Understanding an organization is a complex task. Often it's a huge system consisting of several parts. To just take out the pieces and analyze them one by one is not a good idea, then we will miss the uniqueness of the system. The late C. West Churchman wrote "The Systems Approach" in 1968. It's a classic book which is still valid today. I will use his description of the meaning of a system in order to give a short summary of a systems central components and how to approach it:
A good point of departure is to start with the CENTRAL OBJECTIVE of the whole system. What's the main purpose with the system's (the organization's) existence? We can then try to identify the SUB-GOALS that need to be reached in order for the central objective to be realized. However, even if the goals are clearly described, there can be other drivers behind the goals. One example is to study. The goal of studying is to gain a real understanding of the course content. For the student, on the other hand, the real goal may be to get as high grades as possible in order to get scholarships or to be accepted to other studies. Organizations are full of expressed and "hidden" goals and the tension between these can complicate things.
A system also consists of its ENVIRONMENT. In order to find out what's in the environment, two questions can be asked: "Can I do something about it?" and "Does it matter in relation to my goals?" If the answer to the first question is "no" and to the other question "yes", it belongs to the environment. It often happens that systems do not work satisfactorily because their leaders have come to the conclusion that certain parts are outside the system and cannot be influenced. Even if that is true, we have to relate to them in some way - and understand how they affect the system.
RESOURCES, in turn, are, in contrast to the environment, the things that the system can change and use for its own benefit. Resources are within the system. They are means that the system uses to perform its tasks. The organization can decide who will perform various activities, how the money will be distributed and how long the work should take. However, as with the environment, it can be difficult to get a true understanding about its resources. It can for example be tempting to think that unused labor and equipment are the same as unused resources.
COMPONENTS are the basic tasks that the system must perform. These can be woven into the many different parts of the organization. Therefore, it can be problematic when employees strongly identify themselves with a specific department. A department cannot assess the value of an activity to the system as a whole, only the performance of its own unit.
The last part of the system is its MANAGEMENT which is responsible for the whole system.
All these parts must be taken into consideration when trying to understand an organization. Hence, a systemic thinking is important in the process of developing healthy and learning organizations.
