Open Systems Theory and Organizational Success
Open Systems Theory and Organizational Success
Open Systems Theory and Organizational Success
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OPEN SYSTEMS THEORY AND ORGANIZATIONAL SUCCESS 2
An organization, in the most basic sense, is a coalition of individuals who work together
to achieve common goals and objectives. Organizations implement various designs that define
how the company is setup and how it operates. For instance, the open system setup is a modern
approach of setting up an organization such that the focus of its operations mainly involves its
relationship with the external environment (Scott & Davis, 2015). The external environment is
defined by: economic, cultural, ecological, and political factors. More specifically, an open
system is defined by: self-maintenance through utilization of resources in the environment, lack
of clear boundaries, and dynamic and constant interacting subsystems, among other
characteristics (Scott & Davis, 2015). An open system is more likely to result in the success of
an organization because of its focus on efficiency of processes and outcomes but it is not as
commonly adopted.
The open system theory is not commonly adopted in most organizations because most
companies have held on to the traditional hierarchy model. The top-down management model is
not suitable for the most organizations in the fast-paced evolving world. The shortcoming of the
traditional hierarchy organizational setup is usually the focus on the structure rather than the
processes which influence the outcomes. Additionally, the subsystems design of the open system
exists such that the failure of one part does not affect the entire organization. However, in the
traditional hierarchy system the demise of one department usually translates to serious
ramifications for the entire company (Scott & Davis, 2015). On the other hand, despite the
inefficiencies of a top-down hierarchy, most companies are able to achieve short-term success in
terms of profit.
OPEN SYSTEMS THEORY AND ORGANIZATIONAL SUCCESS 3
The best option for modern companies should be an open system setup. However, most
companies rely on the familiar traditional hierarchy to run their organization so long as profits
are achieved. An open system setup is the best long-term option because it is reliant on operating
as a unit and implementing efficient processes which translate to better outcomes such as
References
Scott, W.R. & Davis, G.F. (2015). Organizations, Rational, natural and open systems.