Systems Theory

One way of classifying systems is whether they are open or closed systems and in terms of their relationship with the environment in which they operate.

A completely closed sytem is one with sealed boundaries against any influence from or interaction with the outside environment. It is said that both classical and human relations theory are considered as closed systems in as much as they do not take external factors into consideration.

An open sytem will have boundaries, but does have a relationship with its environment. When an open sytem is acted upon by other systems it is said to carry out a conversion or transformation process which it then outputs to other systems in the environment.

The diagram below illustrates a model of open sytems which can be applied across a range of organisations - consider what type of inputs, processes and outputs there are in an organisation you are familiar with, who the stakeholders are and what kind of external variables the organisation will have to take account of.