Question

Organizations are currently open systems. Why are organizations considered open systems as opposed to closed systems? Explain various concepts/ways that help organizations be or become open systems. How can organizations remain open when the world is asked to socially isolate?

Answer 1

Any management system within an enterprise may be considered to be "accessible" or "closed." An open system communicates with other systems through the free exchange of information, whereas closed systems function independently with little to no outside control. Closed systems have the benefit of being effective, since simple procedures do not impact external influences. The easiest way to understand the closed systems is to see how companies use them.

A company that operates an open framework communicates with its community through knowledge provided and obtained. In a closed system, interactions occur only within the particular system, meaning that closed systems are shut off from the external world, and each interaction is transmitted within the closed system. Workers in closed structures within an company don't talk about their operations with other departments, nor do they seek feedback from other departments.

An assembly line is a closed system, since the everyday activities taking place are not dependent on or affected by external factors, such as what other assembly lines do, or interactions between mid-level and executive management. Assembly line employees perform their daily tasks without having to fear that an occurrence such as a staff meeting will disrupt their job. Staff on assembly line must also stick to a strict set of procedures to ensure efficiency and profitability. Any activity beyond this very specific system will discard efficiency and wreak havoc with schedules frequently rendered months or years ahead.

A business' R&D division is a closed structure, since the people responsible for designing new products or new technologies operate without consulting other divisions within the organization. It means R&D employees are segregated from outside influences and are not communicating with anything outside their system. Operating as a closed framework for an R&D division helps company owners secure valuable intellectual property which may be worth millions in the life cycle of a new product or service.