System theory is a multidiscipline approach to management in an organization. By adopting a system theory, organization management unifies most of its components and relates them by creating a uniform goal. Each department should contribute to achieving it. Therefore, each department of an organization develops individual goals that directly or indirectly deliver the system goal. An essential component of the system theory is strategizing. Strategizing includes different activities that organization management takes as a way to meet their long term goals. Strategizing implies coming up with long term goals within the organization and developing strategies within the organization that help in achieving the long term goals ( Teece, 2019). These mean developing short term goals within each department that contribute toward achieving the central organization's strategic or long term goal. Therefore, an organization that prioritizes system theory uses strategic management to unite its system with a uniform goal to achieve its long term commitment.
Strategic management contributes to system theory by allowing the organization to plan the best way to unite its components to achieve a similar goal. Strategic management champions for the development of uniform goals as well as developing short strategies or goals that an organization works on to accomplish the primary goal. Take, for instance, a company such as Dell. Dell is one of the leading companies in the technology industry. It is also an example of a company that uses the system theory of management. Dell has one of the best marketing strategies. The company operates its system and strategies managements by creating long term goals. Take a case where the company needs to sell more than two million laptops. The 2 million laptops should be the strategic goal. However, it has to unify all systems to achieve its purpose at the end of the year. It calls for the company to develop short goals in each department, such as sales, marketing, production, distribution, and human resources. In each of these departments, they will develop a short strategic goal that all contribute towards achieving the 2 million mark the company needs. Therefore, it will coordinate the entire system to work together and also depends on each other to achieve the primary goal. In this manner, it shall have used strategic management and system theory to meet its long term obligations.
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References
Teece, D. J. (2019). A capability theory of the firm: economics and (strategic) management perspective. New Zealand Economic Papers , 53 (1), 1-43.
