Organization from a systemic perspective

Abstract

Purpose – The paper's aim is to provide the reader with an example of the application of Beer's viable system model (VSM), to present the crucial steps of analyzing and improving a complex organization on the basis of Beer's approach, and thereby to demonstrate the value of viewing an organization cybernetically for managerial purposes. Design/methodology/approach – Based on Beer's VSM, as a first step, a diagnosis of the underlying organizational subsystems of the Swiss Youth Hostel Association has been undertaken on the basis of interviews and an analysis of relevant written sources. Based on this evaluation of the organization's viability, suggestions for improvement have been derived in a second step. Findings – Diagnosis shows that the VSM offers a useful, innovative, and effective reference framework for analyzing the organizational structure of an organization from a multidimensional, cybernetic perspective, on the strength of which managers can cope more efficiently and substantially with complexity. Practical implications – The paper offers an example of the process of applying Beer's practicable framework to managerial tasks, helping them comprehend their organizations from a cybernetic view as viable systems, thus enabling them to deal with internal and external complexity more effectively and efficiently. It accordingly shows how diagnosis based on this framework can reveal organizational strength and weaknesses on the one hand and act as a makeshift for redesigning system structure on the other hand. Originality/value – The paper contributes to the practical application-oriented understanding of Beer's VSM for managerial purposes by giving an example of how it applies to a complex organization, showing how a VSM-based diagnosis reframed the perspectives of managers in the organization under study.