Abstract

One of the mandatory agendas in Leadership Training in Indonesia is Diagnostic Reading, where participants are trained to be able to analyse problems in their own organizations using appropriate metholodology. Diagnostic Reading as a body of knowledge is originally derived from Organizational theories, thus it is imperative to comprehend the development of Organizational Theory from the beginning to present day. The development of modern Organizational Theory relies a lot on complexity theory and systems theory, where an organization is seen as a system which behaves adaptively in the face of rapid changes in its environment. This paper elaborates principles of System Theory and it relationship with complexity, characteristics of systems, and recent development of systems approach which are widely used in various disciplines, including in Diagnostic Reading agenda. The paper uses explanatory method to describe the use of systems approach in organizations, especially for the purpose of analyzing problems in organizations.

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