What does systems theory evaluate in an organization?

Systems theory is a conceptual framework that evaluates the complex interactions and interdependencies within organizations as well as between organizations and their external environments. It emphasizes that an organization is not just a collection of individual parts but a coherent entity where each component affects and is affected by others. This perspective highlights the importance of understanding how organizational processes influence and are influenced by the changes happening in the broader environment, such as economic shifts, regulatory changes, and technological advancements.

By focusing on the interaction between the organization and its environment, systems theory helps healthcare administrators and leaders grasp the dynamic relationships that can affect organizational performance and decision-making. This understanding is crucial for developing strategies that are responsive to external challenges, ensuring organizational adaptability and sustainability.

In contrast, other options explore aspects that do not define the scope of systems theory as directly. For example, internal competition, historical performance, and departmental roles, while relevant to organizational analysis, do not encompass the broader perspective of interrelations across an organization and its environment as systems theory does.