A Systemic View of Enterprise

Abstract

Uniqueness of person, organization, and environmental situation is a fact of life. Imitating practices that occurred in a different unique environment does not work well. Improving organizational performance requires managing within the constraints of two sets of variables that are specific to each organization: variables that connect the organization to the environment and variables that support individual human performances. Organizational variables include those relevant to two specific categories of value-adding outputs (the financial marketplace and the consumer service marketplace), and four specific categories of costly but necessary inputs (money, technology, materials and labor). The paper specifies ten guidelines for understanding and managing the interplay between the organizational variables and psychological variables. The guidelines permit systemic organizational and performance management which enables organizational improvement.

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