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39 views

CH 4 Ot

Uploaded by

kenaobsa10
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 16

CHAPTER FOUR

Open Systems Design Elements


CONTENTS OF THECHAPTER

4.1. The external environment.


4.2. Inter-organizational Relationships.
4.3. Organization size and life cycle and design/structure.
4.4. Comparative management

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What Is an Open System?

Any organization can be described as a “system.”


A system is a group of components (or parts) that interact with each other and
are dependent on each other to serve a common goal.
Organizations and other social systems can be “closed” or “open” systems.
Closed systems have boundaries that cannot be penetrated by new information
or ideas.
Open systems have permeable boundaries (or boundaries which allow things to
pass through them)
Open systems interact with their environments and constantly let in new
information and ideas so that they can continue to grow.

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Cont’d……………..

An open system is a system that regularly exchanges feedback with its


external environment.
Open systems are systems, of course, so inputs, processes, outputs,
goals, assessment and evaluation, and learning are all important.
Aspects that are critically important to open systems include the
boundaries, external environment and equifinality.
Healthy open systems continuously exchange feedback with their
environments, analyze that feedback, adjust internal systems as needed
to achieve the system’s goals, and then transmit necessary information
back out to the environment.
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System components/elements

1. Boundaries
2. External Environment
3. Outcomes
4. Equifinality

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1. BOUNDRIES

All systems have boundaries, although the boundaries can be difficult to


identify because systems can be very dynamic.
Open systems have porous boundaries through which useful feedback
can readily be exchanged and understood.
Closed systems, unlike open systems, have hard boundaries through
which little information is exchanged.
Organizations that have closed boundaries often are unhealthy.
Examples include bureaucracies, monopolies and stagnating systems.

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2. EXTERNAL ENVIRONMENT

The external environment includes a wide variety of needs and influences that
can affect the organization, but which the organization cannot directly control.
Influences can be political, economic, ecological, societal and technological in
nature.
A highly effective organization is regularly exchanging feedback with its
external environment – it is an open system.
Healthy organizations regularly try to understand their environments through
use of environmental scanning, market research and evaluations.
These organizations often try to influence their external environment, as well,
for example, through use of public relations, advertising and promotions,
lobbying and advocacy, and educating industry and local leaders.
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3. OUTCOMES (RESULTS AMONG CUSTOMERS

Outcomes are critically important to the success of an organization. Outcomes


are in regard to the changes, or benefits, that customers accomplish as a result
of using a particular product or service.
Outcomes are usually specified in terms of changed:
1. Knowledge (usually short-term outcomes).
2. Behaviors, notably those that comprise useful skills
(often intermediate outcomes).
3. Attitudes, values and conditions, such as increased security, stability or pride
(usually long-term outcomes).
• Notice the difference between outcomes (measures of changes in customers)
and outputs (measure of activities in an organization).

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4. EQUIFINALITY(More Than One Way to Accomplish the Same Result)

 Equifinality means that the same or similar results can be achieved by using a
variety of different processes.
 For example, management can achieve the same results by using different
inputs or by using different processes with the same inputs.
 Equifinality suggests that there is no one right way to accomplish important
results in an organization.
• In contrast, closed systems have one right way to do things. For example, in
heavily bureaucratic organizations, a person must finish the necessary
procedures regardless of how useful an intended result will be for the
organization – the focus is on doing things right, rather than doing the right
things.
• The concept of equifinality explains why there is no one right way to lead or
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manage organizations
Cont’d
5.3 METHODS OF LEARNING ORGANISATIONAL
CULTURE

 Organizational members in a number of ways and methods


can learn organizational culture.
 According to Brown the following ways have been identified
to be methods of learning the organization’s culture:
Artefacts. They refer to the total physical and socially
constructed environment of an organization.
Examples of artefacts include office space, equipment’s,
rules, systems and procedures.
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Cont’d
5.3 METHODS OF LEARNING ORGANISATIONAL CULTURE

 Language. It refers to the fundamental way in which the organisation

comprehends its world.


 Behaviour patterns. They refer to recurrent patterns of behaviour which are

a feature of organizational life. These patterns include rites, rituals,


ceremonies and celebrations.
 Norms of Behaviour. They refer to rules for behaviour which dictate what

are considered to be appropriate and inappropriate responses from employees


in certain circumstances.

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Inter-organizational Relationships.

• Interorganizational relations refers to the relations between or


among two or more organizations. There have been several
overviews of the field of interorganizational relations.
• Every organization has relationships with other organizations.
In the case of the university, if it is to function it must have
students, and to recruit them it must have relationships with
high schools, junior colleges, and other universities.

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Organization size and life cycle
Organization size
Size enables to acquire resources, bargaining power, compete on the
global market and avoid stagnation. Growth might be prioritized to other
goals such as profits or quality.
Dilemmas of large size
Large. Access to large capitals and global markets enables to take risks
and make investments otherwise out of reach.
Small. Fosters inter-group dedication and entrepreneurial spirit. Also
enhances innovation.
Hybrid. Obtained through a divisional structure
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Organizational life Cycle

Stages of life cycle development


Entrepreneurial. Focus in on providing the
product/service, market it and survive.
 Crisis occurs for lack of leadership.

Collectivity. Departments and specific job


assignments are developed. Formal systems start to
appear in a strong top down leadership environment.
 Crisis arises due to need for delegation
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Organizational life Cycle

Formalization. Internal control and operative systems are


created, the bureaucratic body of rules and procedures
concretized and communications formalized.
 Crisis occurs due to mid management immobilization and rigidity.

Elaboration. Collaboration between divisions is enhanced


without increasing bureaucracy. The latter is simplified and the
organization might be split in smaller units.
 Crisis might emerge as the company becomes over-complexity,
over-bureaucratized and sluggish. Renewal is required.
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Cont’d
Cont’d………………………..

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