Sunday, 23 October 2016



It is very important to understand the power of process / procedures that actually transforming input into the output. That means there could be various system setups which has been integrated in the same organization to cater various types of objectives. In an organization, there are various departments and they process input into output as per their responsibilities and obligations towards any other departments within the organization, They also change their dynamics in accordance with Management by Objective(MBO). 

To understand, the various system setup within the organization to cater short and long term objectives, we may use different types of system within same organization to accomplish the desired goals:-

  1. Open and Closed System
  2. Physical and Abstract System
  3. Deterministic and Probabilistic System 
Open System:- Open system is a system which can gets affected by the external sources or changes its business dynamics with a change in the external business environment.

Example:- Before starting an organization, we have to see the dynamics of internal and external environments of business concepts and then we need to align our vision and mission around the requirements and in accordance with the external forces. if any changes are occurring in its external business environment, being a organization, we should immediately align internal premises to cater those changes. For instance:- in 2015, Government of India are emphasizing on using LED lamps to save power consumption and started a scheme of distributing LED lamps in EMI. This change in external environment can be converted into a viable business opportunities and those who are dealing with manufacturing of CFL LAMPS and Tube Lights, now they can strategies how to market LED lamps.

Closed System:- Closed system is a system which has no interaction with the external environment or cannot gets affected with a change in external environment.

Example:- Closed system is that provision which is being kept isolated as per part of system arrangements. Like in R&D, whatever are being researched, kept confidential and only few personnel are aware of the same, so that once the research is done, a patent and copyright can be filled to have complete ownership. If things goes out, competitors may exploit this opportunity and try to intrude in your knowledge management. 

Physical System:- Physical System is a system which is tangible in nature or which you can be seen and touched.

Example:- In Manufacturing Unit, assemply lines are the system which is installed systematically or in that order which can transform input into output. That you can see and touch.

Abstract System:- Abstract system is intangible in nature, which can be felt not seen.

Example:- When we use software, did we see how it is handling all the commands and processing the same into results. Abstract system is something whose processing and results can only be felt not seen. Peer pressure is also an example of abstract system which many HR uses to get the things done through others.

Deterministic System:- It is a system in which the result/Output is determined or known.

Example:- Deterministic system is that system which is tested with some resources and used within specific time, and the results are constant after every test.If more resources and time are spent on them, results are  increasing but upto certain limits because every system has its own boundary. When we talk about engine, its Bhp are determined if it is being operated upto 3000 rpm. There are so many examples which market themselves with the determined output property of the product. 

Probabilistic System:- It is a system in which the result / output is not known.

Example:- In the organization, there is no system which can exactly tell what will be the total sale in the current year. Actually we project the sales target of financial year on the basis of previous years performance. This can be done with the use of statistical tools like trend analysis and regression analysis etc to project the probable sales and on the basis of current market scenerio, we set targets and try to achieve those targets. Accomplishment of sales target entirely depends upon what you have arranged in the form of resources and marketing strategy. Some time you succeed and may fail in achieving your sales target.


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