Cybernetics and the management science process

This paper addresses methodological issues currently confronting the management science community. The urgency of these issues is evidenced by [1] the growing debate over the implementability of MS/OR (Management Science/Operational Research) models, [2] the absence of professional agreement on a ‘generalized’ theory of organizational structure and control and [3] the dearth of substantive contributions in the area of ‘policy’ analysis and modeling. It is argued that any resolution of these issues must address the management science process and that developments in cybernetics provide an integrating framework for this purpose. Aspects of this framework are presented by pointing out distinctions between the more traditional MS/OR approaches and the proposed cybernetic approach. Some of the concepts involved are not always associated with cybernetics, but the implications for the practice of management science are significant.     

Some debates and challenges in the literature on action learning: the state of the art since Revans

Action learning has travelled in some new directions and become an evolving practice since Revans first articulated his great idea. This paper focuses on some key challenges in the literature, some of which relate to these more recent directions in theory and practice. In particular, we consider the persistent problem of defining action learning and the varieties in practice which are in evidence, the nature of ‘action’ in action learning and the developing theory and practice of critical action learning as contrasted with the ‘classical’ approach to action learning. These debates are chosen for consideration here because they appear to strike at the heart of what action learning is for and because they are in evidence across a range of action learning literature. Some implications of these debates for human resource development (HRD) are also considered, including the potential action learning has for making a contribution to organizational learning, especially in treating ‘wicked’ problems and ill-structured challenges.     

The nature of action learning

Action Learning has developed to such an extent that there is now a demand to ‘know’ what it is. There is one way, and one way alone, of getting to ‘know’ what action learning is, and that is by doing it. For those who most clamour to ‘know’ what something might be are usually the victims of an educational system that leaves the vast majority who pass through it ignorant of the meaning of the verb to ‘know’ .... If, for example, I am asked “Do you know that woman?”, it is most probable that the questioner does not ‘know’ what he is asking me. Does he mean “Do I know her name? Or where she lives? Or am I able to introduce him to her? Or what she does for a living? Or do I recognise her by sight? Or have I been to bed with her? And, if so, what progress did I make?...” Thus, with action learning: “Have I read a book about it? Or attended a seminar at which somebody was trying to sell places on an action learning programme? Or visited a set of participants meeting as part of such a programme? Or tried to organise real persons tackling real problems in real time, and trying thereby to learn with and from each other? Or been an active participant myself in such a programme?...” To ‘know’ what action learning is, one must have been responsibly involved in it; since this cannot have been done merely by reading about action learning, it is impossible in this, or any other, note to convey more than the vaguest impression of what this educational approach may be. The day action learning becomes explicable in words alone will be the day to abandon the practice of it.     

案例行动学习法——效率与效果的兼顾

案例教学法、行动学习法等主流商科情境教学模式虽在国内商学院中得到广泛的应用,但囿于使用过程中的资源限制、实施变形及方法本身的局限性,导致教学双方的反馈尚不尽如人意。本文介绍了一种全新的商科情境教学方法--"案例行动学习法"。论文应用建构主义理论探讨了"案例行动学习法"的基本原理,研究了该种方法的能力建构机理,分析了其成为工商管理主流情境教学方法的效率与效果的平衡机理,介绍了前期应用的效果。研究结果表明,"案例行动学习法"作为一种全新的工商管理情境教学方法,能够将案例教学与行动学习两种方法的优点有机结合在一起,具备在全国范围内推广的条件。     

A journey around decision-making: Searching for the “big picture” across disciplines

This paper carries out an interdisciplinary literature review to develop an updated framework that integrates all aspects of decision-making. It proposes a framework that combines the evolutionary perspective with the complexity theory to integrate the ontological communalities between the examined disciplines (operational research, psychology and management). Decision-making is regarded as a systemic, multi-tiered information-based process, founded on the interaction of the decision-maker with the environment in a sort of learning path which co-evolves through variation–selection–retention mechanisms nourished by environmental feedback.Such a complex-coevolutionary perspective provides valuable insights concerning some as-yet-unexplored aspects of decision-making, such as inter- and intra-individual differences in decision-making, as well as the interaction of ‘rational’ and ‘intuitive’ processes or some contradictory evidence (regarding ‘fractionated expertise’ and ‘escalation of commitment’).Practical implications on management education are highlighted, as well as methodological limitations and needs for further studies. The journey is not yet over and probably never will be, but, from an evolutionary perspective, it is the journey, not the arrival, that matters.     

Action Learning - A Paradigm in Emergence: the Problems Facing a Challenge to Traditional Management Education and Development

This paper examines the proposition that action learning is a new paradigm in management education. Action learning is becoming widely accepted methodology for the development of managers and managerial competence. This is in both public and private sector organizations and within the context of certificated and organisationally based programmes. The paper seeks to use Kuhn's work on the nature of paradigms and change as a way of explaining the increase of interest in his approach. Importantly, although this approach promises to answer some of the problems of traditional management education, it is not without its own critics. Kuhn's criteria for a paradigm change are explained with reference to action learning literature and knowledge of practice. From this a framework is developed that compares a traditional approach to management education with an action learning approach on three levels. Our conclusion is that action learning is a new paradigm, but for the maximum benefit to be gained from the approach its application needs to be more carefully considered, particularly in relation to the provision of some wider external frameworks for the manager to use as‘tools for thinking’     

Grasping the Nettle: Possibilities and Pitfalls of a Critical Management Pedagogy

The focus of the paper is a review of the more problematical aspects of introducing a critical perspective into the practice and content of management education. As an introduction, the author summarizes the arguments for critical reflection in the education of managers, the characteristics which distinguish it from ‘reflection’– the more familiar concept in the literature – and ‘critical thinking’. The ways that a critical perspective can be reflected in educational method as well as in the content of the curriculum are also elaborated before describing the problems and complications of implementing such an approach from accounts in the literature of adult and management education. The paper outlines the reasons why critical reflection might be resisted, the mental or social disruption which can result from its application and the implications of both for the practice of management teachers.     

Regaining your competitive edge

The author maintains that the key to survival and growth in a world of rapid change, technological development and competitive challenge is ‘Management Effectiveness’. Regaining the competitive edge in difficult conditions means developing superb management skills and translating them into effective management action. He lists and describes eight key elements of Strategic Business Management and outlines the steps in General Motors strategic planning process.     

How Singapore makes central planning work

In this article the author points out that, contrary to the assumptions of many, and the statements of some well-known writers in the fields of economics and management, central planning does work. It may be that Singapore has achieved success with it over a 25 year period because of the exceptional qualities of the leaders. Certainly that is part of the story, but the author suggests that the Singapore central decision-making body has been implementing what corporate planners would identify today as ‘orthodox theory’. He asks: ‘Could the same kind of success have been possible elsewhere?’     

The War of the Woods: Facilitators and Impediments of Organizational Learning Processes

This study examines unfolding organizational learning processes at MacMillan Bloedel, a company which, after years of resisting stakeholder pressures for change, disengaged from the field’s dominant paradigm and developed a new solution. We elaborate the Crossan, Lane and White multi–level framework of organizational learning processes, finding support for the four feedforward learning processes they identified (intuiting, interpreting, integrating and institutionalizing), and adding two action–based learning processes: ‘attending’ and ‘experimenting’. We introduce the concept of a ‘legitimacy trap’ to describe an organization’s over–reliance on institutionalized knowledge when external challenges arise. The trapped organization rejects external challenges of its legitimacy when it perceives the sources of those challenges to be illegitimate. Feedforward learning is blocked as the organization escalates its commitment to its institutionalized interpretations and actions. Taking a grounded theory approach, we discuss how individuals attend to new stimuli and engage in intuiting about them, how groups interpret, experiment with and integrate new solutions, and how the firm validates and institutionalizes the successful solution. Facilitators and impediments of each of these learning processes are identified. Our additions to the model recognize the importance of context in organizational learning processes, and suggest how power may impact organizational learning.     

Urban management—Some models for policy making

Urban management has been the subject of much ‘integrative’ discussion and analysis, both in this country and abroad. Indeed, as the author suggests in this paper ‘the feeling is that there is a danger that planners might take on too broad a field and try to do too much’. This paper examines the notions of the planner's role within a ‘political’ decision-making process and examines a number of different models indicating their relevance, complexity and feasibility. By concentrating upon the relationship of the theories of planning with the political decision-making environment within which they are enacted, the author draws usefully upon the relevant literature and provides a comprehensive, persuasive, intelligent and, comprehensive view of the relevance of some theories and the irrelevance of others. This paper walks the narrow tight rope between the fallacious separation of policy formulation from policy implementation, whilst at the same time recognizing the distinction between these two aspects of the decision-making process. The author postulates a number of propositions relevant to a planning process of an optimal nature and, although treating some of the theory in a somewhat superficial manner, the analysis provides a useful addition to the body of planning knowledge. This paper pieces together a number of existing elements of planning theory within a theoretical and conceptual framework. This is an important contribution to planning theory, since it does not suggest that the planning process is merely a collection of techniques, but that it is a complex system for recognizing, regulating and ultimately reconciling human values.     

European high technology manufacturing: Choices on the path to manufacturing excellence

The author is concerned to point out that advanced manufacturing technologies have their main impact on ‘manufacturing deliverables’, particularly quality, delivery and cost. It is these deliverables that interest companies in their attempts to compete globally by using high technology strategies.The technologies themselves - computer aided design, computer numerical control, or optimised production technology, for instance, can be categorised into ‘high-tech’ or ‘lo-tech’. But the division is somewhat artificial, and the way forward may be pragmatic.     

Productivity planning: a central issue for Australian management

In the manufacturing industry, management strategy must include plans for direct study and improvement of productivity. While the author sees management as essentially amateur in nature, there are several principles which clarify the approach to productivity improvement. These are the Pareto and Zulu Principles; Learning Curve and Fundamental Change theory; Simplicity; and several principles of organization. These principles are discussed along with available techniques and interlocked into a productivity consulting philosophy of ‘Management by Principle’.     

How Does Performance Management Affect Workers? Beyond Human Resource Management and Its Critique

While performance management (PM) is pervasive across contemporary workplaces, extant research into how performance management affects workers is often indirect or scattered across disciplinary silos. This paper reviews and synthesizes this research, identifies key gaps and explores ‘recognition theory’ as a nascent framework that can further develop this important body of knowledge. The paper develops in three main stages. The first stage reviews ‘mainstream’ human resource management (HRM) research. While this research analyses workers’ reactions to performance management in some depth, its focus on serving organizational goals marginalizes extra‐organizational impacts. The second stage reviews more critical HRM research, which interprets performance management as a disciplinary, coercive or inequitable management device. While this literature adds an important focus on organizational power, there is scope to analyse further how PM affects workers’ well‐being. To develop this strand of PM research, the third stage turns to the emerging field of recognition theory independently developed by Axel Honneth and Christophe Dejours. The authors focus especially on recognition theory's exploration of how (in)adequate acknowledgement of workers’ contributions can significantly affect their well‐being at the level of self‐conception. Although recognition theory is inherently critical, the paper argues that it can advance both mainstream and critical performance management research, and also inform broader inquiry into recognition and identity at work.     

Strategic planning and research and development—Can we integrate them?

The main problem affecting the R & D function has always been caused by its lack of integration with the enterprise. Such a problem makes it difficult to pass from invention to innovation—that is, to turn the invention into processes and products to be exchanged on the market. The author points out the main social and organizational problems which prevent R & D from entering the ‘circulatory system’ of the enterprise. The identification of such problems is important in order to set up and to implement innovative strategies. This is the first of two articles by Professor Petroni on this subject. The second article will appear in April 1983.     

A portfolio model for foreign exchange exposure management

This paper summarizes the results of our research into applications of decision analysis and portfolio theory to the management of foreign exchange exposure. In contrast with much current practice in foreign exchange management, the portfolio approach takes into explicit consideration the inherent relationships among the currencies in the company's foreign currency portfolio. The hedging model developed in this article traces out an ‘efficient frontier’ or trade-off curve between expected value and variance of the foreign currency portfolio at the end of the planning period. In doing so, the model chooses the optimal amount and method of hedging for each currency in the portfolio.     

Country-portfolio analysis— Assessing country risk and opportunity

The author illustrates how the basic concept of product-portfolio analysis, now in common use in strategic management, can be used as a country-portfolio analysis to identify growth rate in international markets. He identifies the ‘Baby’ countries, ‘Star’ countries, ‘Cash-Cow’ countries and ‘Dog’ countries; the factors behind the matrix, i.e. population structure, political stability and product patterns; and concludes with the recommendation for the secure way or the way to high growth potential.     

Strategies for planning

In recent years there has been a good deal of discussion amongst planning specialists and academics about the gap which exists between the theory of planning as set out in journals and textbooks, and the practice of planning in private and public organizations. Planners are continually complaining about the resistance to planning by top management and operating managers in divisions and departments.In this article the author aims to produce a reconciliation between theory and practice and to discuss what alternative strategies are open to planners in devising planning systems for their organizations.He suggests that the problem has its origin in the fact that corporate planning theory was first developed by management scientists as a total systems approach. Corporate planners have failed to sell an integrated planning system either as programme budgeting or as corporate planning. Research suggests that a management team can only adopt and implement a comprehensive planning system in very special circumstances, e.g. when the organization's survival is threatened, a new management team has been appointed and the staff of the organization are ready to accept radical change.In normal circumstances the planner is wrong to advocate a ‘root and branch’ solution. He must diagnose the planning needs of the organization and his objective must be not merely to establish a particular planning procedure but rather to discover how he can best improve the quality of management decisions.Recent studies on strategy formation indicate that the introduction of a formal planning procedure is only a partial answer to the problem of improving the quality of management decisions.The paper reviews various approaches to planning and considers how they relate to organizations with different strategic problems, with differing organization structures and various management styles.     

Formal planning in major U.S. corporations

As the world about us changes, managers in all types of institutions try to cope in a variety of ways. In the early 1960s, many corporate managers realized they could not make sound decisions about future business activities in an expedient, reactive manner because their firms were growing very large and complex with new technologies, products, markets and competition to deal with. As a result, formal planning techniques which had been used in narrow functional applications were introduced on a much broader scale and formal long-range planning became popular. New corporate planning functions appeared in many companies, as well as new staff planning specialists and planning executives. The author conducted a field study on the design of these systems in the mid-1960s and he argues that they showed great promise for improved management.With this history in mind, we might ask why such subjects as ‘planning techniques’ and ‘problems of implementation’ are still topics of concern. It would seem that such techniques would be well known and established in most firms after 10–15 years. However, this is not the case, for during a second field study of corporate planning systems which was completed in 1976 the author found that many corporations, including some of the largest ones, had redesigned their planning systems in the early 1970s, essentially making a fresh start at formal long-range planning. (See Table 1).From his recent field study the author concludes that all corporations experience problems in implementing and using a formal planning system. The nature of these problems and some possible remedies are the subjects upon which this article focuses.     

Organisation structure,management style and company performance

This paper examines the relationship between organisation structure and management style and their influence on organisational effectiveness measured in both ‘human’ and financial terms. Account has also been taken of related contextual factors such as differences in task, size and environment of a company. Using information collected from a sample of fifty small and medium size printing and building firms the authors have elaborated a conceptual model involving the independent attributes; integration, control, task orientation and people orientation. The validity of this model has been operationally tested and examined against the background of evidence reported by other research workers on the contextual determinants of organisational structure and management style. Substantially different patterns of association between ‘organisation’ and ‘style’ and company performance are found for the two industries and an important outcome of the research has been to produce further evidence in favour of the contingency theory of organisation. The paper concludes with some implications for management practice and organisational design.