3(f)-Open vs Closed Model-Nicholas Henry

Models of Organisation: Closed and Open Models

Read this article to learn about the closed and open models of an organization:

Models of Organisation:

1. Closed Model:

Some organisations fall in the group category of closed model. The closed model includes 

• bureaucratic,
•  hierarchical, 
• formal, 
• rational and 
• mechanistic.

Henry has pointed out that the closed model organisations have the following salient features:

(1) It is believed that in closed models organisation’s internal functioning or conditions do not frequently and rapidly change. In these models mainly routine works are- found and internal conditions are stable.

(2) There is some sort of specialisation but it is found in the centre of organisation.

(3) To transact a job certain means are required and these means are emphasized.

(4) Conflicts may (in regard to many matters) crop up at any level, but these are settled at the central level. This means that there is some sort of centralization.

(5) Responsibility of each employee is clearly stated and it is also emphasized that they cannot avoid their responsibility.

(6) An important characteristic of closed model organisations is there is hierarchical system of organisation and each stage is headed by an officer who enjoys some authority. The hierarchy looks like a pyramid. In the organisations that fall under the category of closed model the hierarchical character resembles the Weberian bureaucracy.

(7) In the closed model organisations only few persons have monopolised the management knowledge and particularly the chief executive knows everything.

(8) The interaction among the people in such organisation is vertical and never horizontal.

(9) In such organisation it is found that the workers are loyal to the organisation and one man.

(10) An interesting feature is in every sphere of the organisation there reigns obedience, command and loyalty.

Weber’s theory of bureaucracy is the best and prominent closed model and about this it has been said that ii is an ideal type. The German sociologist elaborately analysed the bureaucratic theory in great detail and since then it has been an integral part of public administration and executive organ of government.

• Nicholas Henry says that the Weberian bureaucracy is characterised by “Prot­estant Work’ ethic” and hierarchy.
•  Everywhere of the bureaucratic system there is to be found these features. 
• The Weberian bureaucracy also propagates utmost reliance on rules and regulations. 
• In such a system rules and regulations dominate the human face. 
• That is humanity or humanism is subordinate to rules and regulations. 
• In this system employees always emphasise the career-building in service life.
• Scientific Management theory of public administration is also a part of closed model. 
• Henry says: “Scientific management refers to what is more popularly known as time and motion studies”. 
• At the beginning of the twentieth century some famous administrationists propagated the basic ideas of this theory. 
• It is said that the business and engineering schools and factories were the home of this theory.

• The central aspect of this theory is human beings are regarded as “being adjuncts of machine”. 
• The main purpose of this theory is to make men efficient with the help of machine. 
• The most important members of the scientific management school are Frederick Taylor and Gilbreths. 
• In 1911 Taylor published his Principles of Scientific Management. 
• Machine is the central idea of the scientific management and likes and dislikes of workers have no value in management. 
• That is why Henry has said that “scientific management has a distasteful aura”. It is, however, an important theory of closed model.
• The administrative management constitutes a part of closed model. 
• The main architects of this theory are Luther Gulick and Lyndell Urwick. 
• They combinedly published Papers on the Science of Administration. 
• This paper throws sufficient light on the various aspects of public administration or administrative management. 
• Gulick, Lyndall and their large number of followers wanted to establish a principle that the public administration must be based on certain scientific principles and if it is not done the fruits of organisation will remain a far cry.
• According to them management is management and everywhere it is correct. 
• In order to harvest highest amount of fruits the public administration must be scientifically managed. 
• The authors of the administrative management introduced the famous seven principles known as PODSCORB.
• There are few similarities between bureaucratic theory of management and administrative management theory. 
• In the opinion of Henry “both bureaucratic theory and administrative management are primarily concerned with the optimal organisation of administrators rather than production workers”.
• The most interesting aspect of the closed model of public administration is that this model thinks that the organisation or management is separate from the rest of the world. 
• But in real situation this is not true at all. 
• Particularly the bureaucratic theory, though highly popular in public administration, is condemned for its approach to the various aspects of public administration and the role of the bureaucrats. 
• In the present-day world the public administration can never be separated from the environment. 
• Experts are of opinion that bureaucracy is trying to amend its behavior and attitude to outside world.

2. Open Model:

• Opposite to the closed model of organisation is the open model. 
• It is known by different names such as collegial model, competitive model, or free market model. 
• The very names clearly indicate that openness is its central theme and features.
•  There are some theories which fall in the name of open model and these are human relations, organisation development etc.

The principal features of the open model (hereafter only OM) can be stated in the following way:

(1) The organisation of OM are of fluidic structure or nature. It is like an amoeba.

(2) In OM organisations objectives or purposes always get priority, means are not so important.

(3) In OM organisations there are very little that can be called stable. Most of the things are in fluid situation. As a result, the organisation is capable of adjusting with the changes. Orthodox attitude has practi­cally no place in open models.

(4) An important character of such models is specialized knowledge is not confined within limited circle or it is not the property of a particular person. The specialized knowledge is spread among all sections and its purpose is to augment general improvement.

(5) In OM organisations, knowledge is spread among all sections of management so that the whole body can get benefit.

(6) A person is respected not for his status in the organisation but for his knowledge, ability to manage, and professional capacity.

(7) OM organisations always try to adapt themselves with the changed situations.

(8) In such organisations achievement and excellence are rewarded or prioritised. Conservativeness in the sphere of management is generally discouraged. These are the chief characteristics of OM organisations.

Organisation Development:

• It is said that open model (OM) has some sub-fields and organisation development (OD) is one such sub-field. 
• In other words, OD is subsidiary to the open model. What is OD? 
• Let us define it in the following words, “The organisation development, is a planned organisation-wide attempt directed from the top, that is: designed to increase organisational effectiveness and viability through calculated interventions in the active working of organisation using knowledge from behavioral sciences”.
• Every organisation wants progress and the OD stresses that progress must be realized through calculated efforts. 
• The programme for development shall be prepared at the top of the organisation and then it shall be spread in all the sections or branches. 
• The plan for development must proceed in a calculated way. 
• It further asserts that the guidelines for developments shall be collected from different branches of behavioral science.

What are the Objectives of OD?

(1) The first objective of OD is to improve the ability and other qualities necessary for the organisation. The chief aim is all the members of the organisation shall be able to invest their full energy and capacity for the development of the organisation.

(2) It is known to everybody that the persons who work for the organisation are all human beings and, naturally, all have emotions and feelings. Organisation development wants to say that it is the duty of the organisation to take measures for the development of emotions and feelings.

(3) Direct and effective relationship among all members shall, be estab­lished and properly developed so that the organisation can find proper avenues of further progress.

(4) It is quite natural that conflicts or differences of opinion may crop up among the employees or between different sections. It has been suggested by the supporters of OD that no solution or settlement shall be imposed upon the employees or warring sections. In other words, they shall be encouraged to settle all types of dispute among them­selves amicably.

(5) The OD suggests that all the sections of an organisation and all employees shall work unitedly and with a spirit of cooperation. There shall exist a spirit of cooperation and mutual understanding among all.

• It has been suggested by the sponsors of OD esprit de corps (a feeling of pride, fellowship and loyalty uniting the members of a particulars group) shall be developed among the employees and various departments. 
• This is key to progress of the organisation. 
• The suggestions made by the OD can be traced to the concepts of social psychology. 
• Today it is believed that the progress of an organisation is not simply a matter of administration. 
• Human psychology is largely associated with the all-round progress of an organisation and the OD wants to remind us that.
• The application of social psychology further states that physical progress is not simply in a physical world. 
• It has close relationship with psychology. How men work and what they feel about the numerous aspects of the organisation also matter a great deal about the progress of organisation and for that reason the principles and suggestions of social psychology are required to be applied to the working of an organisation.
•  It has been claimed that the application of the principles of social psychology has shown remarkable results.

Organisation as a Unit of Environment:

• Open model of organisation has another aspect and it is called organisation is a unit in its environment. 
• It means that the organisations in public administration are parts of the environment. 
• In other words, both are dependent upon each other. 
• If the influences of environment fall upon the organisation, it adjusts or adapts itself with the changes or influences. 
• Because of this the concept has been named as adaptive system or contingency theory.
• When certain changes take place in the environment and their impacts fall upon the functions of an organisation the latter responds to this change. 
• This idea has been summarised by Nicholas Henry in the following words: “The task environment in organisation theory refers to the forces that surround the organisation and affect, both positively and nega­tively’ the organisation’s ability to fulfill its mission” 
• The experts, after thorough research, have found that the weak or new or flexible organisations are subject to the changes that take place in the environment. 
• It is inevitable because the organisation belongs to OM. 
• Nicholas Henry has referred to the famous TVA (Tennessee Valley Authority) —a famous organisation of the USA.
• A number of persons have conducted research to study the relationship between TVA and the environment and have found that the environment very often influences the various aspects of the TVA. 
• The authority of the TVA has found it necessary to adapt or coopt the influences of environment into the policies or functions of the TVA. 
• Not only TVA, many other organisations are in the same way influenced by the environment. 
• It is said that when the authority drafts the principles and policy of organisation it must take note of this situation.

Reconciling Two Models:

• Nicholas Henry is a vocal spokesman of the differences between open and closed models. 
• But he says that the Western culture does not permit any elongation of the differences between the two models. 
• There are some differences no doubt but in majority of the cases these differences appear to be insignificant. 
• For this reason Henry speaks of some type of synthesis between the two models. I quote a lengthy passage from his book.
• “The essence of the literature of model synthesis is that it starts with the open model and that is it assumes that organisations are spontaneous collectives of people with their own goals and drives who are operating in an uncertain environment but explains organisational behaviour as being motivated by a need to routinise and rationalise the organisation’s internal working and its relation­ships with its environment whenever and whatever possible. This is essentially a Darwinian notion (adapt or die). Another way of saying the same thing is that organisations try to become rational."

Consider the same concept from another perspective organisations try to make all variables predictable. 

• Visualized differently we can perceive that organisations try to achieve closure. 
• Yet another way of expressing the same idea is to say that organisations try to reduce uncertainty”.
•  In this way Henry has made a model attempt to synthesize the two models. 
• In the real world no clear-cut divisions can be drawn between closed and open models though—theoretically—there are differences.