define business system discuss barrier subsystem of business also interaction between barrier subsystem of business.?
Answers
The business imports inputs i.e. raw-materials, machinery, technology, finances, information, manpower etc. from the environment.
Inputs are transformed or processed into output through functioning of business sub-systems of production, marketing, finance, personnel etc.
The output is exported to the environment and from the environment a feedback (or reaction or response) is obtained; which helps in correcting inputs or effecting modifications in the processing mechanism, during the next phase of business system functioning.
Some of the problems which arise in achieving co-ordination among sub-systems of the business system are described below.
(i) Conflicting Objectives:
The objectives of different sub-systems may clash with one another, which make the task of integration highly difficult. For example, production people may emphasize on standardised production for cost-minimisation; whereas marketing people may prefer variety in production to capture diverse markets.
ii) Specialisation of Management:
Functional departments in present-day-times are headed by functional specialists like Production Manager, Finance Manager Etc. As a matter of specialisation psychology, different experts have a tendency to over-concentrate on their own specialised areas of functioning; and belittle or downgrade the significance of other specialists. This tendency and psychology of specialists creates problems for management in integrating the functioning of various sub-systems.
(iii) Lack of Co-Operation:
Sometimes, there is observed lack of co-operation among people working in different departments or in the same department, for any reasons whatsoever. This lack of co-operation, which may be the outcome of poor human relations, is a serious obstacle in the task of achieving integration among various sub-systems.