With an emphasis on human side of organizations, human relations view attracted many research; but later important criticisms occurred due to its emphasis on mostly small and informal groups and the relations among the group members. The human relations approach ignored the formal organization and its relation with the environment. In 1960s, a major shift of thinking occurred, which was represented as a new scientific paradigm; this identified a third milestone in the OB history. The development of systems-theory in life-sciences as a multidisciplinary approach affected the way of thinking in organizations. There exist mainly three stages, defined as input, transformation and output, which each of the stage are affected from each other and by the forces outside the organization. The input stage consists of acquisition of raw materials, machinery and equipment, financial resources and human resources as well. At this stage, recruitment of skilled employees, training them both for work procedures and obtaining the other necessary resources at a reasonable cost and time are the key issues to be considered. After the organization obtain the necessary resources, next at the transformation stage, the inputs are converted to outputs that are finished ready-to-sell products, by using human skills and machinery and equipment. In order to produce the products (either goods or services) which satisfy the customers’ needs, the managers should create the necessary procedures and motivate the employees to behave accordingly to complete their tasks. It is also necessary to develop the skills of the employees, due to the occurrence of changes, such as new technologies, changing customer demands, or regulations. The organization offers its products in its external environment to the customers, as outputs, at the output stage. The correct answer is Choice C.