Lesson 3: Organizational Development Process

Open Systems Theory

By: Kathy Chang

Organizational development is a planned system-wide change by using behavioural science and humanistic values, principles, and practices in order to reach a greater organizational performance, production and effectiveness. One of the organizational development (OD) processes involves the process of input-throughput-output. This process is called the open systems theory.

A system is a structure or organization of a whole that is made up of parts or functions. These parts or functions are interrelated to one another and to the whole organization which makes them work in their own parts/functions or as a whole to accomplish a specific mission. The OD framework sees organizations as an open system because organizations are interrelated to other components outside its boundaries such as their allies, constituents and stakeholders.

Inputs are the raw resources from the environment that go into the system. The necessary resources that a system need in order to produce a product or services are people, materials, technology, and time. Once these inputs are already inside the system, they will now undergo the throughput process. This is where the transformation happens. For example, a raw material such as cotton goes into a factory which is our system. The cotton will be placed to machines and labourers to transform it to a cotton shirt. After the transformation, the finish product will now be the output of the system. These finish product will again be sent back to the environment. In order for resources and finish products to go in and out of the system, the system should have permeable boundaries from the environment. Concrete examples for these are gates, doors and windows.

THROUGHPUT

http://managementhelp.org/systems/systems.htm

http://www.referenceforbusiness.com/small/Op-Qu/Organization-Theory.html