MOS Topic 2 - Natural and Open systems perspective

Explain natural systems perspective in a sentence

Focus on internal cohesion and survival, using culture and social relationships to keep the organization together.

What analogy is commonly used to describe the natural systems perspective, and why?

Human body

All parts coordinate and work together despite having different roles

What company is an example of the natural systems perspective, and why?

Netflix

Emphasizes trust, transparency and intrinsic values values over rigid processes, aiming for cultural fit and long-term adaptability

What does netflix prioritize instead of bureacracy?

Trust - they assume employees are responsible adults who can manage their work without micromanagement

What does the value “People over Process” mean at Netflix?

It means prioritizing employee well-being and human needs over strict procedures, trusting that cared-for employees will care for the company.

Why is "bravery in leadership" a part of Netflix’s value system?

It encourages leaders to take bold, sometimes uncomfortable positions, which promotes openness and cultural strength.

What is the purpose of Netflix’s transparent feedback system?

To foster open communication and continuous alignment with organizational values and performance.

What does “evolutionary role alignment” mean at Netflix?

Roles and responsibilities must evolve with business needs — employees are expected to adapt as required.

How does the Natural Systems Perspective critique purely rational systems?

It argues that managing only by technical rationality is irrational, as it ignores human and social behavior.

Why can't organizations be entirely controlled, according to the Natural Systems view?

Because human behavior introduces non-rational elements, making strict control unrealistic and counterproductive.

What does the Rational System perspective emphasize about organizations?

What distinguishes organizations from other social groups.

What does the Natural System perspective emphasize about organizations?

That organizations are social groups.

How are organizations viewed in the Rational System perspective?

As consciously designed.

How are organizations viewed in the Natural System perspective?

As evolving ‘naturally’.

What characterizes decision-making in the Rational System perspective?

Calculation.

What characterizes decision-making in the Natural System perspective?

Emergence.

What is the goal of an organization in the Rational System perspective?

A means to specified ends.

What is the goal of an organization in the Natural System perspective?

Survival.

What type of structure is emphasized in the Rational System perspective?

Formal organization: rules and roles.

What type of structure is emphasized in the Natural System perspective?

Informal organization: complementary.

What is the Human Relations Movement and what does it emphasize?

It's a study of how human and social factors affect work, emphasizing that organizations are not just economic tools but rely on leadership and group dynamics to function effectively.

What common goal do Scientific Management and the Human Relations Movement share?

The pursuit of efficiency.

How does Scientific Management treat social factors?

It aims to eliminate social factors.

How does the Human Relations Movement approach social factors?

It focuses on managing social factors.

What is the main focus of Scientific Management?

Emphasis on process alone.

How does the Human Relations Movement balance its focus?

It emphasizes process, balanced with human factors.

How are workers viewed under Scientific Management?

As machines.

How are workers viewed in the Human Relations Movement?

As human beings.

Give an example case study for human relations movement

Hawthorne Studies by Elton Mayo

What was the initial aim of the Hawthorne Studies?

To find empirical evidence for scientific management.

What were the three studies conducted in the Hawthorne studies?

Illumination study
Relay Assembly Test Room study
Bank Wiring Observation room study

What did the Illumination Study investigate?

It examined how variations in lighting affected productivity levels.

What was the outcome of the Illumination Study?

No direct cause-and-effect relationship was found between lighting and productivity. It concluded there was something else making workers productive.

What was the focus of the Relay Assembly Test Room study?

It looked at whether the frequency and length of breaks affected worker productivity.

What was the outcome of the Relay Assembly Test Room study?

Workers' productivity increased regardless of the length or frequency of breaks.

What did the Bank Wiring Observation Room study find?

It revealed that informal group norms and rules were more influential than financial incentives.

What is "soldiering" as identified in the Bank Wiring Observation Room study?

The practice of limiting output intentionally.

What is a key conclusion from the Hawthorne Studies?

Workers are not solely motivated by money.

What was found to be important in determining employee behavior?

Individual attitudes and values play a key role.

What is the role of effective supervision according to the Hawthorne Studies?

It is important for maintaining job satisfaction and productivity.

What does the Hawthorne Studies suggest about informal groups?

Informal groups are essential for work organizations, and it is more effective to communicate through these groups.

What criticisms were directed at the Hawthorne Studies?

They lacked analytical rigor, had manipulative methods, and were influenced by preconceived ideas (Mayo’s anti-scientific management bias).

What was the lasting legacy of the Hawthorne Studies?

They opened organizational studies to psychology and social psychology, and helped develop the fields of organizational behavior and development.

What is Barnard's theory of management focused on?

It aims to create an analytical theory of management and organizations.

What defines formal organizations according to Barnard?

A system of consciously coordinated activities or forces of two or more persons, involving cooperation that is conscious, deliberate, and purposeful.

How does Barnard's theory unite different perspectives?

It attempts to combine both the rational and natural perspectives of organizations.

What is the Acceptance Theory of Authority?

Authority depends on whether people accept you as a leader, not just on your formal title. Influence requires validation from those subject to it.

What are the three organization principles that arose from his discoveries?

Accceptance theory of authority
Organizations are inherently unstable, and must continuously renew its order

overriding objective of organizations is survival

What does Barnard say about organizational instability?

Organizations are inherently unstable and must continually renew their order in response to changing factors.

Why does Barnard argue that trying to predict organizational behavior is a failure?

Predicting stability in organizations is impossible; organizations must respond to their inherent instabilities.

What is the overriding objective of organizations according to Barnard?

The survival of the organization, much like how humans work to ensure their own survival.

What is institutionalization in the context of organizational theory?

It is the process by which an organization develops a distinctive character and structure.

How does institutionalization develop within an organization?

It develops from employee commitment to the organization, where employees feel they are in a relationship with the organization.

What is the role of shared commitments and values in institutional theory?

Shared commitments and values are essential to forming a distinctive organizational character.

What is the precursor to an organization's values?

Employee commitment and shared values are the precursor to the organization's values.

What is the focus of the natural systems perspective?

The natural systems perspective focuses on people, emphasizing the ability of individuals to work together with shared values and systems.

What company is an example of open systems perspectives, and why?

Amazon is an open system because it is highly adaptable, responsive to market changes, and creates its own technological advancements.

What is the main emphasis of open systems perspectives?

The emphasis is on adaptability and interaction with the external environment to respond to changes.

How does Amazon pivot in response to the external environment?

Amazon looks for opportunities and adapts based on its capabilities and resources, adjusting its strategy as needed.

What is an example of how Amazon has interacted with the external environment?

Amazon Web Services (AWS) was created after Amazon recognized the need for cloud infrastructure within the tech industry.

What is Amazon’s competitive advantage?

Amazon’s competitive advantage lies in its ability to sense opportunities and be the first in the market to fill gaps, rather than just in its products or capabilities.

What are the key features of an open system?

Ability to interact with the environment
Clear processes about creating a transformational process within its organizatino

feedback mechanism

interdependence with other systems

adaptability and change

complexity and uncertainty management

How are organizations described in the context of open systems?

Organizations are more complex and are loosely coupled with several systems, such as Amazon's diverse product range.

What is the relationship between organizations and their wider environment in open systems?

Organizations depend on information flow and have soft boundaries, meaning they can easily adapt and evolve in response to changes.

What does Contingency Theory support in relation to open systems?

Contingency theory supports the idea that organizations must align themselves with their wider environment and continuously adapt to meet organizational and market requirements.

How does Contingency Theory differ from rational systems?

Contingency theory is more flexible and adaptive, unlike rational systems which often focus on efficiency and predictability.

What is a key criticism of contingency theory and the open systems perspective?

They are often seen as too vague and over-generalized, as they provide no clear boundaries for how a company can pivot or adapt.

What is a defining question regarding when an organization qualifies as an open system?

The debate is whether an organization is considered an open system when it has one of the features of an open system or when it has all the features.