FLEXIBLE SYSTEMS APPROACH TO MANAGEMENT IN A BORDERLESS WORLD

SUSHIL Department of Management Studies Indian Institute of Technology Hauz Khas, New Delhi-1 10016

ABSTRACT /The managerial issues in a borderless world are becoming far more intricate and complex and requires to be handled differ- ently at different levels in diverse situations. There is a need to resolve the paradoxes in literature regarding various schools of thought, and as a response to this a flexible systems approach to management is presented in this paper as a spectral and integrative paradigm. The critical managerial issues in the borderless world are outlined , and the utility of this spectral and integrative paradigm is emphasized for handling them effectively.

1. INTRODUCTIQN

The barriers across the world are gradually diminishing under the changed economic and technological scenario. This is pos- ing newer challenges to manage the emerging situations and thus requiring newer paradigm to match with the reality more effectively. Systems concepts and methodologes are developed as a response to the ever increasing complexity of the socio- technical and managerial systems. Many techniques and a p proaches based on systems philosophy have been developed which help in analyzing various problem situations in multiple ways. In past, attempts have been made to judge the suprimacy of one technique or approach Over the others, hut all such de- bates have not been able to lead to conclusions which are uni- versal in nature. Different approaches have found favour in different situations, and have their own strengths and limita- tions. The task of designing or selecting methodology for a particular problem situation is becoming more difficult with ever increasing choice of techniques. It has been a constant endeavour in systems thinking to relate the developments in systems based techniques and approaches to project the trends and develop conceptual frameworks. Bertabnfy (1972) has reported exten- sive developments in the field of General Systems Theory and discussed the trends in Systems Science; Mathematical Systems Theoy; Systems Technology; and Systems Philosophy. Gen- eral Systems Theory worked to structure sciences and systems (Boukiing,1956) and tried to provide answer for a variety of systems such as material systems, informational systems, and conceptual systems. It worked more as an umbrella under which the philosophml as well as mathematical systems concepts de- veloped. The system mowm"en has been reviewed by Cheddand (1981a,b) giving developments on different fronts and finally concluding the earlier devebpment to be on the hard systems thiiking and the newer developments to be more on soft sys- tems thinking with a "learning" paradigm. Though it tries to rethink the systems approach it more resulted into systems think- ing at the ends of the systems continuum. In order to use the available techniques more systematically there is an increasing trend to develop schemes that relate these techniques in a mean- ingful manner. A thought provoking review by Troncale (1988) puts the developments in systems sciences together. It defines the domains of systems science as General Theory of Systems,

Systems Theory, Systems Analysis, and Systems Applications. It provides a morphology of afferents fields of knowledge re- lated with systems science, and elso linkage propositions be- tween systems concepts (isomorphies). Further, it outlines vari- ous systems techniques or methods inchding both 'had and 'soft' types. It discusses the unified spectrum of systems a p proaches and the opportunities that could be derived from infor- mation transfer between operational research and systems xi- ence such as,: (i) a rigorous taxonomy of systems,

3 (ii) a rigorous taxonomy of isomorphies; (iii) a rigorous taxmonomy of general systems functions; and so on. This pa- per derives inspiration from such a relational approach and dwells further to propose a cohesive methodological framework that captures the essence of spechal and relational thinking and pro- vides a flexible approach of using the isomorphies and systems techniqws and methods. A set of consensus methodologies is being suggested by Warfield (1990) while presenting a science of generic design. The set of consensus methodologies is com- posed of primarily the qualitative techniques. The concept is expanded here to invohre the whole range of techniques from quantitative to qualitative. Another recent development is the concept of "Total System Interwntion" as proposed by Flood and Jackson (1991). The concept of "Total System Interven- tion" t a b of six clusters of systems based techniques in view of the systems to be simple or complex and the people to be uni- tary, pluralistic or coercive in different problem situations. It finally leads to the selection of a particular technique for the problem situation in a creative manner. He-, the concept is further generalized to enmash the clusters so as to form a con- tinuum of systems based techniques which can be used flexibly by suitably interfacing these techniques as per the requirements of the problem situations. The use of relating various systems modeling- approaches can be effectiwly seen in the area of De- cision support System (Dss) and Artifical Inteltigence (AI), which present quantiative as well as qualitative approaches in cohesive and symbiotic hameworks. These have been called by different names like expert support systems, intelligent decision support systems, knowledge based decision support systems, etc. Thus, it can be seen that the philosophy of integration of quantitative and qualitative tools is emerging very rapidly to cater to the diverse requirements of the decision making and managerial processes. DeWng inspiration from the developments in sys- tems methodow in terms of schemes of systems techniques, and a wide applicability of integrated systems in computer based management, the philosophy of integration of techniques is gen- eralized over the whole spectrum of system tecWiques in the framework of Flexible Systems M e t h o d o k g (Sushil,l993). It is presented in the form of an evdving approach, in subsequent sections, which can take care of the varied requirements of prob- lem situations in a flexible manner. The need for a new para- digm is highlighted by outlining the critical managerial issues in a borderIess World. Then an ovewiew of the Flexible Systems

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Management is provided in terms of its purpose , philosophy , paradigm, steps ,strengths and limitations,

2.CRITICAL MANAGERIAL ISSUES Some emerging critical issues in a borderless world are as fol- lows: i) Free flow of Information ii) Cybemetic Society iii) Globalisation iv) Cross Cultural Management v) International transactionsvi) International Market vii) Technological Change viii) Organisational Change ix) Environmental Conflict

2.1 Free flow of Information The flow of information with latest technology has led to the creation of a borderless world in a big way.At the same time a borderless world desires a more free flow of inforrnation.This requires newly integrated systems to be designed and managed. As these systems are large and complex having various levels of implementation, the problem related to them lie on the whole continuum from well strctured to unstrctured and needs to be appropriately managed.

2.2 Cybernetic Society Another related issue with the advent of new information tech- nology is its impact on the Society which is now gradually chang- ing to a 'Cybemetics society' in view of the availability of right information at the right place and time. An appropriate integra- tion of concepts and techniques of Cybernetics is going to make the analysis and design of societal systems to be more effective.

2.3 Globalisation The business is being globalised as a consequence of the cre- ation of a borderless world. This leads to the expansion of busi- ness across the globe and create new challenges due to the mul- tifaceted diversities across the globe. This requires varied ap- proaches to handle the business problems in a global context.

2.4 Cross Cultural Management The projects in a borderless world are faced with a unique man- agement requirement dealing with people from different cul- tures and background. It requires a flexible approach to cater to their diverse requirements in an interactive framework. 2.5 International Transactions The transactions in a borderless world takes place at an interna- tional level more freely. These transactions, though taking place in a more open manner, involve different levels of complexities at the level of currency ,customer requirements, technology, social customs, etc. Thus , the handling of international transactions need an approach which is more flexible and can accomodate the differing levels of complexities.

2.6 International Market The market is expanding to be more international as the world is becoming more and more borderless. It demand meeting re- quirements of customers of diverse backgrounds , thinking and needs. Thus, to manage an intemational market is forced with newer levels of complexities and demands to be handled in a

more integrative manner so as to bind the diversities at the inter- national level into a common market.

2.7 Technological Change The technological change is taking place very fast , and the technologies being more freely transfered this change has been accelerated. The techniques and methods which used to deal with older technologies need not neccessarily be effective with newer technologies. These methodologies for managing tech- nologies need to be either amended , or newer methodologies to be developed or the methodologies to be suitably integrated to cater to the changed requirements. The fast pace of techno- logical change is creating newer kinds of complexities, leaving the organizations at the diverse levels of technologies at the same time coping to update the technological change and de- manding a more flexible and integrative approach.

2.8 Organizational Change In view of the changed techno - economig and socio - political world scenario the organizations are undergoing a rapid change. It is introducing newer challenges before the organizations to manage the change on different fronts. This requires newer methodologies / approaches to be developed for managing the organizational change. A more spectral and integrative view point rather than an isolationist view point (which is comparatively more static) will be appropriate to manage the organizatioanl change .

2.9 Environmental Conflict Environmental conflict is arising at the international level with the fast changing technologies . The issue of environment is becoming far more critical and complex and desires a new inte- grative approach to resolve the emerging conflicts.

3. FLEXIBLE SYSTEMS MANAGEMENT : AN OVER- VIEW An overview of the flexible systems management is provided in terms of its purpose, philosophy 3.1 Purpose To formulate a problem solving approach based on systems phi- losophy and using systems techniques flexibly for problem situa- tions lying on the whole continuum, e.g. ranging from unstruc- tured to well structured.

3.2 Philosophy There are two possible extreme philosophies to handle prob- lems by conceptual frameworks, e.g. isolationlist and situtational. According to isolationist philosophy a best approach is to be developed which will be useful in all possible problem situations. Traditionally, a lot of work in this direction has been done in different disciplines. For example, in management spheres attempts had been made to develop a management style which is the best. In systems literature work on develop- ment of frameworks was done to suit all classes of problems, e.g. General Systems Theory (G.S.T). (Klir, 1969) On the other hand the situationalphilosophy believes in devel- oping a unique approach for each problem situation. It is built on the belief that every problem situation is unique in its own right, and thus, needs a unique way of handling it. For example, situational management, and developing heuristics to

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solve typical problems. Both these philosophies have worked but had encountered fail- ures also. The isolationatist view is bogged down with the devel- opment of a grand paradigm, which is an ideal and difficult to be achieved, and thus, to encompass every possible variation in a single approach is almost self defeating. Moreover, a lot of debate takes place to judge the supremacy of the approach, and the practical aspects are ignored. Similarly developing a unique approach for each problem situation is very time and resource consuming, and thus, is not a practical proposition. The philosophy which lies in between these two extremes is of “flexibility”, and is the basis of the proposed methodology. Ac- cording to it there are multiple ways of reaching to the same end, and the suitability of the way or a combination of ways will depend upon the nature and attributes of the problem situation at hand. It does not advocate to invent a new approach for each problem situation, rather select an approach out of the existing well researched ones, or a suitable combination of them so as to match the requirements of the problem situation. It thus integrates all systems approaches and techniques into a family in which every one either individualljt or collectively con- tributes meaningfully. The similar spirit lies in other disciplines ak0,e.g. contingency theory of management. (Luthans andStew- ard, 1977).

3.3 Paradigm The Flexible Systems Management is built on a “spectral and integrative” paradigm. Some important continuum are shown in Fig.1 .The Flexible Systems Management proposes to use the programmed as well as cpiative approaches in an interactive manner. There are many-mow-fronts on which flexibility can be predicted , e.g. steps of problem solving , type of model , data bases , managerial levels , environment , people , information , and value system. It tries to resolve the end of continuum para- doxes as it is based on the spectral paradigm, treating all the systems based methodologies and techniques to lie on a con- tinuum ranging from hard to soft; and all the problem situations also on a continuum ranging from well structured to unstruc- tured, as shown in Fig 2. As can be seen by the basic nature of various systems based methodologies and techniques they may be at different points on the continuum from hard to soft. There is a heavy clustering of methodologies and techniques towards the ends of the con- tinuum, leaving a gap in between as shown in Fig.3 ; as the two goveming paradigms had been “optimizing” or hard systems thinking and “leaming” or soft systems thinking. For exampie, the technique such as Linear Programming, Goal Programming, Search Methods, Physical System Theory, etc. are llhard in their design, whereas the approaches such as Soft Systems Methodology, Interpretive Structural Modelling, Delphi, Scenario Building, Group Problem Solving Techniques, etc. are clustered on the soft side. There are very few approaches which lie on the middle part of the continuum in between the hard and the soft,, e.g. System Dynamics. (Forrester, 1961) It can be seen that the problem situations in the real life are not clustered on the ends of the continuum, i.e. well structured or unsbuctured. The problem situations in real life lie on the whole continuum; rather practically more on the middle part than the ends. Thus, in order to apply the existing systems based meth- odologies which are primarily clustered at the ends of continuum,

to the problem situations which lie more on the middle part of the continuum, assumptions are to be made to match the two, so that either the harder or softer approaches are adopted. There is a need to bridge the gap on the continuum of systems based methodologies as shown in Fig 3. This gap can be bridged by creating new techniques and methodologies which can cater to the problem situaHons lying in the middle part, i.e some por tions well structured and some ill structured at different levels of structuring; which is going to take its own time. Moreover, it will further add to the existing set of techniques and will de- mand more from the user in selection of the appropriate ap- proach. The altemate and a more pragmatic way of bridging this gap is to follow an “integrative” paradigm, i.e integrate different exist- ing techniques and methodologies suitably to bridge the gap. The hard approaches are to be made comparatively softer by interfacing with softer approaches, and softer approaches are to be made harder by intefacing with harder approaches to make them effectively handle comparatively harder problem situations. This will make a movement from the ends towards the middle and the gap will be filled by suitable integration. However, ample care should be taken while integrating two or more systems based techniques that the integration should not be superficial; it should be done by matching the philosophical and theoretical founda- tions of the techniques to be integrated so that deep linkages can be established. The integration can be of different types, e.g. one way integration; both ways integration; submerging of one into another with identity;and full mixing of two techniques, as shown in Fig 4. The Flexible Systems Management proposes to work with different types of integration of well researched systems based methodologies to suitably complement their strengths and weaknesses as the situations warrant. Some ex- amples of well tried integrations are physical system theory (Koenig, et al, 1967) with System Dynamics (Forrester, 1961) by Vij, Vrat and Sushd (1988), and Kumar and Satsangi (1993); Linear programming and Goal Programming with Physical Sys- tem Theory by Singh and Sushil (1990); System D y ~ m i c s with Fuuy sets (Zadeh, 1961) by Pankaj, Seth and Sushil (1992); System Dynamics with Monte CarloSiubtion by Pankaj (1992); System Dynamicsyith Interpretive Sbuctural Modelling (Warfield, 1990) by Pankaj (1992), and Vizaykumar, (1990); Delphi with System Dynamics by Bora (1981); Interpretive Sbudural Mod- eling with MICMAC (Godet, 1987) by Saxena, Sushi1 and Vrat (1990); Delphi and Analytic Hierarchy Process (Saaty, 1984) with Fuuy Set Methodology by Saxena Sushil and Vrat (1990); Nominal Group Technique with Interpretive Structural Model- ling by Warfield (1990); Expert systems with Decision Support Systems by Luconi et al(l986) and many others as discussed in the section 1; and so on.

3.4 Steps The steps in the implementation of the proposed flexible sys- tems methodology are as follows:

3.4.1 Conceptual@ation: The problem situation is to be conceptualized in terms of the nature of systems and people involved, and its attributes of struc- ture, nature of outcome desired, level in the organization, chr- ity, uncertainty, data availability, fundional area, situation spe- cific characteristics, etc.

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3.4.2 Fuzzy Clustering : In terms of nature of systems and people involved in the prob- lem situations and in view of their attributes the problem situa- tions as well as the systems bas$ techniques need to be clus- tered in a fuzzy manner. That is a problem situation as well as a technique will have a membership function in different possible clusters. Different altemative clustering approaches can be used. One useful way available with the literature is of Total Systems Intervention (Flood and Jackson, 1991). This can be converted into “Fuzzy Total Systems Intervention” as in the real life it is difficult to say that a problem situation involves systems which are either simple or complex, and the people are unitary on pluralistic. These can be treated as fuzzy sets and the fuzzy clustering of problem situations and techniques can be done. Thus, by knowing the characteristics of the problem situation the possibility of the usefulness of a set of techniques can be assessed. An expert system for this can be prepared or this can be done in a more creative manner.

3.4.3 Matching Attributes: The specific attributes of the problem situation in terms of struc- ture, clarity, uncertainty, etc. can be matched with those of the systems based techniques which have been identified with com- paratively high possibility.

3.4.4 Selection : Based on the matching of the attributes either one or a set of systems based techniques can be selected for analyzing the prob- lem situation that can be used either in succession or in combi- nation for different components of the problem situation. The selection can be facilitated through the use of Expert Systems, or can be practised in a creative environment.

3.4.5 Integration : Different schemes of integration of techniques can be adopted. Some possible ones are as shown in Fig. 4.

- Using techniques in succession. - Using different techniques for different components

- Using a both way integration of techniques. - Using submerging of one technique into another. - Using an amalgamation of techniques leading to a

in the problem situation.

new technique.

3.4.6 Impleknentation: Once a suitable approach is designed in terms of proper selec- tion and/or integration of the systems based techniques this should be inplemented to model and analyze the problem situa- tion at hand. The nature of implementation will depend upon the type of techniques finally selected.

3.4.7 Dynamic Shift : As the problem situations are analyzed using a particular set of systems based techniques and interventions are made, their takes

place a dynamic shift in the attributes of the problem situation and so in the use of techniques required for analysis. The appli- cation of the proposed methodology can be done tlexibly on the continuum of fully creative to fully computer assited, depending upon the nature of problem situation, cognitive burden, and expertise available. The above mentioned steps are only sug- gestive guidelines to design an appropriate approach. The pro- cess of selection and integration of techniques is to be adopted flexibly in the practical situations.

3.5 Strenghs and Undtations The major strengths and limitations of the proposed flexible sys- tems methodology ( sushi1 , 1993) are as follows:

3.5.1 Strengths : (i) It puts together all the systems based techniques in a cohe- sive framework (ii) It complements the strengths and weeknesses of different techniques so as to use them effectively in a problem situation. (iii) It provides a conceptual framework for the selection of appropriate methodology to analyze a problem situation in its totality. (iv) It bridges the gap between qualitative and quantitative techniques by their suitable integration. (v) The methodology designed to analyze a problem situation is more realistic and the assumptions in modelling are minimized. (vi) It is flexible and can be adapted to suit any problem situa- tion according to its requirements. (vii) It facilitates more leaming of the user about the nature of the problem situation and its (viii) It resolves the paradoxes in literature about “hard v/s soft systems thinking”, “ quantitative v/s qualitative analysis”, etc. (ix) It inbuilds more creativity in the analysis of problem situa- tions. (x) It brings different schools of thought closer to each other.

conceputalization.

3.5.2 Limitations (i) It requires for the user to have the knolwedge of the whole spectrum of systems based techniqws, thus calling for an higher level of expertise. (ii) It demands time and resources for the selection of appro- priate techniques and design of the methodology. (iii) It needs more research to be conducted to suitabily inter- face differrent modelling methodologies. (iv) It requires more software resources to practice complemen- tary methodologies. The above limitations, to a great extent, can be overcome by developing a suitable “Expert System” for this purpose. A research project in this area is in progress under the supervision of the author.

4.CONCLWDING OBSERVATIONS The analysis and design of problem situations in a borderless

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world requires a methodological support that can cater to its varied requirements. Flexible systems management provides a comprehensive framework of using existing systems based tech- niques in an integrative manner to suit the needs of managing projects in a borderless world.The methodoh either can be applied at a fully creative level or some support can be provided to reduce the burden on the user by designing suitable expert system for this purpose. Some applications of this approach have been tried out at I.I.T.,Delhi, and the response is very en- couraging. However, this can at best be treated as a good begin- ning point for using the existing systems based techniques in a more pragmatic manner for management in a borderless world.

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