Edinburgh Napier University

  Abstract communications systems theory may be a valuable tool for the description, prediction and control of organizations. An organization is conceptualized as an abstract system of inter-human communications; humans are the main organization 'communication units' which produce and receive communications (but humans are not part of the abstract system). Organization systems tend to grow in complexity, enabling a more complete modelling of their environment and a greater range of adaptive responses. Growth of organization systems is facilitated by appropriate structures, which can be seen as constraints on organisational communications. Organizations are prone to failure (when a system's communications do not continue) due to 'faulty communications' and 'errors' in communication. We analyse faults, errors and failures of organisations in systems theory context. Faulty communications do not fit the lexicon of the system's language and typically fail to lead to continuation of communications. For example, a sentence or text which makes no sense in organizational terms. Errors are communications which fit the system's language but which are in conflict with the environment, so that the system cannot respond adaptively to the stresses placed on it by the environment. For example, an organization may fail when a product is made but cannot be sold. Organizational failure may be made less likely by increasing the complexity of the organization through evolving appropriate internal structures. These could include 'management' subsystems (eg. accounts, sales, personnel) each with functionally specialized languages having precise meanings. Management subsystems may perform identity-checking of communications to minimize the damage from faulty communications, and self-modelling of the organization and its environment to allow early detection and remediation of communication errors. We discuss how structures can reduce the effects of faults, errors and failures, if they increase the environmental fitness of the organisation, and how they increase their negative effects, if they fail to increase the environmental fitness of the organisation.