Organizations as control models

[From Bill Powers (930826.0700 MDT)]

Michael Fehling, Rick Marken, Oded Maler (930825) --

If the ripples from all this culture shock have died down enough,
there are some interesting points up for discussion.

Somehow the back-and-forth has jogged loose a few brain cells,
which came up with a thought. I suddenly saw an analogy between
the way members of an organization think about the organization
and the way we modelers in PCT think about certain block diagrams
and the equations that describe them. The block diagrams are
meant to remind us of a shared (more or less) perception of how a
certain kind of organization works, a living control system. They
are a model of something. What makes the model work is not, of
course, the equations or the block diagrams, but the physical
components they represent.

In the case of a social organization, the components are the
physical things like buildings, machinery, and articles of
incorporation, which by themselves have no behavioral properties,
and the individual human beings who occupy the buildings, operate
the machinery, and interpret the articles of incorporation (etc).
These individuals have a great many discussions with each other,
one of the products of these discussions being a _model of the
organization_. This model takes many forms. One of them is the
organizational chart, showing who is responsible for what, who
takes orders from and gives orders to whom. Others are a business
plan, a marketing plan, a competitive plan, and other stuff (I'm
pretty ignorant about business so I hope those who know more are
translating appropriately). All the people in the organization
try to behave in such a way as to fit this model, as they
individually understand it and their place in it. There are
problems with that shared understanding, but they aren't my main
point here (I think).

All these models must contain models of the world with which the
organization will interact. This includes a model of the people
-- workers, managers, and customers -- that populate this world.
In fact, the economic aspects of business plans depend pretty
heavily on the model of an individual human being; for example,
are people "maximizers," so they will always respond to suitable
incentives by increasing consumption (or production), or
"controllers," so they are individually aiming for a specific
level of consumption? But that still isn't my main point.

One main point is in the question, "How do people design an
organization if they want to model it as a control system?" The
most immediate answer is, of course, that they have to understand
control systems. As very few people understand control systems,
particularly in the world of commerce, it is more likely that
they will design the organization as a traditional cause-effect,
input-output, stimulus-response system. Of course they have
objectives, goals, and so forth, but when it comes to setting up
a way of reaching them, they fall back on the traditional
understanding of behavior. This understanding says that you must
analyze the external world, construct a plan of action based on
predictions of the effects it will have in the world, and execute
it.

Unfortunately, this understanding doesn't match the way the world
works, or the way people work. The cause-effect model assumes
that the properties of the world will not change, and that there
will be no unanticipated disturbances to throw the projected
future off course. The more detailed the analysis and the more
elaborate and contingency-ridden the plan, the less likely it is
to apply for more than a short time. Business projections and
plans are heavily statistical; by their very nature, therefore,
they can't handle specific events such as a competitor
unexpectedly marketing a more appealing or useful widget than
yours, cheaper.

An organization truly designed as a control system would rely
very little on plans of action, particularly long-range plans of
action. Instead, it would focus on developing the means for
controlling certain variables in present time. This means
learning how to act directly on those variables when they deviate
from the condition one wants to perceive. If disturbances are
reliably predictable -- for example, as a heating-oil supplier
can predict the alternation of summer and winter -- some
proactive actions can be taken. But it's more important to be
able to handle current fluctuations in the controlled variables
without having to know what is causing them. So planning becomes
secondary to understanding the properties of the local world and
setting up control loops accordingly. The important thing is not
to _plan_ actions, but to know how to _vary_ them as required.

I'll let that thought lie there to let others get a word in
edgewise.

What seems to be my main point is that an organization is a model
in the minds of at least some of the people in the organization.
To implement this model, many individuals agree to take on
certain control tasks. Once those tasks are defined (by each
individual), they boil down to keeping certain perceptual
variables in specified reference conditions. The reference
conditions are set, and varied, in part by others higher in the
block diagram of the organizational model, and in part by the
individual's understanding of the requirements of the
organization. They are also highly influenced by other goals that
the individual has, many of which have nothing to do with the
organizational model. When the organizational model is translated
into a working implementation, we have nothing but a set of
individual control systems operating independently of each other,
each according to a private understanding of the situation, and
interacting with each other and the outside world in the manner
in which independent control systems interact.

Well, that didn't come out as crisp as the idea with which I
awoke this morning, but such ideas seldom turn out quite as
wonderful as they seem to the half-awake mind. What do you-all
think?

···

--------------------------------------------------------------
Best to all,

Bill P.

FROM CHUCK TUCKER 930826

Again I am in a situation where I have just read the posts on the
screen and not studied them as carefully as I would like but I seems
to me that the best way to find out if an organization acts likes a
control system is to apply THE TEST and see the results. Take any
organization and find out what the documents of the organization state
that it is controlling for (see the Mission Statement of your local
school or college or university) and devise a way to disturb it and
see if it counteracts the disturbance. If it does, then it is a control
system (or at least as far as you can determine acts like your model
of one states it should act). Let me tell you that the University of
South Carolina in NOT a control system even though it has all the
"features" of one.

EXCUSE "PERSONAL" NOTE

I would like to go to the CSG conference in Europe in June; will the
person who is organizing it put me on the list and send me information
about it. Thanks

···

************************************************************
      * CHARLES W. TUCKER (CHUCK) *
      * DEPARTMENT OF SOCIOLOGY *
      * UNIVERSITY OF SOUTH CAROLINA *
      * COLUMBIA SC 29208 *
      * O (803) 777-3123 OR 777-6730 FAX (803) 777-5251 *
      * H (803) 254-0136 OR 237-9210 *
      * BITNET: N050024 AT UNIVSCVM (0=ZERO) *
      * INTERNET: N050024 AT UNIVSCVM.CSD.SCAROLINA.EDU (0=ZERO) *
      ************************************************************
Regards,
         Chuck

From Tom Bourbon [930826.0931]

[From Bill Powers (930826.0700 MDT)]

Michael Fehling, Rick Marken, Oded Maler (930825) --

If the ripples from all this culture shock have died down enough,
there are some interesting points up for discussion.

I am taking the liberty of adding myself to your list of addressees,
inasmuch as I am partly to blame for recent events on the net. The
explosion of culture shock began with the post in which I identified, and
invited discussion about, possible differences between PCT models of
interactive control systems and some ideas Michael Fehling expressed about
control in and by organizations.

Somehow the back-and-forth has jogged loose a few brain cells,
which came up with a thought. I suddenly saw an analogy between
the way members of an organization think about the organization
and the way we modelers in PCT think about certain block diagrams
and the equations that describe them. The block diagrams are
meant to remind us of a shared (more or less) perception of how a
certain kind of organization works, a living control system. They
are a model of something. What makes the model work is not, of
course, the equations or the block diagrams, but the physical
components they represent.

..

An organization truly designed as a control system would rely
very little on plans of action, particularly long-range plans of
action. Instead, it would focus on developing the means for
controlling certain variables in present time. This means
learning how to act directly on those variables when they deviate
from the condition one wants to perceive. If disturbances are
reliably predictable -- for example, as a heating-oil supplier
can predict the alternation of summer and winter -- some
proactive actions can be taken. But it's more important to be
able to handle current fluctuations in the controlled variables
without having to know what is causing them. So planning becomes
secondary to understanding the properties of the local world and
setting up control loops accordingly. The important thing is not
to _plan_ actions, but to know how to _vary_ them as required.

I'll let that thought lie there to let others get a word in
edgewise.

What seems to be my main point is that an organization is a model
in the minds of at least some of the people in the organization.
To implement this model, many individuals agree to take on
certain control tasks. Once those tasks are defined (by each
individual), they boil down to keeping certain perceptual
variables in specified reference conditions. The reference
conditions are set, and varied, in part by others higher in the
block diagram of the organizational model, and in part by the
individual's understanding of the requirements of the
organization. They are also highly influenced by other goals that
the individual has, many of which have nothing to do with the
organizational model. When the organizational model is translated
into a working implementation, we have nothing but a set of
individual control systems operating independently of each other,
each according to a private understanding of the situation, and
interacting with each other and the outside world in the manner
in which independent control systems interact.

Well, that didn't come out as crisp as the idea with which I
awoke this morning, but such ideas seldom turn out quite as
wonderful as they seem to the half-awake mind. What do you-all
think?

I can't speak for all of us-all, but I-all think it is right on the mark.
You expressed more eloquently (in spite of the sleeping-waking distortions
you exprienced) and in much more detail what was behind my post to Michael
Fehling. Organizations are aggregates of individuals, each of whom acts,
always, as a complete control system. The biggest difference I see is in
that important point you say you were groping to express: I called "the
organization" an "idea" or "reference signal" in each of the individuals;
I believe you describe it as a "model" each person adopts and uses as a
source of reference perceptions concerning which perceptions she or he ought
to control. That sounds like a more effective way of describing where
"the organization" fits into the picture. I can imagine people who are
accustomed to thinking of goals and organizations in more traditional,
non-PCT, terms being more open to your description of organization-as-model,
than they have been to the other presentations we have tried. It will be
interesting to see what others of us-all on the net have to say about that.

···

++++++++++++++++++++
Reply to Michael Fehling's post:

Date: Wed, 25 Aug 1993 16:43:59 -0700
From: Michael Fehling <fehling@LIS.STANFORD.EDU>
Subject: Politically Correct PCT, Apologies

In re Rick Marken 930825 (plus some reactions to Oded Maler 930824) --

Michael, I want to comment on just one item in your post.
..

On the other hand, in thinking throught Oded's question, issues come to
mind suggesting that our model may be inconsistent with PCT in that we
distinguish operations, chosen and carried out as a result of these
management decisions, and study how these actions are carried out and how
their effects in the environment create changes in (a) or (b) above, leading
to changes in operations, etc. From the organization's viewpoint, control
can only be an attempt to bring perceptions (e.g., situational awareness)
into correspondence with reference perceptions (e.g., desired situations).
But, our model goes beyond this subjective perspective by seeking to clarify
how this organizational process bears upon changes in the external
environment. To the extent that PCT won't allow the interaction between a
system and its environment to be investigated then it's one of those
"radically subjective" theories that I've already explored and rejected.
(I talked about this in a previous post to Bill Powers.)

It seems to me that you are saying your model seeks to clarify how the
actions of a control system affect the environment, but that PCT does not,
or might not, even "allow the interaction between a system and its
environment to be investigated." Is that a fair interpretation of what you
said? If it is not, please correct my false impression.

On the other hand, if that is what you are saying, then I believe you have a
mistaken impression about PCT. Rick Marken (930825.2200) gave the following
description of an PCT model for an individual:

I think a diagram of one of your model individuals (including environmental
connections, of course) would help clarify things quite a bit. Here's
how we would diagram a simple control loop for a model individual:

         r
         >
         v
     ---|C|---
     ^ |
     p e
     > v
     _ _
    >f> >h> System
______________________
     > > Environment
     q<--g---o
     ^
     >
     d

Everything above the line is system (organism); everything below
the line is external environment. q is the controlled environmental
variable (like the position of your finger); its value is determined
by environmental disturbances (d) like gravity, as well as system
outputs (o) like the forces exerted by tensing muscles. f is
a perceptual function (in the organism) that turns q into a neural
signal, p. So p is perceived finger position. p is continuously
compared (in the comparator, C) to another neural signal, r. The
comparison is a subtraction and it results in another neural signal
called the "error",e. The error signal is VERY small; it is amplified
considerably by the output function,h, which, in this case, transforms
a small neural signal, e, into a BIG effect on the environment, o (the
force exerted by the muscle). The muscle forces influence finger position
according to the feedback function, g. This closes the loop. When
all the parameters of the loop are set up right, the system will
"force" p to stay equal to r (and q [finger position] -- the only
variable that is actually visible to an external observer -- will
stay equal to 1/f(r)).

The system in Rick's diagram and description includes a modeled organism
*and* a modeled environment. It is not possible to produce a working model
of control that excludes either side of that relationship. Control is a
feature of the entire loop: the reference that determines the state of q is
inside the modeled organism, the disturbances that determine which actions
will be needed, given the specific reference in effect at that moment, come
from the environment. Reduced to its simplest form, the PCT model
comprises two equations, or two steps in a computer program:

where p = f(q), then we have
the system: o = h(e) = h(r - p); and
the environment: q = g(o) + d.

Every working model of perceptual control includes those two equations or
steps. There are no exceptions. If someone has given you the impression
"that PCT won't allow the interaction between a system and its environment
to be investigated" then that person was wrong. (I do not know a more
polite way of expressing that fact.) Consequently, that mistaken
assumption, taken alone, ought not be a reason for any person to conclude
that PCT is "one of those "radically subjective" theories that I've already
explored and rejected."

I remain interested in learning your thoughts about the points I raised in
my first reply to you.

Until later,

Tom Bourbon

From Tom Bourbon [930826.1329]

FROM CHUCK TUCKER 930826

Again I am in a situation where I have just read the posts on the
screen and not studied them as carefully as I would like but I seems
to me that the best way to find out if an organization acts likes a
control system is to apply THE TEST and see the results. Take any
organization and find out what the documents of the organization state
that it is controlling for (see the Mission Statement of your local
school or college or university) and devise a way to disturb it and
see if it counteracts the disturbance. If it does, then it is a control
system (or at least as far as you can determine acts like your model
of one states it should act).

Chuck, at the risk of having my intentions misinterpreted, I will ask the
questions this time. Rick can take a break if he wants to do that. I would
like to follow your suggestion. I have a university close at hand. What
clues do I look for that will let me know I have found an appropriate place
to perform the test on "it," the organization? Where do I position myself,
spatially, so that I will be detected by the organization's sensors? Where
should I look to see if the organization's output functions are at work and
if they are correcting for my actions? That kind of correction would be
part of the confirmation that I have identified a controlled variable and
that I indeed disturbed it.

Please, Chuck (and anyone else who is interested), do not think I am being
crass, callous, petty or cute. I think of control systems and of the PCT
model in very specific terms; I think of working models. I have a difficult
time imagining how some of the things people say about control systems and
about the PCT model could be turned into actual administrations of the test,
or how they could be turned into working models. I am confessing a genuine
inability on my own part, not necessarily a failure or inadequacy in the
person to whom I address my questions. When I ask if someone could try to
turn their statements and suggestions about control systems and PCT models
into diagrams of a possible model, or into pseudo-program steps, I am
serious; I am asking for them to help me understand what they are saying.
(For the record, I have *always* assumed that is what Rick is doing, also.)

That said, how should I start to administer the test and how will I know
when it, the university, is correcting for my disturbance?

Perhaps you will think I am less of a jerk if I say that, like you, I do not
think a university is a control system, but how would I use "the test" to
test that suspicion?

Until later,

  Tom Bourbon

[From: Bruce Nevin (Thu 930826 16:27:03 EDT)]

( Tom Bourbon [930826.1329] )

Tom, think of a policy or rule that might be violated. Then think of a
person whose job includes oversight of whether or not that rule is
violated. The analogy is that people having roles in the organization
house the perceptual organs of the organization (their own perceptual
inputs as people, plus control systems controlling a perception of
whether the responsibilities of their roles are being met).

I think one would find many discrepancies between the stated aims of the
organization and the actual aims as implemented by persons executing
roles in the organization. Some of these would be inattention or low
gain, some would be conflict with other aims as persons as Bill said.
Gee, maybe our neurons really do have other aims that interfere with
their functions in our ECSs. Let's see ... fatigue, need for
nourishment, career advancement nope rule that out I guess, unless that's
under reorganization ... hmm

The real rub is that people do not interconnect by interchanges of
reference and error signals over which they have no control and to which
they are compelled to respond. But perhaps the roles that people occupy
provide a better match. Now what am I talking myself into?

Test it out.

    Bruce
    bn@bbn.com