Moreover, closed systems are generally static and do not provide room for multiple

alternatives for accomplishing the same result. conversely, open systems such as
the human body and modern organizations are more intricately dependent on their
environmentsenvironments.

Can departmental stores benifit from Open systems theory ?

Macys, an american behemoth which has been a common sight in every american mall is
planing on closing more than 100 stores in 2017 and lay of 10000 people. The
departmental chain has already closed about 40 stores in 2015. Profit margins have
been declining for several years. Other stores like sears, JC Penny and Khols are
near extinction. So what went wrong ? The reason could be attributed to several
facotrs such as online compition, weaker foot traffic, economic flux etc but the
crux of it all is the unwavering business model and standing by their principle of
"this is how we have done all along". Macy's management took notice and it's
undergoing huge restructuring to get back on track. It's time to take a leaf from
other hugely popular and successfull businesses like Facebook, Apple and google to
name a few. A different outlook and adopting organizational behaviour. Lets look at
a different management perspective such as systems theory that could benifit
complex organizations like macys to be more effective in producing intended
results.

In the organizational studies field, systems theory is one of the alternative

perspectives of classical managament theory. They are two views of management on
the opposite ends of the spectrum. Classical management which predominated through
1960's is focused around improving efficiency , productivity and control. It
defines a standard way of performing a large number of tasks within an
organization. This view focusses on looking at employees solely as a means to get
work fone. Systems approach on the other hand can be viewed as a counter point or a
reaction to classical management which looks at the organization as a whole and not
as a collection of seperate entities. It takes a departure from the control mindset
and looks at multitude ways of accomplishing various goals. It focusses on
developing an organization and the behaviours and motivations of employees.
classical management is slowly losing ground due to its short comings and more and
more organizations are incorporating alternative management styles such as system
construct or a hybrid model.

Systems are classified as Open and Closed systems. While one has a permeable
boundary and actively interacts with the environment the other is isolated and
closed off from its environment. Closed system is a theoritical concept and in
reality its hard to find a system thats is completly closed.

Open systems in the systems theory is a group of interacting parts (sub systems)
functioning as a whole. The interaction happens not only between the subsystems but
with the extrnal evnoirnment in which the system is situated. It's also
recognizable through distinguishable boundaries. A good example of an open system
are people. We hear, learn and interact with our environment. Some of the key
constructs in an open system model are inputs, throughputs, output and feedback. We
take in resources as as oxygen, food. Our bodies produce energy and gives out
carbon dioxide. Let's apply some of the principles of the systems theory and

An open system approach -

For long Macys has turned a blind eye to the shifting sands around due to it's
impervious courporate scructure. It believed that its business model that sustained
for decaded will weather the storm and emerge unruffled which unfortunately tuned
out to be not true.
The shopping landscape has forever changed. Large Brick and mortar based retailers
like Macys are becoming less relevant when a customer can buy the same product
online at the click of a tab sitting on your couch with a smartphone. Adopting the
open systems approach and being permiable to the external factors will aid the
organization significantly.

Macys is underway with a large scale restructring Thau, B (2015), Forbed, Retrieved
from www.forbed.com

Environmental forces such as customers and competitors can exert considerable

influence highlighting the essential relationship between an organization and its
environment as well as the importance of maintaining external inputs to achieve a
stable organization.
Previously the purchasing and marketing business units within Macy's worked
independently

These include continued improvement in our digital platforms, the rollout of our
new approach to fine jewelry and womens shoes, an increase in exclusive
merchandise and the refinement of our clearance and off-price strategy. We also
took a big step forward in rightsizing our physical footprint and restructuring our
entire organization.

Adopting the open system approach and constantly interacting and trying to adapt
rapidly to the changing environment will pull
Consumers have grown steadily more comfortable making the bulk of their purchases
online, and they've come to expect low prices, deep discounting, and a huge
selection of rapidly changing merchandiseall factors that undercut the classic,
slow-moving department store model.

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Reciprocate to changing customer needs

- In addition to its warm weather woes, Macys continues to lose business to

discounters such as T.J. Maxx as Millennials seem quite willing to wear fashions
from previous years that come at a fraction of the cost of the goods sold in
department stores. Macys opened its own off-price concept last September beginning
with three Macys Backstage locations in the New York metro area. Even though not
very profitable Macys it was step in the righ direction reacting to the market
needs.

-
 Also the other key tenet is the exchange with the enviromnet which is essential
for the health of the system. Environment are very unpredictable. It's extremely
hard to predict abuot compitiors, vendos, customers, future trends, economy etc. So
in an open system there a sub system known as boundary spanners are constantly
scanning the environment which will help the organization make better decisions and
evolve.

The goals in an open sysem model are contingent and negotiable. They adapt as the
organization progresses and situations develop

Equifinality : All ways of organizing are not equally effective.

Feedback which is very important. Negative feedback seeks to correct deviations and
realigns the organization with its

Macys is still bearing its weight of its pastgoals. Positive feedback amplifys the
orgaization current trajectory.

Entropy: The nature of any systems i that it tends to deteriorate and move toward
disorganization.
Balance

loosely coupled system