Introduction
The organizational structure of complex organizations varies from one organization to another depending on the nature of operations they undertake and the degree of interaction with the external environment. As a system comprising inflows and outflows, an organization can be either an open system or a closed system (Pinfield, 2013). An organization with an open system is the one that is responsive to changes in the external and internal environment because it allows inflows and outflows in equal measure.
According to Foster (2016), an organization with an open system has an intricate connection with the external environment and is responsive to external factors such as the economy, competition, regulations, politics, technology, and customers. In contrast, an organization with a closed system has more outflows than inflows because it is self-sufficient. Therefore, this research paper aims to compare open and closed systems of organizations using fictional public organizations and their respective goods, services, or activities, and organizational structure.
Fictional Public Organizations
American Care is an example of a fictitious public organization with an open system model of organization. American Care provides health and education insurance to children aged 18 years and below for families that live below the poverty line. The government established the organization when it realized that children from poor families do not have health and education insurance scheme that meets their unique needs. The organization is open because it has inflows and outflows of information and services. Moreover, the organization is responsive to the factors of the external environment such as regulations, politics, economy, and customers. As a public organization, American Care is a dependent organization because it is subject to the body that regulates insurance schemes.
As an example of a closed system, Space Exploration is a fictitious public organization in the United States that deals with the exploration of stars, planets, galaxies, and other unidentified flying objects in the space. The organization aims to enhance understanding of space by building capacity for astronomy and aeronautics. Analysis of the nature of the organization shows that it is a closed system because factors of the external environment such as the economy, people, and politics have no influence on its operations. Mainly, the organization has more outflows than inflows because it focuses on outputs with limited influence of the external environment. In essence, the organization is self-sufficient because the budget allocated to it by the government is adequate to run its operations annually.
Description of Goods, Services, or Activities
American Care provides insurance services to children from families that live below the poverty line. The organization has two forms of insurance services, namely, health insurance and education insurance. The service of health insurance allows children from poor families to access and afford quality healthcare services in public hospitals across the United States.
The service of education insurance enables children below the age of 18 years to access and afford education in public schools. The activities of American Care are to identify poor families, keep records, enroll their children in insurance schemes, liaise with public hospitals, and public schools in the provision of health and education, and reimburse funds. The overall objective of the insurance schemes is to strengthen health and social lives of children from humble backgrounds and achieve a state of equity in the United States.
Space Exploration provides tools and equipment used in the exploration of space and undertaking astronomical and aeronautical studies. The organization provides goods such as telescopes, rockets, robots, satellites, and communication gadgets amongst other tools and equipment. The organization offers aeronautical and astronomical services that help the government in protecting Americans against natural disasters such as hurricanes, heat waves, tornadoes, and flying objects. The activities of Space Exploration comprise exploration of space, astronomy, aeronautics, research, manufacture of tools and equipment, and training of the American Air Force. Overall, Space Exploration aims to improve the safety of Americans by enhancing the understanding of space and its bodies such as planets, galaxies, and stars.
Differences and Similarities
American Care and Space Exploration have differences based on their organizational structure. American Care is an open organization because it always interacts with its clients who are children and their parents. Moreover, American Care interacts with the government that funds its activities and operations. American Care also interacts with educational institutions and hospitals for they provide education services and health services to its clients. Fundamentally, the external environment has a significant impact on American Care for the government, clients, economy, and politics influence its operations and activities.
In contrast, Space exploration is a closed organization for it experiences limited influence from the external environment. According to Whitehurst (2015), factors in the external environment such as the economy, politics, regulations, technology, and customers do not influence the performance of an organization with a closed system. As Space Exploration receives funds from the government and is only answerable to it, the organization is self-sufficient. Moreover, as the organization specializes in tools, equipment, and services of space, its clients have no marked influence on these products.
However, American Care and Space Exploration have similarities in an organizational structure based on their organizational systems. In their internal environment, the government is a major driver because it determines the amounts of funds allocated to them, the nature of activities and operations, and laws and regulations that govern these organizations. Moreover, these organizations have the same management structure for both of them have a vertical structure, which allows the government to issue directives and policies to employees at the management and operational levels.
References
Foster, P. (2016). The open organization: A new era of leadership and organizational development. New York, NY: CRC Press.
Pinfield, L. (2013). The operation of internal labor markets: Staffing practices and vacancy chains. New York, NY: Springer Science.
Whitehurst, J. (2015). The open organization: Igniting passion and performance. Brighton, MA: Harvard Business Review Press.