Examples Of Open System Management

Open System is a system that aims for growth by interacting with the environment by exchanging energy, materials, information and resources. Open system takes energy, information and resources to function. It can be understood with the example of human being who takes energy while eating. Open systems have open boundaries that allow feedback exchanges from inside and outside the business. As the open system approach spread among organisational theorists, manager began incorporating these views into practice. Open system approach serves as a model of business activity i.e business as a process of transforming inputs to outputs while realizing that inputs are taken from external environment and outputs are placed into the same environment. The

Company is selling life insurance and pension products. As the company is into service sector so its business is largely depends upon customer satisfaction and their faith on the company. Being into life insurance Sector, company takes the premium from the customer and in turn it is liable to settle the claims. As the business does not have any control on the environmental factors, so company has set underwriting guidelines to issue policies based upon its predictions and passed experience. In the organisation, open System in the business is in place and systems are divided into subsystems which are Economy, Technology, Personnel and Legal sector. The benefit of having subsystems in place is that in case of and failure in the technology, it will not impact any personnel, and employees can go for other alternate ways like using offline system or Manual system etc. and the customer service will not have any impact. Organisation has a structure in a way to resolve customers issues effectively. Company has a process to take every customer’s feedback during their visits to the branch office which enables leadership and management team to work continuously for the betterment and improvement. When there are more number of feedbacks, results can be more accurate and products and services can be introduced as per requirement of the customers. Customer service officers at the branch offices take customers feedback through a pre-designed customer feedback form and log it into the system. Company is using its employees, equipment, funds and material as its input and designing new products and providing services to the customers which is considered its output. Product team sitting at head office keep on designing new products and make changes in the existing products after doing through research in the external market. External environment changes and