Open versus Closed Systems
Open versus Closed Systems
The system which does not interrelate with the outside environment is called closed system. Some classical approaches are the view of that organizations based on closed systems. The assumption behind the view was if managers enhance the internal processes of the organization so it would succeed. However it is very clear that all organizations are open systems, they depends on inputs from the outside environment or world, like human resource, raw material and capital and provides output to the outside world which fulfill the markets’ needs regarding goods and services.
The above discussion demonstrates the open-system perspective. The systems of the organizations always require inputs which further transforms into outputs that would be received by external environment. The response on these outputs by from external environment becomes another input to system for next cycle. The life of the system will continue if the process repeats itself.
A set of interdependent parts that can processes inputs into outputs is called system. The typical inputs for business sector are known as resources like human, financial, physical resources etc. and most of the business uses several resources at a time. To manage the transformation of these resources into output of the business is the job of a manager. Good services and best quality products are the outputs of the business. Customers, suppliers, investors and competitors are some of the major components of the external environments.