Organizational Information Theory

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Organizational Information Theory
--Organizations are marked by the process by which they collect,
manage, and use information.
--InformationSensemakingCoordinationDecisions
All of this dependent on communication.
--Change is inevitable. Organizations that adapt to change survive,
those that don’t, die.
TWO RELATED THEORIES
1. Systems Theory: Organizations as systems--wholeness,
interdependence, etc.
Tight Coupling: Change in one element = specific change in
another
Loose Coupling: Change in one element, might have some
impact on another
2. Evolution (Socio-cultural):--Adapt or die.
Three stages of the socio-cultural aspect:
1) recognize differences/variations in expectations/norms for
your behavior held by you and by others (bosses, etc);
2) consider options and select the most socially appropriate,
3) if accepted, retain and repeat behavior.
Assumptions of Organizational Information Theory
1. Human organizations exist in an information environment.
2. The information an organization receives differs in terms of
equivocality.
3. Human organizations engage in information processing to
reduce equivocality.
Equivocality = the extent to which organizational messages are
uncertain, ambiguous, and/or unpredictable.
Information Environment = Availability of all stimuli: information.
Two tasks organizations have:
--interpret external information from information
environment
--coordinate the information to make it meaningful to
members
Information Equivocality: How do organizations reduce
equivocality?
--Organization must make sense out of equivocal information.
--Departments, individuals, committees, etc. created to handle
specific information
--Need to find the right person(s) to make sense out of equivocal
information--route the equivocal message to the person who
can make sense of it.
Requisite Variety: The more complex the information, the greater
number of “interpreters” needed to insure sensemaking.
Rules = guidelines an organization follows for handling equivocal
messages/information.
Examples of Typical Rules
Duration--rule about how quickly
Personnel--who deciphers
Success--re-use what worked in the past
Effort--rule to use the least amount of resource/effort
Cycles = series of communication behaviors that serve to reduce
equivocality (patterns, roles, norms, formal and informal
structure/networks, hierarchy)
Three Stages: An ActA ResponseAn Adjustment
Double Interact Loops: the use of multiple cycles to reduce
equivocality
Principles of Equivocality (like Uncertainty Reduction)
1. An organization must analyze the relationship among the
equivocality of information, the rules the organization has for
removing equivocality, and the cycles of communication that
should be used
2. If the organization has only a few rules that assist in reducing
equivocality, a greater number of cycles will be needed.
3. The more cycles that are used to obtain additional information
and make adjustments, the more equivocality is removed.
Reducing Equivocality
Enactment: making the effort to reduce equivocality--activating
the sensemaking
Selection: Application of the rules and cycles
“Retroactive Sensemaking.” Application of the rules and cycles.
Organizational reflection and self-analysis--make sense out of
what happened.
Retention: Collective memory allows people to meet goals
--Catch 22
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