1. Systems approaches Chapter 4

2. Organization as a system A open, complex set of interdependent parts that interact to adapt to a constantly changing environment to achieve its goals (Kreps) Metaphor-biological reference Input-throughput-output-feedback- environment Balance between the whole & individual parts is crucial Synergy-sum of whole >than sum of parts

3. Energy from the Environment InputTransformationOutput Environment Feedback SYSTEMS MODEL (Kreps)

4. System Basics System components –Hierarchical ordered –Interdependence –Permeability –Equilibrium –Adaptation System processes –Exchange processes –Feedback processes –Transformation processes

5. System properties Holism –System is more than the sum of its parts Negative Entropy –Ability to sustain and grow Complexity –The more a system grows, the more it develops

6. System properties  Equifinality -More than one way to achieve a goal or task  Requisite variety -Organization has to be as complex as the environment it is in

7. Cybernetics Systems Theory Study of regulation and control Corrective Feedback to maintain system Components –System goal –Mechanisms –Feedback –System behavior

8. Weick’s Theory of Organizing Organizations are something individuals accomplish through interaction Organizing –Not just structure but activities consisting of communication –All organizing activities consist of behaviors that are interlocked through communication

9. Weick’s Theory of Organizing Organizing –All activities are designed to reduce equivocality –Enacted environment –Members construct meaning through interaction

10. Weick’s Components Environment Enactment –How you make sense of the environment Equivocality –Assembly rules-guidelines to reduce equivocality –Communication cycles Retention –Causal maps-used to make sense of future equivocality in the informational environment

11. New Science Systems Theory Chaos theory Order emerges from disorder, not linear or logical process Systems don’t strive for equilibrium Complexity and chaotic nature of organizational systems means emergence of innovation, form, and processes

12. The Congruence Model The higher degree of fit (congruence) among organizational components, the more effective the organization. Fit = Alignment of strategy, work, communication, people, structure, culture) Interdependence is critical Transformation = the work & business processes that convert resources into offerings (Consider input and output) “The greater the total degree of congruence (fit) among organizational components, the more effective the organization will be.

13. Definitions of Fit Individual-Organization (Culture) –Individual-Work –Individual-Informal Organization –Work-Organization –Work-Informal Organization –Organization-Informal Organization *Application to change in organization ( http://www.people.hbs.edu/rdornin/draft- fifteen.html)

14. Input Environment Resources History Work Formal Organization Informal Organization People Output System Unit Individual Strategy Congruence Model (Nadler & Tushman)

15. Methods for studying organizational systems Modeling techniques Network analysis –Properties of networks and links –Network roles-more than one role in a network

16. Summary