Give example of interorganisational systems.Identify what they are likely to mean for the way people will work and manage in organisations adopting...

A system is broadly defined as an interrelated structure or collection of parts that function together to achieve a common goal. Thus a device like an oil lamp is a simple system in which a container with oil and a wick function together to produce light of the lamp. Systems can be of various sizes, such as a machinery, human body, an organization, an economy, or the complete universe.

Inter-organizational system (IOS) refers to the system containing multiple organizations operating in related field. For example, we can think of an IOS consisting of a manufacturing company along with its suppliers and distribution channel partners.

There is no hard and fast rules regarding different organizations that are constituent members of an IOS.The concept of system is an intellectual device to understand, analyse, design and manage different activities, functions, organizations and equipments. The way the scope and constituent parts of any system including IOS is determined is based very much on the purpose for which the systems concept is used. In this way an organization may form a constituent part of many different IOS. For example the manufacturing company referred in above paragraph may also be part of another IOS consisting of all the companies manufacturing the same product, or of all the companies having manufacturing plant in a particular geographic location.

It is not as if individuals work or do not work within an IOS. Ever person working in an organization is a part of that organizational system. And that organization it self is a part of one or more inter-organizational system. Thus almost every employed person is a member of many IOS. However, some people may work in organization that use the systems concept for managing its activities and therefor has identified and analyse the IOS systems of which it is a part. In such organization the functions and activities of employees are likely to be more influenced by considerations of the interrelationships between the organizations within the IOS.