Bringing Business into Sociotechnical Theory and Practice

Current developments in the sociotechnical framework address a number of vital issues that failed to occupy the high ground in its formative years. These include: (i) the purpose of the systems, to create customer value under social and resource constraints, (ii) the context or external business environment, and (iii) the dynamics of the sociotechnical system. Due attention to the dominant issues of purpose, context, and their dynamics make it more meaningful to speak of sociotechnical business systems (STBS) and organizational learning instead of sociotechnical systems (STS) and individual learning. In STBS each unit in an organization has business responsibilities and goal-based couplings with its environment and focuses on the creation of customer value. The implications of this shift from STS to STBS are discussed and illustrated with current research and two summary case studies.     

Introduction to the Special Issue

Organizational innovation is now widely seen tobe a major source of competitive advantage for firms,along with product and process innovation. One of themajor intellectual sources for the upheavals, in which firms strive for some formof international best practice, is thesociotechnical systems tradition, which traces its rootsback to innovations such as semi-autonomous work teamsin manufacturing in the 1960s, associated with the work of theTavistock Institute. An international Colloquium wasstaged in Melbourne, Australia, in May 1995, to explorethe current relevance and contributs to organizational innovation.     

POWER APPROXIMATIONS FOR A TWO-ECHELON INVENTORY SYSTEM USING SERVICE LEVELS

We consider a two-echelon inventory system with one warehouse and several stores. The warehouse as well as the stores are controlled by periodic review (s, S) inventory policies. We study the interrelationship between the safety stocks at the warehouse and the stores. Stockouts at the warehouse will result in supply delays to the stores and cause the lead time to be stochastic. The stores may react by increasing their safety stock. However, there is a trade-off between the safety stock at the warehouse and the safety stock at the stores. We use a service level at the warehouse to quantify the effect of warehouse stockouts on the lead time to the stores. The service level at the warehouse is considered a decision variable to find the best compromise between the various safety stocks by minimizing the overall costs. Using power approximations for the (s, S) policies, we provide an iterative procedure for adjusting the lead time distribution to the stores; this can result in substantial savings, but it doesn't guarantee the overall optimality. Numerical studies are provided to test the accuracy of approximations. The effects of the different system parameters on the inventory policy give general guidelines for use of the policies.     

The Dutch IOR Approach to Organizational Design: An Alternative to Business Process Re-engineering?

This paper presents the current Dutchsociotechnical design approach to integralorganizational renewal in a contextual way. Both itsdesign theory and intervention processes are reviewedand some aggregated empirical evidence is presented. Next, thepaper compares the ideas developed in the Dutch approachto those presented in its American, Scandinavian, andAustralian counterparts. It is concluded that, at a meta-level, they all share the ideal ofparticipative democracy, while at the conceptual level,these distinctive approaches appear quite incompatible.Notwithstanding substantial diversity, it is presumed these approaches can be seen as localmanifestations of a single sociotechnicalparadigm.     

Lean Production: Denial, Confirmation or Extension of Sociotechnical Systems Design?

This paper makes a comparison between the basicelements of lean production and sociotechnical systemsdesign (STSD) and compares them both with thecharacteristics of the traditional Fordist system of mass production. It argues that lean productioncan hardly be considered as an alternative to massproduction, as its proponents suggest, but is on thecontrary extending the life of mass production methods. However, lean production does appear to containsome building blocks for the innovative productionsystems that are expected to prevail in the 21stcentury. STSD, which has always presented itself as an alternative and possible successor to Fordistmethods, will need to link its traditional concerns forquality of work and flexibility of work organizationswith the new issues of continuous improvement, learning,and innovation.     

Decision-making practices in commercial enterprises: A cybernetic intervention into a business model

Abstract

This article presents a decision-making framework and a technology that senior managers can use to steer the enterprise within a volatile and competitive commercial environment. The main aim of introducing such a technology would be to maximize the enterprise's value vector by ensuring that business objectives are consistently unfolded throughout the enterprise and used by all managers to make decisions that are consistent with the purpose and objective of the organization. The article illustrates how a cybernetic intervention into the business model of a large organization can be used to achieve this.     

INTERNATIONAL DIFFUSION OF ISO 14000 CERTIFICATION

The ISO 9000 series of quality management systems standards and the more recent ISO 14000 environmental management systems standards have generated much controversy among practitioners. Although ISO 9000 has become a de facto requirement for many firms, its effects are poorly understood, and similarly the value and domain of applicability of ISO 14000 have been questioned. This paper reports on an exploratory study into the global spread of ISO 14000. We interviewed practitioners worldwide to identify factors that they believe explain differences between national ISO 14000 certification counts. We then collected quantititive data for these factors and, using regression analysis, we found that exports, environmental attitudes (combined with economic development), and ISO 9000 certification count were significant. The fact that ISO 9000 appears as an important factor explaining diffusion of ISO 14000 certifications suggests that the drivers behind the two have significant overlap. This indicates that, although ISO 14000 is an environmental standard, many of the factors driving national certification patterns are not at all environmental in nature, and that ISO 14000 therefore needs to be studied from a broader perspective than from a purely environmental point of view.     

EFFECTS OF ENVIRONMENTAL MANAGEMENT SYSTEMS ON ENVIRONMENTAL MANAGEMENT PRACTICES AND OPERATIONS

To date, it is unclear as to how Environmental Management Systems (EMS) are implemented and what effects these systems have on other environmental and operational practices. This study reports empirical insights to EMS practices based on the largest EMS survey of manufacturing firms in the United States. The objective of the study is to test for a relationship between environmental management systems and perceived operations performance while considering direct and indirect effects of various environmental practices. The results of this study are supported by several field studies and provide a new source of information regarding EMS theory development. The results also indicate a positive relationship between an EMS, the environmental practices a firm engages, and operations performance measures.     

EXTENDING THE BOUNDARIES OF OPERATIONS MANAGEMENT: AN INTERNATIONAL FIELD-STUDIES APPROACH INTEGRATING INFORMATION SYSTEMS

Continued globalization, extensive use of information technologies, increasing cross-functional dependencies, and new organizational forms are rapidly changing the learning context of operations management. This paper describes an example of a mba elective course that has been created to address and learn from these new realities. We have taken a process view of the global firm, focusing mainly on the new product/service development, order fulfillment, and supply chain/ after-sales service processes. We have designed our course to contain most of the traditional topics in operations management (om) with information systems (is) woven in to support the key business processes. Our underlying belief is that these two functional areas should be seen as a blend, a seamless merging of the two fields, to obtain a competitive advantage. Besides teaching om and is in this integrated manner, the course engages in face-to-face student consulting projects with multinational companies. This paper describes our rationale for the course design and how it has been implemented over the last 6 years-as well as our plans for the future.     

PRODUCTION FLOW CONTROL FOR A MANUFACTURING SYSTEM WITH FLEXIBLE ROUTINGS

We study the dynamic routing problem for a flexible manufacturing system consisting of two unreliable machines and a finite buffer. One product-type is produced which requires two operations in sequence. The demand rate is assumed to be constant. Each machine is capable of performing both operations. The objective is to trace the demand while keeping the work-in-process low and the cycle-time short. An optimal control formulation is established for the dynamic routing problem. A production flow control algorithm is developed based on a combination of mathematical modeling and heuristics. The control policy is simulated and a comparison with the numerical optimal solution shows that it performs well for the instances under consideration.