Burrough Power Management Services

Organisational Design

Based on Sound Cybernetic Principles

Organizations often evolve organically to meet changing demands but may not achieve the desired situation or may even move further from an optimum design for an effective as well as efficient function.

Others recognizing the need for radical reform may embark on reorganization using a borrowed or popular model that might in fact not be wholly suitable the their individual requirements.

Some fundamental principles can be useful in ensuring that there is a clear foundation and intent, whether the need is to consider the design of a new organization, revise an existing one, or diagnose why an existing organization is not function as expected and as needed.

Cybernetics, so christened by Norbert Weiner (1948) is built on two key concepts; control, with the presence of negative-feedback, and communication, "Cybernetics is the science of effective organisation" (Beer, 1974).

Ross Ashby (1956) formalised the 'Law of Requisite Variety' which states that only variety can destroy variety. This is achieved by attenuating or amplifying variety to obtain control. There are two lines of cybernetic thought about management, Management Cybernetics, tending to treat organisations mechanistically, and Organisational Cybernetics, where greater regard is given to the observing system.

Ensuring Completeness and Ongoing Viability

The Organisational Cybernetics approach is developed in the 'Viable System Model' (VSM) developed initially be Stafford Beer. According to this cybernetic model of any viable system there are five necessary sub-systems, which are interactively involved:

It can be argued on sound cybernetic principles that these five systems are necessary for viability of the whole organization. A comprehensive management system must therefore fully support each of these and the interfaces between them in a unified way.

Not only is the model useful from a point of view of ensuring that these necessary subsystems are present, functional and mutually supportive, but also in the practical implementation of a system, that the fundamental principles are taken into account. This includes:

Why such Concern about Organisational Design?

The contention is that the sound organisational design does not guarantee organisational effectiveness but does allow reduction in barriers to this.

Stafford Beer (1985) wrote, "If the [organisational] structure is dysfunctional, then no amount of financial wizardry, of insightful man-management, or business technique, will save the day."

Espejo (1993) adds a sixth discipline to the five suggested by Senge (1990), for a learning organisation - that of effective structures.

Robbins (1990) demonstrates that "the way we put people and jobs together and define their roles and relationships is an important determinant in whether an organisation is successful"

This is not just an isolated view of structuralists, or of proponents of a cybernetic approach. Belbin noted for his work relating to effective use of teamwork, admits to an over-simplification in this previous work, and recognises a need for good organisational design. "Even a good team cannot fulfil itself in an unsatisfactory environment. That is what led me to think about the design of Organization ." (Belbin,1996)

Nevertheless it is obviously not of course enough in itself...., Child (1984) writes: "if skills are lacking or the climate of morale is bad, then an otherwise appropriate structure will have relatively little effect," and "if objectives are in dispute [.] a formal structure cannot of itself resolve these differences in a way that integrates peoples actions in an effective manner."

[All rights to the information contained herein are reserved. Use without express authority is not permitted. Burrough Power Management Services, 2012 ]