A small, privately-owned airline, Sandpiper Air, shares a small airport with its competitor, Aeromass, as well as a café. The customers, taxi drivers, and other townspeople frequently interact with Aeromass and the café in addition to Sandpiper Air. Sandpiper Air is an example of
Multiple Choice
administrative management.
a closed system.
a hierarchy.
an open system.
The Correct Answer and Explanation is:
Correct Answer: d. an open system
Explanation:
Sandpiper Air is an example of an open system. In management and organizational theory, systems are categorized as open or closed, depending on their interaction with the environment. An open system is one that continuously interacts with its environment — this includes receiving inputs (resources, information, feedback) and producing outputs (services, products, customer satisfaction) that are affected by and also affect other entities in its surroundings.
In the scenario provided, Sandpiper Air operates in an environment where it is not isolated. Instead, it:
- Shares the airport with a competitor, Aeromass.
- Shares space and interacts with a café.
- Serves and interacts with customers, taxi drivers, and townspeople.
These interactions clearly demonstrate that Sandpiper Air depends on and influences its environment — the essence of an open system. For example, customers may compare services between Sandpiper Air and Aeromass, the café may draw travelers from both airlines, and town dynamics (like local events or transportation availability) could impact the airline’s business operations.
In contrast, a closed system operates independently of its environment — it does not receive or respond to feedback and changes in external conditions. This is not the case here, as Sandpiper Air is influenced by and responsive to outside forces.
Let’s briefly examine the incorrect options:
- Administrative management refers to a management theory emphasizing formalized administrative structure, not organizational interaction.
- Hierarchy describes levels of authority within an organization, not its environmental interaction.
- Closed system, as explained, does not apply because Sandpiper Air interacts with its external environment.
Therefore, based on its regular exchanges with external stakeholders and organizations, Sandpiper Air functions as an open system, adapting to and engaging with its environment for survival and success.