SYSTEM DYNAMICS MODELS IN MANAGEMENT PROBLEMS SOLVING

The models represent the key methodological tool for management problems solving in System Dynamics (SD) as a functionalist systems methodology. Above all, it is about mathematical models, built according to appropriate feedback structures, i.e. specific elements and flows that form feedback loops. Since SD is based on the assumption that a system structure represents the behavioral key determinant, SD models provide an effective prediction of the future system behavior. The paper focuses on the modeling process in SD, as a complex, iterative process, consisting of the following phases: model conceptualization, formulation, testing and implementation. Although being extremely useful in solving numerous organizational managing problems, SD models have certain disadvantages as a consequence of their quantitative nature. Qualitative modeling and group model-building, as possible directions for further SD development, are appropriately important in SD models` deficiencies elimination.