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Industrial Services of America- System Feedback Loops

From System Feedback Loops, look at the feedback loops in Industrial Service Industries of America, Inc. and Identify one Balancing Loop and one Reinforcing Loop. Construct your diagnosis based on your previous response. Also, realize that within each of these feedback loops there are opportunities for learning and improvement. Now, present two cases in this paper. For each Feedback Loop (Balancing and Reinforcing), make a Case for the Learning Opportunities.
KEY to follow:
*Generate evidence for the grounds of your cases and describe each Feedback Loop that you identify in Industrial Services of America, Inc., and explain why you selected them. Explain the Loop, the cause and effect process within the Loop and include a Causal Loop Diagram and show the arrows and direction of affect (+ or -). Also, determine what the warrant is for your case.
*Briefly discuss the theory of organizational learning (the warrant and additional grounds.)
*Identify the opportunities for organizational learning in each Feedback Loop. Make a Case that these are learning opportunities. Logically show how the feedback process provides an opportunity for the organization to learn and improve its performance.

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Organizational Learning Theory
Focused on the "primacy of the whole," systems thinking attempts to add an additional dimension to typical problem solving methods. Traditional methods of problem solving revolve around the scientific methodâ?"breaking a complex whole down to constituent pieces in order to understand the linear progression of the process. This two dimensional method builds an overly simplistic model of most reality. Instead, a three-dimensional model should be builtâ?"using circular causalityâ?""where a variable is both the cause and effect of another [variable]," (Larsen, McInerney, Nyquist, Santos, & Silsbee, 1996). The notion of assessing an organization or system as a whole is daunting, but the methodic nature of the scientific method need not be abandoned completely. Only in realizing the added dimension of circular causality is required to more accurately conceptualize a realistic organization.
Take a typical two-dimensional representation of a purchasing and supply management process. Visually depicted, it might look something like this:

With suppliers and production entities providing input to the purchasing authority, the purchasing manager reaches a decision, and the transaction is completed. This doesn't capture the reality of the system, however.

Feedback Loops
The reality of such a system above is intuitively more complicated than the linear depiction shows. In the pursuit of greater understanding of such systems, people are forced to fragment the systemâ?"to take snapshots of events to study, (Larsen, McInerney, Nyquist, Santos, & Silsbee, 1996). Like a snapshot, each event is only accurate for a moment in time, it is an imperfect, two dimensional model of reality. With the addition of a third dimensionâ?"in this case, timeâ?"movies are a far better representation of reality. Thus systems thinking attempts to add this third dimension to the above system:

This depiction represents a reinforcing-type feedback loop in the purchasing the supply system. Production requirements add information to Supplier Availability. This output adds information to make a purchasing decision, which ultimately affects the production requirementsâ?"which again affect the output of the supplier. There are two types of these feedback loops: a balancing loop and a ...

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