fdht

The challenge
When a major transformation occurs in one of the « dimensions of an organisation », has the company really measured the consequences on the other dimensions of the system, or on the contrary, does it retain tools/dimensions that may be outdated in terms of the new challenges facing the company ?

1 - Identification of the « dimensions of an organisation »
In the preceding auto-evaluation, industrial case histories were presented. Using certain of these, we suggest you try to identify which of the various dimensions of the organisation are involved in the event described.

Search for the « dimensions of the organisation » in the case of the electronic components company (situation 1 and situation 2).

This was the Indian company that had begun to manufacture electronic components for the « general public » using a new technology to that used for the « professional » components it had been producing for a long time with a familiar technology.

Mass production requires both workers and engineers to master these new tools. Improvements in output of 50% (from 50% to 75%) took 2 years. The competencies of the workers were systematically developed.

Question : which « dimensions of the organisation » are affected by this development ?

Suggestion for consolidating the dimensions of the organisation involved in the developments in the case of the electronic components company.

The company’s market has changed : besides power components which are still technologically relevant, the company is entering a promising new market, that of « general public » components.
The machines are automated and require more training and greater adjustments than before. The technical system has been modified.
The work organisation has changed. The workers, instead of working directly on the material, have the role of overseeing and checking the fluidity of the processes : their competencies are evolving.
The management must also teach the workers about the problems, dysfunctions, and defects of the new process. They must learn to communicate with each other.
The management tools (analytical accounting) have to be totally revised.

Dimensions affected : market, technical system, work organisation, management, management tools.

Identification of the « dimensions of the organisation » in the case of the vegetable canning factory (situation 3)

This is an agri-food company canning vegetables that has acquired its first automatic machine to put the lids on the tins.
For the food engineers, conversant with health–food safety issues, mastery of this new electronic tool is problematic : new players therefore appear on the production scene : electromechanical technicians. Moreover, the engineers are obliged to perfect their food industry competencies in the field of electronics.

Question : which « dimensions of the organisation » are affected by this development ?

Suggestion for consolidating the dimensions of the organisation concerned by the changes in the case of the canning factory.

The change of technical system brings about transformations in other dimensions of the organisation.
The place of the maintenance staff is now essential to the functioning of the workshop : the work organisation has been permanently transformed, even though the engineers have been obliged to train in electronics as well.
The management tools must also be reviewed, as in the preceding case.

Dimensions affected : technical system, work organisation, management tools.

Identification of the « dimensions of the organisation » in the case of the garment factory in Sri Lanka (situation 5)

In Sri Lanka, the personnel manager of a big garment company is at a loss to understand the behaviour of the workers : absenteeism of over 20% and an annual staff turn-over of around 100%.

Question : which « dimensions of the organisation » are affected by this development ?

Suggestion for consolidating the dimensions of the organisation concerned by the changes in the case of the garment factory in Sri Lanka.

The starting-point for the changes awaiting the company is related to the socio-economic environment : the behaviour of the workforce is dominating the company. If the company wants to reduce the « hidden costs » linked to the high level of absenteeism and staff turn-over, it must take certain measures in various fields : management (support, rather than verification), work organisation (improvements to working conditions), but also management tools (evaluation of the hidden costs to encourage loyalty through wage increases).

Dimensions affected : socio-economic environment, work organisation, management tools, and management

Summary of the « dimensions of the organisation » to be systematically examined

A company is in permanent interaction with the market, and the conditions of the technical system, but also with the transformations in its environment.

Within the company, the work organisation, management tools and management conditions are affected at the same time by external transformations. Voluntary action in one dimension may therefore have involuntary consequences for other dimensions. We would like to put forward a list of the principal dimensions we have noted, six in all.

Market : clientele, diversification of products, renewal, semi-finished goods, competition, prices
Socio-economic environment : education, living standard, means of transport, habitat, and public health
Technical system : production materials, technologies, requirements, and possibilities
Work organisation : tasks, qualifications, competencies, distribution of tasks, trades, and responsibilities
Management : accounting standards, analytical accounting, management control, and quality of the products
Management : leadership style, guidance, training, and management of the workforce

None of these dimensions is independent of the others : they form a system.

Ways of measuring the systemic competence of the management :

Firstly : identify the major transformations that have occurred in the company « system » over the past 2 – 3 years. For each « system », suggest that the management list the main developments that have taken place in the following dimensions : market, socio-economic environment, technical system, work organisation, management, (costs, analytical accounting) staff management.

Secondly : after a description of the changes, get them to list the changes/impacts implemented by the management in the other dimensions.

Thirdly : the auditor highlights areas where there is a lack of coherence in the company’s systemic transformations together with the company manager in order to check his ability to develop his organisation, his management and HR management, thereby responding to the social expectations of the customers whilst at the same time improving the economic conditions under which the goods are produced.

For further information :

• Schwaninger M., Intelligent Organization. Powerful Models of Systemic Management, Springer (2009) • Simon F. B., The Organisation of Self-Organisation. Foundations of Systemic Management, Carl Auer (2004)

Conclusion

As is its custom, the FDHT does not offer any conclusion.

It is for NGOs, Unions and companies to take up or reject these views.

The FDHT’s only opinion is that the evolution of the social assessment is relatively inevitable !