Bus 599 Module 5 CASE STUDY

Bus 599 Module 5 CASE STUDY 1. Determine the two critical feedback loops. Describe each Feedback Loop that you identify in your organization and explain why you selected them. Make sure you explain the Loop, the cause and effect process within the Loop. You could also include a Causal Loop Diagram. If you do, show the arrows and direction of affect (+ or -). Also, determine what the warrant is for your case. A feedback loop is a channel or pathway formed by an 'effect' returning to it’s 'cause,' and generating either more or less of the same effect. (Business Dictionary.com, 2011). Feedback loops can be divided into positive and negative loops. A feedback loop is considered positive if it contains an even number of negative causal links. A feedback loop is considered negative, if it contains an odd number of negative causal links. (Systems Thinking, 2011). BALANCING LOOP A balancing loop attempts to move a current state to a desired or reference state through some action. (Systems Thinking, 2011).The structure may begin with the current state greater or less than the desired state, in which case the current state may approach the desired state from above or below. (Systems Thinking, 2011). +
+
Organizational goals (the desired state) interact with present-day operations (the current state) to produce a gap. (Systems Thinking, 2011). It is theorized that the larger the gap the stronger the influence to produce change (action). (Systems Thinking, 2011). The change (action) that is taken moves the present-day operations (the current state) toward the organizational goals (the desired state) reducing the gap. (Systems Thinking, 2011). When the change (action) succeeds in moving the present-day operations (the current state) towards organizational goals (the desired state) the gap is reduced to zero and thus there is no more further influence toward change (action). (Systems Thinking, 2011). REINFORCING LOOP A Reinforcing Loop is a structure which feeds on itself to produce growth or decline
_
_
As stage one increases or decreases stage two is influenced to move in the same direction. (Systems Thinking, 2011). Stage two then influences Stage one to continue to move in the same direction it is moving. Inasmuch as this structure is reinforcing, it generally produces an exponential growth or decline. (Systems Thinking, 2011). Exponential change may be undetected for a period of time until it reaches a detectable range. At that point, the structure then seems to change very rapidly causing one wonders how it began all at once, when in fact it really didn't. (Systems Thinking, 2011). 2. Briefly discuss the theory of organizational learning so that you provide a summary of this information to the execs - establish this as common ground. Organizational learning theory is the belief that, in order to be competitive in a changing environment, organizations must change their goals and actions to reach those goals. (York University, 2011). In order for learning to occur an organization must: 1. Make a conscious decision to change its actions in response to a change in circumstances; 2. Consciously link action to outcome; 3. Remember the outcome. (York University, 2011). Organizational learning in fact has many similarities to psychology and cognitive research. (York University, 2011). This is because the initial learning takes place at the individual level and therefore does not become organizational learning until the information is shared, is stored in organizational memory (in such a way that it may be transmitted and accessed), and is used for organizational goals. The third stage is adaptation/action. (York University, 2011). This happens when an organization takes the interpreted knowledge and uses it to select new action-outcome links appropriate to the new environmental conditions. (York University, 2011). This is a process of continual adaptation to all potential external environmental conditions (internal, external, competitors, state of technology, etc) and consequently will be affected to a large extent by the complexity and dynamism of the organizations’ experiences. The first part of the organizational learning process involves data acquisition. An organization acquires a “memory” of valid action-outcome links, the environmental conditions under which they are valid, the mathematical probabilities of the expected outcomes, and the uncertainty surrounding the proposed probabilities. (York University, 2011). The second part of the organizational learning process is interpretation. Organizations continually compare actual results to expected results to update to their memory. Unexpected results are then assessed for causation, actions adapted learning is therefore increased. (York University, 2011). The third stage is adaptation/action. This is when an organization takes the interpreted knowledge it has secured and uses it to select new action-outcome links appropriate to the new environmental conditions it finds itself competing in. (York University, 2011). This is a process of continual adaptation to any environmental conditions (internal, external, competitors, state of technology, etc) and will be therefore be affected to a large extent by the complexity and dynamism the organization experiences. (York University, 2011). Once adaptation has occurred, the firm’s knowledge base is updated to include the new action-outcome link, probabilities, uncertainty, and applicable conditions and the process continues. (York University, 2011). 3. Identify the learning activities in each feedback loop that Palm has already taken. Then identify the opportunities for organizational learning in each Feedback Loop. Make a Case that these are learning opportunities. Logically show how the feedback process provides an opportunity for the organization to learn and improve its performance. Organizations continually compare actual to expected results to update or add to their “memory”. Unexpected results must be assessed for causation, actions adapted or new action-outcome links specified if necessary, and learning increased. This feedback is a continual and iterative process, and occurs at all stages of the process. According to Argris & Schon (1978) there are three types of organizational learning activities: 1. Single-loop learning; 2. Double loop learning; 3. Deutero-learning. Single-loop learning occurs when errors are detected and corrected and organizations carry on with their present policies and goals. (Value Based Management, 2011)Single loop learning can be characterized as learning activities that add to the organizations’ knowledge base without altering the fundamental nature of the organization's activities. (Dodgson, 1993). Double-loop learning occurs when in addition to the detection and correction of discovered errors, the organization becomes deeply involved in the questioning and modification of pre-existing policies, procedures and objectives. This type of learning activity involves changing the organizations knowledge base. (Dodgson, 1993). Deutero-learning occurs organization learns how to carry out single-loop learning and double-loop learning. (Value Based Management, 2011). The first two types of learning activities will not occur if the organization is not aware that learning must occur. (Value Based Management, 2011). Awareness of ignorance motivates learning. (Nevis, et al, 1995). This means identifying the learning styles and processes required to promote learning. (Nevis, et al, 1995). This awareness makes the organization recognize that learning activities need to occur and that the appropriate procedures and environment need to be created. It is important to note that double loop and deutro-loop learning activities are concerned with the why and have to change the organization while single loop learning activities are concerned with accepting change without questioning and core beliefs. Furthermore, according to Dodgson (1993) “the type of organizational learning activities depends on where the organizational learning is to take place. Therefore learning activities can occur in different functions of the organization such as research, development, design, engineering, production and sales.”

REFERENCES
Argyris, C. and Schon, D. (1978). Organizational learning: A theory of action perspective. Retrieved from: http://www.valuebasedmanagement.net/methods_ organizational_learning.html
Business Dictionary.com (2011). Feedback loop. Retrieved from: http://www.businessdictionary.com/definition/feedback-loop.html
Dodgon (1993). Organizational learning: A review of some literatures. Retrieved from: http://www.valuebasedmanagement.net/methods_organizational_learning.html
Nevis et al, (1995). Understanding Organizations as Learning Systems. Retrieved from: http://www.valuebasedmanagement.net/methods_organizational_learning.html
SystemsThinking.org (2011). Systems Thinking: Archetypes. Retrieved from: http://www.systems-thinking.org/arch/arch.htm
Value Based Management.net. (2011). Organizational Learning. Retrieved from: http://www.valuebasedmanagement.net/methods_organizational_learning.html
York University Canada. (2011). Organizational Learning Theory. Retrieved from: http://www.fsc.yorku.ca/york/istheory/wiki/index.php/ Organizational_learning_theory