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Kast and Rosenzwieg (1972) identified some of the earlier studies and ideas in this context. Figure 2 represents an open systems view of an organization.
FIGURE2
Hence an organization is considered to be an open system: open, suggesting that it interacts with other, broader, systems outside the organization. These external systems are part of the organizational environment. When viewed as a system, the organization is a complex and integrated web of relationships between employees, structures, technology, and all technical and social processes (see figure 3)
FIGURE 3
As an open system the organization is in an interactive relationship with the organization’s environment...
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