Cybernetic approach to management

Cybernetic approach to management
See also
Controlling variants Early warning system Management functions Principles of scientific management Management by control Operational controlling Information resources Controlling Balanced scorecard

Cybernetic approach to management, or so called hard systems approach, treats the company, or in fact any organization, as a stand-alone system, having the following features:

• The ability to self-steering and self-organization,
• Maintaining a steady state, i.e. immunity to changes in environment (to certain level)
• The ability to retrieve information, material and energy from the business environment.

The cybernetic approach to management is a method of managing organizations that emphasizes the use of feedback and control systems to improve organizational performance. The approach is based on the principles of cybernetics, which is the study of control and communication in living organisms and machines. The cybernetic approach to management focuses on the use of systems thinking, feedback loops, and continuous improvement to achieve organizational goals. It is often used in industries such as manufacturing, healthcare, and government.

Assumptions of cybernetics approach in management

Treating the company as a standalone system allows the in-depth interpretation of the information and decision-making process carried out by the appropriate organizational units and positions. The purpose of this process is the appropriate control and regulation of processes in the enterprise. Process of controlling involves various economic values, and is based on the following assumptions:

• The characteristics that describe the operation of enterprise (economic metrics) should be quantifiable, that is expressed in a quantitative manner,
• There should be clearly defined ways of defining and measuring goals
• For each economic indicator, there should be given the reference value, which can be a constant within the specified time, or have certain course of variation (stimulant or destimuli).

The main assumptions of the cybernetics approach to management are:

• Organizations are systems: Organizations are seen as complex systems that are made up of interrelated parts that work together to achieve a common goal.
• Feedback is important: Feedback loops are essential for monitoring and adjusting organizational performance in real-time.
• Continuous improvement: Organizations should constantly strive to improve their performance through the use of feedback loops and other cybernetic principles.
• Communication is key: Effective communication is necessary for the functioning of the organization as a whole system.
• Decision-making: The cybernetic approach emphasizes the importance of decision making based on real-time data and feedback.
• Adaptability: Organizations must be adaptable to changing conditions and environments.
• Control: The approach emphasizes the need for control systems to manage the organizational system.
• Human and technological factors: The approach takes into account both human and technological factors that influence organizational performance.
• Holistic view: The cybernetic approach focuses on a holistic view of the organization and its environment.
• Interdisciplinary approach: The approach uses an interdisciplinary approach, combining principles from fields such as systems theory, cybernetics, operations research, and management science.

Advantages of cybernetics approach in management

The cybernetics approach to management offers several advantages:

• Systems thinking: The approach focuses on understanding the organization as a whole system, rather than as a collection of separate parts. This allows managers to identify and address the interrelated factors that affect organizational performance.
• Feedback loops: The use of feedback loops allows managers to monitor and adjust organizational performance in real-time, making it possible to quickly identify and correct problems.
• Continuous improvement: By using feedback loops, the cybernetics approach encourages a culture of continuous improvement, where managers are constantly seeking ways to improve organizational performance.
• Flexibility: The approach is flexible and can be applied to different types of organizations and industries, such as manufacturing, healthcare and government.
• Decision Making: The approach helps managers to make more informed decisions by providing them with real-time data and feedback on organizational performance.
• Adaptability: The approach allows organizations to adapt to changing conditions and environments, by constantly monitoring and adjusting their performance.
• Cost efficiency: By identifying and addressing problems in real-time, the cybernetics approach can help organizations reduce costs and improve efficiency.

Limitations of cybernetics approach in management

The cybernetics approach to management also has some limitations:

• Complexity: The approach can be complex, requiring managers to have a deep understanding of systems thinking, feedback loops, and other cybernetic principles.
• Data collection and analysis: The approach relies on the collection and analysis of large amounts of data, which can be time-consuming and expensive.
• Limited applicability: It may not be suitable for certain types of organizations, such as those with very simple structures and processes.
• Technical expertise: The approach requires managers to have a certain level of technical expertise in order to effectively implement and use the systems and tools involved.
• Dependence on technology: The approach is heavily dependent on technology, so organizations may be at risk if the technology fails or is unavailable.
• Limited human perspective: The approach is based on a systems perspective and may not take into account the human factors that influence organizational performance, such as motivation and culture.
• Short-term focus: The approach may have a short-term focus, with less attention on long-term strategy and vision.

It's important to note that while the cybernetics approach has its limitations, it can still be a useful tool for managers looking to improve organizational performance if implemented and used correctly.

References

• Ashby, W. R. (1956). An introduction to cybernetics
• Boulding, K. E. (1956). General systems theory-the skeleton of science. Management science, 2(3), 197-208.
• Kast, F. E., & Rosenzweig, J. E. (1972). General systems theory: Applications for organization and management. Academy of management journal, 15(4), 447-465.
• Wiener, N. (1948). Cybernetics. Paris: Hermann.