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Organizations are viewed as open systems since the boundaries of the organization are permeable to the external environment. The simplest open system consists of input, a transformation process, and output.
* The information processing view assumes that organizations are open systems that face uncertainty, process information, and have different subunits that influence the structure and coordination mechanisms for organization design. The following propositions summarize the information processing view.
The task subunits vary in the degree of uncertainty
As uncertainty increases, so does the need for information Different structures have different capacities for information processing
An organization will be more effective when there is a match between information processing requirements in information processing capacity
Subunits will adapt their structures to meet changing information processing requirements
• The contingency approach goes beyond systems theory and information processing to relate environmental input to specific organization structures...
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