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Complexity and cooperation in – and between organisations. What is a c omplex organisation ?. Any organisation where single actors ( individuals , groups etc.) cannot have a full understanding of what the system does .
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What is a complexorganisation? • Anyorganisationwhere single actors (individuals, groups etc.) cannot have a full understandingofwhatthe system does. • In complexorganisations, there is no ‘birdseyeview’ – no total overview. • Thus, all workwill be locally adaptive work– «localrationality». • E.g. all peopleareguided by localcircumstances
Cooperation withinorganisations • Commonassumption: Work is done by divisionoflabour • E.g. different functions -> different jobs • But… in complexorganisations.. • Workperformed by one function is oftencoupled - E.g. it affectswork done in other parts oftheorgansation
Cooperation withinorganisations (1): Leader decisions S2 Ship B Ship A Ship C Ship D Ship E
Cooperation withinorganisations (1): Leader decisions ‘Green shipping’ S2 Ship B Ship A Ship C Ship D Ship E
Cooperation withinorganisations (1): Leader decisions ‘Green shipping’ Indirectconsequence S2 Ship B Ship A Ship C Ship D Ship E
Cooperation withinorganisations (1): Leader decisions ‘Green shipping’ Indirectconsequence S2 Changes jobs & goal setting Ship B Ship A Ship C Ship D Ship E
Cooperation withinorganisations (1): Leader decisions ‘Green shipping’ Indirectconsequence S2 Changes jobs & goal setting Ship B Ship A Ship C Ship D Ship E
Cooperation withinorganisations (1): Leader decisions ‘Green shipping’ Indirectconsequence S2 Changes jobs & goal setting Ship B Ship A Ship C Ship D Ship E Alteredoutcomeofwork
Cooperation withinorganisations (1): Leader decisions • Decisions & actions in complexorganisationscan(will) have unintendedconsequences • Due to thesheercomplexity and couplingbetweenworkprocesses • Universallycorrectdecisionscanonly be taken from a global ‘bird’seye-perspective’ - Whichunfortunately is impossible…
Cooperation withinorganisations (2): Procedures and safety S2 Ship B Ship A Ship C Ship D Ship E
Cooperation withinorganisations (2): Procedures and safety S2 Ship B Ship A Ship C Ship D SOPs Ship E
Cooperation withinorganisations (2): Procedures and safety S2 Ship B Ship A Ship C Ship D Implement in ships SOPs Ship E
Cooperation withinorganisations (2): Procedures and safety S2 SOP is designed by other part oforganisation -> withoutlocalknowledgeofcurrentpracticalchallenges Ship B Ship A Ship C Ship D Implement in ships SOPs Ship E
Cooperation withinorganisations (2): Procedures and safety SOP might not fitworksituations -> alteredwork S2 SOP is designed by other part oforganisation -> withoutlocalknowledgeofcurrentpracticalchallenges Ship B Ship A Ship C Ship D Implement in ships SOPs Ship E
Cooperation betweenorganisations: Case of shipping contracts • Cooperation betweenorganisations is (mainly) governed by: • Contractualagreements (e.g. shipping contracts) • Formal meetingsbetween land-basedpersonnel • Cooperation in thesharp end (aboardships and offshore installations)
Cooperation betweenorganisations (1): shipping contracts as locally adaptive butgloballymaladaptive • Contractcomeoutof a processwherenegotiatorsattempt to maximizetheirown (organisation’s) gain. • Localoptimization –> but not global optimization • Often, shipping contracts is writtenwith a clausethatstipulatesthatthe cargo ownershallpay for all fuel oil during theshipment.
Cooperation betweenorganisations (2): shipping contracts as locally adaptive butgloballymaladaptive • Thus, the shipping company have nothing to gain from reducingfuelconsumption - there is noincentives for fuelconsumptions. • Such a contract is globallymaladaptivewhen it is a goal to reduceemissionsto sea & air. • The contractcanalso have indirecteffects in the ‘sharp end’.
Cooperation betweenorganisations: Case of shipping contracts S2 Ship A Ship B Offshore installations A B C Ship D Ship C Ship E
Cooperation betweenorganisations: Case of shipping contracts Contracts S2 Ship A Ship B Offshore installations A B C Ship D Ship C Ship E
Cooperation betweenorganisations: Case of shipping contracts Contracts Defines areas ofcooperation, day rates, responsibilities. S2 Ship A Ship B Offshore installations A B C Ship D Ship C Ship E
Cooperation betweenorganisations: Case of shipping contracts Contracts Defines areas ofcooperation, day rates, responsibilities. S2 Ship A Ship B Offshore installations A B C Ship D Ship C Ship E
Cooperation betweenorganisations: Case of shipping contracts Contracts Defines areas ofcooperation, day rates, responsibilities. S2 Ship A Ship B Offshore installations A B C Ship D Ship C Ship E
Cooperation and complexity • 2 ex. Ofcooperationwithinorgs. • 1 ex ofcooperationbetweenorgs. • All had inherent challenges. • All ofthemhad a commonfeature • Complexity……
Complexity • Most organisationstoday is complex, hence: • Single actorscannot be fully in commandoftheoutcomesoftheirwork. • The organisation’sperformanceenvelopecannot be determinedexactly.
Complexity – the end…. • I.e. Complexorganisationsdoes not actaccording to theassumptionsofrationality in traditionaleconomictheory. • Thereis a need to identifyhowcomplexorganisationswork and fail. • Or most importantly, wemustreducecomplexity…….