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Management and Company Organization Notes and Answers

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Ans: Open System is a theoretical model of an Organization, used to diagnose/investigate it.
The three main key issues involved in an open system are
• How does theory analyze various components and section?
• How does theory cope with different environments?
• How does theory transmit its processed outputs?

Five key system properties of Open system theory:
• Input: Input resources are taken or received from the external environment.
• Transformation: The process of conversion or transformation of resources within a system.
• Outputs: The work of the system, exported back into the environment.
• Boundaries: The distinction between system and the environment.
• Feedback: A continuing source of information concerning the relationship with the external environment used to make the necessary change in order to survive and to grow.
• Equifinality: Relative causes and effects between initial and final state of a system.
• Alignment: Overall effectiveness of a system is determined based on the effectiveness of different subsystems aligned with in it.

Ans: An effective diagnostic model in place can help, identifying reliable data of an organization to understand the strengths, weakness, area of improvement, and opportunities. The six-box model is an effective and easy to use diagnostic model. The six organizational factors: the organization strategy, structures, rewards, internal relationship, helpful mechanisms and leadership.

Weisbord’s six-box model: This diagnostic model

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