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What are the key issues involved in open systems theory?

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Open systems theory is a tool that is used to investigate and examine an organization by way of a theoretical model. In the model, various key variables that exist both inside and outside the organization are examined as to their relationship with each other to understand what combination of variables works best in enabling the organization to achieve its goals.

Most of the issues in an open system concern the action and interaction of the three main components of an open system, namely, inputs, processes and outputs. Inputs are what the system takes in from its environment including all the variables necessary to operate the system such as manpower, ideas, financing, facilities, technologies, timing, partners and so forth. Three key issues for an open system are: First, how does the theory analyze its various components and sections? Second, how does it cope with the different environments that interrelate with it, and third, how does it then transmit its processed outputs?

The open system study presents the organization as a system that produces outputs by taking inputs from the environment, putting them through a process that converts them to outputs that are then reintroduced to the environment. The goal is to operate this system with the maximum efficiency. In addition to the external environment, the issue of environment also exists in the internal system or the processing function of the organization.

For the issue of environment, open systems theory seeks to analyze the relationships between the system and the environments. These relationships are sometimes broken down into specialized areas in order to cope with the complexities of operating in a multicomponent process. Environmental areas can include the economic or commercial part of the system. The external environment in this area would be the relationships between the organization and commercial forces such as business and government. The internal environment of this area would be all the functions of the organization involved in purchasing, financing and marketing. The second area is technology, which is primarily an internal environment issue involving the processing and how it takes in and puts out technology that interacts within the system to produce outputs. Another area is the social or personnel environment, which involves the internal environment, namely, the human resources of the organization and all its areas of concern as well as the projection to the external environment of image and education through its personnel. The fourth area, which is the political environment, is mainly an external environment involving the relationship of the organization with government and also involving the legal areas of interaction.

The key activity in an open system is the regular gathering and exchange of feedback between the organization’s external and internal environments, which facilitates the analysis and examination of the operation and processes of the organization. Once the feedback on the internal environment has been taken in and analyzed, the organization can then adjust its internal variables and systems to achieve its objectives in terms of outputs as well as internal processing improvements or adjustments. Once this is done and outputs have been processed, the organization can then transmit its own information and feedback to its external environment. Analysis of the flow of all processes and elements of the system and its environment is necessary once the individual areas have been analyzed in their isolated applications.

Within the issue of analysis, the open systems theory will often deal with analysis issues such as what problem to focus on or where to start. As problems are generally complex, analysis may find that the problem selected may just be a part or a forerunner to a more significant problem. Finally, another issue may be how large or small should the model be when analyzing the organization.

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