Company LOGO Welcome to T205 P2 Block 4 Systems Thinking: Principles and Practice Dr Abdul Gani

Course Objectives T205 is designed to help you:. To take a situation that is of concern to you or some one else…. and use the systems ideas and techniques to analyze it … in ways that are informed by ideas from any other relevant area… so as to make it easier to understand what practical actions might be possible to meet your concern. It helps you to: Use tools, to explore the challenges, in the light of the concepts, so as to help those what action they might take.

Learning Objectives After going through the course you can:  Perceive what is going on  Get a reasonably balanced overview  Appreciate a range of viewpoints on a situation  Explore and map the interactions within the system  Identify possible interventions  Share this understanding with others

Learning Resources Web Zone Blocks: Block 1: Learning about System: TMA 1 &11 Block 2: Systems: You and Your relationships TMA 2 Block 3: Systems : Environment & Sustainability TMA 3 Block 4: Systems: Managing Organizations TMA 4 Block 5: Systems: Globalization & Organizations TMA 5 Block 6: Using Systems: Thinking for your own analysis TMA 6

Learning Resources…….. Concept Files: Concept File 1: Learning : Thinking and doing. Concept File 2: The Individual : Work place and Self Development Concept File 3: Groups and Teams at work Concept File 4: Managing within Organizations Concept File 5: Networks and the organizational Environments

Learning Resources…….. Systems Tool Box: (Packs) System tools box is provided in three packs: T551: System thinking and practice- A Primer T552: System thinking and practice- Diagramming T553: System thinking and practice- Modeling Case Files: Case File 1: Supermarkets Case File 2: The Environment Case File 3: The Millennium Bug Case File 4: Homelessness Other Resources: CD-ROM, Conferences, open library access, videos, audios.

Organization Block 4 Organization Organization is a structural process

Systems View of Organization  Organization exists to achieve goals  Organizations are rationally designed to achieve goals  People in organizations form a unitary Whole Organizations are rational, unitary and goal seeking (RUGS)

Set Objectives Act on ResultsCarry out Activities Monitor Progress Stages of Organization

Concepts of Goals 1. Official Goals & Operative Goals a. Official Operative Goals b. Non Official Operative Goals 2. Hard Goals & Soft Goals 3. Individual Goals & Management Goals

Objectives should be SMART S: Specific M: Measurable A: Agreed R: Realizable T: Timed Features of Objectives

Pyramid of Purpose Mission Goals Objectives Targets Why What How Broad Specific

Work Control Mechanism Scientific Management Alternative Approaches  Job Redesign  Job Enlargement  Job Enrichment  Team Work

Performance Related Pay Why PRP schemes are bound to fail?  Pay is not a motivator  Rewards are a covert form of punishment  Rewards disrupt teamwork  Other things affect performance  PRP discourages risk-taking  Rewards undermine interest

Long term Impact of Performance-related Pay fundamental belief in pay as motivator managers’ belief in PRP employees’ temporary compliance use of increased PRP incentives some employees get rewards jealousy, bitterness, rivalry reduced intrinsic motivation declining employee performance

Overlap between individual & organizational goals Organization’sgoals Individu al’s goals Area where formal controls provide incentive Area of congruence

The Control Mechanisms Continuum direct supervision standardize d processes standardize d outputs standardize d skills mutual adjustment s total independenc e DECREASING FORMAL CONTROL control Autonomy

Concepts of Control 1.Open Loop Control (feed forward) 2.Closed Loop Control (feed back)

Components of Open Loop Control InputInput ProcessProcess OutputsOutputs ActuatorsActuators GoalGoal Components of Closed Loop Control InputInput ProcessProcess OutputsOutputs ActuatorsActuators GoalGoal SensorsSensors ComparatorsComparators Feed back pathFeed back path

Process to make toast PROCESSINGSEQUENCE waste heat toast outputs inputs Goal: brown toast (not burnt or underdone) set timer (Actuator ) CONTROLSEQUENCE bread heat Open-loop control

PROCESSING SEQUENCE waste heat toast outputs inputs bread heat Process to make toast Goal: brown toast (not burnt or underdone) compare colour of toast with desired colour adjust timer (Actuator) Feedback path Check colour of toast CONTROL SEQUENCE Knowledge about the situation Closed-loop control

Organization Structure Organizational HierarchyOrganizational Hierarchy Vertical and Horizontal LinksVertical and Horizontal Links Radial InterdependenceRadial Interdependence Sequential InterdependenceSequential Interdependence Reciprocal InterdependenceReciprocal Interdependence

Pooled or radial Sequential Reciprocal interdependence interdependence interdependence interdependence interdependence interdependence

Designed and Emergent Structure The Role of Hierarchy Different Views Of Structures  Official Map  Informal Structures  Personal View Points Bureaucracy-Taylorist Scientific Management Approach  Roles Hierarchaly arranged  Work Well Defined  Heavy Reliance On Rules, Procedures  Chain of command

Coping with Uncertainties Structural ChangeStructural Change Reduction of Hierarchy's loadReduction of Hierarchy's load Increasing Hierarchy's CapacityIncreasing Hierarchy's Capacity

LOW UNCERTAINTY HIGH UNCERTAINTY GROWING UNCERTAINTY Rely on rules and programmes Exceptions dealt with by the hierarchy Develop load managing strategies Coping with increasing uncertainty

The Chaos Theory Different possible stationary states  Different possible stationary states  Different possible cyclical states  Chaotic motions of various kinds

Remedy  Top Down Approach, engineered or goal oriented change  Bottom up Approach, process oriented or participative change  Organizational development (OD a ‘democratic’ or ‘Theory Y’ philosophy of management)  Total Quality Management (TQM) Failure of Organizational Structures

Total Quality Management (TQM) Fundamental Principles  Customer Focus (external and internal)  Process Improvement (every stage considered)  Total Improvement (everyone involved) Supporting Elements  Leadership  Education& training  Supportive Culture  Communication  Reward & recognition  Measurement

The Holographic Organization Hierarchical structures & image of human machine Holographic image of brain Principles of Holographic Design  Redundant Functions  Requisite variety  Minimum critical specification  Learning to learn

HOLOG RAPHIC ORGANI ZATION Learning to learn Redundancy of functions Minimum critical specification Requisite variety Principles of Holographic Organizational Design

Organizational Learning  Single loop Learning (via institutionalized IS)  Double loop Learning (failed with bureaucratic organizations approaches  Double loop Learning (failed with bureaucratic organizations approaches) How to facilitate Learning to Learn  Facilitate Openness  Explore different Viewpoints  Do not Impose Structures of action  Create structures and processes to facilitate above Japanese Ringi as an Example

Influence of organizational climate on capacity to learn The defensive climate  Keep your views of sensitive issues private  Do not surface and test differences in views of organizational problems  Avoid seeing the whole picture  Protect yourself unilaterally  Protect others unilaterally  Control the situation and the task The supportive climate  Bring sensitive issues to the surface, and encourage others to do so  Ensure differences of view are publicly tested  Bring together dispersed information and clarify vague data  Do not avoid interpersonal confrontation  Make protection of oneself and others  Control the task jointly

 Role Cultures  Power Cultures  Task Centered Cultures  Person Centered Cultures Types of Organizational Culture

Bates’ Six Factors of Organizational Culture  Unemotionality  Depersonalization of Issues  Subordination  Conservativesm  Isolation  Antipathy

Six dimensions of organizational culture 1.Transformation orientation vs. output orientation 2.People orientation vs. task orientation 3.Organizational orientation vs. occupational orientation 4.Open vs. closed communication climate 5.Loose vs. tight internal control structure 6.Normative vs. market (i.e. customer) driven orientation

Decision Making  Concept  Metaphors used for Decision Making Approaches to Decision Making  Analytical Approaches  Negotiated Approaches  Incremental/ Emergent Approaches

How Decisions are Made?  Rational Decision Making  Rational Choice when one can only guess at outcomes  Rational Choice when not sure about preferences  Rational Choice as a resolution of conflict  Decision Making by rule  Opportunistic Decision Making  Decision Making as a symbolic Event  Decision Making and information gathering

Decision Making & Freedom of Choice Welfare state VS Free Market Decision Making Notions  Understanding  Possible Course of action  Choice among possible actions Limits to freedom of Choice  Poor self Image  Differences in Power  Poor understanding  Diagrammes can hide/reveal choices  Influence is Negotiable

Uses and abuses of Information  Uses  Abuses  Historical data  Cost consideration  Uncertain future

Tactics of Strategic Opportunism  Habits of Thinking  Collecting Ideas  Creating a Vision  Summarizing  Ways of Acting  Plan less by Design  Binding to Goals  Piecing the Puzzle  Sinning bravely

Management of Change  Change Agents  Why Resistance to Change? Managing Change  Organizational Level  Group Level  Individual Level Role of Champions and Sponsors Two Case Studies--- your Home work  Why my former employees still work for me?  How to run a cotton-mill?

Next Session Readings for the Next Session 1.Block 5 of Web zone CD Rom 2.Concept file 5: 3.T 551: Diagramming 4.T 552: Modeling 4. Case File 1: Supermarkets Case File 2: The Environment Case File 3: The Millennium Bug Case File 4: Homelessness

Thank You Thank You  