Module 2 discussion
Organizations as Systems
Many researchers believe that organizations are systems.
These scholars developed frameworks for understanding organizations in the open
systems theory. The two basic types of organization systems are closed and
open. Many (but not all) contemporary organizations are open systems that
interact with their environment. A closed system does not depend on its
environment and can function without the consumption of external resources. An
open system must interact with the environment to survive by consuming and
exporting resources to the environment. In an open and closed organization
system, the people are the human resources of the organization who have
specific skills and traits; the purpose of the organization is the mission,
vision, and goal for existing; the plan of the organization is the strategy,
competitive advantages, and objectives of the organization to innovate and
produce value; and the priorities of the organization are what drive the
organization to thrive or excel. Consider the following model illustrating the
four P’s to understanding organizations as systems:
An open organization system functions both internally and
externally. The external system has an impact on the internal system and vice
versa. For example, the actions of customers (externally) affect the organization
and the behavior of people (internally) at work. An example of an open system
organization is a college or university that transforms students into highly
skilled workers that become a part of their environment. A closed organization
system does not interact with its environment and as a result is disconnected
from the real world. Some examples of closed system organizations are the
regional armies of the People’s Republic of China and spiritual cults (e.g.,
Waco). With globalization, technological advancements, and unlimited
competition, organizations are more likely to become open systems and depend
more on their environments.
For this discussion, address the following questions:
In week one, name an organization you consider to be an open
system. Justify your answer.
In week two, name an organization that operates as a closed
system and comment on whether the structure of this organization is appropriate
or detrimental to the goals and purpose of that organization.
Remember the guidance from Module 1 with respect to depth
and breadth of your responses, and support your answers with references from
the background readings and research where appropriate.
