The term system means a set of interrelated parts that function as a whole
to achieve a common purpose. 60 These interrelated parts of a system are called
subsystems. Changes in one part of the system affect other parts, and manag-
ers need to understand the whole organization, rather than just the separate elements.61 Subsystems in an organization perform specific functions required for
organizational survival, such as production, boundary spanning, maintenance,
adaptation, and management. Boundary systems, for example, are responsible for
exchanges with the external environment. They include activities such as purchasing supplies, marketing products and services, and competitive intelligence. These
various subsystem functions are carried out by the five basic organizational parts
described earlier and illustrated