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A New Approach to a Theory of Management: Manage the Real Complex System, Not its Model
Abstract
An organization is defined by the performance of function which is different from the way the organization is put together by its designers. An example is a business. The organizational chart is a poor way of understanding what actually goes into performing a task. The problem arises because of misunderstanding about to how events are caused. There is not just one type of causality, but there are four distinct kinds leading to closed causal loops. The causal entailment allows us to identify “functional components” that do not correspond to entities in an organizational chart or its accompanying job descriptions. Functional components are defined in a specific context and are destroyed if that context is altered significantly. By comparing a relational analysis of organizational functions with the standard organizational chart and its intent for getting things done, many problems in management can be given an explanation and thereby be solved.
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