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0 SYSTEM THEORY DEFINITION

Methodologically, it is important to set apart a theoretical system from an
empirical system. The former is a complex of concepts, suppositions, and propositions
having both logical integration and empirical reference, while the later is a set of
phenomena in the observable world that is amenable to description and analysis by
means of a theoretical system.
The concept of system serves to identify those manifestations of natural
phenomena and process that satisfy certain general conditions. In the broadest
conception, the term connotes a complex of interacting components together with the
relationships among them that permit the identification of a boundary-maintaining
entity or process. As reviewed in the previous section of this chapter on the origins and
foundation of the systems theory, more specific denotations have been offered since the
early formulations of a general system theory in the first half of the 20th century. For
the purposes of this chapter, we provide a definition based on Russell Ackoff's
suggestion that a system is a set of two or more interrelated elements with the following
properties

1.0.1 THE SYSTEMS APPROACH

As mentioned earlier, the definition of certain varieties of entities and events
in the world as 'system' made for the mid-century emergence of a general theory of
systems. Prior to that time a specialized way of seeing things held almost exclusive
sway in modern science. According to the specialized perspective, the world and all
that it contains is an assembly of small and distinct parts, fit largely for analysis and
study in isolation. This fragmented way of approaching empirical phenomena is
predicated on the belief that it is better to have specific and intimate knowledge of
smaller and more well-defined items than general and abstract knowledge of larger
and less well-defined ones. As a result, instead of focusing on the interacting and
integrated ensemble the system attention is drawn to the parts regardless of
their position within the ensemble.
By contrast, the systems approach attempts to view the world in terms of
irreducibly integrated systems. It focuses attention on the whole, as well as on the
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complex interrelationships among its constituent parts. This way of seeing is not an
alternative, but a complement, to the specialized way. It is more all-embracing and
comprehensive, incorporating the specialized perspective as one aspect of a general
conception. The specialized approach has created an orientation toward decision
making that is currently in vogue in many parts of the world. It is based on
individualism, competition, training for a specific profession, and indoctrination into a
specific culture. On the other hand, the general systems approach encourages the
development of a global, more unitary consciousness, team work, collaboration,
learning for life, and exposure to the universal storehouse of accumulated knowledge
and wisdom.
Systems theory has served us well and will continue to provide managers and
students of organisations with metaphors, terminology and explanations about how
organisations function. The purpose of this paper is to identify the dominating aspects
of systems theory as it is applied to work organisations and then explore some
emerging theories that provide new and somewhat competing explanations about the
nature of organisations. While these emerging explanations are referred to as
complexity and chaos theories, they can be viewed in the context of evolutionary
system theories.

2.0 CHARACTERISTICS OF SYSTEM THEORY

The major purpose of systems theory is to develop unifying principles by the
integration of various sciences, natural and social. With focus on the structures and
functions of the system, the system can be viewed from different perspectives:
Open system: a system keeps evolving and its properties keep emerging
through its interaction with environment ,Holistic view: systems theory focuses on the
arrangement of and relations between the parts that connect them into a whole. The
mutual interaction of the parts makes the whole bigger than the parts
themselves.Goal-directedness: systems are goal oriented and engage in feedback with
the environment in order to meet the goals. Also, every part of the system is
interdependent with each other working together toward the goals.Self-organizing:
productive dynamic systems are self-organizing. It implies the adaptive ability of the
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systems to the changes in the environment. Using a metaphor of social interaction,

Pask (1975, 1984) described the self-organizing process as "a conversation between
two or more participants, whose purpose is to arrive at "an agreement over an
understanding."

3.0 THE ADVANTAGES SYSTEM THEORY

3.0.1 Environmental Considerations

Open systems theory stipulates that the functions of a system must coincide
with the environmental conditions. For instance, a modern computer software
company benefits from open systems theory because it takes into account modern
cultural changes and needs, allowing the software company to produce marketable
products that influence and meet those specific needs. Additionally, this includes a
level of social awareness, dictating that customers will choose to do business with a
company that observes certain safety or environmental protocols more often than a
company that does not meet those expectations. The advantage is a corporate design
that is more socially conscious and market focused.
3.0.2 Supply Understanding
Systems require an understanding of supply functions in order to deliver a
quality result from the process. Open systems theory suggests that the supply
functions are inherently more important than previously accepted theories understood.
As an example, each school grade for a student relied upon knowledge from previous
school grades. As a result, teachers and parents understand this reliance and see
previous education as the supply line for a child's current level of understanding.
Teachers and parents are motivated by their desire for the child to succeed and can
exert pressure on previous grade levels to include important information or require
additional time spent on a particular subject. The advantage is an increased universal
model for collaborative systems, which brings systems together around mutually
beneficial interests.

4.0 FOUR MAIN MANAGEMENT FUNCTIONS

4.0.1 Planning
The first component of managing is planning. A manager must determine what
the organizations goals are and how to achieve those goals. Much of this information
will come directly from the vision and mission statement for the company. Setting
objectives for the goal and following up on the execution of the plan are two critical
components of the planning function. For example, a manager of a new local
restaurant will need to have a marketing plan, a hiring plan and a sales plan

4.0.2 Organizing
Managers are responsible for organization of the company and this includes
organizing people and resources. Knowing how many employees are needed for
particular shifts can be critical to the success of a company. If those employees do not
have the necessary resources to complete their jobs, organization has not occurred.
Without an organized workplace, employees will see a manager as unprepared and
may lose respect for that particular managers supervisory techniques.

4.0.3 Leading
Managing and leading are not the same activity. A manager manages
employees; this person makes sure that tasks are completed on time and policies are
followed. Employees typically follow managers because he or she is the supervisor
and in-charge of employees. Employees see a leader as someone that motivates them
and guides them to help meet the firms goals. In an ideal situation, the manager also
serves as the leader. Managers who want to lead effectively need to discover what
motivates their employees and inspire them to reach the company objectives.

4.0.4 Controlling
The controlling function involves monitoring the firms performance to make
sure goals are being met. Managers need to pay attention to costs versus performance
of the organization. For example, if the company has a goal of increasing sales by 5%
over the next two months, the manager may check the progress toward the goal at the
end of month one. An effective manager will share this information with his or her
employees. This builds trust and a feeling of involvement for the employees.
Being a manager involves many different tasks. Planning, organizing, leading
and controlling are four of the main functions that must be considered in any
management position. Management is a balancing act of many different components
and a good manager will be able to maintain the balance and keep employees
motivated.

5.0 ANALYSIS SYSTEM THEORY

Systems theory is more of a problem solution which is used to solve problems
that occur in organizations. This problem-solving process also depends on an
understanding of the systems of the organization itself and the problem may occur due
to environmental factors, external factors, internal factors, micro and macro factors.
There are two forms of interaction that the open systems environment and
closed system. Open system is the organization must interact with the external
environment to continue to operate. Open systems refer to systems that interact with
other systems or the outside environment, whereas closed systems refer to systems
having relatively little interaction with other systems or the outside environment. For
example, living organisms are considered open systems because they take in
substances from their environment such as food and air and return other substances to
their environment. Humans, for example, inhale oxygen out of the environment and
exhale carbon dioxide into the environment. Some organizations consume raw
materials in the production of products and emit finished goods and pollution as a
result .an open type in which he could communicate with outsiders. Furthermore, the
open-system approach serves as a model of business activity; that is, business as a
process of transforming inputs to outputs while realizing that inputs are taken from
the external environment and outputs are placed into this same environment.
Companies use inputs such as labor, funds, equipment, and materials to produce
goods or to provide services and they design their subsystems to attain these goals.
These subsystems are thus analogous to cells in the body, the organization itself is
analogous to the body, and external market and regulatory conditions are analogous to
environmental factors such as the quality of housing, drinking water, air and
availability of nourishment.
The closed system is a system where an organization is never interacts with
another company. a closed system in that it is a relatively self-contained, selfmaintaining unit that has little interacts or exchange with its environment. This closed
system allows managers and organizational theorists to analyze problems by
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examining the internal structure of a business with little consideration of the external
environment. Open systems with specialized and interdependent subsystems and
processes of communication, feedback, and management linking the subsystems
THE BASIC ELEMENTS OF A SYSTEM

INPUT

PROCESS

OUTPUT

FEEDBACK

In this organizational system, if you want to create a good process management

needs to have input. Then have the next transformation and output, and then the system were
running smoothly. Input the transformation process as they plan, organize, motivated and
controlled to meet the goals of the organization in the future. Output refers to the product has
or services designed to improve the quality of life or productivity of our customers. This
feedback is feedback from customers who use the products of the company.
Overall framework of the system is often used in any department or program of an
organization that seeks to encourage managers to view the organization from a broader
perspective.
For example, Farhan is a manager in a company; he must choose whether to use an
open system or a closed system. If he wants to use an open system, he should know who to
external factors. In addition, he must go through three phases in the communication. Such as
input, output and feedback. Customers are responding to the organization and if everything is
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there, Farhan also must use the four management functions such as planning, organization,
leading and controlling

6.0 COMPANY BACKGROUND

Malaysian Resources Corporation Berhad (MRCB) is a leading urban
property, infrastructure and environmental regeneration specialist in Malaysia.
Established in 1968, it became a public listed company in 1969 and was listed on
Bursa Malaysia (Malaysias Stock Exchange) in 1971. The Group is a multidisciplinary specialist offering integrated solutions in urban planning; engineering;
urban development; environmental engineering and regeneration; and energy
infrastructure development. The Groups four core divisions are Property;
Engineering and Construction; Infrastructure, Concession and Environment; and
Building Services.
7.0 PLANNING
MRCBs progress in its overall business performance was matched by positive
developments in its sustainability agenda. In 2011, their businesses continued to
develop roadmaps and action plans in an effort to achieve their strategic sustainability
targets. These plans consider the technology, investment and operational decisions
they will need to meet their longer-term targets. With plans in place, they are prepared
to achieve our goals. This is one way to ensure that sustainability is a shared value
throughout the Company. They made good progress on their sustainability agenda in
2011, with continuous support from their stakeholders. They strategy is unchanged.
They core focus is on delivering shareholder value from significant structural
opportunities and in building our capability in support services. They are now well
into the sustainable and disciplined growth.

7.1 COMPANY VISON AND MISSION

7.1.1 VISION
They vision is to be a leading Malaysian organisation, recognised for the
delivery of world-class services in each of their core businesses, with a corporate
presence in strategically selected countries and markets. In doing so, they will strive
to be an organisation differentiated globally for its dedication to the delivery of the
critical resources for growth in the interest of their country, employees, stakeholders,
and the various communities within the countries which we operate.
7.1.2 MISSION
In achieving their Mission, they are firmly committed to the following:
Supporting Malaysias economic growth and its pursuit of developed nation status by
developing and delivering critical resources for the present and future knowledge and
IT driven economies.
Building and sustaining a leadership position in the delivery of excellent services in
each of their core businesses through the creative efforts and dedication of their
skilled employees.
Enhancing the quality of life of the communities within which they operate through
projects and activities that are socially, culturally and environmentally responsible.
Creating shareholder value not only through the development of viable business
strategies with partners and investors, but upholding the principles of good corporate
governance, integrity and honesty.
Nurturing a corporate culture that places an emphasis on learning, knowledge sharing,
creativity and speed of delivery in its pursuit of excellence, through effective training
and career development programmes; underscoring the value they place in their
employees as enablers in achieving Vision and fulfilling Mission.
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7.2 COMPANY OBJECTIVE

Company objectives in MRCB are integrity. The integrity MRCB is fair, honest and
accountable. In the company, every employees will be applied with passion. The meaning
passion in MRCB is delivered from the heart. MRCB also implement teamwork in the
company. Teamwork in MRCB means work as one. Lastly is innovation. The meaning
innovation in MRCB is continuous improvement.

8.0 ORGANIZATION
8.0.1 COMPANY CULTURE
MRCB, they are committed to having a workplace that values
differences and they take all employees concerns to heart. They believe in
helping employees achieve their best potential and instill the highest standards
of professionalism. Their employees are they assets who are all ambassadors
of them brand.
They offer one of the most sophisticated and vibrant working environments in
Malaysia. Employees will be trained according to best practices and top
quality management systems, while being offered fair corporate employee
packages and great incentive programmes.
MRCB staff are professionals who conduct themselves with honesty, integrity
and a sense of responsibility, and they go to great lengths to achieve this
quality. It is their corporate policy to maintain high level of commitment,
whilst enhancing their staffs skills and passion to excel further.
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Staffs receive a defined benefits plan and additional benefits including the
Employees Share Option Scheme (ESOS), a separate pension plan, health and
accident insurances, maternity/paternity leave and medical care for families of
employees. Their long-term professional growth and career progression is
monitored closely by our Human Resource department.
8.0.1 TEAMWORK
The meaning of teamwork is the process of working collaboratively with a
group of people in order to achieve a goal. Teamwork is often a crucial part of a
business, as it is often necessary for colleagues to work well together, trying their best
in any circumstance. Teamwork means that people will try to cooperate, using their
individual skills and providing constructive feedback, despite any personal conflict
between individuals.
For example, Teambuilding Programmes in MRCB. Since May 2007, more
than 1000 employees comprising upper and middle management, as well as executive
and non-executive groups, have undergone fun and effective teambuilding sessions at
Trolak Country Resort, Perak. These teambuilding programmes are designed to
develop and nurture interpersonal skills and technical competence for both the
management and supporting staff. At the same time, it is the perfect platform to foster
camaraderie amongst staff.
.
8.0.2 INNOVATIVE
A meaning of innovative is the process of translating an idea or invention into
a good or service that creates value or for which customers will pay. Innovation is
synonymous with risk-taking and organizations that create revolutionary products or
technologies take on the greatest risk because they create new markets. Imitators take
less risk because they will start with an innovator's product and take a more effective
approach.
MRCB was to restore and preserve the physical and natural environment of
this coastal beach in Pahang, using an innovative system called Pressure Equalisation
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Module (PEM). Our efforts have gone a long way towards maintaining the states
reputation as a favoured tourism hotspot for local and foreign travelers.

They conducted dredging works at the rivers mouth to eliminate the

formation of sand banks. This ensures a safe and smooth passage for fishing boats,
especially during the monsoon season. They also participated in the cleaning-up and
rehabilitation of the river by installing breakwaters and rubbish traps to control the
rivers flow and reduce water pollution.
They organised business motivation and communication workshops to help
participants identify a potential business activity. Next, they connect them with the
relevant governmental agencies for assistance, including funding, development and
marketing. To achieve these, MRCB works in tandem with the Ministry of Agriculture
and the Fisheries Department, among others.

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9.0 ORGANIZATION CHART

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10.0 LEADERSHIP
The Chief Executive Officer is responsible to the Board for the day-to-day
management of the Company. The Board gives direction and exercises judgement in
setting the Companys objectives and overseeing their implementation. The Chief
Executive Officer must to developing the strategic direction of the Group. Ensure that
the Company and/or the Groups business is properly and efficiently managed by
ensuring that the executive team implements the policies and strategies adopted by the
Board and its Committees. Ensure that the objectives and standards of performance
are understood by the Management and employees. Ensure that the operational
planning and control systems are in place monitoring performance results against
plans and taking remedial action, where necessary
10.1 DECISION MAKING
Decision making play important roles as they determine both organizational and
managerial activities. A decision can be defined as a course of action purposely
chosen from a set of alternatives to achieve organizational or managerial objectives or
goals

10.2 COMMUNICATION
MRCB strives to achieve the highest levels of employee satisfaction by
providing a detailed career development programme for its employees. Due to the
nature of its business, health and safety at work is never compromised. Two-way
communications are encouraged within the Company to understand employees
expectations and help both parties act as one cohesive organisation for the best
interests of all.
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10.3 MOTIVATION
MRCB place a greater emphasis on all material issues including social and
environmental impacts arising from their operations and assessing their importance to
stakeholders.
They strive to build a better tomorrow by continuously enhancing the relationships
with their stakeholders, particularly they local communities, customers, investors,
employees and suppliers
They are committed to incorporating all the 10 UNGC principles on human rights,
labour rights, environmental sustainability and anti-corruption into our business
operations and strategies.
They continue to provide excellent reporting disclosure in accordance with the Global
Reporting Initiative (GRI-G3) framework for Sustainability Reporting. The
independent assessment by GRI in Amsterdam ensures MRCB has disclosed all
required core indicators under GRI-G3 which measures disclosure and transparent
business practices. They understand the needs of these people and will do out level
best to support charitable activities for the benefit of the needy.
They have also taken an active stance in ensuring that everything their build and/or do
is environmentally friendly. Their green agenda is for the long term and will continue
to be a crucial part of our daily operations. Beyond that, they believe in nurturing the
future generations and caring for the less fortunate in their Corporate Social
Responsibilities (CSR) initiatives.

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11.0 CONTROLLING
Controlling can be defined as the process of monitoring activities to ensure that they
are accomplished as planned. Among the successful projects accomplished as planned
by MRCB.
Teluk Tekek-Pulau Tioman Rehabilitation Project
The focus of this project is the environment rehabilitation and conservation at Teluk
Tekek and Pulau Tioman. Erosion is a major problem at both sites, with river quality
compromised, causing serious repercussions to local activities and livelihoods.
Their efforts are concentrated on helping affected local communities. Activities that
were carried out include the rebuilding of damaged fishermens houses along the
beach and boat repairs. They also rehabilitated the badly polluted river by adding
breakwaters and rubbish traps to prevent pollution and waste from flowing into the
South China Sea. They also clean and rehabilitated the beach front at Teluk Tekek and
created passageway for small boats etc.
Teluk Chempedak Rehabilitation Project
This environment rehabilitation mission began in year 2004 and it was the first of its
kind in Malaysia and the Asian region. MRCB was to restore and preserve the
physical and natural environment of this coastal beach in Pahang, using an innovative
system called Pressure Equalisation Module (PEM). Their efforts have gone a long
way towards maintaining the states reputation as a favoured tourism hotspot for local
and foreign travelers. The project was completed in 2005.
Kuala Sungai Pahang Estuary Conservation Project

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Their conducted dredging works at the rivers mouth to eliminate the formation of
sand banks. This ensures a safe and smooth passage for fishing boats, especially
during the monsoon season. Their also participated in the cleaning-up and
rehabilitation of the river by installing breakwaters and rubbish traps to control the
rivers flow and reduce water pollution. The project was completed in 2011.

Social Business Workshop at Kuala Pahang

This endeavour was aimed at helping the local community find alternative sources of
income and ultimately, eradicate poverty. They organised business motivation and
communication workshops to help participants identify a potential business activity.
Next, they connect them with the relevant governmental agencies for assistance,
including funding, development and marketing. To achieve these, MRCB works in
tandem with the Ministry of Agriculture and the Fisheries Department, among others.

CONCLUSION
In conclusion, Systems Theory is an abstract philosophical framework that
nonetheless entails a highly empirical and investigative form of management science.
Systems Theory suggests an evolutionary explanation for the dominance of management in
contemporary Western societies. It also clarifies the role of complex organisations in modern
society; and predicts that the complexity of organisations, and therefore the role of
management, will probably continue to increase at least for so long as the efficiencyenhancing potential of complexity can continue to outweigh its inevitably increased
transaction costs.

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