Organizations tend to adopt three major theoretical perspectives that form the basis of their systems. The three include the open, rational and the closed systems (Scott, 2003). There is the crucial need to ensure one can understand these perspectives to understand how the organizations operate. The three perspectives are a representation of the scientific development of the organizations.
However, they tend to have a focus on certain organizational aspects making the modern organization system be a blend of the three major perspectives. Based on organizational science that was formulated in the early 20th century there has been an emergence of rational, open and natural system theorists that explain the functioning of the organizations.
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The natural and the rational perspectives ignored the element of the external environment with the assumption that organizations existed as closed systems. On the contrary, the Open systems approach incorporates the aspect of the external factors that have an effect on the organization (Hardy, 1983, p. 341). The open systems perspective depict that organizations exist as a jumbled collection of interrelated systems linked by activities of the participants that are brought together by various institutional environments (Scott, 2003).
It is depicted that modern organizations tend to incorporate the aspects of the open systems with those of the natural and rational perspectives. Examples include the institutional, transaction cost, and the contingency and the contingency theories. Organizations adopt the open system that accommodates the other two theoretical perspectives for it to exist (Davis & Scott, 2006). These organizations tend to have structures that are based on the processes, the products, and the function.
In the analysis for the adoption of the three theoretical perspectives, the Coca-Cola Company shall be used because of its existence as early as the 19th century (Ford, Stephens, & Cooper, 2007). Coca-Cola is the biggest company in the world dealing with the production and marketing of soft beverages. Moreover, it has one
The open system leaves the door open for better communication. The open system focuses on the organization and the external possibilities while the closed focuses on internal possibilities when problems occur. The open system is influenced by the environment, which also causes weaknesses in the structure since every day there is change. Environmental changes cause organizational changes. The close system in an organization shows organized structure and order, however, lack structural mobility (“Open Versus Closed Systems,” n.d.).
There are several organizational structures that can be implemented by organizations. These organization structures are from two different viewpoints, traditional and contemporary. The traditional models such as hierarchies and bureaucracies are founded on the assumption that organizations exist in a basically calm environment, with changes occurring only as the
This theory can be described as a way in which organizational members collectively interpret the organizational world around them in order to define the importance of the organizational happenings.
According to DiMaggio and Powell (1983), neo-institutional Theory explains that an organisation adopts other organisational practices or the legitimated elements because of the pressures forced by surrounding environment. They state that there are two types of isomorphism, competitive isomorphism and institutional isomorphism, but their study focuses on the institutional one. The
Since organizations are open and complex adaptive systems they must interact with their external environment. The external environment could consist of many things such as money, people, materials, technology, information, etc. The external environment supplies these inputs and then the organization will create goods or services using the inputs provided by the environment. Organizations are then turning the resources they are provided with into final outputs. This is called an open system. Once the organization has provided the final output for the environment, the environment then consumes the output and then provides consumer feedback that the organization analyses to see
An open system as Harrison and Shirom (1999) explains is product by which a whole entity operates based on individually functioning parts simultaneously in order to achieve the system’s goals. According to Katz and Kahn (1971), there are essentially nine working components of an open system. These nine characteristics are typically common to various types of open systems and can be thusly applicable to my current organization as follows.
According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the
The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical
The Coca-Cola organization has made exemplary strides mainly to offer a variety of products to its clients even with the competitive nature of the market. Consumers’ choice gets based on the brand aspect in which the organization wins most customers' heart against its rivals. Even though a significant number of people deny cases to having inclination picking between Coca-Cola items or its rivals', many have a strong desire in some way. Many inclines toward Coca-Cola products since the organization has more than hundred years of history and predictable brand image. This picture is engraved in a lot of people subsequently end up purchasing their beverages. It is out rightly conspicuous in the company’s high market share in the field of soft drinks.
Institutional Paradigms are considers the wide spread effects of social structures such as rules, regulations, or authoritative guidelines shape how the organization looks or acts (Tolbert & Hall, pp. 181). The following essay will outline both the benefits and disadvantages of the Institutional theory, as well as, give a reference on how the institutionalization processes shapes an organizational decision-makers ' choices, and a conclusion of my personal opinion of the theory will be provided.
Assumptions of Organizational Economics Theory: organizations are superior to markets in managing complex and uncertain economic exchanges because they reduce the cost of transactions; different approaches to organizational economies share a common attention to explaining the emergence and expansion of organizations, hierarchies,
The history of management includes multiple theories and understanding them can help individuals identify the ideas their organization is built upon. Classical organizational theory encompasses several major approaches to management that continue to be influential even today. The early to mid-twentieth century included the introduction of many concepts of management theory such as scientific management, bureaucratic and administrative theory. Most of these early approaches revolved around control of employees and processes in order to achieve more
The introduction of a recent concept of exogenous variables gives institutional theory a strictly concordant analytical framework. In response, this new framework admits to attaching the rise of certain organizations to that of certain institutions and to develop the similarities or isomorphism, behaviors, forms and structures outcropping in an organizational field. By dispersing, if these institutions expand their domains, and therefore with the necessary conditions, this theory
According to traditional theorists such as Fayol, Weber, and Taylor, a school of thought identifies a level of agreement in their view of organizational system implementation. These classical theorists indicate in their readings that there is
This discussion will first look at the organization as an organism. Then, discuss the implications of open systems and the importance of the environment. Finally, evaluate the strengths and limitations of the organismic metaphor.