Systems
approaches
Chapter 4
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-feedbackenvironment
Balance between the whole & individual
parts is crucial
Synergy-sum of whole >than sum of parts
SYSTEMS MODEL
(Kreps)
Environment
Energy
from the
Environment
Input
Transformation
Feedback
Output
System Basics

System components
– Hierarchical ordered
– Interdependence
– Permeability
– Equilibrium
– Adaptation

System processes
– Exchange processes
– Feedback processes
– Transformation processes
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
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
Cybernetics Systems
Theory
Study of regulation and control
 Corrective Feedback to maintain system
 Components

– System goal
– Mechanisms
– Feedback
– System behavior
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
Weick’s Theory of
Organizing

Organizing
– All activities are designed to reduce
equivocality
– Enacted environment
– Members construct meaning through
interaction
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
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

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.
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/draftfifteen.html)
Congruence Model
(Nadler & Tushman)
Input
Output
Informal
Organization
Environment
System
Formal
Organization
Strategy
Work
Resources
History
Unit
People
Individual
Methods for studying
organizational systems

Modeling techniques

Network analysis
– Properties of networks and links
– Network roles-more than one role in a
network
Summary