Understanding Systems and Organizational Structures

Understanding Systems

A system is a set of interrelated elements or parts that possess specific properties. A subsystem consists of parts that comprise the whole. Every system is defined by its context, which is the set of external objects surrounding it.

Defining Organizations

Organizations are human groups deliberately formed to achieve stated goals, where members are active and perform functions using specific resources.

Elements Composing an Organization

• People: Individual members.
• Intentionality: Purposeful action.
• Objectives: Proposed goals.
• Activities: Functions to be fulfilled.
• Resources: Assets utilized.
• Rules: Governing guidelines.
• Context: The environment.

Classification of Organizations

• Structure: Formal or informal.
• Object: Public or private.
• Relationship with Environment: Open or closed.
• Purpose: For-profit or non-profit.
• Command Line: Vertical or horizontal.
• Duration: Permanent or transient.
• Regulations: Legal or illegal.

Civil and Commercial Societies

These are assemblies of two or more people formed to achieve specific purposes.

Commercial Societies

Contributions are applied to the production or exchange of goods and services, sharing benefits and bearing losses. Types include: collective, partnership, capital and industry, SRL, or SA.

Civil Societies

A union of two or more persons with a view to the common good. Results are distributed among members or applied to achieve their finality. Examples include: mutuals, clubs, and unions.

Administrative Systems

• Planning Process: Formulates objectives, promotes strategies, tactics, and policies, designs programs, develops budgets, and establishes procedures, standards, and rules.
• Organizational Process: Defines tasks, groups charges, determines responsibility and lines of authority, and compartmentalizes through the division of labor.
• Recruitment Process (Human Resources): Selection, recruitment, training, development, allocation of pay, and entitlement to social benefits.
• Management Processes: Motivation, ambience, leadership, communication, and coordination.
• Process Control: Setting standards, measuring performance, and correcting deviations.