Much of systems theory resembles the scientific method: you hypothesize, design a controlled experiment, collect data, and analyze data.

Objective

The purpose is to maintain the use of science in management to obtain "real time" results that can be used instantaneously to affect control in the organization (some have even accused systems theory of being "science in management" rather than a "science of management").

The goal is to maintain your attention on the whole at all costs.

1. Define the company as a system
2. Establish system objectives (performance criteria)
3. Identify wider systems (the environment)
4. Create formal subsystems (including a humanistic, psychosocial subsystem)
5. Integrate the subsystems with the whole system (if not the subsystems themselves, whatever interrelates them with other subsystems)

Known Systems Theories

Robert Blake & Jane Mouton (1964) developed a theory known as the "Managerial Grid". It is based on two variables: focus on task and focus on relationships. The grid includes five possible leadership styles based on concern for task or concern for people. Using a specially designed testing instrument, people can be assigned a numerical score depicting their concern for each variable. Numerical indications, such as 9,1 or 9,9 or 1,9 or 1,1 or 5,5 can then be plotted on the grid using horizontal and vertical axes. Although their work is also often classified as a Leadership Theory, it is typical of the specially designed analysis and instruments of the systems theorists.

Victor Vroom (1964) studied the motivational and decision-making processes and developed what has come to be known as expectancy theory, (also known as equity theory as developed by Homans and other social psychologists). this approach attempts to measure the degree of desire to perform a behavior rather than the need to perform a behavior. Motivation strength is calculated by multiplying the perceived value of the result of performing a behavior by the perceived probability that the result will materialize. The idea that workers are driven by complex internal processes of motivation is sometimes known as expectancy theory.

Fred Fiedler (1967) devised a questionnaire called the "Least Preferred Coworker (LPC) Scale" which could be used by management in various ways, but most importantly in this context to find out what integrates or interrelates the human subsystem. Fiedler believed in situational leadership, that some personality attributes contribute to effective leadership in some situations but not in others. The idea that there is no single best approach to leadership is sometimes known as contingency theory.