Concept of System

A system is a collection of interrelated components or elements that work together in a co-ordinate fashion to achieve a common goal. These components can be organizations, people, machine, software, concepts and other systems.

A system can also be described as a whole or a recognizable unit (super system) with parts or sub-systems that work together to achieve a common objective.

A system can be viewed as a well-organized set of elements that operate together to accomplish a purpose. These elements are arranged, structured and interrelated in a manner that transforms input through processing. The word "system" implies wholeness, completeness and integration of parts to provide option performance of a set of components in a time frame. A system essentially a group of elements that function together to achieve common or set objectives.

We observe that a procedure is the most elemental activity of a system.. It specifies the detailed functions to be performed. A subsystem is a system component that is a system in its own right. In most cases, a system is characterized by four major features, name, input, processing, output and feedback.

Inputs those things that enter the system and can be from within the organization or from its external environment? Examples of input are student intake into a university, patients admitted into a hospital, or data input into the computer. Systems that receive inputs from the environment and sometimes return outputs to the environments are called Open Systems. This is opposed to Closed Systems, which have sealed boundaries and neither receives input not produce output i.e. It is independent of its environment.

Processing refers to the procedures required to convert or transform the raw input into a form that is more meaningful. For example, processing in the university may include teaching, practical, etc. While in computer, processing may include activating some commands, executing computations, and storing information

Output is the finished product resulting from all the system's activity? Examples are graduates from a university, cured people from a hospital and reports from a computerized system.

Feedback is the process by which all the outputs systems are measure against required standards. Any difference between the standards and the output prompts the modification of inputs of the system.

Subsystems and Systems Hierarchy

One significant quality of a system is that systems are connected together in the hierarchy of subsystems. A. subsystem is a component of a system that performs some basic functions needed by the overall system to enable it to attain its fundamental objectives.

Systems are composed of subsystems that are interrelated to one another by means of their inputs and outputs. This gives the system an internal structure. Each subsystem is itself is a system with objectives, inputs, outputs, and possibly controls and storage elements, and so can be further decomposed into its own subsystems. The process of decomposing a system into subsystems is called factoring; Factoring is an iterative process that comes to an end when the system has been broken down into parts small enough to be understood and evaluated.

A system can be broken down into subsystems, each of which can be broken down into new subsystem. This relationship is described as system hierarchy. The hierarchy of subsystems exists solely to provide functions required for achieving the system purpose. Subsystem goals must be subordinate to system goals, and performance of segments should be evaluated primarily on the subsystem contribution to the whole.

The accounting system is a complete information system with subsystems such as accounts payable, accounts receivable and general ledgers. These subsystems are described as subsidiary ledgers. The general ledger contains summary level data for every asset, liability, equity, revenue and expense account of the organization. A subsidiary ledger records all the detailed data for any general ledger account that has many individual sub-accounts. Subsidiary ledgers are commonly used for accounts receivable, inventory, fixed assts and accounts payable.

The systems approach also known as general system theory (GST) is a method or frame work, which help us to analyze and explore the operation and interaction, which exist in the system around us.