Why Was Open Systems Theory an Important Development in the Theory

question 9

Multiple Choice

Why was open systems theory an important development in the theory of organizations?

• A)It recognized the impact of the external environment on the organization.
• B)It recognized that there was more than "one best way" to organize the environment.
• C)It focused on formal relationships and how they structured patterns of work.
• D)It demonstrated that organizations should be perceived as static, stable structures.

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Definitions:

Payoff

The return or profit gained from an investment or decision.

Prisoner's Dilemma

A theoretical framework in game theory illustrating that two rational individuals might not cooperate, even if it appears that it is in their best interest to do so.

Deny the Crime

The act of declaring one's innocence in response to an accusation of criminal activity.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of all other players, leading to a situation where no participant can benefit by changing strategies while others keep theirs unchanged.