Organization Development: Define Open and Closed Systems

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Define Open and Closed Systems

A system is “a composition of different parts that perform together in order to improve productivity or performance” (Koskinen, 2013, p. 37). Two types of systems occur in organizations. The first one is an open system. An open system embraces new ideas from the environment. Many open systems interact with their immediate environments in order to improve performance (Singh, 2009). An organization’s marketing department presents the best example of an open system. A closed system is usually rigid in nature. Such a system will have little interaction with the surrounding environment. The transmission of knowledge and ideas does not occur within closed systems. A closed system can discourage growth because it reduces the level of interaction with the environment.

Determine if this organization is an open or closed organization

The targeted organization for this paper uses an open system. The company has always collaborated with different stakeholders and business partners to achieve its objectives. The company’s Production Department (PD) collaborates with different suppliers and business partners. The corporation has always used the best strategies to remain profitable. Such strategies focus on “every environmental factor such as politics, economic patterns, and socio-cultural practices” (McLean, 2012, p. 42).

The organization advertises its missions and products using various channels such as social media and newspapers. The above practice explains why this is an open organization. The “practical world does not give room for absolutely closed systems” (Silverthorne, 2005, p. 48). The firm’s marketing department also focuses on every changing environmental condition in order to achieve its targeted goals. The organization’s Research and Development (R&D) does not interact with the outside environment. This organization promotes an open system in order to realize its potentials.

Compare an example of an organization that is a closed system

Some companies are closed systems because they have little interaction with their outside environments or elements. Such systems “does not mean the organizations are completely closed” (McLean, 2012, p. 47). A good example of a closed organization is the National Aeronautics and Space Administration (NASA). This agency is responsible for America’s space and aerospace research. The organization handles critical and sensitive information. The agency’s main stakeholders include the government and various learning institutions.

The organization prefers a closed system in order to conserve its information. This practice ensures the agency’s information in never corrupted or lost. The practice retains the level of integrity in the organization. This system differs from the one applied in the above company. NASA interacts with a small number of interested parties and stakeholders in order to achieve its objectives. Every organization should consider the best system depending on its goals and business objectives.

Are the system structures in these organizations appropriate or detrimental to their goals?

The open system used in this organization is appropriate towards achieving every targeted goal. Open systems ensure organizations focuses on the changing expectations of their stakeholders. This system structure ensures every organization acquires new ideas and information from the environment. Companies can use open systems to make the best decisions. An open system has always been supporting the goals and missions of the above organization (“Open and Closed Systems,” 2014). NASA is a closed organization. This system ensures the organization safeguards its information and data. NASA also collaborates with a few stakeholders in order to support its goals. This system structure is appropriate because it supports NASA’s goals.

Reference List

Koskinen, K. (2013). Knowledge Production in Organizations: A Processual Autopoietic View. New York: Springer.

McLean, G. (2012). Organization Development: Principles, Processes, and Performance. New York: Berrett-Koehler Publishers.

Open and Closed Systems. (2014). Web.

Silverthorne, C. (2005). Organizational Psychology in Cross Cultural Perspective. New York: Wiley.

Singh, K. (2009). Organizational Behavior: Text and Cases. Oxford: Oxford University Press.

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Organization Development: Define Open and Closed Systems

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