Concepts of Management for Business, and Other Human Systems, Chapter 1) Basic Definitions

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A General Systems Model, for Management and Business

Chapter 1) Basic Definitions, and the Origin of the Systems Model Presented in this E-book

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Notes for this E-Book

The concepts presented in this e-book are primarily focused on management and business. However, most of these concepts also apply to other types of systems that involve human beings. Thus, anywhere you see the words business or organization in this e book, the material I am presenting may also apply to any type of system that is partly or totally comprised of human beings, such as a factory, a home-based business, a microbusiness, a school, a social club, a city, a state, a nation, a family, and an individual. In this e-book, I call the above entities, underlined in red, human systems.

In this e-book, I frequently use the word business, company, and organization interchangeably, as synonymous terms. In addition, I use the word employee, or employees to refer to non-managerial personnel.

Web Links in this E-Book

This e-book contains links to web-based articles and videos from other authors, for additional information, supporting material, and for alternative: perspectives, interpretations, explanations, and opinions. The links are the blue underlined words. In this e-book brown text, like these words, represent quotes. You can access the original source, by clicking on a link presented just before a quote. If a link fails, use the blue underlined words as a search phrase, with or for a video use The search will usually bring up the original website or one or more good alternatives.

Section 1) Basic Definitions and Related Concepts

Topic 1) What will be Presented in this E Book

In this e-book, I am presenting a general systems model for management, organizations, and for businesses of all sizes. There are a number of other management methodologies, that contain the word system, but this does not mean that they represent similar strategies and techniques. This is because the word system has a number of meanings, as illustrated below.

Topic 2) What is a System?

There are at least two valid definitions of a system. First, the term system is frequently used to refer to a procedure, organize set of steps, a method, a technique, or methodology, for carrying out a task, obtaining a goal, preventing undesirable outcomes, or solving a problem. The word system is also used to refer to a physical entity and its related dynamics, such as a business, a city, a computer, an ecological system, a factory, a family, a forest, a hurricane, an individual, a machine, a nation, an organization, a school, a social club, a state, a tornado, etc. When I use the word system in this e-book, I am referring to a physical entity, and its related dynamics. This includes any behavioral sequence, methodologies, strategies, and techniques that a human system might utilize. (See the definition below for human system.)

Topic 3) Based on the Way the Terminology is Used in This E Book, What Are Human Systems

In this e-book, I call any system that is partly or totally, comprised of human beings, a human system. Businesses, social clubs, societies, nations, cities, families, as well as a single individual, are examples of human systems. Computers, factory equipment, cell phones, and jet planes, are examples of non human systems. However, if the human operator of any device is included, the resulting concept is a human system.

Topic 4) The Utility of the Concept of a Human System

Many of the concepts, strategies, and techniques for managing and creating business, are useful for other types of human systems. In addition, variations of management and business problems and goals are common in nonbusiness human systems. In general, human systems always require some type of management, which is often similar to the strategies used to manage a business. Thus, most of the material presented in this e-book applies to all human systems, even when the word business is used in the explanation.

Topic 5) Methodologies and Techniques, Used by Human Systems

In general, human systems are very complex, and are not as predictable as most non-human systems. As a result, techniques and strategies that work well for one group of people, might not work for another. This can be the result of differences in skill, education, equipment, funding, culture, weather, geography, and many other factors. When a business is involved, we can also include differences in competition, suppliers, and customers.

As a result, of the above, it is necessary to treat each technique or strategy applied to human systems as an experiment. Sometimes a strategy or method that should not work in theory, works well for a specific group of people. In addition, strategies and techniques that should work well, might fail for a specific human system. An understanding of the above is very important for managers, business consultants, and for any individual that provides assistance for others.

Section 2) The Origin of the Systems Model, Presented in this E Book, and Related Concepts

Topic 6) Strategic Management Concepts Presented in this E book?

Much of the material presented in this e-book, fits the general category of Strategic Management. Strategic Management is comprised of concepts, theories, strategies, and techniques, plans, and goals that relate to the functioning and management of an entire organization. This includes management of employees, resources, equipment, workspace, public relations, and advertising, to obtain the objectives of the organization.

The following examples of methodologies that are NOT strategic management, will clarify the above: 1) human resource management (Video ), 2) financial management (Video ), 3) time management, (Video ), 4) marketing management (Video ), 5) sales management (Video ), 6) public relations management (Video ) (To access information on the six management categories, presented above, left click on the blue underlined words, for text-based material. If you want to see a video, left click on the word Video.)

The six management concepts presented above are NOT strategic management, but they can be a part of a strategic management plan. This generally would involve individual manages that are trained in a specific type of management, working with top-level management to help carry out the strategic management plan.

Topic 7) For Additional Information, Supporting Material, and for Alternative: Perspectives, Interpretations, and Opinions, On Strategic Management, see the Following Web Based Videos from other Authors

1) Introduction to Strategic Management by David Kryscynski, 2) Google video search page: Strategic Management "David Kryscynski", 3) Overview of the Strategic Planning Process, 4) Strategic Management Theories and Practices by Jack Militello, 5) Basic framework of Strategic Management Process, 6) Strategic Planning and Strategic Management, 7) YouTube video search page for a series of lectures, comprising the course from PALMETTO COLLEGE By Mike Ritchie, 8) The first lecture from the above series is What is Strategic Management

Topic 8) A Systems Model that Includes Strategic Management

The systems model I am presenting in this e-book represents a type of strategic management, because it applies to the entire organization. However, the basic conceptualization is a modification of Ludwig von Bertalanffy’s General Systems Theory. His concept is not actually a theory, but that is how it is referred to in the literature. More precisely his ideas comprise a conceptual framework that applies to many types of systems, to varying degrees. His conceptualization is essentially a general model of a system, which is primarily based on a living organism. Ludwig von Bertalanffy, was a biologist.

A business and many other human systems, involve a number of general concepts and structures that are more or less similar to the subsystems and related dynamics that are seen in plants and animals. This is explained below with examples. Keep in mind that all of the following applies to all types of human systems, including business and management.

Topic 9) Systems Model for Strategic Management That is Analogous to a Living Entity

The idea here is to think of a business as a living system, and then examine the similarities between a business and living organisms. To simplify the comparison, I will use an animal that lives in a natural environment. Keep in mind that there are many differences between a business and living entities, and the similarities are analogies, which can be quite interesting and useful.

Businesses and animals live in an environment with competitors. An animal receives food, water, and oxygen from the environment. Similarly, a business receives various inputs from the environment, such as supplies, money, electricity, and/or fuel. Somewhat similar to a living organism, a business produces an output, channeled to the external environment. This includes goods, services, and waste products.

Animals have an internal environment with various subsystems, such as the heart, lungs, kidneys, liver, brain, and bones. A business also has an internal environment, with subsystems, such as managers, employees, equipment, and the structure and furniture that comprises the workspace. In a large organization, various levels of management, and each department, and workgroup, are also subsystems.

In animals the internal subsystems can malfunction, which can result in illness, disability, or death. In a similar way, the internal subsystems of a business can also malfunction, which can result in low profit margins, the accumulation of debt, and eventually bankruptcy.

Subsystems that can malfunction in a business include equipment, employees, and the marketing department. However, the most important subsystem for business is management. This is because good management strategies can repair malfunctions in the other subsystems of a business. Good management strategies can also compensate for adverse environmental conditions.

An animal can become ill, and die, because of problems in the external environment. Similarly, a business can fail because of difficulties from the external environment. This includes economic depressions, adverse changes in market conditions, and excessive competition from other companies.

The subsystems that comprise an animal involve a series of complex flow patterns from one subsystem to another. For example, lower brain centers produce electrical impulses that control the heart. The heart produces a flow of blood, nutrients, and oxygen to the other subsystems of the body. If there is a malfunction in any of the flow patterns, the animal can become ill, or die. In a similar way, there are various types of flow patterns, consisting of supplies, money, energy, and information, that flow from one subsystem to another in a business. Problems with this flow pattern can lead to conflict, production problems, and a failed business. This is especially apparent with large organizations, and internal flow patterns are usually less relevant for microbusinesses.

When environmental conditions are favorable, and an animal is healthy, it will grow. Businesses tend to grow also, when environmental conditions are favorable, and when their internal systems are functioning optimally. Like animals, a business may reproduce other businesses under favorable conditions.

Most importantly, animals have various feedback-and-correction loops that control body temperature, blood pressure, heart rate, motivations, and overall behavior. A well-managed business also has a number of feedback and correction loops that include evaluations, corrections, and improvements of employee productivity, equipment, advertising, public relations, rate of production, rate of sales, rate of gross revenue, and rate of profit. If any of the above indicate failure, managerial corrections are required.

Businesses with all of the feedback correction mechanisms mentioned above are probably less vulnerable to failure, and are in a better position to deal with changes in environmental conditions. The feedback and correction mechanisms can help a business take advantage of improvements in marketing conditions, and adjusts to reductions in consumer demand.

Topic 10) What is the Utility of a System Conceptualization, for Business and Management

A system conceptualization, such as the above, can be helpful in identifying and solving problems. It can be used as a checklist to identify problems, and create the subsystems that comprise a new business.

Problems with business and management often relate to the analogies presented in the previous subtopic. This includes problems with management, marketing, and the employees. Difficulties in adjusting to external environmental conditions are also common problems that lead to business failure. This can include inadequate adjustments to changes in competition, government regulations, and overall marketing conditions.

Topic 11) When Not to Use a Systems Conceptualization

The systems conceptualization of a business or other human system, usually involves a significant level of complexity, which is not necessary for simple problems. Simple difficulties that are clearly understood can often be solved with commonsense methods. This often involves replacing a dysfunctional employee, piece of equipment, or a supplier. When the simple common sense techniques do not produce satisfactory results, the systems model described above might be helpful.

Topic 12) For Additional Information, Supporting Material, and for Alternative Perspectives, Interpretations, and Opinions, see the Following Websites from other Authors

1) The Quest for a General System Theory, 2) Ludwig von Bertalanffy (1901-1972): A Pioneer of General Systems Theory, 3) Systems Thinking, 4) On the history of Ludwig von Bertalanffy's “General Systemology”, and on its relationship to cybernetics, 5) A dictionary definition of systems theories, 6) What is Systems Theory?, 7)Cybernetics and Systems Theory, 8) A general systems model for the analysis of organizational change, 9) The Principles of General Systems Theory Applied to the Medical Model: Who Benefits? By James T. Decker

John R. Redhorse, 10) General Systems, Complex Systems, 11) The following is a free YouTube video course, on basic management, and it is comprised of 37 video lectures, by Krassimir Petrov:

Principles of Management - Lecture 01

Principles of Management - Lecture 02

Principles of Management - Lecture 03

Principles of Management - Lecture 04

Principles of Management - Lecture 05

Principles of Management - Lecture 06

Principles of Management - Lecture 07

Principles of Management - Lecture 08

Principles of Management - Lecture 09

Principles of Management - Lecture 10

Principles of Management - Lecture 11

Principles of Management - Lecture 12

Principles of Management - Lecture 13

Principles of Management - Lecture 14

Principles of Management - Lecture 15

Principles of Management - Lecture 16

Principles of Management - Lecture 17

Principles of Management - Lecture 18

Principles of Management - Lecture 19

Principles of Management - Lecture 20

Principles of Management - Lecture 21

Principles of Management - Lecture 22

Principles of Management - Lecture 23

Principles of Management - Lecture 24

Principles of Management - Lecture 25

Principles of Management - Lecture 26

Principles of Management - Lecture 27

Principles of Management - Lecture 28

Principles of Management - Lecture 29

Principles of Management - Lecture 30

Principles of Management - Lecture 31

Principles of Management - Lecture 32

Principles of Management - Lecture 33

Principles of Management - Lecture 34

Principles of Management - Lecture 35

Principles of Management - Lecture 36

Principles of Management - Lecture 37

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Hyperlink Table Of Contents

Below is the hyperlink table of contents of this chapter. If you left click on any of the blue underlined words, a section or topic heading will appear on your computer screen.

Section 1) Basic Definitions and Related Concepts

Topic 1) What will be Presented in this E Book

Topic 2) What is a System?