Strategic Leadership: Open & Closed Systems
System theory helps in determining how an organization interacts with its environment and on the basis of this responsiveness, it can be labeled as having an open or closed system. According to definition provided by the theory, open system can be defined as an organizational model which facilitates interaction between organization and its environment. Hence, an organization can take inputs from the environment and process them according to its purpose along with providing its output to the organization. In addition to that, feedback from environment can also alter organization’s processes and systems accordingly. On the other hand, closed organizational systems are self-sustaining models that are isolated from external environment and do not allow environmental variables to affect their processes. Only internal feedback mechanisms have a tendency of altering organizational systems. Hence, open systems tend to have flexible structure which allows them to grow in response to their external environment. Whereas, closed systems bear a constant character that shows slow gradual changes if necessary.
Literary analysis of open and closed systems helped in understanding how each organization responds to its external environment and how this interaction affects its processes and performance. Analyzing SAS in the light of these pre-established concepts lead to a conclusion that having open organizational systems is appropriate for its goals and objectives....
d its processes require an open system that would allow management and workforce to interact with the environment on continuous basis and this is what SAS.com precisely does. It collects information from the industries in which its clients exist, perform analysis of that information and share the identified trends and projections with the client. It can be observed that there is a constant exchange of information between SAS.com and its external environment. Due to its constant feedback mechanism, its internal systems have shown transformation and development since its inception. This responsiveness to environment is the foundation of its business mechanism (SAS Inc, 2013). In today’s world where organizations are forced to respond to rapidly changing industry landscapes, it is difficult for organizations to have closed systems and survive simultaneously. However, there are institutions that have closed system but not in an ideal theoretical way. For the sake of example, national armed forces can be used. Armed forces have a culture of isolation which allows them to use resources that they already have (Schverak, 2010). Although human resources and other necessary supplies are obtained from the environment but armed forces do not change their systems and policies in response to external environment. Their pay scales, budgets and many other policies remain constant for a considerably long time and show slow amendments on the basis of government’s orders. Here, the example is used by considering Army’s routine operations and individual events such as secret operations etc, are not considered. Similarly, exceptional events such as strategic alliances with other countries and responsiveness to intelligence are not discussed here. In a highly non-idealistic way, Armed