Developing an organization system theory and implementing it to a new business is a position that put the system theory on a test. In response to a new business environment pressures, the firm will pursue a strategy of expanding its retail store whereabouts and leveraging on its buying power in order to acquire additional inventory. The consequences of this strategy will initiate a chain reaction of positive effects across the organization. The new business is intended to incorporate the new market design and common ways of doing business like the use of credit cards in making purchases and other transactions. This means that the system theory to be implemented in the organization will have to factor in some of this considerations. The effort will expose a number of short comings across the entire organization, specifically the lack of a satisfactory development system used in the preparation of store management capital. Change efforts on the existing system theories will initially be done in order to provide a more tailor based system theory to the new business. The changes will be focused on the business strategic goals, and market expansion which will be archived through the execution of a number of HRD processes and eventually improve the performance of the management processes.
This study offers a chance to evaluate the conceptual framework of a new firm based on a system theory. a proposed framework will portray change as a forceful but a better planned response to most of the external business influences. Organizations are known to be a complex systems made up of people and processes which are interacting and managed intentionally in a boundary in order to accomplish any set organizational objectives (Jacobs, 1988). a system perception of an organizations tends to accounts for all the interactions made between internal dynamic processes and external processes that occur within the environment (Bennis, Katz & Kahn, 1966).
Scholarship on new organizations are often is whispered to begin with the Kurt Lewin’s Field Theory and his resulting three-step model of change that is extremely practical in a new organization implementing the system theory. The Field theory indicates that a new business or organization tends to exist in a quasi-stationary equilibrium state or the homeostasis which is the stable but dynamic state. In order to maintain the needed equilibrium, new organizations result to constant small adjustments in order to adjust to the forces that affects the organization’s environment. Change is considered to be typically gradual as well as incremental, however it can happen rapidly as a response to the crisis situations (Burnes, 2004). A new organization trying to implement a system theory is also considered to be part of change. The credit card system is heavily reliant on the system theory implemented by any organization if it will be used in an effective manner. The Field Theory speculates that any significant changes in a new firm will require additional forces to encouraging positive effects and adaptability to the market. Decreased forces will maintain the status quo of the market, or even the elements of both (Cummings & Worley, 2005). Lewin’s model states that organizational implementation of a system theory takes place under the three steps:
1. Unfreezing: the old behaviors in the market must be first “unfreezed” for new behaviors and processes to take root and be easily implementable. Unfreezing is the exploration of the need for change or new product in the market to satisfy a need or want. It also involves studying the existence and magnitude of all driving forces that created the need, planning on the change, and developing commitment in the new organization for the benefit of the new product and the market. (Gershwin, 1994)
2. Movement: a new business behavior tend to shifts