The two sides of organization

( Alemseged Sisai Woldemariam, JULY 2017)

Organization is a system of bounded or un bounded forms of territory which is deliberately

coordinated to perform different works to give measurable performance output. A system can be
closed or open system which have an input to be processed and finally to attain performance
output.

In a bounded or closed system of organizations the territories are closed to accept any raw
material (example compliant as raw material) fro ; and in un bounded or open system
organizations have different inputs from external environment to have performance out puts.

The main difference between closed (bounded) or open ( un bounded) forms of organizations can
be seen on input side and output side.

Difference closed ( bounded) open ( un bounded)

Input side Inputs are raw material ( Compliant from customers or
example germanium and public
carbon to produce IC)
Output side Manufactured end product Solutions, plea, decisions,
change management
Process MACHINES AND EXPERTS OF DECISSION
KNOLEDGE OF MAKERS , LEADERS,
EXPERTISE DUGDES,
PERFORMANCE

1- Closed system of organizations and its parts

a- Input

Closed system of organizations uses its input from its expertise knowledge source to produce raw
material to input itself and to produce end processed product. Internal knowledge: it is
knowledge of the organization prepared to processes. Knowledge of organization s can be
explicit or implicit knowledge type.

Implicit knowledge is a source of knowledge which is found within the long term memory of
individuals employee. It is obtained from education, experience and training.

Explicit knowledge is a source of organizational knowledge which is coded in the form of

secondary source of data. Examples are work rules, proclamations, regulations, employees skill
inventory list, human resource record data base are explicit source of organizational knowledge.
b- Process
Processes are organizational methods of how work to be done. Machine, data clerks
working time tasks, expertises knowledge and thinking to have performance output are
process.
c- Out put
Processed end result which is called production in closed system of organization.
d- Feed back
It is the information collected from users of organizations product which help to improve
organizations performance.
2- Open / unbounded/ system of organization and its parts
Open and closed systems of organizations both are formal organizations. Open /
unbounded/ system of organization is a formal organization which takes its input from
external environment. Examples are service rendering organizations; municipalities,
revenue and tax administration offices, vital event offices.
a- Inputs of open system organizations
The inputs of closed system organizations are seeking service. Compliant, grievance,
appeals of extra tax laid on tax payers are inputs to open system of organizations.
b- Decoders
Decoders in an open system of organizations are first stage data and information
acceptors to transfer the compliant, appeal, grievance or any service requiring
requisitions to decision makers.
Examples are data clerks in custom and revenue offices and registrars in universities.
c- Process in open system of organizations
Processes in this context are any procedures to reach on final solutions. The solutions
may be plea, decision or final agreement. Decision makers in this process decode the
reported information and think out of it to give solutions. Line managers, operational
managers, strategic leaders are the role players in this process stage. Stuff leaders
(advisors) , which have the power of idea but not power of decision are also the role
players for process stage.
d- Out put
e- It is the end result of processed data and information. Plea, decision, mutual
agreements are output to open system organizations.
Organizational equilibrum