Which theory views organizations as interconnected systems where each part influences the others?

The correct answer is systems theory because it conceptualizes organizations as complex, interconnected systems composed of various parts that interact and influence one another. This perspective emphasizes that any change in one part of the organization can have ripple effects throughout the entire system, highlighting the importance of understanding the relationships and dynamics between different components, such as departments, processes, and individuals.

Systems theory promotes a holistic view, suggesting that to effectively manage an organization, leaders must consider how different elements work together to achieve common goals. This approach contrasts with other theories that might focus more narrowly on specific aspects, such as individual behaviors or the impact of contingency factors without recognizing the broader interdependencies at play. By applying systems theory, healthcare administrators can better understand organizational behavior and improve decision-making processes, leading to more effective and integrated healthcare delivery.