Question

Describe the three types of organizational designs: rational, natural, and open systems. These three designs often operate interdependently-explain how they are interdependent but also unique. This question is related to the study of organizations.

Answer 1

• The rational,natural and open systems perspectives all co-exist with each other with different methodologies.
• The rational system says that organizations are created for a purpose and achieving certain goals.The goals have to be clear and specific.Also organziations have high degree of formalization wherein,rules are set up for governing organizational behaviour and formal structure is present.A formal structure defines the roles of each organizational member,functions of each role,what tasks they have to perform and whom to report.
• The natural system focus on the behavioural structure of the organization.This perspective recognizes organization as an asset,instead of just seeing it as a means to attaining ends.This perspective focuses on the informal systems of the organizations focusing on how people communicate with each othe,who all are willing to contribute and having a common purpose.It focuses on human relations and says that behaviour of the people in the organization is influenced by social context.The behavior of individuals within organizations is influenced by organizational ideology and values.
• Both rational and natural systems perspectives tend to focus on factors within the organization and hold the organizational environment constant, which means that they take a closed systems approach. However, organizations do not operate in a bubble, they are effected by their external environment.
• Open systems perspective focuses on the interrelationships between organizations and their external environment.Bounded rationality theory is based on this system,focusing upon the rational aspects of organizations along with the external environment.This theory examines the influence of the environment on decision making within organizations.The organizations and the social environment factors influences the decision makers in choosing alternatives,understanding the consequences of their actions on the markets,what actions to ignore etc.
• Environmental stimuli serve as the foundation upon which routine activities within organizations are built,which is why effective interrelationship between external environment and organizations is needed to build its reputation.
• So,when an organization is rational in its approach,their goals are clearly set,employees roles are clearly defined,formal chian of command exists and teams work together to achieve common goal(natural) and keep a check on the ever changing external business environment for strategy building(open),then only an organization will be successful.