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changed to outside observers is internally in a state of flux, in a state of dynamic equi-
librium.
Another significant aspect of an open system in a state of dynamic equilibrium is that
it relies on feedback mechanisms to remain in that state. Based on Boulding's system
hierarchy, which classifies the system according to its complexity, it is not surprising
to find that properties exhibited by systems lower in the hierarchy are also found in
those higher in the hierarchy because the latter are built on the former (Boulding, 1956).
Therefore, a system that is classified as an open system would possess all the qualities
that belong to the system at a cybernetic (or self-regulated systems) level. The behaviour
of open systems is, to a great extent, determined by the feedback mechanisms present
in them. There are two types of feedback that operate in most systems, namely negative
and positive. Negative feedback reduces or eliminates the system's deviation from a
given norm, so a negative feedback mechanism tends to neutralise the effect of disturb-
ance from the environment so the system can maintain its normal course of operation.
On the other hand, positive feedback amplifies or accentuates change, which leads to a
continuous divergence from the starting state. Positive feedback works together with
negative feedback in living systems (e.g. in organisms, and organisations too, both types
of feedback are present during growth even though the net result is positive). However,
the operation of positive feedback alone will eventually result in the system's disinteg-
ration or collapse. Negative feedback plays the key role in the system's ability to achieve
a steady state, or homeostasis.
Organisational life cycle: growth, maturity, decline and death
Organisations exhibit a similar, though not identical, life-cycle pattern of changes to
living organisms. They grow, mature, decline, and eventually pass away. However,
there are some differences that require attention. Firstly, the duration of each stage is
less precise than that of typical organisms. In human beings, physiological growth
reaches its climax at about the age of 25 whereas the growth phase of an organisation
can vary to a great extent. Secondly, the mechanics upon which changes are based are
different. Living organisms are typical biological machines with their own physics and
chemistry, while organisations are not. According to Boulding (1956), organisations are
at a higher level of complexity than living organisms.
Genetic factors and available resources both influence growth in organisms. Organisms
develop from fertilisation to maturity through a programmed or predetermined genetic
code, a process termed 'ontogenic development' (Ayres, 1994). Apart from this, it is also
necessary that the organism acquire sufficient necessary resources from the environment
to sustain its life and remain viable. Although the concept of ontogenic development
may not be directly applicable to the growth of real organisations due to the difference
in basic constituents and mechanisms (i.e. biological vs. socio-technical), there is a sim-
ilar idea upon which the description of growth in organisations can be based. Greiner
(1972) proposed a growth model that explained the growth in business organisations as
a predetermined series of evolution and revolution (Figure 11.2). In order to grow, the
organisation is supposed to pass through a series of identifiable phases or stages of de-
velopment and crisis, which is similar, to some degree, to the concept of ontogenic de-
velopment. Thus, it is interesting to see that systems at different levels of complexity
(Boulding, 1956) can exhibit a similar pattern of change. This is also consistent with
General System Theory, which attempts to unify the bodies of knowledge in various
disciplines (Bertalanffy, 1973).
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