Post on 29-Jun-2015
Chapter 4: SYSTEMS THEORY
Provides a general analytical framework (perspective) for viewing
an organization.
Systems Theory
Synergy Interdependence Interconnections
– within the organization – between the organization and the environment
Organization as ORGANISM “A set of elements standing in inter-relations”
Overview
General Theoretical Distinctions Misunderstandings Strengths of Systems Theory Systems Framework General Systems Theory Principles System Characteristics Contingency Theory The Learning Organization
General Theoretical Distinctions
Classical and humanistic theories prescribe organizational behavior, organizational structure or managerial practice (prediction and control). MACHINE
Systems theory provides an analytical framework for viewing an organization in general (description and explanation). ORGANISM
Misunderstandings
Doesn’t focus on specific task functions Doesn’t directly explore the impact of
interpersonal relationships and loyalty on productivity
Doesn’t provide for detailed focus Changes in environment directly affect the
structure and function of the organization.
Strengths
Recognizes . . .– interdependence of personnel– impact of environment on organizational structure and
function– affect of outside stakeholders on the organization
Focuses on environment and how changes can impact the organization
Seeks to explain “synergy” & “interdependence” Broadens the theoretical lens for viewing
organizational behavior.
Systems Framework
Ludwig von Bertalanffy (1968) Offered a more comprehensive view of organizations NOT a theory of management - new way of
conceptualizing and studying organizations Four Strengths (“promises”) M. Scott Poole
– Designed to deal with complexity– Attempts to do so with precision– Takes a holistic view– It is a theory of emergent - actions and outcomes at the collective
level emerge from the actions and interactions of the individuals that make up the collective
Principles of General Systems Theory
Laws that govern biological open systems can be applied to systems of any form.
Open-Systems Theory Principles– Parts that make up the system are interrelated.– Health of overall system is contingent on subsystem functioning.– Open systems import and export material from and to the environment.– Permeable boundaries (materials can pass through)– Relative openness (system can regulate permeability)
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 2Slide 9
Figure 2.3Organization as Open System
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 2Slide 10
Open Systems
In continual interaction with environment. Continually receives feedback from
environment.
Characteristics of Organizations as Systems
Input-Throughput-Output– Inputs
Maintenance Inputs (energic imports that sustain system) Production Inputs (energic imports which are processed to yield a productive outcome)
– Throughput (System parts transform the material or energy)– Output (System returns product to the environment)– TRANSFORMATION MODEL (input is transformed by system)
Feedback and Dynamic Homeostasis– Positive Feedback - move from status quo– Negative Feedback - return to status quo– Dynamic Homeostasis - balance of energy exchange
Equivocality and Requisite Variety (Karl Weick)– Equivocality (uncertainty and ambiguity)– Requisite Variety (complex inputs must be addressed with complex processes)
Characteristics of Organizations as Systems Role of Communication
– Communication mechanisms must be in place for the organizational system to exchange relevant information with its environment
Boundary Spanners perform this function! Media Outlets are communication link between system & environment
– Communication provides for the flow of information among the subsystems Systems, Subsystems, and Super systems
– Systems are a set of interrelated parts that turn inputs into outputs through processing
– Subsystems do the processing– Supersystems are other systems in environment of which the survival of the focal
system is dependent Five Main Types of Subsystems
– Production (technical) Subsystems - concerned with throughputs-assembly line– Supportive Subsystems - ensure production inputs are available-import raw material– Maintenance Subsystems - social relations in the system-HR, training– Adaptive Subsystems - monitor the environment and generate responses (PR)– Managerial Subsystems - coordinate, adjust, control, and direct subsystems
Characteristics of Organizations as Systems
Boundaries– The part of the system that separates it from its environment– Four Types of Boundaries (Becker, 1997)
Physical Boundary - prevents access (security system) Linguistic Boundary - specialized language (jargon) Systemic Boundary - rules that regulate interaction (titles) Psychological Boundary - restricts communication (stereotypes, prejudices)
The ‘Closed’ System– Healthy organization is OPEN– Do not recognize they are embedded in a relevant environment– Overly focused on internal functions and behaviors– Do not recognize or implement equifinality– Inability to use feedback appropriately– CO-DEPENDENT
Characteristics of Organizations as Systems
McMillan & Northern (1995) on Enabling Co-dependency– Asymmetrical communication status of the hierarchy
Levels of authority Fear of Punishment
– The socially acceptable addiction Workaholics Addiction leads to more co-dependency
– The organization’s selective attention Money and power as distractions Focus on ends instead of means
– Skilled communication incompetence Deprived of useful feedback Emotion is masked
First extension of Systems Theory into Management Practice - CONTINGENCY THEORY
Contingency Theory
There is no one best way to structure and manage organizations.
Structure and management are contingent on the nature of the environment in which the organization is situated.
Argues for “finding the best communication structure under a given set of environmental circumstances.”
Management of Innovation - Burns and Stalker (1968)
Two Contingency Theories Burns and Stalker (1968) Management of Innovation
– Organizational systems should vary based on the level of stability in the environment
– Two different types of management systems Mechanistic systems - appropriate for stable environment Organic systems - required in changing environments (unstable
conditions)– Management is the Dependent Variable
Variations in environmental factors lead to management
Lawrence and Lorsch (1969)– Key Issue is environmental uncertainty and information flow– Focus on exploring and improving the organization’s relationship
with the environment– Environment is characterized along a certainty-uncertainty
continuum
Pragmatic Application of Systems Theory
The Learning Organization– Peter Senge’s The Fifth Discipline: The Art and Practice of the
Learning Organization (1990)– An organization that is continually expanding its capacity to create
its future– Organizational Learning Occurs under Two Conditions
1) When design of organizational action matches the intended outcome
2) When initial mismatch between intentions and outcomes is corrected, resulting in a match
– Key attribute of learning organization is increased adaptability– Adaptability is increased by advancing from adaptive to generative
learning
The Learning Organization
Adaptive (single-loop) Learning– Involves coping with a situation – Limited by the scope of current organizational assumptions– Occurs when a mismatch between action and outcome is corrected
without changing the underlying values of the system that enabled the mismatch.
Generative (double-loop) Learning– Moves from COPING to CREATING an improved organizational
reality– Necessary for eventual survival of the organization
Both are Central Features of the Model of the Communicative Organization (Chapter 6)
Synergy and Nonsummativity are Important
The Learning Organization
Through communication, teams are able to learn more than individuals operating alone.
– Critics argue that teams inhibit learning– Thoughts?
Leadership is a key element in creating and sustaining a learning organization.
Leaders are responsible for promoting an atmosphere conducive to learning
CREATIVE TENSION– Represents difference between the “vision” of where the
organization could be and the reality of the current organizational situation.
Impediments to Learning Organization
Complexity of the Environment– Difficult to determine cause and effect– Multiple contributing elements in complex environments
Internal Conflicts– Individuals, teams, departments, and subcultures are often at odds– Energy is drained by conflect
Organization members must be trained in communication and conflict-negotiation skills
Summary
Systems Theory is NOT a prescriptive management theory Attempts to widen lens through which we examine and
understand organizational behavior The Learning Organization
– Synergy– Nonsummativity– Interdependence– Equifinality– Requisite Variety– Emphasizes COMMUNICATION in the Learning Process
Organizations cannot separate from their environment Organizational teams or subsystems cannot operate in
isolation
Bottom Line
The same misunderstandings and problems that continue to occur will eventually cause fatal damage to the system.