Systems theory

Organizational systems theory stems mainly from the work of German sociologist Niklas Luhmann. It is a radically new way of thinking about organizations.

Traditionally, these theories have been studied from a particularly simplified angle. Classical management tends to view the organization as a kind of machine dedicated to productivity and efficiency. It's up to the manager to determine the best - and only - way to achieve these objectives, what Frederick Taylor calls "the best way".

Systems theory: a more global and open vision

Systems theories, on the other hand, focus more on understanding how all the distinct parts of a system cohabit to form a complex whole. These systems are seen as a whole that emerges from the aggregation of distinct entities, among which there are infinite degrees of interaction. The aim of these theories is no longer to understand in order to control, but to optimize.

First of all, systems theory conceives of organizations as entities open to an environment with which they interact. For the manager, these exchanges represent the first reality to be identified, in order to control them and put them at the service of the company.

The three components of the value chain

Next, this theory distinguishes three components in an organization's value chain: inputs (material and human resources, etc.), transformations (value creation, the heart of the company's activity) and outputs (product or service delivered). This decomposition enables each component to be identified, and its contours, contents and combinations to be defined...

In short, systems theory aims to provide managers with a tool for understanding the structure of the organization within their company. This tool reveals the complexity of the systems for which they are responsible.

The concepts of entropy and feedback

Finally, systems theory is based on two other extremely powerful and closely related concepts. The first is the highly scientific concept of entropy. This is the physical principle that any given system (physical or social) tends to deteriorate over time. The second concept, in response to the first, is that of feedback. Feedbacks develop from the results of the company's activities - the outputs. They redefine the company's resources and way of doing business - the inputs. Finally, they help maintain the organization's equilibrium and prevent its deterioration.