Organization theory and design 12 2013

organization @TC 2013

12 การสร้างและออกแบบ Cybernetics, Viable System


หัวข้อบรรยาย/กรณีศึกษา 11 Organizing for Innovation C 8: Harvard Business Case / 3M Optical Systems : Managing Corporate Entrepreneurship 12 การสร้างและออกแบบ Cybernetics, Viable System C 9 : Harvard Business Case / Sun Hydraulics Corporation (A&B) 13 การสร้างและออกแบบ learning Organization/กระบวนการเรียนรู้ C 10 : Harvard Business Case / McKinsey & Company : Managing Knowledge and Learning 14 Control system C11: Harvard Business Case / Verizon 15 สรุปปิดการบรรยาย or guest speaker


Features of the VSM

•  Based on the structure of the human nervous system •  Five levels or functions •  The five functions recur at each level of organization


Concerns of the Viable System Model

•  Make sure that the knowledge and skills needed are available •  Be sure that the information needed to make decisions is available •  Design an organization that is adaptive







Ashbean Cybernetics

•  The Homeostat - ultra-stable system capable of returning to stability after it has been disturbed in a way not envisaged by the designer.

•  Self-vetoing homeostasis •  “Variety Engineering”

–  The notion of balancing the varieties of systems with different variety levels

–  Environment - huge variety –  Operation - much less variety –  Management - even less variety

•  Achieved through attenuation and amplification •  The Law of Requisite Variety control can only be

attained if the variety of the controller is at least as great as the situation to be controlled.

KeyV = Variety

Environment

V V

System

Man agem en tUn it

V

= Attenuation = Amplification


12

Viable Systems Model (Stanfford Beer; VSM)

Future Environment สภาวะ/เงื่อนไข

ในอนาคต

Local Environment สภาวะท้องถิ่น

Environment สภาวะแวดล้อม

(ภายนอก)

S2 Coordination หน่วยประสาน

Control หน่วยควบคุม

S3

Intelligence หน่วย ข่าว-วิจัย-ออกแบบ S4

Identity สิ่งยึดเหนี่ยว S5

Audit สอบภายใน-ประเมินผล

S3*

ระบบบริหารงานองค์กร

Operational Elements หน่วยปฎิบัติระดับต่างๆz

S1

สภาวะแวดล้อมการทํางาน (ภายใน)

การต

ิดต่อ-สื่อ

สาร

S1

S1


The five functions

• System five – controls the rate of innovation, defines the organization’s values

• System four – does long-range planning, designs the next product or service

• System three – middle management, defines a “resource bargain” with the system ones

• System two – coordinates the producing units • System one – the producing units


Managerial Cybernetics

•  Beer’s VSM implements a control & communication structure via hierarchies of homeostats (feedback loops)

•  6 major systems ensure ‘viability’ of the system

–  Implementation S1 –  Monitoring S2 –  Audit S3* –  Control S3 –  Intelligence S4 –  Policy S5

•  Offers an extensible, recursive, model-based architecture, devolving autonomy to sub-systems

Here and Now

Future

Homeostasis

Name of the Viable System in Focus:

The Viable System M odel

Format © S. Beer 1985

FIVE - Policy

System FOURExte rnal & F utureS elf-referenceS imula tionP lann in g

System THREEInte rna l & CurrentS elf-organizat io nAuton omic regu la tion

ONE

ONE

ONE

LocalRegulatory

LocalRegulatory

LocalRegulatory

System TWOanti-oscillatory

System THREE*Sporadic Audit

TWO Localanti-oscillatory



Future

TOTALEnvironment

Direction



Environment

Management

Operations

The challenge is to balance the varieties of operations & environment and management & operations via appropriate attenuators and amplifiers.

Information

Actions

Information

Actions

Variety of Environment

Variety of Operations

Variety of Management » »

Variety needs to be managed actively along all communication channels

Variety engineering

To attenuate variety: §  Standardize communication §  Standardize processes §  Ignore unimportant information §  Filter unnecessary details §  Deal with exceptions only §  Aggregate similar cases §  Model the environment behavior §  Model the organization behavior

To amplify variety: §  Empower subordinates §  Hire more employees §  Train existing employees §  Hire more experienced employees §  Cooperate with external agents §  Customize product/service offerings §  Multiply product/service options §  Combine multiple products/services


Environment

Present

Op Unit 1

Op Unit 2

Op Unit 3

System 1 Operation

Regulatory capacity of the basic units, autonomous adaptation to their environment, optimization of ongoing business

The Viable System Model



Environment

Present

Op Unit 1

Op Unit 2

Op Unit 3 Coo

rdin

atio

n

System 2 Coordination

Amplification of self-regulatory capacity and attenuation to damp oscillations and coordinate activities via information and communication




Control System 3 Control

Establishment of an overall optimum among basic units, providing for synergies as well as resource allocation

Environment

Coo

rdin

atio

n

Present

Op Unit 1

Op Unit 2

Op Unit 3



Repeat of the System One units with the addition of Systems Two, Three, and Three Star (Beer, 1979; modified)

OperationOne A

OperationOne B

OperationOne C

PresentEnvironment

LocalEnviron-

ment

LocalEnviron-

ment

LocalEnviron-

ment

ManagementOperation

One A

ManagementOperation

One B

ManagementOperation

One C

3* System 3 2

OperationOne A

OperationOne B

OperationOne C

PresentEnvironment

LocalEnviron-

ment

LocalEnviron-

ment

LocalEnviron-

ment

ManagementOperation

One A

ManagementOperation

One B

ManagementOperation

One C

3* System 3 2


Environment

Coo

rdin

atio

n

Control

Present

Op Unit 1

Op Unit 2

Op Unit 3

Future

Intelligence System 4 Intelligence

Dealing with the future, especially the long term and with the overall outside environment, diagnosis and modeling of the organization in its environment




Environment

Intelligence

Coo

rdin

atio

n

Control

Present

Future

Op Unit 1

Op Unit 2

Op Unit 3

Policy System 5 Policy

Balancing present and future as well as internal and external perspectives; moderation of the interaction between Systems 3 and 4; ascertaining the identity of the organization and its role in its environment; embodiment of supreme values, rules and norms - the ethos of the system




Environment

Management

Operations

Operational Unit Operational Unit Operational Unit

Management

Operations


Op Unit Op Unit Op Unit

Management

Operations Op Unit Op Unit Op Unit

VSM works recursively: §  Each of the operational units is a viable system in its own right. §  The organization is itself a part of a larger viable system.

Recursive Architecture


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“Hierarchy of Needs” for adaptive systems   Operations activities are revolving around lifecycle and events, while management activities are revolving

decisions.   Adaptive and operational layers are called the “hierarchy of needs” for an adaptive system. They represents a

measure of complexity for information processing.

Information Complexity
