Systems theory is used as a tool for understanding different
aspects of how a business functions. The administrators can use
this use in organizaing the various departments and its functions
so that they are all interconnected and one department does not
suffer because of other.
Systems mode is an effective method for everyday, practical
administrative decision making.
Applications to administration include model building,
hypothesis testing, practical everyday decision making, effective
evaluation, and improved communication.
Since the environment in which everyday business needs to
happen effectively for that reason administrators need to focus
upon having an open communication channel between management and he
subordinates so that effective decision making can take place.
An effective feedback loop needs to be established by them to
be able to provide feedback to each others' departments without any
bottlenecks.
Administrators need to make sure that all departments are
working together as whole by keeping a check on each function being
performed by different deparments. For example,quality checks being
done of the product is not the end,marketing is as important
leading to higher sales.
Effective meetings and brain storming sessions need to be
organized between various departments. Also the administrators need
to keep a check on the resources coming in as well as the
equipments being used and work of the employees need to be
regularly checked and maintained in inventories.