09 December 2016

Strategic Management: Assumptions (Just the Quotes)

"We can invent as many theories we like, and any one of them can be made to fit the facts. But that theory is always preferred which makes the fewest number of assumptions." (Albert Einstein [interview] 1929)

"Behind every managerial decision or action are assumptions about human nature and human behavior." (Douglas McGregor, "The Human Side of Enterprise", 1960)

"Every managerial act rests on assumptions, generalizations, and hypotheses - that is to say, on theory. Our assumptions are frequently implicit, sometimes quite unconscious, often conflicting; nevertheless, they determine our predictions that if we do a, b will occur. Theory and practice are inseparable." (Douglas McGregor, "The Human Side of Enterprise", 1960)

"Formal theories of organization have been taught in management courses for many years, and there is an extensive literature on the subject. The textbook principles of organization - hierarchical structure, authority, unity of command, task specialization, division of staff and line, span of control, equality of responsibility and authority, etc. - comprise a logically persuasive set of assumptions which have had a profound influence upon managerial behavior." (Douglas McGregor, 'The Human Side of Enterprise", 1960)

"The key question for top management is what are your assumptions (implicit as well as explicit) about the most effective way to manage people?" (Douglas McGregor, "The Human Side of Enterprise", 1960)

"The most valuable use of such [mathematical] models usually lies less in turning out the answer in an uncertain world than in shedding light on how much difference an alteration in the assumptions and/or variables used would make in the answer yielded by the models." (Edward G. Bennion, "New Decision-Making Tools for Managers", 1963)

"For the scientist a model is also a way in which the human though processes can be amplified. This method often takes the form of models that can be programmed into computers. At no point, however, the scientist intend to loose control of the situation because off the computer does some of his thinking for him. The scientist controls the basic assumptions and the computer only derives some of the more complicated implications." (C West Churchman, "The Systems Approach", 1968)

"Now we are looking for another basic outlook on the world - the world as organization. Such a conception - if it can be substantiated - would indeed change the basic categories upon which scientific thought rests, and profoundly influence practical attitudes. This trend is marked by the emergence of a bundle of new disciplines such as cybernetics, information theory, general system theory, theories of games, of decisions, of queuing and others; in practical applications, systems analysis, systems engineering, operations research, etc. They are different in basic assumptions, mathematical techniques and aims, and they are often unsatisfactory and sometimes contradictory. They agree, however, in being concerned, in one way or another, with ‘systems’, ‘wholes’ or ‘organizations’; and in their totality, they herald a new approach." (Ludwig von Bertalanffy, "General System Theory", 1968)

"When one is considering systems it's always wise to raise questions about the most obvious and simple assumptions." (C West Churchman, "The Systems Approach", 1968)

"However, and conversely, our models fall far short of representing the world fully. That is why we make mistakes and why we are regularly surprised. In our heads, we can keep track of only a few variables at one time. We often draw illogical conclusions from accurate assumptions, or logical conclusions from inaccurate assumptions. Most of us, for instance, are surprised by the amount of growth an exponential process can generate. Few of us can intuit how to damp oscillations in a complex system." (Donella H Meadows, "Limits to Growth", 1972) 

"Organizations tend to grow through stages, face and surmount crises, and along the way learn lessons and draw morals that shape values and future actions. Usually these developments influence assumptions and the way people behave. Often key episodes are recounted in 'war stories' that convey lessons about the firm's origins and transformations in dramatic form. Eventually, this lore provides a consistent background for action. New members are exposed to the common history and acquire insight into some of the subtle aspects of their company." (Richard T Pascale & Anthony G Athos, "The Art of Japanese Management", 1981)

"Any approach to the study of organizations is built on specific assumptions about the nature of organizations and how they are designed and function." (Richard L Daft & Karl E Weick, "Toward a model of organizations as interpretation systems", Academy of Management Review Vol 9 (2), 1984)

"Culture [is] a pattern of basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems." (Edgar H Schein, "Organizational Culture and Leadership", 1985)

"Models are often used to decide issues in situations marked by uncertainty. However statistical differences from data depend on assumptions about the process which generated these data. If the assumptions do not hold, the inferences may not be reliable either. This limitation is often ignored by applied workers who fail to identify crucial assumptions or subject them to any kind of empirical testing. In such circumstances, using statistical procedures may only compound the uncertainty." (David A Greedman & William C Navidi, "Regression Models for Adjusting the 1980 Census", Statistical Science Vol. 1 (1), 1986)

"An important part of project management is keeping track of thoughts, assumptions, suggestions, limitations, and the myriad related details of the project." (InfoWorld Vol. 12 (17), 1990)

"At the heart of reengineering is the notion of discontinuous thinking - of recognizing and breaking away from the outdated rules and fundamental assumptions that underlie operations. Unless we change these rules, we are merely rearranging the deck chairs on the Titanic. We cannot achieve breakthroughs in performance by cutting fat or automating existing processes. Rather, we must challenge old assumptions and shed the old rules that made the business underperform in the first place." (Michael M Hammer, "Reengineering Work: Don't Automate, Obliterate", Magazine, 1990)

"Organizations need the capacity for double-loop learning. Double-loop learning occurs when managers question their underlying assumptions and reflect on whether the theory under which they were operating remains consistent with current evidence, observations, and experience. Of course, managers need feedback about whether their planned strategy is being executed according to plan-the single-loop learning process. But even more important, they need feedback about whether the planned strategy remains a viable and successful strategy-the double-loop learning process. Managers need information so that they can question whether the fundamental assumptions made when they launched the strategy are valid." (Robert S Kaplan & David P Norton, "The Balanced Scorecard", Harvard Business Review, 1996)

"There are several world view assumptions present in enterprise engineering. The first assumption is that the enterprise can be viewed as a complex system. This is necessary because systems in organizations are systems of organized complexity. Complexity is the result of the multiplicity and intricacy of man’s interaction with other components of the system. Secondly, the enterprise is to be viewed as a system of processes. These processes are engineered both individually and holistically. The final assumption is the use of engineering rigor in transforming the enterprise. The enterprise engineering paradigm views the enterprise as a complex system of processes that can be engineered to accomplish specific organizational objectives. In the Enterprise Engineering paradigm, the enterprise is viewed as a complex system of processes that can be engineered to accomplish specific organizational objectives." (Donald H Liles, "Enterprise modeling within an enterprise engineering framework", 1996)

"[Schemata are] knowledge structures that represent objects or events and provide default assumptions about their characteristics, relationships, and entailments under conditions of incomplete information." (Paul J DiMaggio, "Culture and Cognition", Annual Review of Sociology No. 23, 1997)

"Formulation of a mathematical model is the first step in the process of analyzing the behaviour of any real system. However, to produce a useful model, one must first adopt a set of simplifying assumptions which have to be relevant in relation to the physical features of the system to be modelled and to the specific information one is interested in. Thus, the aim of modelling is to produce an idealized description of reality, which is both expressible in a tractable mathematical form and sufficiently close to reality as far as the physical mechanisms of interest are concerned." (Francois Axisa, "Discrete Systems" Vol. I, 2001)

"What is a mathematical model? One basic answer is that it is the formulation in mathematical terms of the assumptions and their consequences believed to underlie a particular ‘real world’ problem. The aim of mathematical modeling is the practical application of mathematics to help unravel the underlying mechanisms involved in, for example, economic, physical, biological, or other systems and processes." (John A Adam, "Mathematics in Nature", 2003)

"A theory is a speculative explanation of a particular phenomenon which derives it legitimacy from conforming to the primary assumptions of the worldview of the culture in which it appears. There can be more than one theory for a particular phenomenon that conforms to a given worldview. […]  A new theory may seem to trigger a change in worldview, as in this case, but logically a change in worldview must precede a change in theory, otherwise the theory will not be viable. A change in worldview will necessitate a change in all theories in all branches of study." (M G Jackson, "Transformative Learning for a New Worldview: Learning to Think Differently", 2008)

"Leaders should be aware of how their mental models affect their thinking and may cause 'blind spots' that limit understanding. Becoming aware of assumptions is a first step toward shifting one’s mental model and being able to see the world in new and different ways. Four key issues important to expanding and developing a leader’s mind are independent thinking, open-mindedness, systems thinking, and personal mastery." (Richard L Daft, "The Leadership Experience" 4th Ed., 2008)

"Mental models are representations of reality built in people’s minds. These models are based on arrangements of assumptions, judgments, and values. A main weakness of mental models is that people’s assumptions and judgments change over time and are applied in inconsistent ways when building explanations of the world." (Luis F Luna-Reyes, "System Dynamics to Understand Public Information Technology", 2008)

"Complex systems defy intuitive solutions. Even a third-order, linear differential equation is unsolvable by inspection. Yet, important situations in management, economics, medicine, and social behavior usually lose reality if simplified to less than fifth-order nonlinear dynamic systems. Attempts to deal with nonlinear dynamic systems using ordinary processes of description and debate lead to internal inconsistencies. Underlying assumptions may have been left unclear and contradictory, and mental models are often logically incomplete. Resulting behavior is likely to be contrary to that implied by the assumptions being made about' underlying system structure and governing policies." (Jay W. Forrester, "Modeling for What Purpose?", The Systems Thinker Vol. 24 (2), 2013)

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