Systems And Subsystems

General Information

The organisation is considered to be the system. All activities, function, procedures and processes that happen within this system, is known as internal subsystems. These include cost accounting, budgetary control, planning and so forth. The set guidelines that direct an organisation’s day to day activities form part of the internal system. Filing systems, time-management, expense approval, invoice payments and optimal employee functioning are all necessary to keep the organization alive and well.

Clients, suppliers, customers and agencies refer to the external environment. This external environment also includes aspects such as purchasing, marketing, distribution and research.

The interaction between the internal and external environment implies that information is shared, leading to different decisions and actions taking place within these subsystems.

All of the above subsystems will require communication between the different subsystems. Key aspects and applying relevant policies and guidelines will ensure the optimal functioning of the organisation.

Examples of administrative systems include for example the financial management system, the system according to which the human resource records are maintained and the administrative system for the marketing function.

A system can also be described as an entity that maintains its existence through the mutual interaction of the unique parts of that system, called the subsystems.

Objectives Of A System

Before a specific system can be developed, it is important to identify the objectives of that such a system will address. Once a system is implemented, managers will know where their input comes from, who or what will be affected by their outputs, they will be able to control certain aspects of the process and the efficiency and effectiveness of the organisation will be improved.

If there are no clearly stated objectives, the system will be set up for failure, even before it commences. Since the system as a whole has many subsystems (internally and externally), it is crucial to speedily identify any threats or weaknesses within that subsystem. That threat or weakness will have a debilitating effect on the system and the system’s optimal level of functioning. Once the need to change some aspects within the subsystem has been identified, it is important to ensure that the correct communication with regards to adjustment is sent to all role-players who will be affected by the changes made.

The following objectives of a system can be set:

• Ensuring and support the maximized and most efficient use of organisation resources.
• Enhancing the operating efficiency of the organisation.
• Enhancing the productivity of the organisation.
• To address and achieve the objectives of the organisation.
• Apply logistical aspects and therefore manage the important details of the business in a practical manner.
• To facilitate the operation of all the different functions within an organisation.

Elements Of A System

The following elements of a system can be distinguished:

Information Systems As An Example

Click here to view a video that explains the information system and its characteristics.

An information system comprises different elements, as described in the diagram above.

Data: Data sources include statistical information, sets of instructions or lists. This data can also come from different bases, for example, data-based, knowledge-based, and model-based.

Hardware: Physical devices and materials used.

Software: All sets of information processing mechanisms. The software ‘’tells’’ the hardware how to function.

People: Professional people, end-users, people who develop policies, programmes and software and people who analyze data.

Procedures: Procedures are to people what software is to hardware. Procedures indicate the way in which the people must function. User manuals are usually available, containing the procedures.

Communication: Communication between the individual and the computer and communication between the different employees with regards to information found on the computer.