BU398 Study Guide - Midterm Guide: Mckinsey & Company, Psych, Control Lock
Document Summary
Organizations are social entities that are goal directed, designed as deliberately structured and coordinated activity systems and linked to the external environment. An organization is a collection of people working toward a common goal. Organizations comprise people and their relationships with one another. An organization exists when people interact with one another to perform essential functions that help attain goals. An organization cannot exist without interacting with customers, suppliers, competitors, and other elements of the external environment. Organizational theory ideas about what organizations are and how they work. A closed system would not depend on its environment; it would be autonomous, enclosed, predictable and sealed off from the outside world. Open system: must interact with (and adapt to) environment. System a set of interacting elements that acquires inputs from the environment, transforms them, and discharges outputs to the external environment. Inputs to an organizational system include raw materials and other physical resources, employees, information, and financial resources.
