3. Introduction to a System

Question 1

“There is nothing better for a man to do than to eat and drink and enjoy himself in return for his labors.” Ecclesiastes 2:24

Answer 1

“There is nothing better for a man to do than to eat and drink and enjoy himself in return for his labors.” Ecclesiastes 2:24

Question 2

Chapter

Answer 2

A system is a network of interdependent components that work together to try to accomplish the aim of the system.

The components need not all be clearly defined and documented: people may merely do what needs to be done.

• Management of a system therefore requires knowledge of the interrelationships between all the components within the systen and of the people that work in it.

The aim proposed here for any organization is for everybody to gain over the long term [stakeholder theory].

It is important that the aim never be defined in terms of a specific activity or method. It must always relate to a better life for everyone.

Management’s job is thus clear - to achieve best results for everybody - everybody win.

• An additional responsibility of management is to be ready to change the boundary of the system to better serve the aim. Changes may require redefinition of components.

Management and leaders have still another job, namely, to govern their own future, not to be merely victims of circumstance.

[After describing Japanese company cooperation at a national level post-WWII] Would American companies dare to work together like this? Perhaps they could now, owing to the National Cooperative Research Act of 1984.

A system includes competitors.

• [Paraphrase: It’s better for an industry of competitors to expand the market as a whole rather than steal a competitor’s existing clientelle.]

An important job of management is to recognize and manage the interdependence between components.

• Resolution of conflicts, and removal of barriers to cooperation, are responsibilities of management.