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A   General   Systems   Model,   for Management   and   Business

By David Alderoty © 2015Chapter 9) Evaluating and Correcting Managerial Strategies, And   Organizational Efforts, with Feedback and Correction,

And   the   Concept of Organizational Order and Disorder

Over 2,000 WordsTo contact the author use: David@TechForText.com

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Notes for this E-BookThe 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-BookThis e-book contains links to web-based articles and videos from other authors, f or 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 www.Google.com , or for a video use www.google.com/videohp. The search will usually bring up the original website or one or more good alternatives.

1) Managing a System:

Conceptualizing a SystemAs you read this section, keep in mind that a system is a conceptualization of a set of interacting components, which can be useful for solving a problem, preventing problems from developing, and for achieving certain goals. The precise conceptualization of the system depends on the problem or goal that you are dealing with. For example, if you are dealing with conflict between two groups of employees that work together on the same projects, you can conceptualize the employees as one system. Each group of employees can be conceptualized as a subsystem. The system that you conceptualize does not have to include the equipment that the employees use. However, if the employees were arguing over the equipment, then your system conceptualization should include two groups of employees, and the equipment, which can be conceptualized as three subsystems.

When to use a Systems Conceptualization to Solve   Problems   and   Obtain Goals

Many problems and goals in business can be solved with simple commonsense techniques. When this is the case, it may not be necessary to use a systems conceptualization. In some cases, a systems conceptualization will add

unnecessary complexity to a problem or goal. This is especially true with micro-businesses (or mom-and-pop stores), and less true with large organizations. In general, if a problem cannot be solved by simple commonsense techniques, it is probably best to use a systems conceptualization. The systems concept considers all the relevant components and dynamics of the business, which is especially useful for difficult problems and goals. This will become apparent as you read the following paragraphs.

Note for the Following ParagraphsWhen you see the word conceptualizing anywhere in the following paragraphs, it means to describe an entity with your own words. The entity can be dynamic, or static, real, hypothetical, theoretical, or a problem or goal.

Conceptualizing a System with Words or DiagramsTo solve a problem or obtain a goal with the aid of a systems conceptualization, start by conceptualizing a relevant system, and related subsystems, and static components. This can include conceptualizations of the intern and external environments of the system, or any other relevant factors. Descriptions of relevant dynamics, timing , should be included when relevant to a problem or goal. This can include, if relevant, rates of change, rates of inputs, and rates of outputs

The conceptualizations are essentially written descriptions of the entities presented above in red underlined type, and any other factors or dynamics that relate to the problem or goal. The written descriptions can be placed in a diagram to illustrate cause-and-effect in a graphic format. Alternatively, the written descriptions can placed in paragraph or list format. When problems or goals are simple, all of the relevant components and factors required to achieve the objective, can usually be conceptualized in the mind, without writing written descriptions or creating diagrams.

The following examples will clarify the above. The examples are based on my personal observations and interpretations of specific organizations and small businesses, and related problems. However, my observations were not scientifically carried out, and they were incomplete in most of the examples. The businesses, organizations, and individuals involved with these examples are disguised, which involve some modification of the realities. Thus, these examples are presented for illustration purposes, and they should be considered hypothetical.

Topic 3xx) An Example of a Systems Conceptualization of a School   with   Severe Financial Problems

DESCRIPTION OF PROBLEM: A small school may have to go out of business, because of excess debt. The student enrollment is very low, and the resulting funds received from the students are inadequate to pay off the debt. The

excessive debt was caused by the purchase of buildings and land, with the hope of increasing student enrollment.

ONE OF THE CAUSES OF LOW STUDENT ENROLLMENT: The low school enrollment is partly caused by a unique nontraditional program that is only suitable for a small niche market. Most college students do not appear to be interested in the unique program that is offered by this school.

MARKETING DEPARTMENT FAILURES: The additional land and buildings purchased by the school probably could have attracted more students, and increased enrollment to inadequate level to pay off the debts. However, there appears to be unrecognized marketing failures. Specifically, the marketing department is staffed by people without a marketing background, and they do not have the specialized knowledge and skills needed to market the unusual program offered by the school. A highly targeted advertising campaign, with sales personnel would probably be required to market this school. This would involve advertising based on needs, focused on the niche market.

Note, if the program offered by the school were more appealing to the average college student, the efforts of the marketing department probably would have been adequate to obtain enough additional students to pay off the debts.

NICHE MARKET MAY BE TOO SMALL: There is also a possibility that the schools niche market is too small to obtain an adequate enrollment of students to pay off the debts. If this is the case, even with the most skilled marketing experts, persistent marketing failures would probably occur.

SERIOUS PROBLEMS WITH FINANCIAL MANAGEMENT There were serious problems with financial management. To save money the school reduced benefits to the staff and fired some instructors. This lowered the marketability of the school considerably, and it resulted in internal conflict.

Proper financial management strategies would be to precisely base expenditures based on each enrolled student. For example, an expenditure of 75% of the money obtained from each student could be spent on services, and supplies, and the remaining 25% could be used to pay off the debts. This would involve hiring instructors on a temporary basis, based on the number of students. The school could have also encouraged students to take some of their classes at other colleges, which would have reduced expenditures for salaries.

POORLY MANAGED SYSTEM: The colleges is very poorly managed, and it does not have the feedback and correction loops that can prevent problems before they occur. Specifically, all of the problems mentioned above, could have been easily anticipated and avoided before they occurred, by a manager with adequate experience, knowledge, and skills. A skillful manager would have quickly noticed that the working department is failing, and would have obtained assistance from marketing experts. A skillful manager would have increase the student enrollment, before purchasing new buildings. If the student enrollment could not be increased, there would be no need for such a purchase.

In general, individuals that are chosen to manage a college, and sometimes a large organization, are chosen based on achievements that are not related to

management skills.

The failure in the marketing department is probably the primary cause of the financial problems. Professionally trained and experienced marketing personnel probably would have obtained enough additional students to cover all of the debts from the purchase of the land and buildings.

Marketing department failed, because it was run by untrained employees

Expensive unpopular product, only suitable for a small niche market,

resulting in an insurmountable problem for the untrained individuals running

the marketing department

Financial management failure, which could have been minimized by cutting in-house services, and outsourcing the services to other facilities

PROBLEMSevere financial problems

Excessive debtMay have to go out of business

Shortage of clients resulting in lack of

revenue

Death caused by purchasing an unneeded land and building, with the hope of increasing the number of clients

“ Disasters don't just happen. They're [triggered by] a chain of critical events. Unreveal the fatal decisions on those final seconds from disaster.http://secondsfromdisaster.wikia.com/wiki/Seconds_from_Disaster

http://secondsfromdisaster.wikia.com/wiki/Seconds_from_Disaster

https://www.youtube.com/results?search_query=secondsfromdisaster

Topic 3, Managerial Know-How, and the application of a managerial methodology based on a system

Some of the most successful businesses that developed into giant corporations,

in the last 40 years, did so because of the quality and nature of their products, and an environment that contained a technological orientated culture. Three examples are Microsoft, Apple, and Google. They did not achieve their initial success because of ideal marketing and managerial techniques and strategies. However, these businesses are exceptions. Most businesses probably could not rely solely on their products and services to achieve success. Probably the most important factor determines success is related to the quality of the overall management strategies and techniques that were utilized to design and create the business, manage it, and market the products and/or services.

Managerial Know-HowThe managing process can involve evaluating , correcting and/or improving many components and/or subsystems that comprise a business. The major challenge with the managing process is to KNOW HOW TO EVALUATE , CORRECT and/or IMPROVE a specific component or subsystem that comprises a business. For example, monitoring a problem with employees, or equipment, is inadequate, unless the problem can be corrected by the manager, a specialist employed by the company, or an outside consultant. Another example is marketing failures, which are common with medium-sized and small

businesses that are competing with larger companies. To correct this difficulty requires specialized knowledge, skill, and experience. Skillful managers are likely to need the assistance of experts in specific fields to evaluate, and correct certain types of problems.

A major problem with managing a business is it may appear relatively simple. As a result, individuals with little or no training might be managing a small and medium-size business. Individuals without training may attempt to manage a business with skills they learned in the family. This can sometimes involve threatening employees with punishment, which is likely to lead to failure. Even if the manager controls the employees successfully, deficiencies in his or her managing skills might interfere with managing other aspects of the business.

Probably one of the most common problems faced by small and medium-size businesses involve marketing-failures. This can involve failures to compete with larger competitors. An untrained manager might think that there are no solutions for the above, and many of the other difficulties that commonly occur in a business.

The primary component of a systems perspective, and systems thinking, is to consider all the relevant factors that affect a business. This includes the internal and external subsystems and static components that comprise the system, which in this case is the business. This also includes an evaluation of the environment

of the business, and its competitors. From the system’s point of view all of the above interact to varying degrees, and the precise dynamics of the interactions might be important for specific business related problems or goals.

To facilitate the application of systems thinking, I created a list of factors that should be considered when creating a business, or evaluating business problems or goals. The list is located at the end of this section.

Components and Subsystems that Require   Skillful   Management Skillful managing often requires evaluating , correcting and/or improving one or more of the components or subsystems listed at the end of this paragraph. The list is divided into FFXXX categories, based on specific types of managing skills. To obtain study material, about a category and left click on the blue underlined words.

You probably can add additional factors to list that relate to your specific business plans and goals.

Category-1) MANAGING PEOPLE:

1) Employees and the quality and quantity of their work

2) evaluating Managers, and their effectiveness

3) Evaluating the overall conduct and performance of managers and employees

Category-2) MANAGING EQUIPMENT AND WORKSPACE:

4) Evaluating the adequacy and functionality of machinery, tools and other equipment (This can lead to repairs, or the purchase of new equipment.)

5) Evaluating workspace, to determine if it is adequate for sales or production (This can lead renting or buying additional workspace, or selling or renting unneeded rooms or real estate. )

6) Scheduling work activities in specific rooms, or in specific localities large manufacturing facilities

Category-3) MARKETING: This includes making products available to the consumer, by direct sales, or through resellers, it usually requires advertising. Marketing also can involve creating a positive image for the company, and its products and services. See the following websites from other authors for information about the above:

Category-4) TIME MANAGEMENT: This can involve evaluating time and related work output of managers, employees, and machinery. This includes searching for and eliminating anything that wastes time.

11)  The scheduling of specific appointments and/or activities

Category-5) MANAGING THE ALLOCATION OF MONEY:12) The allocation of money, for improvements, repairs, and for overall business expenses

13) The allocation of research funds, for creating new products

14) The allocation of money for investments, or for purchase of other businesses

15) The allocation of research funds

Category-6) MANAGING MONEY AND EXPENSES IN TERMS OF RATE

16) The rate of expenditures

17) The overall rate of return on business investments

18) The rate of profit

19)The rate of consumption of fuel, electricity, supplies or production materials

20) The rate of production

21) The rate of sales

Category-7) MANAGING RISKS

Strategies to prevent crime, such as theft, of supplies, violence, and sabotage

Strategies to reduce the risk of accidents

strategies to reduce the risks of

appropriate insurance to reduce the risk of financial loss as a result of adverse consequences

evaluating and maintaining safety equipment and rules

Category-7) MANAGING TO DEAL WITH ENVIRONMENTAL CHANGES) evaluating the overall economy, and making modifications to deal with economic changes

Public relations

Advertising

the general

When apply to a business, this includes managing and supervising employees, equipment, supplies, time, and money.

Management Strategies, Techniques, and PhilosophyThe individual factors that must be managed include time, money, the quality of products or services, the demand for specific products or services,

The concept of rate is important for managing a system.

terms ofrate of sales, rate of production,

product or service product design, employees, marketing,

Assisted assistant, and/or optimizing the functionality of a system. The precise techniques that are used to achieve the above, varies with the type of system, the philosophy and knowledge of the managers, and many other factors.

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Hyperlink Table Of ContentsBelow 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.

1) Managing a System: A   System   Conceptualization   of   Management 2

When to use a Systems Conceptualization to Solve   Problems   and   Obtain Goals ................ 3

Note for the Following Paragraphs .............. 4

Topic 3, Managerial Know-How, and the application of a managerial methodology based on a system 10

Managerial Know-How .............................. 11

The Word Count for this ChapterThis chapter contains over 2,000 words, WITHOUT COUNTING the table of contents, quotes, and any introductory text that is repeated in other chapters. However, the TOTAL word count for this chapter is 2,699 words.

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