What describes the smaller components within an organization that must coordinate effectively for optimal performance?

The term that describes the smaller components within an organization that must coordinate effectively for optimal performance is a subsystem. In management theory, a subsystem refers to a smaller component of a larger organizational system that has its own functions and objectives but operates in conjunction with the overall system. Each subsystem plays a specific role in contributing to the organization's goals, and their effective coordination is crucial for achieving optimal performance.

Subsystems can include various departments, teams, or processes within an organization, such as marketing, finance, or production. Each of these areas has its own responsibilities but must work together seamlessly to ensure that the organization's operations are efficient and successful. Effective communication and collaboration among subsystems are vital for addressing challenges and leveraging opportunities, ultimately enhancing the entire organization's performance.