REPLY Why don't organizations function better? (SD6624)

[SDMAIL Zagonel-Santos, Aldo A]

Posted by  "Zagonel-Santos, Aldo A" <aazagon at sandia.gov>

Some of the discussion in this thread seems to imply that we greatly value 
the principles of institutional economics when dealing with people as agents 
within organizations. Jean-Jacques's recent posting underscores the principal-
agent perspective. Specifically, he indicates the need for the principal to 
set up proper information and financial feedback mechanisms, and to establish 
a procedure for sending the correct signals to the agents when things are 
working both properly (incentives) or improperly (punishments).
 
However, closer to home is Peter Senge's "The 5th Discipline," which describes 
rules for organization along completely different lines. I remember reading 
this book in the early 90s while in my late 20s and falling in love with it. 
The lines of organization and rules of conduct described by Senge seemed like 
a dream come true to me. This was the kind of organization and the type of 
relationship that I always wanted to have with my boss, my employees and my 
peers. After having worked in a couple of very dysfunctional organizations, I 
was ready to go to work for an organization adopting the design described by 
Senge --following the major cornerstones of personal mastery, mental models, 
shared vision, team learning, and systems thinking.
 
Unfortunately, now --somewhat 10 years later-- the vision set forth by Senge 
in his book seems rather naive to me. It continues to be appealing, but my 
sense is that, in the world we live in there's little room for "learning 
organizations." With few exceptions, they tend to fail or pale by comparison 
with the numbers and success of businesses organized along the principal-agent 
perspective. I wonder if this perception is correct. If not, it would be helpful 
to see in this discussion success stories that are based upon principles of 
organization that assume the best about people and how they work together, 
efficiently and effectively, to achieve the most benefit for the collective 
organization.
 
Aldo Zagonel
 
Albuquerque, NM - USA
Posted by  "Zagonel-Santos, Aldo A" <aazagon at sandia.gov>
posting date  Fri, 14 Sep 2007 07:44:23 -0600