Types of System:
Based on the degree of independence the system can be categorized as follow:
a. Closed system
b. Semi closed system
c. Open system
a. Closed System:
Closed system is independent of its environment. The system is neither influenced by, nor influences, its environment. It does not take in from, or give to it. It does not exchange information, energy or material. In reality there are very few examples of a closed system. In the business world closed systems do not exist. Being a Muslim and believer of Almighty Allah, could be one example of closed system.
b. Semi-Closed Systems:
Semi-closed systems relate to its environment in a prescribed controlled and in well-defined way. A thermostat, circulatory system or heating system would be good examples of semi - closed system.
c. Open System:
Open systems are connected to, and interact with, the outside world and are distinguished in that they have inputs and outputs, thereof exchanging information, energy or material with the environment. All organization systems are open systems.
Depending on the system input and the output, the open systems can be further categorized as follows:
Deterministic Systems/mechanistic systems:
Deterministic systems /mechanistic systems are those where end results (outputs) can be predicted with certainty, provided that they are operating correctly and are under control. A system may be classified as deterministic if it is possible to predetermine the stages or states through which it will pass.
The workings of a motor car, a steam engine or a mechanical lift are reasonably easy to predict and control as long as they are operating efficiently. Unexpected modes of working may develop as a result of excessive wear, in which case the system becomes probabilistic rather than deterministic. Whether a system is regarded as falling into the deterministic or probabilistic category depends upon how closely the system can be examined.
All computer base information systems (CBIS) like financial accounting system, inventory control system, payroll system etc. may be described as deterministic, and they are consequently much easier to control than systems involving people, whose behavior may be unpredictable.
Probabilistic Systems:
Probabilistic systems (also called stochastic systems) are those whose state can be predicted only within certain limits, even when they are under control. Business and economic systems are usually in this category, because they are subjected to so many varying internal and external forces. Although!-some of the states in these systems may be predicted from previous states, they can be described only in terms of probable behavior. There is always some degree of error associated with the predictions.
For example, budgets or targets and sale are subject to a number of variables in the environment, including availability of stock, price of the product, market trends etc. In such instances, where the information is of a probabilistic nature, a range of possible outcomes and their associated probabilities will be given. A major consideration in the design of management information systems (MIS) is the utilization of probabilistic as well as deterministic information for decision-making purposes.
Cybernetic Systems:
Cybernetic systems (also called self-organizing or adaptive systems) react to stimuli in a learning pattern. They learn from their mistakes or experience so that they do not always react in the same way to a particular input. Most businesses are categorized as cybernetic systems so that the business can grow to meet the needs of a changing business environment.
A trade union may be viewed as a cybernetic system if it has been involved in an unsuccessful strike. It is likely to adopt different .tactics the next time it feels obliged to take action on behalf of its members.
Homeostatic Systems Or Dynamic Equilibrium:
Once developed, a system remains in control despite changes occurs within the environment or internally. A homeostatic system is one with controls which allow it to revert back to its original state when affected by external events. The human body is a homeostatic system. When an infection or disease is caught, the body will fight to revert back to its normal healthy state.
Examples of System:
| Examples of System |
| Types of System |
Example |
| Homeostatic |
Human body |
| Closed |
A closed economy of a country |
| Semi-closed |
A Circulatory system or heating system. |
| Open |
A business |
| Deterministic |
A computerized accounting system |
| Probabilistic |
A football playing system |
| Cybernetic |
Most businesses |
|
