The Organization is a Dynamic, Social System


DRJOHN2Dr. John Psarouthakis,
Executive Editor, The Business Thinker.

Once created, your company begins to take on a dynamic of its own. In spite of your best efforts, you eventually discover that you cannot control every action or outcome within your company, much less those actions impinging on it from outside. Why? According to open-systems theory, your company is part of a multi-tiered set of social systems. At one tier, your company is made up of individuals with freedom to choose and act, creating their own dynamic situation within the organization. In turn, your company interacts with individuals and organizations at higher levels of social systems beyond the organization’s own boundaries, further adding to its dynamic qualities. The Figure below illustrates this idea.

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The Organization is Part of Multitiered Set of Dynamic Social System.

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The Organization Needs to Combat Entropy (disorder) to Survive

drjohn11a
Dr. John Psarouthakis, Executive Editor, The Business Thinker.

This is a brief summary of the issue of disorder in Dynamic Management of A business.

Every organization needs to combat entropy or disorder to survive. The natural course of the universe is toward further disorder, according to the Second Law of Thermodynamics. But on a local level, order can be restored. You can counter entropy within your own company by understanding how open systems fight chaos: Inputs are brought into the system, transformed in some manner, and then exit as outputs. These outputs (your products or services)—are then exchanged for new inputs. To counter entropy, this input-transformation-output (I-T-O) cycle must continually repeat itself during the life of the enterprise. The more efficient the transformation process, the more resources are left over for future use.

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The Fusion of Civilizations: The Case for Global Optimism

By  and 

Foreign Affairs, May / June 2016 issue.

KISHORE MAHBUBANI is Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore and the author of The Great Convergence: Asia, the West, and the Logic of One WorldLAWRENCE H. SUMMERS is President Emeritus and Charles W. Eliot University Professor of Economics at Harvard University. He served as U.S. Secretary of the Treasury from 1999 to 2001 and Director of the National Economic Council from 2009 to 2010.

The mood of much of the world is grim these days. Turmoil in the Middle East, causing hundreds of thousands of deaths andmillions of refugees; random terrorist attacks across the globe; geopolitical tensions in eastern Europe and Asia; the end of the commodity supercycle; slowing growth in China; and economic stagnation in many countries—all have combined to feed a deep pessimism about the present and, worse, the future.

Historians looking back on this age from the vantage point of later generations, however, are likely to be puzzled by the widespread contemporary feelings of gloom and doom. By most objective measures of human well-being, the past three decades have been the best in history. More and more people in more and more places are enjoying better lives than ever before. Nor is this an accident—because despite Samuel Huntington’s foreboding, what has occurred over recent generations is not a clash of civilizations but a fusion of civilizations.

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