Organizations as Open Systems

Organizations as open systems are entities that continuously interact with and depend on their external environment—such as customers, suppliers, and technology—to survive and thrive. They take in resources like inputs (materials, information, labor), process them, and produce outputs (products, services). These exchanges influence and are influenced by factors outside the organization, requiring flexibility and adaptation. Viewing organizations this way emphasizes their dynamic nature, recognizing that success depends on effective communication and relationships with the external world while managing internal processes efficiently.