MANAGEMENT SYSTEMS

THE SYSTEMS CONCEPT

Every practising manager knows from experience that whatever actions and decisions he takes, in any particular area of activity, have results which extend well beyond that specific activity. The impact of decisions in some cases affect the whole organization and even external environment. A simple decision to throw out an inefficient, lazy worker can trigger off union activity which can, in extreme situations, even result in strike. The situation may become so hot that the union forces the neighbouring units also to join the strike. Thus when a manager takes a decision he never views its impact in isolation but tries to understand and anticipate its repercussions on the entire organisation and the environment. The manager understands that his organisation is a totality of many, inter-related, inter-dependent parts, put together for achieving the organisational objectives. This in a nutshell is the very essence of the systems concept.

A system is defined as a sum total of individuals but inter-related parts (sub-systems), and are put together according to a specific scheme or plan, to achieve the pre-stated objectives.

A system has the following components:

1.   A number of parts of sub-systems which when put together in a specific manner form a whole system

2.   Boundaries within which it exists

3.   A specific goal or goals. This goal is expressed in terms of an output which is achieved by receiving input and processing it to form the output

4.   Close inter-relationship and inter-dependency amongst the various sub-systems

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DATA, INFORMATION AND KNOWLEDGE

DATA, INFORMATION AND KNOWLEDGE 

Data is raw material with which we start and information is the finished product.

For example, look at the following links:

1234           5000.00

2345           7000.00

3456           4500.00

2571           8000.00

You would agree that the above lines contain data. But in the present form, the above data is useless. Let me now put the data in the proper context as follows:

Account Number	Money withdrawn on 25/02/2014
1234	5000.00
2345	7000.00
3456	4500.00
2571	8000.00

 

The data is now usable and we can process it to extract information such as the amount withdrawn from account number 1234 is 5000.00. We can consolidate the data and extract the information that Rs. 24500.00 were withdrawn on 25/2/04.

Information has been defined as :

Data that have been put into a meaningful and useful context and communicated to a recipient who uses it to make decisions it reduces uncertainty, reveals additional alternatives or helps eliminate irrelevant or poor ones.

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