Systems theory sees the individual person, group, business, and the organization's bigger set of mutually dependent organizations as a lively, unified whole. Changes in one or more parts of this multifaceted system involve changes for the others. "All system parts are in a state of more or less steady and active adaptation, and how well adjustment occurs becomes the serious question from a success perspective" (McCann, 2004).

Change was once believed to be intermittent and characterized by periods of comparatively low-level, managed disturbance, such as a new product introduction for interior operating needs, or a cautiously designed merger. "The growth of conglomerate forms of organization by way of acquisitions has been a way for many to diversify financial risk and smooth uncertainty. An organization's primary goal is to control change to protect the core business" (McCann, 2004).

Organizations continue to induce even greater rates of change through their own dynamics and constant technological novelty. There are less periods of comparative calm, and the conventional cushions of redundancies and slack resources...

The off-shore outsourcing phenomenon has begun and continues to be one result of this revision process. What is actually occurring in off-shore outsourcing is the externalization of interdependencies that had before been internalized within the organization. In actuality, the nature of the expenses associated with managing interdependencies has been altered, not completely done away with, and the business focus has moved from operations inside to those now exterior the organization (McCann, 2004).
References

Charlton, B.G. & Andras, P. (2003). What is management and what do managers do? a

systems theory account. Philosophy of Management, 3, p. 1-15.

McCann, J. (2004). Organizational effectiveness: Changing concepts for changing environments. People and Strategy, 27(1), 42-50.

Synergy. (2012). Retrieved from http://www.referenceforbusiness.com/management/Str-

Ti/Synergy.html

Systems Theory. (n.d.). Retrieved from www.uky.edu/~drlane/orgcomm/325ch04.ppt