This question is composed of two parts; be sure to answer both. First, compare and contrast open and closed systems. Explain why almost all businesses today have an open system. Next, suppose you manage a business in which you hire young musicians to give lessons to school children. In what ways will you need your business to be open?

What will be an ideal response?


An open system continually interacts with its environment. A closed system has little interaction with its environment; that is, it receives very little feedback from the outside. The classical management viewpoint often considered an organization a closed system. So does the management science perspective, which simplifies organizations for purposes of analysis. However, any organization that ignores feedback from the environment opens itself up to possibly spectacular failures. For this reason, almost all organizations today are open systems. Open systems have the potential to produce synergy, which is the idea that two or more forces combined create an effect that is greater than the sum of their individual effects.

In your music business, your system will be open in that you will be continually interacting with your environment. You will be talking to parents whose children want to learn how to play a musical instrument, and you will be getting feedback from them to ensure that they are satisfied with the instruction their children are receiving. You will likely have a social media presence (Facebook, Twitter) to help you market your business and continue getting new students. You'll network with your employees to continue finding new employees who are musically talented and good teachers.

Business

You might also like to view...

Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of August, Karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours. Actual results for the period were manufacturing overhead costs of $290,000 and 75,000 machine-hours. As a result, Karvel would have:

A. applied an amount of overhead to Work in Process that was equal to the actual amount of overhead. B. found it necessary to recalculate the predetermined overhead rate. C. applied more overhead to Work in Process than the actual amount of overhead cost for the year. D. applied less overhead to Work in Process than the actual amount of overhead cost for the year.

Business

Ricardo's sales manager just informed his sales team that all sales in January will earn an extra 5 percent commission. The team gets right to work, being motivated by a(n)

A. extrinsic reward. B. physiological need. C. high need for power. D. intrinsic reward. E. hygiene factor.

Business

Which of the following transactions is a significant noncash investing and financing activity?

a. Land is purchased for cash. b. Bonds are issued for cash. c. Cash equivalents are purchased. d. Equipment is acquired by issuing a long-term note.

Business

Which of the following does not result in the dissolution of a partnership?

A) Death of a partner B) Admission of a new partner C) Withdrawal of a partner D) Sale of partnership assets

Business