1. Sub system: - System is composed of different subsystems which are interrelated and interdependent. Organization is also a system consisting of input, process, output and feedback.
2. Open system: - Organization is an open system which interacts with external environment. Organization gets input from environment and provides output to the environment. A regular interaction takes place between organization and environment.
3. Closed system: - Closed system is that system which doesn’t interact with external environment.
4. Synergy: - Two or more subsystems working together produce more than the total of what they produce working alone. Synergy suggests that organizational units or subsystem may often be more successful working together than working alone.
5. Entropy: - It is a normal process that leads to system decline. When an organization does not monitor feedback from its environment and make appropriate adjustment, it may fail.
6. System boundary: - Every system has its own boundary which separates it from its environment. In a closed system, boundary is rigid but in open system boundary is flexible.
7. Flow of information: - Information is vital to support the functioning of system. Information are converted into opportunities and action.
8. Feedback: - Feedback is the response from the environment. It is the suggestion and advice of environment to improve quality work of organization.
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