Introduction to open systems theory

Open Systems Theory

According to Falletta (3), one of the strategies to improve a company's effectiveness involves organizational diagnosis. This means that the company is analyzed in terms of various factors in order to assess its current effectiveness. When this effectiveness is found to be lacking, the diagnosis can help the organization to devise strategies for improvement. In this, Falletta examines a number of different organizational models a company might choose to facilitate the diagnosis process. These are then examined to determine their appropriateness for a modern organization such as Walgreens Health Services.

One of the most important aspects of today's organizational world is the external environment. The influence of this element simply cannot be ignored if the effectiveness of a company is assessed. However, several of the models described by Falletta either ignore or significantly subdue this factor. Furthermore, a company that offers health services, such as Walgreens, cannot afford to ignore the external environment, as it functions within a highly competitive and demanding environment. It would therefore be to the detriment of such a company to solely adopt organizational models that do not view the external environment as an important diagnostic factor.

Falletta (8) notes that models including a significant external environmental factor does so based upon open systems theory. According to this theory, organizations are social systems that depends not only upon factors within itself to function effectively, but also upon the environment in which they exist. This external environment then provides inputs for the organization, which can furthermore be used for clues to make appropriate remedies for any functioning flaws. Hence, an open system allows for repetition in cycles of input, throughputs, output, and renewed input. In this way, organizational outputs are connected with renewed inputs via a feedback loop.

In terms of Walgreens, the organizational models that include the external environment as significantly important will therefore be considered more appropriate for the organization than those that do not. Force Field Analysis (Falletta 5), could be considered significantly appropriate, because it includes a significant environmental influence, for example. Within the organization, the model identifies driving and restraining forces. The environment could be a source of both. When these forces are in equilibrium, the company is stable. The aim is towards equilibrium. Appropriate change occurs when there is an excess of driving or restraining forces. The only potential disadvantage of this model is its relative simplicity. This might make it somewhat less appropriate for a complex organization such as Walgreens in a complex business environment.

Weisbord's Six-Box Model also includes the external environment, in that its influence occurs through the organizational inputs and outputs. The model also considers the interaction between the environment and the organization. While this is particularly useful for an analysis of Walgreens, it is also true that the interconnections between the boxes are not sufficiently explicit to provide a thorough analysis.

The Congruence Model for Organizational Analysis appears thorough in terms of both the internal and external environment. The model operates on the basis of inputs, throughputs and outputs, with the external environment providing feedback on inputs and outputs. The organization is regarded as a dynamic system, which is influenced by means of a number of variables. Of all the models, this one appears to be the most applicable to Walgreens.

Tichy's TPC Framework and Diagnosing Group and Individual Behavior are also regarded as particularly applicable to Walgreens, as a result of the significant influence of the environment. Tichy's model increases the complexity of the internal environment by recognizing that some relationships among variables are stronger than others. Environmental influence is recognized through inputs, outputs and the feedback loop. Diagnosing Individual and Group Behavior focuses mainly upon human relationships within the internal environment. It is also assumed that there are minimal boundaries between the organization and external environment. While this model is also useful, its focus upon the human factor in the internal environment may be somewhat limiting.

Leavitt's Model, Likert System Analysis, the McKinsey 7S model and High Performance Programming on the other hand, are considered to be somewhat inappropriate when applied to Walgreens. However, some of the other elements in these systems might have some benefits when included in the diagnosis. McKinsey's 7S model for example includes the interactions within the internal environment to such a degree of subtlety that, despite its lack of focus on the external environment, it might usefully be applied to the internal complexity of Walgreens.