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Agency & Self-Organization. The Boisot – Spender Show 2011. Day 1 session overview. design. self-organization. agency. managers designing organizations organizations as systems self-organizing systems researching agency. organization. to Max’s point – organization or firm ?
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Agency & Self-Organization The Boisot – Spender Show 2011
Day 1 session overview design self-organization agency managers designing organizations organizations as systems self-organizing systems researching agency ESADE Boisot - Spender 2011
organization • to Max’s point – organization or firm ? • structure – what source/s ? • Option 1 – orgs are designed by deploying what principles ? • alternative Theories of the Firm (ToF) • analyzing ToFs • Exhibit A - production function / supply & demand ESADE Boisot - Spender 2011
bureaucracy ESADE Boisot - Spender 2011
design principles • goal, purpose, objective, mission, intention … • Weber’s 7 principles • Taylor’s 7 functionals • Smith’s division of labor • value chain – design & coordination • dominant ToF ESADE Boisot - Spender 2011
fitting the organization into the environment • design extended = arranging resources into a context • SWOT • Chandler – strategy & structure • Ansoff matrix • GE matrix these are ‘theories of the firm’ - but only as dynamic as the firm’s strategizing ESADE Boisot - Spender 2011
session overview design self-organization agency managers designing organizations organizations as systems self-organizing systems researching agency ESADE Boisot - Spender 2011
feedback • when the arrangement of resources leads to interaction? • dynamic view • emergent characteristics • ‘systems thinking’ $ Gain G Star Population Yield from ?? s G > (A+B+C) = survival ? Loss B Loss A Funds from Cash Cows Evolution from Stars to Cash Cows Loss C ESADE Boisot - Spender 2011
feedback + sensing + acting • internal & external sensing data • meaning, ‘objective function’ & constraints • computation, action, and intelligence • system elements • cui bono – cui intentio ? ESADE Boisot - Spender 2011
static or dynamic models ? Yum yum OOPS ! ESADE Boisot - Spender 2011
more complex … from the New York Times, April 26 2010 ESADE Boisot - Spender 2011
research strategy - reduction / holistic systems mathematical abstractions – laws without content which level of the analysis determines the system’s emergent characteristics ? reductionism micro-foundations descriptions of elements - content without meaning rigor vs relevance ESADE Boisot - Spender 2011
system boundaries ? ESADE Boisot - Spender 2011
‘microfoundations’ - Hayek & Simon • designer - designee • Rational Man ? • mirror neurons • Bounded Rationality • organism • autonomous entity • self-organization • autopoiesis Simon’s theory of administration ? ESADE Boisot - Spender 2011
Knightian uncertainty (U) and agency • risk – population statistics are available • uncertainty U – pop stats are NOT available • then what? • agency • Knight says Uis what makes profit possible • entrepreneurship is about judgment under uncertainty = agency ESADE Boisot - Spender 2011
session overview design self-organization agency managers designing organizations organizations as systems self-organizing systems researching agency ESADE Boisot - Spender 2011
agency as judgment under U entrepreneurship strategy innovation • agent = actor ? on behalf of ? subordinate ? • agency – bringing judgment into the world • imagining – as opposed to reasoning • imagining ≈ breaking the causal relationship – what is known • how to talk about, research agency ? • structure & agency • principal – agent theory ESADE Boisot - Spender 2011
session summary design self-organization agency • Research questions: • Who or what possesses this organizing ‘agency’ ? • What is it and how might one theorize it ? ESADE Boisot - Spender 2011
