Organizations usually have a number of parts or sub systems. The key sub systems are:

  1. Goal Subsystem: It comprises of the overall goals and objectives of the organization and also the specific goals of different departments and individuals in the organization.

  2. Technical Subsystem: This subsystem refers to the use of knowledge, facilities equipment and technology by the people who work in the organization.

  3. Managerial Subsystem: This involves planning and co-ordination of the activities undertaken in the organization.

  4. Structural Subsystem: People work together on well defined tasks and integrated activities in different units (like production, marketing, HR) or departments. They make up the structural subsystems.

  5. Psychological Subsystem: People live in social relationships within an organization. This must not be viewed simply in terms of people and technology but also in terms of coordination or structure of work tasks based on following certain rules, regulations, norms, and values.

Each of the subsystems has its specific significance. For example, the goal subsystem determines what work, task, and activities should be undertaken. It is important that these goals and objectives are in agreement with the goals of the society at large.