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The model depicts organisations as systems that operate within a wider system of suppliers, competitors, customers and other stakeholders, which is bounded by the physical and biological environment that is our planet.
The cross-sectional model indicates that the keys to organisation success lie in the influences of leadership at all levels, and the development of work unit climates that cause the individual responses that the leaders want and the organisation needs.
It hints at the flows of information from the ‘outside’ systems into the organisation and the outflows of impacts from what the organisation does into those outside systems. It rightfully places leadership in the driving seat for organisational performance.