ORGANIZATION AND EMPLOYEES

The factors influencing the formation of the organization and the ways in which it treats its employees

Abstract

We argue that for society, government, and business to deal with evolving complex situations, organizational transformation must be based on a different paradigm: systems thinking. This paper investigates the nature of transformation, offers criteria for determining when transformation is useful, and postulates the requisites for successful transformation based on systems thinking. Tinkering at the margins and seeking cosmetic solutions to even the most urgent problems of our times have no doubt precipitated more problems and lackluster results. Engaging in approaches such as “continuous improvement” has only made things worse. Jill Jusko (2003) attributes four main reasons for organizational failures: 1) strategic or organizational mindset failures; 2) cultural bias and close-mindedness; 3) informational breakdowns; and 4) leadership mistakes. Although organizations are prone to mistakes in each of these dimensions, the strategic or organizational mindset failures top the list. Most organizations lack a paradigm that would facilitate perception and learning and have a political bias to conserve the previously successful ways of seeing, thinking, learning, and therefore acting. Too many organizations have attempted to transform themselves only to meet with failure. Some companies did not undertake transformation efforts until it was too late. Others did not plan and carry out the function properly. Still others were pursuing the wrong kind of transformation. The so-called transformed companies have often failed to adapt to client needs and haven't improved their processes to meet rising competitive standards. These “shock” changes are of a different class than the type of change that requires continuous improvement or even major adjustment.

The factors influencing the formation of the organization and the ways in which it treats its employees

Introduction

Numerous unresolved dilemmas characterize the beginning of the 21st century: the rise of transnational religious fundamentalist networks, asymmetric warfare, the Internet and globalization, jobs outsourcing, terrorism, and proliferating weapons of mass destruction. Society, business, and government either ignore the current situation or throw money at it. Leaders attempt to act without a reasonable presumption of success. Academics attempt to wrestle with the problems, only to find no clear answers within the traditionally narrow branches of learning. As the economy evolves, the rate of change accelerates at certain points in time. These fast-forwards occur when a major new resource becomes available or when there is a major shift in the relative abundance of existing resources (Walton 2005, 14-19).

Consequently, organizations that only yesterday appeared to be responsive and adaptive are experiencing profound change. Worse, they are now finding that familiar patterns of response to the unexpected are proving less and less useful for sustainability and the pursuit of a desired future. All of this is happening even though most organizations are continuing to do and do well the things that initially brought them success. In response, they are implementing a variety of corrective measures, including “organizational transformation.” But, in fact, most such efforts are failing. Albert Einstein once said: “Without changing our pattern of ...