Systems theory

Matthew M. C. Allen

Chapter 6 in Theories and Concepts in Work and Employment Relations, 2025, pp 59-67 from Edward Elgar Publishing

Abstract: This chapter reviews the diversity and evolution of systems theory as applied to organisational and human resource management (HRM) studies, contrasting it with mechanistic approaches common in operations management. Three core and interrelated principles typically underpin different varieties of systems theory – contextuality, a holistic perspective, and environmental interaction and interdependency. Systems theory eschews the assumptions that (1) causes act independently from one another, (2) any social action takes place independently from other activities and (3) outcomes have simplistic mono-causal explanations. These principles mean that systems can be defined at various levels of analysis, from national and international systems on work organisation and the division of labour to the activities of a small team that forms part of a wider organisational system. Systems-theory thinking informs national-level systems, such as national business systems, and firm-level systems, such as high-performance workplace systems. Recent applications of systems theory have built on these insights by incorporating fuzzy-set qualitative comparative analysis. However, systems theory, potentially, downplays the importance of power dynamics, is unclear about where the boundaries of the system are, and neglects the role of agency and the ability of individuals to change systems. Future research could address these critiques by examining the role of power, considering the nested nature of different systems at the regional, national or international level, and assessing the interactions between actors and systems. Overall, systems theory remains a valuable tool for analysing and explaining various socio-economic outcomes, including the levels and types of employment within firms and national economies.

Keywords: Systems theory; National business systems; High-performance workplace systems; Qualitative comparative analysis; Configurational analysis; John Dunlop (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035316199
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