DBA 203 ORGANIZATION THEORY NOTES

It must correctly interpret and act on the changes

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It must correctly interpret and act on the changes happening to its environment. It must also control and coordinate its internal activities in the face of environmental disturbances and uncertainty. The need for input from the environment and the need to export its output into the environment denote an interdependence relationship between an organisation and its environment. It both consumes resources from and exports resources to the environment. 71
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It cannot seal itself off from its environment. It must deal continuously with its environment. At the same time, it must also deal with internal efficiency as well as interact and act on the environmental changes. It must sell its output in the environment, coordinate its internal activities, and deal with environmental changes and uncertainties. All systems that must deal with their external environments to survive are open systems. Human beings are open systems. The University of Nairobi is an open system. Depends on its environment Obtains inputs from environment Sells outputs to environment Cannot seal itself off from the environment To survive it must continuously change and adapt to the environment It must correctly interpret and act on the changes happening in its environment At the same time it must control, structure and coordinate its internal environment to take account of changes in the external environment. a) Advantages of looking at organizations as open system: 72
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Enables us to see the independence the organisation on the environment Enables us to understand the inter-relationship between the organisation and the environment b) Disadvantages o Tends to ignore the role of management behaviour and decision-making, capacity to make the organisation efficient. o It ignores the importance of the internal environment to the organisation’s efficiency and effectiveness. 4.5 Input – output analysis of a system An input- output analysis depicts the system as taking or receiving resources from the environment, processing them into outputs and giving them to the environment. Input – output analysis involves examining a flow of materials, ideas, concepts, money, people, e.t.c. from the environment. The input- output analysis consists of 5 parts namely: Inputs : the resources, ideas, concepts and people coming from the environment. 73
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The transformation process: the process that works on the inputs and changes them usually by adding value. The feedback: the process or flow of information regarding the quality or price e.t.c. of inputs and outputs. The outputs: the end results of the transformation process that is taken to the environment. The environment : the element, which constitutes these sources of inputs or the users of the outputs.
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