The four main subsystems within the environment are known to be the system of the economy, system of the technology, system of socio- culture, and the system of political law (Burke, 2005). For the analysis of the organization, in the form of system, it becomes important for the consideration of following points that has to be done in alignment with the figure provided above: 1) Establishment of relationships amongst the external systems and the organization, and 2) Establishment of relationships amongst the environment and the organization as it is important for studying the main factor identified above that result in influencing the sub- system of the environment (Garnet and Kouzmin, 2010).
This model is important for understanding the impact of these main factors that have to be considered to study the firm and the interactions taking place with the factors of the environment. The environment in which the system has been operating is extremely complicated and hence, the entire system may not be having the ability of coping with all of these complications for being successful in attaining the state being preferred. Therefore, the entire system is known to be sub- dividing itself within different subsystems or parts, and all of these subsystems are known to be specializing to cope up with specific variables present within the environment (Burke, 2005). If the task of specialization is known to be highly complicated, there can be further division of systems several number of time until an hierarchy related to subsystems while help in the development of one main subsystem. The development of personnel can be considered as the example with various systems that give special attention to different functions like salaries, benefits, housing, industrial relations, training and recruitment.