Explain the difference between an open system and a closed system. Can you give an example of a closed system? How is the stakeholder approach related to the concept of open and closed systems?
The Correct Answer and Explanation is :
An open system is one that interacts with its environment by exchanging energy, information, and sometimes matter. It is not isolated and depends on its surroundings for inputs and outputs. Open systems are dynamic and responsive, continuously adapting to external changes. An example of an open system is a living organism, where food, oxygen, and water are taken in, and waste products like carbon dioxide are expelled.
In contrast, a closed system is isolated from its environment and does not exchange matter with it, although it can still exchange energy. A closed system operates under controlled conditions, where inputs and outputs of matter do not occur, but energy may still flow. An example of a closed system is a sealed container of gas; the gas cannot escape or enter, but it can still be heated or cooled, influencing its energy levels.
The stakeholder approach is related to open and closed systems in that it emphasizes the interaction between an organization and its stakeholders (e.g., customers, employees, investors, and the community). In an open system, stakeholders are part of the system’s environment, influencing and being influenced by the system’s processes. For instance, a company’s decisions and operations are shaped by the needs and feedback of its stakeholders, such as changes in market demand, consumer preferences, or regulatory requirements.
In a closed system, stakeholders are either excluded or their role is minimal, and the organization operates independently of external pressures. However, this is rare, as most organizations must engage with stakeholders to thrive. The open systems approach stresses collaboration and responsiveness to external and internal factors, whereas a closed system approach tends to focus on self-sufficiency and limited external interaction.
In summary, the main difference between open and closed systems is their level of interaction with the external environment. The stakeholder approach aligns with open systems because it emphasizes the importance of external influences on decision-making.