Strategic Leadership: Open & Closed Systems
System theory helps in determining how an organization interacts with its environment and on the basis of this responsiveness, it can be labeled as having an open or closed system. According to definition provided by the theory, open system can be defined as an organizational model which facilitates interaction between organization and its environment. Hence, an organization can take inputs from the environment and process them according to its purpose along with providing its output to the organization. In addition to that, feedback from environment can also alter organization’s processes and systems accordingly. On the other hand, closed organizational systems are self-sustaining models that are isolated from external environment and do not allow environmental variables to affect their processes. Only internal feedback mechanisms have a tendency of altering organizational systems. Hence, open systems tend to have flexible structure which allows them to grow in response to their external environment. Whereas, closed systems bear a constant character that shows slow gradual changes if necessary.
Literary analysis of open and closed systems helped in understanding how each organization responds to its external environment and how this interaction affects its processes and performance. Analyzing SAS in the light of these pre-established concepts lead to a conclusion that having open organizational systems is appropriate for its goals and objectives. ...Show more