“Organization is social arrangement for controlled performance of collective goals with identifiable boundary “
What is organization?
Organization is gathering of people but different from other social gatherings because it is formalized up to certain extent. It has collective goals to achieve for which members of organization put their efforts in same direction and parameters are set to check out achievement of these goals, and prominently it has boundary which separates organization from environment.
System Approach for organization
According to this approach, organizations act as system, in which input is feed and processing is made and then output in obtained. Organization take inputs from the environment and then process it and converts them in outputs which are marketed again in an environment
The system can be of 2 types
- Closed system : not influenced by environment, all inputs and output is internally managed
- Open system :interact with environment, take input from environment, process it and convert them into output to get distributed in environment