Evolutionary Management

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The term evolutionary management is an organizational theory .

The key message here is that no clear goals and structures should be specified by management; rather, it is advisable to create suitable framework conditions for the “ self-organization ” of a company. These framework conditions are intended to represent the necessary prerequisites to enable the organization and employees to develop independently.

The reason for the new approach of evolutionary management is that, due to their complexity, management problems cannot be mastered with a rational organizational structure.

The two most important approaches of "evolutionary management" are

St. Gallen approach

Basic idea

The central starting point of the St. Gallen approach is the concept of "spontaneous order" by Friedrich August von Hayek . Such a “spontaneous order” consists of rules of conduct that have developed over time. These behaviors were not specified by any rules and regulations. The resulting regulations are more efficient than those that have been drawn up. Hayek also sees groups as carriers of evolutionary processes. With their knowledge, which is the most important part of such evolutionary processes, groups or social systems have the ability to adapt to changing environmental conditions and to organize themselves. In this way they develop their behavior and new rules arise from the experiences that are gained within groups through, for example, cooperation. The success of these evolutionary processes lies in the complexity of their creation, which is why they should by no means be restricted in their complexity. Only through this complexity can new problem-solving concepts be developed again and again.

Importance to management

The task of management is on the one hand to maintain the complexity that is necessary for this self-organization and interaction to function. On the other hand, to create the appropriate framework for such self-organization. In the event of problems, management carries out hypothetical problem solutions based on a problem analysis. Management learns from the mistakes that arise and so management continues to develop along with its alternative courses of action. The St. Gallen approach hardly provides any substantive proposals for solutions to actual organizational problems except decentralization, little detail in organizational regulations and the use of an organizational culture as a coordination instrument. However, the degree of design remains open and must first be found out through such trial-and-error processes.

criticism

In principle, complex, comprehensive organizational systems, such as the cost accounting system, planning and information systems, manufacturing technologies, etc., cannot be organized using such an approach. It is hardly conceivable that an organization can trust that regulations, alternative courses of action and proposed solutions will result from spontaneous interaction. Rather, organizational regulations and clear structures are required so that flexible, constantly learning action is made possible. A general ability of the organization to act can only be ensured if responsibilities and persons responsible for tasks are formally regulated by an organizational structure. This is the only way to deal with complexity and achieve greater adaptability of the organization to changing environmental conditions. All in all, the implementation of the St. Gallen approach is only conceivable in small organizational units such as departments or work groups.

Munich approach

Basic idea

The Munich approach is based on so-called interface management, which sees the cause of the complexity and various management problems of a company in the strict "departmental thinking". This departmental thinking means that tasks and solution-finding processes are carried out in a delimited manner. There is a lack of adequate communication between the departments and this leads to communication problems between the individual departments, which makes it impossible to work out a joint problem solution. Results are individual, partial ideas and solutions that by no means have to be suitable for the entire organization. Like the St. Gallen approach, the Munich approach demands that complexity be allowed and, above all, that affected employees be included in decision-making situations. The needs and interests of the organization members should be considered and satisfied so that progress can be made for the organization. This is to be realized through the key concept of the Munich approach, the “communicative action”. This “communicative action” aims to ensure that formal rules are not simply followed, but rather that everyone finds their task and solves it independently through coordination processes between the individual members of the organization. The prerequisite for this is adequate communication with one another.

Importance to management

The task of the management is to create suitable framework conditions to enable "communicative action". Through this and through mutual interaction, the self-organization process is initiated. The complexity of the solution-finding processes should be maintained and the solutions themselves should be steered in a direction that conforms to the company's goals. This approach is suitable for non-structured problems, such as a design problem in operational processes. Circles, seminars and the like provide communication tools that help to deal with the complexity of action through communication and not through planned rationality. The aim is to motivate the individual employee to act that has not been prescribed by binding norms and to enable them to find new solutions.

criticism

In reality / in practice, this concept of “communicative action” can hardly be implemented, as some problems are associated with it. The "communicative action" can easily lead to endless and time-consuming discussions, in which it would be more sensible and expedient to approach problems with known solution structures. In principle, action cannot be based on pure spontaneity, where there is no additional strategic component. In practice, a formal organization is an instrument for ensuring efficiency and enables internal communication. It also provides a certain mechanism to relieve communication. Despite the involvement of those affected in decision-making situations, those affected still act according to the will or the strategy of the company management, as they are only taken into account when defining and dealing with the problem after the company management has clarified the fundamental questions and goals and those concerned have addressed themselves must adhere to this given framework.

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