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Business Review: Open Systems Theory

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What is open systems theory? How can open systems theory be used to understand an organization? Discuss how open systems theory could apply to an organization to which you belong; or you could discuss applying open systems theory to Industrial Services of America, Inc.

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Open Systems Theory:

This theory perceives the organization as a unit that relates with its external environment. The organization is looked at as independent with the other environments that relate with the company and its operations. This theory proposes that an organization is strongly influenced by its environment which comprises of forces such as the social nature, political and economic. Through the organizational environment, key resources are provided to the organization that sustains the operations of the company leading to change and survival during hard times. This theory was developed after the Second World War and it does not treat the organization as a self-contained entity but rather a unit that depends on it environment (Bastedo, 2004).

How Open Systems Theory Can Be Used To Understand an Organization:

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