What is closed and open models of organizations?
The traditional thinkers believe in the closed model of organization. These models of organization are bureaucratic, hierarchical, formal, rational and mechanistic. These belong to bureaucratic theory, scientific management theory and administrative management theory. The bureaucratic theory developed by Max Weber, it believe that every organization has a structure of activities which is directed towards the achievement of certain objectives.
To maximize efficiency and productivity every organization develop a system of specialization and a set of systematic rules and procedures. The scientific management theory formulated by F.W. Taylor, who advocate the adoption of scientific methods in the field of industrial work, to promote industrial efficiency and economy.
The administrative management theory mainly developed by Henri Fayol who primarily concern with formal organizational structure. The theory assumes that there are certain fundamental principles on the basis of which an organization can be established to achieve a specific goal.
Like the closed model, the open model goes by many names, collegial, free market, natural, informal, competitive and organic are prominent. In the open system model there are three streams or schools. First the human relations school, second, the newer field of organization development and third, the literature that views the organization as a unit functioning in its environment.