Analysis of Lockheed Martin Feedback Loops

Solution Preview

Feedback Loops of Lockheed Martin Corporation

Feedback loops can be defined as the action of the organization through which the management sent the information related to the input system in the form of input data. A feedback of the organization is said to be negative feedback when the result of the input data produces a negative performance and the profit of the company declines. On the other hand, if the input data improve the operational and strategic performance, it is called a positive feedback. A positive feedback has capabilities to run the organization in a smooth manner (Patti, 2004).

Two types of Feedback loops that are available in Lockheed Martin Company are: Balancing loop and reinforcing loop.

The balancing loop can be defined as the process through which the organization can achieve the objectives in an appropriate manner (Patti, 2004). This is a definite situation of the organization in which the management follows the decision without any change. This can be understood with the help of an example: if the management takes decision to increase the staff by 10 percent, it is called a balancing loop. According to Galbraith (1999), desire state and current state are available in balancing loop. The main functioning area of balancing loop is goal-seeking behavior. The gap between these two states is created by the interaction, which acts as a motivational factor for performing the action (Galbraith, 1999).

Financial Performance of Lockheed Martin: The report of Datamonitor describe that within next 20 years, the company wants to build 4500 fighters and achieve nine-time higher level from the current level (Lockheed Martin, 2009). This is the balancing loop of the organization, because it is a definite situation, which the management wants to achieve within a specific time period. The management wants to balance the gap between the current state and desire state (Galbraith, 1999). This achievement will directly enhance financial level of the organization. The company is showing a continuous growth in net income and revenue.

Reasons for the Selection: The main purpose behind selection of this balancing feedback loop is to ...