Introduction
An organization has numerous constituent parts, which are finance, marketing and personnel departments. The above functional departments interact in the course of daily operations of the organization. An organization is a subsystem of a larger system within the community.
System methodology assists in analysing the effects of interactions between organization and the surrounding, how the various feedbacks generated affect competence and effectiveness of the entity. System methodology is a discipline entailing viewing of objects holistically and as a communication of its integrated constituent.
Feedback is information generated from previous occurrences, later synthesised thus influencing future happening of a similar event. Such is representative of many organizations as many events form a vicious cycle where the output of an event becomes the input of the same event (Diederen 38). In an entity, there exist varied feedback results from events like auditing.
The feedback acts as a control tool and any logical organization looks at means of implementing the feedback to boost its performances. Feedback may be positive or adverse and its implementation endeavours improving management while making decisions.
Palm Incorporated
Integrated in the California state in 1992, Palm Incorporated specialised in manufacturing of electronic gadgets like smart phones. It is responsible for other products lik operating system facilitating development of the smart phones. Over years, this entity has majorly played in the software products thus aiding create leading computer appliances.
In the past decade, the organization has sold some of its shares to entities that are its strategic partners. In 2010, the entity became a Hewlett Packard’s subsidiary. The change in ownership allowed injection of more capital and facts, therefore, changing its fortune.
Before the entry of the strategic partners, the entity was facing a downturn, because of its inability to compete effectively with its rivals who had made considerable progress in developing cellular devices that acted as mini computers. Palm had failed to develop products that were at par with other competitors and gradually lost customers (Edward).
First feedback loop
Environment, organization’s narration and resource are inputs to the organization. The environment is the industry in which the entity operates and provides information as to the “taste and preferences” of the market (Edward). The environment include rival of Palm Incorporated who also manufacture electronic gadgets and software products.
To remain a feasible business, Palm Incorporated has to analyse the standards of its rivals. This is with the essence of ensuring that the entity is at par with the rest. Observation of market and rivals’ trend should help Palm Incorporated develop competitive products. Resources like workforce and raw materials are contributions into the organization assisting in the physical production of output.
An organization will always want to uphold the product’s quality and standards therefore maintaining its market share. Palm Incorporated is a leading firm in this industry and must maintain the quality associated with firms of its standards. Government regulators and other environmental concerns of the institute are part of the environment (Edward).
The regulator specifies standards that the Palm Incorporated and other firms have to meet to freely, operate in the markets. The production department at the reference firm ensures that the output has surpassed the regulatory standards. The above loop paints a brilliant depiction of how feedback information influences the organization’s operation.
In an organization selling products to the market, various factors named above generates feedback. The environment, including the competitors, institute measures trying to counter the products marketed by palm incorporated. Regulatory bodies perform tests on the product and ascertain whether it meets the quality needs.
The production department generates a report related to the usage of the allocated resources. The above swapping of information forms a loop that shapes how Palm Incorporated conducts its business. A variety of the information serves as input since it determines the expected output.
Second feedback loop
Since Palm Incorporated is a large corporation, it ought to publicise the financial results as per the statutory requirements. Given the technological advancement information travels at elevated speed (Argyris 2). A positive financial result affects Palm’s shares positively resulting in increased value. Moreover, a positive result creates goodwill, as it indicates that the company is doing well.
Furthermore, good results generate the above feedback, which is output from the organization. Generally, such information results in increase in the clientele level. Additionally, poor financial results are an indication that the entity is not effectively performing. However, such results are detrimental to the Palm Incorporated since they result in smaller value of its shares.
Most stakeholders in the financial sector interpret this as failure of the management to implement appropriate strategies that thus spurring its success. Furthermore, it would indicate an inadequate staffing resulting to underperformance. The effect is loss of clientele, therefore, worsening the Palm Incorporated situation. Such output generates feedback to the organization.
In addition, positive results connote that Palm is a financially sound organization and the management should further implement their policies to boost the organization’s performance. Negative results indicate the reverse, which is reversible through radical steps. In such instances, most corporations call for “extraordinary general meeting” to discuss the path necessary for the organization to take (Argyris 4).
Measures that most organizations institute, embrace ultimatums to management, firing of directors and seeking further investments. Financial results, bestow an indication of the profitability of an entity resulting from its activities, it therefore becomes paramount to analyse the feedback that result from publicising such results.
The above debate reveals a convoluted pattern of feedback generated by various actions resulting in a feedback loops. In this loop, publicising an entity’s results generates output into the system, followed by input, which is a variety of measures depending on temperament of financial results (Argyris 5).
Loops play a pivotal part in ensuring effectiveness in organizations as they form complex associations between various factors involved in running of an entity thus proofing the importance the feedback generated.
Theory of organizational learning
The basis of this theory is the ability of an organization to learn from its errors. It emphasizes the aptitude to distinguish and correct mistakes. However, an error implies disparity between what transpired and the anticipated budget. However, organizational learning is a dynamic speculation allied to behaviourist studies that
. gives insight in any erudition practice in an organization (Argyris 6). It admits that execution of feedback is difficult task especially when it is depressing. Precisely, the theory digs into the internal factors of an organization that deter not only employees but also the organization, from correcting errors.
This theory has highlighted corporate philosophies, policies and structures as deterrents to organizational learning. The theory brings in, a behaviourist characteristic of organizational learning by asserting that workers and managers have a central position to participate in this process. Majorly, workers are normally afraid of embracing their errors.
Regarding this theory, learning depends on the organizational flexibility, malleability and readiness to rethink current business exercises (Argyris 2). For efficacy in learning, the management and employees ought to aspire for change. Due to uniqueness of diverse corporations, strategies developed to foster organization are rather different. However, individual’s learning is division of organizational learning thus a platform for accomplishing the overall learning in the entity.
Learning opportunities
From the late 1990s to 2005 Palm Incorporated was on a down turn because of its inability to compete effectively.Given the nature of smart phone clientele, this entity was on a path towards failure, as its product did not match those of its rivals (Edward). Its strategic plan was very effective as it brought on board new shareholders who did not only bring in additional capital but too complimented the operation of Palm Incorporated (Edward).
The calculated plan was a response to failure of Palm’s clientele to purchase products. The feedback synthesised by Palm’s management, indicated that they had to make cellular devices that could rival those of other entities. Plunging sales resulted in actions that rejuvenated Palm becoming a leading organization in smart phones.
However, changes in shareholding enabled Palm to invest in research for purposes of developing advanced cellular gadgets. Additionally, plunging in the sales volume was the first indication for existence of problems (Edward). The management had to correct the dipping trends in sales, therefore, taking the necessary appropriate measures.
Merger with Hewlett Packard was a shrewd move, as the premeditated partners input more knowledge into Palm. Poor financial results result lowers the value of an entity’s shares culminating in loss in investment (Edward). The management need to swiftly in changing the financial fortunes of the entity.
Poor results indicate that policies governing the organization need re strategizing. This is possible through meetings that involve the directors with the responsibility of providing guidance on an entity’s policies
Works cited
Argyris, Chris. On organizational learning. Massachusetts, MA: Blackwell publishing, 2004. Print.
Diederen, André. Global Resource Depletion. Netherlands: Eburon academic Publisher, 2010. Print.
Edward, Cliff. HP Gets Its Hands on Palm. 2010. Web.