Open Systems Concept in Business Organizations

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Synopsis ............................................... 1

Introduction ........................................... 1

Systems: An Explanation and Definitions ................ 2

Advantages of the Open System Concept................... 5

Conclusion ............................................. 9

References ............................................. 10

An open system is one which must interact with its environment to survive. It both consumes resources and exports resources to the environment. It must continually change and adapt to the environment. Business organizations are open systems. There are common characteristics of open systems. There are nine of these common characteristicsimportation of energy, through-put, output, systems as cycles of events, negative entropy, information input and negative feedback, stability and flexibility, differentiation, and equifinanity. There are advantages to the business organization in each of these characteristics.

Business organizations, to survive, must interact effectively with their external environments. The open system concept provides the flexibility necessary for organizations to effectively interact.

INTRODUCTION

The purpose of this research is to examine the importance of the use of the open system concept in business organizations. Initially, the s

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the production of goods or services. The boundary spanning subsystem deals directly with entities in the external environment. Sales departments, and purchasing departments are elements of the boundary spanning subsystem. The maintenance subsystem "is responsible for the smooth operation and upkeep of the organization" (Daft, 1986, p. 11). The maintenance subsystems includes organizational units responsible for human resources management, food service activities, repair and maintenance operations, security, and other activities required to keep the organization functioning. The adaptation subsystem "scans the environment for problems, opportunities, and technological developments" (Daft, 1986, p. 11). This subsystem is responsible for creating innovations; thus, the research and development function is a part of the adaptation subsystem. The marketing research function is also included in the adaptation system. Smooth and effective organizational change is the objective of the adaptation subsystem. The management subsystem provides "direction, strategy, goals, and policies for the entire organization" (Daft, 1986, p. 12). The management subsystem directs all of the other subsystems within the organizati

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