Systems, Management and Change

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Systems,Managementand Change
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Methodological Issues

• "All theories of organisation and management are
  based on implicit images or metaphors that
  persuade us to see, understand, and imagine
  situations in partial ways. Metaphors create
  insight. But they also distort. They have
  strengths. But they also have limitations. In
  creating ways of seeing, they create ways of not
  seeing. Hence there can be no single theory or
  metaphor that gives an all-purpose point of view.
  There can be no 'correct theory' for structuring
  everything we do."
• Gareth Morgan, Images of Organisation

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Morgan - metaphors for thinking about
organisations

• No "one correct way" to define and view an
  organisation
• goal-seeking machine with interchangeable parts
• biological organism that continually adapts to
  change
• central brain that can respond to, and predict,
  change
• centring on a set of shared values and beliefs,
• centring on power and conflict, as a means
  whereby individuals achieve their own aspirations
  or mutual self-interest,
• centring on norms of behaviour, so that the
  organisation is likened to a psychic prison
• flux and transformation
• instrument of domination
• Images of Organisation 1986

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Systems perspectives

• Reject 'one best way for all' assumptions of
  classical, sci. mgt human relations frameworks
• Assumes organisation structure operation is
  'contingent' on its situational variables
  environment, technology size.
• Therefore a particular solution for each.
• Organisations not closed systems but open to
  dependent on inputs.
• View organisation
• 'as a whole' part of wider environment.
• not in complete control of own fate.
• must study the conditions under which guidelines
  prescriptions may apply

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Systems perspectives - contingencies

• Environmental uncertainty dependence
• Difficult to understand control events fully
• Actions of others internal/external dep. on
  good will
• Forecasting inexact/hazardous
• Technology
• A key variable. Different technologies, different
  products, modes of operation one/off, small
  batch, large batch, line, continuous flow
  process, service and project. Effect of
  "technology" on work flow
• Size
• The key variable? Application of Weberian case
  for bureaucracy
• small - centralised personal control
• Large decentralised and impersonal structures
• The myth of the 'death of bureaucracy'

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The situation (environment) makes demands
Social, technological, economic, environment
(natural), political, legal, ethical
Customer and stakeholder needs
Dynamic
The Environment. Where customers stakeholders
are
equilibrium
Turbulence
Satisfactions
The Organisation - has
Purpose (Mission), Objectives. Internal form
(functions), specialisms, levels. Transformation
processes (inputs transformed into valued
outputs). Information decisional processes. It
stores and uses information. It has policies,
procedures and rules.
Inputs
Outputs
Boundarymanagement
Boundary
Ideas, entrepreneurship, decisions, funds,
time,energy, customer interaction, regulations

Feedback (Positive or negative) Organisation
needs energy maintenance and improvement to
counter entropy
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Social action perspectives

• The result of responsible actions by agents who
  try to understand the situation, allow for
  unknowns, act accordingly, accept responsibility
  for effects of their actions.
• Holistic perspective
• Processual concern for processes
• Biological metaphor
• Social interpretive, social action
• Actor power - strategic choice and strength

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Organisational sub-systems
Environment STEEPLE evaluation
Open adaptive systems
Boundary Interface
Structure
Outputs
Inputs
Membership and Decision Processes
Organisational Success
Information Systems
SWOT Evaluation Internal external
Adjustment positive, negative
Feedback/Control Loop
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Levels of change

• International
• National
• Industry-market
• The firm
• The collective/the hive
• The function/department
• The group-team
• The individual
• The supply chain
• The network

http//sol.brunel.ac.uk/jarvis/degreemodules/mg50
13/ Seminar 1
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Language of systems

• Talk about "wholes"
• how it feels, insight, depth, richness, fidelity
• plausible description, sense of completeness,
  elegant in shape/structure
• a pattern in a field of forces resolvable
  tensions, competing forces
• aware of all forces in a situation
• navigate to achieve our goals - drawn to lines of
  action.
• System Definitions
• System an entity that maintains its existence
  functions as a whole thru. the interaction of its
  parts.
• a bounded system of linked components
  representing the relatively fixed parts of the
  situation, at the finest level of analysis that
  we want to go.
• Elements, grouped into sub-systems connecting
  links, the structure of the situation processes
  bringing it to life.
• Many components have little to do with what we
  are interested in.

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Systems complexity and interdependence

• Seeing the whole ? thinking of everything
• Handle 5-6 indep. components with intuitive
  judgement but 30?
• Many things connected to other things the
  complexity excuse
• Cannot rely on "big" teams, assumed shared
  intelligence (the Borg)
• Rounded understanding
• See from many angles wood for trees
• Get to the heart of the matter the root
  problems (Checkland)
• Interdependence (Thompson 1967)
• Pooledeach part of organisation operates in
  relatively autonomous way. Fulfil their purposes
  the "whole" functions.
• Sequentialoutputs from one part are inputs to
  another
• Reciprocaloperations require direct interaction
  between parts

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Thompson (1967) on internal interdependence

• Different sections of organisation different
  levels of complexity, rationality formalisation
  as a reaction to uncertainty
• The higher the uncertainty, the greater the
  interdependence
• As interdependence increases coordination needs
  thru. personal interaction grow over standard
  procedures
• The more coordination through mutual reciprocity
  the less rational the operation.
• Tensions in struggle for certainty/clarity.

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Soft systems methodology

• CATWOE
• Clients
• Actors
• Transformations
• Weltanschaunng
• Owners
• Environment (economic, social, technological,
  ethical, legal etc)

• Soft, human activity systems
• Rich picture analysis/mapping
• Force-field analysis
• Root definition of problem

Peter Checkland Systems Thinking, Systems
Practice
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Rich picture
?
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Force Field Analysis
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Strategic Choice Theory (John Child)

• Adaptation of organisation (as a system) to
  environmental change
• but
• D-making personal, social interpretive
  political activity, designed to influence
  relationships between
• management/labour
• different groups within mgt. itself
• management and environment
• Cannot assume that D-making within levels of mgt
  is
• consonant or supportive of decisions made at the
  top.
• logical, rational, inevitably resulting in a
  better world

Also Pettigrew extended strategic choice
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Technology and Strategic Choice

• Technological determinist/imperative model.
• exerts independent, uni-directional, causal
  influence over humans organisations similar to
  physical laws.
• Shapes org. structure, size, performance/product
  ivity, degree of centralisation job
  satisfaction, task complexity and skill level
  etc.
• "Softer" .influence of the technology mediated
  by contextual variables.
• Strategic choice model.
• technology not viewed as external object but an
  intentional product of human actions, design and
  appropriation. Three research foci
• 1. Socio-Technical Perspective
• 2. Social Constructionist perspective.
• 3. Marxist Perspective.

• J.Child, 1997 Strategic Choice in the Analysis of
  Action, Structure, Organizations and Environment
  Retrospect and Prospect. Organization Studies,
  18 43-76

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Technology as a trigger for structural change.

• Technology as an intervention into human org.
  structure relationship. It can
• trigger structural change by altering
  institutionalised roles patterns of
  interaction.
• but precise outcome depends on specific, embedded
  historical processes.
• Technology viewed as a social object. Its
  meaning, as defined by context of use, may change
  tho. its physical form remains fixed over time.

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Open and closed systems

• Truly open system system environment openly
  interact "merge", no stable identity, hard to
  manage
• Totally closed self-contained, no environment
  at all, not influenced by externals, cannot
  intervene in it
• Temporary closuredormant periods, defensive
  retreat, internal reorganisation
• Relatively closed sub-systems frameworks that
  provide a fixed structure for the rest of system

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Levels of system description, analysis and
resolution

• Hierarchy of levels e.g. regional telephone sales
  
• Strategy e.g. develop network of outlets top-up
  card agents
• Broad scope (marketing info, demographic factors,
  labour agreements etc)
• Coarse resolution (monthly sales, current
  charges)
• Long time scale (structure incl. e.g. G3, cable
  networks, satellites, processes, monthly trends
  in take-up rates)
• Shorter time scale immediate reaction to TV
  advert.
• Jim phoning Karen
• Limited scope one phone call, several TXT
  messages
• Finer resolution the hand sets
• Shorter time scale structure incl. buy phone,
  top up card, a call.

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Types of system

• Within any system there may be sub-systems
  associated systems of different types e.g mobile
  phone system
• Natural systems e.g. birds, bad weather, solar
  flares
• Abstract systems maths formulae, computer
  programmes, SMTP, WAP protocols
• Designed systems hand set in-car accessories
• Systems of human activities phoning, txting,
  engineer maintenance
• Hard properties known, quantifiable, model-able,
  predictable behaviour e.g. MS return of goods
  procedure???
• Soft systems personal gt technical. Can be
  discussed, explored. Imprecise, ambiguous,
  emotions, personal values reactions, shifting
  expectations e.g. holiday d-making system,
  organisation culture, learning organisation ??

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Tangible or not?

• Some system descriptions are subjective
  idiosyncratic
• See the same components, but disagree on
  "systemic connections"
• Sales rep's "patch". Elements car, travel
  times, routes, contacts, trust, confidence.
  Connections in rep's mind (knowledge-base),
  coherent system because rep. makes it so
  selects routes, build own relationships with
  contacts etc
• Other subjective system descriptions are more
  predictable given owner's culture or role e.g. a
  nun, police officer, banker
• Agree on cooking eggs (low level), disagree on UK
  govt (high level)
• Differences
• goals criteria, theories on how events affect
  one another, language usage making constructive
  discussion difficult
• some systems descriptions are concrete - rely on
  tangible links

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Logical Framework Matrix - EU Funded Projects
How indicators will be assessed
Overall Objective
Indicators of progress
Sub-objective No. description
Outcomes
Inputs
Assumptions risks
Activities
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Michael Porter -- Value-Added Chain Analysis
Technology development
Support Activities
Procurement
Primary Activities
Inbound logistics
Operations
Outbound logistics
Marketing and sales
After sales service
Employee management
Support Activities
Firms infrastructure
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Value-Added Chain

• Ops. Managers to address every activity on the
  chain. Performance related, value-added
  objectives include
• right, first time. Produce to target quality.
• time compression - customer response, lead times,
  eliminate delays, bottlenecks inventory
• predictability - control events, actions
  relationships for flexibility (new
  products/service range, volume delivery)
• control over costs (staff, facilities/technology,
  materials)
• NB produce in-house or buy-in(out-source).

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Information flows (manufacturing) supply chain
Marketing
market research data
Customers
Design
design information
Competitors
orders
Sales
Purchasing
Regulatory bodies
orders
Inward logistics
orders
Production planning
Government
delivery notes
Production control
JIT data
invoices
Benchmark data
Quality control
Delivery
Legal environment
invoices
Suppliers
Finance
payments
share prices
After-sales
Accounting Standards
Relationship management
Stock exchange
dividends
Shareholders
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Analyse each value-added stage

• identify elements/content (I-P-O info) of each
  stage design characteristics
• how do we ( how well do we) secure supplies
  /suppliers other inputs?
• how effectively do we
• manufacture components from raw materials?
• assemble components into finished goods
  services?
• distribute finished product to wholesalers,
  retailers end-users?
• provide maintenance after-care?

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What holds a system together? Control

• System structure processes and system control
  are two sides of the same coin.
• causal networks stress systems factors but
  underplays choice
• Natural ecosystems, stable, no sense of purpose,
  no controller, no free choice, no grand design.
  Controlled by a complex, self-maintaining causal
  network that holds it in a dynamic equilibrium
  until destabilised
• Purposive control stress process of pursuing a
  set target
• incorporates specialised control sub-systems but
  goals are pre-set. Purpose without choice e.g.
  migrating bird, learned habit
• Purposeful control emphasises act of choice
• deliberately controlled human activity.
• specialised arrangements for d-making and control
• Free choice amongst competing alternatives
• Blue-prints or plans.

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Causal networks, Purposive and purposeful control

• Emphasis depends on beliefs values
• If see behaviour as economically and
  technologically determined (purposive) then may
  argue 'causal network' over 'purposeful' models
• If stress power of choice then, travelling
  commuters become 'purposeful' rather than
  'purposive'
• Matters of respect and affection as of
  intellectual argument

There is no alternative.
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Adaptive control - steering towards a target

• Purposive and purposeful models involve a
  controller.
• Control knob check on what happens
• Feedback - closed loop model
• Information about results is fed back to
  controller to close the loop

I like it hot can adjust till its right
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Non-adaptive control - pre-set

• Effort to set up correctly
• Assume subsequent checking not needed
• Feed forward or open loop control. Controller
  predicts action needed in advance
• Loop is not closed by checking results

Ouch, turn it off, turn it off! Who set the
thermostatic valve? Idiot!!!!
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Chaos - why too much order is problematic

• Being over orderly can exclude the chaotic
  elements
• Novelty
• Discontinuous change (stop/start, never finish
  one thing before start doing another)
• Innovation
• Experimentation
• Entrepreneurship
• Self-organisation
• Creativity

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Complex adaptive systems

• A system
• A frog
• Interconnecting parts functioning as a whole
• Changes if you take away pieces or add more
  pieces
• The arrangement of the pieces is crucial
• The parts are connected and work together
• Its behaviour depends on the total structure.
  Change this and the behaviour change

• A heap
• Essentially unchanged by adding or taking away
  pieces
• Arrangement of pieces is irrelevant
• Parts not connected can function separately
• behaviour (if any) depends on its size or number
  of pieces in the heap.
• Many organisations are not on the left
• A dissected frog?

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Emergence

• Systems have emergent properties - not found in
  their parts. Cannot predict the properties of the
  whole by taking it to pieces analysing its
  parts.
• Synergy - the whole gt sum of the parts 2 2 5
• Often we leave the customer to manage most of the
  complexity.
• Different supply chain - different property
  issues
• Different traffic management, often unpredictable
  traffic flows.

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Evolving complex adaptive systems

• Self-maintenance . The system establishes itself
  to to rebuild itself the rest of the
  environment
• Adaptivity .. the system
• maintains its own internal equilibrium for a
  steady environment,
• also adapts to small scale environmental changes
  to enhance its chances of further existence
• Organismic organisation can absorb energy from
  environment to maintain grow.

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Socio-Technical Perspective
how the "technology" is physically constructed
thru. actor choices decisions. Technology is
not immutable but a dependent variable contingent
on other forces in the organisation, esp.
powerful actors. Argues that outcomes such as
job satisfaction or productivity can be
manipulated by optimising the fit between social
technical factors. Assumption when a
technology is designed to optimise the
"socio-technical fit", a "better" performance
inevitably results.
What applications?
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Social Constructionist perspective

• how the shared interpretations of the "meaning"
  of a technology arise affect the development
  of interaction with that technology.
• useful in examining how the meaning of a
  technology is created sustained
• underplays the material structural aspects of
  the technology.

What applications?
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Marxist Perspective
Focus how a technology is deployed to further
the political economic interests of powerful
actors. The concern social construction of
technology at the point of initiation gt the point
of use. Managers and/or designers seen as having
the authority ability to shape the technology
with users workers relatively powerless.
Braverman perspective
What application does this have? Are we
truly enslaved exploited in this way?
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Questions

• Evaluate the extent to which systems
  contingency theory is more theoretically robust
  and useful to the change agent than both
  classical and human relations approaches to
  organisational change? Offer examples to support
  your argument.
• Discuss the view that a systems perspective on
  organisational change
• offers managers little, by way of direct help, in
  managing the pressures for change that arise at
  strategic, operational and team/individual
  levels.
• merely seems tell managers , "be aware of the
  nature of strategic choice and be good at
  politicking ".
• Bennis offered reasons for the "Death of
  Bureaucracy". From a systems and contingency
  management perspective, evaluate whether the
  bureaucratic form remains a significant problem
  for organisational performance and control today.
  How might change agents try to improve a creaky
  bureaucracy.