Feedback Loops in the Tasty Baking Company

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INTRODUCTION
In the feedback loop, information related to actions taken by an organization is processed back through the input system in the form of input data ... regardless of their positive or negative nature. (Senge, 1994) Positive feedback speeds up organizational change in its current direction, however, if negative feedback is received, the resultant change of organizational direction (if leadership believes and reacts to the data) could cause stabilization of the organization. (Morgan, 1997) Two types of Feedback loops that exist in Tasty Baking Company (Tastykake) are the balancing and reinforcing loops.

THE BALANCING LOOP
The balancing loop represents situations where goals are to be achieved by specific actions. (Patti, 2004) For example, if a decision is made to enhance sales by ten percent, this is the creation of a balancing loop. Rino J Patti states in his book that two types of states exist in a balancing loop, the desired state and the current state. The interaction between these states produces a gap; this gap acts as the motivating factor for performing the action. (Patti, 2004) Balancing loops function when goal-seeking behavior is required.

Participant Feedback
The Tasty Baking Company incorporates a balancing feedback loop within its organization. Tastykake values improvement suggestions it receives from the participants from within their supply chain. This feedback influences the organization in driving improvements throughout this chain. They emphasize the importance of ensuring the benefits of this program extends throughout Tastykake's entire supply chain in order to reach the smallest scale distributors as well as its larger producers along with the company's individual employees. I selected this particular feedback loop because I believe it clearly demonstrates the controlling/balancing action on the part of Tastykake.

REINFORCING LOOP
Reinforcing feedback is positive, or amplifying in nature. According to Mr. Patti, the reinforcing feedback loop is a change in one part of a system that creates change in ...