Systems Feedback Loops for Deckers Outdoor Corporation - Research Paper Example

Systems Feedback loops for Deckers Outdoor Corporation Introduction The application of feedback loops is significant in monitoring an organization’s overall performance. Majority of industries in the US has implemented such control systems to aid in the enhancement of their performance. An organization’s output at an instance is imperative as it helps in the determination of changes that would be basic in the performance augmentation. In an endeavor to design a feedback loop, engineers must establish how current loops operate, therefore, noting areas that may require some alterations for performance augmentation. Therefore, this paper presents two cases of feedback loops utilized at Deckers Outdoor Corporation (DOC) (Larsen, et al. 1996). One of them is the balancing loop, and the other one is the reinforcing loop. Additionally, this script will discuss the theory of organizational learning, together with the identification of opportunities for organizational learning presented in each of these feedback loops. The reinforcing loops The two categories of feedback loops utilized at DOC are the balancing loops together with the reinforcing loops. Sources consider such loops as significant constituents of the thinking of Deckers outdoor corporation. Concisely, systems thinking refer to ways in which different elements present in an organization interact with each other, therefore, culminating to their growth, or fall. Literatures describe systems thinking as people, different structures, as well as inherent processes essential for the overall prosperity of an organization. The two of the roles identified in DOC execute various, divergent functions. For instance, balancing loops are endowed with the conscientiousness of enhancing an organization’s stability. Alternatively, a reinforcing loop performs the role of controlling the pace of growth of an organization (Burgoyne, Araujo & Easterby-Smith, 2000). At DOC, a suitable example of a reinforcing loop is notable after an appraisal of an employee’s performance and the support they obtain from the management. It is notable that employees who have demonstrated excellence in their performances tend to acquire incalculable support from the management. The management directs such individuals by the provision of bonuses, additional training for skills development, as well as allocation of better assignments. As a result, performance of such individuals continues to improve, and the company notes an addition of its profits. This is among the reasons for the sustained expansion of DOC to diverse locales. In a different scenario, the workforces’ performance may progressively slow down. Simultaneously, the management is unable to offer the much needed support thus the decline. In such a case, the reinforcement loop applies. In the largest percentage of companies, the reinforcing loop cannot drive an organization towards attaining its stability, therefore, the necessity of looking into a different category known as the balancing loops (Burgoyne, Araujo & Easterby-Smith, 2000). The balancing loops As opposed to reinforcing loops that focus on the growth or decline of an organization, this loop aims at attaining a stated steady state, or an objective. An apt action is unavoidable when trying to move from a current state to the designated desired state. The DOC has enacted various strategies for purposes of devising apt techniques for enhancing its growth to other geographical locations across the globe. Therefore, it resorts into incorporating some balancing loops to aid in achieving its stated goals. At DOC, instances of this class of loops are numerous (Burgoyne, Araujo & Easterby-Smith, 2000). This is because DOC has many plans for bringing new products in the market, therefore, creating a balancing loop. The interaction occurring between the two states results into formation of the gap. Literature shows that, the difference that results from the two states is imperative in development of motivation that calls for an instantaneous action. The size of the gap determines both the intensity and motivation for action. Below is an appropriate example of causal loop diagrams. Causal loop diagrams (Burgoyne, Araujo & Easterby-Smith, 2000) In the first diagram, an increase in the number of mistakes committed by an employee will also increase the level of anxiety at work. Alternatively, the rise in relaxation exercises for workers reduces their stress level. The theory of organizational learning Senge describes a learning organization as a faction of people who have decided to work together with the sole purpose of enhancing their capabilities. As the leader and the person behind the foundation of the “Society of Organizational Learning” (SoL), he encourages the decentralization of leadership responsibilities in an organization. He tends to find it useful as it empowers every person in an organization (Larsen, et al. 1996). As a result, the productivity of each person increases because everyone is accountable for his/her actions. The alignment of the people’s goals as they expansively develop new thinking patterns is basic in attaining success for the organization. According to Senge, it is imperative that an organization can learn, as this can save it from collapse in case of any inherent changes. In an event of such an occurrence, the flexibility and adaptive level of such an organization becomes the centre of focus in saving it from collapsing. It is significance that organizations devise suitable strategies for enhancing their capacity to handle uncertainties that may occur. Systems thinking In describing, the theory of organizational learning, Senge identifies five principles that are crucial in enhancing an organization’s capacity to adapt to change. Senge stresses on the usefulness of systems thinking by regarding it as the cornerstone of his approach (Bellinger, 2004). Systems’ thinking is a theory that focuses on integrating the different entities involved in accomplishing the goals and objectives of an organization. In avoiding failure in attaining success in organizations, Senge discourages a management system that focuses entirely on the effectiveness of an individual instead of ensuring that all components of an organization fit together. The dynamic nature of an organization is not addressed in such a case (Smith, 2001). As argued and illustrated by Senge, it would be necessary to shift attention to focusing on how the different components of an organization interact, therefore, identifying areas that may demand an instantaneous attention. Therefore, both the reinforcing and balancing loops discussed above are significant in systems thinking. This is because of their value in determining the economic situation of an organization. However, some individuals find it challenging to see such systems, therefore, disorienting the long-term view of an organization. Personal mastery and mental models In addition to systems thinking, personal mastery is among the principle required in organizations willing to learn. This principle indicates that, an organization will only learn after those individuals working in it are exposed to learning. However, this fails to warrant the learning of an organization. Senge defines personal mastery as the ability to continue clarifying ones vision, energies, along with patience for the common goal of the organization’s success. Therefore, for an eventual success of organizations, the management ought to aim at enhancing the individual’s personal mastery. Moreover, development of mental models is basic in organizational learning theory. Senge defines mental models as images and pictures that are of influence on how people understand the forces of nature. Such models have much influence on individuals’ actions in an organization (Smith, 2001). Literature has shown that the development of new skills and openness is basic when applying mental models. Shared vision and team building Building a shared vision is also an ingredient of organizational learning. In an event an organization has set a genuine vision, the workforce of such an organization becomes encouraged to involve themselves in activities that would enhance its growth. Former researches and evidence reveals the capability of the shared vision to enhance experimentation, therefore, the innovativeness. Unearthing the shared visions held by different people in the organization augments their willingness to work diligently towards achieving its vision (Smith, 2001). The last principle of organizational learning discussed by Senge is the team learning. This principle entails boosting a team’s capacity to learn. It discourages the assumptions that the majority of individuals posses, and encourages them to enter into genuine thinking as a whole. Identification of the learning opportunities The other part of this assignment aims at identifying the learning opportunities in the two feedback loops discussed earlier. Reinforcing loops provide an opportunity to learn as the underperforming individuals can see the benefits that their counterparts can access, therefore, developing the spirit to copy them (Smith, 2001). Consequently, such individuals will endeavor to imitate their friends thus developing a shared vision. This loop contributes to the organization’s learning as it recommends for training of the employees, which enhances their aptitude to perform, and this positively affects the organization’s performance and growth. Additionally, the balancing feedback loop enhances the organization’s learning in various ways. For instance, once an organization enacts its vision, such a loop calls for the determination of a suitable action to propel it to attainment of such a vision. In an endeavor to accomplish the above, the concerned authority highlights the need of developing personal mastery, along with the other principles of organizational learning. Therefore, the resultant effect of such an undertaking is an enhanced organization’s performance and growth (Larsen, et al. 1996). Conclusion It is clear that feedback loops are critical in the eventual growth and performance of industrial services industries of America. One of the industries that stalwartly utilize such feedback loops is Deckers Outdoor Corporation. The reinforcing loop is significant as it aids in enhancing others desire, in activities whose outcome is an augmentation in performance. For instance, the idea of rewarding the most competitive individuals in an organization develops their counterparts’ desire to participate effectively. Alternatively, the effectiveness of a balancing feedback loop has seen the growth of a large faction of industries situated at diverse locations around the globe. The perception of organizational learning is significant in performance enhancement of organizations. A number of principles are necessary in understanding this theory. They include the systems thinking, which spotlights on the overall components working in an organization, mental models, development of team learning, shared visions, as well as team building. References Bellinger, G. (2004). Introduction to systems thinking. Retrieved on March 21, 2012 from: http://www.systems-thinking.org/intst/int.htm. Burgoyne, J., Araujo, L., & Easterby-Smith, M. (2000). Organizational learning and the learning organization: developments in theory and practice. Thousand Oaks, CA: Sage publishers. Larsen, K. et al. (1996). Learning Organizations (Part VI: Systems Thinking). Retrieved on March 21, 2012 from: http://leeds-faculty.colorado.edu/larsenk/learnorg/index.html Retrieved on 8/24/11. Smith, M. (2001). Peter Senge and the learning organization. Retrieved on March 21, 2012 from: http://www.infed.org/thinkers/senge.htm Read More