The document discusses new organizational models for the 21st century based on principles from nature. It describes fractal organizations as self-similar, self-organizing units that are connected in a network. Fractal enterprises allow for independent, customer-focused teams that cooperate like natural systems. The document also discusses lean management, the theory of constraints, bionic systems, holonic manufacturing, and chaordic organizations as approaches inspired by nature's patterns of spontaneity, mobility, and harmony.
This document discusses organizations and the world of organizations from a psychological perspective. It begins by defining an organization as a social unit created for a specific purpose. It views organizations as open systems that take inputs from the environment, transform them, and provide outputs. Key subsystems of organizations include goals, technical, managerial, and structural.
It also discusses organizational climate, defined as the atmosphere or quality of an internal work environment. Determinants of climate include organizational structure, technology, external environment, and management policies. Interpersonal relationships at work, including between supervisors and subordinates and among coworkers, are also examined. The importance of communication and factors influencing individual productivity and organizational excellence are outlined.
A description of the term "self-organization" and how it relates to management (which includes governance and leadership).
http://www.noop.nl
http://www.jurgenappelo.com
From Now to New Right Here: Change-as-Flipping (BetaCodex16) Niels Pflaeging
BetaCodex Network White Paper No. 16. March 2019
Authors: Niels Pflaeging & Silke Hermann
A white paper about the alternative to "change management" as we know it. Change is more like adding milk to coffee!
11th paper from the BetaCodex Network, on organizational structures and how they interact. This paper was previously entitled "The 3 Structures of an Organization". It was renamed February 2013.
The document presents an alternative to traditional people management models called the fractal organization. It argues that traditional models are based on wrong assumptions like seeing humans as resources rather than ends in themselves. A fractal organization structure is proposed that is open, complex and alive like natural systems. Key principles of the fractal model include autonomy, meaning and reciprocity. It is argued that this model respects human beings more and leads to a more sustainable society.
Secrets of Very Fast Organizational Transformation (BetaCodex15)Niels Pflaeging
This document discusses principles of very fast organizational transformation (VFOT). It argues that profound organizational change is possible within a few months, not years, if the right approaches are used. These approaches are principle-based and timeboxed. Being principle-based means the approaches are specific but allow for interpretation, and principles must be agreed upon by the group. Being timeboxed means setting clear time boundaries for periods of change work, such as 90 days, to create safety and focus. The document outlines origins of VFOT in agile concepts, systems theory, and large group methods. It argues that principle-based and timeboxed approaches allow for robust, reliable and self-organizing transformation within a social system.
The document discusses several key challenges in changing large systems, including complexity, non-linearity, delays, and scale issues. It outlines a 7-step process for changing systems: understand the system, identify leverage points, develop ways to influence leverage points, build relevant competencies, test interventions, study results, and develop strategies for scaling up successes. Finally, it discusses different levels of analysis for systems change work and some common tools and approaches.
Organize for Complexity, part II (BetaCodex13) Niels Pflaeging
This document discusses designing organizations to be robust and adaptable in complex environments. It argues that organizations should be viewed as networks rather than hierarchical pyramids. Key points made include:
- Organizations function as informal networks of individuals and formal networks of value-creating teams.
- Decision-making should be decentralized to allow organizations to sense and respond to their environments.
- Organizations should be designed as decentralized cell structures with autonomous peripheral cells connected by "strings" and served by central support cells.
- Transparency, relative targets, and result-based cultures better support adaptability than command-and-control approaches.
This document discusses organizations and the world of organizations from a psychological perspective. It begins by defining an organization as a social unit created for a specific purpose. It views organizations as open systems that take inputs from the environment, transform them, and provide outputs. Key subsystems of organizations include goals, technical, managerial, and structural.
It also discusses organizational climate, defined as the atmosphere or quality of an internal work environment. Determinants of climate include organizational structure, technology, external environment, and management policies. Interpersonal relationships at work, including between supervisors and subordinates and among coworkers, are also examined. The importance of communication and factors influencing individual productivity and organizational excellence are outlined.
A description of the term "self-organization" and how it relates to management (which includes governance and leadership).
http://www.noop.nl
http://www.jurgenappelo.com
From Now to New Right Here: Change-as-Flipping (BetaCodex16) Niels Pflaeging
BetaCodex Network White Paper No. 16. March 2019
Authors: Niels Pflaeging & Silke Hermann
A white paper about the alternative to "change management" as we know it. Change is more like adding milk to coffee!
11th paper from the BetaCodex Network, on organizational structures and how they interact. This paper was previously entitled "The 3 Structures of an Organization". It was renamed February 2013.
The document presents an alternative to traditional people management models called the fractal organization. It argues that traditional models are based on wrong assumptions like seeing humans as resources rather than ends in themselves. A fractal organization structure is proposed that is open, complex and alive like natural systems. Key principles of the fractal model include autonomy, meaning and reciprocity. It is argued that this model respects human beings more and leads to a more sustainable society.
Secrets of Very Fast Organizational Transformation (BetaCodex15)Niels Pflaeging
This document discusses principles of very fast organizational transformation (VFOT). It argues that profound organizational change is possible within a few months, not years, if the right approaches are used. These approaches are principle-based and timeboxed. Being principle-based means the approaches are specific but allow for interpretation, and principles must be agreed upon by the group. Being timeboxed means setting clear time boundaries for periods of change work, such as 90 days, to create safety and focus. The document outlines origins of VFOT in agile concepts, systems theory, and large group methods. It argues that principle-based and timeboxed approaches allow for robust, reliable and self-organizing transformation within a social system.
The document discusses several key challenges in changing large systems, including complexity, non-linearity, delays, and scale issues. It outlines a 7-step process for changing systems: understand the system, identify leverage points, develop ways to influence leverage points, build relevant competencies, test interventions, study results, and develop strategies for scaling up successes. Finally, it discusses different levels of analysis for systems change work and some common tools and approaches.
Organize for Complexity, part II (BetaCodex13) Niels Pflaeging
This document discusses designing organizations to be robust and adaptable in complex environments. It argues that organizations should be viewed as networks rather than hierarchical pyramids. Key points made include:
- Organizations function as informal networks of individuals and formal networks of value-creating teams.
- Decision-making should be decentralized to allow organizations to sense and respond to their environments.
- Organizations should be designed as decentralized cell structures with autonomous peripheral cells connected by "strings" and served by central support cells.
- Transparency, relative targets, and result-based cultures better support adaptability than command-and-control approaches.
Transformation as Social Movement (BetaCodex04)Niels Pflaeging
The document discusses the differences between traditional change initiatives and the "Double Helix transformation" approach. In traditional approaches, organizational change is considered separately from individual change. Decisions are made early by management before involving others. This often leads to resistance and failure to achieve goals. The Double Helix approach links organizational and individual change dimensions by involving all stakeholders before decisions to build understanding and support for change. It aims to decide on changes later in the process after creative input to better meet needs and ensure successful implementation.
The document discusses major technological transformations such as the Agricultural, Industrial, and Information Revolutions. It focuses on how the development and distribution of information has become central to productivity and power. The document discusses concepts like innovation, convergence, flow, and fractals. It emphasizes smoothing transitions between transformations and developing high-performance knowledge management systems. The goal is to help organizations leverage disruption brought about by technological advances through principles of natural order, convergence, and flow.
This document summarizes the evolution of management theory from scientific management to modern theories. It discusses early theories like scientific management and administrative management. It then covers behavioral, management science, and organizational environment theories. Key contributors and concepts are outlined for each theoretical approach. In total, the document provides a high-level overview of the major developments in management theory from the 19th century to present day.
This document provides an overview of Patrick Trottier's work in emergent change, emergent organizations, and emergent organizational development. It is presented in 3 parts, with part 1 focusing on emergent change. Key points include: emergent change is the continuous formation of patterns that create real-time change; emergent change occurs differently in open versus closed systems; and emergent change, along with new technologies, allows for the creation of emergent organizations and new approaches to organizational development. The document introduces concepts to be further explored in the upcoming parts 2 and 3.
An attempt at investigating how complexity theory can be applied to further improve thinking in Lean software development.
http://www.noop.nl
http://www.jurgenappelo.com
The “Course Topics” series from Manage Train Learn and Slide Topics is a collection of over 4000 slides that will help you master a wide range of management and personal development skills. The 202 PowerPoints in this series offer you a complete and in-depth study of each topic. This presentation is on "Models of Management".
The MTL Professional Development Programme is a collection of 202 PowerPoint presentations that will provide you with step-by-step summaries of a key management or personal development skill. This presentation is on "Models of Management" and will take you through some of the principal models of management of the last 100 years.
The Big-Ass View on Competence (and Communication)Jurgen Appelo
This is an alternative version of "On the Road to Competence", with some stuff added about organizational structure.
http://www.noop.nl
http://www.jurgenappelo.com
The future of 21st century global educationjoyce pittman
The presenter discusses the relationships between systems thinking, leadership and sustainability in complex learning organizations: Implications for new educational leadership research and development.
The document provides an overview of the historical roots and evolution of modern management practices from ancient times to the present. It discusses influential early thinkers like Adam Smith and developments like the Industrial Revolution that shaped new management approaches. Major 20th century frameworks are also summarized, including scientific management, bureaucracy theory, human relations movement, and contingency theory.
Different Perspective On Organizational CommunicationSol Erwin Diaz
The document discusses different perspectives on organizational communication including the systems perspective. It provides an overview of key aspects of systems theory as applied to organizations, including that a system is made up of interdependent parts, organizations exist within environments they interact with, and goals and processes involve feedback. It compares scientific management and systems theories, noting systems theory focuses more on complexity and relationships between components rather than efficiency.
The idea of management is not new; managing is an inbuilt character of human beings. Early forms of management concepts have been applied throughout history in order to progress as a society. We see beautiful creation from Stone Age to civilization – could those creations such as monuments and cities be in place without management? Management activities were always needed in order to complete massive projects. The Industrial Revolution as well as the growth of factories and mass production created a need for strong management processes. Better and more efficient ways of manufacturing goods were needed in order to maximize productivity, bring down costs, and increase profitability. As a result, since the late 1800’s, theorists have developed a wide range of methods for improving management practices
The document discusses two new technologies, radar and VHF radio, that emerged in 1941 and had the potential to enhance situational awareness for the U.S. Navy. However, during initial battles they instead created confusion by overloading officers with too much uncorrelated information. Admiral Nimitz advocated for self-organization and experimentation to better utilize the technologies. This led ships to form multi-disciplinary teams to centralize information processing, which emerged as the Combat Information Center and improved coordination.
This document discusses techniques for organizational transformation based on the authors' experience with management model transformation projects. It outlines underlying assumptions of their approach, including treating organizations as systems and focusing on human nature. The document then details specific techniques used in projects, such as knowledge turn tables, storytelling tools like "Our Iceberg is Melting", and social networking platforms. It emphasizes empowering organizational members to lead the transformation themselves.
The document discusses the evolution of management theories from scientific management to human relations movement. It covers key contributors like Taylor, Fayol, Mayo, and Weber who developed theories like scientific management, bureaucracy, and human relations. Their theories focused on improving efficiency and productivity through principles like dividing work, unity of command, and understanding group dynamics and social factors. Systems theory also viewed organizations as open systems that interact with their environment.
This document summarizes the evolution of management perspectives over time from the classical perspective in the late 19th century to more recent developments. It traces the development of scientific management, administrative principles, bureaucratic organizations, and humanistic perspectives. Later perspectives included management science, systems thinking, and contingency views of adapting management styles to organizational contexts. The human relations movement emerged from the Hawthorne studies focusing on positive treatment of employees. Maslow's hierarchy of needs and McGregor's Theory X and Y also influenced human resources perspectives.
This document provides an overview of management principles and practices. It discusses key concepts from classical management thinkers like Taylor, Fayol, and Weber. It also summarizes more modern approaches like human relations theory, contingency theory, and systems theory. The document aims to give introductory ideas about basic management topics and encourage readers to use their knowledge to create social change as social entrepreneurs.
The document discusses organisation as a system from several perspectives. It begins by outlining how organisations have evolved over different industrial revolutions from feudal systems to modern digital organisations. It then describes key aspects of viewing an organisation as a system, including its components (inputs, processes, outputs, feedback), environment, and goals. Examples are provided of how the hospital system works. The systems approach provides a framework for understanding the interdependencies between organisational parts and adapting to internal and external forces. Questions are posed about applying this perspective to improve security or anticipate future organisational changes.
Systems thinking views problems as interconnected parts of a whole system rather than isolated events. It examines how local actions can impact the overall system and promotes organizational communication to avoid unintended consequences. A systems approach incorporates concepts like interdependence, holism, goal seeking, inputs/outputs, and feedback regulation. Businesses can be analyzed as internal systems that transform inputs like capital, labor, and resources into outputs through functional processes. They also interact with multiple levels of external environmental systems from political/legal forces to competitors to social/cultural influences that provide opportunities and threats.
Transformation as Social Movement (BetaCodex04)Niels Pflaeging
The document discusses the differences between traditional change initiatives and the "Double Helix transformation" approach. In traditional approaches, organizational change is considered separately from individual change. Decisions are made early by management before involving others. This often leads to resistance and failure to achieve goals. The Double Helix approach links organizational and individual change dimensions by involving all stakeholders before decisions to build understanding and support for change. It aims to decide on changes later in the process after creative input to better meet needs and ensure successful implementation.
The document discusses major technological transformations such as the Agricultural, Industrial, and Information Revolutions. It focuses on how the development and distribution of information has become central to productivity and power. The document discusses concepts like innovation, convergence, flow, and fractals. It emphasizes smoothing transitions between transformations and developing high-performance knowledge management systems. The goal is to help organizations leverage disruption brought about by technological advances through principles of natural order, convergence, and flow.
This document summarizes the evolution of management theory from scientific management to modern theories. It discusses early theories like scientific management and administrative management. It then covers behavioral, management science, and organizational environment theories. Key contributors and concepts are outlined for each theoretical approach. In total, the document provides a high-level overview of the major developments in management theory from the 19th century to present day.
This document provides an overview of Patrick Trottier's work in emergent change, emergent organizations, and emergent organizational development. It is presented in 3 parts, with part 1 focusing on emergent change. Key points include: emergent change is the continuous formation of patterns that create real-time change; emergent change occurs differently in open versus closed systems; and emergent change, along with new technologies, allows for the creation of emergent organizations and new approaches to organizational development. The document introduces concepts to be further explored in the upcoming parts 2 and 3.
An attempt at investigating how complexity theory can be applied to further improve thinking in Lean software development.
http://www.noop.nl
http://www.jurgenappelo.com
The “Course Topics” series from Manage Train Learn and Slide Topics is a collection of over 4000 slides that will help you master a wide range of management and personal development skills. The 202 PowerPoints in this series offer you a complete and in-depth study of each topic. This presentation is on "Models of Management".
The MTL Professional Development Programme is a collection of 202 PowerPoint presentations that will provide you with step-by-step summaries of a key management or personal development skill. This presentation is on "Models of Management" and will take you through some of the principal models of management of the last 100 years.
The Big-Ass View on Competence (and Communication)Jurgen Appelo
This is an alternative version of "On the Road to Competence", with some stuff added about organizational structure.
http://www.noop.nl
http://www.jurgenappelo.com
The future of 21st century global educationjoyce pittman
The presenter discusses the relationships between systems thinking, leadership and sustainability in complex learning organizations: Implications for new educational leadership research and development.
The document provides an overview of the historical roots and evolution of modern management practices from ancient times to the present. It discusses influential early thinkers like Adam Smith and developments like the Industrial Revolution that shaped new management approaches. Major 20th century frameworks are also summarized, including scientific management, bureaucracy theory, human relations movement, and contingency theory.
Different Perspective On Organizational CommunicationSol Erwin Diaz
The document discusses different perspectives on organizational communication including the systems perspective. It provides an overview of key aspects of systems theory as applied to organizations, including that a system is made up of interdependent parts, organizations exist within environments they interact with, and goals and processes involve feedback. It compares scientific management and systems theories, noting systems theory focuses more on complexity and relationships between components rather than efficiency.
The idea of management is not new; managing is an inbuilt character of human beings. Early forms of management concepts have been applied throughout history in order to progress as a society. We see beautiful creation from Stone Age to civilization – could those creations such as monuments and cities be in place without management? Management activities were always needed in order to complete massive projects. The Industrial Revolution as well as the growth of factories and mass production created a need for strong management processes. Better and more efficient ways of manufacturing goods were needed in order to maximize productivity, bring down costs, and increase profitability. As a result, since the late 1800’s, theorists have developed a wide range of methods for improving management practices
The document discusses two new technologies, radar and VHF radio, that emerged in 1941 and had the potential to enhance situational awareness for the U.S. Navy. However, during initial battles they instead created confusion by overloading officers with too much uncorrelated information. Admiral Nimitz advocated for self-organization and experimentation to better utilize the technologies. This led ships to form multi-disciplinary teams to centralize information processing, which emerged as the Combat Information Center and improved coordination.
This document discusses techniques for organizational transformation based on the authors' experience with management model transformation projects. It outlines underlying assumptions of their approach, including treating organizations as systems and focusing on human nature. The document then details specific techniques used in projects, such as knowledge turn tables, storytelling tools like "Our Iceberg is Melting", and social networking platforms. It emphasizes empowering organizational members to lead the transformation themselves.
The document discusses the evolution of management theories from scientific management to human relations movement. It covers key contributors like Taylor, Fayol, Mayo, and Weber who developed theories like scientific management, bureaucracy, and human relations. Their theories focused on improving efficiency and productivity through principles like dividing work, unity of command, and understanding group dynamics and social factors. Systems theory also viewed organizations as open systems that interact with their environment.
This document summarizes the evolution of management perspectives over time from the classical perspective in the late 19th century to more recent developments. It traces the development of scientific management, administrative principles, bureaucratic organizations, and humanistic perspectives. Later perspectives included management science, systems thinking, and contingency views of adapting management styles to organizational contexts. The human relations movement emerged from the Hawthorne studies focusing on positive treatment of employees. Maslow's hierarchy of needs and McGregor's Theory X and Y also influenced human resources perspectives.
This document provides an overview of management principles and practices. It discusses key concepts from classical management thinkers like Taylor, Fayol, and Weber. It also summarizes more modern approaches like human relations theory, contingency theory, and systems theory. The document aims to give introductory ideas about basic management topics and encourage readers to use their knowledge to create social change as social entrepreneurs.
The document discusses organisation as a system from several perspectives. It begins by outlining how organisations have evolved over different industrial revolutions from feudal systems to modern digital organisations. It then describes key aspects of viewing an organisation as a system, including its components (inputs, processes, outputs, feedback), environment, and goals. Examples are provided of how the hospital system works. The systems approach provides a framework for understanding the interdependencies between organisational parts and adapting to internal and external forces. Questions are posed about applying this perspective to improve security or anticipate future organisational changes.
Systems thinking views problems as interconnected parts of a whole system rather than isolated events. It examines how local actions can impact the overall system and promotes organizational communication to avoid unintended consequences. A systems approach incorporates concepts like interdependence, holism, goal seeking, inputs/outputs, and feedback regulation. Businesses can be analyzed as internal systems that transform inputs like capital, labor, and resources into outputs through functional processes. They also interact with multiple levels of external environmental systems from political/legal forces to competitors to social/cultural influences that provide opportunities and threats.
This document provides an overview of organizational design and development. It discusses key concepts such as what constitutes an organization, different organizational structures and models, factors that impact organizational design, and approaches to analyzing and changing organizational design. Some of the models and concepts discussed include the 7S model, mechanistic vs organic structures, open vs closed systems, centralization vs decentralization, and Mintzberg's classifications of organizational structures. The document also covers topics like demand forecasting techniques, trends and cycles, and statistical analysis methods for organizations.
The document discusses strategic approaches to management science. It begins by explaining the origins of management science in operational research groups during World War II. It then defines the management science approach as applying the scientific method to solve mathematical equations representing organizational systems. The document outlines key characteristics of the management science approach and contrasts it with scientific management. It also discusses related fields like operations management, management information systems, and attempts to integrate different approaches through contingencies theory and general systems theory. Finally, it covers some recent trends like Theory Z management and principles of excellent companies.
Social being an emergent theory of organizational performanceJoe Raimondo
1) The document proposes a new emergent theory of organizational performance that accounts for increasing complexity in the modern workplace.
2) It argues current models of human performance and cooperation are outdated and based on rationalist assumptions that no longer apply.
3) A new framework is needed that views organizations as complex systems and employees as social beings, in order to optimize human capital and productivity amid exponential change.
The document discusses Holacracy, a post-hierarchical organizational model. It describes Holacracy as a cultural operating system and agile governance model that allows for continuous participatory change. The goal of Holacracy is to design organizations as conscious living systems that define success as contributing to life's well-being, maximize people's potential, and consciously evolve over time.
VSM as a framework for understanding organizationsIffatCh
The document introduces the Viable System Model (VSM), created by Stafford Beer, as a framework for understanding organizations. The VSM views organizations as recursive systems composed of autonomous subsystems, each containing their own primary activities and support functions. This recursive structure enhances operational complexity and cohesion. The VSM provides five essential functions for organizational viability: implementation, coordination, control, intelligence, and policy. It offers a way for organizations to achieve both decentralization and cohesion to balance external and internal perspectives.
The brain new world - insights for organisations and strategyThe BrainLink Group
The document discusses using the human brain as an analogy to understand modern organizations operating in complex environments. It provides five key insights: 1) Limiting a reductionist approach and recognizing organizations as integrated wholes, 2) Understanding that organizations naturally resist change, 3) Appreciating the powerful non-conscious impact of organizational culture, 4) Valuing pausing before responding to allow new insights, and 5) Protecting self-regulation processes during periods of pressure. Viewing organizations through the lens of the brain provides a new way to develop strategy in today's uncertain world.
The document discusses several theories of organization:
1. Classical theory viewed organizations as machines and workers as cogs, with the goal of efficiency. Neoclassical theory emphasized good human relations and social factors.
2. Bureaucratic theory examines organizations as systems of rules and authority. Weber's theory of bureaucracy defined its key features.
3. Systems theory views organizations as complex systems of interrelated elements and environments. Changes in one element impact others.
4. Contingency theory posits that the best organization structure depends on external factors like environment, strategy, and technology. Different structures suit different situations.
This document summarizes the evolution of management thought from the late 19th century to present. It describes several approaches to management that developed over time in response to changing business needs and environments, including: scientific management, administrative management, human relations, behavioral science, management science, systems approach, and contingency approach. Each new approach built upon previous ones by further incorporating social, psychological, and situational factors.
The document provides background information on lean manufacturing and the Toyota Production System. It summarizes that traditional manufacturing systems have high inventory levels and long lead times, while lean systems based on Toyota aim to reduce waste and optimize flow. The core of lean is the Toyota Production System (TPS) which treats all processes as experiments to continuously improve. TPS creates a "community of scientists" using the scientific method to solve problems at all levels.
The document discusses key concepts in organization theory and management. It defines organizations and discusses how they are goal-oriented and designed systems that are linked to their external environment. It also examines theories of organizations, the role of management, and challenges facing public organizations, especially in developing countries.
Systems thinking views problems as parts of interconnected systems rather than isolated issues. It examines the relationships and interactions between system elements to understand why problems persist. Seeing systems holistically can reveal feedback cycles and delays that maintain problems. Systems thinking helps identify unintended impacts of solutions and shows how seemingly isolated issues are often interconnected. It is used in fields like engineering, healthcare, and management to better understand and optimize complex systems and problems.
The document outlines the key theories and approaches in the development of management, including:
- Scientific management pioneered by Taylor focused on efficiency and incentives.
- General administrative theorists like Fayol and Weber developed principles of bureaucracy and management.
- Quantitative, systems, and contingency approaches analyzed organizations scientifically.
- Current issues include globalization, ethics, diversity, e-business, and knowledge/quality management.
This document discusses a congruence model for analyzing organizational behavior. It begins by describing organizations as complex social systems with interdependent parts. The model identifies four key organizational inputs: 1) the environment which creates demands and constraints, 2) resources available to the organization, 3) the organization's history, and 4) its current strategy. The model analyzes how well an organization's parts "fit together" or are congruent to achieve effectiveness.
This document provides an overview of different theories of organization, including classical, neo-classical, modern, and contingency theories. Classical theories focused on structure and universal principles, viewing the organization like a machine. Neo-classical theories emphasized the importance of individuals and informal social systems within organizations. Modern system theories view organizations as goal-oriented systems transforming inputs to outputs through interconnected subsystems. Contingency theory posits that the most effective organizational design depends on external environmental factors and situations.
Management of a viable enterprise on the basis of the approach to management ...Igor Britchenko
The innovative vector of development is a modern approach to production, sales of services, etc., their adaptation to current societal requirements. It is provided by the transformation of scientific research and development, other scientific and technological achievements into a new or improved product, introduced to the market, into an updated or improved technological process, used in practice. Consequently, approaches to enterprise management are also transformed into modern realities and acquire shades of innovative approaches. Effective management is necessary to ensure the viability of enterprises, and new tools, methods and approaches to management are especially important here. The aim of the article is to develop theoretical provisions for the formation of a viability management system based on the concept of viable systems and the approach to managing an organization as a «living» system. The work identifies that effective viability management requires the creation of an organizational structure in an enterprise that will function as a «living organism». The representation of the enterprise system in the form of a living organism is considered. To form a holistic system of an enterprise, the systems of the human body are considered in more detail and the corresponding systems of the enterprise are determined. A set of functional subsystems of an enterprise by analogy with the systems of a living organism, the activity of which is interdependent, which ensures the stability of the «living organism» of the enterprise to the influence of external conditions has been formed. It has been determined, that in order to fully maintain the viability of an enterprise, it is necessary to study not only the «physical body» of the enterprise as a set of functional subsystems, but also its «soul» – corporate culture, which must be developed on the basis of paradigms of sustainable development and social responsibility.
This document discusses the history and evolution of management as a field of study. It describes how management emerged as a discipline during the Industrial Revolution to help coordinate the large organizations needed to enable mass production. Early contributors developed theories around scientific management and general administration. Later, human relations approaches emphasized the social aspects of organizations. Quantitative and systems approaches also influenced the development of modern management practices.
Organize for Complexity, part I (BetaCodex12) Niels Pflaeging
This document discusses organizing principles for dealing with complexity in organizations. It begins by summarizing Frederick Taylor's principles of scientific management, which divided organizations into "thinkers" (managers) and "doers" (workers). This created three gaps: a functional gap due to division of labor, a time gap due to separation of thinking and doing, and a social gap due to hierarchical control. The document then discusses the difference between complicated and complex systems, noting that only human beings can effectively deal with complexity. It argues organizations should move from command-and-control "Alpha" principles to self-organizing "Beta" principles based on cross-functional teams with transparency, peer pressure and shared goals. The key is empowering teams
An introduction to Agile Organisational ModelPierre E. NEIS
The document proposes an Enterprise Scrum model as an organizational framework for managing companies as complex adaptive systems. The model extends Scrum principles to an enterprise level by dividing work into value streams for value creation, research and development, and business as usual tasks. Teams work within a "safe-to-fail container" to deliver value through short iterations. Their work is aligned at monthly portfolio reviews to ensure coherence with the company's goals. The model aims to foster business agility, faster change, and innovation across all parts of the organization.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
XXI Century Organization
1. the xxi century Organization Solar Management System - the Fractal Organization in Practice Wojtek Luciejewski Warszawa, Osnabrück, Poznań, Ostercappeln (2001 – 2010)
2. Several years ago, when I published the first time in Internet "Primumnon Prodigere" I foresaw the necessity of wider look at organization of XXI Century and inclusion of the nature examples (e.g., new knowledge about Fractals).The present practice is proving this thesis.The acceleration of changes, which complicate our lives more and more, is shown on the next picture.
3.
4. Is Organization a Machine? The central most aspect of the scientific foundation upon which Taylor built his theory of management was a metaphor popularized by the 17th century French philosopher and mathematician Rene Descartes who looked at his world as a "clockwork universe.„ Taylor, as a devout Cartesian and as the best of his contemporaries, thus instilled in the mindsets of Western management the powerful and recalcitrant image of the machine.
5. Is Organization a Machine? The idea has become entrenched that the organizations we're supposed to be managing are physical instruments of production that humans engineered in the first place and are now being "re-engineered" in a misguided effort to solve their problems. The term alone attests to the depth to which mechanistic thinking has become embedded in our corporate psyches.
6. Is Organization a Machine? The robustness and endurance of the machine as the predominant metaphor of 20th century management practice is nothing short of amazing given the mounting evidence that it simply does not work.
7. „Machine” organizationstillingoodshape „We are products of the culture that we grew up in. When we live in machine organizations, we become part of them. Our organizations are not human or natural. They are machines. Machines are not designed to learn or accept feedback. They are inherently not responsive. When we are in them we treat each other like parts or things…. Some of us are so encultured by the old that we simply cannot imagine, or see, the reality of the new”.
8. „Machine” organizationstillingoodshape Our operational culture has a series of rules, incentives and punishments that reinforce the old metaphor. It is not easy for anyone inside a traditional organization to make the changes to the new metaphor as all these forces will come into play against them.
9. „Machine” organizationstillingoodshape All the rules of the old culture are based on the assumptions that the most important activity is control. The extension of this assumption is that if only we tried hard enough, we could control everything. This illusion seemed to work when we did not operate in a global society…..As we talk about being more responsive, more customer-focused and more flexible, let’s look at the real rules that govern most of our organizations. They work against these objectives.” According to „What is wrong with our concept of organization? Shifting our organizational metaphor from Machine to Nature” by Rob Paterson
10. Development of ManagementMethodologies FramkGilbreth– the follower of taylorism, studies of motions, the beginning of ergonomics LilianGilbreth– the use of film into studies of work, the humanitarianism Frederick Taylor – standardization of work, the conflict between employees contra management, studies of time norms TaichiOhno, Shigeo Shingo – Just In Time, Toyota Production System, World Class Manufacturing James Womack – Lean Manufacturing, Lean Enterprise EliahuGoldratt– Theory of Constraints Standards of technical drawings, tolerances, development of modern machines Eli Whitney – interchangeability of parts Edwards Deming, Joseph Juran– Statistical Process Control, TQM Henry Ford – assembly lines, flow of production, strategy 1850 1900 1950 2000
11. Some latestinitiatives Lean Management, TOC – Theory of Constraints, BMS – Bionic Management System, HMS – Holonic Manufacturing System, Chaordic Organization, Fractal Enterprise, Network Economy.
12. Lean Managementin short Lean Management proves to be the complete management methodology. It includes the basic idea (philosophy of efficient operation), systems of management and information as well as the set of tools for their construction.
13. Lean Managementin short The outstanding advantage of Lean Management is, that it shows the direction for improvements provided by the definition of Valueand Waste. Another distinctive advantage is the flexibility in operations resulting from the feedback mechanism incorporated into management system –EnterpriseKaizen(if properly implemented).
14. Lean Definitions Value– the potential delivered to the customer at the right time and for an appropriate prize, to be defined each time by the customer. Value is defined by the features of a product or service, their availability, cost and performance parameters. Waste – each single action which uses resources but does not create Value; or everything that increases the cost of a product without adding Value to it. EnterpriseKaizen – continuous improvement of all business activities.
15. Program Kaizen Program Kaizenshould be used to guide improvements (by announced contests and other initiatives) into more flexibility in production lines and shorter production cycles.
16. Weaknesses of Lean Management Companies whichimplement Lean Management very often suffer defeats. The reason seems to be the Japanese culture and its automotive roots. Western culture favor individualism and doesn’t endorse excessive rigor or genetic obedience. Lean Management tools are strongly oriented on highly mechanized processes and only to some extend can be used for service processes The trend of world economy indicates quite clearly, that manufacturing is loosing its significance for the benefit of service An attempt of an orthodox or forced implementation can only generate more damages then benefits. We shouldn’t however turn down Lean Management entirely. It is still the most comprehensive management philosophy and definitions of Value and Waste are universal.
17. Theory of Constraints Theory of Constraints is based on the premise that the rate of goal achievement is limited by at least one constraining process. Only by increasing flow through the constraint can overall throughput be increased. The five focusing steps aim to ensure ongoing improvement efforts are centered around the organization's constraints.
18. Theory of Constraints The steps are: Identify the constraint (the resource or policy that prevents the organization from obtaining more of the goal) Decide how to exploit the constraint (get the most capacity out of the constrained process) Subordinate all other processes to above decision (align the whole system or organization to support the decision made above) Elevate the constraint (make other major changes needed to break the constraint) If, as a result of these steps, the constraint has moved, return to Step 1. Don't let inertia become the constraint.
25. Holonic Manufacturing System These elements are called "holons," a word coined by combining "holos" (the whole) and "on" (a particle) following A. Koestler. In an HMS, each holon's activities are determined through the cooperation with other holons, as opposed to being determined by a centralized mechanism.
26. Holonic Manufacturing System Luckily for us this proposal was created for artificial organizational creatures such as fully automated production and in such case the use of an example of human behaviors makes sense. Because robots can be programmed only according to the better side the human being.
34. Chaordic Design Six Lenses onto Organization Organizational concept - Characterization of Participant relationships that all can trust to be just, equitable and effective in achieving the Purpose in accord with the Principles. Constitution - Codification of Concept specifying rights, obligations and relationships of Participants, giving rise to the organization as a legal entity. Practices - Activities, products and services through which Participants pursue the organization’s Purpose and create value. Excerpts from “The Chaordic Organization: Out of Control and Into Order” by Dee Hock, Founder and CEO Emeritus of VISA International
35. Centralized control is archaic and self-limiting.Diversity and innovation thrive where power and information are highly distributed.
36. Competition and collaboration, freedom and governance, individuality and community are not irreconcilable opposites.The greatest benefit comes when they are harmoniously blended without losing the distinctive strength of each.
37. True communities are held together by ethics–not forceand by the power of their shared beliefs, purposes, and identity.
49. ControllingExcerpts from “The Chaordic Organization: Out of Control and Into Order” by Dee Hock, Founder and CEO Emeritus of VISA International
50. Wacław Sierpiński WacławSierpiński (1882 – 1969) – prominent mathematician, studied also astronomy and philosophy. The ”Sierpinski Triangle” is a fractal named after him. He described it in 1915. This is one of the basic examples of self-similar sets, i.e. it is a mathematically generated pattern that can be reproducible at any magnification or reduction. Sierpinski Triangle
53. Computer tree This fractal was created through the use of one only mathematical formula 34
54. Example of iteration of the Mandelbrot Fractal Formula: z(n+1) = [z(n)]2 + c Subsequent approximations uncover different, but still similar features
55. IstheNaturefractal? Fractal geometry permits us to understand, how nature creates all its forms, which we can observe. The mountain formations, rivers, shores, the mammal's lung, vegetation and the blood circulation system, but and the surfaces of breakthroughs of metals as well as the growths and the falls of stock are fractals copying on many smaller levels of scale the main pattern. Fractals in effect behave like genetic algorithms permitting different species to reconstruct effectively essential functions. Let's take the example of a cloud - it constitute doubtless one the whole, but it is "full of holes" like a sponge, because it consists of countless quantity of microscopic drops of water and steam. It is separate the whole, but folded with many smaller the wholes, also separate. If "we will cut out" small piece of cloud, then we will receive something very similar to it. Development and the strength of computers permits us at present to see and better understand the law of evolution and what follows it laws of nature. 36
56. Fractal Enterprise Hans-JürgenWarnecke advanced the hypothesis of fractal enterprises as the near future of development of organization, where independent teams co-operate in network on principle customer - supplier so inside as outside the organization. The leading thought for fractal organization is the creation (in range of its competence) of the self - regulating organizational working groups. The superior computer informative and communication system should serve for tuning of the size of inputs and outputs.
57. Fractal Enterprise Fractal enterprise creates businesses within business, but also businessmen in enterprise. This corresponds better with the Western culture, which prefers the individuality. Prof. Warnecke did not propose practical solutions. We should remember however, that he wrote it in early 90s, when theWorld really started experiencing the influence of Internet and Globalization.
61. Fractals are connected into a network by an efficient system of information and communication. Fractals themselves determine the kind and scope of their access to the available data.
62. Fractals productivity is continuously measured and valued.Fractals have the attributes of the intelligent systems and react in an adaptive manner to every environment's influence.
63. New Rulesforthe NewEconomy 1)Embrace the Swarm. As power flows away from the center, the competitive advantage belongs to those who learn how to embrace decentralized points of control. 2) Increasing Returns. As the number of connections between people and things add up, the consequences of those connections multiply out even faster, so that initial successes aren’t self-limiting, but self-feeding. 3)Plentitude, Not Scarcity. As manufacturing techniques perfect the art of making copies plentiful, value is carried by abundance, rather than scarcity, inverting traditional business propositions. 4)Follow the Free. As resource scarcity gives way to abundance, generosity begets wealth. Following the free rehearses the inevitable fall of prices, and takes advantage of the only true scarcity: human attention. 5)Feed the Web First. As networks entangle all commerce, a firm’s primary focus shifts from maximizing the firm’s value to maximizing the network’s value. Unless the net survives, the firm perishes.
64. New Rulesforthe NewEconomy 6)Let Go at the Top. As innovation accelerates, abandoning the highly successful in order to escape from its eventual obsolescence becomes the most difficult and yet most essential task. 7)From Places to Spaces. As physical proximity (place) is replaced by multiple interactions with anything, anytime, anywhere (space), the opportunities for intermediaries, middlemen, and mid-size niches expand greatly. 8)No Harmony, All Flux. As turbulence and instability become the norm in business, the most effective survival stance is a constant but highly selective disruption that we call innovation. 9) Relationship Tech. As the soft trumps the hard, the most powerful technologies are those that enhance, amplify, extend, augment, distill, recall, expand, and develop soft relationships of all types. 10) Opportunities Before Efficiencies. As fortunes are made by training machines to be ever more efficient, there is yet far greater wealth to be had by unleashing the inefficient discovery and creation of new opportunities. Kevin Kelly, „New Rules for the New Economy, 10 Radical Strategies for a Connected World
75. ComplexAdaptiveSystems The subject of Complex Adaptive Systems has been studied for a long time in fields such as biology, cardiology, chemistry, computer science, demography, economics, mathematics, physics, game theory or meteorology.
76. ComplexAdaptiveSystems In the 70’s of the previous century, scientists from various fields discovered that different Complex Adaptive Systems share common features and may be effectively analyzed and examined as a group, despite their diverse origins.
77. ComplexAdaptiveSystems These systems include: biological species, cardiovascular systems, economy, human societies, neural systems, stock exchange or weather systems, to name just a few.
78. ComplexAdaptiveSystems Decentralized, competitive market – a classic example of the Complex Adaptive System - Adam Smith’s (1776) „invisible hand” manifests itself when the market participants reach the critical mass of self-organization.
79. The “Edge of Chaos”Where interesting things canhappen Agricultural revolution Industrial revolution Information/knowledge revolution First Second Bifurcation Bifurcation Mono-stability: evolution impossible Chaos Steady State Could apply to either a functional or programmatic design Organizations capable of evolving and adapting Opportunistic Regime “Edge of Chaos” Conducive to Self Organizing Systems Conducive to Complex Adaptive Systems Diagram courtesy of Dr. Linda Beckerman, Director of Systems Engineering, the ASSET Group, SAIC
80. Market – Sustained Disequilibrium? According to the neoclassical theory, the market naturally moves towards equilibrium by anticipating its participants’ logical behaviors. This kind of deductive thinking may be only justified for the certain market segments at a given time, because the current market have no one, but many equilibrium points.
81. Market – Sustained Disequilibrium? The observed contemporary complexity of problems enforce us to straying away from the deductive thinking. Inductive thinking – the market participants try to identify trends, interrelations and groups of phenomenon and then, through analogy to the past experiences, they try to anticipate the situation’s progress and search for optimal solutions. Process of co-evolution – system changes <–> the participants modify their behaviors what in consequence influences the changes of a system.
82. Market – Sustained Disequilibrium? In reality it is unreasonable to expect from the market participants the logical and rational behaviors. So different models of actions are created on the market and continuous evolution of the system is taking place. Market should be seen as the Complex Adaptive System and as such can not be considered to be the stable system (striving for equilibrium) but it is rather the vibrating equilibrium (periods of stability mixed with periods of chaos – sustained disequilibrium). According to „Organizacjanakrawędzichaosu”,PiotrNestorowicz, 2001
83. Landscape of opportunities This landscape is changing itself with the function of time – the peaks get lower, disappear and new ones emerge. The practice shows that to be able to climb onto another peak it is necessary first to get down into the valley. Tim Mannon, the President of the Hewlett Packard Printer Department, once said: „The biggest single danger to our business is remaining for one year too long in the previous business which brought us success.”
84. Be chaotic or death At first glance chaotic behavior appears to be the antithesis of organizational behavior, that necessitates order, regularity and predictability so as to ensure coordination, planning and control. A second look will remind us that variety and irregularity allow the resilience and creativity which are a necessity for learning, which is a condition to be able to survive.
85. The Goal - Survival on own terms Studies of human behavior reveal that the actions we undertake as individuals are closely related to survival, more importantly, survival on our own terms. Naturally, such a notion implies that we should be able to act relatively free or independent of any debilitating external influences--otherwise that very survival might be in jeopardy.
86. The Goal - Survival on own terms In viewing the instinct for survival in this manner we imply that a basic aim or goal, as individuals, is to improve our capacity for independent action. The degree to which we cooperate, or compete, with others is driven by the need to satisfy this basic goal. If we believe that it is not possible to satisfy it alone, without help from others, history shows us that we will agree to constraints upon our independent actionin order to collectively pool skills and talents in the form of nations, corporations, labor unions, mafias, etc.--so that obstacles standing in the way of the basic goal can either be removed or overcome.
87. The Goal - Survival on own terms On the other hand, if the group cannot or does not attempt to overcome obstacles deemed important to many (or possibly any) of its individual members, the group must risk losing these alienated members. Under these circumstances, the alienated members may dissolve their relationship and remain independent, form a group of their own, or join another collective body in order to improve their capacity for independent action. John R. Boyd
88. O-O-D-Aloop Action Decision Decision(Hypothesis) Action(Test) According to John Boyd, implicit (leaning on genetic heritage, cultural traditions and past experiences) communication accelerates undertaking decision and beginning of action. Observation Orientation Implicit leadership and control Implicit leadership and control Changing circumstances Cultural tradisions Observations Genetic heritage Analysis And synthesis New information Past experiences Information from outside Developing interaction with environment Developing interaction with environment Feedback Feedback Notice how the orientation shapes the observation, shapes the decision, shapes the action and in the response is shaped by the reaction and different phenomena coming to our view-finder of feeling or observation. Notice also, that the whole loop ( not only orientation) is the continuous, many-sided, implicit process of expectation, understanding, correlation and rejection. "This so as would be in the movie of slow-motion " - Boyd describing working inside loop OODA of the enemy. When you design, planning new strategy then keep the minimum speed of OODA loop, when you fight (with competition) provide for maximum speed.
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90. New classdivisions They who think and the others who accept their thoughts. They who know and the others, who agree to be only consumers of knowledge of those first.
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92. Mankind comes back to the state of one unified civilization - global village.
98. Learning from Nature The sophisticated system of decentralized interdependence exhibited by termites invites a lesson on how to respond to emergencies, while the chemical-based communications among African ants helped officials at Southwest Airlines define their seating policy. Insects, birds, and fish variously demonstrate the plausibility and success of disorganization leading to self-organization and leaderless processes.
99. Wehave already started Then along comes the Internet, a communications medium that radically drops transaction and collaboration costs. Work can be organized on new project models, where the genius of human capital can be unleashed from its old command-and-control constraints. Employees can forge their own self-organized interconnections and form cross-functional teams capable of interacting as a global, real-time workforce. Loosening organizational hierarchies and giving more power to employees can lead to faster innovation, lower cost structures, greater agility, improved responsiveness to customers, and more authenticity and respect in the marketplace.
100. Fractals features inreal life Jazz band has leader, plays composed work, but never plays it the same. Individual members' improvisations, in dependence from their skill and moods in given moment, are not only permissible, but outright waited (this playing solo takes over leadership in frames of its specialization). The members of team help the soloist to execute his task adjusting to him as well as to environment (atmosphere in the audience). Sport team has the aim - to reach competitive victory and to satisfy customers (own fans). Doing this the team has to observe the rules of game. The leader (in fact elected by team members) characterizes oneself with experience and suitable skills to this aim. The individual players' tasks change often in the course of duration of performance.
101. Fractals features inreal life Marines team in modern war has appointed aim, designated resources, and when trying to foresee enemy's movements applies the technique of OODA loop and takes own decisions of operations. In the segment of time of 4 - 5 hours the participants of the trip from Warsaw to Poznan are taking a deadly game and in this way temporarily made up the team. We can observe then the self-similarity of their behaviors - overtaking themselves dangerously on two lines road as the third or fourth - they warn each other about radars and the self-organization is visible in retreating from road these freer (usually the small FIAT). Is winter and a lot of snow. Small car wanting to take the turn at side street he had to drive by strongly snow-covered tram tracks, so he hung on chassis. Other cars, wanting to take the same turn, blocked main street completely. Often, in such cases, unreasonable drivers blow the trumpet while sitting in warm cars. This time they went out and pushed out the unfortunate car on the even road and in this way removed traffic jam helping him and oneself.
102. Fractals features inreal life Till March 2010 we survived 3 earthquakes (Haiti, Chile, Turkey). People got words of sympathy and the promises of help from the governments, but the true help was born itself. Men knew what they should do to help the others, leaders appeared spontaneously. In several cities in Europe (in Poland also) on primary road crossings all traffic signs were removed leaving only the rule of right side. The quantity of bumps and dangerous accidents fell down considerably. What it proves, that we need little controls to exist and to develop as communities.
115. Primates? Organizations (systems), even the best, will not achieve (produce) the success on their own. Only the knowledge of the people who manage, observe, study and improve these systems and their environment will make this possible. As long as there is still somebody to turn out the lights and leave the room filled with robots, organization will still be alive and the human factor will affect this organization in a decisive manner. The structure of modern organization should be in accordance with the development of primates and therefore promote a leadership based on knowledge, intelligence and skills – contrary to the „command and control” type.
116. Henry Ford “One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is it’s ultimate cost.” -Henry Ford, 1926
117. The life wasn’t meant to be easy “There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a new system. For the initiator has the enmity of all who would profit by the preservation of the old system and the merely lukewarm defenders in those who would gain by the new one.” -Machiavelli, 1513 Is your company rewarding the "firefighters", but not them who prevent problems?
118. Digital Business Effective business today is impossible without the application of computer technology. The speed of digital technology greatly (a few dozen times) shortens the distance between information and decision.
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120. How do you attract and retain more than your fair share of the best talents?
121. How do you segment and serve your customers in the best and most cost-effective way?
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123. New paradigms Organization, the environment operates within and the market on which operates constitute all the Complex Adaptive Systems. Chaos has become a fixed component of our reality. In order to exist, people need to preserve a minimum order within chaos. The Lean philosophy of effective operation with its components (Waste, Value, Kaizen)may provide a sense of order.
124. New paradigms Given the constant lowering of the manufacturing cost, the main function of the organization (as well as its internal components) will finally focus on the services and their organizational attributes (e.g. cooperation with a client and its satisfaction). Components of the organization should be fractal in character (self-similarity, self-organization and vitality) and their partial objectives should satisfy the conditions of reaching the objectives of the organization (by respective measures). Fractals may become independent, so the organization may become virtual.
126. Theaim of Solar Management System Building the basis for effective and high-efficient, but simultaneously flexible and humane (for people) organization
127. Solaris Management System - assumptions To manage these existing and future challenges we have to: Create and initiate the new system of management, which will be appropriate to the need of time . Give the citizenship to employees ( create community) which will make possible the reversal of pyramid of responsibility. Replace hierarchic dependences with relations Customer - Supplier, and quality and timing should be the measure of services(the best financially). Establish system of rewards about skill and usefulness for organization and not about position in hierarchy. Inform all workers, that all what we do is related to money (as profits as losses). Shorten persistently productive cycles to outdistance competition. Find system solution for the inevitable changeability of rhythm of production.
128. SolarManagementSystem Organization is so alive as are its people and so, some change or improvement has to begin from them because, if they will not accept this, this change will not happen. Solar Management System: Givespeople the chance to adapt to organization, using fully their ability and to permit them to organize their work, underlines strongly the sequence - first men as men, next men as employees and finally the organization which they create, incorporates into organizational system the suitable book-keeping and informations systems, uses all, well-known and useful to particular case, tools.
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130. Customer - Supplier internal relations are established in the whole company.
133. Departments and functional cells have fractal character, maximum independence and aim for self-financing.
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136. The world trend is shifting the weight of management from area of production to preparation of this production.
137. The preparation of production has in modern enterprise the key meaning.All actions in the Value Stream( the successive mapping, present states and the planning of the target states) should therefore focus mostlyon this area. Value Sales Preparation of Manufacturing Board Finances Marketing Administration Supplies Logistic Manufacturing Flow Just-in-Time Pull
138. Main barriers to overcome Culture of organization. Fast access to all factual and relevant information and know-how (and for all).
139. CLASSICAL RUSSIAN POLISH AMERICAN FEMINIST MOVEMENT COLONIAL AFRICAN ARAB CHINESE SAP AG LATINAMERICAN ITALIAN VATICAN Culture and organization Company culture is like a country culture. Never try to change it. Instead try to work with what you've got. Peter F. Drucker
140. Businesses in Business Command & Control system changes co-workers into gearwheels of machinery, kills creativity and prevents the use of collective intelligence. Efforts to control everyone and everything increases bureaucracy, creates inertia and sluggishness of organization, deteriorates quality of work and enormously wastes talents of people. People who are self employed have different attitude to work – they don’t have to be controlled. Why shouldn't we create the networks of businesses (independent fractals) in our enterprises? It will liberate people from handcuffs of Command & Control system, release inventiveness, increase effectiveness and provide the feeling of freedom.
141. Fractal Company Superior Fractal– sets the vision and objectives for the organization, sets the function and control mechanisms, determines the policy of measurement and objectives for other fractals, prepares diverse strategies adequate for variable circumstances within the Landscape of Opportunities (e.g. Board of Directors, Management). Reconnaissance Fractal – deals with observation and studying of the Landscape of Opportunities (e.g. Marketing, Sales). Operational (Combat) Fractals – fulfill the objectives of the organization (e.g. Design, Production, Services). Supportive Fractals – support Operational Fractals (e.g. Technology, Planning, Purchase, Logistics, HR). Specialized Fractals – possess unique skills (e.g. Accountancy, Legal Department, Information Technology). All fractals are equipped with function and control mechanisms; the relevant resources are assigned to them; they fulfill general objectives of the organization and their own objectives (by providing accountable revenue); they are entitled to self-organization and changing their own objectives; they are appraised according to their financial results. Within the Value Streams, they cooperate on the basis of „customer-supplier” chain, and with other fractals within the network.
142. Fractal Company Customer Marketing Service Superior Fractal Quality Engineering Reconnaissance Control Sales Production Fractal Supply Operational Production (Combat) Fractal Maintenance Investment Production Board of Directors Supportive Fractal Production HR Production Administration Specialist Fractal Production Production Production Legal Production Services
143. SMS – Constitution of Fractal Fractal recruits its members itself (initially only from within company). Fractal itself elects its Leader. Bonus comes from liquidation of Waste and is distributed by members among themselves. The Leader’s remuneration depends on his competences. Additional reward for his function comes from the bonus. For realization of its objective a fractal can change its size and shape Other workers can, for a certain period, join the team to execute certain tasks.
144. Value Stream M Fractal M1 (Machining) Fractal M2 (Preassembly) Fractal M3 (Final Assembly) Value Stream S Fractal S1 (Machining) Fractal S2 (Preassembly) Fractal S3 (Final Assembly) ValueStreams & Fractals(similaritywithin a scope of skills) Cooperation within Value Stream on the principle - „Customer – Supplier”. Cooperation between similar Fractals in cases of the demand fluctuation.
145. Value Stream A Fractal A (Fractal is able to select members and resources according to its needs including industrial engineers, supply employees etc.) Value Stream B Fractal B (Fractal is able to select members and resources according to its needs including industrial engineers, supply employees etc.) ValueStreams & Fractals(specializedprojects) Cooperation between Fractals within a scope of available resources (machines, workers, applied technology etc.).
149. Classical planningsystem supported by vast majority of computer systems Business Plan Financial Management Database Database Strategic Management Roll-on Sales Plan (Orders on hand, Forecast) ProductionPlanning Manufacturing resources Bills of Material Departments Work Centers Routings Costing Elements Index of: Material, Subassemblies, Products. Planning data: leadtimes, BatchSizes etc. Stock Records Accounts Receivable Roll-on Production Plan Company Accounting Purchase, Sales and General Ledgers Controlling Rough Capacity Planning Master Planning Schedule Operational Management Detailed Capacity Planning. Material and Sub-assemblies Requirements Planning Production Work Orders Accounts Payable Shop Floor and Purchase Management Material Supply Work Orders Control Cost Accounting Effectiveness Measurement
150. Solar Planning System supported by computer system ERP with carefully chosen functions Finance Management The Board Database Strategic Business Plan Index of: Material,Subassemblies, Products, Lead times,Batch Sizes, etc. Stock Records ProductionPlanning: Manufacturingresources, Bills of Material, Departments, WorkCenters, Routings, Costing Elements Accounts Receivable Strategic Management Rolling Sales Plan Sales Company Accounting Purchase, Sales and General Ledgers Controlling Design Rolling Production Plan Production Planning Purchase Operational Management Work Orders Value Stream Value Stream Production Accounts Payable Quality Assurance Visual Management Work Orders Control Cost Accounting Final Quality Control Effectiveness Measurement Dispatch/ Customers Feedback Service Customer
151. AppropriateAccounting System? Popularly used Standard Costing have to be abandoned because first, it concentrates mainly on cost instead of profit and second, sets the indirect cost in percentage proportionto direct cost and covers this way the huge waste in processes. Throughput and Lean Accounting gives better way of assessing the real cost and profit; elements of it should be used appropriately to the need of particular case.
152. Matrix of Skills Why do we compare us with others? - the legitimacy of introduction the Matrix. Employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others (Adams, 1965). People value fair treatment which causes them to be motivated to keep the fairness maintained within the relationships of their co-workers and the organization.
153. Matrix of Skills The structure of equity in the workplace is based on the ratio of inputs to outcomes. Inputs are the contributions made by the employee for the organization; this includes the work done by the employees and the behavior brought by the employee as well as their skills and other useful experiences the employee may contribute for the good of the company. An individual will consider that he is treated fairly if he perceives the ratio of his inputs to his outcomes to be equivalent to those around him.
156. makes possible the construction of the awarding productiveness (profit) payment system leaning on skills and the usefulness for firm in contrast to occupied place in hierarchy,
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158. Making possible for workers the lifting of qualification and the obtainment of possibility of raise of salaries.
159. Giving the chance of mutual substitute (in team, productive line, factory)
171. the determination of road of personal development and the help in its realization,
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173. Why Visual Management? Presents key data and information through use of compelling sensory messages that reinforce what is important to the organization. Addresses performance issues and keeps people focused on the real mission and goals of the organization. Provides a mechanism for continuous improvement through system alignment, goal clarity, engagement of people in the process, and improved communication and information sharing throughout the organization.
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175. We get defensive when problems are brought to the attention of management (the higher up the organization, the more defensive).
178. Tribal community – favoring interests of one’s tribe.Long period of implementation when taking in consideration the inertia of human psyche. Necessity to overcome the resistance of all, without exception, members of organization (for very different reasons).