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CWO Exam Summary
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A summary of all theories and models of the tutorials and lectures, as well as the compulsory papers.
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Loosely coupled (Scott, 2003)Used in open system theory where elements of the organization are weakly connected and can act fairly
autonomously. This extends to structural units like work groups or departments, where some may be
closely connected while other remain loosely connected or independent. Organizations are viewed as
coalitions of shifting interest groups, rather than rigid hierarchies.
Productivity paradox: Despite significant investments in information technology, enhancing individual
worker productivity may not necessarily lead to overall productivity growth at the departmental or firm
level, posing challenges for organizations and the broader economy
Technology
Technology is the combination of machines, methods, and people through which materials are
transformed into outputs. To analyze technology, three components should be considered:
1. Complexity: the number of different items an organization has to deal with. Sources of
complexity:
a. Variety/differentiation: amount of specialism and products that are offered.
b. Dynamism: low dynamism what worked last year will work this year.
c. Causal mechanisms: Straightforward if people show up, other people are likely to
show up.
2. Uncertainty: How much work-related items can vary and can be predicted in advance.
Variability of input, exceptions in the work process, number of major product changes.
3. Interdependence: How much one activity/stakeholder can influence others.
Open systems (Scott, 2003)
Open systems are defined by their interaction with the environment, exchanging resources and
information. They interact with and depend on their surrounding for inputs, and in turn, generate outputs
that affect their environment. Open systems contain either morphostasis and morphogenesis as a
consequence of natural evolution:
Morphostasis refers to processes that maintain or preserve a system’s form, structure, or state
Morphogenesis involves processes that elaborate or change the system, such as growth or
differentiation.
The environment plays a crucial role in maintaining diversity and variety within open systems. Therefore,
open systems must adapt to their environment to maintain their vitality. In open systems, the flow of
information allows for the continuous exchange between entropy and negentropy.
Entropy: If you don’t do anything, the system will evolve by itself due to some sort of disorganization.
Negentropy: if the system operates as an open system, it is able to take the essential resources, then
learning specific rules etc. It is something positive, because the organization is able to take something
from the environment (input and resources) in order to create routines, in order to function.
Law of requisite variety
A system’s internal complexity (variety) should exceed the complexity of the environment in order to
adapt. In order to control a system effectively, the controlling system must have at least as much
complexity as the system it is trying to control. Only variety absorbs variety because organizations
need to develop. Internal complexity is needed to cope with external complexity. In the cave case,
experts from all around the world were needed to save the people. It would have never been possible
to solve the case with only Thai diving experts. In reality, this can never be completely true, because
the organization’s environment will always be more complex than the organizational complexity.
Therefore, differentiation is needed.
Law of Limited variety
Keeping things as simply as possible. A system will exhibit no more variety than the variety to which it
has been exposed in its environment. A system’s internal complexity (variety) should match the
, complexity of the environment in order to survive. Example: you do not invite 10.000 experts from all
over the world to solve a case that can be solved by 5 experts.
Contingency theory (Jay Gailbraith/Scott, 1973/2003)
There is no best single way to organize. Any way of organizing is not equally effective. The best way of
organizing depends on the nature of the environment to which the organization relates.
Organizations with internal features that align best with the demands of their environments will
achieve higher performance.
Lawrence & Lorsch: Fit (fit between demands from environment + what is provided from within).
There needs to be a fit between external demands and the internal structure design. Less complex
less differentiation. Keep in mind that the more differentiated an organization is the more it is
required to actually create alignment procedures within the organization.
Internal perspective: fit among key design components (fit within organization itself)
Weick’s model of Organizing and Sense Making (Karl Weick)
“Organization” is a noun and myth, instead, attention is on the process of “organizing”. This is the
process of resolving ambiguity in an enacted environment through interlocked behaviors embedded
in conditionally related processes. Sense is not inherent in the information itself but is actively
constructed by individuals and organizations as they engage with their environment. The model helps
explain how individuals and organizations process information, make sense of it, and take actions
based on their interpretations.
Enactment: the process of taking action or making decisions based on the information
available to an individual or organization. Action is not just a response to pre-existing
information, but shapes and creates the information itself. People and organizations actively
participate in creating their reality through their actions.
Selection: Choosing form various available cues, data, and information. Individuals and
organizations selectively attend to information that is relevant to them based on their goals,
values, and the context in which they are operating. This shapes what information is
considered meaningful.
Retention: information must be retained when it is selected. Memory allows individuals and
organizations to draw on past experiences and information to make sense of current
situations. Memory can be both individual and collective within an organization.
Types of interdependencies
1. Pooled interdependence: combining all inputs lead to the product without mutual
dependence. I need not to interact myself with other members because what I produce is
being combined with the work of other departments.
2. Sequential interdependence: Some activities must be performed before others. Before
getting gin to the production department the design department needs to make the design of
the product.
3. Reciprocal interdependence: Activities relate with each other as both inputs and outputs.
Some information that project team A has comes from project team B and feedback is
necessary for the success of the project.
Coordination Mechanisms
Used to coordinate within organizations when differentiation emerges. We have to establish some
rules to which the organization can better function in its work
1. Conventional mechanisms: Rules, schedules, departmentalization, hierarchy, delegation
2. Advanced – reducing amount of info to be processed: Product vs. functional structure and
slack
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