Course Content
Management Foundations
Management: Concept, Process, Theories, and Approaches, Management Roles and Skills
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Management Functions
Functions: Planning, Organizing, Staffing, Coordinating, and Controlling
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Managerial Economics Foundations
Managerial Economics: Concept and Importance
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National Income
National Income: Concept, Types, and Measurement
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Unit I : Evaluation
Unit I : Evaluation
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Unit I: Business Management and Managerial Economics

What is Bertalanffy’s System Theory?

Ludwig von Bertalanffy, a biologist, developed General System Theory (GST) in the 1940s–60s.
It is a conceptual framework that views systems as organized wholes made up of interrelated and interdependent parts.
Bertalanffy’s System Theory was developed in 1940s–1950s and formalized in 1968 with “General System Theory”


Core Idea:

Instead of studying parts of an organization or process in isolation, Bertalanffy argued we should understand how all parts interact and affect the whole system.


Key Concepts of System Theory:

  1. System:

    • A set of interrelated components working together toward a common goal.

    • Can be open (interacts with environment) or closed (isolated).

  2. Wholeness/Holism:

    • “The whole is greater than the sum of its parts.”

    • Changing one part affects the entire system.

  3. Inputs, Throughputs, Outputs:

    • Input: Resources (information, materials) entering the system.

    • Throughput (Process): Transformation of inputs.

    • Output: Resulting products, services, or information.

  4. Feedback Mechanism:

    • Feedback allows systems to self-regulate, learn, and adapt.

  5. Equifinality:

    • A system can reach the same end state through different paths or processes.

    • There is no single best way to achieve a goal.


Applications in Management:

  • Organizations are seen as open systems interacting with their environment.

  • Helps managers understand interdependencies within departments or processes.

  • Encourages cross-functional thinking, adaptability, and long-term planning.


✅ Final Summary:

Bertalanffy’s System Theory encourages a holistic, interconnected view of organizations, emphasizing that success depends on how well all parts function together and adapt to their environment.