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Biologist Ludwig von Bertalanffy first put forth the systems theory in the 1940s.

According to this notion, an organization's constituent elements are interrelated. A


system theory in business describes, for instance, how one department of a firm or
organization interacts with the department as a whole or even with the market or
industry as a whole. System theory significantly impacts business, even if it has its
roots in biology.

Systems theory may explain how computers operate, just like they can in business.
You could argue that the computer is made up of different systems, each interacting
and dependent upon the others. These computer components are all interconnected
with one another and their environment, which in this case is the computer, just like in
a corporate structure. Input/output devices could not work if the CPU isn't operating
correctly. The other computer components might not work if the memory unit
malfunctions.

In a system view of an organization, all the component elements must work together
harmoniously because they are all interdependent, whether the system is a human
organ, a corporation, or even a computer. There is no actual independence in a
realistic system view of an organization; all constituent elements are interdependent
with their surroundings.

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