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Kast and Rosenzwieg (1972) identified some of the earlier studies and ideas in this context. Figure 2 represents an open systems view of an organization.
Hence an organization is considered to be an open system: open, suggesting that it interacts with other, broader, systems outside the organization. These external systems are part of the organizational environment. When viewed as a system, the organization is a complex and integrated web of relationships between employees, structures, technology, and all technical and social processes (see figure 3)
As an open system the organization is in an interactive relationship with the organization’s environment...
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