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System objectives and budgetary control
Author(s) -
Amey Lloyd R.
Publication year - 1980
Publication title -
behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 0005-7940
DOI - 10.1002/bs.3830250205
Subject(s) - sociotechnical system , computer science , state (computer science) , control (management) , complex adaptive system , stability (learning theory) , systems theory , mathematical economics , control theory (sociology) , meaning (existential) , living systems , open system (computing) , risk analysis (engineering) , economics , management science , knowledge management , epistemology , business , artificial intelligence , software , philosophy , algorithm , machine learning , programming language
Abstract The principle of steady state referred to in this paper applies to all levels of living systems, but this paper deals specifically with examples at the level of the organization. The attaiment of a steady state, meaning stable dynamic equilibriu, has been said by Bertalanffy to be the most general tendency of open systems. Certain kinds of closed systems, e.g., closed feedback systems that can change their own structure reactively, like Ashby's homestat, and feedback systems to which information may be fed in, can also attain a steady state, within limits. “Stady state” is thus a leasing concept in systems theory. This paper shows, first, that this concept is not yet well defined. The appropriateness of stedy state as the objective of all kinds of open systems is then questioned by referring to a business enterprise (sociotechnical system) and its financial control system. The paper concludes by suggesting that for complex adaptive systems such as business enteprises the appropriate organizational objective lies beyond equilibrium‐seeking and very restrictive notions of stability.