An
organization can also be classified on the basis of the type of system it
operates. A system consists of three basic components: Input, Process, and
Output. These components are independent, yet interdependent and they work in
an organized manner to achieve the objective of the system. A system could be:
Simple or Complex.
A simple system consists of less number of elements, which
interact with each other in a simple and uncomplicated manner. A restaurant is
an example of a simple system, wherein, the customer places an order, the
waiter conveys the order to the Kitchen, the chefs prepare the food, and the
food is then served to the customer.
Components in a complex system have a high level of interaction
with each other. The manufacturing division of a car manufacturing organization
is an example of a complex system, because of the high level of interdependence
between multiple processes and the high degree of complexity involved in these components.
Open or Closed.
An open system is influenced by the environment and interacts with
it. The automobile industry is an example of an open system as each transaction
and process that takes place is influenced by several external factors like the
market, customer needs, and demand.
A closed system has minimal interaction with its environment and
is not heavily influenced by the changes in the environment.
Stable or Dynamic
A system that undergoes very little change over time is a stable
system. For example an organization that produces construction material such as
cement and bricks represent a simple and stable system.
A dynamic system undergoes rapid and constant change over time.
For example, an organization producing cosmetics will operate depending upon market
demand and supply fluctuations, and thus would have to keep changing over time.
Adaptive or Non-Adaptive:
An adaptive system is one that is able to change in response to
the changes in the environment. For example, fashion and cosmetic industry is highly
dependent on external stimuli; the industry has to adapt in response to the
ongoing changes in colors or trends as experienced across the world.
A non-adaptive system is one that is not able to change easily in
response to external stimuli. This could lead to a loss of hold in the market.
Permanent or Temporary.
If a system exists for a relatively long period of time, then it
is a permanent system. These systems have their own established sets of
processes through which services are rendered. Typically, these systems do not
change their processes based on individual, customer-specific requirements.
Banking institutions or hospitals are examples of permanent systems.
A temporary system exists for a relatively short period of time
because their processes are highly customized to suit individual sets of
requirements. Event management, auction sales or farming of a particular crop
are examples of temporary systems as they are driven by short-term factors.
