it is defined by the quality of interactions and coordination among its subsystems.
Dynamic Equilibrium: Organizations maintain a state of dynamic balance—known as homeostasis—adapting to internal and external changes while striving to remain stable and effective.
