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Organizations as Systems
Organizations exist and operate in a competitive environment, and can seem complex and highly confusing amorphous mess that is very had to comprehend and analyze. The notion of "Organization as Systems" refers to an approach to conceptualizing organizations as systems based on systems thinking and theory, in order to give clarity and perspective to study and analyze the organization. A system is defined by its boundaries - the limits that identify its components, processes, and interrelationships when it interfaces with another system.
Using systems overlay to understand organizations allows for the acknowledgement of the idea of systems composed of subsystems, their inter-relatedness and interdependence; the existence of boundaries that allow or prevent the interaction between various organization units and elements of other subsystems and environments. Systems theory likens the enterprise to an organism with interdependent parts, each with its own specific function and interrelated responsibilities. To ascertain certain subsystems requirements properly and to design appropriate organization's form (structure), functions, and sub-systems, etc., it is of primary importance to understand the purpose and mission of the system as a whole, and the relationship to its environment.
A number of various system views - logical system, open system, social system, operations system, performance management system, and control system - can be defined to aid analysis and improve the shared understanding of the organization. For example, the combined view of organizations as open, social systems is a systems theory approach to understanding organizations as organic, alive, dynamic and complex systems. Open systems, are essentially, goal-seeking, information feedback systems.
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