Reference:Glossary of terms/Systems and Organization

System

A set of interdependent and interacting elements, system problems do not lend themselves to piecemeal solutions. Consequently, tinkering with part of a system has an impact on the rest of the system. Actions taken to optimize the functioning of any part of the system will suboptimize the functioning of the total system.

Open Systems

All living organisms are open systems. They are systems open to their environments; they act upon their environments and are, in turn, affected by their environments. They gain their sustenance by transforming inputs from their environments into products useful to themselves and to their environments. In the case of people, that activity is called "work."

Transformation Process

For living systems, the transformation processes involve changes in the structure of materials such as photosynthesis in plants, digestion and reproduction in animals, etc. In terms of work, it is the conversion of peanuts to peanut butter, petroleum into its many products, time cards into paychecks, a set of parts into an assembly, and a diseased patient into a healthy one.

Input, Output, Throughput

The input into organizational transformation processes may be materials, people, information or combinations of these. Actual inputs into a system may not be' self-evident until transformation processes are defined. Outputs are exported by the system to environments. Their value earns an organization access to resources necessary for its continued functioning. Throughputs are inputs within the system in the process of being transformed.

Boundaries and Environments

Living systems have boundaries that separate them from their environments and across which they import inputs and export outputs. Boundary controls (or management) are for all organisms critical functions without which they cannot survive. The environments that are relevant to the organism are those that affect the living system.

Organization (firm, company, plant, etc.)

When people work together to carry out transformation processes, their activities are both interdependent and interactive. These activities constitute a system embodying a variety of structures which, together, are an organization.

Organizations are a unique type of living system made up of people, each of whom is also a living system. Organizations continue as their members change. As systems, organizations may be thought to have needs, goals, and purpose as do members of organizations. An organization may be analyzed as the combination of people (social system) and the means (technical system) they use to transform inputs into outputs.

Organization-Environment set

Organizations are entities that exist in a complex framework consisting of sets of relevant environments and stakeholders each of which places demands on the organization. The organization acts in many roles vis-a-vis this set: as a transforming agency, an economic entity, a mini-society, a collection of individuals and an open socio-technical system.

Relevant Environments

Environments are endless. What counts are environments that pose issues to which the organization must respond: technological developments that change markets, processes, and work in the organization's area of business; the social environment affecting the workforce from which organization members are drawn; the capital market. Environmental issues are often wickedly contradictory and problematic.

Turbulent Environments

Environments were once simple and stable, with very definite rules for conducting business and utilizing people. Today, environments are in turmoil, crowded with many competing interacting organizations. The very rules under which organizations must operate change in unpredictable ways. Such turbulent environments are characterized by increasing relative instability and uncertainty. In turbulent environments, survival requires adaptability.

Stakeholders

Stakeholders are specific actors in.or outside the organization whose future actions can have significant impact on the organization's future. They are the set of individuals or groups who place demands on or have expectations of the organization. These demands are objectives the organization must satisfy.

Multiple Objectives

Through demands and expectations, stakeholders impose objectives on organizations. Organizations must satisfy all of these objectives which are often in conflict, thus serving a multitude of obvious and often hidden masters. Multiple objectives require organizational flexibility and adaptability.