Organizations (eBook)

Organizations 3
Acknowledgments 7
Contents 9
Chapter 1: Introducing Organizations as Social Systems Conducting Experiments 13
1.1 Introduction 13
1.2 Making Sense of Organizations: From ``Phenomena´´ to ``Key Features´´ 13
1.2.1 Situation 1: Strategy Formulation 14
1.2.2 Situation 2: A Worker in Trouble 16
1.2.3 The First ``Arche´´: The Experimental Character of Organizations 18
1.2.4 The Second ``Arche´´: The Social Systemic Character of Organizations 18
1.2.5 The Relation Between the Social Systemic and the Experimental Character of Organizations 19
1.3 Organizations as Social Systems Conducting Experiments 20
1.3.1 Conducting Experiments 21
1.3.1.1 What is at Stake in the Experiment: Maintaining a Separate and Meaningful Existence 21
1.3.1.2 Conducting the Experiment: Adaptation and Realization for Meaningful Survival 24
1.3.1.3 The Experimental Character of Adaptation and Realization for Survival 27
1.3.2 Organizations as Social Systems 29
1.4 Principles Improving Organizational Design 32
1.4.1 Functional Design Principles 33
1.4.2 Specific Design Principles 34
1.5 Conceptual Background 35
1.6 Outline of the Book 37
1.6.1 Part I: The Experimental and Social Arche of Organizations 37
1.6.2 Part II: Designing Organizations as Social Systems Conducting Experiments 39
1.6.3 Part III: Poor and Rich Survival 40
References 41
Part I: The Experimental and Social Arche of Organizations 42
Chapter 2: The Experimental Arche: Ashby´s Cybernetics 43
2.1 Introduction 43
2.2 Cybernetics: Effective Methods for the Study of Complex Systems 44
2.2.1 Describing Behavior: ``Systems´´ and ``Transformations´´ 45
2.2.2 Regular Behavior and Input 48
2.2.3 A Procedure to Describe Behavior and Identify Regularity 50
2.3 Cybernetics: Effective Methods for the Control of Complex Systems 56
2.3.1 Ashby´s Views on Regulation: Definition, Types of Regulation and Requisite Variety 56
2.3.1.1 Regulation: Ashby´s Definition 56
2.3.1.2 Types of Regulation 59
2.3.1.3 Effective Regulation: The Law of Requisite Variety 63
2.3.2 Control, Design and Operational Regulation 64
2.3.2.1 Control 65
2.3.2.2 Design 66
2.3.2.3 A Method to Deal with Complex Systems 68
Step 1: Control 68
Step 2: Design 69
Step 3: Regulation 69
2.3.2.4 An Illustration of Ashby´s Method: Problem-Solving as a Series of ``Control,´´ ``Design´´ and “Operational Regulation” – Activities 69
2.3.2.5 Ashby´s Method Underlies Regulation in and of Organizations 72
2.3.3 Adaptive Behavior 75
2.3.3.1 Adaptation and Self-Regulation 75
2.3.3.2 Organizations as Adaptive Self-Regulatory Systems 76
2.4 Organizations as Systems Conducting Experiments 79
References 83
Chapter 3: The Experimental Arche Continued: Von Foerster on Observing Systems 84
3.1 Introduction 84
3.2 Two problems in first-order cybernetics 87
3.2.1 The problem of selection 87
3.2.2 The problem of defining the transformation 88
3.2.3 Dealing with Both Problems: The Cybernetics of Observing 94
3.3 Observers as Closed Systems Producing Eigenvalues 95
3.3.1 Closed Systems and Their Eigenvalues 95
3.3.1.1 A Formalism to Explain the Emergence of Eigenvalues 96
3.3.1.2 Three necessary elaborations of the basic formalism 98
The diversity of eigenvalues 98
The role of input 99
Eigenvalues and the complexity of systems producing them 102
3.3.2 Closure, cognition and observing 103
3.3.2.1 Closure of the nervous-system 103
3.3.2.2 The emergence of cognitive content 109
3.3.3 Problems of First-order Cybernetics Revisited 113
3.3.3.1 The Hypothetical Nature of Knowledge 114
3.4 Von Foerster and the Risky Nature of the Organizational Experiment 115
3.4.1 A Common-sense Understanding of Risk 116
3.4.2 A More Fundamental Understanding of Risk 117
3.4.3 Two Consequences of von Foerster´s View on Risk 119
3.4.3.1 Reification and Reduction 120
3.4.3.2 Responsibility 122
References 124
Chapter 4: The Social ``arche,´´ Organizations as Social Systems: Luhmann 126
4.1 Introduction 126
4.2 Luhmann´s General Theory of Social Systems 127
4.2.1 Autopoietic or Self-Producing Systems 128
4.2.1.1 Elements and the Production of Autopoietic Systems 129
4.2.1.2 Structures Regulating Autopoietic Production 132
4.2.1.3 Emergent Characteristics of Autopoietic Systems 135
4.2.2 Meaning Processing Systems 137
4.2.2.1 Two Key Properties of the Elements of Meaning Processing Systems 137
The Inner Structure of the Elements of Meaning Processing Systems: Meaning 137
The ``event-like´´ Character of the Elements of Meaning Processing Systems 139
4.2.2.2 The Structure and Self-Production of Meaning Processing Systems 139
4.2.3 Social Systems 142
4.2.3.1 Elements of Social Systems: Communications, their Inner Structure 142
4.2.3.2 The Structure of Social System: Expectations about Expectations 144
4.2.3.3 The Autopoietic Production of Social Systems 147
4.3 The Social ``arche´´: Organizations as a Particular type of Social Systems 150
4.3.1 Elements of Organizations: Decisions 152
4.3.2 The Organization´s Structure: Decision Premises 155
4.3.2.1 The Main Function of Decision Premises 156
4.3.2.2 Types of Decision Premises 158
Membership 158
Communication Pathways 160
Decision Programs 161
Personnel 161
Position 162
Planning 162
Self-descriptions 163
Organizational culture 163
Cognitive routines 164
4.3.2.3 Some Remarks on the Function and Types of Decision Premises 165
4.3.3 Processes of Self-Production: The Autopoiesis of Organizations 167
4.3.4 Questions Concerning Luhmann´s Theory of Organizations 168
4.3.4.1 Question 1 168
4.3.4.2 Question 2 170
4.3.4.3 Question 3 171
4.4 Organizations as social systems reflecting complexity 172
References 175
Chapter 5: Epilogue to Part I: The Two ``Archai´´ Combined 176
5.1 Introduction 176
5.2 Cybernetics and Social Systems Theory an Exploratory Comparison
5.2.1 The Goal and Core Concepts of Respectively Cybernetics and Social Systems Theory 177
5.2.2 Cybernetics and Social Systems Theory Compared 179
5.3 Combining the Experimental and the Social ``Arche´´ 181
5.4 Transition to Part II: Designing organizations 185
References 186
Part II: Designing Organizations as Social Systems Conducting Experiments 187
Chapter 6: Beer: Functional Design Principles for Viable Infrastructures 188
6.1 Introduction 188
6.2 Viability and Complexity 190
6.2.1 Complexity Relations Between Environment, Organization, and Its Management 190
6.2.2 Three Strategies to Solve the Complexity Problem 191
6.2.2.1 Strategy 1: Define Goals 191
6.2.2.2 Strategy 2: Attenuate Disturbances and Amplify Regulatory Potential 192
6.2.2.3 Strategy 3: Recursion 194
Criterion 1: 198
6.3 A functional Model of Viability 200
6.3.1 What Does it Mean to Make a Functional Model of a Viable System? 200
6.3.2 Beer´s Functional Model of Viable Organizations 203
6.3.2.1 Function One: Primary Activities 203
6.3.2.2 Function Two: Coordination 204
6.3.2.3 Function Three: Control 206
6.3.2.4 Function Four: Intelligence 207
6.3.2.5 Function Five: Policy 209
6.3.3 Relations Between Functions 212
6.3.3.1 Relations Between Functions Required to Realize the Organization´s Mission and Goals 212
Direct Commands and Reports and Resource Bargaining Between Control and the Primary Activities 213
Audits of the Primary Activities 213
Controlling the Coordination Function (Control - Coordination) 214
Coordinating Interdependencies Between Primary Activities (Coordination - Primary Activities) 214
6.3.3.2 Relations Between Functions Required to Adapt the Organization´s Identity and Mission 215
Consolidating Plans for Innovation (Policy - Intelligence - Control) 215
Generating Finalized Proposals for Innovation (Intelligence - Control) 217
Facilitating Communication Between Control And Intelligence (Policy - Intelligence - Control) 218
Diagnosing and Designing Viable Infrastructures 220
6.4 The Viable System Model and Social Systems Conducting Experiments 222
6.4.1 The contribution of the VSM to conducting experiments 224
6.4.2 The VSM and Social Systems Theory 227
References 232
Chapter 7: Specific Design Principles: de Sitter´s Organizational Structures 233
7.1 Introduction 233
7.2 Designing Organizational Structures: Aiming at Attenuation and Amplification 236
7.2.1 Organizational Structures 237
7.2.1.1 Tasks in Organizations I: Defining Tasks 237
7.2.1.2 Tasks in Organizations II: Operational and Regulatory Transformations 240
The Operational and Regulatory Aspect of Transformations 240
Four types of Regulatory Transformations 242
7.2.1.3 Relating Tasks into Organizational Structures 246
7.2.2 Relevant Organizational Variables 247
7.2.3 Disturbances 249
7.2.4 Attenuation and Amplification by Organizational Structures 251
7.3 Principles for Designing Organizational Structures 252
7.3.1 Design Parameters 253
7.3.1.1 Parameters describing the production structure 254
Parameter 1: the level of functional concentration 254
Parameter 2: the level of differentiation of operational transformations 255
Parameter 3: level of specialization of operational transformations 256
Parameter 4: the level of separation between operational and regulatory transformations 256
7.3.1.2 Parameters describing the control structure 257
Parameter 5: the level of differentiation of regulatory transformations into aspects 257
Parameter 6: the level of differentiation of regulatory transformations into parts 257
Parameter 7: the level of specialization of regulatory transformations 257
7.3.2 Using Design parameters to Formulate Design Principles 259
7.3.2.1 The Effect of an Organizational Structure with Maximum Parameter Values on Controllability 260
The Effect of High Parameter Values of the Production Structure 262
The Effect of High Parameter Values of the Control Structure 264
The Effect of High Working Pressure and Reduced Regulatory Potential on Realizing Tasks and on Organizational Quality 267
Quality of Organization 268
Quality of Work 269
Quality of working Relations 271
7.3.2.2 The Effect of an Organizational Structure with Low Parameter Values on Controllability 271
The Effect of Low Parameter Values of the Production Structure 274
The Effect of Low Parameter Values of the Control Structure 278
The Effect of Low Working Pressure and Increased Regulatory Potential on Realizing Tasks and on Organizational Quality 280
Quality of Organization 281
Quality of Work 281
Quality of Working Relations 282
Limits to Lowering Parameter-values 282
7.4 De Sitter´s Organizational Structures and Conducting Experiments 283
7.4.1 Relating de Sitter to Ashby, Luhmann and Beer 283
7.4.2 How Do Low Parameter Structures Benefit Organizational Experimentation? 285
References 286
Chapter 8: Epilogue to Part II: functional and specific design principles 287
8.1 Introduction 287
8.2 Summary of the Design Principles 287
8.2.1 Functional Design Principles 288
8.2.2 Specific Design Principles 288
8.3 The Status of the Design Principles 289
8.3.1 Principles of Experiments with Meaningful Survival 290
8.3.2 Design Principles Figuring in Experiments with Meaningful Survival 291
8.4 Transition to Part III: Poor and Rich Survival 293
Part III: Poor and Rich Survival 295
Chapter 9: Poor Survival: Disciplining Organizational Behavior 296
9.1 Introduction 296
9.2 Foucault: The Disciplines in the Eighteenth Century 298
9.2.1 The Analysis of Space 299
9.2.2 The Analysis of Bodily Operations 299
9.2.3 The Analysis of the Process of Production 300
9.2.4 The Synthesis of Space, Bodily Operations and the Process of Production 300
9.2.5 Hierarchical Surveillance 300
9.2.6 Normalizing Sanctions 302
9.2.7 Examination 303
9.3 A Cybernetic and Social Systemic Generalization of the Disciplines 304
9.3.1 Cybernetic Analysis of the Disciplines 305
9.3.2 A Social Systemic Analysis of the Disciplines 310
9.3.3 Cybernetic and Social Systemic Principles Underpinning Discipline in Organizations 313
9.4 Why are the Disciplines Disquieting? 314
9.4.1 Trivialization 315
9.4.2 Self-Trivialization 316
9.4.3 Fear as a Prime Motivational Factor 316
9.4.4 A Science of Discipline 317
9.4.5 Detachment and Lack of Involvement 317
9.4.6 Contingent and Minimal Goals 318
References 320
Chapter 10: Towards Rich Survival: Aristotle 321
10.1 Introduction 321
10.2 The Highest Good for Man: Basic Distinctions 324
10.2.1 The Highest Good for Man: Living a Fulfilled Life 324
10.2.2 Characteristically Human Capacities and the Fulfilled Life 326
10.2.3 Virtues Involved in Eudaimonia 328
10.3 Eupraxia: Moral Virtue, Practical Wisdom, and Choice 331
10.3.1 Moral Virtue 332
10.3.2 Practical Wisdom 335
10.3.2.1 Making and Acting 335
10.3.2.2 Skill and Practical Wisdom 337
Skill: Knowledge and Experience 337
Skill: Deliberation and Judgment 338
Practical Wisdom 339
Practical Wisdom: Knowledge and Experience 339
Practical Wisdom: Deliberation and Judgment 341
Comparing Skill and Practical Wisdom 343
10.3.2.3 Choice: Combining Moral Virtue and Practical Wisdom 345
10.3.2.4 Developing Moral Virtue and Practical Wisdom 347
10.4 Aristotle Versus the Disciplines 352
References 353
Chapter 11: Organizational Structures Supporting Rich Survival 354
11.1 Introduction 354
11.2 Incorporating the Organization into Society 354
11.3 Rich Survival: Specific Design Principles and Corresponding Structures 360
11.3.1 Requirements to and Design Principles for ``Rich´´ Organizational Structures 360
11.3.1.1 Responsible Organizations: Requirements 360
11.3.1.2 Responsible Organizations: Design Principles 365
Design Principle 1 365
Design Principle 2 366
Design Principle 3 366
11.3.1.3 Responsible Organizational Members: Inclusive Jobs 367
Design Principle 4 371
Design Principle 5 371
Design Principle 6 371
11.3.1.4 Inclusive Versus Discipline-Like Jobs 371
11.3.2 Production and Control Structures Fitting the Design Principles 373
11.3.2.1 Rich Production Structures 374
11.3.2.2 Group 2: Rich Control Structures 376
11.4 Organizations and Rich Meaningful Survival 378
References 381
Chapter 12: Epilogue 382
12.1 Introduction 382
12.2 Organizations, ``Archai,´´ Design Principles, and ``Rich´´ Survival 382
12.3 Rich Survival: Its Applicability to Organizations and Relation to Poor Survival 384
12.4 Things to do 387
References 388
Index 389