Systems Theory describes organizations as:

Systems Theory describes organizations as:

• A. Isolated units with no interaction
• B. A managed system that changes inputs into outputs
• C. A collection of independent individuals
• D. Entirely determined by external forces

Answer: (B)

Systems theory views organizations as open systems: they receive inputs from the environment, transform those inputs through internal processes, and produce outputs. This approach emphasizes interactions, boundaries, subsystems, and feedback that keep the organization adapting to changes both inside and outside. Because of this, describing an organization as a single managed system that converts inputs into outputs captures the essential idea of ongoing transformation and adjustment. The other descriptions imply isolation, a loose collection of people, or complete control by external forces, which overlook how interdependent parts and environmental feedback shape what the organization does.

Systems theory views organizations as open systems: they receive inputs from the environment, transform those inputs through internal processes, and produce outputs. This approach emphasizes interactions, boundaries, subsystems, and feedback that keep the organization adapting to changes both inside and outside. Because of this, describing an organization as a single managed system that converts inputs into outputs captures the essential idea of ongoing transformation and adjustment. The other descriptions imply isolation, a loose collection of people, or complete control by external forces, which overlook how interdependent parts and environmental feedback shape what the organization does.