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The Theory and Design of Organizations

An organization is defined as a social arrangement in which collective goals are pursued and the performance of an organization is controlled by itself and it possess a boundary that separates the organization from its environment. The actual word of organization is derived from a Greek word which means tool (Hardy, Clegg, & Nord, 1996). There are different definitions of the word organization but the word organization is closely related to management and it inculcates elements like structure, behavior, attributes of the stakeholders.

The definitions can be explained as it is a form or formal agreement in which an individual or a number of people combine together to attain profits and to work for the betterment of their organization. However, organization can be of not for profit basis but most of the organizations are directly related to the field of business management. The environment of the organization is framed by its stakeholders and certain external forced like competitors and legal authorizes also shapes up the environment of an organization.

Therefore, it can be said that the core purpose of an organization is to achieve collective goals and the performance of an individual doesn’t matte in an organization and the entire organization is

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responsible for that. The literal meaning of organization is tool and it can be related to the tools of management that are used by individuals to manage the organization. 2. Describe an open system (input, processes, output), and evaluate the different parts of an open system and its subsystem. A system that is based on the feedback and that regularly exchanges feedback with its external environment is known as an open system.

Each and every aspect of an open system is of utmost importance and different elements of an open system are input, process and output. Similarly, there are certain other factors that are equally important for an open system these factors are boundaries, external environment and equifinality. The open systems are essential for an organization and organizations heavily rely on open system because healthy open systems are the ones that continuously exchange feedback with their environments and then they analyze the feedback and then necessary information is transmitted back into the environment.

The parts of an open system are discussed below: • Inputs: The inputs of the organization include the standard materials and concepts used by the organization. The inputs of the organization are people, money, time, customers, location, technologies, ideas and etc. • Processes: It is used to process the inputs of the organization and then ultimately produce output. The examples of output systems include products and services, functions, projects, cross-functional projects and etc. • Output: The tangible results that are achieved from the product and services of an organization are known as outputs.

The examples of outputs are courses, revenue, fixed cars, patients and etc. • Outcomes: The benefits of the customers are classified in the outcomes of an organization and ultimately after receiving the desired outputs customers become happy, mobile, financially strong and etc. The entire process of an open system is linked with the overall goals of the organization and there are certain other subsystems involved in this process which are termed as evaluation, learning and adaptation (Carter, 2006). 3.

Evaluate the major stakeholder groups and what they expect Stakeholders are considered to be an important aspect of organizations and organization heavily rely on stakeholders. It is the stakeholders that can make or break an organization. However, the actual definition of stakeholders can be given as an individual or a group of individuals that are affects the organization or the decisions of the organization directly affects them. In terms of an organization there are two major types of stakeholders these two types are external and internal stakeholders.

Customers, suppliers, distributors, employees, legal agencies, governments and etc all of them comes under these two classifications (Baum, 2005). These major stakeholders are evaluated below: Customers: Customers are the most important element of an organization and organization heavily rely on them it is the customers through which an organization drives its revenues and they are managed carefully by all the organizations. Suppliers: Suppliers are the one that supplies basic raw materials or sometimes the final products to the organization. It is the supplier that helps the organization in developing the final product.

Employees: The day to day affairs of the organization are managed by the employees and the employees help the organization to achieve its desired goals. They are considered as a running blood of an organization. Therefore it can be said that all the stakeholders are of utmost importance and all the organizations can achieve self sufficiency in both the short and the long run if they stakeholders are managed properly. The stakeholders expect proper coordination among them and motivation by the organization. If coordination exists between stakeholders then an organization can easily experience growth.

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