General System Management and Its Importance
Discuss about the Journal of Creating Value for Theory & Organizational Structure.
This essay shows the significance of appropriate tool management in an organization. By using proper theories and tools, the organizations can deliver satisfying and expected outcomes. Different business organizations use different managerial tools that is based on the type of process of business. The aim of this essay is to define and describe system thinking used to classify different techniques and tools which are relevant to it.
This paper elaborates general system management, structure and culture of the organization, business values and form of business organizations. It also describes portfolio alignment, risk management approaches and engineering risks. Maturity of any business organization depends on its management structure and culture. It also describes the process of portfolio management process cycle.
General systems management are generally used to obtain measurable revenue structure from competitive market. It is different from traditional management system. To establish any small business on the basis of traditional hierarchal structure, business organization needs to use general systems theory (Johnston, n.d.). Top down approach is followed by the general management structure in which, the top-level management is the boss who has all the leading authority and other employees like managers and other subordinates are supposed to follow his instructions. It also provides owner of organization with several beneficial way to reorganize the company (Guide to the Systems Engineering Body of Knowledge (SEBoK), 2017). The business model components involve goals, matrix of subsystem, project orientation, permanence and transformation.
Several goals can be achieved, even resolved and implemented by the organization under general systems theory (Mel, Pels, & Polese, 2010). Each and ever department of the company set their own goals and together they provide desired outcome for the customers or consumers of the organization. However, they can also collaborate other departments in order to obtain certain goals.
With the help of this theory, vertical system approach and bottom up approach can be formed. in new formed structures each department will have e one owner and with the help of this process the interrelationship among these departments can be illustrated (Kerzner, 2013). According to this approach, every department of the organization which includes manufacturing, finance or marketing department etc. can act as a main or leading department. However, these departments can also exist according to the traditional hierarchy. If nay organization uses the general system theory then each department can act as an independent entity and they can collaborate or merge with other organization if it is required.
Goals of General Systems Theory in Business Organizations
Many studies and research has found that in any business organizations, projects are the main focal point (Kerzner, 2013). Each individual department operates or act effectively if several projects are being created. Business project of any organization is managed by the project managers by collecting various data and information from different sources.
General system theory provides important changes to the organization in order to obtain effective and efficient growth by analyzing feedback from the customers or consumers. According to the requirement of customers or consumers propriate change in management system of organization processes should be done which will help the company to provide efficient and effective power to apply the desired transformation in the organization in the organization (Guide to the Systems Engineering Body of Knowledge (SEBoK), 2017). If the structure of company does not follow hierarchical approach then, it changes according to the feedback obtained from the consumers.
System permanence i.e. stability which is important to obtain effective business success.
It is vital for the management authority to maintain culture and structure of any organization to obtain revenues and success from the competition marketplace. The hierarchy of the organization starts with the senior management authority and followed by middle and junior management and lower level includes other staffs and subordinates (Guide to the Systems Engineering Body of Knowledge (SEBoK), 2017). The main goal of the business organization is to fulfill the requirements of the customers by providing products and services. Structure of the organization takes several forms according to the type of business. The organizational structures can be influenced by several factors like size and task complexity, purpose, culture, employee performance and external environment. The quality of services, products and location of the organization assist management authority to choose suitable organizational structure.
Their specific organizational structure will help to assist company towards the goals and success and also provides the most suitable direction to the organization. The operations of any organization also depend upon its structure and culture. But for large organizations, organizational structures are more functional and productive (Kerzner, 2013). Matrix structure is used in the companies that are project based and it forms a team which involves specialists, Human Resources and marketing management authority.
Risk management can be defined as the prediction and evaluation of the financial risks along with the identification of a process to minimize or eliminate their impact. It is important factor that is required for the revenue and growth of the organization. In the starting phase of any project, project manager must recognize the probable risks that could affect project and overall organization.
Different Approaches of General System Theory
Moreover, the experts working for the project also focuses on the risk management approaches. The risk called function is divided into 2 components i.e., consequences and probability. The engineering risk management involves 5 main components that includes planning, identification, analysis of risk, development of strategies for management of risk and to monitor risk management process (Guide to the Systems Engineering Body of Knowledge (SEBoK), 2017). Risk management is a proactive approach and supports to decrease the rate of occurrence of adverse incidents.
In this process, project manager monitors every potential risk which can affect the business in a way of achievement. The plan for the risk management involves several procedures used for the implementation of risk plan of the project (Kerzner, 2013). This plan should be implemented in larger project management plan. To maintain the requirement or needs of any business strategy, project engineers are involved for planning proper risk management by supplying required evidence to every members of team of the project.
In this process, project engineer identifies every possible risk that might damage the business steadiness (Management Process, n.d.). Mostly the risks are related to schedule, production, management, cost, technology, feasibility and support. If financial manager of project fails to make proper feasibility then economical risk might occur which will affect the entire project.
After the identification of risk, the project manager examines various risks and arrange them rank wise according to their quality. This analysis of risk is a systematic process, that is used to determine the levels of risk for approved and identified risk (Systems Engineering Guide, 2010). It mostly involves risk matrix creation which could measure consequences and probability to determine engineering risks project. It also helps to make overall risk conversion.
According to the types of risk the project develops several strategies foot the risk management these strategies assists the organization to handle and manage the risks effectively and efficiently. There are four categories in the risk management strategies that are discussed below:
In this step the project manager does not make any new risk mitigation, instead of this, they will carry on the with their business with the existing risks.
Avoidance: Project managers analyses the factors that are responsible to increase the risk for the company and eliminate the risk factors from the project to avoid any further risks.
Controlling risk is generally known as risk mitigation. In this process the risks are reduced with the help of relevant strategies (Guide to the Systems Engineering Body of Knowledge (SEBoK), 2017). If any risk that cannot be easily mitigated is identified then those factors can be controlled to inhibit it from further progress.
Importance of Risk Management in the Business Organization
Transfer: in this phase to tackle or resist risks of the organization project manager transfers its risks to another party.
Monitoring and control:
In this step risks should be managed properly by monitoring strategies of risk mitigation (Kerzner, 2013). The risk control components consist of program metrics earned value and technical performance measurement.
It can be defined as the most popular and increasing management practice, adapted by business organizations (Peters, 2014). Road mapping should be maintained by the project manager in project alignment. In order to decrease the burden of work and to meet the consumer requirement, wok load is divided between the project members.
It is a tool which is very important for the development of business structure and culture. Every effective organization has suitable and suitable values. For the valuation of business its values are evaluated (Guide to the Systems Engineering Body of Knowledge (SEBoK), 2017). It forms standard set of value that are used to determine the worth of business. The value of business can be decided by investment values, market values and intrinsic values. To calculate the success of the project, project constraints like cost, scope and time are considered (Boswijk, 2017). The organization must develop their stakeholders value and financial stricter according to the hanging requirement of customers.
The project process cycle includes several steps which are: identification of need of business, evaluation of care of business, defining project, identifying vendor for development of project, selection and evaluation of contract management and vendors (Kerzner, 2013). Development of contract management timesheet is important and on the basis of this, assets management, risk optimization and performance measurement are obtained by project managers.
Process, data, people and technologies are important to determine the maturity of organization, compete service delivery is influenced by people. in order to determine the availability, accuracy and reliability, operational information is required (Fahrenkrog, Haeck, Abrams, & Whelbourn, 2003). Similarly, for decision making, implementation of proper process is needed and these components lead to the maturity of the organization.
Texas city refinery explosion had occurred killing and injuring many people. It was the third largest refinery in the US. Deepwater horizon oil spill is also known as BP oil disaster that was occurred in 2010 in the Gulf of Mexico was one of the largest oil spills (Pallardy, 2018). These were the huge industrial disaster causing too much loss. There were several factors like poor management and inadequacy regulatory system, technical problems that had increased the danger of disaster. Engineering risk management and organizational maturity are most appropriate to manage the risk factors and performance procedures ( National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, 2011). So, the head of technical departments and project managers needs to apply strategies and manage their project to perform effectively and gain advantages from the competitive market within the organization. There are several other ways to manage the situations like by using project management tools and techniques in the project management process. Organizations have capacity to manage several activities to manage development aspects according to their objectives.
Exploring the Project Management Cycle
Conclusion:
From this paper it is evident that the main objective and aim of any business organization is to gain profit and achieve success by fulling the needs and demands of the consumers. They use several tools and strategies in order to manage their organization so that they can design their project according to the changing needs of the consumers. There are several management levels in an organization from top level management to subordinates who has specific roles and responsibilities to fulfill the goal of the organization. Project manager plays very important role in an organization, who manages the project of the organization by analyzing data and information from several resources. Similarly, general systems management is used to obtain measurable revenue structure from competitive market. Engineering project management process is used that involves appropriate methodologies and application based on the needs and requirements of consumers. In this paper different tools and techniques are discussed that are related to the system thinking.
References
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