Open System Theory


Developed by Daniel Katz and Robert Kahn in the 1970’s, this theory is more of a framework as opposed to a theory. Katz and Kahn view organizations much like living organisms since they share very similar characteristics. Open systems theory provides insight to understanding the characteristics of an organization but does not offer any suggestion as to how the organization should be run.

!0 Characteristics of an Open System:

Characteristic                                                Organizational

Importation of energy                                Hiring/Training/Promoting

The Through-Put                                        Production of goods

The Output                                                 Selling of goods

Systems Cycles                                          Work shifts

Negative Entropy                                       Avoid "being in the red"

Input, Feedback                                         Market surveys