HELAL UDDIN

Course Title:
Class Roll: ZH
Dept of Public Administration
University of Dhaka.
Cell : 01924202090, E

KATZ AND KAHN
Daniel Katz and Robert L. Kahn developed a framework for open
systems theory that encompasses: (1) energic inputs into the
organizations; (2) the transformation of those inputs within the
system; (3) energic outputs;
external influences, include familiar resources like employees, raw
materials, and capital. However, they also include intangible external
influences, such as status, recognition, satisfaction, or other personal
rewards.
The transformation process involves using energies, or inputs, to (in
the business context) create products or services. Energic outputs are
simply the products or services that are distributed to consumers.
Finally, recycling refers to the fact that ou
back into the organization. For instance, when a company sells a
toaster the revenue becomes an input into the organization that is
used, for example, to pay workers or buy materials.
In addition to identifying the four phases
Kahn cataloged several other organizational characteristics that
support the opensystems theory and have implications for the design
of successful organizations. For example, they recognized the
universal law of entropy, which
toward disorganization or death. However, an open system can
continue to thrive by importing more energy from the environment
than it expends, thus achieving negative entropy. For example, a
failing company might be able t
chief executive who improves the way the company transforms
energic inputs.
Another characteristic of organizations is dynamic homeostasis,
which infers that all successful organizations must be able to achieve
HELAL UDDIN MUHAMMAD AL
Course Title: SYSTEM ANALYSIS
Class Roll: ZH-26, 4
th
Batch, 4
th
Semester
Dept of Public Administration
University of Dhaka.
01924202090, E-mail : helal_pad_du@
KATZ AND KAHN
Daniel Katz and Robert L. Kahn developed a framework for open
systems theory that encompasses: (1) energic inputs into the
organizations; (2) the transformation of those inputs within the
system; (3) energic outputs; and (4) recycling. Energic inputs, or
external influences, include familiar resources like employees, raw
materials, and capital. However, they also include intangible external
influences, such as status, recognition, satisfaction, or other personal
The transformation process involves using energies, or inputs, to (in
the business context) create products or services. Energic outputs are
simply the products or services that are distributed to consumers.
Finally, recycling refers to the fact that outputs are indirectly recycled
back into the organization. For instance, when a company sells a
toaster the revenue becomes an input into the organization that is
used, for example, to pay workers or buy materials.
In addition to identifying the four phases of an open system, Katz and
Kahn cataloged several other organizational characteristics that
support the opensystems theory and have implications for the design
of successful organizations. For example, they recognized the
universal law of entropy, which holds that all organizations move
toward disorganization or death. However, an open system can
continue to thrive by importing more energy from the environment
than it expends, thus achieving negative entropy. For example, a
failing company might be able to revitalize itself by bringing in a new
chief executive who improves the way the company transforms
Another characteristic of organizations is dynamic homeostasis,
which infers that all successful organizations must be able to achieve
MUHAMMAD AL-HELAL
@yahoo.com
Daniel Katz and Robert L. Kahn developed a framework for open-
systems theory that encompasses: (1) energic inputs into the
organizations; (2) the transformation of those inputs within the
and (4) recycling. Energic inputs, or
external influences, include familiar resources like employees, raw
materials, and capital. However, they also include intangible external
influences, such as status, recognition, satisfaction, or other personal
The transformation process involves using energies, or inputs, to (in
the business context) create products or services. Energic outputs are
simply the products or services that are distributed to consumers.
tputs are indirectly recycled
back into the organization. For instance, when a company sells a
toaster the revenue becomes an input into the organization that is
of an open system, Katz and
Kahn cataloged several other organizational characteristics that
support the opensystems theory and have implications for the design
of successful organizations. For example, they recognized the
holds that all organizations move
toward disorganization or death. However, an open system can
continue to thrive by importing more energy from the environment
than it expends, thus achieving negative entropy. For example, a
o revitalize itself by bringing in a new
chief executive who improves the way the company transforms
Another characteristic of organizations is dynamic homeostasis,
which infers that all successful organizations must be able to achieve

balance between subsystems. For example, a sales department might
grow very quickly if it is very successful or demand for its products
jumps. But if the manufacturing arm of the company is unable to
keep pace with sales activity, the entire organization could break
down. Thus, subgroups must maintain a rough state of balance as
they adapt to external influences.
Katz and Kahn also characterize open systems by equifiniality. This
concept suggests that organizations can reach the same final state by
a number of different paths. In fact, the course is not fixed and may
develop organically as both internal and external influences
intervene.
SUBSYSTEMS
Open-systems theory assumes that all large organizations are
comprised of multiple subsystems, each of which receives inputs from
other subsystems and turns them into outputs for use by other
subsystems. The subsystems are not necessarily represented by
departments in an organization, but might instead resemble patterns
of activity.
An important distinction between open-systems theory and
traditional organization theory is that the former assumes a
subsystem hierarchy, meaning that not all of the subsystems are
equally essential. Furthermore, a failure in one subsystem will not
necessarily thwart the entire system. By contrast, traditional
mechanistic theories imply that a malfunction in any part of a system
would have an equally quashing effect. This could be likened to
pulling one cotter pin from the wheel of a go-cart; doing so would
make the entire vehicle inoperable.
At least five subsystems identified by Katz and Kahn are important to
the success of any business organization. Each of these subsystems
may also be comprised of subsystems. For example, production
subsystems are the components that transform inputs into outputs.
In a manufacturing company this subsystem would be represented by
activities related to production. In most business organizations, all
other subsystems are built around the production subsystem.

Maintenance subsystems maintain the social involvement of
employees in an organization. Activities in this group include
providing benefits and compensations that motivate workers,
creating favorable work conditions, empowering employees, and
fulfilling other employee needs.
Adaptive subsystems serve to gather information about problems and
opportunities in the environment and then respond with innovations
that allow the organization to adapt. A firm's research lab or a
product development department would both be part of an adaptive
subsystem.
Supportive subsystems perform acquisition and distribution
functions within an organization. Acquisition activities include
securing resources, such as employees and raw materials, from the
external environment. Human resources and purchasing divisions are
typically included in this group. Distribution, or disposal, activities
encompass efforts to transfer the product or service outside of the
organization. Supportive subsystems of this type include sales and
marketing divisions, public relations departments, and lobbying
efforts.
Managerial subsystems direct the activities of other subsystems in the
organization. These managerial functions set goals and policies,
allocate resources, settle disputes, and generally work to facilitate the
efficiency of the organization.







































Katz and Kahn (1978) elaborate Parson's system and describe
organizations as having five subsystems:
1. Production : (throughput, transfromation of materials)
2. Supportive: (garner input resources, deal with output, gain
legitimacy)
3. Maintenance: (recruitement, socialization, training, preserving
the system, rewards)
4. Adaptive: (sense environmental changes and determine
meaning for org, strategy -- product research, market research,
long-range planning, etc.)
5. Managerial: (control, coordinate and direct subsystems,
develop policies, -- use both regulatory mechanisms (feedback)
and authority structures decision making and implementation).
They also see three main functions of the supportive subsystems
-- procurement of materials and resources, disposal and
marketing of the product, and aninstitutional subsystem (ala
Parsons) the garners legitimacy and support from the
environment.
A system
is a set of interacting units that endures through
time within an established boundary by responding and
adjusting to change pressures from the environment to
achieve and maintain goal states
Four eEements of Systems Theory
Input = Incoming information identifying problem (loss of equilibrium with interpenetrating
systems within the environment)
Throughput = Processing of information
Output = Response from organization; outgoing messages to restore equilibrium; creates new
equilibrium. Proactive or reactive
Feedback = Response from environment; indication if problem has been solved. The concept of
feedback is linked to cybernetics:Communication that helps a source control a receiver's behavior.
This can be understood through the analogy of a furnace thermostat
- rooted in environmental effects
- initiated by decision-making about the environment (setting the room temperature)
- responsive to environment (changing the setting based on inside or outside temperatures)






























Open v/ Closed Systems
Closed Systems
- hard/fixed/impermeable boundaries
- can't exchange matter, energy or information w/ environments
- organizations seek little interaction or accommodation with environment
Open Systems
- permeable boundaries
- can/do exchange via inputs & throughputs
- organization attempts interaction and accomodation with environment
Continuum (not either/o)
Closed v/ Open
Internal orientation / External orientation
Self-contained / Part of wide environment
Self-sufficient / Dependent on environment
Internal accountability / Public accountability
Functional communication / Persuasive communication
Efficient / Innovation
Elitist / Egalitarian
Conservative / Adaptive
Centralized /Autonomous
Self-interest /Responsibility
Power / Conflict resolution
Seek control / Seek understanding
People as customers / People as publics
Authoritarian management / Interpersonal management
Workers do as told / Workers cooperate toward goal
Stable environment / Turbulent environment
Simple expectations / Expanding expectations
Few boundary spanners / Increasing boundary spanners

Open Closed System
Systems interact with their environment to achieve their targets. Things that are not part of the
system are environmental elements for the system. Depending upon the interaction with the
environment, systems can be divided into two categories, open and closed.
Open systems: Systems that interact with their environment. Practically most of the systems are
open systems. An open system has many interfaces with its environment. It can also adapt to
changing environmental conditions. It can receive inputs from, and delivers output to the outside
of system. An information system is an example of this category.
Closed systems:Systems that don't interact with their environment. Closed systems exist in
concept only.






















I Classical and humanistic theories prescribe organizational behavior,
organizational structure or managerial practice (prediction and control).
MACHINE
I Systems theory provides an analytical framework for viewing an
organization in general (description and explanation). ORGANISM
I Laws that govern biological open systems can be applied to systems of
any form.
I Open-Systems Theory Principles
I Parts that make up the system are interrelated.
I Health of overall system is contingent on subsystem functioning.
I Open systems import and export material from and to the
environment.
I Permeable boundaries (materials can pass through)
I Relative openness (system can regulate permeability)
I Second Principle of Thermodynamics (ENTROPY)
I Entropy must increase to a maximum
I Negentropy increases growth and a state of survival
I Synergy (extra energy causes nonsummativity--whole is greater
than sum of parts)
I Equifinality vs. one best way.
I Input-Throughput-Output
I Inputs
I Maintenance Inputs (energic imports that sustain system)
I Production Inputs (energic imports which are processed to
yield a productive outcome)
I Throughput (System parts transform the material or energy)
I Output (System returns product to the environment)
I TRANSFORMATION MODEL (input is transformed by system)
I Feedback and Dynamic Homeostasis
I Positive Feedback - move from status quo
I Negative Feedback - return to status quo
I Dynamic Homeostasis - balance of energy exchange
I Equivocality and Requisite Variety (Karl Weick)
I Equivocality (uncertainty and ambiguity)
I Requisite Variety (complex inputs must be addressed with
complex processes)