Improving Organizational Design and Diagnosis by Supporting Viable System Model Application with Structural Complexity Management

Abstract

This paper explores the applicability of Structural Complexity Management (StCM) on organizational design and diagnosis. As basic structural model for efficient management of organizations the Viable System Model (VSM) is used. The VSM represents a structural model based on Management Cybernetics (MC) theory that describes the structure of all viable systems. Companies operating in dynamic environments strive for viability, therefore incorporation of VSM into their structure is essential. However, VSM requires more complex communication and control structures that are not so intuitive at first sight, and in addition, a methodology that supports the identification and analysis of these structures is missing. This paper addresses this issue by suggesting and adapting StCM approach for this purpose. StCM is a powerful and proven methodology for analysing structures and making them more transparent and manageable, hence it can support the design and diagnosis of organizational structures based on VSM.