Running head: OPEN SYSTEMS THEORY AND ORGANIZATIONAL SUCCESS 1

Open Systems Theory and Its Influence on Organizational Success

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 OPEN SYSTEMS THEORY AND ORGANIZATIONAL SUCCESS 2

Open Systems Theory and Its Influence on Organizational Success

An organization, in the most basic sense, is a coalition of individuals who work together

to achieve common goals and objectives. Organizations implement various designs that define

how the company is setup and how it operates. For instance, the open system setup is a modern

approach of setting up an organization such that the focus of its operations mainly involves its

relationship with the external environment (Scott & Davis, 2015). The external environment is

defined by: economic, cultural, ecological, and political factors. More specifically, an open

system is defined by: self-maintenance through utilization of resources in the environment, lack

of clear boundaries, and dynamic and constant interacting subsystems, among other

characteristics (Scott & Davis, 2015). An open system is more likely to result in the success of

an organization because of its focus on efficiency of processes and outcomes but it is not as

commonly adopted.

The open system theory is not commonly adopted in most organizations because most

companies have held on to the traditional hierarchy model. The top-down management model is

not suitable for the most organizations in the fast-paced evolving world. The shortcoming of the

traditional hierarchy organizational setup is usually the focus on the structure rather than the

processes which influence the outcomes. Additionally, the subsystems design of the open system

exists such that the failure of one part does not affect the entire organization. However, in the

traditional hierarchy system the demise of one department usually translates to serious

ramifications for the entire company (Scott & Davis, 2015). On the other hand, despite the

inefficiencies of a top-down hierarchy, most companies are able to achieve short-term success in

terms of profit.
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The best option for modern companies should be an open system setup. However, most

companies rely on the familiar traditional hierarchy to run their organization so long as profits

are achieved. An open system setup is the best long-term option because it is reliant on operating

as a unit and implementing efficient processes which translate to better outcomes such as

customer attitude, knowledge, and satisfaction.

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References

Scott, W.R. & Davis, G.F. (2015). Organizations, Rational, natural and open systems.

Upper Saddle, New Jersey: Prentice Hall.