System theory is made of variety disciplines such as science, art, psychology, sociology and economics which are used to study the organization. This theory sees a business as an independent system that exists and operates for a specific purpose, and gets influenced by both internal and external factors. This theory was developed by Ludwig von Bertalanffy. He observed that organizations are open systems that are influenced by both external and external forces. This influence poses a challenge to the organization since they are dynamic. Therefore, a business has to change and orient itself to tackle these challenges. The environments are not static; hence a business has to renew itself over and again for it to remain relevant.
A business is a system that is made of many functions and process. There are inputs (raw material) and outputs (goods and services) that are processed by use of machines and human labor. The functions of the system (business) are planned, coordinated, control, monitored and evaluated for them to work well. When there is a change in the environment either outside or inside a decision has to make on how to address the changes that are experience. The people in the system (business) have to be made aware of the changes in environments. The management should inform the employees on the ways to handle the changes/challenges through training. The system may be forced to change its culture so that to fit in the new environment.
A small new business is like a system since it has many functions under it which are coordinated to achieve the desired result. For a small business to be successful, the employees have to train irrespective of their experience. This is to make sure all the employees know their roles, duty, place and responsibilities in the business. The employees have to inform on the organization culture and how to conduct themselves. The employees have to be taught on how to use various machines and raw materials to prevent wastage of raw material or break down of machines. The employees who are dealing and interact with customers and suppliers have to be trained on public relations so that the business does not lose customers to its competitors and also get reasonable prices for raw materials from suppliers
When a business has no capacity both financially and experience to train its employees, it is bound to fail. Training of employees is paramount for any business to succeed and small business should never ignore this, because organization is a system with many processes which have to be coordinated by on culture and everyone has to fit in the system by knowing their position in the system
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