Synergy - Working together, the parts can produce something greater than those same parts could produce on their own.Entropy - The tendency for a system to run down and die (a thing to be avoided in business).Systems Theory encourages you to realize that your business is a system and is governed by the same laws and behaviors that affect every other biological organization. In actual fact, Systems Theory is more a perspective than a fully formed practice. When applied to business, experts shorten “general systems theory” to just Systems Theory. ![]() Because of this interaction, the system as a whole can evolve (develop new properties) and self-regulate (correct itself). The premise of general systems theory is that a system is composed of interacting elements that are affected by their environment. That’s because Ludwig von Bertalanffy (1901-1972) - a biologist at the time - founded general systems theory (GST) in an attempt to refute reductionism and revive the unity of science. 11 Essential Management Theories 1) Systems TheoryĪt its creation, Systems Theory (or The Systems Approach) had nothing to with business management and everything to do with biology. Find one you like, do a bit more research, and then incorporate it into your business. In this article, we’ll give you a brief overview of the management theories every manager should know. That’s why these management theories are so important: they give you concrete ways to inspire greatness in your team. ![]() But that success depends, in large part, on the way you lead your employees. ![]() ![]() Why is that important? Shouldn’t you concentrate on running your business instead of reading up on old ideas? Yes, you should focus on making your business a success. But pretty much all of them are based - in one form or another - on one of the 11 management theories on this list. There are many management theories floating around in the business world.
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