Final answer:
An organization as an open system means it engages in the exchange of energy and/or matter with its surroundings and is influenced by external factors. This concept is governed by the laws of thermodynamics and differs from a closed system, which is isolated from its environment.
Step-by-step explanation:
To say an organization is an open system means it exchanges energy and/or matter with its surroundings. This contrasts with a closed system, which is isolated and has no such exchange. For example, biological organisms are open systems as they engage in energy transfer by consuming nutrients and releasing energy to the environment. In business and organizational contexts, recognizing that an organization is an open system implies it interacts with its external environment, which may include markets, customers, and even global trends.
Some key properties of open systems include the exchange of energy and mass with the environment, the non-achievement of equilibrium, the potential to reach a steady state where energy input equals output, and the capacity for steady states to change. Moreover, in these systems, endergonic reactions can be energetically favorable.
The laws of thermodynamics, particularly the First Law, govern the transfer of energy in such systems. These principles are crucial in understanding organizations as they provide a framework for how entities interact with their environments, adapt, and evolve based on the energy and resources they exchange.