rule dynamics: a journey into organizational intelligence exploring the tension between performance...
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Rule Dynamics: A Journey into Organizational Intelligence
Exploring the tension between performance and accountability
Overview
Motivation for the research topic Description of key concepts Some literature Model that guides the research Research Implications for future research
Motivation for the research topic The pressures that individuals—
specially managers—in organizations face to generate results (performance) are increased by the pressures to do it in a responsible way that can be traceable and clear (accountability) to protect all constituencies interested in the results of the organization.
Description of key concepts Intelligence: In a general way, intelligence
refers the the ability to achieve outcomes that fulfill desires as much as possible (March, 1999, p.1)
An intelligent organization is one that adopts procedures that consistently do well (in the organization’s own terms) in the face of constraints imposed by such things as scarce resources and competition.
This is hard to do
Ignorance
Conflict
Ambiguity
Uncertainty
Collaboration
Evaluative basis
Some literature Argyris, C. and D. A. Schön (1996). Organizational Learning
II: Theory, Method, and Practice. New York, Addison-Wesley Publishing Company.
March, J. G. (1999). The Pursuit of Organizational Intelligence. Malden, Massachusetts, Blackwell Publishers Ltd.
March, J. G., M. Schulz and X. Zhou (2000). The Dynamics of Rules. Stanford, California, Stanford University Press.
McCaffrey, D. P. and D. W. Hart (1998). Wall Street Policies Itself: How Securities Firms Manage the Legal Hazards of Competitive Pressures. New York, Oxford University Press.
Stone, D. A. (1997). Policy paradox : the art of political decision making. New York, W.W. Norton.
A theory
Mental Models/Policies/Rules/Best Practices
A theory
Mental Models/Policies/Rules/Best Practices
Planned Action
A theory
Mental Models/Policies/Rules/Best Practices
Actual Results(Real World)
ActionPlanned Action
A theory
Mental Models/Policies/Rules/Best Practices
Actual Results(Real World)
Action
Perception of Behavior/Problems/Environment/Effectiveness of Actions
Planned Action
BehavioralSingle-loop learning
Filtering, Assesing,Selecting Information
A theory
Mental Models/Policies/Rules/Best Practices
Actual Results(Real World)
Action
Perception of Behavior/Problems/Environment/Effectiveness of Actions
Planned Action
BehavioralSingle-loop learning
BehavioralDouble-loop learning
Filtering, Assesing,Selecting Information
Reflection, Adaptation,Innovation, Deep Change
A theory
Mental Models/Policies/Rules/Best Practices
Actual Results(Real World)
Action
AutonomousPressures
UnplannedAction
Perception of Behavior/Problems/Environment/Effectiveness of Actions
Planned Action
BehavioralSingle-loop learning
BehavioralDouble-loop learning
PerformanceParadox
Cycle
Filtering, Assesing,Selecting Information
Reflection, Adaptation,Innovation, Deep Change
A theory
Mental Models/Policies/Rules/Best Practices
Actual Results(Real World)
Action
AutonomousPressures
UnplannedAction
Perception of Behavior/Problems/Environment/Effectiveness of Actions
Planned Action
BehavioralSingle-loop learning
BehavioralDouble-loop learning
PerformanceParadox
Cycle
Filtering, Assesing,Selecting Information
Reflection, Adaptation,Innovation, Deep Change
A theory
Mental Models/Policies/Rules/Best Practices
Actual Results(Real World)
Action
AutonomousPressures
UnplannedAction
Perception of Behavior/Problems/Environment/Effectiveness of Actions
Planned Action
BehavioralSingle-loop learning
BehavioralDouble-loop learning
PerformanceParadoxCycle
Perception of Structure/FeedbackMechanisms/Compensating Effects
Filtering, Assesing,Selecting Information
Reflection, Adaptation,Innovation, Deep Change
Filtering, Assesing,Selecting Information
StructuralSingle-loop learning
A theory
Mental Models/Policies/Rules/Best Practices
Actual Results(Real World)
Action
AutonomousPressures
UnplannedAction
Perception of Behavior/Problems/Environment/Effectiveness of Actions
Planned Action
BehavioralSingle-loop learning
BehavioralDouble-loop learning
x
StructuralDouble-loop learning
PerformanceParadox
Cycle
Perception of Structure/FeedbackMechanisms/Compensating Effects
Filtering, Assesing,Selecting Information
Reflection, Adaptation,Innovation, Deep Change
Reflection, Adaptation,Innovation, Deep Change Filtering, Assesing,
Selecting Information
StructuralSingle-loop learning
A theory
Mental Models/Policies/Rules/Best Practices
Actual Results(Real World)
Action
AutonomousPressures
UnplannedAction
Perception of Behavior/Problems/Environment/Effectiveness of Actions
Planned Action
BehavioralSingle-loop learning
BehavioralDouble-loop learning
StructuralDouble-loop learning
PerformanceParadoxCycle
Perception of Structure/FeedbackMechanisms/Compensating Effects
Filtering, Assesing,Selecting Information
Reflection, Adaptation,Innovation, Deep Change
Reflection, Adaptation,Innovation, Deep Change Filtering, Assesing,
Selecting Information
StructuralSingle-loop learning
Env
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Env
iron
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Images of Rules Rules as rational efforts to organize
Rules in teams Rules in systems involving conflicts of
interest Rules as proliferating organisms Rules as constructions of meaning
Artifacts, transitional objects Rules as codings of history
Depositories of knowledge (org memory ) Written rules and unwritten rules
Elements to Explore Adaptation, selection, filtering: The
dynamics involved in translating results (history) into rules.
Implementation.- The dynamics involved in translating rules into action.
Understanding: The complications involved in understanding the dynamics between actions and results.
Adaptation/Selection/Filtering
Search for efficiency vs. search for homogeneity.(March, Schulz, and Zhou, 2000)
Adaptation/Selection/Filtering
Rules are: Actors: Basic assumption about rules:
Economics Solutions to metagames
Self-interested
Rules are discovered and become dominant as a result of the pursuit of efficiency
Sociology Given Competitive
Rules spread to create pockets of homogeneous institutions, independent of any technical imperative
Implementation
The rules found in any collection of rules are numerous, ambiguous, and conflicting. As a result, action depends on what rules are evoked, what meaning is given to them, and how conflicts among them are noticed, interpreted, and acted upon. (March, Schulz, and Zhou, 2000, p. 23)
Understanding
Individuals in organizations develop stories of history to interpret their experiences, particularly the relation between their actions and the outcomes they realize. This process exhibit biases (March, 1994).
Research Adaptation, selection, filtering Evolution of a Dynamic Theory of Regulation:
Modeling the Emergence of ‘Self-regulation’ Mechanisms in Financial Markets
Understanding Exploring the Effectiveness and Efficiency
Paradox: The Role of Compensating Feedback Effects on Overall Performance: Modeling the ORMA Case—Office of Regulatory and Management Assistance in New York State
Implications for future research
Mental Models/Policies/Rules/Best Practices
Actual Results(Real World)
Action
AutonomousPressures
UnplannedAction
Perception of Behavior/Problems/Environment/Effectiveness of Actions
Planned Action
BehavioralSingle-loop learning
BehavioralDouble-loop learning
StructuralDouble-loop learning
PerformanceParadoxCycle
Perception of Structure/FeedbackMechanisms/Compensating Effects
Filtering, Assesing,Selecting Information
Reflection, Adaptation,Innovation, Deep Change
Reflection, Adaptation,Innovation, Deep Change Filtering, Assesing,
Selecting Information
StructuralSingle-loop learning
Env
iron
men
t
Env
iron
men
t
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