Tuesday, September 13, 2011

Organization Theory - 4

In the earlier blog, we began looking at an organization as a system and mentioned that we would continue the discussion in today's blog.

We could pictorially represent an open system in the following diagram.

The diagram illustrates that, the organization takes inputs like - people, raw material, physical resources, finance etc and through a transformation process (indicated by the motor - motor transforms say electricity into mechanical motion) create outputs as the products and services that it provides to its clients. However, these are not the only output! And is not always positive. It could be in the form of employee satisfaction, pollution and several such secondary outputs.

We could also look at the mechanism shown in the diagram by understanding them as subsystems. The transformation process itself could consist of several sub process like, production, maintenance, management, adaptation etc. In addition to these, there is also the subsystem of boundary spanning. The Boundary spanning system looks after the exchange of information with the external environment. This subsystem plays a very critical role in exploring opportunities and might be the very source of survival for organizations starting off!

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