16 important Characteristics of a management System:

1. Every system is goal oriented. It provides a means to achieve a desired end.

2. Every system has interrelated parts. One part of the system cannot be changed other systems. Thus each part becomes inseparable and indispensable.

3. Every system operates logically; one action follows the other automatically.


4. Systems are basic to most activities. An activity is the result of many sub activities.

5. Every system operates under a plan.

6. Systems theory is a way of thinking about activities and related activities involved in the business operation.

7. Systems approach emphasizes coordination and achievement of individual and combined goals.


8. Systems and data processing are die primary tools by which management achieves successful operations in a keen competitive environment.

9. Every system is comprised of many sub-systems which are interacting with each other.

10. Every system is a part of a larger one. For example, an organization itself is a system but it is a part of a larger industrial system which in turn is a part of a social system.

11. It is complex and inter-related in such a manner that a change in one variable will effect a change in others.


12. Every system has a specific purpose to which all its parts and sub-systems contributes for achieving that purpose.

13. Each entity of the system receives information or energy from the other parts within the system and from the system’s environment.

14. Each entity processes this information or energy in its own way and sends its output to the rest of the system and to the external world.

15. A system has a tendency to remain in equilibrium by maintaining a balance among the various forces operating with and upon it.


16. A system cannot exist in isolation. It must get its input from some other system and its outputs become inputs to other systems.