BOOK OF ABSTRACTS
ISSS SHANGHAI, 2002

PLENARY PRESENTATIONS


2002-136
A ROLE FOR THE PRIVATE SECTOR IN THE FIGHT AGAINST CORRUPTION
Roxana Cárdenas
Dept. of Industrial and Systems Engineering
ITESM - Monterrey Campus
Av. Eugenio Garza Sada 2501 Col. Tecnológico, Monterrey, N.L. 64849
MÉXICO
This paper is based on the results of a nation-wide study on "Governability and Private Sector Development" emphasising the problem of corruption in Mexico. In 2001, the Monterrey Institute of Technology (ITESM) signed an agreement with the General Controller of the nation to carry out a research aimed at evaluating the levels of corruption as perceived by the private sector in the different states of the country. The author was appointed member of the technical committee who designed and coordinated the research.
The first part of the study was devoted to the design and implementation of a survey applied to 6000 firms in the whole country, this included the 250 largest firms in Mexico, the 30 largest firms in each of the 32 Mexican states and a random sample statistically representative at the state level. The survey was aimed at evaluating the perceived incidence of corruption in the relationship between Government and the private sector and the elements in Government performance that may contribute to it.
The second part of the study focused on the development of proposals to fight against corruption. However, there is already an extensive literature reporting on this subject (academic studies and documented experiences of different countries) which concentrates mostly on actions that might be undertaken by the public sector. Therefore, as this study on corruption involves both, the private and the public sector, it was decided to identify proposals that may be carried out by the private sector.
The approach followed during the second part of the study involved the organization of a series of workshops with top management executives of the private sector. The aim was to identify which corrupt practices impinge the most upon the development and competitiveness of the enterprises in Mexico and, to explore strategies that they could adopt in this matter. The results of the workshops where analysed and integrated in the light of the relevant literature together with the results of the first part of the study, and lead to interesting perspectives on a possible role for the private sector in the fight against corruption.
The design of the second part of the study involved the consideration of the challenges faced by a situation that is clearly highly complex and characterised by what is called "systemic corruption", the need to incorporate a participative approach and, the interest in generating results that could lead to plausible actions.

 

2002-257
IMMINENT INTEGRATION OF THE NATURAL AND SYSTEMS SCIENCES: POTENTIAL PROBLEMS, PATHWAYS, AND POWERFUL BENEFITS
Dr. Len Troncale, Professor, Biological Sciences Director, Institute for Advanced Systems Studies, California State Polytechnic University, Pomona, Ca. 91768
E-mail: lrtroncale@csupomona.edu
Historically, the developmental pathways of the natural sciences and the systems sciences have been separated and even antithetical. But today, some of the most promising and productive new specialties in the natural sciences have emerged as both potent sources for and dependent consumers of systems science. This talk will describe how these new natural science fields are decisively contributing to future development of systems science while the natural sciences simultaneously need contributions from this stimulated progress in systems science to continue their own advance. We will recommend several pathways to overcome specifically described obstacles to unification of these two methodologies in order to ensure high productivity in each. The talk will succinctly review developments in such diverse new fields as biotechnology, bioinformatics, high throughput genomics, proteomics, and physionomics, nanotech-nology, nanorobotics, bioengineering, earth systems science, cosmological origins, massive computer simulations from physics to biology, astrobiology, large-scale data bases on species, environments, the brain and neurosciences, mapping of social and management networks, the Next Generation Internet (NGI-Internet2), and more to find their common dependency on a better understanding of how systems work. We will continue with an outline of what is similar and what is different among these new efforts in the natural sciences, and what forces are driving their newfound attention to systems problems. We will describe specific sample obstacles to science integration with systems science including the harmful role played: (1) by "discinyms," (2) by attachment to and proselytizing of one method or systems mechanism over others, (3) by set-backs due to institutional calcification, and (4) by human intellectual dynasties. It is important to recognize that there are significant pro's that promote each of these alleged obstacles because a balanced view of their dynamics would help future workers use their positive contributions while avoiding their negative impacts. Some specific pathways to overcome the supposed obstacles will include: (1) provision for a multi-authored, open-source, Internet2 SYSML "commons" data base promoting standards and connections across the widest range of systems approaches (2) new international education programs on Integrated Science that include both computer-based and distanced-learning training in the systems sciences based on Integrative Themes across the natural sciences, and initiation of the new fields of (3) Systems Pathology, (4) Systems Allometry or associated empirical approaches to systems science, and (5) Artificial Systems Research. Finally, we will attempt to present a tangible image of the benefits, utility, practical profits, value, and effectiveness that would be gained by the anticipated unification of the natural and systems sciences. The unified view of both human and natural systems that will emerge will be shown to be more appropriate for a cohesive world and the space-faring species we are becoming than our previous worldviews. The full range of practitioners from basic researchers in the various natural sciences, to workers in systems science, from business managers to socio-political organizers could profit from forewarning of the coming unification of these two powerful ideas, and a headstart on computer-based tools that help that unification to be presented in an evening workshop later in the conference.

 

2002-259
SYSTEMS APPROACH TO TRANS-DISCIPLINARY KNOWLEDGE EXCHANGE
Yoshiteru Nakamori
School of Knowledge Science
Japan Advanced Institute of Science and Technology, Asahidai, Tatsunokuchi, Ishikawa 923-1292, Japan
nakamori@jaist.ac.jp
School of Knowledge Science was established in 1998 in Japan Advanced Institute of Science and Technology, which is the first school established in the world that claims knowledge as a target of science. Since knowledge will certainly become a key concept in every field in the 21st century, the school has enlisted researchers from different fields to develop knowledge science that has a trans-disciplinary property in nature. One of the important research topics in the school is to develop systems methodologies for trans-disciplinary knowledge exchange utilizing information and communication technologies. This paper outlines a systems methodology that may contribute to knowledge science.

 

2002-405
MIDDLE HUMAN SCIENCE
John N. Warfield
The human components of systems science typically are either "macro" (grand, universal theories, too broad to be applied locally) or "micro", with specific numerical outputs, too restricted to be applied to many local issues. "Middle human science" lends itself to producing logic patterns, locally generated and interpreted, and is broadly applicable to many problematic situations, world-wide. Moreover middle human science meets very specific quality control conditions emanating from such researchers as Foucault, Friedman, Harary, and Ashby.

 

2002-406
CREATIVE HOLISM : SYSTEMS THINKING FOR MANAGERS
Mike Jackson, Director, University of Hull Business School, University of Hull, Cottingham Road, Hull, HU6 7RX
Too often managers are being sold fads and panaceas - quick-fix solutions to complex problems. As many have discovered simple solutions rarely work in the face of complexity, change and diversity. Fundamentally, they fail because they are not holistic or creative enough.
Because of the failure, in many instances, of the panaceas they have been offered, managers are looking for alternatives. They are turning towards systems thinking. They hope to learn from systems thinking how to cope with complexity, change and diversity. This hope is based on the fact that systems thinking is holistic rather than reductionist and, at least in the form of critical systems thinking, does everything possible to encourage creativity.
The talk explores the meaning of creative holism and demonstrates its value to managers.

 

 

PAPER SESSIONS

 


2002-001
LIVING SYSTEM THEORY USED AS A DIAGNOSTIC TOOL
Anders Malmsjö and Lars Lorentsson
University of Skövde, Department of Computer Science. P.O. Box 408, S-54128 Skövde Sweden Email: anders.malmsjo@ida.his.se
The purpose of this paper is to discuss the process of applying Living Systems Theory (LST) by James Miller as a diagnostic tool. The application is in the area of organisational behaviour and management and more specifically project management processes when developing computerised information systems.
The potential contributions of LST are manifold. Examples of contributions are the following: hypothesis to be tested; common terms and concepts and a theoretical framework are given as a basis for establishing relationships between different disciplines; diagnosis of living systems are possible based on normative process descriptions; suggestions on how to make new observations or to conduct experiments on a wide range of phenomena.
The focus of this paper is not on the results of the specific study per se, but on the considerations of applying LST in obtaining material and in the analyses of this empirical material. In van Gigch's terms we are performing reflections on a diagnosing process on the metamodelling level. The diagnose process was performed based on the group level in LST and the focus of the material was on the critical subsystems that process information.
We found that it was relevant to incorporate LST in the study from the beginning, otherwise the descriptions would not be adequately prepared for analyses based on LST, thereby risking that the effects of the analyses would be weak. Instead, the critical processes specified by LST should guide the analyst to what aspects in the application are key aspects that should be captured. In order to be able to find the relevant processes in the application and to be able to analyse them, a thorough understanding of them seems necessary. In our experience the critical subsystems are clearly defined in Miller's book, but to comprise all aspects of a subsystem like the Associator rests on an intimate knowledge of the process of the that critical subsystem, or else there is a risk of faulty or insufficient application of that subsystem.
The LST model is a general model and as many other general models, like the Viable System Model by Stafford Beer, for instance, it can be used as a diagnosing tool. Ill-functioned processes and problems can be identified, but we believe that it is not as easy to solve problems or improve processes based on only analyses from LST. LST is a normative and general model, and it does not cover detailed aspects on how to adjust processes in reality to function in accordance with LST. To be able to do that, a detailed and specific model of reality is helpful.
In order to make LST more available for use in organisational behaviour and management applications, we think that a handbook or guide should exist, like the book "Diagnosing the system for organizations" by Stafford Beer, which help people in organisations to apply the Viable System Model.

 

2002-002
APPLYING EXPANSIONISM TO THE PROCESS OF DESIGNING INFORMATION SYSTEMS
Anders Malmsjö and Ingvar Karlsson
University of Skövde, Department of Computer Science, Skövde, Sweden, anders.malmsjo@ida.his.se
The process of designing information systems is a complex task. In order to be able to perform a successful design, people involved in the process should be aware of what factors give rise to complexity. The purpose of this study is to elucidate those aspects that can contribute to an explanation of why the design process tends to be complex.
Börje Langefors, a pioneering system thinker in Sweden, has specified six main types of fundamental problems when information systems are designed. These are (1) human beings have narrow cognitive limitations, and the systems are (2) complex, (3) mulitidisciplinary, (4) dynamic, (5) infological, and (6) human and social, where the concept of infology deals with information and its complicated relations to data, competence and knowledge. These problems together are also a way to characterise the design process.
In this study we have used expansionism as a tool to describe some key aspects of the design process. There are authors who use the word hierarchy to capture this tool. Expansionism deals with the process of specifying a framework, which shows the relationships between simpler systems constituting a complex system. It is reasonable to say that the process of expansionism helps us to organize, to understand, to communicate, and to learn about complexity of a phenomenon
Our study is based on two extensive interviews with two experienced designers of information systems and on a literature study. The two designers work in different organisations. One of the interviewee works in a consulting agency (WM-data), the other one works in a company that manufacture cars (Volvo). Considering the process of information system design, the following basic components were identified: the designer, the user, the customer and the design itself, where the design is what eventually will be implemented in reality. The shape of the design changes from a simple design model to an implemented system. By introducing relationships between the basic components, a system model of the design situation was found. Every one of the basic components in that system is a system in itself. By applying expansionism on the first system model with the basic components, the underlying systems could be built up. The components of the designer as a system were found to be: personality, ethics, knowledge, paradigm, ability and aesthetics. When relationships where introduced a system model of the designer could be described. In the same way system models of the user, the customer and the design are shown in this paper.
The primary results of this study are manifested in the tentative system models describing the designer, the user, the customer and the design. We mean that by identifying key components of a design process and considering their relationships, the first stage of an integrated understanding is accomplished. The second stage of an integrated understanding is accomplished by using expansionism to describe the underlying system models.

 

2002-005
A MULTI-METHODOLOGICAL APPROACH TO EMERGENCY CALL HANDLING IN THE METROPOLITAN POLICE SERVICE
Raymond Rowe, Apercu Ltd, 91 Monkhams Lane, Woodford Green, Essex, IG8 0NN
This paper explores a systems science approach to evaluating and improving Metropolitan Police Service (MPS) policy toward emergency telephone call handling from 1999 to 2001.
A multi-methodological approach was adopted to identify the problem situation and agree an agenda for change. Soft Systems Methodology (SSM) and a number of other methodological techniques were used to assist in identifying the problem situation. Archive data was gathered throughout the research to inform SSM. Interviews were conducted with emergency telephone call handlers and inform SSM. Questionnaires were designed to investigate policy and procedures for emergency telephone call handlers operating in the MPS and inform SSM. A number of emergency telephone call handlers were observed and identified as case studies to inform SSM.
A multi-methodological approach was used to evaluate the policy and procedures used by the MPS and emergency telephone call handlers involved in emergency telephone call handling. Secondly, A multi-methodological approach was used to identify systemically desirable and culturally feasible changes to the policy and procedures and to debate with the MPS and emergency telephone call handlers. Thirdly, A multi-methodological approach was used to obtain agreement to implement and evaluate the effects of those changes to the policy and procedures.
The three objectives were achieved and lessons learned from the integration of multi-methodological techniques with SSM. The continual flow of data and information to inform SSM was gathered from archive data, interviews, questionnaires, observations and case studies. This was used to generate an agenda for change to improve the problem situation. The MPS implemented the changes and these were evaluated. The emergency telephone call handlers were considered cost effective in dealing with the increasing number of emergency telephone calls. The introduction of a skills-based emergency telephone call handling system has led to greater consistency in police emergency telephone call handling.

 

2002-006
IDENTIFYING THOSE ON BOARD 'THE MOVING TRAIN': TOWARDS A STAKEHOLDER-FOCUSED METHODOLOGY FOR ORGANISATIONAL DECISION-MAKING
John Simmons, Paul Iles and Maurice Yolles
Liverpool Business School, Liverpool John Moores University, 96 Mount Pleasant, Liverpool L3 5UZ, United Kingdom
Management scientists seeking to solve complex organisation problems are, in Landry and Malouin's terms, 'boarding a train that is already moving' [Landry and Malouin, 1983]. Pursuing this analogy, if the train is the issue or problem this paper offers a structured methodology for identifying train passengers [stakeholders with a vested interest in the problem] and their luggage [particular perspectives on the problem that accompany each of them on their journey] within a new model of organisational enquiry based on viable systems theory. Stakeholder analysis is a method of identifying, classifying and managing disparate stakeholder interests. The paper contends that both quality and acceptability of organisation decision making are enhanced by incorporation of the method in multiple criteria decision aids [MCDA]. Stakeholders are defined as those with a vested interest in the problem or issue who can influence the way it is defined, formulated and solved. MCDA's are characterised by several criteria actually or potentially in conflict with each other that are perceived and evaluated differently by different stakeholders.
The paper draws significantly on Banville et al's proposition that the stakeholder concept is an appropriate way of acknowledging socio-political aspects of organisation decision making i.e. those problem dimensions involving multiple and conflicting criteria that elude mathematical schema currently in use. The stakeholder model regards decisions or problems "not as objective reality but [as] a deliberate mental construction that relies heavily on the perspectives of concerned actors and contextual conditions" [Banville et al, 1998, 15]. In this way it acknowledges the pluralistic nature and complex socio-political context of organisational decision making. The paper advocates the 'soft' systems methodology of stakeholder analysis as a means of reconciling organisation concern for control of system outputs with potentially conflicting expectations of other stakeholder groups inside and outside the organisation. Its hypothesis is the incorporation of stakeholder perspectives in decision-making processes will enhance effectiveness, employee motivation and organisational justice as system outputs. The viability of the model is demonstrated by its application within a stakeholder analysis of performance management in knowledge based organisations.
The case study describes the application of the stakeholder analysis model to performance appraisal systems within universities and colleges. It views them as the 'negotiated outcome' of different interest groups, and within this gives particular emphasis to identifying employee attitudes and perspectives. Academic staff from two UK Business Schools, together with a national sample of those teaching and researching performance appraisal, were constituted as 'expert witness' stakeholder groups and views obtained on performance appraisal in their institutions. These 'expert witness' perspectives are utilised to develop a philosophy of performance appraisal for knowledge based organisations, to assess the acceptability of particular performance criteria, and to confirm the organisational justice and performance management rationales of involving appraisees in the design and modification of their organisations' appraisal systems. The potential of the 'stakeholder synthesis' method to reconcile competing claims from different stakeholder groups within performance appraisal systems is also indicated.
Evidence from the case study, together with recent developments in systems theory and OD, is used to develop a viable systems stakeholder model of performance management. This is complemented by a new methodological cycle of organisation enquiry together with the various stakeholder contributions and decisions required at each stage. The overall contention of the paper is for stakeholder analysis to be incorporated within multiple criteria decision making models where the viability of the developed system is dependant on its acceptability to a number of potentially conflicting stakeholder groups, or where decision quality is likely to be enhanced by consideration of different stakeholder viewpoints. Those 'inside' and 'outside' the systems weltanschauung acknowledge the stakeholder perspective as important but under researched. Its incorporation in models of organisation decision making is likely to have significant benefits for both groups. For those 'on the inside' it is a way of ensuring mathematical rigour in decision-making is not pursued at the expense of organisational relevance. For those 'on the outside', systems based stakeholder models contribute a more rigorous, holistic, and dynamic perspective on organisation analysis and development. For both 'camps' the method shows how management science can be utilised to achieve an appropriate balance between effective management, good governance, and organisational justice in knowledge based organisations of the twenty-first century.
Finally the paper identifies issues for further transdisciplinary research that include assessing the relative usefulness of tools and techniques advocated at different stages of the cycle of structural enquiry, and evaluating the overall utility of the systems based stakeholder model within other knowledge based organisations.
References
Banville, C., Landry, M., Martel, J.-M. and Boulaire, C. (1998) A stakeholder approach to MCDA. Systems Research and Behavioral Science, 15, 15-32.
Landry, M., and Malouin, J.-L. (1983) Pour une meilleure utilisation des experts-conseils en administration. Gestion 8, (2), 4-11, in
Banville, C. et al. op.cit., 19.

 

2002-008
TECHNOLOGY POLICY PROCESS TO COPE WITH THE COMPLEXITY OF ENTERPRIZE TECHNOLOGY STRATEGIES
Koichi Haruna, R&D GROUP, Hitachi, Ltd., New Marunouchi BLDG., 5-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo, 100-8220, Japan
In order to bridge the gap between the business decision-makers and the researchers, organizational decision making process has to cope with the complexities of the process as well as the complexity of the problem. Based on the recognition, we proposed that the innovation process should be guided by a new professional, Technology Policy Staff, who has a broader scope both for technologies and for markets and gave a framework of the policy process.(IEEE SMC 1999, Tokyo).
We made it clear what causes the complexities and showed how new digital media- enabled innovations of decision field affect this policy process. That is, Lasswell's concept of policy sciences and its process has become applicable to the problem of enterprise technology innovation, if behavioral sciences viewpoints on Technology Policy Staff are appropriately taken into consideration in terms of structure and power of the decision field. The concept of A. Dixit's Transaction-Cost Politics gave a supplemental framework for identifying the causes and the affects on the process of the imbalance and insufficiency of the information available to the participants. The key factors in implementing TPS identified through prototyping are related with activities such as supporting of spontaneous creative process, mediating participants' interests in a game under uncertain situations, enlightening and mobilizing various participants, and independence as a member of power elite.(IEEE SMC 2001, TUCSON).
This paper presents TPS's method to combine models of the vision, the recognition and the constraints into an enterprise technology policy model which can explain what constitutes business and technology platform in terms of the enterprise strategy as well as how complex it is to develop the platform. Critical factors in creating strategic enterprise technology policy include market-pull approach, potential size of market, organizational information processing capability, and the direction, timing and size of successive investments. It is closely related with BRAND.

 

2002-009
THE STUDYING OF COMPLEXITY FOR ENTERPRISE DEVELOPMENT
Li Xinchun?Tao Xueyu, School of Management, China University of Mining and Technology, Xuzhou 221008
Complexity science is one science to study the complexity and complexity system, it studies mainly the development process of the complex nonlinear system. The development of enterprise is a multi-factor, multi-administrative, dynamic changing and opening complex nonlinear system.
The enterprise development is a complex nonlinear system as the economy development principal part of our country. It possesses the unification of the structure and function. The national enterprise is a typical devotion and output opening system from its producing and managing. The enterprise changes the matter, energy and information with the around environment constantly during its daily producing and managing. On this view, the development of the national enterprise is worthy of the name of forming a squander structure. At the same time, the mutation of bankruptcy emerges in the enterprise during forming the squander structure because of the inside and outside factors effect along with the running of the market economy.
In this paper, the complexity science is used to analyze the development of the national enterprise; The qualitative and quantitative relations of the main factors for the enterprise is analyzed by studying the forming of the squander structure and mutation for the development of the national enterprise. The mutation law of the development and the development trend are forecasted by the random changing of the main factors. It provides a science and theory base for the macroscopic development and the microcosms adjusting for the enterprise.

 

2002-011
UNCOVERING SYSTEM AGENCY: A CASE FOR READING PATTERNS OF PURPOSIVE INTENT IN ORGANIZATIONS
Pamela Buckle, Faculty of Management, University of Calgary Murphy Klatt Consulting Inc. pmbuckle@ucalgary.ca
In recent years, research in areas ranging from global ecology to quantum physics has encouraged many organizational theorists to question the causal primacy of conscious human rationality in complex systems such as business firms. Contemporary understandings of complex systems now challenge the notion that leader-centric impetus may be the most powerful teleological force at work in corporations. This theoretical paper argues the need to consider the organizational system itself as an important agent, capable of having and expressing teleological intent that will often depart from the conscious intents of any corporate division, management team, or CEO.
This paper postulates a view of organizations as collective beings that possess knowledge and goal orientation that differ from that of individual organizational actors. Organizations express their intelligence and teleology through the events and activities of organizational participants. Thus, this paper argues a reframing of the term "organizational behaviour," attributing many individual cognitive and behavioural decisions to the expression of organized teleological agency of organizational systems themselves.
The paper discusses some of the difficulties inherent in reading organizations' patterns of purposive intent, and detecting the tacit logic underlying organizational dynamics in corporate settings. Despite the challenges, we need to better understand the largely-unconscious attractor patterns that govern human behaviour in workplaces. Our capacity to effectively manage the complexity of our corporations, to operate more collaboratively with myriad wisdoms in organizational settings, and to reflexively respond to the urgent call to collaboratively evolve on this planet depend on it.
2002-013
CHAOS AND ORDER THROUGH FLUCTUATIONS IN GLOBAL CAPITALISM IN THE 21ST CENTURY
Yong Pil Rhee, Seoul National University, Shillim-Dong, Kwanak-Gu, Seoul 151-748, Korea rheeyp@plaza.snu.ac.kr
It is often suggested that capitalism is an unplanned economic system. In the absence of any overall mechanism for planning productivity, it is only through periodic recession that a market system can shutdown activities which have become obsolete or uncompetitive and redirect labor and capital into thrive upon innovation and the capability to leave the past behind. Thus capitalism can be not only a very powerful constructive force but also a destructive one. This global capitalism that is one of the driving forces of globalization to some extent is a very complex economic system. We do not know fully as yet how it works. It can be assumed that global capitalism is a complex form of economic system which may be a typical nonequilibrium system functioning in the globally turbulent situations among the capitalist nations.

 

2002-014
NONCONTIGUOUS SOCIAL-SYSTEMS ANALYSIS: VERTICAL AND HORIZONTAL LINKS IN INTRA- AND INTER-SOCIETAL RELATIONS
Kenneth D. Bailey, Department of Sociology, University of California, Los Angeles, Los Angeles, CA 90095 USA Kbailey@soc.ucla.edu
Early thermodynamic systems theory focused on system internals, using the notion of an isolated system to study entropy changes within a given system. Later, social-systems theorists also focused primarily on system internals, specifically part-whole relationships, in which a part (e.g., an institution) was said to serve a particular function for the whole (e.g., a society). A continuing emphasis on system equilibrium served to maintain the focus on system internals, even though the social system was acknowledged to be an open system, whose boundaries allowed exchanges of matter-energy and information between the system and its environment. Niklas Luhmann criticized this overemphasis on system internals, and stressed the analysis of the relationship between a system and its environment. However, social-systems theory continues to be predominantly dualistic or dichotomous, emphasizing links between a system and its residually defined environment. The next logical (and sorely needed) step is to analyze simultaneously not only internal links within a given social system, but also external links between a given social system, and one or more other social systems. The basic typology for this endeavor is a fourfold model of links: (1) internal-vertical, (2) internal-horizontal, (3) external-horizontal, and (4) external-vertical. An example of a vertical link would be between a group and an organization. An example of a horizontal link would be between two groups. The four types of links are listed in the order that they have been previously recognized. Thus, while internal-vertical links were recognized in the part-whole analysis of classical functionalism, external-vertical links remain virtually invisible in social-systems theory. The increasing number and rapidity of interactions between social systems, particularly electronic information and money flows, assures that social-systems theorists cannot continue to neglect such links if they wish to claim contemporary relevance for their work.

 

2002-015
FUTURES DATA ANALYSIS BASED ON WAVELET TRANSFORM
Li Sheng1 and Zhao Dongmei , Institute of Intelligent Information Engineering, Zhejiang University, Hangzhou, 310027, P. R. China; soonl@sohu.com; 1corresponding author
Futures transaction is a common kind of venture investment in modern economic. Compared to other financial investment, it is to handle high risk actively so as to acquire high revenue. The venturousness of the trading activity often focus man's attention on the rising and dropping of futures' price and the change of supply-demand relationship. Investors pursue increase in capital and high revenue in short term by buying in low price and selling in high price. In general, it is think of as impossible to forecast futures' long-term price. Up to present, there is a few scientific quantitative analysis theory and methods worthy to be applied in practical trading. Among them, the most famous theory is wave principle posed by R. N. Elliott in 1938. This method was founded on the basis of the observation and analysis of price fluctuation in market, which provides investors a set of method to judge the future trend of market price and make corresponding decision. Despite its defect of lacking strict quantification, it is still a useful qualitative model of stock analysis.
Wavelet transform is a prevailing novel time-frequency signal analysis theory in recent years. It possesses the good characteristics such as orthonormal property, direction selecting and changeable time- frequency domain resolution ratio, which make wavelet theory a new powerful analysis method for signal processing. We try to apply wavelet transform to analyze futures data.
The thought of wavelet originates from the normalized wavelet orthonormal basis proposed by Harr in 1910. By introducing wavelet, Morlet analyzed and processed the earthquake signals and put forward the system of continuous wavelet transform up to 1980. Thereafter, Mallat united the former construction methods of wavelets by using multi-resolution analysis. Thus, the status of wavelet was founded in the classic signal analysis.
Wavelet transform is to spread the signals into the weighted sum of a family of wavelet basis. Its properties are as follows:
1. Multiple resolutions. It can observe signals at a specific scale from roughness to precision.
2. It can be regarded as band-pass filters with basic frequency characteristic to filter signals at various scale a.
3. Suitable wavelet can give the capability of express local feature of signals at time and frequency domains. Moreover, discrete wavelet transform can construct standard orthogonal system, which is helpful to detect the singular points and transient state.
We select returns ratio of futures as analysis data. By the multi-resolution analysis, we find that wavelet transform can eliminate the rising or dropping resulted from the accidental factors and reveal the major impact factors and macroscopic mutation points and demonstrate that the futures data have fractals feature. Furthermore, the study also demonstrates that a certain non-stochastic rule lies in the stochastic futures data on the surface, which indicates that futures market is predictable from macroscopic aspect.

 

2002-016
A FUZZY NEURAL NETWORK MODEL FOR FORECASTING STOCK PRICE
Li Sheng, Institute of Intelligent Information Engineering, Zhejiang University, Hangzhou, 310027, P. R. China; soonl@sohu.com
With the continued development of economics, high-speed increase takes place in capital markets of developing countries. Stock investment has become an important means of individual finance. Apparently, it is significant for investors to estimate the stock price and select the trading chance accurately in advance, which will bring high return to stockholders. In the past long-term trading process, many technical analysis methods for stock market such as K-line figure and moving average etc. were put forward. These methods are based on the statistical data generally. However, stock market is a nonlinear system in fact due to the political, economical and psychological impact factors. Thus, it is difficult for us to use traditional analysis tools to make stock transaction decision accurately. Moreover, there is usually remarkable difference in the analysis conclusions of various persons, which demonstrates they are not suited to be used by general investors.
Recently, artificial neural network, a commonly used nonlinear function approximation tool, has shown huge advantages in forecasting, style identification, optimization technique and signal processing for its good properties such as nonlinear, flexible and valid self-organization study et al. Back-propagation (BP) neural network, a typical case of neural networks, is used most widely and is more mature than other networks. Unlike the classic mathematic methods, BP networks can establish function approximation for specific input and output relationship without a certain model. Therefore, we attempt to set up a BP ANN model of traffic accident prediction. Nevertheless, traditional BP network has some weaknesses that it is easy to relapse into local minimum point and computation convergence speed is somewhat slower, which affect the enhancement of reliability and accuracy of prediction model.
So, we intend to combine fuzzy mathematics with neural network in order to improve the precision and convergence speed of prediction model. Thus, a neural network-driven fuzzy reasoning system is proposed on the basis of improved Takagi-Sugeno reasoning model. The system consists of P+1 neural networks, NN1~NNP denote the functions in the conclusions of the P rules, NN P+1 is used to calculate the fitness of each rule corresponding to input vector. The research approaches are as follows:
Step 1. Determine the number of fuzzy rules according to a certain clustering method. Accordingly, cluster training samples.
Step 2. Train the neural network NN1~NN P+1. Unlike the sigmoidal function used in the traditional network, we construct a new activation function, which expands the value scope of arguments.
Step 3. Put the fuzzy neural network into practice.
The experimental result shows that the fuzzy neural network has such properties as fast convergence, high precision and strong function approximation ability.

 

2002-017
LOGICAL FIELDS AND THE DYNAMICS OF CHANGE: FROM CONFLICT TO COOPERATION
Christine Hardy, Ph.D., Centre ECO-Mind, 24 rue du Moulin, Ormoy, 91540 France 101515.2411@compuserve.com
Semantic Fields Theory (Hardy, 1998) develops how semantic processes self-organize in the mind at a global level - creating nested intertwined networks evolving via a spontaneous connective process and instantiating a connective logic. However, the point of this paper is to explore deeper dynamics of the thinking process, especially the nonrational, analogical, and systemic aspects of natural thinking. There is an extreme diversity in the way humans think, despite the existence of patterns of thought or Logical Fields (the individual and collective mental models). The Logical Fields Model provides a systemic, evolutionary, and dynamical formalization accounting for both the patterns and the exquisite diversity. It is applied here to the understanding and envisioned resolution of the spiral of Hate-Violence in ethno-political conflicts.

 

2002-018
ASO: A SYSTEMS ONTOLOGY
Terence Kuch *, 4201 Wilson Blvd #110-327, Arlington, Virginia 22203 USA
This paper develops a 'systems ontology' in the sense described by von Bertalanffy (1969, pp. xix-xxii), and defines theoretical rules and executable algorithms for distinguishing a 'system' from whatever is not a 'system'. Based in philosophy, the argument is developed primarily from the writings of Russell, Bradley, and Wittgenstein on internal and external relations, and also from recent trends in mereology and mereotopology (Casati and Varzi, Simons, D. Lewis). 'System' is defined at three levels of increasing complexity: static, dynamic or functional, and purposive. Static systems are those to which change is not relevant. It turns out that two quantifiable measures are sufficient to identify a static system: individuation and cohesiveness. At the static level, a rigorous procedure is developed which allows all systems, and only systems, to be identified in a graph of arbitrary complexity. In a dynamic (functional) system, at least one element has an effect on another, e.g., passing data or commands, passing a stream of atoms or photons, etc., that has at least the potential of resulting in some change (in?formation) in the target element. The analysis of dynamic systems is concerned with how characteristics and identities of systems are preserved or modified as these systems change and interact with other systems. At the purposive level, the logical relation of function to purpose is analyzed, and is found to be highly complex. Some of the questions at the various levels for which answers are offered include: Can every aggregation (for example, a heap of rocks) be considered a system under some description? What kind of changes can occur and still leave a system 'the same system'? Are there 'stronger' and 'weaker' relations? How are 'relations' to be counted? If a system can be viewed as a populated structure, how do we analyze partially populated structures? Can there be two portions of a dynamic system that do not exist at the same time? Must a system have a function? a purpose? (How) can one count the number of purposes a system may have? Is a purpose of a system (assuming it has a purpose) determinable by examination of that system alone? (How) is the purpose of a system subject to change, even when the system itself has not changed? The paper ends with suggested applications of the ASO approach to real-world social and economic systems.

 

2002-019
PERFORMANCE MEASUREMENT OF CHINESE TEXTILE INDUSTRY IN 1998
Wang Xinyu, Zhou Min, Zhang Jing and Feng Wenlong, School of Management, China University of Mining and Technology, Xuzhou City, Jiangsu Province, China, postcode: 221008, Email: wxy_cumt@sohu.com
In this thesis, a data envelopment analysis model with preference information about input and output targets is set up to evaluate the economic operational efficiency of the textile industry of Chinese 31 regions. Then the stochastic production frontier function of Chinese textile industry is obtained with the data set of all DMUs' projection points on the production frontier face by regressive analysis model. An econometric regressive model is set up to explain the difference among efficiency of different regions .A system analysis and assessment about the macroeconomic operational efficiency of China textile industry is carried through, and some conclusions are valuable for decision-making.

2002-020
SO WHAT'S NEW ABOUT COMPLEXITY ?
Peter J Murray, The University of Hull, Business School, Hull HU6 7RX UK
In line with the Conference Theme of 'Managing Complexity and Change', this paper will address the extent to which the insights of what is called the New Sciences (Catastrophe, Chaos and Complexity Theory) for organizational life are novel, and to what extent they do not take managers much further forward than other theories which have questioned a classical or reductionist view of management. The link to the conference theme is provided by a new model (Ofori-Dankwa and Julian, 2001) which sets out to define four levels of complexity(sic), dependent on the system exclusivity (degree of complexity) and endurance (degree of change)
The past ten years have seen a growth of interest in the insights which the proponents of what Rosenhead (1998) terms 'management complexity' claims to provide for modern management. This author has felt uncomfortable that many of these insights are in fact little different from insights of previous writers, and that the lack of evidence for their applicability in natural science systems (discussed by Rosenhead 1998), let alone organizational situations, means that they have little proven value beyond (in some cases powerful) metaphors. The model will be used to identify those cases where the issue relates to complexity (in the sense of the number of variables influencing the situation) and to the rate of change of those variables.
The paper will take a number of the characteristics of complex systems (the phrase will include catastrophic and chaotic systems), and the insights which are claimed for management complexity, and will relate these to other (non complexity) writings, in some cases going back over decades. Thus for instance, the unpredictability of a complex system does not in itself take us further than the idea that long term planning is not a precise process (Mintzberg 1994)
It will use a case study relating to the author's own experience in teaching on MBA programmes to demonstrate the value of complexity ideas, but will evaluate these against alternative insights, again demonstrating the relationships between complexity and change.
It is hoped that the paper will make a contribution to the conference them of managing the tension between simplicity and complexity on the one hand, and stability and change on the other : the author is excited by the insights that management complexity might offer, but has yet to be convinced that they represent a significant practical improvement.
References
Mintzberg,H(1994) The Rise and Fall of Strategic Planning Prentice Hall : Englewood Cliffs NJ
Ofori-Dankwa.J and Julian,S.D. (2001), 'Complexifying Organizational theory: Illustrations using Time Research' Academy of Management Review, 26(3), pp415-430
Rosenhead, J (1998) TITLE LSE OR Working Paper London : London School of Economics

 

2002-021
ISO 9000 VALUE-ADDED AUDITING
Dr Marjan Pivka, University of Maribor, Faculty of Economics and Business, Razlagova 14, 2000 Maribor, Slovenia
E-mail: pivka@uni-mb.si
Researches have shown that the quality assurance with the formal fulfilment of ISO 90001 standard requirements does not help companies to achieve greater competitiveness and business success. The quality system compliance with the standard requirements confirms that the company has achieved such a maturity level that it is capable to define the processes (not necessarily efficiently!) and perform them according to the definitions. This recognition can be generalised for software companies also. The proposed paper will present a discussion on compliance and management value-added auditing with emphasises on ISO 9000 value-added auditing in software. Our researches shows, that that ISO 9000 auditing has long-term economic value-added only if compliance audit is integrated with management audit.

 

2002-022
STUDY ON EVALUATION PATTERN AND METHOD OF VENTURE INVESTMENT
Liu Chuanzhe Jia Yanli, School of management, China University of Mining and Technology, Xuzhou (221008), Jiangsu, China
The paper noted that it is more important to choose an appropriate object to invest than to manage it well. It is a case of the familiar classical philosophy. Because of high risk nature of high tech enterprises, it is necessary to evaluate the potential of kinds of investments in a correct and efficient way, and then to pick out the best project for growth and profit, which indicates the importance of the venture capital evaluation system.
At first, this paper compared and analyzed how to evaluate the venture capital project, then the paper provided a model for use in such evaluation. It noted five criteria for evaluation: the market attraction, the product diversity (or variety), the potential of investment return, management ability and the defense ability to the environment threats.
Then the relative importance of each was considered, market attraction and product diversity (variety) were declared as two key factors in deciding the expected return and the former is more important.
The perceived risk is decided mostly by management ability and defense ability to the environment threats. The influence of the former is more obvious than the latter. Investment return ability gives a positive indication to the expected return and also indicates the extent of the risk. It is these two considerations that give the answer to the question whether to invest or not.
Finally, a system for evaluation was given, including the evaluation procedure and approach.

 

2002-023
MEASURING THE COMPLEXITY OF CURRENCY MARKETS BY FRACTAL DIMENSION ANALYSIS
Abdol S. Soofi and Andreas Galka
Economies, like population biology, and statistical physics, consist of large numbers of individuals that are organized into dynamic, volatile, complex, and adaptive systems that are sensitive to environmental constraints. These systems evolve according to their internal structures generated by the relationships among their individual constituent members.
In studies of complex systems, the dynamical systems theories are particularly useful.
Dynamical systems theories, particularly the theory of time-delay embedding and phase space reconstruction treats a deterministic dynamic process as a one-dimensional composite system. In such a system, successive stages follow each other based on iteration of a certain rule, and which all stages are interacting with each other according to a certain law.
We attempt to use dynamical system theory to measure the complexity of currency markets by estimating the correlation dimension of dollar/pound and yen/dollar daily exchange rates (the spot rates). We test the sensitivity of the results for the exchange rates by comparing them to the correlation dimension estimates for the surrogate data that are essentially stochastic series but have the spectrums and amplitudes of the original series.

 

2002-024
THE DESIGN OF INTELLECTUAL MOVEMENTS
Stuart A. Umpleby, Research Program in Social and Organizational Learning, The George Washington University, Washington, DC 20052 USA, umpleby@gwu.edu
From time to time a small group of people makes an effort to transform society by promoting a set of ideas. Examples include any revolutionary or liberation movement, a new theory within the social sciences, or a new political or social program. This paper argues that in order for such a movement to be successful, both the ideas and the tactics used to promote it must be suited to the society in which the movement occurs. Ideas that are rapidly and widely adopted in one society may have little impact in another society. To be accepted a new message must fit the local culture. Furthermore, the way that ideas are presented and advocated may be quite different in different societies.
In an earlier paper, "Cybernetics of Conceptual Systems," I described and compared two examples - the communitarian social and political movement in the United States and the second order cybernetics movement in the scientific communities in the U.S. and Europe. The communitarian movement was largely designed and promoted by Amitai Etzioni, an Israeli who moved to the U.S. several decades ago and is now a professor of sociology in the U.S. The second order cybernetics movement was largely designed and promoted by Heinz von Foerster, an Austrian who moved to the U.S. in the 1950s and is now a retired professor in the U.S.
Other examples of intellectual movements that I am familiar with are: process improvement methods in the management communities in Japan, the US, Western Europe and the New Independent States (NIS) of the former Soviet Union; and reflexivity theory in the NIS.
I believe it is now possible to draw some general conclusions about intellectual movements, for example, why some succeed while others fail, and what factors need to be considered in order to design a successful movement. One way to structure the conversation might be to look at several influential movements in recent years to see what we can learn from them in order to design successful movements of our own. For example, I am interested in designing a movement to expand the philosophy of science to include more examples from the growth of knowledge in the social sciences. Currently the literature in the philosophy of science uses examples primarily from the physical sciences.

 

2002-025
DEVELOPING AN ECOLOGICAL QUALITY INDEX FOR A RESTORED TEMPERATE ESTUARINE WETLANDS AREA
Mitchel F. Bloom, Gordon A. Robilliard, Ted P. Winfield and Frederick G. Wolf, 104 Clifton Road N., Kelowna, BC, V1V1A1, Canada, mfbloom@shaw.ca
An ecological quality index (Index) was developed which could indicate the degree of estuarine wetlands restoration of a 13 hectare (32 acre) piece of industrial land, cleaned from industrial pollution, level in contour and rather barren in appearance. Using a team of environmental scientists and engineers and systematically eliciting their expert judgments, ten key parameters of an estuarine marsh were defined, weighted and scaled. The Index was then computed and used to project over twenty years the ecological quality of the site as envisioned by the team. In addition to the forecast, the 95% confidence level bandwidth of the Index was projected as well as the effects of various natural disaster scenarios on the Index. Applications of the methodology to other ecological sites are discussed.

 

2002-026
THE INTERACTION AND INTEGRATION OF INNER LIFE SYSTEMS AND OUTER SOCIETAL SYSTEMS FOR EDUCATIONAL TRANSFORMATION: A CHINESE ZEN PERSPECTIVE
Li, Ming-fen, National Taiwan Normal University
In the past decades, systems thinking has been studied from various perspectives, and systems theories are widely applied in different learning contexts. However, educational researchers have been placing too much emphasis on defining outer educational systems and have long ignored the inner systems with which they define and interpret outer systems. It is important to probe ways of bridging the inner and outer systems. According to Mair (1977), we live in and experience an inner society of conversational relationships within ourselves. Coombs and Smith (1998) elaborate on such an inner society and extend it to an outer society comprised of the physical world and other human beings. They frame this as duality of psychological existence, which they believe is a fundamental construct to perceive the inner and outer learning conversation of so-called self-organized learning. However, educational researchers have largely neglected such inner conversation and its interaction with the outer society in past decades.
I contend that we could situate all learners, instructors and designers within the boundless circles of educational systems, learning to cope with the indistinct nature of system boundaries, rather than let these boundaries confine our perspectives of systems. If more educational and instructional designers could delve into their own inner systems, the outer educational and learning systems and environment would be much better designed. In order to realize the transformation of our learning and educational systems, we need to focus on the transformation of both inner and outer systems. We also need to examine the emergence of systems boundaries, and resolve the boundaries among human-made systems rather than classify or categorize the systems as many systems theorists do.
Therefore, in this paper, I will first interpret the essence of and differences between inner systems and outer systems, and the interaction between them. Then, I will explore ways of integrating inner systems and outer systems, and apply them in educational and learning contexts. Most importantly, I will interpret the essence and spirit of inner life systems from the perspectives of Chinese Zen Philosophy, especially the Chinese sixth Zen patriarch's illumination of Zen spirit.

 

2002-027
MANAGING COMPLEXITY FROM WITHIN: AN EASTERN SYSTEMS PERSPECTIVE
Li Ming-fen
National Taiwan Normal University
In reference to Stafford Beer's vision that human beings are imprisoned by their own thinking, Banathy attempts to construct systems models to expand our cognitive power and enhance our ability to deal with complexity. He found that traditional science defines complexity by examining the multiple components within a system, whereas systems science defines complexity by the interaction between the system and its environment, and by the interrelationship between system components. He argues that through synthesis and expansion we can better understand the systems and their relationships to larger systems or environments. Meanwhile, we should shift from anticipating, predicting and controlling the human world to understanding the uncertainty and complexity of the environment.
Senge translates complexity of reality into simplicity of wisdom by identifying and constructing several main systems archetypes. He regards systems archetypes as powerful tools for converting complicated problems into simple communicable language. From Senge's profound systemic views, self and others are inseparable. Therefore, the purpose of applying systems thinking is not to depict the details of the component systems, and relationships among major and minor systems, but is to frame and reframe our own problems by situating ourselves within the systems which we intend to understand and interpret.
However, I think both Banathy's and Senge's approaches are inadequate to manage the complexities and uncertainties embedded in the contemporary society. Because they do not cope with the habitual power of human thinking and action, neither do they deal with the problems resulted from the distorted human interpersonal relationships in the chaotic societies. Therefore, in this paper, I will first clarify the complexity and chaos in outer society and those in inner society, and how complexity and chaos resulted from the two sources interact with each other. Then, I will inquire how the reconstruction of the outer society might be related to the transformation of inner society through the 921 Earthquake Event in Taiwan. While conducting such an inquiry, I will use various cases in the societal reconstruction of 921 Earthquake to illuminate how inner revolution might enhance the outer societal transformation. In the inquiry process, I will also pinpoint how human's inner habitual dynamics might complicate and distort the outer societal order. Finally, I will propose ways of managing the complexity and chaos resulting from both outer and inner societies.

 

2002-028
INTEGRATED MANAGEMENT TECHNOLOGY-SYSTEM APPROACH FOR COMPLICATED SYSTEMS WITH ALXA ENVIRONMENTAL REHABILITATION CASE STUDY
Su Mingshan and He Jiankun, Energy Environment Economy Research Institute, Tsinghua University, Beijing 100084
One of the barriers of the system approach application is that there are no sufficiently clear defined technologies to help the users to apply in the practical exercises. In order to overcome this barrier we have developed the relevant technologies for Integrated Management Approach. These technologies include flow analysis, characteristics analysis and transformation analysis. The flow analysis includes material flow analysis, energy flow analysis, information flow analysis, and value flow analysis. The characteristics analysis included externality analysis, sustainability analysis, and effectiveness analysis. The transformation analysis includes planning, incentive scheme design and information mechanism design. In this paper we explained these technologies. To overcome the challenge of uncertainty in the analysis participatory search approach(PRA) is also applied.
These technologies are also applied to the case study in Alxa Environmental Rehabilitation.
In the case study we applied Integrated Management Approach and applied Integrated Management Technology to get an intervene advice of the complicated management issue. Based on the results in paper of "Integrated Management Approach-System Thinking for Complicated Systems with Alxa Environmental Rehabilitation Case Study" we further analyze different integrated related options for the case: such as energy options, forestry development options, grass development options, environmental improvement options, income enhancement options, community capacity building options, institutional capacity building options, micro-credit options.
The completion of this paper is based on the partly financial support of CNSF grand(no. 79370039), Tsinghua Key Faculty Project and Ausaid ALERP.

 

2002-029
INTEGRATED MANAGEMENT APPROACH-SYSTEM THINKING FOR COMPLICATED SYSTEMS WITH ALXA ENVIRONMENTAL REHABILITATION CASE STUDY
He Jiankun and Su Mingshan, Energy Environment Economy Research Institute, Tsinghua University
Being aware of the requirement of system approach to complicated management issues we have developed Integrated Management(IM) framework which is developed based on the integrated resource management(IRM) framework we built in 1998. This paper firstly reviews the progress of system thinking for complicated management issue and explains the main idea of Integrated Management. Then we illustrate how to apply the Integrated Management for complicated management issue. The case study of Alxa environmental rehabilitation is applied in this paper for illustration.
Alxa League is situated in the western part of Inner Mongolia Autonomous Region, approximately 1100 kilometers west of Beijing, and consists of three administrative banners (equivalent to a county level division): Ejina Banner, Alxa Right Banner and Alxa Left Banner. The League itself is home to 170,000 people. It is an extremely dry area in the northern temperate zone with a total area of 270,000 km2 . Ecological degradation is indicated by long-standing droughts, destruction of grasslands and desertification involving severe sand mobilisation, and it has brought disruption to the society and economy. Approximately 30 per cent of the total area is desert and desertification proceeds along the grassland margins at an estimated rate of 20 metres per year, destroying farmlands and depositing some 70 million cubic metres of sediment annually into the Yellow River. The desertification in the Alxa League has direct and indirect negative effects on the environment and economy of the central northern China plains that is a densely populated and agriculturally important region. Our objective is to intervene the social-ecological systems through sustainable resource use and poverty reduction so as to contribute to an improved environment.
We felt that this is a complicated management issue. It is related to water supply, overgrazing, revegetation, overuse of biomass, limited power supply, limited income and investment resources, limited environmental awareness and environmental education, poor technology diffusion capacity, poor enterprise, non-efficient institution. Therefore, system thinking is applied to this study. Based on our experiences, we developed an integrated management approach for this issue. This paper also gives the result of the application of integrated management approach to the case.
The completion of this paper is based on the partly financial support of CNSF grand(no. 79370039), Tsinghua Key Faculty Project and Ausaid ALERP.

 

2002-031
COMMUNITIES AS COMPLEX SYSTEMS
Robert D Jamieson, School of Psychological Science, La Trobe University, Bendigo, PO Box 199, Bendigo, Australia, r.jamieson@bendigo.latrobe.edu.au
After considering the value of a systems approach to the understanding of locality and relational communities in terms of some of the key concepts in the systems lexicon this paper focuses on Sense of Community (SOC) an emergent property which may be encouraged by the effective operationalisation of systems ideas at the community level.
Where the intention is to develop a community then SOC may be a useful indicator of the progress towards this objective. SOC is a subjective response which reflects a respondents level of connectedness (as opposed to isolation), influence (as opposed to powerlessness), resources (as opposed to impoverishment) and the attractiveness (as opposed to aversiveness) of the community in question.
The results of a longitudinal study of a community development project conducted in a public housing estate in the regional city of Bendigo in Australia are reported. These show a change in SOC in the focal community in comparison with a more privileged part of the city. This change could be attributed to the community development process.
This process is then reconsidered in terms of the key ideas underpinning systems theory.

2002-032
IDEAL-SEEKING VERSUS SENSE-DISCLOSURE FOR DEVELOPMENT: A COMPARISON OF THE GHARAJEDAGHI/ ACKOFF AND DOOYEWEERD CONCEPTS
FP (Petrie) Coetzee, Department of Computer Technology, Technikon Pretoria, Pretoria, South Africa
petrie@techpta.ac.za
Russell Ackoff is a systems thinker who made major contributions to management thinking, both for management of organizations and management of society. His essential academic discipline was philosophy. Together with Fred Emery he devised the notion of ideal-seeking systems (Ackoff and Emery, 1972), according to which life becomes sensible through a process of striving towards attainment of ideals (Ackoff, 1974). Ramshid Gharajedaghi, in collaboration with Ackoff, articulated a concept of development of socio-cultural systems based on the notion of ideal-seeking systems (Gharajedaghi (with Ackoff), 1985, 1986).
Herman Dooyeweerd was a Dutch philosopher who devised a philosophy he called The Philosophy of the Cosmonomic Idea (Dooyeweerd, 1953, 1955, 1957, 1958, 1968, 1979). This philosophy is systemic in the sense that it attempts to provide a comprehensive description of, and a comprehensive prescription for all of reality. His noted concern with management is on the societal level. One of Dooyeweerd's essential notions is that life is about attainment of meaning (or sense) through a process of disclosure of meaning (or sense). Based on this notion of sense-disclosure he builds a concept of socio-cultural development.
In this paper these two concepts of socio-cultural development are compared so as to clarify both commonalities and differences between them. A motivation and a basis for integration of these ideas is noted, as well as the outcome of an effort at integration and which has resulted in the notion of sense-seeking systems as basis for socio-cultural development and innovation.

 

2002-033
ON ZHOUYI SYSTEM AS A COMPLEX SYSTEM: EXPLORATION INTO THE NATURE OF THE COMPLEX SYSTEM AND ITS CREATIVE MANAGEMENT
Chung-ying Cheng, Ph.D (Harvard)
University of Hawaii at Manoa
The purpose of this inceptive paper is to inquire into the structure and meaning of complex system and how we could manage it by way of examination of the Zhouyi symbolic systems of representation of a changing world-life-reality and our creative response to them.
In defining and describing the symbolic gua/yao system of Zhouyi which is here referred to as the GY-System (GYS) with primitive terms G (forms of representation) and Y (forces of change) and a number of organizing principles and structures (to be specified as D, T, C etc) which form a generative unity, one can list several basic features.
If we compare GYS system to the Super-Strings Theory of Cosmology in contemporary physics, we find that there is a certain high correlation or even a close analogy between the two. In this sense we can speak of GYS as representing a cosmic system which has been displayed and described in traditional Zhouyi symbols. The important point is that it is through a dynamic complex system that life and intelligence are not just improvable as a whole system but also realizable as a ceaseless process.
We may also inquire into GYS as a tool and/or object of decision-making, negotiation and conflict resolution. It can be shown that GYS contains an analytic hierarchy process.

 

2002-034
GENERAL MANAGEMENT RELATIVITY
Dr. Norman K. Powell BSc, PhD, CEng, FCMI,
66, Larch Drive, Carlisle, Cumbria CA3 9FL UK
This paper is a reconsideration of previous work, stimulated by the recent concepts of "strings", "membranes", "singularities", "eleven dimensional space-time" as working tools used by Physicists in the analysis of the complexity of the cosmos. Much depends on the use of terminology such as, 'numbers', ' factors', ' variables', 'dimensions'.
Cybernetics is a useful management language for addressing the subject of a viable complex system, which is defined as a mechanism for generating controllable variety; first as an aggregate of bits (multi-variate) and then as an integral of parts (multi-dimensional). Cybernetics is the science of control and one of the fundamental concepts therein is "The Law of Requisite Variety" and another is the concept of "feedback". Both these concepts drove this work forward.

 

2002-035
ARE THERE NATURAL LIMITS TO HOW WELL COMPLEX SYSTEMS CAN BE ADDRESSED?
Henry C. Alberts, Ph. D.
Adjunct Professor, Graduate School of Management and Technology, University of Maryland, University College, College Park, Maryland
A distillation of "lessons learned" in a varied 53-year professional career is consolidated into a "Theorem of Limits" which can be widely applied to complex issues involving systems science. The theorem indicates that three factors impinge on, and limit, the degree to which long term solutions to such issues can be developed. The factors are: 1) The complexity of the issue 2) The time it takes to develop an understanding of the issue and its systemic relationships:3) The processes necessary to propose, structure, and implement activity chains aimed at ameliorating problems.
Case histories illustrate how each of the three factors, acting individually and through interactive effects, creates difficulty in: 1) Conceiving a sufficiently detailed and stable working visualization of the situation (defining the system), 2) seeking out and structuring potential ameliorating actions, 3) combining those actions into a reinforcing activity chain, and 4) implementing the actions in a timely and effective manner.
Examples from government, national and International Industry, and technical disciplines (including information technology and cognitive science) illustrate both the basis for the theorem of limits and the way in which the three factors affect the processes.

 

2002-036
INTELLIGENT ENTITY-ORIENTED CONCEPTUAL MODEL ANALYZING APPROACH
Gu Ping Gong chuan xing Bai Yan Qi
Mechanical Engineering College Shi Jia Zhuang 050003, China
Rising personnel and equipment costs, annual reductions in defense spending, and a dynamic geo-political climate have created a situation requiring military leaders to seek training, operation, weapon system's development and evaluation methods that are more cost effective and efficient in meeting the challenges of the future. As a result, the military has tasked the modeling and simulation (M&S) community to develop simulations that meet this mandate. Requisite to that demand is the need to provide authoritative, consistent and standard representations of complicated system in simulations that are credible and reasonable; providing valid analytical results for designing system.
One effort assisting in meeting this need is Conceptual Modeling of Complicated System (CMCS). The conceptual model is a link between complicated system and simulation system, the introduction of conceptual model is intended to solve the communication difficulties between simulation engineers and military personnel in the phrase of user requirement analysis(war system).for this purpose, this paper analyzes the similarity between the operational system and conceptual model, the results are shown the figure in the following. The intelligent oriented conceptual model analysis method is put forward, which includes six activities: mission identification, entity identification, structure identification, state identification, behavior identification ,and interaction identification.
Most users find CMCS appealing because of its simplicity and systematic approach and because the methodology commences with the original intent of the simulation, the user's requirements. Furthermore, CMCS has a reuse capability and is easily understood and implemented by users of two domains(military personnel and simulation engineers).

 

2002-037
A NEW COMMUNICATION SYSTEM BASED ON MOBILE AGENT IN DIS
Chen Chang Yi Gong chuan xing Wang Ji Xing, Mechanical Engineering College Shi Jia Zhuang 050003,China
As a combination of simulation technology and computer network technology, distributed interactive simulations (DIS) make it possible for interoperating between homogeneous or heterogeneous simulator in a common time-space consistent environment. It has been widely applied in various social areas due to its merits of high efficiency, flexibility, safety and so on. With the development of DIS, there are more and more simulation entities in a large-scale DIS system and lead to the communication between entities increase dramatically. A new communication mechanism must be constructed in order to release the pressure on resources caused by communication growth.
In the communication system there are three kinds of element: mobile agent, simulation entity and RTI (run time infrastructure). Mobile agent is an intelligent element because it has capability of apperception analysis and judgement. It can find the information in which the simulation entities are interesting automatically and send the information to them. RTI is a general distributed platform, which supports transparent interoperating between simulation entities. All simulation entity and mobile agent are managed by RTI, so we can look it as the core of communication system. The relations between three kinds element are also studied with the theory of system engineering in this paper.
After analyzing the communication system in detail, this paper constructed a communication mechanism. A simulation entity apply RTI for registering a mobile agent at first, after RTI admitting, simulation entity can send a mobile agent to remote network. These agents represent one entity within the simulation, which are allowed to migrate to another location in the network where an interaction with their entities is needed. Each mobile agent need to build up a entity interesting list and then the agents discover the simulation entity in the remote location one by one. If the agent found the useful information, it will report to RTI. RTI decided to control the membership of multi-cast transmission sets needed to perform the actual communication between entities, or set up individual point-to-point links between entities. This communication mechanism is intended to alleviate some of the structure problems which have become apparent as distributed simulations have been extended in their scale and scope. These problems include:
?The difficulty of adequately monitoring and controlling entities running at remote location;
?The inflexibility introduced by apparent need to standardize all of the communications protocols used between the various components of a distributed simulation;
The poor scaling characteristics of the communications load between entities when the simulation relies on global broadcasting for exchange of information;
At the same time the information flow is described and the communication mechanism architectures are given. Artificial intelligence and inductive programming technologies are introduced to demonstrating the ability to monitor the internal information of a variety of remote simulation entity. At last a conclusion is gained:
The communication system is a big complicated system and some unit in the system are intelligent.
The new communication mechanism based on agent technology is a very effective means to resolve the problem that arose in big-scale distributed simulation system.

 

2002-038
SYSTEM STRUCTURAL ANALYSIS BASIS OF RECONSTRUCTABILITY ANALYSIS AND APPLICATIONS
Professor Guangfu Shu
Institute of Systems Science, Academy of Mathematics and Systems Sciences, Chinese Academy of Sciences, Zhongguancun, Beijing 100080, China.
The paper firstly briefly reviewed the foundations of structural analyis and NP problem treatment of reconstructability analysis. Its forerunner Ross Ashby, used constraint analysis; its founder G. J. Klir used binary graph relations and levelled system aggregate states; B. Jones used a sequential of main substates to get unbiased reconstruction hypotheses.
The author of this paper introduced reconstructability analysis with logical relations, which further used the information and knowledge of system structures. In recent years by introducing mixed variables reflected the system philosophical idea on structural changes from quantitative change to qualitative change.
Metasynthetic reconstruction analysis comprehends the information and knowledge from data, structural changes, qualitative and quantitative rules and experiences to get a comprehensive quantitative result-- the behavior function closeness of metasynthetic system reconstruction analysis to implement qualitative to quantitative metasynthesis.
The paper also introduced some ideas of how to deal the complexity arisen by macro-economic system, which is an open giant complex system. It gave some attempts on how to work on problems with very large and very complex structured systems which are almost impossible to be dealt by usual routes, or sometimes might be called "dealing unstructurable problems by structural methods".
* supported by NSF of China 79990580

 

2002-039
SYSTEM STRUCTURAL ANALYSIS BASIS OF RECONSTRUCTABILITY ANALYSIS AND APPLICATIONS
Professor Guangfu Shu, Institute of Systems Science, Academy of Mathematics and Systems Sciences, Chinese Academy of Sciences, Zhongguancun, Beijing 100080, China.
The paper first expounded the difference of on line model disscussion and the generalized concept of modelling. The general concept of modelling include the clarifying of the problem, the accumulation of the related knowledge, which for experts may include studying and experience of several months or even 10-20 years, the collecting and organization of data and other information, investigation and systems thinking. On line discussion means experts have already had all those data and relations clear and mainly discuss, modifies the models and compares different ideas and models which are prepared and ready for discussion. And experts mean the elementary and commonly recognized parts are already very familiar and can be dealt very freely by them.
The second part expounded the meaningness and importance of on line model discussion and data knowledge treatment. It is one of the important breakthroughs needed for leaping out of the classical qualitative discussion and voting, which was practised since ancient times and qualitative discussion (or so called conceptual design in engineering design), quantitative model approving for each proposal, and voting, which was practised by most of the system analysis, system engineering, DELPHI method, RAND cooporation etc. In man-machine combined metasynthetic decision support we should have some more advanced comprehending and integration methods for information and knowledge.
The third part introduce one of the methods to implement such a task--- the metasynthetic reconstructability analysis method and its process and interfaces which can integrate and comprehend data and qualitative information, knowledge on relation structures, developing tendencies, logical relations between factor and criterion levels, quantitative relations such as mathematical constraints and equations etc. qualitative and quantitative knowledge, and experts qualitative or quantitative scenarios.
This method and its series computer software will provide a tool for experts to do some of the on line model discussion and data knowledge processing in the metasynthetic discussion hall. But it should have a quite rich database and knowledge base combined with it.
In smaller scale it can also be a support system for personal model, data knowledge processing and decision making.
* supported by NSF of China 79990580

 

2002-040
STABILITY AND CHANGE IN CHINA: MOVEMENT TOWARDS A FREE MARKET ECONOMY
Gary S. Metcalf, Ph.D., President, InterConnections, LLC, Associate Director, Business Programs - United States Open University, 1212 Bath Ave.; 6th Floor, Suite 4, Ashland, KY 41102; U.S.A.
gmetcalf@ezwv.com
(Corresponding Author)
Fengquan An, Ph.D., Associate Professor, China Petrochemical Consulting Corporation
No. 24 Xiaoguan Anwai Ave., Chaoyang District, Beijing, China; P.C.: 100029
anfq@cpccc.sinopec.com.cn
China currently faces many "crises of transition" as it seeks to more directly join the world economic systems. While there is a desire to bring economic prosperity to China, there seems to be an equally strong compulsion not to destabilize current systems which provide security.
In order for China to create and maintain a free market economy, it must allow adequate legal and political systems to evolve. A free market system which can attract the necessary investment of capital cannot survive without them. China's entry into the World Trade Organization will only increase the pressure for changes, even as it offers opportunities for growth.
The framework to be used in this paper for analyzing the current situation within China, and in its relation to other countries, is based on research by Dr. Clare W. Graves. Dr. Graves' work was later developed into a system of understanding both organizations and cultures, known as Spiral Dynamics (Beck & Cowan, 1996), which might best be understood as a system of "deep attractors" and describes a hierarchy that encompasses existing worldviews. Using this framework, many of the fundamental challenges facing China will be explained from a system perspective.
Examples demonstrating how change has, and might further, affect specific organizations are provided, including those from SINOPEC Corporation, CNOOC limited and PetroChina Company Limited.

 

2002-041
THE DETERMINANTS OF EXECUTIVE COMPENSATION: EVIDENCE FROM CHINA LISTED COMPANIES
Zhang Zhangtang, Tao Xueyu
School of Management, China University of Mining and Technology, Xuzhou, Jiangsu, P.R.China, 221008
Agency theory argues that companies need to structure their executive compensation so as to attract, retain, motivate, and reward executives. It is implicit in agency theory that executive should be rewarded for his performance and that company size should not be a significant determinant of compensation. Empirical evidence in many countries has concluded, however, that size is a major determinant of executive remuneration and the pay-for-performance link is very weak. Most empirical research has adopted a limited theoretical perspective that draws upon one discipline rather than building upon a broad base of disciplines. We argue that this research has generally been limited because it ignores other criteria that can be used to determine executive pay.
Our analysis leads to a general framework for exploring the impact of behavioral, economic, and strategic constructs and the role of industry on executive compensation. This study examines the determinants of executives' compensation in China Listed companies by using recent available data. In this paper, we use SEM (structural equation model) to explore the relationship between executive compensation and other independent variables identified in the general framework. SEM is used to capture the relationship between unobservable (latent) variables like board control and their observable counterparts (indicator variables) like duality and executive stock ownership.
This study extends our understanding of executive pay in several ways. Most studies have been concerned with the pay of North American executives and UK directors. This study looks at pay in China, a country with a rather different form of corporate governance than that found in the US, the UK and other "Anglo-Saxon" counties. Finally, our work is based on multidisciplinary, with insights from agency theory complemented by insights form human capital theory, strategic management, behavioral theory, institutional theory and so on.

 

2002-042
THE DEVELOPMENT OF SYSTEMS APPROACHES IN EDUCATION FOR MANAGING COMPLEX SYSTEMS
Alexander D. Gorobets, Department of Management and Economics and Mathematical Methods, Sevastopol National Technical University, str.Sherbaka 5-15, Sevastopol 99011, Ukraine E-mail: alex-gorobets@mail.ru
Education of complex systems concepts is of the paramount importance for the transforming of present educational system in the condition of society evolution at a new, information stage. We need to develop the new, unified approaches and concepts in education which help people to understand most of complex processes in the world from a systems view and react the right way to changing environment in the context of learning. Some of such approaches as studying of fundamental disciplines and analytic tools which can be applied to all complex systems are used in New Independent States (former Soviet Union). We have to explore and expand fundamental issues on the structure, evolution and dynamics that apply to all complex systems. In 21st century the most powerful tool for analyzing complex systems is a computer so simulation techniques and agent based modeling will assist to the modern study of complex systems. The education institute is a key factor for solving up-to-date problems in the all spheres of our life: social, ecological, economical, e.c. Thus we ought to include systems design as an essential part of our professional destiny.

 

2002-043
ENTERPRISE NETWORKS: A SYSTEMATIC KNOWLEDGE-GENERATING EXTENDED ENTERPRISE
Mu Jifeng School of Management & School of Economics and Finance, Xi'an Jiaotong University, Xi'an, China, 710049
Xu Heping School of Management, Xi'an Jiaotong University, Xi'an, China, 710049
Much has been written on the nature of and the knowledge innovation of firms. Examples originates from Coase, and his inherits like Williasom, Alchian, Demsets, Leland, Jesen, Meklin, Chiang, Qian Yinyi, etc. who extends Coase's idea into transaction economics, and other branches of theory like principal-agent theory, etc. the economists like Winter, Nelson, Arrow, Kirzna, Casson, Berle, Means, Roberts, Milgrom, Kreps, Rosen, etc. and the knowledge creation like that of Schumpeter's and Chandler's, etc. In this paper, I firstly discuss the art of the enterprise network; presents a definition of enterprise network, then I mainly make discussions on the benefits from enterprise networks, makes some comparative analysis of the nature of firm between Coase's origin and that of knowledge-based of the firms, transaction cost economics, resource-based, networks and the nature of firm, proposing that firm is creation of knowledge also a knowledge-preserving entity, argues that in dynamically environment, the importance of enterprise network and the nature of enterprise network and firms as a systematic knowledge-generating extended enterprise from an integrated perspective of sociology, economics, and management framework, and the following part of the text I mainly argued why enterprise network is a systematic knowledge-generating extended enterprise, I think that it is novel; the last part I draw some conclusions and presents some ideas on how to manage knowledge generated in the networks.

 

2002-044
THE STRATEGIC VALUE OF TRUST IN KNOWLEDGE-BASED NETWORKING FIRMS
Mu Jifeng, School of Management & School of Economics and Finance, Xi'an Jiaotong University, Xi'an, 710049, China
Chen Fangli, Institute of STS, Xi'an Jiaotong University, Xi'an, 710049, China
Trust plays a crucial role in modern knowledge-based economy. In this paper, the authors present an economic definition for trust, argue that trust is based on personal relations, an abstract social institutions and important incentive mechanism, and discusses the strategic role of trust in networking firms. The authors argue that actually there are three fundamental bases of different forms of governance forms, ie. market, hierarchy and trust. In certain context, the three bases mare rarely completely distinct from each other, they are overlapping, embedded, intertwined, juxtaposed and nested they are symbiotic, but others, trust will be contradictory to hierarchy and market, that is, trust can be an important governance form independent of hierarchy and market. Also, the authors analyze the value of trust in knowledge-based networking organizations, argues that trust essentially is an important governance mechanism in knowledge-based networking firms.

 

2002-045
THE FIVE ELEMENTS THEORY IN BUSINESS RESEARCH
Kuang-cheng Wang, Doctoral Program, Graduate Institute of Business Administration, National Taipei University, Taipei, Taiwan, R.O.C.
E-mail: kcwang@ttu.edu.tw
The purpose of this article is to apply the Chinese systems thinking, the five elements theory, to business research. The five elements theory is a cornerstone of Chinese culture. The Chinese believe that all phenomena can be categorized into five elements: Wood, Fire, Earth, Metal, and Water. How things are characterized depends on their respective qualities. This author attempts to demonstrate that the five elements theory can be applied to manage the complexity in business problems. First, a clear description is given to explore the nature and explain the principles of the five elements theory. Second, the similarities between the five elements theory and the Western concept of systems thinking are compared and discussed. In addition, the conceptual framework approach in the traditional business research, the framework of causal relationship comprised of independent, intervening, moderating, and dependent variables, will be shown to be incapable of expressing and handling the complex business realities. Finally, this article tries to classify the various variables in business researches in terms of the five elements. Three propositional examples are provided to clarify the confusion when applying this theory to complex business problems.

 

2002-046
EDUCATIONAL TECHNOLOGY AND SYSTEMS SCIENCE: LOOKING BACK AND LOOKING AHEAD
In-Sook Lee, Department of Education, Sejong University, 98 Kunja-dong, Kwangjin-ku, Seoul 143-747 Korea
The contribution of systems science is of critical importance as a foundational paradigm and theory, which has extensive influence on the growth of theories and practices of educational technology. Unlike systems science that evolves and develops through convergence and divergence, educational technology does not reflect on these changes even though it is based on systems science. This paper reviews the main concepts and theories of systems science as the basis theory of educational technology and explores new methods for the paradigm and methodology of systems science to support educational technology by analyzing and linking educational technology and systems science. One of the major findings of systems science is that educational technology has a variety of educational situations and systems, and each system is unique. In a nutshell, one alternative direction that educational technology suggests based on this finding is that, although it has provided solutions to resolve current problems, it should develop to the point where it is able to construct preventative measures in the future.

 

2002-047
KNOWLEDGE BY NO-ACTION: A SYSTEMS INTERPRETATION OF CHUANG TZU'S THOUGHT
Tetsunori Koizumi, Faculty of Intercultural Communication, Ryukoku University, Otsu-shi, Shiga 520-2194
Japan, Email: koizumi@world.ryukoku.ac.jp
Of all the Eastern thinkers, Chuang Tzu probably went furthest in denying the role of rational inquiry in knowledge acquisition. Why is Chuang Tzu opposed to rational inquiry? What is the basis of his rejection of rational inquiry? If rational inquiry is not the answer, how are we to go about acquiring knowledge of the world around us? The paper examines these questions by rephrasing Chuang Tzu's ideas in the language of systems sciences.
We interpret Chuang Tzu's inquiry as an effort to make linkages between the two worlds-the latent world, or the world of the transcendent Tao, and the manifest world, or the world of the immanent Tao. Chuang Tzu's system of thought can then be summarily represented by three postulates-"coherence", "correspondence" and "complementarity" - about the nature of the relationship between the latent and the manifest world. The postulate of "coherence" expresses the idea that the universe is a coherent whole as all things in it are basically the same in their essence in the latent world, which is the Tao. The postulate of "correspondence" expresses the idea that all things in the manifest world are also ruled by the same essence that rules the latent world because of correspondence between the transcendent and the immanent Tao. The postulate of "complementarity" expresses the idea that things in the manifest world cannot exist as distinct and separate entities as the existence of some entity presupposes the existence of its complement.
The three postulates together imply that things in the manifest world are, in essence, non-divisible and non-separable. If things appear to be distinct and separate, it is because we impose our own rationally conceived distinctions on them. To comprehend the universe in its basic oneness, as a coherent whole, it becomes necessary to reject these distinctions that underlie our rational inquiry. What are we to do, then? Not surprisingly, Chuang Tzu's suggestion comes down to the Taoist maxim of wu-wei, namely, no-action. After examining similarities between Chuang Tzu's thought and other traditions in Eastern thought such as Hinduism and Buddhism, the paper concludes by pointing out the relevance of Chuang Tzu's thought for our effort to deal with complexity and change in today's world.

 

2002-048
STUDY ON THE COMPLEXITY OF ORGANIZATIONAL INNOVATION AND ITS MECHANISM
Cao Qingren*, Song Xuefeng, Institute of Economical and Management Complexity, Management School, China University of Mining and Technology, Xuzhou, Jiangsu, P.R. China, 221008
*Caoqr-cumt@163.com
Along with the function of knowledge and technique increases, scientists, engineers and managers have increasingly focused on innovation. Innovation is a powerful weapon in competing with other business enterprises, and pushes the society forward endlessly. However, what's the innovation? What's condition under which innovation is facilitated? In the past four decades, many scientists have put continued effort to understand these questions. In 1975, Melanie Klein developed a theory of the development underlay later adult behavior, explaining how creative behavior comes about and what role it plays in the human psyche; In 1965, Donald Winnicott regarded creative behavior occurred in a transitional space between the real world outside the mind and inner fantasy world. Many scientists in Santa Fe Institute founded in 1984 regarded innovation as a result of interacting of a number of components, or agents according to sets of rules that require them to examine and respond to each other' s behavior so as to improve their behavior and thus behavior of the system which they comprises. After having analyzed current research in organizational innovation Fariborz Damanpour developed a theory of organizational complexity and innovation exploring both the innovation process and the conditions under which innovation is facilitated in 1996. Many papers and reports introduced experimental programs that utilize knowledge of the creativity process to enhance innovation were conducted at enterprises, like as Leonard Berkowitz in 1996, Tekla S. Perry in 1995, Kenneth S. Corts in 2000. this study intends to exploring the Innate characters of organizational innovation and its mechanism. Firstly, the definition of innovation will be defined after studying different innovations of different levels. Secondly, the explanation of organizational innovation behavior based on system thinking will be explored in detail. The complexity of organizational innovation and the conditions stirring up more innovation will be studied immediately after. The signification of organizational innovation on both foundational and applied will be investigated in the end.

 

2002-049
REENGINEERING THE PARADOX OF ORGANISATIONAL DEVELOPMENT: MODERNISM AND POSTSTRUCTURALISTS THOUGHTS
Jae Eon Yu, Lincoln School of Management, Lincoln University Campus, Brayford Pool, Lincoln LN6 7TS UK
E-mail: 9070yu@hanmail.net
What is the development for organisations today? Poststructuralists or postmodernists see the nature of organisations as the 'pure becoming' that emerges through the collectiveness of individuals and local contexts. On the other hand, Modernists see the nature of organisations as the product of 'social engineering' that focuses on the way the deterministic nature of organisations are represented and interpreted. Today when a researcher asks himself or herself a question concerning the global development of organisations or social systems, he/she meets the paradox of development for social systems, which can exist between Modernism and Postmodernism or Poststructuralists thoughts. It is true that our organisational contents and systemic frameworks have been built based upon the Modernist's principles and beliefs, thus modernistic methods and 'systems approaches' are taken for granted when a researcher conducts his/her research in organisations. It is also true that the symptoms of 'illness' or the sources of the 'problem' in the social systems and organisations cannot successfully deal with by the traditional approaches that are based upon the Modernist's tenets. What is important for the development of organisations and its related knowledge construction is not so much on what is true and false of 'scientific knowledge' being appreciated, as it is on our thought and research to what the 'narrative knowledge' produces in particular, local contexts. How do we know social systems and modern organisations will continually develop from the epidemic trends of 'globalisation' spread out over our present time and even in the unforeseeable future? These issues will be some key challenges for leading edge research today.

 

2002-050
OPTIMALITY CONDITION FOR A CLASS OF THE TWO-LEVEL DECISION SYSTEM WITH MULTI-OBJECTIVES
Teng Chunxian Chen Dongyan, Harbin University Science and Technology Harbin 150080)
In this paper, we discuss the two-level decision system with multi-objectives, that the upper-level set-value objective functions are defined by the forward surfaces of the partial-optimal solutions for the lower-level problems of optimization. Applying the concept and the properties of Clarke tangent derivative for the set-value map, and assuming that the supper-level objective functions are differentiable, the first-order necessary condition of the optimal solutions for this two-level decision system with multi- objectives was given. The obtained necessary condition is formed by the gradients of the upper-level set-value objective functions and Clarke tangent derivatives of the forward surfaces for the lower-level problems of optimization.

 

2002-051
BILEVEL DUALITY PROGRAMMING FOR A CLASS OF BILEVEL CONVEX PROGRAMMING
Chunxian Teng Dongyan Chen (Harbin University of Science and Technology Harbin 150080)
We consider the duality programming problem for a class of bilevel convex programming with extremal-value function, that is the upper-level objective function is defined by the optimal value of the objective functions for the lower-level subsystems. Under some assumptions that the organization functions are convex and continuously differentiable, we established the Lagrange bilevel duality programming model and proved the basic duality theorems for the bilevel convex programming.

 

2002-052
TAMING DYNAMICAL COMPLEXITY AND HIGH-TECHNOLOGY MANAGEMENT
Jin-Qing FANG , Guanrong CHEN
1. China Institute of Atomic Energy, P. O. Box 275-27, Beijing 102413, P. R. China
2. Department of Electronic Engineering, City University of Hong Kong, P. R. China
Variability is one of the most important features of complexity in complex networks and complex systems because of its extreme sensitivity to tiny perturbations. Various possible competing behaviors within a complex system provide great flexibility in taming/controlling dynamical complexity, leading to desirable management and selection of beneficial behaviors for intended applications. In many high-tech fields, how to control and manage complexity is a very important, significant, and yet challenging issue.
As a typical example, recently the accelerator driven clean nuclear power system (ADS) is one of the most focusing issue in nuclear-energy physics in China, due to the crucial problem of energy resource prerequisite for realizing strategic objectives of the national economic development. ADS can overcome the shortages regarding the current nuclear-power technology and become an innovative technological option for a persistent development of nuclear energy in China in the 21st century, toward the goal of achieving safer, cleaner, cheaper, and more reliable nuclear-power systems. The ADS consists of an intensive beam proton accelerator, a target, and a sub-critical reactor. There are three levels or aspects for controlling the complexity of ADS, namely, from the viewpoints of science, engineering-technology, and manage-ment. In this high-tech field, what is urgently needed to be resolved includes not only a better understanding of the complex halo-chaos formation mechanism but also a better methodology for their control and suppression. These have become key issues in the technology development confronted with us today. This consideration has also become our motivation and focal point in writing this article.
Some general engineering methods for taming chaos-complexity have been developed since 1990', but they generally are unsuccessful for suppressing the complex spatiotemporal halo-chaos in ADS. To resolve the difficulty, we have proposed some advanced strategies and methods suitable for taming ADS complexity, such as halo-chaos. These include nonlinear control, wavelet-based feedback control, switching manifold control, and sliding mode control methods. This article will introduce these successful control strategies and methodologies, with convincing simulation examples. Some potential applications of these control methods for taming halo-chaos complexity will be also discussed in this article.

 

2002-053
THE ORIENTATION AND DEVELOPMENT DIRECTION OF CHINESE COAL INDUSTRY*
WANG Zhensheng LV Tao,School of Management, China University of Mining and Technology, Jiangsu, Xuzhou 221008, China
As a basic branch of energy industry in china; coal industry ever brought into play to national economy. With the development of market economy and economy reform, the coal industry is in hot water because of the characteristics of resource industry. Because of the request for sustaining development, the change in value concept, and the cognitive warp to energy branch, some people cannot really realize coal industry; the declining of some mining areas is regarded as the declining of whole coal industry. On the basis of these facts, the article indicates that china still needs coal through the analysis of the substitute energy and the market competition power of coal, and puts forward the strategy and development direction of coal industry of China.

 

2002-054
MULTISCALE BEHAVIOUR OF VOLATILITY IN SHANGHAI'S STOCK MARKET*
Hu Xueming, Song Xuefeng, Wang Xinyu and Cao Qingren, Economical & Managerial Complexity Institute , School of Management, China University of Mining and Technology, Xuzhou, Jiangsu, 221008,P.R.China.
In this paper we consider the daily returns of the Shanghai Stock Exchange Composite Index (SSECI) from December 1990 to January 2002 .Our numerical analysis shows that absolute returns display positive power-laws correlation over short horizons and autocorrelation vanishes over long horizons, by shuffling the order of the daily returns, destroying the correlation of absolute returns over short-range. Nevertheless the power-law behavior cannot be inferred by simply considering autocorrelations. In order to have a sharper evidence for the nature of the long memory phenomenon, we perform a scaling analysis on the variance of a new class of observable, the generalized cumulative absolute returns. This analysis clearly shows that volatility correlations are power-laws on a time range from one day to fifteen months, more important, that the exponent is not unique, and they exhibit a multiscale behaviour.
*Supported by NSFC (No.79970115)

 

2002-055
WHAT MAKES INFORMATION SYSTEMS COMPLEX IN THE EYES OF SYSTEMS ANALYSTS?
Alexander Backlund, University of Skövde, Department of Computer Science, Box 408, SE-541 28 Skövde
Sweden alexander@ida.his.se
Every information system must have a certain degree of complexity in order to be able to perform its functions. However, a complex system is more difficult to understand, analyse, and change than a simpler one. Thus, it is desirable to create information systems that are not more complex than necessary, and methods to reduce such complexity are needed. To be able to attack problems of this kind one must, however, reach an understanding of the nature of complexity in information systems. The complexity of something can be seen as the perceived cognitive effort that is required to understand it and cope with it. It is a subjective or, at best, intersubjective property. The existing characterisations of complex systems need to be corroborated, their relevance needs to be confirmed, they need to be made less unspecific, and they should also, if possible and necessary, be complemented. As complexity is considered to be a subjective property, making the work of analysing and changing an information system more difficult, it seems reasonable to ask the following question: What qualities of an information system makes it seem complex to systems analysts, in their eyes? This is interesting not only because of their experience of information systems and expertise in that area but also because they deal with the problem of analysing and changing information systems in their work, which such knowledge might contribute to facilitate. Also, given the subjective nature of complexity, making interviews with systems analysts is a rather natural choice of method, and such a survey will be made.
In this work, the reasons for asking this question and making interviews such as those mentioned above are elaborated and the method is discussed, as well as the preliminary results of the interviews. The basic approach is to interview systems analysts, ask them questions about how they perform their work, and then direct the interview on to the matter of what they think makes information systems seem complex to them. The answers are then compared and common themes are extracted.
(Here, the term information system is not used in the sense of data processing computer system, but in the sense used by Börje Langefors. An information system always includes humans.)

 

2002-056
CHANGE IN THE HIGHER EDUCATION SYSTEM (UK): A LECTURERS' PERSPECTIVE.
Bakehouse,G.J., School of Information Systems, CEMS Faculty, The University of the West of England, Frenchay Campus., Frenchay, Bristol BS16 1QY U.K.
E-mail: George.Bakehouse@uwe.ac.uk
This paper discusses the changes that have occurred both within and upon the UK's Higher Education (HE) system during the last decade. The theoretical underpinning for the discussion draws upon Schon's notion of dynamic conservatism. The lecturers' perspective has been developed via a case-study approach. The case studies involved lecturer's who have developed innovative practices in their mode of delivering standard modules with the Information Systems discipline. The data collection method employed in the study was primarily that of extended qualitative interviewing supported with quantitative evidence where appropriate. Analyses of the cases are discussed and conclusions drawn identifying the impact of change from a lecturers' perspective. Evidence gathered in this investigation suggests that individual lecturers believe they have to be innovative in order to stand still, that is to maintain the standards and maintain their personal values and beliefs within the aims and objectives of an ever-changing social system in which they participate.

 

2002-057
THE THREE C'S: COMMITMENT, COORDINATION AND COMMUNICATION: THEIR ROLE IN DEVELOPING AND IMPLEPLEMENTING INFORMATION SYSTEMS
Bakehouse, G.J, Doyle, K.G, Waters, S.J.
School of Information Systems, CEMS Faculty, The University of the West of England, Frenchay Campus.
Frenchay, Bristol BS16 1QY U.K.
E-mail: George.Bakehouse@uwe.ac.uk
Kevin.Doyle@uwe.ac.uk
This paper will discuss the relevance of the three C's: commitment, coordination and communication when developing and implementing information systems. Empirical research and experience suggest that at least these three conditions are necessary to implement IS successfully. The paper is not attempting to imply that the successful application of the three C's alone will guarantee a successful project. It does, however, conclude that unsuccessful application of the 3 C's may add to the likelihood of project failure. Information system projects can fail for many reasons. Hirschheim, for example, distilled approximately one hundred references into a taxonomy of information systems failures which is essentially a PEST analysis covering Political, Economic, Social and Technological factors.
The paper will discuss the individual elements of the C's trio drawing on examples from a longitudinal cross sectoral empirical investigation conducted by the authors. This ongoing research project includes extended research in the financial, construction, transport, manufacturing and health sectors. Findings suggest that the rather cynical framework given below, of describing the systems life cycle and its effects, still remain significant.
1. Feasibility Study =Wild Enthusiasm
2. Analysis=Disillusionment
3. Design =Total Confusion
4. Implementation=Search for the Guilty
5. Installation=Punish the Innocents
6. Operation=Promote the Non-Participants

 

2002-058
MODELLING THE COMPLEXITY OF CONCEPT DYNAMICS
David Al-Dabass, Dept of Computing and Mathematics, The Nottingham Trent University, Nottingham, NG1 4BU, UK
Email: david.al-dabass@ntu.ac.uk
The notion of concept dynamics is put forward as an aid to categorise a set of concepts according to some behaviour criteria. A set of concepts will change with time under the influence of inputs, - for intelligent entities these inputs may be termed 'senses'. Concepts will manifest their presence through sequences of 'actions' upon their environment. Not all of the concepts are directly measurable from their action sequences, and give rise to the 'observability' condition. Furthermore, senses have only limited ability to change concepts, which in turn, lead to the 'controllability' condition. The behaviour pattern of concepts can be categorised by a set of parameters as well as by senses. Thus suitable parameter estimation algorithms are needed to achieve categorisation.
CONCEPT DYNAMICS: Concepts may be modelled as mathematical variables, continuous or discrete. A single concept may be represented by a scalar or a vector variable depending on the level of abstraction being considered. Concepts vary in time in response to input and can be seen to have dynamics.
Concepts possess inertia: it takes a finite time duration to change a concept value and thus it can be said to have inertia. A concept subjected to an input will not acquire its new value immediately but evolve gradually. Three patterns of behaviour may result: i) the concept will reach its new value without overshooting it, or ii) it will overshoot initially and then undershoot and overshoot several times before eventually reaching it new value, or iii) the overshoot and undershoot become more divergent and the concept never reaches its intended new value.
Concepts exhibit oscillatory behaviour: this is an extension to the notion of 'inertia',- a concept may embody within its semantics structure multiple 'energy storage facilities' that, under the right conditions, such as low damping, can operate sufficiently out of phase to cause semantic energy to flow back and forth in a similar way that a liquid flows between two interconnected reservoirs.
Concept Vector: Let X be an n-vector of variables that represent the concept. For the Senses Vector: Let U be an r-vector of variables that represent all inputs to the 'concept system'; for an intelligent entity (silicon or carbon/biological) these input variables include: sight, hearing, touch and smell as well as deeper level messages modulated upon them. For the Senses Matrix: Let the r-vector U influence the Concept rate of change by a time varying n x r matrix C(t). For the Actions Vector: Let Z be an m-vector of variables that results in mapping the concepts onto the environment space. No distinction is made here between real physical space and virtual space within a suitable domain (such as software, seen as silicon-based 'mind', or conventional minds as in carbon-biological systems) inhabited by the entity generating the concepts and at least one 'other' entity monitoring it. Fgor the Action Matrix: Let H(t) be an m x n matrix that maps the Concepts n-vector X onto the Actions m-vector Z.
OBSERVABILITY AND CONTROLLABILITY: There are two fundamental ideas involved in modelling the dynamical behaviour of concepts which are related to the way concepts are changed by input from senses on the one hand and the way they influence actions taken by the entity possessing them on the other. 1) Under what conditions can concepts be estimated from measurements of actions. 2) Under what conditions can concepts be influenced by input received through the senses.
PARAMETER ESTIMATION FOR CONCEPT CATEGORISATION: Concepts dynamics are defined by differential equations and the matrices F, C and H. The numerical values of these matrices determine the behaviour pattern of the concepts. Conversely, monitoring the actions generated by concepts should enable us to determine not only the values of the concepts but the exact values of the parameters that determine the nature of their behaviour.
RESULTS, DISCUSSION and CONCLUSIONS: The paper presents results of simulations and gives conclusions and further research topics.

 

2002-059
POSITIVE FEEDBACK LOOPS, PRINCIPLES OF PERMACULTURE AND TRACKING APPLIED TO LEADERSHIP AND CHANGE IN A COMPLEX SOCIAL ENVIRONMENT
Silva, Flavio, M.A.
mesquita@ceb.com.br
All animals, but human beings love visiting the 'transition zone', which is a place where distinct environments meet (i.e. prairie and forest, water and sand, etc.) These zones, known in permaculture as edges, are consisted of varied ecology and are abundant in resources. In other words, diversity is an integral part of nature, and as such, animals naturally accept and seek for it. The metaphor for humans is that, as natural beings, they can be affected in a way that they may re-discover (or uncover) how to operate in a diverse social environment as well.
The experience took place within the sole distributor of electric power in the cosmopolitan area of Brasilia, Brazil, the Companhia Energetica de Brasilia. As a consultant with the high direction of the company for the issues related to organizational development, I was first assigned to design the strategic planning of the company for the year 2002.
Most employees, however, were busy trying to understand the new organizational architecture, which had been previously designed by another group of consultants. There was a lack of certainty in terms of what would happen to the 'good old niches', held mostly by well-educated engineers, who were immersed in a well-defined hierarchical structure. There was a culture of doers with stiff postures, who followed specific rules to accomplish specific tasks. Besides, the new architecture was process-oriented while the former was goal-oriented.
The major obstacle was that there was no way to work on a strategic planning without aligning it to the company's new design. And the major initial challenge was to become the leader of a process, which I had been only partially assigned to lead.
The overcoming of this challenge required a paradigm shift of major degree. Principles of positive feedback loops and the foundation of tracking (people, in this case) and permaculture were utilized to design practices that brought people together to deal with the issue of cultural change in a complex environment.
The intention was to create a big picture for all the partakers, a single window of opportunities through which people with their multi-leveled perspectives and nuances could experience change. The key insight was to observe people's behaviors, including their avoidances, and map them, as it is done in the tracking tradition. As a result, two distinct patterns, which expressed, respectively people's likes and dislikes - preferences and non-preferences were woven together.
As the mapping activity progressed, the level of intangibles decreased. Conversely, the level of certainty increased in terms of what could be expected from the partakers. The next step was to generate new, creative impulses into the system, which took in consideration the patterns revealed by the partakers, so that they would react in new ways. Their responses to these inputs generated a sequence of new ways of conversations and actions, which gradually created the following: a) need for nexus; b) sense of purpose; and c) shared focus.
The complexity resided in aligning people who had distinct levels of perception, and were at different stages of integration of the already on-going process in the company. The creation of events in a designerly fashion proved to be very useful to assist people in moving along with the change process.
During a 10-month period of dedicated work of observation and leadership within the company, I witnessed people gradually drifting from sameness to newness, from linear thinking to systemic thinking. This intricate, evolving web of relationships where this work took place is what I want to demonstrate.

 

2002-060
TWO ARROWS MEETING IN MID-AIR: TOWARDS A NEW DIALOGUE BETWEEN SCIENCE AND THE SACRED
Charles Smith, Ph.D., Department of Management, Hofstra University, Hempstead, NY 11550, USA,
Email: c.h.smith@verizon.net
This paper explores places of tension and of convergence between modern science and the "wisdom" tradition. In light of systems thinking and emerging paradigms within science, it sometimes appears fruitful dialogue exists. Yet an unimpeded sharing is not easily found, and a great deal of misunderstanding remains between physical and social sciences and the wisdom tradition. It is suggested here that a better dialogue is possible and necessary, and that this dialogue would shed light on ways that we might better embrace the complexity and chaos around us.
The purposes of this paper are 1.) To identify some of the areas of misunderstanding between the natural and social sciences and the wisdom tradition, 2.) To suggest ways of resolution of these areas and 3.) To explore some of the fruitful insights that emerge by such resolution, particularly with respect to complex and chaotic conditions.
In the course of identifying fruitful areas of resolution, certain insights that appear to come from contact with the sacred and which have direct implications in science will be explored. These will include Nicholas of Cusa' explorations of unity, Kekule's dream of the structure of the benzene ring, insights into nature's structures emerging from Buckminster Fuller's meditations, and Muhyiuddin Ibn Arabi's possible allusions to super string theory. Thought experiments will explore the implications for natural and social science of the mystic's understanding of "recurrent creation"-i.e., of life as ever appearing in new configurations, and as "light upon light".
Further explorations will point to the contributions of the scientist to the spiritual explorer. The great scientists carry a spirit of adventure that is much less shackled by convention and belief than most commonly embraced approaches to spirituality. The freedom and daring of the forward thinking scientist, the openness to being taught, the willingness to expose one's ideas and to find flaws and inconsistencies-all of these remind those seeking wisdom of critical attitudes. It is suggested that is may be much easier today to find a scientist with a life affirming and forward vision, with an awe and appreciation for life, with openness to discovery, than it is to find a spiritual seeker with these same attributes. And yet the great wisdom teachings instruct that without these qualities no one can really make progress on the spiritual path.
Finally, this paper argues that a dialogue between science and the sacred, freed of misconceptions, will yield a clearer understanding of our emerging capacity to face the unknown and chaotic, to offer service to the world, and, by helping to address the problems around us, to be reinvigorated in our quest for inner and outer knowledge.

 

2002-061
DIALOGUE [IN THE TRADITION OF DAVID BOHM]: CAN SCIENCE AND THE SYSTEMS SCIENCES ALLOW FOR THE SACRED? CAN THE WISDOM TRADITION REALLY EMBRACE SCIENCE?
Charles Smith, Ph.D., Department of Management, Hofstra University, Hempstead, NY 11550, USA,
Email: c.h.smith@verizon.net
Using the dialogue method developed by Dr. David Bohm, we will share in an open dialogue on the issues related to the admission and embrace by science of the experience of the sacred, and the embrace of science by the wisdom tradition. Following Bohm's suggestion, the dialogue will be largely unstructured, using the principles of listening, suspending reaction, respecting and voicing in order to evoke deeper sharing in the realms of meaning and emerging insight. It is hoped that members of varied interests, both those disposed to the "spiritual perspective" and not, will attend.
If possible, this dialogue will be supplemented by a video showing of "A Chaotic Universe" from the series Art Meets Science in a Changing Economy, with Ilya Prigogine and other scientists, artists and spiritual leaders.

 

2002-063
CRITICAL SYSTEMS THINKING APPLIED TO RURAL TELECOMMUNICATIONS INFRASTRUCTURE PLANNING
T. N. Andrew1 and D. Petkov21, ML Sultan Technikon, Durban, P O Box 1334, Durban, 4000, South Africa,
E-mail: Theo@wpo.mlsultan.ac.za
2 University of Natal/Montclair State University, Private bag X1, Scottsville 3209, South Africa
E-mail:Petkov@comp.unp.ac.za
This paper discusses the application of critical systems thinking to the planning of rural telecommunications infrastructure. The Rural Telecommunications System is regarded as a complex sociotechnical system, and therefore the issues involved in the planning of telecommunications infrastructure for such a system are not just technological, but are often complex and 'messy', cutting across various aspects of the rural society, especially in developing countries. Critical systems thinking was found to be the most appropriate systems thinking approach that led to the development of a planning framework for rural telecommunications that caters for the diversity in the problem situation and interests of the various stakeholders. This paper provides the rationale for the use of critical systems thinking in the development of a planning framework for rural telecommunications infrastructure. Thereafter the development of a multimethodological planning framework that satisfies the fundamental commitments of critical systems thinking, such as critical awareness, emancipation, and methodological pluralism, is discussed. In particular, the justification for the mixing of interactive planning, interpretive structural modelling, and critical systems heuristics within the framework is presented. The paper will deal briefly with issues pertaining to paradigm incommensurability, and concludes with a validation of the planning framework.

 

2002-064
EPISTEMOLOGICAL PLURALISM: CROSS-CULTURAL MANAGEMENT CHALLENGES IN THE GLOBAL ECONOMY
David J. Richardson, School Management and Economics, Queen's University, Belfast.
PSC 78 Box 3866, APO AP 96326-3800 (USA)
The digital era of the information age allows the capability of a composite work force in a global enterprise to leverage corresponding global reservoirs of knowledge. However, while the culturally-driven epistemological diversity of a globalized work force can be a powerful corporate asset, it can also be a debilitating liability. The complexities posed by culturally diverse work environments of the globalized economy pose unique management challenges, requiring creative approaches for satisfaction. Management's challenge is to effectively leverage epistemological diversity. Successful use of epistemological pluralism can be a factor in generating environments conducive to knowledge creation, and in facilitating the ability for organizations to be capable of hypertransformation. Recognition of epistemological pluralism and its potential contributions provide a unique management challenge, which offers the potential of significant benefits. It is a challenge well suited to the use of critical systems methodologies; the critical systems approach is best suited to the cultural complexities of the global economy.
This paper provides an overview of macro epistemological influences and their potential relevance in the digital era of the information age. It suggests that these overlapping influences are also themselves being influenced by an evolving digital culture. Analysis of how these trends manifest themselves and in turn influence each other can be a means of facilitating operational synergy. In the process, this paper demonstrates the applicability of critical systems thinking and its inherent theoretical flexibility as an optimized means of dealing with the sophisticated management milieu of the digital era of the information age.

 

2002-065
SOCIETAL PHASE TRANSITION
Hellmut K. Loeckenhoff, Ossietzkystr. 14 D-71522 Backnang +43 7191 62295 Loeckenhoff.HellK@t-online.de
Change, social and societal, global and local has been discussed in depth and detail. As a particularly actual part of change, latest since Sep 11, the transition phases, mainly phase transitions, of social systems have gained focus. Each case is, due to widely differing preconditions, factually and systemically different. Nevertheless it seems worthwhile to remind and/or explore shared features, that is 'universals', of phase transitions. These will serve as a necessary framework for analysis, evaluation and eventually, prognosis. Mankind is responsible to guide and control its own evolution and history (also) by scientific means.
From the systemic point of view, phases of stagnation and transition may be distinguished as incremental, hidden change (as in the medieval times), respectively as visible and experienced adaptation to new life conditions. The development of the Western world between 1920 and 1989 may be signified as intensive adjustment. When e.g. incremental or gradual adaptation within the span of a generation cannot meet depth and dynamics of change, transition aggravates to phase transition, the shift into a new quality of equilibrium within a relatively short time. Partly stanched up to 1989, actual changes in particular on the global level right now attain the character of phase transitions as e.g. in power shifts and what has been termed the crisis of institutions. For the response and its success it seems crucial whether and how the necessity to change and the potential to meet it is valued and experienced.
Dependent from the case, a model of phase transition has to take into account a multitude of aspects and of their dynamic networking. Systemically, its mathematics as in chaos theory or in the Bayesian syllogism have to be explored. From the evolutional/historical point, models are presupposed of human evolution showing why the differences in technology, wealth, culture, stage of civilisation etc. did arise. Which kinds of development curves at which social levels need be hypothesised, and how are their dynamics linked by which functions? Toynbee and Spengler may complement socio-cybernetics. The actual shape these processes will take - or which particular models will own a sufficient power of to explain actual development - depends of course the material factual and systemic preconditions of the case in investigation. Specific and local history/situation/potentials need be scrutinised as well as the qualities and the dynamics of the surrounding systems. Evaluation towards a tentative forecast has to integrate these approaches into a coherent if open prognostic model. That demands the modelling and subsequent simulation of highly complex systems including the realms of human behaviour, motivation and mobilisation.

 

2002-066
CONCEPT MODEL OF ENVIRONMENTAL BUSINESS KNOWLEDGE CREATION SYSTEM FOR ISHIKAWA PREFECTURE
Yoshiteru Nakamori; Fei Gao, The Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology
Nakamori@jaist.ac.jp; fgao@jaist.ac.jp
Environmental issue has been a hot topic since early 1980s all over the world. Due to its vital importance to mankind, it has become a major consideration in almost every nation's economic and social development. Environmental problems have been caused by human's living-style and production style and in turn human being become the victim of the results. Since early 1970s people realized that environmental pollution caused mainly by industries had become such serious problems that they greatly damaged human's living environment and health and even threatened the existence of human being. Since then in order to copy with the environmental pollution problems, specialists in various fields from different perspectives made great effort developed different disciplines to control environmental pollution, manage production process, fix existed problems, recycle waste materials, conserve natural environment to improve the quality of human's living environment condition. Recent years in Japan environmental business have attracted both academia and practical fields' attention for its potential possibility of new business in Japan's long economic depression and the promotion of public attitude to environmental problems. Response to this, we propose a concept model of environmental business knowledge creation system for the local government aiming at establishing a communication and knowledge transfer channels among citizens, enterprise, NGO, and government.

 

2002-067
CRITICAL SYSTEMS THINKING TO KNOWLEDGE MANAGEMENT
Fei Gao; Meng LI, Yoshiteru Nakamori
The Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology
fgao@jaist.ac.jp
The paper initiated to introduce critical systems thinking into present study of knowledge and its management. The preliminary study showed that critical systems thinking provides a comprehensive and creative insight on tackling the increasing complexity of human knowledge and knowledge management process through the organic connection and division of knowledge systems, and encourages to critically use available methodologies in a coherent way to cope with corresponding subsystems or processes, which makes the complexity into convenient units. Based on the critical systems thinking, we divided knowledge into two aspects: static substance knowledge and dynamic process knowledge, which not only provide concise theoretical framework but also makes knowledge managers clearly understand the barycenter of their work in practices of knowledge management, and selectively utilize well-established methodologies in knowledge-related activities. The paper serves as an introduction to an application of critical system thinking and total systems intervention and providing a new thinking in diversified human knowledge topics.

 

2002-068
EASTERN MEDICINE AS A SYSTEMS SCIENCE (II)
Hisako M. Koizumi, Department of Psychiatry, The Ohio State University, Columbus, Ohio 43210
Email: Hiskoizumi@earthlink.net
This is a sequel to the paper, with the same title, which was presented at the ISSS 2001. In that paper, we showed how Eastern medicine was based on systems thinking in both theory and practice, using acupuncture treatment as an example. In this sequel, we further explore commonalities and correspondences between Eastern Medicine and systems science. To be more specific, the eight major ideas underlying the practice of Eastern medicine will be taken up and their relationship to systems ideas and concepts will be discussed. These eight ideas are as follows: (1) A human being as a microcosm, who exists in the macrocosm, namely, the universe; (2) Health as a state of balance in the process of the human being's adaptation to the ever-changing environment; (3) Yin-yang complementarity influencing the natural as well as human affairs; (4) Mind and body as inseparable and complementary entities; (5) The importance of maintaining balance between the left and the right side of the body and that between the upper and lower part of the body; (6) A specific part of the body as a mirror of the functioning of the different parts of the body; (7) The meridian system connecting different parts of the body; (8) The interaction between the meridian system and the environment, including the time of day and the season. Each of these eight ideas will be discussed in terms of systems ideas and concepts such as complementarity, feedback, hierarchy, hologram, homeostasis and synergy.

 

2002-069
TRANSDISCIPLINARITY AND MANAGING WATER IN THE LANDSCAPE
Roger Attwater*, Sandy Booth, Peter Davey, Alasdair Guthrie, Bruce Simmons
Centre for Landscape and Ecosystems Management, University of Western Sydney, Locked Bag 1797 Penrith South DC, 1797, Australia
(*corresponding author: r.attwater@uws.edu.au)
There is a growing recognition of the need for frameworks for environmental management which transcend disciplinary boundaries while building upon established approaches to applied research which have recognised legitimacy and utility. This is particularly the case in questions of managing water in a landscape context, where perspectives as to what a landscape context is depend upon worldview. This paper explores the implications of a transdisciplinary approach to managing water in a multi-faceted landscape context.
The first section of this paper discusses a range of perspectives on landscape context, and implications of these for managing water. Approaches to inquiry and management which seek to integrate perspectives are discussed, particularly including integrated catchment management. A number of Australian and international case studies which the authors have been involved in are then briefly described, to reflect the diversity of adaption and implementation given differences in scale and biophysical and sociocultural contexts
The second section of this paper discusses the approaches to date in identifying what being transdisciplinary means. Perspectives drawn upon will include those from a number of areas of inquiry involved in the search for conceptual and methodological pluralism, including systemic practice, landscape ecology, ecological economics, and civic and professional praxis. A core challenge of this search is the emergence of new concepts and language to complement, but move beyond, the language and assumptions which define disciplines. Emerging examples, such as the concept of resilience, are discussed.
Conclusions are drawn in relation to what it means to be transdisciplinary in our approaches to managing water in the landscape.

2002-070
MIXING META-METHODOLOGIES AND PHILOSOPHIES: WULI-SHILI-RENLI, PRAGMATIST AND PRACTICAL PHILOSOPHY.
Roger Attwater*, Centre for Landscape and Ecosystems Management, University of Western Sydney, Locked Bag 1797 Penrith South DC, 1797, Australia
(*corresponding author: r.attwater@uws.edu.au)
The dialogue regarding the emergence of pluralist approaches to systems thinking has been a central interest in the critical systems literature. From the debates surrounding the development of the system of systems methodologies, and critical perspectives on emancipatory practice, more recent critiques have reflected core principles of improvement and methodological pluralism. Philosophical perspectives potentially supporting a soft systems perspective were recognised at an early stage to be very broad, and after a Habermasian turn, recent works have included the relevance of pragmatist philosophy and modern interpretations of Aristotle's practical philosophy.
The recent inclusion in the systems literature of the Neo-confucionist philosophical underpinnings of the Wuli-Shili-Renli approach is a very important contribution. In the spirit of current interest in pluralism, this provides new opportunities for comparison the development of innovative mixtures of philosophies, meta-methadologies, and systemic applications. The ability to draw upon philosophical and methodological perspectives grounded in China and the West provide new intellectual resources for engaging with the socioeconomic and environmental challenges faced by us all.
This paper begins by briefly comparing the philosophical underpinnings of Wuli-Shili-Renli with perspectives drawn from recent interpretations of pragmatist and practical philosophy. The implications for mixing meta-methodologies and promoting cross-cultural systemic practice are developed. This is followed by the discussion of two cases studies in China which the author has an ongoing involvement. These cases deal with integrated environmental and water resource management. Conclusions are drawn in terms of implications for the ongoing developement of cross cultural collaboration in environmental management

 

2002-071
WHY DID NONAKA EVER HIGHLIGHT THE ROLE OF TACIT KNOWLEDGE?
Meng Li, Fei Gao, The Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology (JAIST), 1-1 Asahidai, Tatsunokuchi, Ishikawa, Japan, 923-1292
Polanyi introduced the concept of tacit knowledge in mid 20th century. It was not until early 1990s that Nonaka systematically made use of the dichotomy of knowledge as explicit dimension and tacit dimensions in his landmark theory of knowledge-creating company that triggered a continuing enthusiasm on tacit knowledge in developing business knowledge. Nonaka highlighted the role of tacit dimension of knowledge in processes of organizational knowledge creation in Japanese manufacturing companies. The phasic conversions between tacit knowledge and explicit knowledge as well as their dynamic spirals within or across organization become a classical commentary for the unique competences of Japanese manufacturers' triumphs in 1970s and 1980s. With accumulations of literatures on knowledge management and unlimited generalization of the theory by academic and practitioners in varied contexts and fields, it is worthy of rethinking why the guru ever emphasized the tacitness of knowledge and under what kind of circumstances the theory is conditioned.
Nonaka just outlined 'knowledge creation' instead of 'knowledge management' (he even expressed that knowledge cannot be 'managed'). His central arguments were based on proactive knowledge creation in industrial companies. In view of organization theory the approach made it focus only on human activities in organizations, which renders context strongly connected with and conditioned by managerial style, organizational culture, organizational structure as well as social configuration. Having misunderstanding the essences, it is easy to fall into in either information management trap or misdirect the center of gravity of management efforts.
Only after fully understanding the 'why-question', can we proceed to precisely address those ensuing 'what-, how-, and which-questions' in various problematic contexts and fields. Practitioners can strategically allocate organization's resources to tackle problems and issues with appropriate approaches and methods. By means of systems thinking, the paper revisited the philosophical underpinnings and theoretical positions of Nonaka's theory as well as the reality of Japanese manufacturing industry and pointed out misunderstandings of recent studies on knowledge management and possible negative impact on researches and practices.

 

2002-072
ADDRESSING COMPLEXITY THROUGH CRITICAL, SYSTEMIC PRAXIS FOR DESIGN, PROBLEM SOLVING AND GOVERNANCE
Dr Janet McIntyre, Senior Lecturer, Flinders Institute of Public Policy and Management
Janet.McIntyre @flinders.edu.au
In this paper examples of participatory design based on participatory action research (PAR) and a modified form of a community of practice (derived from Wenger 1998) are critically analyzed with a view to "unfolding" (as per Ulrich 2001) the implications of COPs for addressing technical/instrumental, strategic and communicative knowledge (as per Habermas 1974). This requires matrix team approaches to design, plan and implement policy to address the complex, interrelated social challenges we face currently and in the future, namely: social and environmental sustainability in terms of socio-demographic, political, economic, technological and environmental challenges.
COPs facilitate capacity building in ontological and epistemological skills pertaining to working with, rather than within boundaries of knowledge. COPS use action learning within and across sectors and disciplines and in response to a changing world. Engagement is with individuals and groups within the local context of organisations, but the context is shaped by global challenges. Thus the social, cultural, political and economic and environmental context in which organisations operate need to be considered in designs for the future. This impacts on learning, public policy, management and governance.
In a complex, changing world integrated responses are needed. The narrow compartmentalised approach to addressing problems is being redressed by innovators in many areas of research and practice who realise this. One of the key challenges for the future is building and sustaining the rights and responsibilities of citizens through developing social and environmental capital, not only economic capital. We need to be mindful that we are citizens, not merely customers and that the social and environmental contract is deeper than any commercial contract. Developing the capacity of citizens to situate personal issues within a complex public context is the ultimate focus. Learning needs to enable the participants to design for the future (Banathy 1996,2000) at both the local and the global level. Participants need to be able to make sense not only of their own field of practice, but learn to engage with others in other fields of practice. Identity based on one set of assumptions and values associated with one's own learning and experience needs to be expanded to negotiate with other frameworks of meaning. This involves becoming boundary workers across discipline areas, sectoral areas and socio psychological and cultural areas (as per Churchman 1979,1982). The work of critical and systemic thinkers (such as Romm, Flood and Jackson) needs to be applied to public policy as an area for the skill development of embodied, value-laden human beings.

 

2002-073
FUZZY LOGIC GROUP DECISION SUPPORT SYSTEM FOR AGRO-BASED INDUSTRY
Prof. Dr. Syamsul Maarif, Prof. Dr. Eriyatno, and Dr. Ir. Machfud Industrial and Management Engineering Laboratory Bogor Agriculture University Bogor - INDONESIA
The development of agro-based industry at rural area was found to be complex whereas its criteria and factors for investment were mostly fuzzy and vague in nature. Therefore, system thinking and approach was used in this applied research to accomodate participation of stakeholders and institutions involved. Expert judgments in development planning process was required. Moreover, the business decision process which includes many participants with different preferences and fuzzy in logical frames, need comprehensive procedure to make effective results. The decision support system is a methodological instrument that aim to reduce business risks and increasing utility values based on field data.
The systemization of model design was started by compiling logical relations that form the structure of the agro-based industry system.The core of the DSS was arrangement of system components int hierarchical model.; brought verbal weights among elements and then synthesized the alternatives to get priorities. The main objectives of this research was to construct a group decision support system (GDSS) for planning the agro-based processing industry in Indonesia. Case study was carried out in West Java province for essential-oil industry, especially vetiver plant products. The GDSS was integrated into computer package of Expert Management System through fuzzy logic techniques.
The research found that Interpretative Structural Modelling with Fuzzy was able to identify hierarchical structures, characteristics and key elements as well as the driving forces for essential oil industry at rural areas.
The DSS was also able to set up priority for its developmental activities.
Based on these results, simulation was carrued out to analyze technological aspects, source of business investments and form of related institutions. The on-the-field verification recommends the establishment of Post Harvest Enterprises on small scale business, which in cooperated with farmers organization to increase local community welfare . The best policies was application of steam distilation technology, source of capital with revenue sharing or leasing scheme , and direct exporting products. The GDSS performance indicators included parameters on production practices, product quality, feasibility of the business and community participation.

 

2002-074
CHANGING CORPORATE EDUCATION AND KNOWLEDGE MANAGEMENT
Masayuki Tsuchida1,2; Meng Li1; Yoshihiro Aoike2
1The Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology
2Human Resources Development Company, Matsushita Electric Industrial Co., Ltd.
Corporate education of Japan's large companies undergoes gradual changes in training contents, pedagogy, evaluation and post-program systems. Japanese companies have been well known for their distinctive corporate training system since the postwar period that provided a great amount of capable work forces for catch-up endeavors. While social-economic milieus varied over times in the past decades, the system experienced changes from vocational training and introduction of management knowledge, to development of new style leadership.
The paper in a systems perspective reviewed the determinants of the systems changes and their interplays in transition. The reflections responding to external changes revealed the system succeeded in providing technical specialists but failed to generate creative and strategy-focused leaders urgently required for corporate reforms in today's global competition. Due to ongoing changes in lifetime employment system, a lifetime employability of employee is at the heart of both individual and company's concerns. The structural shift allows corporate education to be incorporated as a constitutive part of knowledge management under an umbrella of corporate strategy. The new opportunity makes it possible revisit the existing education system by outsourcing generic vocational training and building online learning, and economically narrowing down the scope of training programs, and well focusing on corporate-specific programs (leadership development, specialized technology, intra-company MBA, etc.) among preferred candidates. In this way, corporate academy can be shaped into a base camp of spreading knowledge-enabling facilitators onto each subsystem (division or department).
We also point out the system does not only is of importance for its conventional position in facilitating continued learning activities, but its new role, as strategic partnership, in developing and maintaining high quality leadership resource within organization, which function is irreplaceable by outside institutions. Moreover, it can cross organization to spill its well-developed programs and resources over customers, suppliers and local communities, to speed up a fundamental transition from a cost center to profit center of the system. Moving a model of corporate academy or institute of large Japanese companies would make it be convergent with corporate university in US and Europe.

 

2002-075
A CRITICAL SYSTEMS THINKING INQUIRY INTO CHAOS AND COMPLEXITY THEORY IN MANAGEMENT
María Carolina Ortegón Monroy
University of Lincoln, Brayford Pool, Lincoln, LN6 7TS, UK
E-mail: mortegon@lincoln.ac.uk
This paper presents the theoretical and practical findings emerging from an exploratory study of Chaos and Complexity Theory (C&CT) as an alternative approach to propitiate new understandings about the nature of management in organisations. They show that C&CT is not theoretically coherent enough to be applied in practice. The study involved a theoretical and a practical part. The theoretical exploration was conducted from a Critical Systems Thinking (CST) perspective. It involved a theoretical inquiry particularly of Stacey's account of C&CT, presented in Complexity and Creativity in Organisations. This is presently considered to be one of the fullest and probably the most widely read management account on the subject. 'Jackson's 1991 framework' of CST, used to interrogate systems approaches, constituted the selected approach to conduct this theoretical exploration. From this theoretical exploration a series of findings were produced. They reveal incoherencies, which were further explored through the findings emerging from the exploration at the practical level. The practical exploration was conducted in the Humberside Training and Enterprise Council (Humberside TEC), which introduced C&CT ideas as part of its process of becoming a learning organisation. The focus of this practical exploration was the first self-managed team of consultants belonging to the Investors in People Directorate.
The paper thus involves a critique, characterised by a discussion about the theoretical incoherencies of C&CT and their implications in the practice; a discussion about Stacey's claims for management; and a re-consideration of the value-adding and difficult-to-embrace points attributed to this approach, in order to determine what this approach can deliver in practice. The theoretical incoherencies demonstrated in the practice are: questioning the technical interest while seeking to determine regularities in behaviour; considering control as an illusion but accepting regulation of behaviour to propitiate conditions for mutual understanding; considering changes in schemas as liberating but being enslaved to one schema; the pervasiveness of a dominant schema versus the view of change in organisations as a dynamic of changes in schemas; considering complex-pluralist contexts as normal but making unitary assumptions in terms of intervening; and encouraging a structuralist approach for intervening while advocating a social constructivist view.

 

2002-076
'PLATFORMS' FOR CRITICAL SYSTEMS PRACTICE: AN ORGANISATION-BASED ACTION RESEARCH PROJECT
Alvaro Carrizosa de la Torre
University of Lincoln, Brayford Pool, Lincoln, LN6 7TS, UK
E-mail: acarrizosa@lincoln.ac.uk
This paper is the result of reflection and debate, which has been reciprocally enriched by theory and practice. It presents the findings of an organisation-based action research project, where the researcher entered into a real-world situation and aimed both at improving it and acquiring knowledge about the experience. He became, for a period of 3 years, involved in the flux of 'real-world problems' within an engineering company that invited him to do research by using systems ideas in practice.
This research project produced a series of findings contributing to the study of the process whereby different systems methodologies, methods, tools and techniques are used in combination. This process is known as Critical Systems Practice (CSP). The study yielded 'defensible generalisations' from a series of research themes explored. They constitute four issues relevant to CSP, namely, (a) pluralism, (b) improvement, (c) modes of research, and (d) the role of the agent. The learning derived from these research themes led the researcher to formulate the 'transferable problem solving capacity' of the study: the enactment of 'platforms' as devices for operationalising CSP. This paper thus recapitulates on the contributions of this research endeavour had on the four research themes and on the emergence of platforms as devices for operationalising CSP.

 

2002-077
INFORMATION - THE POWER OF CHANGE
Ann Lind and Bertil Lind, University College of Borås, S-501 90 Borås, Sweden
e-mail: ann_maria_lind@hotmail.com and bertil.lind@hb.se
Evolution and change have been characteristics for the world ever since the creation of man. When the primitive man wanted to perform a task, he looked at the world around him to find something that could serve as a tool. He gathered information and used the information he found to change his living conditions. The word information comes from the Latin informare which means to give something form. Information is intended to give the perception of a concept or an activity a form. When gaining experience of using the tool the primitive man modified it to suit his purposes. In that way it is possible to accumulate information in the form of knowledge, communicate it to others and in that way pass on vital knowledge to coming generations. In this paper we are discussing different views on the concept of information and how change may be powered by information. We are also relating information to knowledge. Human activity systems, for example a person using a tool, or a social system, have the ability to obtain and use information and to consciously create change because of their cognitive ability. We limit our discussion to such systems. Information may be gained through cognitive activities or through activities involving the surrounding world. The system will change according to the information that it receives. Without information there is no reason for and no basis for change. Changes in human activity systems will result in information causing actions that will modify the internal cognitive system and the surrounding world. Such actions may therefore change designed physical systems, such as industrial machines, and designed abstract systems, for example theories but also other human activity. The information that can be found by observing the world around us will therefore change and new information may be obtained. Cypernetic loops will thus occur involving human activity systems and other systems in the surrounding world. With the vast amount of information available to us today, it is not surprising that we also experience a change-rate higher than ever before. Human beings, activities and opinions will change more frequently. Since information is the basis for change the ability to use the accessed information gives power to influence other people and change the world. Therefore it is of importance to investigate the relationship between information and change to illuminate how the mechanism to create change from information works. In this paper we are presenting arguments for our view and models to illustrate how information may power change. In the models we use cybernetic loops to create an understanding of the evolution. The basic mechanism of gathering information to solve problems has not changed from the primitive man to the modern man. But the world is not the same. The actions of previous generations based on their information have created the world as we know it today.

 

2002-078
TRUSTABLE COORDINATOR SUPPORTED VALUE-EXAHNGE SYSTEMS OF VOLUNTARY SERVICEDS IN COMMUNITIES
Kunihiko Kido, Seiti Hasegawa, Koichi Haruna, Toshiharu Kato
The degradation of a community in advanced countries is one of the most deep and complex societal trends of the past 30 years. Moreover, a trend toward more individualistic lifestyles is causing diminished ability of the community and of the family to support their own members. This shows the unavoidable necessity of reconstructing a societal system that can support an aged society.
For example, in Japan, the nursing-care insurance system was started in 2000. In this system, care services are provided to customers through the care service market. However, there are many necessary services (for example, the service of speaking with an old person) that are not covered in the nursing-care insurance system, but are important to improve the health condition of elderly people. It is insufficient to solve the nursing problem solely by market solution. Thus, we have to complement the service of administration and private sectors with mutual aid and construct voluntary service exchange processes in regional communities.
In voluntary service exchange processes, it is necessary to promote the participation of various participants. To achieve this end, it is necessary to increase the reliability of those processes and reduce social costs for those processes.
Today, social costs for global and complex trading has been declining by the introduction of e-commerce. But the weak such as elderly people can't easily use e-commerce services based on the concept of contract. Therefore, it is required that the construction of new trustable value-exchange systems for these people. This paper aims to provide the solution of earlier problems by introducing the concept of fiduciary in equity law and proposes coordinator supported value-exchange systems. Moreover, we adopted community currency called EcoMoney as the value-exchange medium of a variety of voluntary services. The main purpose of the proposed system is to create active and comfortable communities by implementing the exchange processes in order to improve mutual communication and dependence in regional communities.
In order that system is trustable, it is important to manage quality and efficiency of services provided in voluntary communities. We propose introducing the coordinator that is an intermediary between participants in communities. Here, we thought that for managing quality and efficiency, it must be effective to introduce obligatory rules based on the concept of fiduciary for coordinators: the duty to furnish information, the duty of loyalty and the duty of care. All coordination practice by coordinators is recorded to coordination log files. And the history of every coordinators practice could be checked and studied by a community council that all coordinators are expected to attend.
We developed the prototype system based on the above concepts. We performed several preliminary experiments in order to study and improve this coordinator-supported service exchange process. Those experiments showed that it is difficult to operate the community of more than five hundred participants without any system such as the proposed system in this paper and an increasing tendency of voluntary service transactions.
The 3rd EcoMoney distribution experiment in Kuriyama-cho Hokkaido has been performed since September 2001. The proposed system has been used in this experiment. The length of the experiment is one year and a half. At January 2002, 567 participants have joined in this experiment. Service registrations amount to 2265 services. In this paper, we plan to describe the present situation of this experiment.

 

2002-079
NEGOTIATION AND SYSTEMS VIEW IN THE ELABORATION AND CELEBRATION OF INTERNATIONAL TRADE CONTRACTS
Carla A. A. Ventura, MSc, PhD Student at the University of Sao Paulo, Brazil, caaventu@eerp.usp.br
Dante P. Martinelli, MSc, PhD, Professor at the University of Sao Paulo, Brazil, dantepm@terra.com.br
In the globalized world, international trade is a source of profits and, above all, of power and influence of developed countries regarding developing countries. The various facets of Systems Thinking are an indispensable component for a more comprehensive and global view of the Negotiation process, aiming at making it more systemic. A tentative outline of a systems approach to Negotiation is presented, based on the points considered fundamental to increase its comprehensiveness and with the purpose to foster more lasting relationships. The significance of knowing how to handle the different worldviews of the parties and of trying to attain an evolutionary Negotiation process are stressed.
Therefore, this study aimed at analyzing the importance of negotiation in the elaboration and celebration of international trade contracts. Based on the above mentioned theoretical foundation, the authors verified how three companies located in the region of Ribeirao Preto (Brazil) performed the negotiation of their international contracts. Data were collected through semi-structured interviews, using a guiding instrument, applied at three companies: a large company characterized by the predominance of national capital, a transnational enterprise and a small national company.
Based on a systemic view, we can state that the negotiation process presents many facets, such as: the variables involved, the negotiation styles, the abilities, the ethical issue, conflict management and resolution. It is also very important to have an intense participation of the ones involved in the process, in order to enable the development of their abilities. In a negotiation process, we must continuously pursue the systems view aiming at achieving a win-win result, which means the satisfaction of all the sides involved in the process.
The results of the study evidenced the differences and similarities among the companies, regarding the procedures used in their negotiations as well as the bargaining power of the companies characterized by the predominance of international capital. Hence, the national companies must understand all the variables involved in the process of negotiation of their international trade contracts in order to strengthen their position in the global market.

 

2002-080
FORMULATION OF THE STRATEGIES IN A SMALL ENTERPRISE IN THE EDITORIAL MARKET
Wilson Calil, Master Student at the University of Sao Paulo, Brazil, wcalil@hotmail.com
Dante P. Martinelli, MSc, PhD, Professor at the University of Sao Paulo, Brazil, dantepm@terra.com.br
Bower et alii (1992) make a clear division in their theory about strategic planning. According to them, there are three phases in this process: formulation, implementation and evaluation. While formulating the company must analyze market threats and opportunities, its weaknesses and strengths, must consider the influence of personal values in the process, and finally, must consider the social responsibility.
Related to implementation, the factors that must be used are: work division, information system, pattern processes, performance evaluation, incentives to strategic objectives, punishment and control, recruitment and development of executives.
The evaluation is a continuous activity, with a systemic and general view of the whole process, in which we can correct the path to improve the strategic process in the organization as a whole.
Churchman (1971) sees the essence of the Systems Approach as being the design of an inquiring system capable of unfolding the relevant issues concerning the human condition. This approach "belongs to a whole class of approaches to managing and planning our human affairs with the intent that we, as a living species, conduct ourselves properly in the world" and is "comprehensive", based on the fundamental principle that all aspects of the human world should be tied together in a grand scheme. Comprehensiveness requires objectivity - to be open to all those aspects one ought to consider.
Checkland's Soft Systems Methodology (SSM) was developed from the real experience of being not able to solve real, ill-structured problems by means of "hard" methods. The result was a methodology which operationalizes Churchman's philosophical analysis and is capable of orchestrating conflict and promote consensus.
This article will analyze the strategy formulation activities of a small sized publishing house, and will compare them with Bower et alii's theoretical model. This company was founded in 1995 by two journalists in Sao Paulo state (Brazil). Since then, it has been working with social projects, which consists in the production of children's books (related to social issues), its selling to the government and the implementation and monitoring of an education project.
The company initiated its formal activities of planning in 1995, when the first plan, named "development market plan", was formulated. It was a market plan for a little collection of children's books, a line of products that involved issues related to citizenship. In the following years the publishing house improved its formulation process. Until 1999, the strategic plans were just marketing plans, but in 2000 and 2001 they became strategy plans, including all areas of the company. The company was faced with many formulation problems, that, along with other factors, prevented their employees from reaching the strategic objectives. These problems were viewed and analyzed with the systems view, to suggest improvements in the whole process.

2002-081
BUSINESS 'GUANXI' IN CHINA: A SYSTEM OR NON-SYSTEM
Martin Parnell, Liverpool Business School
The phenomenon of 'guanxi' is a highly personalised form of networking that is a key social 'institution' in China without which nothing of substantial importance can be achieved in either politics or business. The extent to which this key, integral socio-cultural phenomenon lends itself to systems analysis depends largely on its accessibility as an 'organisation'.
However, 'guanxi' represent, by definition, an extremely informal and unofficial form of human channels and processes which depend for their effective functioning on complete confidentiality and discretion. It is this reality which makes systematic, empirical enquiry so problematic - not surprisingly, in Nojonen's words: "Today very little is known about the strategy, tactics and ethics of 'guanxi' in the Chinese business world." *(see below)
The proposed paper focuses, nevertheless, on what is already known as a basis for further analysis, primarily within the human resource dimension, proceeding according to the following stages : 1. a review of current theoretical frameworks and models for 'capturing' and explaining the phenomenon 'guanxi', including 'mapping' approaches; 2. a brief investigation of the ethics of 'guanxi'; 3. relating the foregoing findings to the concept of network capitalism and the role of human resources in penetrating the P.R.C.-market. A central issue addressed is the training of expatriate managers to handle 'guanxi', not least in their role as supervisors of Chinese personnel; 4. review and conclusion: this incorporates a summary of the preceding sections, interpreted in such a way as to highlight three particular areas where further research could be of value : i) the implications for additional theoretical and practical work in relating very Western HRM practices to (the) very Chinese 'guanxi'; ii) possible implications for other dimensions of business activity in China, e.g. (relationship) marketing; iii) indicating potentially fruitful 'entry points' for systems analysis of 'guanxi'.
* Matti Nojonen, Various worlds of establishing and justifying 'guanxi' in Chinese business, p.5.

 

2002-082
SOME SYSTEMIC IMPLICATIONS OF COMMON OWNERSHIP; A SHIFT OF BUSINESS PERSPECTIVE FOR THE 21ST CENTURY?
Sylvia Brown, Transmuter@tesco.net
This paper is an early-stage attempt to map out and understand some of the ramifications of Common Ownership financial structures in business enterprises. Case study material is included, to illustrate some of the systemic properties discussed.
Mutuality in the conduct of business exists for a variety of reasons and in many different forms. For example, at one extreme, it may be adopted only as a "last resort". In such cases, arguments for common ownership could rest upon systemic environmental pressures that might have caused it to emerge.
This paper's main topic, however, is not this but Common Ownership as an ethical choice, located in a field of other options. Its main thesis is that ethical Common Ownership Companies (C.O.C.s) are viable alternatives to Traditional models of organisation, i.e. hierarchical and capitalist enterprises that act as if they believe in Neo-Classical economic theories. The discussion explores the proposition that the complexity that C.O.Cs must manage is composed differently from the complexity that most Traditional companies apprehend. There are additional elements to be monitored and managed, both internally and externally, some of which are consequent on the behaviour of the mainstream majority. Conversely, there are some elements of complexity faced by the mainstream that simply do not arise for ethical C.O.C.s.
Consequently, the set of challenges that arise for C.O.C.s also must be managed differently. For example, ethical dimensions of practical challenges will be addressed, rather than ignored or "fudged". A high system level question illustrating this additional complexity for ethical C.O.C.s is how the ethical principles of founding members can be extended into evolving business structures, or even if they should be. I see the main challenge for ethically-driven businesses in the 21st Century is how to be successful and profitable and remain within their founding ethical principles. The corollary of this is the further question, whether it is possible to make ethical principles a higher priority decision rule than remaining viable, in extremis. Since examples can be found, the answer is "Yes". Some of the challenges at other system levels are reviewed, before a summary of what the mainstream might learn from C.OCs.

 

2002-083
SOME CONSIDERATIONS ON INTERACTIVE MANAGEMENT
Wan Jiangping1 Yang Jiangmei2
1 College of Computer£South China Univ. of Tech., Guangzhou , 510640
2 Faculty of Business Administration, South China Univ. of Tech., Guangzhou, 510640
This paper considers the principles of interactive management in the view of books of changes in the first, then illustrates that the elements of interactive management are support structure, work program of complexity and the laws of complexity. The relations among them are analysed and explained. Finally, We explain how the Microsoft enterprise structure to realize the value of IT in the view of interactive management.
Keywords: Book of Changes, Interactive Management, Support Structure, Work Program Of Complexity, the Laws of Complexity, Microsoft Enterprise Structure

 

2002-084
EXPLORING A CROSS-CULTURAL CONTEXT FOR KNOWLEDGE MANAGEMENT
Zhichang Zhu, The University of Hull Business School, Hull HU6 7RX, UK
z.zhu@hull.ac.uk
This paper questions the popular claim that knowledge management (KM) is becoming the most universal management concept in history. It does this by exploring a cross-cultural context that brings to light the unique features and associated problematic of differing KM styles: the American, the Japanese, the European and the Chinese. It presents evidence that, despite growing connections, uniqueness and heterogeneity among KM styles worldwide are likely to continue due to differences in histories, cultures and institutional forces. Consequently, rather than from a universal concept or an isolationist strategy, the paper concludes, KM will benefit from globally informed indigenous practices.
If you assume that you couldn't possibly learn anything from a set of people, you're not going to delve into the content of the ideas they embody. Robert E. Cole (1998:54)
Knowledge management (KM), defined broadly as a loose set of ideas, tools and practices centring on the creation, communication and utilisation of knowledge in organisations, has during the last several years enjoyed an emerging popularity across disciplines and industries all over the world. Management scholars begin to proclaim the possibility of KM becoming 'the most universal management concept in history' (Takeuchi, 2001:328).
In this paper, I intent to question this 'universality' claim. I will do this by, first, presenting an overview of the perceptions and practices of KM in different socio-cultural settings, exploring their distinctive features and associated problematic. I will then show evidence of the continuous and insistent heterogeneity among KM styles, which throws the universality claim in doubt. I will conclude that KM overall the world can benefit, not through a universal concept, but through a strategy of globally informed indigenous practices.
The research presented in this paper was conducted during a research visit to the Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology (JAIST) in 2001. The author would like to extend his gratitude to JAIST and President E. Shimemura for their generous financial support.

 

2002-085
REPRESENTATION OF KNOWLEDGE IN ECOLOGICAL-ENVIRONMENTAL SYSTEM DYNAMICS MODEL
Pawel Bartoszczuk1, Yoshiteru Nakamori2
1) Japan Advanced Institute of Science and Technology, School of Knowledge Science, Hokuriku, 923 1292 Japan,
bpawel@jaist.ac.jp;
Systems Research Institute of the Polish Academy of Science, Warsaw, 01 447 Poland, 2) Japan Advanced Institute of Science and Technology, School of Knowledge Science, Hokuriku, 923 1292 Japan nakamori@jaist.ac.jp
In the systems sciences, economical and ecological system dynamics models are widely used as a tool for representation of knowledge from this area. It is followed, in many cases, by simulation, prediction and decision making. The bases for model building are human expertise in economics, data analysis and modeling. First, connections between economical or ecological data specifications and ecological are formalised. Next, the modeler may perform simulation runs of the model using existing system dynamics modeling tools, such as Powersim®.
One of the great advantages of the system dynamics method is its problem-oriented approach. The non-discipline-constrained nature of the mathematics of dynamics enables any relationship -- biological, physical, or social -- to be modeled. It is not unusual, therefore, for system dynamics models to embody knowledge from both the natural and social sciences. System dynamics was originally developed in the 1950s to industrial processes, but now is currently being used for policy analysis and design. In this model knowledge that already exists about relationships among the levels is used and expressed in terms of interlocking feedbacks loops.
This paper describes the model of economic development with the burden on lately discussed relationship between pollution and income. The model yields insight into the possibilities for replacing not renewable resources with more renewable ones. Simulated so far relationships between variables ought to undergo yet more cautious examination.

 

2002-086
LIVING SYSTEMS SCIENCE METHODOLOGY FOR MANAGING COMPLEXITY AND CHANGE
James R. Simms, 9405 Elizabeth Court, Fulton, Maryland 20759
Methodologies for managing complexity and change based on living systems science are presented. Managing complexity and change requires an understanding of complex systems and their environments. Living systems science has attained the maturity to provide this understanding. Living systems science provides a means for understanding both the static and dynamic characteristics of systems. This understanding is based on identification of the determinants of a system's structure and organization (static characteristics) and a system's behaviors (dynamic characteristics), and on the relationships among these determinants. Managing complex systems and their changes requires identification of those determinants that can be changed (managed) and the development of methodologies for analyzing systems' behaviors when the determinants are varied. The determinants of complex systems are identified and methodologies for managing complex systems are provided.

 

2002-089
IMPROVING PRODUCT DESIGN AND DEVELOPMENT BY LIVING SYSTEMS THEORY
Parviz Ahari Royal Institute of Technology Department of Machine Design Engineering Design, S-100 44 Stockholm, Sweden
Product design and development is a complex activity that involves different specialists, organizations, and different kinds of materials, energy, and information. In spite of the systemic nature of this process most literature that deals with product design and development does not provide a more precise description of products as systems or components of a system and the systemic relation of these products with human systems or with other systems. In this paper an attempt is made to clarify some important issues in order to improve the product design and development process. The issues discussed here are as follows. Some problems with current methods are presented. The importance of systems sciences is briefly explained. Some basic concepts and terminology in product design and development are described with living systems theory (LST). LST is integrated with other approaches to form a multi-methodology. A systemic model that shows the relations of all kinds of products to each other is provided.
2002-090
PRAXEOLOGICAL AND SYSTEM ELEMENTS OF PROCESS MANAGEMENT IN THE ORGANIZATION
dr. Wojciech Cieslinski - WWSZiP, Mrs Ryszard Kobylka - The President of RAFAKO Company
In the following paper there are shown some problems which are connected with praxeological and system definition of business process in the organization.
Based on practical example there are presented process systems of the Polish stock company "RAFAKO S.A." (the producer of boilers for energetic).
The treatment is based on the system formulation for business processing which occur in the factory.
Their analysis is formulated according to the conception of prof. Kotarbinski, Pszczolowski and Gasparski, the Polish authorities of praxeology.
In the analysis of the business processing are adapted the practical method (Rafako Process Modeler - RPM)) which is assisted by information instruments (BSC)
The praxeological and system formulation helps to analyze business effectiveness in the organization (Rafako S.A.).
The system overview of the organization enable implementation of integrated information systems and quality effectively (ERP, ISO).

 

2002-091
CONCEPT AND LINGUISTIC THEORY OF SYSTEMS
J Korn, Visiting Fellow, London School of Economics, 116 St Margarets Road, Edgware, HA8 9UX, UK
e mail : janos999@btinternet.com
It is the author's experience that at conferences and meetings on topics of aspects of systems science questions are still raised regarding :
1. The meaning of the term 'system', what is meant by modelling, concept of emergence and other basic principles,
2. How we know that we 'think and practice systems'.
We assert that the systems phenomenon perceived by viewing a chosen part of the world in terms of appropriate constituents, although showing immense variety and diversity, is single and pervasive throughout experience. It is an alternative view to many others such as that to conventional science. Yet there is a diversity of systems activities like : engineering control/computer systems, biological systems, information systems, management, project management, systems engineering, etc. There appear to be : difficulties in practical application of systems ideas, a reluctance to accept systems thinking by learned societies and little impact of systems thinking on established branches of knowledge like engineering, biology, economics, social sciences and others.
These observations, if reflect a true state of affairs to an appreciable degree, indicate a lack of coherent and fundamental approach to 'systems' which can be related to experience and used for predicting the occurrence of outcomes and for design of products and aggregates of interacting objects. The aim of the proposed paper is to outline a framework for such approach, thus, to attempt to alleviate the problem outlined.
Natural language appears to be the most widely used and versatile symbolism evolved by people, for carrying thoughts arising from real or imaginary interaction with own being and the surrounding. Through stative and dynamic verbs language refers to perception of states and their change. This enables us to describe by means of simple set theory a concept of stative and dynamic systems or aggregates. This is to be followed by a proposed 'theory of change' firmly rooted in existing branches of knowledge which is to be applicable to situations and scenarios with constituents carrying qualitative as well as quantitative properties. Thus, mathematics although carried by the theory, is not a directly suitable symbolism, however, natural language appears to be. Such language due to its complexities, use of metaphors etc. needs to be formalised to lead into an inferential structure capable of predicting the occurrence of outcomes and leading to a method of generalised product and systems design. This is carried out by a form of predicate logic based on a diagram of simple, related sentences showing the structure of 'system' with constituents which preserve their identity and chosen properties.
The proposed theory takes into account uncertainties associated with activities of human and other constituents. However, human constituents can exhibit will, ambition, caprices etc. which has consequences : 1. The number and variety of properties of constituents is not bounded, 2. The predictive power of a theory is strictly limited : the principle of 'uniformity of nature' no longer holds. This raises the question of use in general of symbolic theories in situations and scenarios with living especially human constituents.

 

2002-092
CAUSAL SYSTEMOLOGY: COMBINING GENERAL SYSTEM THEORY WITH THE UNIVERSAL LAWS OF DEVELOPMENT OF MULTILEVEL SPACE-TIME-ENERGY CONTINUUMS
Alexander Pelmenschikov,1,2 Alla Bolyanovskaya,2,3 Inna Shakhlevich,3 and
Vitali Polyakov3
1Italian Academy of Management and Psychosystemology, Via Artigianato 2, 20061 Carugate, MI Italy, 2Associazione per lo Studio dei Sistemi Italo-Russo (ASSIR), Via Artigianato 2, 20061, MI Italy, and 3International Scientific School of Universology, Prosp. Shokalskogo 29/2 87, 129221 Moscow, Russia
With the aim to achieve the maximum universality and holism, Causal Systemology (CS) (V.Polyakov, 2001) integrates (i) the basic concepts of General System Theory with (ii) five general philosophical principles (duality, analogy, causality, periodicity, and alternativeness) within three sign-numerological models. These models represent the most universal {space-time}, {space-energy}, and {time-energy} aspects of hierarchic and synergetic cause-and-effect relations (the upper/lower triangle corresponds to the continuum of cause/effect). Transcending the "basic philosophical question", CS also puts forward the principle of mutual causality of matter and consciousness.
CS considers mankind as one of the interconnected multilevel cosmic systems, with stable prosperity of whole human society and any its sub-system being primarily dependent on the harmonization of synergetic/hierarchic interactions at/between all the 7 levels of system relations in accordance with the "ideal vector of development" imposed by the cosmic super-system (3 superior levels not presented in the models (7+3=10)). For a social system the "ideal development" is defined by synthesizing these three models:
1) the model of "attractors" or purposeful orientations (model 1),
2) the model of stage-by-stage development (model 2), and
3) the model for prognostication of qualities and the most favorable way of development (model 3), which couples Pythagorean numerological matrix method with the Kelly's method of repertory grid and allows to synchronize a system and all its sub-systems with the dominant rhythms of rotations of Earth around its axis and Sun.
CS proposes systemic approaches to the global problem of renewal of all the aspects of human life: politics, economics, education, healthcare, etc. The corresponding projects are represented by different areas of Universology: Causal and Systemic Analysis, Prognostication and Diagnostics of Systems, Cardinal Psychology, Akmeological Psycho-futuring, Integral Education, Social Systemology, Universal Management, etc. Polyakov, V. (2001). Universology (in Russian), VEVER, Minsk, Byelorussia.

 

2002-093
INSTITUTIONAL COORDINATION PROBLEM: AN OBSTRUCTION TO PROMOTION OF INDUSTRIAL BACKWARD LINKAGE
Mohamad S. IMAN*, Akiya NAGATA
School of Knowledge Science, Japan Advanced Institute of Science and Technology, Tatsunokuchi, Ishikawa 923-1292, Japan
E-mail: mohamad@jaist.ac.jp
This paper shows that the performance of industrial backward linkage from Foreign Direct Investment (FDI) companies to local suppliers is largely determined by how well incentive structure works to encourage participating parties to function properly. As North (1990) stated, it is a well functioning institution that shapes the incentive structure of players. It is arguable that to achieve well performing backward linkage promotion the host country should pay more attention to institutional coordination, rather than the issue of strict or loose policy toward FDI.
Based on their experiences in implementing strict policies toward FDI such as local contents requirement, which have led to inefficient FDI as well as local companies, developing countries tend to change their policies to the direction of liberalization. They believe that liberalization policy attracts international market oriented FDI companies, which produce international standard products and capture scale economies. Such companies give more opportunities of backward linkages to local companies and help the locals to upgrade their technological capabilities.
In line with the global market orientation, however, FDI companies also tend to globalise their procurement and supply chain management through global or cross sourcing strategy. This brings local companies into severe competition vis-a-vis global suppliers. Unless conditions exist to allow local companies to be competitive, liberalization policy does not necessarily imply the above opportunities.
From interviews with Japanese MNC investing in Indonesia and local companies it is clear that backward linkages in Indonesian machinery industries still remain low even though Indonesia has been implementing liberalization policy since the second half of 80s. It is largely because of the institutional coordination problem indicated by, among others, the lack of consistency and coherence in policy and underdeveloped business environment, such as information asymmetry, rent seeking lobby, difficulties to access financial and technological facilities. These ultimately hinder local companies to be more competitive.

 

2002-094
SOME QUANTITATIVE ANALYSES OF THE MEI-SYSTEMS THEORY*
Wang Huanchen, Management School, Shanghai Jiaotong University, Shanghai, 200030, China
(hcwang@mail.sjtu.edu.cn)
At first, the fundamental concept of the MEI-Systems Theory is introduced. Here the "MEI-System" is the system of the combination and interaction of the materials, energy and information. MEI-System is a fundamental system in the world. According to this theoretical research approach the theoretical foundation of the sustainable development could be found and the fundamental sources of the human wealth could be illustrated. Then, a W-Diagram of the MEI-Systems analysis is given for the quantitative illustration of the human wealth. Thirdly, self-increasing conditions of the total production value of an economic system is studied. Finally, surplus limitation rates of the economic system is discussed based on the MEI-Systems Theory.
* Supported by the National Natural Science Foundation of China (79870052)

 

2002-095
ANALYSIS OF CORPORATE GOVERNANCE SYSTEMS AND CORPORATE GOVERNANCE INFORMATION SYSTEMS
Li Weian, Lin Runhui, International Business School, Nankai University, Tianjin 300071, China)
linrunhui@263.net
Corporate governance has gained more and more attention both in theory and practice as a world wide research topic. It is very necessary and urgent to study corporate governance today with the globalization of economy and the development of information and network technology. In this paper we study corporate governance as a system, a system of mutual function process among the parties involved in corporate governance. The concept and characteristics of Corporate Governance Systems (CGS) are analyzed. Good governance relies on the scientific decision making mechanisms and the premise is timely, accurate and complete information. But in CGS the information bottle-neck obstructs the information flow among the stakeholders. To solve above problems and find good approaches to guarantee the effectiveness and efficiency of CGS in new economy, we adopt information and network technology into corporate governance and present the concept of Corporate Governance Information Systems (CGIS). The meanings, connotation, characters of CGIS and the approaches how the CGIS breaks the information bottle-neck are analyzed. Then the relation between CGIS and CGS is discussed and the support of CGIS to CGS is studied. The different functions and sub-systems of CGIS are also presented in the paper.
With the development of information and network technologies and the ever-changing, uncertain, complex environment of enterprises, information is getting more and more important to guarantee the effectiveness and efficiency of corporate governance. It is helpful and important to study corporate governance as a system. The adoption, construction and application of CGIS are necessary and operational to good governance.
Supported by National Natural Science Foundation of China and Social Science Foundation of Education Ministry of China.

 

2002-096
THE INFLUENCE OF INDIVIDUALS' SYSTEM-VIEW ON SOCIAL DECISION-MAKING
ANALYSIS WITH A QUESTIONNAIRE SURVEY FOR RESIDENTS IN NEIGHBORING AREA ON NUCLEAR POWER PLANT
Kaori SHINOZAKI*, Akiya NAGATA
School of Knowledge Science, Japan Advanced Institute of Science and Technology, Tatsunokuchi, Ishikawa 923-1292, Japan
E-mail: kshino@jaist.ac.jp
Recently people pay much attention to social technology adoption since the relationship between technology and society is increasingly close. Problems related to building of nuclear power plants and discussions of development on genetic recombination foods are typical cases. Such technology adoptions have a characteristic of decision-making problem involved in multi-subjects. Then, these problems include extremely complex processes because each has its own expectations and anxiety.
In general, it is important to coordinate or have a common understanding on the opinions among multi-subjects. However, it has never been well elucidated how decision-making mechanism builds these concepts. In this paper we take the case of decision-making on building of nuclear power plants and analyze empirical data statistically. Then, we elucidate social decision-making mechanism and propose practical conditions for social decision-making.
Under uncertainty, a decision over an introduction of new technologies related to nuclear power plants and the pros and cons of building a new plant must be made. On the other hand, since there is information asymmetry in a real social system, people never grasp all information. Therefore, they simplify the decision-making process by complementing information shortage with some expectations.
To model the expectations mechanism for reducing complexity on decision-making, we introduce Niklas Luhmann's theory on "Trust". He categorized trust as "personality-trust" and "system-trust". Such framework of concept is effective for describing humans' decision-making process and useful for elucidating how their system-view affects it. System-view stands for one's attitude for an object while interacting with others. We mention system-view because we reveal hidden factors on decision-making. Therefore, we focus on such concepts and aim to show a system on social decision-making.

 

2002-097
THE EVOLUTIONARY AND PLURALISTIC DESIGN PRINCIPLES OF SOCIAL SYSTEMS IN THE GLOBAL AGE
Akira Tokuyasu, Faculty of Social Sciences, Hosei University, 4342 Aihara-machi, Machida-shi, Tokyo 194-0298 JAPAN
atokuyas@mt.tama.hosei.ac.jp
We formulate the evolutionary and pluralistic design principles of social systems in the global age, especially with reference to Niklas Luhmann's theory of social systems. With several paired concepts, such as national society/world society, stratification/functional differentiation, diffuse/specific, universalistic/ particularistic, inclusion/ exclusion, we illustrate the transformation of social structure and its effects on the constructive principles of social systems and the definition of individual identity. Every functional subsystem has become more autonomous, and the socio-cultural sources of individual identity have become more diversified. We then propose the concept of the intermediary unit and discuss its significance and relevance in the social systems theory. In the background of this discussion there lies the actual situation that there is no system of meaning and values valid in all the areas in the world society which has emerged in the process of functional differentiation and globalization, nor can we design such a system theoretically. We consider the significance of intermediary units, define the competition of intermediary units and meaning-value-spaces in the actual social process as the politics of meaning, and propose the new form of pluralism based on the concept of poly-contexturality. These situations seem to make the whole world more and more complex, risky, uncertain and intransparent. The evolutionary and pluralistic design principles of social systems including various intermediary units improve our capacity to cope with future risks.

 

2002-098
A SIMULATION ANALYSIS OF KNOWLEDGE SHARING IN ORGANIZATIONS
Atsushi INUZUKA*, Yoshiteru NAKAMORI
School of Knowledge Science, Japan Advanced Institute of Science and Technology
ainuzuka@jaist.ac.jp, nakamori@jasit.ac.jp
The concern with knowledge sharing in organizations has been growing. In practical phase, it is said that there are two types of management strategy for knowledge sharing. One is called "personalization strategy" which aims to interchange the knowledge in person, and the other is "codification strategy" which aims to reuse the knowledge with codifying it carefully.
This paper proposes a method to evaluate the cost effectiveness for an each strategy by simulation, focusing on not only organizational constraints but also peculiar characteristics of knowledge or organizations. After then, we find the concrete conditions in which an each strategy should be situated.

 

2002-099
RESEARCH ON INTERNATIONAL KNOWLEDGE SPILLOVER TO CHINA'S ECONOMY
Guo Lihong and Feng Zongxian
In the trend of global economy, international knowledge spillover is a popular phenomenon. As a developing country, China's economy must be affected by international knowledge spillover, especially entering WTO. Therefore, it is important to research on international knowledge spillover and how to utilize it to promote China's economy.
This paper establishes an empirical model along the train of the theory of endogenous economic growth. It absorbs the ideas of Solow (1965) and Romer (1990), thinking that technology progress is the source of economic growth of a country and it depends on the level of human capital and accumulative knowledge of research sector. In order to convenient for empirical analysis, this paper uses educational investment and the stock of technological labor to measure the level of human capital of a country. For the economic growth of a country not only depends on the domestic accumulative knowledge but also depends on accumulative knowledge of foreign countries in opening environment according to the research achievement of Grossman and Helpman (1991), this paper uses the investment of domestic research and development (R&D) and the investment of foreign R&D to measure the level of accumulative knowledge. Furthermore, for the foreign direct investment (FDI) of Multinationals is the channel of international R&D in the background of global economy, this paper uses FDI instead of the investment of foreign R&D and measures the foreign accumulative knowledge indirectly.
Based on this econometrics model, this paper using the data of China's statistical yearbooks and regressive analysis of SPSS software package, examines the contributions of the main factors affecting technological progress to China's economic growth and finds that China's technological labor and educational investment is less affecting China's economic growth but FDI is more. Domestic R&D investment is the reverse factor. Through compared with other countries such as Japan?Korea?Singapore and America, this paper also finds that the levels of China's R&D investment and educational investment of government are very lower. Therefore, this paper suggests that China's government should improve the levels of educational investment and R&D investment to raise international competition of it. At the meantime, this paper also suggests that the government should pay more attention to the human capital and adopt proper policies to promote absorbing the introducing technology from abroad.

 

2002-101
ECOSYSTEMS APPROACH FOR SUSTAINABLE DEVELOPMENT
HYUK KIHL KWON, 6704 Los Verdes Dr.#2 Rancho Palos Verdes, CA, 90275. U.S.A. E-mail: khyukihl@hanmir.com
One of the most interesting themes at 21st century is the environmental problem. It means that environmental crisis is serious to us, mankind. Now, 'Sustainable Society', 'Sustainable Future', ' Sustainable Development' are the main themes for ecologist. Also, it become clear that Environmental Ethics Education is one of important approach for sustainable future.
In this article, I intend to research that Environmental Ethics Education is one of ecosystems approach for sustainable development. I will start to explain for ecosystem theories and the trend of environmental approaches. And, I will introduce the environmental ethics education is one of ecosystems approach.
Ecosystem is a biotic and functional system or unit that is able to sustain life and includes all biological and non-biological variables in that unit. (Sven E. Jorgensen and Felix Muller. 2000) Generally speaking, the holism and reductionism are two different approaches to reveal the properties of complex systems such as ecosystems by studying the systems as a whole. We need both approaches because the natural system is extremely high complexity and it is not possible to obtain a complete and comprehensive picture of natural systems by alone, but it is necessary to synthesis important analytical results to explain system properties.
I will research the environmental problem by ecosystems approach for sustainable development. And, I will introduce the environmental ethics education is one of the ecosystems approach for sustainable development.

 

2002-102
EVOLUTION OF INTERNATIONAL COMMERCE IN A GLOBAL COMMUNITY
Jennifer Hinman, 680 North 500 West #304, Provo, Utah 84601
As the world becomes increasingly connected by communication and transportation, persons of different nationalities and origins are becoming more aware of each other. Such awareness has altered the nature of business and international expansion among those countries that are most connected to each other. For example, Japan currently shows visible signs of strong U.S. cultural influence in the Japanese media, movies, music, and styles, and the Japanese frequently visit the U.S. for both business and vacation. Such ties with the U.S. have contributed to a steady demand for U.S. goods, including vintage clothing-An old pair of Levis sold at a U.S. thrift store could sell for hundreds or even thousands of dollars in Japan. International commerce is changing for those countries that are most connected and aware of each other through media, communication, and transportation which facilitate cross-cultural awareness. Although trade is frequently analyzed solely by economic theories, as countries become more of a global community, an integrated look at both communication, economic, and other cultural theories provides a more complete view of the evolution of international trade.

 

2002-103
POLITICAL AUTHORITY IN A DEMOCRATIC SOCIETY: A SYSTEMS PERSPECTIVE
Park, Hyo-chong, Department of National Ethics Education, Seoul National University, Seoul, Korea.
This study is an attempt to examine the question whether the authority institution which operates in a democratic society constitutes an opening system or an autopoietic system. On the basis of the Korean experience, it argues that the holders of political authority with specific values and rules can behave independently of the external environment, the democratic social system. Its conclusion is that an authority institution should be viewed as an autopoietic system, which is internally closed and open in its relation to the wider social context.

 

2002-104
A QUASI-TRANSCENDENTAL INTERPRETATION OF HERMAN DOOYEWEERD
FP (Petrie) Coetzee, Technikon Pretoria, Pretoria, South Africa
Herman Dooyeweerd was a 20th Century Dutch and Christian philosopher who devised a comprehensive philosophy which he termed The Philosophy of the Cosmonomic Idea (or Cosmonomic Philosophy, for short) (Dooyeweerd, 1953, 1955, 1957, 1958, 1968, 1979). This philosophy is systemic in the sense that it portends to account for all of reality. He was adamant that this philosophy is a Christian philosophy; that is, that it emanates from specifically Christian presuppositions. He consequently set out to show how all non-Christian philosophies bear antinomies or contraries while only his own philosophy remains consistent. His philosophy can itself however, on logical grounds, be shown to rest on infirm foundations. Nevertheless, the philosophy does bear some useful and potentially powerful notions. Some of these have already been employed in systems thinking, others still stand to be explored for their application in this sphere. A most central notion in the Dooyeweerdian scheme is that of disclosure of meaning or of sense (sense-disclosure), with this notion acting as nucleus of a whole cluster of Dooyeweerdian concepts. In an attempt to transfer some of the systems-oriented ideas of Dooyeweerd, and the notion of sense-disclosure in particular, to a less infirm philosophical foundation, the edifice of Dooyeweerd can be translated from its specifically Dooyeweerdian, Christian, and transcendental foundation to an immanent or social metaphysical one. This can be done by emulating Werner Ulrich (1983) in his quasi-transcendental interpretation of Immanuel Kant for deriving his critical systems heuristics methodology of systems analysis. This paper demonstrates such a quasi-transcendental interpretation of Dooyeweerd and of his notion of sense-disclosure with its associated cluster of ideas. An indication is given of how this particular interpretation has contributed to the concept of the Sense-seeking Systems model of innovative systems (Coetzee, 2000).
See paper for references.

 

2002-110
A PLANNING METHOD FOR THE STRATEGY-ADAPTED INFORMATION SYSTEMS
Taketoshi Yoshida(*)and Toshiyuki Hattori, School of Knowledge Science
Japan Advanced Institute of Science and Technology, Asahidai, Tatsunokuchi, Ishikawa, 923-1292 JAPAN
E-mail: yoshida@jaist.ac.jp
This paper proposes a new method to extract the requirements for the strategy-focused information systems. This may be thought as a kind of an application of the balanced scorecard approach, which studies and investigates the management strategy from four perspectives; financial, customer, internal-business-process, and learning and growth perspectives. The proposed method produces a strategy map, balanced scorecard, and in addition to the regular pictures in the balanced scorecard approach, bird's-eye view of IT-oriented indexes. The purpose of these pictures is to articulate the requirements of information systems which are adapted for the management strategy. Consequently, we can apply the soft systems methodology to further develop the information systems. Here, the developed information systems can become to be evaluated from the four perspectives in the balanced scorecard. Finally, we will show a case study about the application of the proposed method to the planning of the information systems at a Japanese manufacturing company.

 

2002-111
THE DEVELOPMENT OF INTELLIGENT SYSTEM SOFTWARE FOR COMPANY PERFORMANCE RATING EVALUATION
Marimin1,2, 1Department of Agro-Industrial Technology, Faculty of Agricultural Technology, Bogor Agricultural University, Bogor, Indonesia
E-mail: marimin@indo.net.id
2Center for System Science and Studies of Indonesia, Jakarta, Indonesia
This paper discusses the development of a software module for company's performance rating evaluation using neuro-fuzzy techniques. The system was designed to identify and evaluate company performance rating and suggest the follow up action to maintain and/or improve the performance. The performance identification module covered the operational and finance stages. The software module was implemented on Matlab computer software, which can be used as a consultation media by company auditors.
The factors accommodated in to the system covered: identity of company, value of detail achievement rating factors, ANFIS structure, membership, rule, and suggestion. The operation and finance factors of a company were represented by fuzzy values and processed by Adaptive Neuro Fuzzy Inference System (ANFIS). The neuro-fuzzy technique described the mapping of input into output. Neural network algorithm was used to determine the maximum value of the inference result. The suggestion was derived by using fuzzy rule based inference mechanism.
The system was verified on performance evaluation of an agro-industry at Indonesia. The system was able to identify the performance rating and suggest the follow up action to maintain and/or improve the performance rating. The system is still needs to be enhanced to accommodate multi auditors simultaneously. Hence the system can be integrated into company information system.

 

2002-112
APPROACHING CULTURAL DIVERSITY THROUGH THE LENSES OF SYSTEMS THINKING AND COMPLEXITY THEORY
Satu Teerikangas, Institute of Strategy and International Business, Department of Industrial Engineering and Management, Helsinki University of Technology, P.O.Box 9500, 02015-HUT, Finland
email: satu.teerikangas@hut.fi
The present paper assesses the contribution of systems thinking and complexity theory on understanding the impact and management of cultural diversity in the context of cross-border acquisitions. Culture has become a topic of growing interest and significance in an era of increasing globalisation, yet it can be argued that it is a concept that is largely misunderstood. Hence, discourse on culture in both academic and business communities suffers from confusion, and the potential inherent within cultural diversity remains untapped.
The reasons for the misunderstanding can be seen as stemming from the way it has been approached by research in recent decades. Culture has been studied by social and management sciences alike, the former holding the longer and richer tradition. Management scientists have often taken a reductionist view to culture. For one, this shows that the message from social to management sciences has been slow to pass. For another, it seems that the prevailing reductionist worldview and philosophy of science is taken for granted by many management scientists in the study of culture. Third, approaches to culture are undermined by a Western worldview, whilst accounting for cultural diversity itself might provide a more appropriate answer. Finally, culture is often taken to mean "one" culture, although it would seem more appropriate to talk about "cultural diversity", as any event presents cultural challenges at many levels. These early findings would seem to point to a need for a more systemic view of culture recognizing its complex nature.
An example of the failures of the reductionist perspective to the study of culture can be found in research on acquisitions. As with management literature, research on acquisitions and their integration has focused on "culture-general" approaches, without specifying the applicability of these approaches in the presence of cultural diversity. The field of research looking at culture and acquisitions has not only failed to establish a culture - performance link but has also failed to provide an overview of the challenges and management of cultural diversity throughout the acquisition process.
The present research takes a holistic and transdisciplinary perspective to understanding the impact and management of culture on the acquisition process. In this paper, the conceptual work aiming to link the concept of culture to both systems thinking and complexity theory is presented. It is argued that given the holistic, flux-like and complex nature of culture, its study would require approaches recognizing these characteristics. Here, the contribution of both systems thinking and complexity theory to the study of culture is reviewed. First, the concept of culture, its theoretical and methodological evolution as well as its main research applications in both social and management sciences will be presented. Second, the contributions of systems thinking and complexity theory to the understanding of cultural diversity will be assessed through a review of their key assumptions and theories. Finally, the conclusions will be set in the practical context of cross-border acquisitions.

 

2002-114
EXTENDED LANDSCAPE THEORY FOR ORGANIZING KNOWLEDGE OF ALLIANCES
Shigemasa Suganuma, Huynh Van Nam, Shouyang Wang, Yoshiteru Nakamori
In this research, we aim at extending the landscape theory by using fuzzy set theory for alliance analysis. Particularly, we reformulate Axelrod and Bennett's landscape theory by using a fuzzy partition instead of a crisp partition.
We then develop a genetic based algorithm for finding a near-optimized solution for the so-called energy function defined on the space of all fuzzy configurations.
Numerous attempts have been made by scholars to show the alliance in simulation.
The theory has potential for application to coalitions of business firms, political parties in parliaments, social networks,social cleavages in democracies, and organizational structures. So based on our simulation on alliance, we will discuss the problem of organizing knowledge

 

2002-115
RISING OF A NEW CIVILISATION: THE FUTURE OF GLOBAL SYSTEMS
Shamim Bodhanya
The potential exists for the emergence of a new civilization, that is more inclusive, participatory, and one that is more tolerant of dissent and difference. Such a civilization will be one that does not attempt to impose a single "new world order" but rather encourages multiple, complementary world orders. The current global systems have become hard-wired to entrench and perpetuate the status quo. It has become clearer in the last decade, that the situation is a tenuous one, with the potential for collapse of global systems. Weak signals pointing to the collapse of the current world order include inter alia:
The vulnerability of the world's financial systems which was demonstrated in the closing years of the 20th century in the form of the Asian financial crises, and the financial difficulties experienced in Argentina in recent weeks.
Serious conflicts and hotspots in many parts of the world including the Middle East, especially Palestine and Iraq, and conflict in the Great Lakes region of Africa.
Breakdown of democracy and the rule of law in countries such as Zimbabwe, with serious, adverse impacts on the fledgling democracy in South Africa.
The "War on Terrorism" subsequent to the September 11, attacks on the United States of America.
Increasing Xenophobia and attempts to restrict immigrants in many parts of Europe and elsewhere in the developed world.
Developing countries and less powerful groups from developed countries feeling increasingly alienated and marginalized, hence an increase in global stakeholder and protest groups that have attempted to disrupt proceedings of the powerful, such as those of the World Economic Forum (Seattle, Sydney, Doha etc.)
This paper argues that global systems are poised at the edge of chaos, with potential for falling into the abyss of anarchy and large scale collapse that will be detrimental for the human condition. Alternatively, drawing on notions of complexity theory, it argues that the time has arrived where there is the potential for spontaneous self-organisation, to a new attractor, that establishes a new trajectory for humankind. Such a trajectory is one that is more promising, inclusive and participatory. It is shown that the plethora of global systems (including financial systems, political systems, multi-lateral agencies, trans-national corporations etc.) are themselves all inter-related, and may not be viewed in isolation - rather systemic approaches are required to understand and influence their trajectories. It is further argued that trans-disciplinary approaches are imperative if we are to see a new civilisation rising. The alternative is almost too dismal to contemplate - complete breakdown of global systems with humanity relentlessly heading towards self-destruction.

 

2002-116
TEACHING COMPUTER SCIENCE IN AN INTERACTIVE ONLINE MODE
Dr. Miriam R. Tausner, College of Staten Island / CUNY, 2800 Victory Boulevard, 1N-215, Staten Island, NY 10314
tausner@acm.org
For the last few semesters I have had the privilege of being involved in online course development sponsored by the City University of New York. While the online software we are using offers new opportunities to supplement classroom teaching, my personal challenge has been to develop a mode of delivering lessons which simulates the interactive approach of classroom teaching.
I have developed a format which alternates rather small chunks of "To Read" portions with short "To Do" exercises. The "To Read" chunks are explanatory, and usually show an example or two of a concept introduced.in that chunk. The "To Do" portions present short follow-up questions which the students are asked to answer. The answers are not shown immediately but each exercise is followed by an underlined link labeled "click here to check your answer".
The answers are available with a mouse click and after verifying their own answer, the students can go back to the lesson in progress with another click of the mouse.
This semester I am experimenting with this lesson format, teaching part of a course in a traditional face-to-face mode and having the students access on-line lessons to cover the other part of the course. For consistency, I have provided on-line lessons for all of the material, even the material being delivered in the traditional classroom setting.
The online software also supports the use of student groups, allowing me to divide the class into small subgroups. I have used this subgroup approach for several homework and programming projects. The members of the group can then discuss and exchange work over the internet, and their communications are limited to the official group members. I choose these groups assigning 3 to 4 members to each, trying to make each group contain students of mixed strengths and abilities. The groups are charged with submitting a group project at the end and/or presenting their best homework solutions to the rest of the class. Several interesting group properties and outcomes have emerged from this approach.
In this paper I will discuss my experiences with online teaching in general, covering this interactive approach as well as various other ways in which I have supplemented the traditional teaching of Computer Science using online teaching software.

 

2002-117
UTILIZING COMPLEXITY TO CHANGE PSYCHOLOGICAL LANDSCAPES
Maryann Reese, MA, LMFT, Southern Institute of NLP, P.O. Box 529, Indian Rocks Beach, FL 33785. sunnlp@intl-nlp.com
Dr. Miriam R. Tausner College of Staten Island / CUNY2800 Victory Boulevard, Building 1N-215 Staten Island, NY 10314 tausner@acm.org
Since we published the paper, titled "Systems Model Provide a View of Psychological Self-Organization" in the proceedings of ISSS of 1999 we have experimented with our model of Reorganizing Psychological Landscapes and its application to the field of psychotherapy.
In refining our original model, we find it useful to conceptualize a landscape with reference points, triggers and attractor states. Following through on the landscape metaphor we envision basins of attraction which are the self-organized collections of attractor states. We find that we can effect change by perturbing the triggers and allowing the attractor states to self-organize, thereby reorganizing the whole system.
In our previous paper "Systems Models Provide a View of Psychological Self-Organization," we refer to negative and positive basins, and discuss the possibility of using chaos or confusion to alter the psychological landscape moving individuals from negative basins to positive basins.
In this paper we will present an overview of the step by step process that we use to move individuals from negative to positive basins. In essence we elicit and bring into consciousness the triggers that propel individuals into their negative basins and identify the triggers that will be used to direct them into positive basins. The intent is to enable the individual to build or reinforce a positive basin.

 

2002-118
THE EVOLUTION OF DEMOCRATIC POLITICAL SYSTEMS IN THE INFORMATION AGE: DIGITAL DEMOCRACY
Ilsoo Cho, Seoul National University, College of Education, National Ethics Education, San 56-1, Sillim-Dong, Kwanak-Gu, Seoul, R.O.K. 151-748
ilsoo@unitel.co.kr
Existing representative democracies throughout the world are undergoing major transformations with the advent of information communication technologies (ICTs). However, we know much less about ICTs' political impacts: Into what form will our democratic political systems evolve in the future? Because democracy is a complex, dynamic, non-linear and multivariate phenomenon, there is no "one truth" or "right way" to develop a new democratic political system in the information age. In this regard, it would be better to blend several disparate, but interconnected, modern theoretical and scientific developments, including (1) post-Newtonian physics, in other words, the theory of relativity, quantum theory; (2) the 20th-century evolution in democratic theory; and (3) the 20th-century revolution in ICTs. Digital democracy, the effort to enhance democracy through ICTs, can be one of the strong alternatives for the new political systems in the information age. It not only conforms to changing paradigm in natural sciences, but also can resolve some problems of representative democracy revealed in the industrial society and also take advantage of some traits that direct democracy and deliberative democracy are believed to have.

 

2002-119
COMPLEXIFYING ORGANISATIONAL DEVELOPMENT: AN HRD PERSPECTIVE
Yolles, M.I., Liverpool Business School
Iles, P. Teeside Business School
Organisation Development is a powerful methodology that has been used to help organisations change. Its power as a method that could deal with cultural change is well known. Its antecedent is said to be systemic, however its nature in this respect is quite elementary, seeing a system as a simple transformer of inputs to outputs. This can be complexified significantly by attuning it to some current development in Viable Systems Theory. The purpose if complexification is to enable the new approach to deal with much more problematic situations by developing greater insights into what is happening in the organisation, and how it can be dealt with. Traditional OD is in particular concerned with culture, power and control. However, integrating Viable System Theory enables us to develop a broader patterning of the organisation that is capable of more subtle and sophisticated distinctions.

 

2002-121
TO WHAT EXTENT IS THE "SYSTEM" IDEA USEFUL FOR UNDERSTANDING THE ACT OF KNOWING?
Andrés Mejía D., Depto. de Ingeniería Industrial, Universidad de Los Andes, Calle 19A No.1-37 Este,, Bogotá, Colombia
E-mail: jmejia@uniandes.edu.co
Some strands within the systems movement, particularly soft systems thinking and some forms of critical systems thinking, have used the system idea as the central conceptual element for understanding and describing the act of knowing. In this view, systems would be instances of conceptual schemes which organise, connect, and give meaning and sense to human experience, thus producing knowledge. Furthermore, systems as conceptual schemes would be selective in that they would take only part of the totality of experience-which would be a consequence of the finitude of human beings-in that process of making sense of reality, thus leaving out, or ignoring, the rest. That selectivity would be, at the same time, a sign of the partiality of the knowledge so produced, and of the impossibility of any realistic aspiration to absolute validity or truth.
Nevertheless there is a problem with that view of knowing, in that it does not provide a satisfactory account of the act of coming to know the meaning of other people's utterances, or interpretation. Interpretation is important for the approaches aforementioned, however, insofar as one of the objects of inquiry that their users have-either for understanding or for critique-is the views of other people. This clearly requires interpretation. But they have provided no account of interpretation at all, and therefore it must be taken for granted, assuming it to be unproblematic and independent from the act of knowing reality. But an examination of how it occurs and of what makes it possible, as Donald Davidson's work on that issue shows, suggests that the very idea of a conceptual scheme is not intelligible, let alone necessary for making sense of the act of knowing. Now, Davidson's theories can be described as essentially holistic. Two questions immediately arise: What would a holistic view of interpretation be? And what role does the system idea play in the acts of interpretation and knowing? Davidson has already gone a long way in answering the first of these questions, but arguably this answer needs to be clarified and developed so that his conclusions can be applied to what can be labelled interpretation across worldviews or paradigms. In this paper I intend to present that clarification and that development, and to give an answer to the second question about the role the system idea plays in the acts of interpretation and knowing.

 

2002-122
SYSTEMS ARE NEITHER THINGS OUT THERE IN REALITY NOR MENTAL CONSTRUCTIONS
Andrés Mejía D., Depto. de Ingeniería Industrial, Universidad de Los Andes, Calle 19A No.1-37 Este,, Bogotá, Colombia
E-mail: jmejia@uniandes.edu.co
The question "what is a system?" has been discussed by important authors within the systems movement, like Churchman and Checkland. This discussion was triggered, presumably, by a basic disagreement with other systems thinkers over whether systems could be said to exist "out there", to be part of reality. Actually within the soft systems thinking and to some extent also within the critical systems thinking traditions, so-called hard systems thinkers have been charged of wrongly believing that systems could be such objects of independent existence of the human mind. Instead, a view was proposed according to which systems are seen as actually being somewhat arbitrary mental constructions, partial and subjective, a consequence of the finite capacity of humans to make sense of the world.
Two options to choose from are then set on the table. ¿Are systems things in the world that can, for instance, be described and represented by means of systemic models? ¿Or are they mental constructions, the manifestation of our incapacity to take everything into account, that nevertheless allow us to make sense of our experience and of the world? It is my contention, and the main conclusion of this paper, that there are problems with both views of systems. As already mentioned, the soft systems tradition has criticised the hard systems view. Nevertheless, even though the core of that analysis is correct, and especially those aspects pointing at the necessary presence of normative judgements in definitions and descriptions of particular systems, there are some aspects of it which are notably misleading. These aspects have actually led soft and critical systems thinkers to propose an alternative understanding that cannot account for important features of what we have traditionally called systems. For instance, they cannot account for the fact that sometimes collectives of elements seem to us to not be arbitrarily or subjectively constructed by our minds Ultimately, I will argue, the problem can be traced back to the idea held by most authors that language represents reality, even if only according to a conceptual system or weltanschauung.
But what are systems, then? A proposal for understanding systems will be advanced, which can be described as non-representationalist, linguistic, local.

 

2002-124
USING META-MODELLING TO FORM AN INTER-CULTURAL EAST-WEST SYSTEMS BRIDGE
Cathal M. Brugha, President, The Management Science Society of Ireland (member of IFSR), Department of Management Information Systems, University College Dublin, Belfield, Dublin 4, Ireland cathal.brugha@ucd.ie
This paper uses two transdisciplinary approaches, Critical Realism and Nomology, to build an East-West inter-cultural systems bridge whereby to facilitate mutual sharing of understanding of systems theory and experience of systems practice. Critical Realism differentiates between three levels of epistemology, the empirical, the actual, and the real, so as to focus on the "real" underlying or generative dynamics in any system. Nomology (the science of the laws of the mind) uses meta-modelling of human processes to synthesise emergent theory arising from settled practice in systems into general theories. It synthesises by discovering parallels between systems at the level of generative linguistic processes.
The paper considers how nomological concepts, laws and models developed in the context of particular fields in the West can be properly transferred to the East. It explores parallels between systems that have emerged out of recent Western practice and systems associated with traditional Eastern culture that may appear to be less well developed, theoretically speaking.
Previous research focused on a correspondence between WSR (Zhu and Gu) and the three main processes in Nomology, which showed matches between wuli and adjusting, shili and convincing, and renli and committing. This paper examines the adjusting process and shows that its underlying dynamic is the finding of balances between several dichotomies. This produces two, four, eight, and sixteen activities that inter-relate sometimes as cyclical processes and other times as types. Parallels are shown with the He Tu - Former (Early Heaven) Diagram of the I Ching, the Four Noble Truths, The Eight-Fold Path and the Eight Wires of Great Learning.
The comparison is continued in the context of the Systems Development Life Cycle methodology for developing projects. Previous research had shown this to be based on three layered processes. The highest layer is concerned with commitment to phases of proper analysis, design and implementation. Within each phase there is concern with doing the different technical, contextual and situational aspects convincingly, making nine stages. Within each stage it is necessary to make appropriate adjustments to the project to complete that stage properly. This paper now proposes a fourth process, which is that within each project adjustment stage there is a requirement for the project decision-makers to make appropriate adjustments in their own behaviour in the interests of the project.
Western examples of project adjustment systems are given. A qualitative research method for diagnosing such adjustments, the Priority Pointing Procedure, is described, along with cases and software.
Finally, reasons are given for why the West might have more to learn from the East with regard to how to develop practical systems and methods for incorporating the fourth process of adjusting project decision-makers in the context of project management.

 

2002-125
TO BE REMAINED AS A HUMAN OR TO EVOLVE INTO A CYBORG? A SYSTEMS ETHICAL VIEW OF HUMAN EVOLUTION
Sangsoo Lim, Lecturer, Seoul National University, Korea sslim67@yahoo.com
Cyborg is an abbreviation of 'Cybernetic Organism'. A Cyborg could be defined as "A human who adopt technologies to enhance his original organic existence". A cyborg is a self-regulating organism that combines the natural and artificial together in one system. Marvin Minsky said that robot instead of humankind would inherit the future earth. As a matter of fact, in functional definition, man who wears glasses also be classified as a cyborg. Distinction among human, cyborg, and robot is highly complicated matter.
In the age of information society, mankind faced a new frontier of 'cyber space'. The mode of living in cyber space is somewhat different from that in real space. Everyone is getting more and more familiar with new lifestyles; cyber culture, netiquette, cyber law, cyber politics, cyber economy and the more. The distinction between cyber life and real one is getting blurred, after the evolutionary expansion of cyber life. Now people are not required to distinguish them.
The cyborg citizen who lives in cyber age is to be faced a dilemma of his basic existential status. As to the cyborg these days, Cartesian dichotomy of 'mind and body' - i.e. 'information and matter' - does not have clear meaning. In early stage, cyborg could put an emphasis on the mind so that he could adopt any technical arrangement to his own organic body without serious contemplation. He might take his organic body as a form of media conveys important information - either the information is genetic or spiritual. He focuses on the importance of the 'Ghost in the shell'. What carries importance is the mysterious ghost - emergent complexity of information, not the visible shell - mechanism of matters. However, the evolution of his body combined with technology is ended up with a tragic dilemma. The highest form of media evolution is a state of absence of media itself just as ultimate goal of body evolution is the state of bodylessness. That is to say, the ghost without any shell.
As a first generation of cyborg citizens, we are faced with the burden of choice. To be remained as a traditional organic human being, or to adopt advanced technologies to evolve into the new form of existence as a cyborg. In the highly advanced information society where the information and matter cannot be distinguished, this moment of choice might be already come to near us. It is an important bifurcation point in the track of human evolution.

 

2002-126
SYSTEMIC THINKING TO DEVELOPING A META-SYNTHETIC SYSTEM SUPPORTED COMPLEX ISSUES
Xijin Tang, Institute of Systems Science, Academy of Mathematics and Systems Sciences, Chinese Academy of Sciences Beijing 100080 PRCHINA
Email: xjtang@staff.iss.ac.cn
Jifa Gu, School of Knowledge Science, Japan Advanced Institute of Science and Technology, Tatsunokuchi, Ishikawa 923-1292 Japan
Meta-synthesis method is proposed to tackle with complex, open and giant systems by Chinese scientists Qian, X.S. and his colleagues around the start of 1990s. It emphasizes the synthesis of collected information and knowledge of various kinds of experts, and connecting quantitative methods with qualitative knowledge. Later it is evolved into Hall of Workshop for Meta-Synthetic Engineering (HWMSE), which emphasizes to make use of breaking advances in information technologies. In 1999, Natural Science Foundation of China (NSFC) approved a major project engaging to implement a pilot prototype for HWMSE for macroeconomic decision making. The project lasts 4 years (1999-2003) and gathers around 50 researchers from 16 research institutes or universities around the nation. According to a top-down framework of original design, those people participate 5 groups or subprojects of work respectively: Group 1. HWMSE platform; Group 2. Macroeconomic modeling; Group 3. Meta-synthesis method and macroeconomic method research; Group 4. Knowledge discovery and cognitive process analysis of macroeconomic decision making. There is another group in charge of whole system design and those 4 groups' work as called as Group 0.
Besides concentrating on respective research tasks, each member institution also engages in their own interested job based on their own past research achievements and understanding toward HWMSE even with an original top-down framework. Therefore, bottom-up research brought out similar methods or tools for communications, collaborations or consensus building in HWMSE. After two-year work, we have at least 4 so-called halls for meta-synthesis, all of which support brainstorming, Delphi method, and voting, while the work is main task of Group 1. Each group has developed one hall. How to integrate those research results into a whole for project sponsor is a big issue. And many debates were held among different groups and within Group 0.
Here we take a system thinking to the whole project, not only considering the integration task of current separate computer applications, but also think why those applications bubbled up as there are no extra fund for their additional work, why such a situation could not be avoided, how to tackle with those complex issues through communication-collaboration-consensus spiral process and then how to use HWMSE in practice. Even some principal investigators prefer only integrate methods instead of whole applications into the Hall 1 by Group 1, we propose our solutions as members of Group 0. The finished and normally worked halls are not a waste of this project, but enrich our understanding towards HWMSE. Then we can redesign our top-down framework based on bottom-up emerging applications. Instead a hall which integrates all methods and tools, we regard the other three halls as 3 distributed advanced seminar room for meta-synthesis, and hall at Group 1 as the master room. Those 4 rooms construct a prototype of HWMSE for macroeconomic decision making, where communication-collaboration-consensus methods, economic models and databases can be shared. As users enter the hall for one problem, they can see which room is better for its solution and enter an appropriate room for discussion, or to decompose the problem and enter different rooms for different small problems. Wu-li Shi-li Ren-li system approach is applied to resolving the integration and synthesis issues in this big project.

 

2002-127
IN SEARCH OF A TRANSCENDENTAL SYSTEMIC DESIGN, FOR INTERINSTITUTIONAL ORGANISATIONS WORKING ON COMPLEX SOCIAL AND ENVIRONMENTAL PROBLEMATIC SITUATIONS
Ignacio Peón-Escalante, Ricardo Tejeida-Padilla, Sección de Estudios de Posgrado e Investigación , Instituto Polítécnico Nacional, México
E-mails: igneo@yahoo.com, ricardotp75@hotmail.com
Human beings have the capability to realise profound process of transformation in real world systems with positive or negative consequences. Contemporary organisations, mainly those that are very complex, have the capacity to produce quicker, and deeper changes than other simpler organisations of the past, through the use of communication tools.
Transformation processes from different types of organisations have failed in the quest to solve the main social, and environmental problematic situations of today. Many different indicators tell us that the situation is getting worst at a very dangerous pace. Social, and environmental crisis have a profound effect in the quality of life of millions of people, and in the stability of all forms of life. The institutional framework doesn't have the necessary level of complexity to deal with the current situation. We need to design a new intertinstitutional framework to deal with the problematic situation with faster parallel solutions.
The purpose of this search, is a radical redesign of the institutional framework working on social, and environmental problematic situations. The name of transcendental systemic transformation process means a particular type of change in the level of complexity, consciousness, and quality of a interinstitutional organisational framework.

 

2002-128
PLANNING OF A VIRTUAL EDUCATION SYSTEM FOR A STATE OWNED HIGHER EDUCATION INSTITUTION
Ricardo Tejeida-Padilla, Isaias Badillo-Piña, Sección de Estudios de Posgrado e Investigación, Instituto Politécnico Nacional, México.
E-mails: ricardotp75@hotmail.com, ibadillo@mixmail.com
In this paper it is described the planning process of a virtual education system to be submitted for evaluation at Instituto Politécnico Nacional, a state owned higher education institution.
The paper presents that the social-ecological environment of the country has originated the emergency of a new requirements in the actual Educational System that requires new answers from the government to continue offering the public higher education demanded by society.
The actual Educational Systems should to attend key aspects such as the formation and training of the teaching body, improvement of the industry to school relationships and interinstitutional, international and interdisciplinary relationships, the integral education of geography dispersed students, as well as scarcity of resources, etc. The virtual education is presented as one of the main answers to the needs of a growing social system in demand of education.
The virtual education is visualised not only as a different modality of education to the actual system, but as an integrated system of theories, methods and modern technologies of information and communication whose purpose is to complement the performance of the teaching-learning process with excellence.
The information and communication technologies for education are integrated with the main educational theories: behaviourism and constructivism, through the principle of the systemic complementarity, to offer education anytime, anywhere.
The job concludes with a scheme proposal of a Virtual Environment System for Education in the Instituto Politécnico Nacional of Mexico whose evolution is projected in a time horizon, as well as some reflections to conclude.

2002-129
TOWARD A GUIDE TO BUILD THE CONSTRUCT OF SYSTEMS
Isaias Badillo-Piña, Ignacio Peon-Escalante, Enrique Orduñez-Zavala
Sección de Estudios de Posgrado e Investigación, Instituto Politécnico Nacional, México.
E-mails: ibadillo@mixmail.com, igneo@yahoo.com
The decisions to include or exclude certain components or concepts to construct a system, results in an other construct called boundary of the system.
Both constructs could be false or true depending on the quality of correspondence between reality and the mental processes of perception and reasoning of the observer.
In this paper we propose some guides to help how to build the system construct which make unecessary to build the construct of boundary of the system.

 

2002-130
SYSTEMIC ANALYSIS OF CAUSALITY AND IMPACTS IN MANAGERIAL PROBLEM-SOLVING
Eduardo Oliva-López, Edith R. Silva-Mendoza, Alla Kabatskaia-Ivanovna, Jorge Rojas-Ramirez, Instituto Politecnico Nacional, U.P. Adolfo Lopez Mateos, Ed. 5, 2o.piso, Lindavista D.F., Mexico 07738 eoliva@avantel.net
The objective of this paper is to describe an analytical technique that has proved to be widely useful and effective for characterizing problem situations in a large variety of cases. The experience gathered through more than 30 case studies has led the authors to devise a problem-solving model based on cause-effect analysis with commonly available information, for use by top and middle managers with analytical inclinations. Although this procedure can be used by a single analyst, its full benefits are attained only when it is applied by a team of people with supplementary views and approaches.
The literature dealing with problem characterization is relatively scarce, and this topic is usually addressed as a necessary step in a problem-solving process. However, publications dealing with problem solving methodologies, tend to focus on solution development and do not allocate to "problem characterization" the attention that this topic rightfully deserves. Such neglect cannot constitute a sound basis for effective problem solving since it taxes this process at the outset,
A series of industrial case studies carried out during the last decade with the application of widely known techniques yielded some useful results, but failed to supply information on some key aspects of the underlying causes of the problems examined. This made it evident to the authors that a more suitable tool was urgently needed for a proper characterization of managerial problems. The desirable attributes of the new analytical tool required were properly established to orientate its search and begin its development. Eventually, a web like diagram gradually emerged as the key to establish and examine the root causes of the problem, as well as its various impacts. This new tool has now been applied to a large variety of cases with satisfactory results.

 

2002-131
KNOWLEDGE, LEARNING AND SOCIETY: AN EVOLUTIONARY PERSPECTIVE ON THE ROLE OF KNOWLEDGE MANAGEMENT IN A CHANGING WORLD
Kathia Castro Laszlo, Ph.D., Syntony Quest and the Monterrey Institute of Technology (ITESM), 761 Vallejo St., Suite 302, San Francisco, CA 94123
kathia@syntonyquest.org
In today's complex and changing world, knowledge, and the processes to generate it and manage it, have become a key factor for creating competitive business advantage. However, the challenges of contemporary global societies, from human conflicts to environmental degradation, call for an expansion of the research agenda in the field of knowledge management. Issues such as the expansion of the role of corporate citizenship to promote socially and ecologically responsible operations and the development of human and social capital should become part of a purposeful strategy for creating a better future. Knowledge is power - and it is up to those with access to knowledge to decide if that power will continue to be used over others to increase the gap between rich and poor or if it will be a power to empower visions and realities based on a planetary ethic. From a systemic and evolutionary perspective, this paper explores some of the implications and key contributions that knowledge management can make for the transition toward sustainable forms of social organization. The notion of evolutionary learning community is presented as a participatory strategy for promoting learning and knowledge creation for sustainable development.

 

2002-132
THE CHALLENGE OF TECHNOLOGICAL CHANGE FOR THE DESIGN OF EVOLUTIONARY LEARNING COMMUNITY (ELC)
Alexander Laszlo, Ph.D., EGADE at the Monterrey Institute of Technology (ITESM), Fundadores Ave. S/N, Rufino Tamayo St., Col. Valle Oriente, Garza Garcia, N.L. 66269 MEXICO
alaszlo@egade.sistema.itesm.mx
There is a marked trend in the dynamics of socio-cultural change over time; a trend clearly linked to the dynamic of technological advancement. The complexity and change processes that characterize global civilization at the beginning of the 21st century point toward ecological catastrophe and social disintegration. It is now more important than ever to consider the potential as well as the limitations of technological solutions to the challenges posed by systemic complexification and change. "Technological fixes" represent nonviable strategies for the sustainable development of evolutionary leaning community (ELC). Alternative technological strategies need be considered, especially those involving technologies of human interaction, such as Social Systems Design (SSD) and, more recently, Evolutionary Systems Design (ESD). There is a need for balancing those aspects of community development that promote an already hypertrophied technological intelligence with a concomitant level of currently atrophied aspects of socio-cultural intelligence.
This paper explores the potential of soft technologies to augment the efficacy of human interaction and serve as compasses for socio-cultural evolution. Syntony, in evolutionary systems thinking, is conscious intention aligned with evolutionary purpose. It provides a guide for creating and sustaining evolutionary consonance in the dynamics of socio-cultural development, and as such, can serve as the ontological underpinning for a soft technology of sustainability. The role syntony plays in societal development is akin to that of an evolutionary guidance system for effective engagement in purposeful evolutionary action. If correctly tapped into, it could serve as a much needed booster of socio-cultural intelligence.
A methodology for tapping into the creative potential of syntony is presented and explained. It is based on a set of principles of sustainability for future creation. ESD incorporates an evolutionary ethic that serves as a scaffolding for the learning and design of ELC. As such, ESD is a soft technology for hard challenges: it provides a means to engage in the conscious creation of "systems of syntony" - not through the hard technologies that shape and mold the physical infrastructure of our planet, but through soft technologies that augment creative and constructive processes of human interaction. In doing so it provides a means to confront the challenge of complexity and change by facilitating the design of socio-technical systems in partnership with earth.

 

2002-133
STUDY ON TRANSITION BETWEEN TECHNICAL KNOWLEDGE AND PRODUCT KNOWLEDGE BY AGENT-BASED SIMULATION
Tieju Ma and Yoshiteru Nakamori
School of Knowledge Science, Japan Advanced Institute of Science and Technology, Asahidai, Tatsunokuchi, Ishikawa 923-1292, Japan
Technical knowledge means the knowledge of technician. When designing new products, a technician will consider several attributes. Product knowledge is for customers, it means customers' feeling about the products, and this feeling can be denoted by several measures. Managers get customers' knowledge and transit it to technicians, then technicians design new generation products. It is managers' task again to translate the attributes to the measures which will be evaluated by customers. We research the transition between these two kinds of knowledge and watch how they influence the next generation products by agent-based simulation. A fuzzy linear quantification model developed by Nakamori and Mina Ryoke will be used to simulate the transition between these two kinds of knowledge. This fuzzy model deals with qualitative data obtained when a number of people evaluate the same objects with categorical attributes, and the main technique is a mapping of the data of individual evaluations into the model parameter space, preserving the relations between opinions of evaluators as much as possible.

 


2002-137
A SYSTEMIC APPROACH TO THE CAUSES OF THE RELATION-IMPROVEMENT BETWEEN SOUTH-NORTH KOREA
Youn-Soo Sim, Faculty of Political Sciences and Economics, Honam University, 59-1, Seobong-dong, Kwangsan-gu, Kwangju, 506-090, Korea E-mail: shim4822@unitel.co.kr
One Korea in origin divided into the two parts by many reasons since 1945. Until the July 4 South-North Joint Communique in 1972, the two Koreas did not dialogued on the level of the political authority. This Communique was the first turning point as the first publication of relation-improvement between the two Koreas. But the relation-improvement between South-North Korea externally stopped by their different views about three basic principles. After the first turning point, the two Koreas published AGREEMENT ON ECONCILIATION, NONAGGRESSION, AND EXCHANGES AND COOPERATION BETWEEN SOUTH AND NORTH KOREA (Entry into force on February 19, 1992) as the second turning point of the relation-improvement between the two Koreas in 1991. This publication also has a great meaning in reaffirming the three basic principles of unification set forth in the South-North Joint Communique of July 4, 1972, trying to end the state of political and military confrontation and achieve national reconciliation, and to avoid armed aggression and hostilities, and to ensure the lessening of tension and the establishment of peace, expressing the desire to realize multi-faceted exchanges and cooperation to promote interests and prosperity common to the Korean people. There are many causes in the relation-improvement between South-North Korea. The environmental cause may be more important cause than their own will in relation-improvement between two Koreas. Many causes in two Koreas' relation-improvement could be well explained by concepts like 'coevolution', 'adaptive change', used in the complex systems theory.
South and North Korea in an analytical sense compose a set of 'loosely coupled systems', and is a subsystem under the higher 'international system(northeast-)'. Even small changes in the international system have had enormous impact upon the South-North relationship. The systemic change in the international system developed into a fluctuation to be followed by adaptive change (cooperative or noncooperative) that took form of either regime change in South-North Korea or the full-blown integration of South and North Korea. Accordingly, the necessity of regime in South-North Korea and the change of international system created the relation-improvement between two Koreas.
2002-139
HRM ISSUES AND ORGANIZATION DEVELOPMENT IN A MERGED CHINESE HOSPITAL: A VIABLE SYSTEMS APPROACH TO CHANGE MANAGEMENT IN THE NEW ECONOMY
Paul Iles, University of Teesside, Ms Jing Li, Liverpool John Moores University
Mergers and acquisitions raise a number of HR issues, including a sense of loss and stress paralleling other processes of loss and bereavement in a cycle of shock, denial, grief, acceptance and commitment. Individuals may experience loss of job security, status, certainty and valued relationships as well as insecurity about career prospects, promotion and pension rights. Tensions and conflicts may arise between groups from the different merging parties, and employees may feel that management policies, practices and controls may have been imposed without involvement. A variety of organization development (OD) and HRD strategies have been proposed to address these issues, including training, counselling and coaching, group and inter-group team building, and OD interventions targeted at the focal organization as a whole or at the system in which the focal organization is embedded (including other stakeholders such as suppliers and customers). However, most research has been carried out in the West, and it is unclear whether similar issues will be raised in developing countries, particularly China, as OD has been criticised as culture-bound, reliant on individualistic, humanistic Western values and situations of low power distance and uncertainty avoidance, not necessarily applicable to China.
OD interventions employing experiential, individualised and confrontational techniques (e.g. T groups) however appear to be less successful than more systems-oriented methodologies like Future Search. A critical review of Chinese business culture and management styles shows that Chinese family businesses appear to employ models of business organization different from not only Western models, but also from other Asian models. Such features as dependence on owner-managers, flexibility, emphasis on teamwork and networks and relationships, as well as aspects of systems thinking in traditional Chinese philosophy, seem to support more systems-oriented OD approaches. Such an approach is applied to a preliminary case study of a small business merger between two hospitals (a former SOE and an IOE) in Beijing, China.
This study presents a preliminary analysis of a case study of the WJ Hospital group, formed in China by the 1997 merger between Shandong Wanjie Group and the hospital of the 16th Bureau of the Railway Ministry. It uses document analysis, participant observation and a survey questionnaire sent to employees of WJ hospital to assess aspects of the 'merger climate' such as felt stress and insecurity, conflict and communication, co-operation and trust, and knowledge sharing.
An adapted OD cycle of inquiry (based on viable systems theory and involving a series of steps and recursions) is employed, involving pre-evaluation of the context and the background to the merger; exploration of the situation and purposes of the enquiry; defining the relevant system through analysing the data from the questionnaire and other data; assessing the inner and outer organizational contexts; and ensuring stakeholder participation and the participation of the relevant system through the adoption of large scale events based on whole system change principles.

 

2002-140
THE COMPLEXITY AND MANAGEMENT OF ORGANIZATION
Chen Lai-cheng, Sun Yat-sen University
The organization is one of social phenomena, and it has complexity. The problems of organizational managements are very complex. The external and internal scholars have explored the application of complexity science to managing organizations and obtained some valuable achievements. We think, the mode of contemporary organizational managements must be based upon science of complexity and systems science, and the thinking method of combining simple thinking with complex thinking, combining reducing thinking with systematic thinking and combining thinking of images with logical thinking, must be used to unite the determinacy and un-determinacy of organization, combine hardware management with software management, combine learning management with intellectualization management and combine maintenance management with innovation management.


2002-141
MEASURING AND SEARCHING FOR YOUR CHEESE: MANAGEMENT APPLICATIONS OF THE PRINCIPLE OF DUAL-PHASE EVOLUTION
Jason Jixuan Hu, Ph.D., President, WINTECHI Management Consulting, China: The American International Centre, Suite 550, 1376 W. Nanjing Road, Shanghai, 200040, USA: 114 Monroe Street,, Suite 101, Rockville, MD 20850, USA jhu@wintechi.com
Thirteen years ago at the 33rd Annual Conference of ISSS, the author presented a hypothetical Dual?phase Mechanism as a tool to understand the evolution process of self?organizing systems. The concept since then has evolved into the Principle of Dual-Phase Evolution and was taught to students in courses of cybernetics and system thinking in multiple universities. In response to the recent management best seller "Who Moved my Cheese" by Spencer Johnson, this paper shows how to apply the Principle of Dual-Phase Evolution to the case presented by Johnson, making efforts to construct a useful decision tool for executives of companies/non-profit organizations, to measure the "freshness" and the "stay-ability" of the "Cheese" they currently have in their organizations, and to identify the best timing to renew/re-engineer the mission/vision of their organizations, or in Johnson's term, to lead their organization to start a new journey to search for new Cheese.
The author also invite colleagues to explore a few key issues about self-organizing and evolutionary systems: necessary number of recursions before a self-organizing system approach to its eigen-state; stability of an eigen-state against changes in environmental/ structural variables; and the forecast-ability of the possible new boundaries that an evolutionary system might jump to when the breaking of the old boundary happens. These issues are discussed with a group of relevant examples in areas of personal growth, organizational change, business re-engineering and reform of social/economic/political institutions.

2002-142
FORECAST!"ORGANIZE AND CONTROL OF COMPLEX SYSTEMS
Zhang Benxiang, Heilongjiang Province Academy of Social Sciences, Harbin, 150018, China
On the definition of complexity and complex systems, the author realize that the law of complex systems!/ kinematic and dynamic behaviour is the fundamental problem of complexity study, in the concrete, for three kinds mainly subjects it is the problem of forecast !"organize and control of complex systems.

 

2002-145
A STUDY ON SELF-ORGANIZATION OF SOCIAL ORDER IN DIGITAL CAPITALISM
Jeong, Soon Mi, Dept of Ethics Studies, Sungshin Women's Univ., Samsun-dong, Songbuk-gu, Seoul. 136-041 KOREA
E-mail jjssmm7@chollian.net
The purposes of this thesis is for grasping the characteristics of the Digital Capitalism and the disorganization phenomenon of the social norm by the introduction of the Digital Capitalism, and for providing the possibility and limitation of the reconstruction of the new social norm on the Digital Capitalism. The procedure for achieving the purpose of this study is the procedure of finding out the answers for four questions below. (1) What is the characteristics of the Digital Capitalism? (2) What kind of phase does appear on the social norm disorganization confronting by the Digital Capitalism? (3) What is the limitation and content of the new appeared social order on the Digital Capitalism? (4) What is the role of the network and social capital for reconstructing a social order suiting for the Digital Capitalism?
As you find out the answers for these questions, we may get out of the chaos, fear, and worry from the change of the social system, disorganization of family, and the collapse of the sense of value and morality we are suffering by the introduction of the Digital Capitalism. Also, like the industrial capitalism has made the proper norms for the industrialization after occurring the great confusion of the sense of values at the beginning, the digital capitalism will create a new social order which is proper for the information society little by little.

 

2002-146
THE MODEL AND OPTIMIZATION OF FINANCIAL NETWORKS
Zhuang Xintian* Huang Xiaoyuan Nie Hongmei, School of Business Administration, Northeastern University, Shenyang 110004, China
Financial networks is the circular flow of funds in an economy. Nagnrney and Dong (2001) have researched the model of financial networks. In this paper, we propose an improved model about assets, liabilities, appropriate sizes and prices ,based on the financial networks models proposed by Nagnrney and Dong. This new improved model considers for all sectors the risks of instruments, the restraints for economic resource in financial networks, the restraints for the accountings of assets and liabilities. The improved model is more appropriate for application. We use the evolution programming algorithm to make simulations.

 

2002-147
SYSTEMATICALLY ANALYSE ON PERFORMANCE OF ENTERPRISE GREEN MARKETING
Si linsheng
The system of enterprise green marketing is multi-purpose. And green marketing performance should be a concept that integrates economy, sociality and technology. By systematically analyzing, we think that green marketing performance should be concluded sociality effect, economy effect, environment effect and enterprise developing effect.

 

2002-148
SYSTEMS THINKING APPLIED FOR TECHNOLOGY MANAGEMENT
Guillermo Granados, MSc, MBA, Director, Centre for Quality and Competitivity Development, Monterrey Institute of Technology, Campus Ciudad de México
National Quality Awards represent a common method for understanding and grouping quality activities. They have common characteristics, such as criteria and a systemic approach for activities grouped in practices. Mexico has developed its National Technology Award, an instrument designed to foster technology management activities, since there not many awards of this type on the world, its model could be developed with a systemic approach based on TQM awards.
National Quality Awards do not appear to share cognitive systems, since their explanations have considerable differences, most of them explain their model's origin from a functional perspective, instead of a systemic approach. A systemic approach should be more adequate, since it is supposed to be fundamental for quality systems.
A systemic approach for developing national models is presented, based on a systemic approach. This leads to reduce imperfections on the application for those models. The methodology presented has been used for the development of Mexico´s National Technology Award, 2003, also has been used for the development for a Totall Quality Model for the National Science and Technology Council in Mexico.

 

2002-149
CARTOGRAPHY OF THE VIRTUAL BUSINESS
Prof. dr hab. Kazimierz Perechuda
Wroclaw University of Economics, Institute of Organisation and Management , Department of Strategy Methods, Poland, 53 - 345 Wroclaw
Komandorska str. 118/120
Virtual organising resolves itself into the initiating and generating of causing impulses preventing the creation of temporary relation concentrations in the network. Their long term monitoring and navigating are bound to fail existing.
In the virtual organisation all hitherto implements, methods and techniques of organising governing and managing prove ineffective. That results form the fact of the subject anonymity of networks, which once created are submitted to processes of dynamic and permanent reconfiguration causing fast dying away of the subject system
The basic promise of the entry into the network is the possibility to create the coalition of resources consisting of the basic distinctive competences of the network participants.

 

2002-150
SYSTEMS THINKING IN THE REVIEW OF RESEARCH WITH HUMAN PARTICIPANTS: REFLECTIONS ON MANAGING COMPLEXITY AND CHANGE
Arne Collen, Saybrook Graduate School and Research Center, 450 Pacific, San Francisco, California 94133 USA
Email: acollen@saybrook.edu
Research using human beings for research purposes usually requires an Institutional Review Board (IRB) to scrutinize the proposed projects in regard to their potential for aversive impact on the human participants. The IRB functions as a form of human systems inquiry. It represents one kind of evaluation system, in that it puts into action a conceptual system of research ethics to judge whether the benefits of proposed research procedures outweigh their risks to humans. The ethical issues that arise in IRB review often pose major challenges and dilemmas for researchers, who may have to compromise their original research design and plan involving the application of specific research procedures to human beings. Discussing the changes in attitudes, opinions, and practices of researchers, the IRB, and host institution in the three year course of developing the IRB at the author‚s institution provides the focus of this paper. To be discussed are several complexities of managing this development in the face of numerous ethical issues and dilemmas of doing human oriented scientific research. Exercising systemic thinking has helped to reveal the complexities and to manage the IRB as a complex and ever-changing human activity system.

 

2002-151
THE CHALLENGE OF POSTMODERN PHILOSOPHY AND THE RESPONSE OF SYSTEM PHILOSOPHY
Shen, Litian; Wei, Yunfang; Chen, Hong; Ge, Xiaofan, Nanjing University
Postmodern philosophy is originated in the puzzling gap of concept from industry times to information times. The challenge of this philosophy is the scientific way of thinking which has been lasted for several hundred years as the basis for science and technology since Mechanism. This paper advocates an idea on the philosophy of system science, inheriting the spirit of scientific rationality stemmed from the traditional way of scientific thinking; accepting the interaction and the interchangeability between complexity and simplicity; responding to the challenge of postmodern philosophy by synthesizing both the tradition and the future.
In the past few years, the author has done some innovative work which is relevant to the above mentioned topic, including "Theory of the evolution of information" and "Theory of big cycle on cosmos", "the concept of life of information" and "the future mankind in superman times", "the theory of synergetic" and "society control".

 

2002-152
THE "FOUR-DIMENSION STRUCTURE" AND "FOUR-FACTOR SYNTHETIC ANALYSIS" OF SYSTEMS ENGINEERING OF SCIENCE RESEARCH
Liu Jinyang, Liu Bo and Liu Dequan
1. Philosophy Department of Renmin University of China, Beijing, 100872, China
2.Social Science Department of Chengdu University of Technology, Chengdu, 610059, China
3.Xinjiang Bureau of Geology and Mineral Resources, Urimqi, 830000, China
The optimized combination of technology is very important for the practice of Systems Engineering of Science Research. The article tries to develop the "Hall Three Dimensions Structure", a general approach of Systems Engineering, into the "Four-Dimension Structure" by creating the fourth dimension-Technology Dimension. The article also analyzes the limitation of Qualitative-Quantitative analysis when we use it to solve complex problems closely related with space-time, and suggests developing it into the "Four-Factor Synthetic Analysis".

 

2002-153
RISKS IN THE FORMULATION OF POLICIES
Wang Huijue Xie Kefan Chen Yun, Business School of Wuhan University of Technology, Wuhan, P. R. CHINA
Policy risks in general include both the risks in formulation and those in implementation. This paper focuses on an analysis of the former. First, this paper analyses the major environmental sources of risks in policymaking, including physical environment, social environment, political environment, and cognitive environment. Second, this paper investigates two major types of risk in policymaking, information risk and pure risk. Information risk derives from the phases of information collection in policymaking, which results from both subjective and objective factors. Pure risk is caused by defects of the policy body, such as the lack of timeliness and the lack of systematicness. The lack of systematicness includes the inconsistency between related policies, the lack of balance between stability and development, and that of adequate openness in a policy system. Finally, this paper recommends an approach to averting risks by employing the probability theory.

 

2002-154
THE CONCEPT OF MULTI-MANAGEMENT FOR MODERN CITY ADMINISTRATION
Qiu ShuHong, Xiangzhou Government of Zhuhai (city) The People's Republic of China
It as become a tendency that the city administration is more and more likely to be a major function of the city proper gevernment. This article, based on the theory and practice of the Government of Xiangzhou District, Zhuhai, is to take city administration as a systematic integrity, a complete and organically related set, which consists of various elements, different ranges and layers. Thus, the concept of Multi City Administration (MCA) has come into being. It lays stresss on the analysis of these elements and their relations to each other, which all together form the MCA, and especially on exploring those key elememnts and layers that are of great imortance to MCA. Therefore, the author has put forward ways and policies for the improvement of the entire systematic functioning.

 

2002-155
HIGHER EDUCATION STUDY ABOUT COORDINATING SCALE, STRUCTURE, QUALITY AND RESULT
Hu shuihua Professor, Wuhan University of Technology
E-mail: hshhua@whut.edu.cn
In the article, according to developing law of higher education and real situation of higher education of China ,scale, structure, quality and result of institutions of higher learning are analysed. Coordinating scale, structure, quality and result of institutions of higher learning is studied. result of study shows, pursuing coordination of scale, structure, quality and result is developing tendency of higher education of China from talented education to popular education. Developing scale profits optimization of structure and enhancement of result . But developing scale restricts enhancement of educational quality. optimizing structure not only promotes developing of scale but also enhances educational quality and result. Enhancing quality and result is both opposed and united. We must strive to enhance result on condition that educational quality is enhanced.

 

2002-156
ORGANIZATION DEVELOPMENT IN CHINESE STATE-OWNED COMMERCIAL BANKS: A DEVELOPING ORGANIZATIONAL DEVELOPMENT PERSPECTIVE
Maurice Yolles, Kaijun Guo, PhD Student,
Liverpool Business School, Liverpool John Moores University, Liverpool, UK
There are major resource-based problems facing China's state-owned commercial banks as the country joints the World Trade Organisation. There is a need for organisational development and change in these banks. This need will be explored broadly in terms of a new cybernetic form of Organisational Development (OD) that involves "organisational patterning". The implications of applying such an OD approach to China's banks are discussed.

 

2002-157
SYSTEM DEBATE ABOUT THE OBJECTIVE OF MODERN ENTERPRISE FINANCIAL MANAGEMENT ENGINEERING
CHEN Yun1,2, XIE ke-fan2, ZHAO hua1
1.Changsha Communication University, Changsha 410076, China;
2.Wuhan University Of Technology, Wuhan 430070, China
The object of modern enterprise financial management engineering is not only a complex microcosmic economic system, but also one of the essential factors in the principle construction of modern management system. It has its own intrinsic evolution and deduction laws ,bearing strong guiding and directing natures to the practice of modern enterprise in financial management ,Besides it has important practical significance to the key position of strengthening financial management in business management .This article starts with the system debate of object model in modern enterprise financial management engineering, analysing its evolution process ,deducting the objective characteristic of modern enterprise financial management engineering, putting forward the new financial management objective model about the maximum of enterprise MVAR ,and carrying on the detailed discussion according to its intention ,characteristic and law natural contents.

 

2002-158
STOCK MACROSCOPIC BEHAVIOR BASED ON SANDPILE MODEL
Sun Bowen, Sun Ming Song, Haerbin University of Science and Technology, Haerbin, China
Because of fractal characteristic of stock, it is a reasonable choice to use sandpile model to consider self-organized criticality for stock. The macroscopic behavior resulted in self-organization from stock is the most essential behavior without impulsion outside. This research is help to hold internal mechanism of stock fluctuate, in order to meet the stock variational regulation of stock better. On the base of this, to consider the effect of impulsion outside to stock is help to understand and hold actual stock.

 

2002-159
STUDIES ON THE COMPLEX MANAGEMENT MODEL
Guolin Wu, Humanities & Social Sciences College, South China University of Technology, Guangzhou 510640, China
The premises of the complex management model are that man is an adaptive subject and influenced by occasional factors. The changes of the premises of management models need new management models. Adaptation, learning and forecast are the cores of complex management models. Complex managements include 5 rules: adaptive agent, aggregation, tagging, building blocks and complex system thinking. Complex management models do not abide by only a management model, but the integrations of efficient management models, which is the union of determinism and randomicity, of stabilization and evolvement. China Haier's OEC management model is taken as a complex management example.

 

2002-160
ON THE COMPLEXITY OF THE SOCIAL SYSTEM EVOLUTION
Zhang-Qiang, College of Humanistics, Xi'an Institute of Scientific and Technological Engineering, 710048 Xi'an,Shaanxi, China
Social system, as a kind of special system that consists as both physical and spiritical movements, possesses for more complicated and various facts of inevitability and contingency. These factors interact under certain condition, make up the complexity of the social system evolution, and play an important role in social evolution. This paper will also relate the research stated above to social practice problems, so as to get some enlightenments from this relation.

 

2002-162
ON THE RISING OF KNOWLEDGE MANAGEMENT AND ITS SIGNIFICANCE
Lin Jian, Renmin University of China Press, Beijing, 100080, China
Knowledge Management is a form of management whose aim is to enhance innovation by developing and utilizing knowledge resource. It includes knowledge and human resource management. Knowledge Management rose from the change of resource environment, technological environment and market environment, and it has become the main topic of modern management. Knowledge Management has great significance for its challenge to the traditional management models in the era of knowledge economy.

 

2002-163
FUZZY EVALUATION SYSTEM FOR AREAS OF FOREIGN DIRECT INVESTMENT
Lv Jun and Zou Xiehua, School of Management, China University of Geosciences, Wuhan 430074
As the arrival of the globalized economic time, the Foreign Direct Investment (FDI) has become the engine of promoting the development of economy in all the countries. However, the development of FDI in China is not so smooth as we expected, which is resulted from many problems. That companies did not choose the correct FDI areas is one of the most serious problems.
Depend on the research to the tend of the development of FDI and foreign experience of it, using the method of AHP, and fully considering the science overall of the appraise target, then analyzes and generalize all the factors which effect the Area-choosing of FDI, the authors believe that grade factors are made up of gain profits factor, safety factor, area factor and compete factor. To the second grade targets we should apply Deilph method and experts remarking method to assure. Thus we have constructed the index system to evaluate the areas of Foreign Direct Investment.
Based on the index system, the paper gives the algorithm of the Fuzzy Evaluation System for Areas of Foreign Direct Investment. And combining the case grasped by deep investigation, this paper will take certain a business group!/s policy for evaluating FDI areas for example, and explain it.

 

2002-164
THE COMPLEXITY AND SUSTAINABLE DEVELOPMENT OF ECO-SYSTEMS IN XINJIANG ERQIS REGION
Liu Ping1 Xu Guozhen2
1 Xinjiang Agricultural University
2 Forestry College of Central South
The complex science is the new developing stage of systems science and the developing direction of systems engineering. This article studies the system composition, structure, function and complexity in Xinjiang Erqis river region, using the basic theories and methods of the complex science. It is the preliminary study of agricultural sustainable development and Management model in whole area.

2002-165
ANALYSIS OF THE COMPLEXITY OF ENTERPRISE'S SURVIVORSHIP RISK
Xie Kefan Peng Huatao Ma Chang, Management School of Wuhan University of Technology
In this paper, we study on the enterprise's survivorship risk by applying complex system theory. The main points are as following: 1) propose the proposition that enterprise's risk originates from the uncertainty of the survivorship space, the complexity of the activities that the enterprises engage in, and the limitation of the enterprise's capability; 2) analyze the enterprise's naissance and senescence process and it's dynamics mechanism, by taking an enterprise as an ecosystem and from the point of view of ecosystem complexity; 3) discuss the enterprise's prepotency model, heredity model, health care model, immunity model, and aging model(wholly we called PHHIA model); 4) probe to the early-warning and pre-control management approaches of enterprise's survivorship risk under the circumstance of complex system.
Supported by NSFC (No.79870037)

2002-167
THE HOLO-REGULATION, SELF-ORGANIZATION AND STRUCTURE-TRANSFORMATION OF THE TECHNO-NATURAL ECOSYSTEM ON MAN'S LABOR-TECHNO PRACTICE AND ITS LIMITATION OF CONTROLLING OVER NATURE
Wang Gui-you, School of Humanities, Wuhan University
As a global holistic ecosystem, Techno-nature ecosystem is a self-regulating and self-organizing system that integrates certain labor-technical types and human's living and producing behavior into itself. It has the finality of self-organization, the natural working pattern and the diversified structure. Its holo-regulation and self-organization are in the position of wholeness, fundamentality and dominance in coordinating development with nature and man. Man's labor and technical Practice as well as his control over nature possess some characteristics of localization, indirectness, simplicity and conditionality. To control nature by man is the unity of development and coordination, the unity of freedom and necissity. Moreover, to control nature is mainly to control man's behavior. The control of local ecosystem must guarantee the whole optimum of the global ecosystem.

2002-168
ESTABLISH THE SYSTEM OF COMPARATIVE FINANCIAL AND ACCOUNTING SUBJECT UNDER THE GUIDANCE OF SYSTEMATIC SCIENCE: EXPERIENCE OF DEVELOPING FEATURES OF SUBJECT IN COMMON COLLEGES
Sun fangcheng, He jianguo, Li xiaolin, kong qinglin and Yi jianming
The research group of Accounting Department, Chongqing Institute of Technology
Introduce the nature of system and distinctiveness of comparative financial and accounting subject.
Establish the results and functions of the system of comparative financial and accounting subject.
With a systematic analysis of the accounting subject, we will further discuss the experience of developing features of subject in common colleges.
Establish the system of comparative financial and accounting subject.
Functions of establish the system of comparative financial and accounting subject.
Initial experience of developing subject features.
A. colleges are determined with the levels and features of subjects.
B. systematic analyzes developing characteristic subjects.
C. excellent teachers are trained with the levels and features of subjects.
D. develops characteristic subjects.

 

2002-169
STUDIES ON THE COMPLEXITY OF THE SUSTAINABLE ECONOMIC SYSTEM
Ding Kun and Liu Yong-zhen, Research Center of 21st Development, Dalian University of Technology
This paper is concerned with system complexity of sustainable economic development. As a working hypothesis we interpret sustainable developmental economy as an ideal economic state, and it accords with the viewpoint of sustainable development. After definition of the some essential concepts, we discuss the elements and objects of sustainable economic system and apply the complexity theories and approaches to reveal the complex characteristics of the sustainable economic system. Based on the theoretical research and practical activities, we explore the significances of studying economic complexity to help people to recognize the essence of economic procedure and reasonably deal with economic activities.

 

2002-170
TEACHING CRITICAL SYSTEMIC THINKING AND PRACTICE BY MEANS OF CONCEPTUAL TOOLS
Dr Janet McIntyre, Flinders Institute of Public Policy and Management, Janet.McIntyre @flinders.edu.au
The tool kit is a means to share critical thinking and practice tools for problem solving, governance and promoting peace. Drawing on a wide range of systemic thinkers, conceptual diagrams introduce students to tools for problem solving that is socially and environmentally just. The tools are provided as a basis for addressing challenging and complex problems through social planning and decision making. Specific problems are introduced and workshopped with professionals and graduate students in the area of public policy and management. The tools (when appropriately used) are suitable for community members, furthermore, the web-like approach resonates with Indigenous thinking patterns (McIntyre 2002). The kit is currently being adapted for Indigenous users in communities of practice (for problem solving) associated with a digital, intergenerational learning project and a housing association that address complex issues of conflict resolution on a daily basis
Ontological and epistemological challenges to thinking, research and practice are introduced by means of the conceptual diagrams and by means of workshopping case studies and examples. It is assumed that policy and practice need to be based on decisions that have resonance or radiance (Churchman 1982) that is achieved through participatory design and the ethical use of tools for thinking and caring (McIntyre 1996). The kit aims to achieve the following learning outcomes:
Hone critical and analytical skills in conceptualizing participatory policy responses to complex challenges (Jackson 1991, Flood and Romm 1996, Banathy 1996, Flood and Carson 1998).
Understand the pitfalls associated with definitions of problems and issues (McIntyre-Mills 2000).
Understand the value of considering the narratives of all participants in developing solutions, but because this is the only way to approach or approximate the ethical monad (as per Churchman 1979,1982).
Be mindful of technical knowledge, strategic knowledge and communicative knowledge (as per Habermas 1984) and spiritual knowledge and those schemata of knowledge can in fact be arranged as a mandala (as parts of a whole, rather than in compartments or hierarchies). The most basic form of energy is information (Simms 2000). Energy comprises both either or thinking (compartmentalised bits) and 'both and thinking' derived from waves or logons (Bradley 2001). Information thus can be understood as waves that can be seen as pulses creating weblike, complex and multisemic patterns of meaning that are represented in static compartments for heuristic and value laden reasons.
Be able to apply research methods in a complementary (Jackson 1991) and accountable way (Romm 2002), based on an understanding that number and meaning are linked (Dey 1994).
Be mindful that all our senses need to be employed when undertaking research and that we are part of our subject matter.
Understand that multisemic meaning systems reflect the objective, the subjective and the intersubjective (Zhu 2001) in each context from the point of view of many stakeholders.
Develop responses that are mindful of interrelated issues across sectors and disciplines and that create transcultural webs of meaning (McIntyre-Mills 2000) for a shared future.

 

2002-172
ON THE AGE AND CULTURAL NATURES OF PANSYSTEMATOLOGY
Yang biyi 1, Yangshuo 2
(the associate professor 1, assistant professor 2, the Educational College of Chongqing, Chonging, China 400067)
The deep research to the complicacy of the Systematology caused the appearance of a series of theories of modern science such as cybernetics. Pansystematology, as a new branch of the Systematology, is the specific description to the extended systematology. Undergoing the half century's collecting, summing and developing work, it has already become a kind of newly international influential academic theory. As the product of the great science age, Pansystematology, a across-region research, exhibits the characteristics of the methodology of the five relations, the seven points and the eight apperceptions. And because it melts the eastern culture together with the western culture, Pansystematology is also connected with the four thoughts, which make it not an ordinary but a special Systematology. Both Pansystematology and Systematology outgrow from natural science realm, and are being deepened and extended under the background of the different studies coming into blending with each other. Systematology, which deeply exposes the complex relationship of the different aspects of objects, has become the most leading theory in the development of the modern science. However, Pansystematology is an advanced explanation to the compounding and expanding nature of all the aspects of systematology. Although it needs more probing and research, Pansystematology theory still can be called an innovating, multi-layer, netlike across-study research of Systematology, whose significance does not exist in its contribution to today's social life but in correspondence of people's thinking ways after the world being networklized. To us surprise, this advanced thought in fact comes from Chinese ancient traditional culture. As an ongoing experiment of the systemic philosophy research, and also an innovation applied in the exploration of all studies and philosophy theories that can expand the Pansystem's five relations idea of Great Systematology, Pansystematology theory will play a very important role in the future's scientific development.

 

2002-173
ECONOMIC INTEGRATION IN ECONOMIC GLOBALIZATION FROM THE PERSPECTIVE OF SYSTEMIC STABILITY
Kang Sheng, Hangzhou Teachers College
According to the systemic theory, in order to sustain the survival and developmental action and motivation for a system of complexity, or to keep the systems characteristic continuance and orderly evolution, we need an essential condition, i.e., the system should have some bound in its openness, and there should be some balance and tension kept between the systems certain stability and counterpart. In a system of complexity, too much flexibility and looseness in the configuration and institution will easily lead to a loss of the system's self-stabilization, and thereafter, a loss of ground for its existence and development; besides, if the configuration and devices are too rigid, the system will lose its self-creation and the systemic evolution and development will also be deprived of activity and motivation. The clarifying momentum in economic globalization and regional or global economic integration just gives a thorough reflection of this theory of system. They are not apparently simple economic phenomena but essentially exercises of the nature of the system of complexity. First, economic globalization, in its nature, is an evolution of complexity in economic system. While cell systems of different levels grow freer and open wider inside the huge system, and while the modern communications and information industry develop further, the tension and speed largely increase in the counter action and reaction of the cell systems and economic variables. As a result of economic globalization, the world economic system becomes more and more uncertain and potentially unstable. Second, economic integration is a deeper evolution of the structure of organizations in the world economic system. The economic integration is, by its nature, to enable the complicated world an economic system to form a better-organized structure by itself so as to meet the needs of economic globalization. In this way, the internal activity and motivation are guaranteed within a self-creative system, and the favorable condition is sustained for a self- stabilizing system as well, In a word, all these phenomena are the necessary results of the world economic system's self organization and evolution, and the objective requirements for stable and orderly development of the world economic system, too. Therefore, a study of the economic integration in economic globalization from the perspective of systemic stability enables us to perceive its nature and to hold the rules in its process and evolution, and meanwhile it provides scientific evidence for us to get smoothly into the economic globalization while taking part in the process of economic integration.

 

2002-174
ANALYSIS OF OPPORTUNITY WINDOW ENTERPRISE'S ATTRACTION TO TALENTS
WU Tao, LI Bi-qiang, Mi Jin, School of Management, Wuhan University of Technology, Wuhan 430070, China
Products in different stage of life cycle have different profitabilities. Products' growing period gained by enterprises through searching and creating market opportunity is like an opportunity window in which enterprises can provide scarce products to gain extra-profit. This directly reflects enterprises' fast growth. The paper defines opportunity window enterprise as enterprise who creates and uses product opportunity window.
Four factors--market opportunity, talents, core technology and skill, product take turn to decide an enterprise's growth, creating a dissipative structure system for opportunity window enterprises. By using market opportunities, opportunity window enterprise can facilitate its growth and attract many talents to join it. Talents then facilitate developing and using of new technologies in the enterprise. New technologies then lead to new products that can meet the requirements of market. New products then create new market demand and a new market opportunity. Moving in this circle, opportunity window enterprise continuously exchanges substance and energy with market and puts up a complicated character of hypercycle.
The extra-profit of opportunity window enterprise comes in two ways. First one is from outside-seller's market of product's growth period. The other one is from inside--extra-value labor in the enterprise, which is created by high harmony existing among different positions. Above mentioned analysis reflects that opportunity window enterprise has an internal character-creativeness. Based on analyses of need hierarchy theory and related theories, the paper concludes that 1. Social flow of human resources is from opportunity window enterprises to general enterprises; 2. Human resources flow in enterprise is from opportunity-creating department to mature product department.

 

2002-175
DYNAMIC MECHANISM DESIGN FOR SUPPLY CHAIN SYSTEM BASED ON VALUE FLOW OPTIMIZATION
WU Tao1, LI Bi-qiang1, GAO Jie2, School of Management, Wuhan University of Technology, Wuhan 430070, China
Application of Supply Chain Management (SCM) has gained huge achievement although its attraction to people's attention and focuses can only be traced back to less than thirty years ago. Successful applications of world SCM strategy in IBM, DELL and other top companies are inspiring its applying research. However, research in theory of SCM lags behind. Starting from optimization of product value chain, the paper focuses on dynamic mechanism design of SCM by using Synergetic Theory and Game Theory.
The optimization of value chain's total utility depends on dynamic optimization process of value flow, including proper subdivision of product value chain action, analysis of correlation of different value actions after subdivision, analysis of utility and correlation of different interest subject in value chain brought about by various value action, game analysis of search and compare of different suppliers, manufacturers, selling agents and customers. Above mentioned qualitative and quantitative analyses will bring about maximum total utility of value chain and a bright outlook of construction for it.
SCM is made up of Management integration of all value actions in product value chain. Loose supply-demand relations among different interest subjects in value chain have changed into deep supply chain relations. Therefore, a dynamic mechanism is required to support it. Under the regulation of unseen hand-market, this dynamic mechanism breaks the current balance to which enterprises have gotten accustomed. It will provide us a new balance which is more suitable to market demand by competition, cooperation, core competency and process reengineering of enterprises, management integration of supply chain. In this way, a synergetic effect, comes and gives support to enterprises in supply chain to achieve extra-profit.

 

2002-176
A SOLUTION TO THE LIAR
Xue Ping (P. Xue), The Institute of Philosophy, Shanghai Academy of Social Sciences, People's Republic of China
Zhou Bin (B. Zhou), Aetna School of Management, Jiao Tong University, People's Republic of China
The essay provides a solution to the Liar. According to it, the Liar is derived from the fallacy to hold that a set of utterances of different truth-sentences (i.e. the sentence of the form that can be expressed in English as 'W is true (or false)', or 'O(W is true (or false))' ('O' marks a quantifier)) may satisfy a condition that would lead to the consequence that each of these utterances cannot be ascribed to a truth-value if they satisfy it. Seen from the position underlying the solution to the Liar, Kripke's influential diagnosis given in Kripke (1975) is wrong, and it is a consequence of his commitment to the fallacy just mentioned. In addition, it also argues that in the strict sense of the term 'self-reference', it is fallacious to hold that a use of a referring expression may commit to the self-reference, and the appendix to this essay shows that the argument for Godel's First Incompleteness Theorem is not based on holding this claim.
Xue Ping should like to express his thanks to K C Wong Education Foundation, Sino-British Fellowship Trust, Dr J. R. Ravetz, Prof. P. F. Strawson, Dr N. Bunnin, Dr Harry Lewis and Prof. Mark Sainsbury. Xue Ping was awarded a K. C. Wong Fellowship, which enabled him to visit the University of Leeds at the end of 1991; an earlier version of the essay was written during his visit, and its revision was made during his recent visit to University ofOxford funded by Sino-British Fellowship Trust, each of the mentioned scholars read an earlier or recent version of the essay. Prof. Sainsbury also made Xue Ping know Yablo's Paradox. The responsibility for any mistake in this essay is ours.

 

2002-177
A SOLUTION TO CLASSIC LOGICAL PARADOXES OTHER THAN THE LIAR
Xue Ping (P. Xue) The Institute of Philosophy, Shanghai Academy of Social Sciences, People's Republic of China
Zhou Bin (B. Zhou), Aetna School of Management, Jiao Tong University, People's Republic of China
The essay provides a solution to the classic paradoxes discussed by Russell and Ramsey other than the Liar. According to it, each of these paradoxes is derived from confusing a certain expression with a member of a class of expressions whose existence is a condition for its being introduced as an expression or whose use's having reference is a condition for its use to have reference.
Xue Ping should like to express his thanks to K C Wong Education Foundation, Sino-British Fellowship Trust, Dr J. R. Ravetz, Prof. P. F. Strawson, Dr N. Bunnin, Dr Harry Lewis and Prof. Mark Sainsbury. Xue Ping was awarded a K. C. Wong Fellowship, which enabled him to visit the University of Leeds at the end of 1991; an earlier version of the essay was written during his visit, and its revision was made during his recent visit to University of Oxford funded by Sino-British Fellowship Trust, each of the mentioned scholars read an earlier or recent version of the essay. The responsibility for any mistake in this essay is ours.

2002-178
COMPLEXITY, THINKING SYSTEM AND INTELLIGENT MACHINE
Wang Zhikang, Department of Social Science, Zhongshan University,China, 510275,Guangzhou City, zdwangzk@163.net)

In this article three problems are discussed, they are: (1) what is complexity of system; (2) the layer structure and complexity of thinking system; (3) the possibility and Limit of realization of intelligent machine.

2002-179
COMPLEXITY THINKING AND SOCIAL DEVELOPMENT
Peng Xinwu, (Beijing Normal University, Managed College, System Science Department, Post Doctor, 100875.
Presently, ecological, economic and political problem are becoming globe complicated and nonlinear ones, which call human being for adopting new way of behavior and thinking. Modern new and rising science of complexity, general evolutional paradigm and probing way of complexity that complexity science forms change completely traditional world's outlook and thinking way of classical science. It is suitable for researching social system as a methodology of trans-subject, especially for developmental problem that belongs to researching field of trans-subject. This paper is based on absorbing some forward ideas' reason connotation about theory of occurrence, process philosophy, post-modernism and deep-ecology. And it completely checks up and reverse thinks developmental connotation, law, goal and pattern choice from every aspect by complexity thinking.

 

2002-180
QUALITY MEASUREMENTS OF EVOLUTIONARY CHANGES IN SYSTEMS
Elvira Avalos-Villareal, Isaias Badillo-Piña, Enrique Orduñez-Zavala, Sección de Estudios de Posgrado e Investigación, Instituto Politécnico Nacional, México.
E-mails: eavalosv@ipn.mx, ibadillo@mixmail.com
"Everything changes" said Heráclitus. Today a kind of change, the irreversible one, is of very much concern to management of systems. In this paper we propose that the evolutionary paradigm could be used to investigate the fundamental nature of irreversible change in systems.
The evolutionary paradigm describes how an insolated and closed system evolves toward disorder, and how an open system evolves toward order and to higher and higher forms of complexity.
The entropy concept, is proposed as an initial model for measuring the amount of irreversible change accomplished by concrete systems.
At the end of the paper some applications of the entropy model are described to improve management decisions end to analyse the degree of order and predictability in human organisations.

BOOK OF ABSTRACTS
ISSS SHANGHAI, 2002

PLENARY PRESENTATIONS


2002-136
A ROLE FOR THE PRIVATE SECTOR IN THE FIGHT AGAINST CORRUPTION
Roxana Cárdenas
Dept. of Industrial and Systems Engineering
ITESM - Monterrey Campus
Av. Eugenio Garza Sada 2501 Col. Tecnológico, Monterrey, N.L. 64849
MÉXICO
This paper is based on the results of a nation-wide study on "Governability and Private Sector Development" emphasising the problem of corruption in Mexico. In 2001, the Monterrey Institute of Technology (ITESM) signed an agreement with the General Controller of the nation to carry out a research aimed at evaluating the levels of corruption as perceived by the private sector in the different states of the country. The author was appointed member of the technical committee who designed and coordinated the research.
The first part of the study was devoted to the design and implementation of a survey applied to 6000 firms in the whole country, this included the 250 largest firms in Mexico, the 30 largest firms in each of the 32 Mexican states and a random sample statistically representative at the state level. The survey was aimed at evaluating the perceived incidence of corruption in the relationship between Government and the private sector and the elements in Government performance that may contribute to it.
The second part of the study focused on the development of proposals to fight against corruption. However, there is already an extensive literature reporting on this subject (academic studies and documented experiences of different countries) which concentrates mostly on actions that might be undertaken by the public sector. Therefore, as this study on corruption involves both, the private and the public sector, it was decided to identify proposals that may be carried out by the private sector.
The approach followed during the second part of the study involved the organization of a series of workshops with top management executives of the private sector. The aim was to identify which corrupt practices impinge the most upon the development and competitiveness of the enterprises in Mexico and, to explore strategies that they could adopt in this matter. The results of the workshops where analysed and integrated in the light of the relevant literature together with the results of the first part of the study, and lead to interesting perspectives on a possible role for the private sector in the fight against corruption.
The design of the second part of the study involved the consideration of the challenges faced by a situation that is clearly highly complex and characterised by what is called "systemic corruption", the need to incorporate a participative approach and, the interest in generating results that could lead to plausible actions.

 

2002-257
IMMINENT INTEGRATION OF THE NATURAL AND SYSTEMS SCIENCES: POTENTIAL PROBLEMS, PATHWAYS, AND POWERFUL BENEFITS
Dr. Len Troncale, Professor, Biological Sciences Director, Institute for Advanced Systems Studies, California State Polytechnic University, Pomona, Ca. 91768
E-mail: lrtroncale@csupomona.edu
Historically, the developmental pathways of the natural sciences and the systems sciences have been separated and even antithetical. But today, some of the most promising and productive new specialties in the natural sciences have emerged as both potent sources for and dependent consumers of systems science. This talk will describe how these new natural science fields are decisively contributing to future development of systems science while the natural sciences simultaneously need contributions from this stimulated progress in systems science to continue their own advance. We will recommend several pathways to overcome specifically described obstacles to unification of these two methodologies in order to ensure high productivity in each. The talk will succinctly review developments in such diverse new fields as biotechnology, bioinformatics, high throughput genomics, proteomics, and physionomics, nanotech-nology, nanorobotics, bioengineering, earth systems science, cosmological origins, massive computer simulations from physics to biology, astrobiology, large-scale data bases on species, environments, the brain and neurosciences, mapping of social and management networks, the Next Generation Internet (NGI-Internet2), and more to find their common dependency on a better understanding of how systems work. We will continue with an outline of what is similar and what is different among these new efforts in the natural sciences, and what forces are driving their newfound attention to systems problems. We will describe specific sample obstacles to science integration with systems science including the harmful role played: (1) by "discinyms," (2) by attachment to and proselytizing of one method or systems mechanism over others, (3) by set-backs due to institutional calcification, and (4) by human intellectual dynasties. It is important to recognize that there are significant pro's that promote each of these alleged obstacles because a balanced view of their dynamics would help future workers use their positive contributions while avoiding their negative impacts. Some specific pathways to overcome the supposed obstacles will include: (1) provision for a multi-authored, open-source, Internet2 SYSML "commons" data base promoting standards and connections across the widest range of systems approaches (2) new international education programs on Integrated Science that include both computer-based and distanced-learning training in the systems sciences based on Integrative Themes across the natural sciences, and initiation of the new fields of (3) Systems Pathology, (4) Systems Allometry or associated empirical approaches to systems science, and (5) Artificial Systems Research. Finally, we will attempt to present a tangible image of the benefits, utility, practical profits, value, and effectiveness that would be gained by the anticipated unification of the natural and systems sciences. The unified view of both human and natural systems that will emerge will be shown to be more appropriate for a cohesive world and the space-faring species we are becoming than our previous worldviews. The full range of practitioners from basic researchers in the various natural sciences, to workers in systems science, from business managers to socio-political organizers could profit from forewarning of the coming unification of these two powerful ideas, and a headstart on computer-based tools that help that unification to be presented in an evening workshop later in the conference.

 

2002-259
SYSTEMS APPROACH TO TRANS-DISCIPLINARY KNOWLEDGE EXCHANGE
Yoshiteru Nakamori
School of Knowledge Science
Japan Advanced Institute of Science and Technology, Asahidai, Tatsunokuchi, Ishikawa 923-1292, Japan
nakamori@jaist.ac.jp
School of Knowledge Science was established in 1998 in Japan Advanced Institute of Science and Technology, which is the first school established in the world that claims knowledge as a target of science. Since knowledge will certainly become a key concept in every field in the 21st century, the school has enlisted researchers from different fields to develop knowledge science that has a trans-disciplinary property in nature. One of the important research topics in the school is to develop systems methodologies for trans-disciplinary knowledge exchange utilizing information and communication technologies. This paper outlines a systems methodology that may contribute to knowledge science.

 

2002-405
MIDDLE HUMAN SCIENCE
John N. Warfield
The human components of systems science typically are either "macro" (grand, universal theories, too broad to be applied locally) or "micro", with specific numerical outputs, too restricted to be applied to many local issues. "Middle human science" lends itself to producing logic patterns, locally generated and interpreted, and is broadly applicable to many problematic situations, world-wide. Moreover middle human science meets very specific quality control conditions emanating from such researchers as Foucault, Friedman, Harary, and Ashby.

 

2002-406
CREATIVE HOLISM : SYSTEMS THINKING FOR MANAGERS
Mike Jackson, Director, University of Hull Business School, University of Hull, Cottingham Road, Hull, HU6 7RX
Too often managers are being sold fads and panaceas - quick-fix solutions to complex problems. As many have discovered simple solutions rarely work in the face of complexity, change and diversity. Fundamentally, they fail because they are not holistic or creative enough.
Because of the failure, in many instances, of the panaceas they have been offered, managers are looking for alternatives. They are turning towards systems thinking. They hope to learn from systems thinking how to cope with complexity, change and diversity. This hope is based on the fact that systems thinking is holistic rather than reductionist and, at least in the form of critical systems thinking, does everything possible to encourage creativity.
The talk explores the meaning of creative holism and demonstrates its value to managers.

 

 

PAPER SESSIONS

 


2002-001
LIVING SYSTEM THEORY USED AS A DIAGNOSTIC TOOL
Anders Malmsjö and Lars Lorentsson
University of Skövde, Department of Computer Science. P.O. Box 408, S-54128 Skövde Sweden Email: anders.malmsjo@ida.his.se
The purpose of this paper is to discuss the process of applying Living Systems Theory (LST) by James Miller as a diagnostic tool. The application is in the area of organisational behaviour and management and more specifically project management processes when developing computerised information systems.
The potential contributions of LST are manifold. Examples of contributions are the following: hypothesis to be tested; common terms and concepts and a theoretical framework are given as a basis for establishing relationships between different disciplines; diagnosis of living systems are possible based on normative process descriptions; suggestions on how to make new observations or to conduct experiments on a wide range of phenomena.
The focus of this paper is not on the results of the specific study per se, but on the considerations of applying LST in obtaining material and in the analyses of this empirical material. In van Gigch's terms we are performing reflections on a diagnosing process on the metamodelling level. The diagnose process was performed based on the group level in LST and the focus of the material was on the critical subsystems that process information.
We found that it was relevant to incorporate LST in the study from the beginning, otherwise the descriptions would not be adequately prepared for analyses based on LST, thereby risking that the effects of the analyses would be weak. Instead, the critical processes specified by LST should guide the analyst to what aspects in the application are key aspects that should be captured. In order to be able to find the relevant processes in the application and to be able to analyse them, a thorough understanding of them seems necessary. In our experience the critical subsystems are clearly defined in Miller's book, but to comprise all aspects of a subsystem like the Associator rests on an intimate knowledge of the process of the that critical subsystem, or else there is a risk of faulty or insufficient application of that subsystem.
The LST model is a general model and as many other general models, like the Viable System Model by Stafford Beer, for instance, it can be used as a diagnosing tool. Ill-functioned processes and problems can be identified, but we believe that it is not as easy to solve problems or improve processes based on only analyses from LST. LST is a normative and general model, and it does not cover detailed aspects on how to adjust processes in reality to function in accordance with LST. To be able to do that, a detailed and specific model of reality is helpful.
In order to make LST more available for use in organisational behaviour and management applications, we think that a handbook or guide should exist, like the book "Diagnosing the system for organizations" by Stafford Beer, which help people in organisations to apply the Viable System Model.

 

2002-002
APPLYING EXPANSIONISM TO THE PROCESS OF DESIGNING INFORMATION SYSTEMS
Anders Malmsjö and Ingvar Karlsson
University of Skövde, Department of Computer Science, Skövde, Sweden, anders.malmsjo@ida.his.se
The process of designing information systems is a complex task. In order to be able to perform a successful design, people involved in the process should be aware of what factors give rise to complexity. The purpose of this study is to elucidate those aspects that can contribute to an explanation of why the design process tends to be complex.
Börje Langefors, a pioneering system thinker in Sweden, has specified six main types of fundamental problems when information systems are designed. These are (1) human beings have narrow cognitive limitations, and the systems are (2) complex, (3) mulitidisciplinary, (4) dynamic, (5) infological, and (6) human and social, where the concept of infology deals with information and its complicated relations to data, competence and knowledge. These problems together are also a way to characterise the design process.
In this study we have used expansionism as a tool to describe some key aspects of the design process. There are authors who use the word hierarchy to capture this tool. Expansionism deals with the process of specifying a framework, which shows the relationships between simpler systems constituting a complex system. It is reasonable to say that the process of expansionism helps us to organize, to understand, to communicate, and to learn about complexity of a phenomenon
Our study is based on two extensive interviews with two experienced designers of information systems and on a literature study. The two designers work in different organisations. One of the interviewee works in a consulting agency (WM-data), the other one works in a company that manufacture cars (Volvo). Considering the process of information system design, the following basic components were identified: the designer, the user, the customer and the design itself, where the design is what eventually will be implemented in reality. The shape of the design changes from a simple design model to an implemented system. By introducing relationships between the basic components, a system model of the design situation was found. Every one of the basic components in that system is a system in itself. By applying expansionism on the first system model with the basic components, the underlying systems could be built up. The components of the designer as a system were found to be: personality, ethics, knowledge, paradigm, ability and aesthetics. When relationships where introduced a system model of the designer could be described. In the same way system models of the user, the customer and the design are shown in this paper.
The primary results of this study are manifested in the tentative system models describing the designer, the user, the customer and the design. We mean that by identifying key components of a design process and considering their relationships, the first stage of an integrated understanding is accomplished. The second stage of an integrated understanding is accomplished by using expansionism to describe the underlying system models.

 

2002-005
A MULTI-METHODOLOGICAL APPROACH TO EMERGENCY CALL HANDLING IN THE METROPOLITAN POLICE SERVICE
Raymond Rowe, Apercu Ltd, 91 Monkhams Lane, Woodford Green, Essex, IG8 0NN
This paper explores a systems science approach to evaluating and improving Metropolitan Police Service (MPS) policy toward emergency telephone call handling from 1999 to 2001.
A multi-methodological approach was adopted to identify the problem situation and agree an agenda for change. Soft Systems Methodology (SSM) and a number of other methodological techniques were used to assist in identifying the problem situation. Archive data was gathered throughout the research to inform SSM. Interviews were conducted with emergency telephone call handlers and inform SSM. Questionnaires were designed to investigate policy and procedures for emergency telephone call handlers operating in the MPS and inform SSM. A number of emergency telephone call handlers were observed and identified as case studies to inform SSM.
A multi-methodological approach was used to evaluate the policy and procedures used by the MPS and emergency telephone call handlers involved in emergency telephone call handling. Secondly, A multi-methodological approach was used to identify systemically desirable and culturally feasible changes to the policy and procedures and to debate with the MPS and emergency telephone call handlers. Thirdly, A multi-methodological approach was used to obtain agreement to implement and evaluate the effects of those changes to the policy and procedures.
The three objectives were achieved and lessons learned from the integration of multi-methodological techniques with SSM. The continual flow of data and information to inform SSM was gathered from archive data, interviews, questionnaires, observations and case studies. This was used to generate an agenda for change to improve the problem situation. The MPS implemented the changes and these were evaluated. The emergency telephone call handlers were considered cost effective in dealing with the increasing number of emergency telephone calls. The introduction of a skills-based emergency telephone call handling system has led to greater consistency in police emergency telephone call handling.

 

2002-006
IDENTIFYING THOSE ON BOARD 'THE MOVING TRAIN': TOWARDS A STAKEHOLDER-FOCUSED METHODOLOGY FOR ORGANISATIONAL DECISION-MAKING
John Simmons, Paul Iles and Maurice Yolles
Liverpool Business School, Liverpool John Moores University, 96 Mount Pleasant, Liverpool L3 5UZ, United Kingdom
Management scientists seeking to solve complex organisation problems are, in Landry and Malouin's terms, 'boarding a train that is already moving' [Landry and Malouin, 1983]. Pursuing this analogy, if the train is the issue or problem this paper offers a structured methodology for identifying train passengers [stakeholders with a vested interest in the problem] and their luggage [particular perspectives on the problem that accompany each of them on their journey] within a new model of organisational enquiry based on viable systems theory. Stakeholder analysis is a method of identifying, classifying and managing disparate stakeholder interests. The paper contends that both quality and acceptability of organisation decision making are enhanced by incorporation of the method in multiple criteria decision aids [MCDA]. Stakeholders are defined as those with a vested interest in the problem or issue who can influence the way it is defined, formulated and solved. MCDA's are characterised by several criteria actually or potentially in conflict with each other that are perceived and evaluated differently by different stakeholders.
The paper draws significantly on Banville et al's proposition that the stakeholder concept is an appropriate way of acknowledging socio-political aspects of organisation decision making i.e. those problem dimensions involving multiple and conflicting criteria that elude mathematical schema currently in use. The stakeholder model regards decisions or problems "not as objective reality but [as] a deliberate mental construction that relies heavily on the perspectives of concerned actors and contextual conditions" [Banville et al, 1998, 15]. In this way it acknowledges the pluralistic nature and complex socio-political context of organisational decision making. The paper advocates the 'soft' systems methodology of stakeholder analysis as a means of reconciling organisation concern for control of system outputs with potentially conflicting expectations of other stakeholder groups inside and outside the organisation. Its hypothesis is the incorporation of stakeholder perspectives in decision-making processes will enhance effectiveness, employee motivation and organisational justice as system outputs. The viability of the model is demonstrated by its application within a stakeholder analysis of performance management in knowledge based organisations.
The case study describes the application of the stakeholder analysis model to performance appraisal systems within universities and colleges. It views them as the 'negotiated outcome' of different interest groups, and within this gives particular emphasis to identifying employee attitudes and perspectives. Academic staff from two UK Business Schools, together with a national sample of those teaching and researching performance appraisal, were constituted as 'expert witness' stakeholder groups and views obtained on performance appraisal in their institutions. These 'expert witness' perspectives are utilised to develop a philosophy of performance appraisal for knowledge based organisations, to assess the acceptability of particular performance criteria, and to confirm the organisational justice and performance management rationales of involving appraisees in the design and modification of their organisations' appraisal systems. The potential of the 'stakeholder synthesis' method to reconcile competing claims from different stakeholder groups within performance appraisal systems is also indicated.
Evidence from the case study, together with recent developments in systems theory and OD, is used to develop a viable systems stakeholder model of performance management. This is complemented by a new methodological cycle of organisation enquiry together with the various stakeholder contributions and decisions required at each stage. The overall contention of the paper is for stakeholder analysis to be incorporated within multiple criteria decision making models where the viability of the developed system is dependant on its acceptability to a number of potentially conflicting stakeholder groups, or where decision quality is likely to be enhanced by consideration of different stakeholder viewpoints. Those 'inside' and 'outside' the systems weltanschauung acknowledge the stakeholder perspective as important but under researched. Its incorporation in models of organisation decision making is likely to have significant benefits for both groups. For those 'on the inside' it is a way of ensuring mathematical rigour in decision-making is not pursued at the expense of organisational relevance. For those 'on the outside', systems based stakeholder models contribute a more rigorous, holistic, and dynamic perspective on organisation analysis and development. For both 'camps' the method shows how management science can be utilised to achieve an appropriate balance between effective management, good governance, and organisational justice in knowledge based organisations of the twenty-first century.
Finally the paper identifies issues for further transdisciplinary research that include assessing the relative usefulness of tools and techniques advocated at different stages of the cycle of structural enquiry, and evaluating the overall utility of the systems based stakeholder model within other knowledge based organisations.
References
Banville, C., Landry, M., Martel, J.-M. and Boulaire, C. (1998) A stakeholder approach to MCDA. Systems Research and Behavioral Science, 15, 15-32.
Landry, M., and Malouin, J.-L. (1983) Pour une meilleure utilisation des experts-conseils en administration. Gestion 8, (2), 4-11, in
Banville, C. et al. op.cit., 19.

 

2002-008
TECHNOLOGY POLICY PROCESS TO COPE WITH THE COMPLEXITY OF ENTERPRIZE TECHNOLOGY STRATEGIES
Koichi Haruna, R&D GROUP, Hitachi, Ltd., New Marunouchi BLDG., 5-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo, 100-8220, Japan
In order to bridge the gap between the business decision-makers and the researchers, organizational decision making process has to cope with the complexities of the process as well as the complexity of the problem. Based on the recognition, we proposed that the innovation process should be guided by a new professional, Technology Policy Staff, who has a broader scope both for technologies and for markets and gave a framework of the policy process.(IEEE SMC 1999, Tokyo).
We made it clear what causes the complexities and showed how new digital media- enabled innovations of decision field affect this policy process. That is, Lasswell's concept of policy sciences and its process has become applicable to the problem of enterprise technology innovation, if behavioral sciences viewpoints on Technology Policy Staff are appropriately taken into consideration in terms of structure and power of the decision field. The concept of A. Dixit's Transaction-Cost Politics gave a supplemental framework for identifying the causes and the affects on the process of the imbalance and insufficiency of the information available to the participants. The key factors in implementing TPS identified through prototyping are related with activities such as supporting of spontaneous creative process, mediating participants' interests in a game under uncertain situations, enlightening and mobilizing various participants, and independence as a member of power elite.(IEEE SMC 2001, TUCSON).
This paper presents TPS's method to combine models of the vision, the recognition and the constraints into an enterprise technology policy model which can explain what constitutes business and technology platform in terms of the enterprise strategy as well as how complex it is to develop the platform. Critical factors in creating strategic enterprise technology policy include market-pull approach, potential size of market, organizational information processing capability, and the direction, timing and size of successive investments. It is closely related with BRAND.

 

2002-009
THE STUDYING OF COMPLEXITY FOR ENTERPRISE DEVELOPMENT
Li Xinchun?Tao Xueyu, School of Management, China University of Mining and Technology, Xuzhou 221008
Complexity science is one science to study the complexity and complexity system, it studies mainly the development process of the complex nonlinear system. The development of enterprise is a multi-factor, multi-administrative, dynamic changing and opening complex nonlinear system.
The enterprise development is a complex nonlinear system as the economy development principal part of our country. It possesses the unification of the structure and function. The national enterprise is a typical devotion and output opening system from its producing and managing. The enterprise changes the matter, energy and information with the around environment constantly during its daily producing and managing. On this view, the development of the national enterprise is worthy of the name of forming a squander structure. At the same time, the mutation of bankruptcy emerges in the enterprise during forming the squander structure because of the inside and outside factors effect along with the running of the market economy.
In this paper, the complexity science is used to analyze the development of the national enterprise; The qualitative and quantitative relations of the main factors for the enterprise is analyzed by studying the forming of the squander structure and mutation for the development of the national enterprise. The mutation law of the development and the development trend are forecasted by the random changing of the main factors. It provides a science and theory base for the macroscopic development and the microcosms adjusting for the enterprise.

 

2002-011
UNCOVERING SYSTEM AGENCY: A CASE FOR READING PATTERNS OF PURPOSIVE INTENT IN ORGANIZATIONS
Pamela Buckle, Faculty of Management, University of Calgary Murphy Klatt Consulting Inc. pmbuckle@ucalgary.ca
In recent years, research in areas ranging from global ecology to quantum physics has encouraged many organizational theorists to question the causal primacy of conscious human rationality in complex systems such as business firms. Contemporary understandings of complex systems now challenge the notion that leader-centric impetus may be the most powerful teleological force at work in corporations. This theoretical paper argues the need to consider the organizational system itself as an important agent, capable of having and expressing teleological intent that will often depart from the conscious intents of any corporate division, management team, or CEO.
This paper postulates a view of organizations as collective beings that possess knowledge and goal orientation that differ from that of individual organizational actors. Organizations express their intelligence and teleology through the events and activities of organizational participants. Thus, this paper argues a reframing of the term "organizational behaviour," attributing many individual cognitive and behavioural decisions to the expression of organized teleological agency of organizational systems themselves.
The paper discusses some of the difficulties inherent in reading organizations' patterns of purposive intent, and detecting the tacit logic underlying organizational dynamics in corporate settings. Despite the challenges, we need to better understand the largely-unconscious attractor patterns that govern human behaviour in workplaces. Our capacity to effectively manage the complexity of our corporations, to operate more collaboratively with myriad wisdoms in organizational settings, and to reflexively respond to the urgent call to collaboratively evolve on this planet depend on it.
2002-013
CHAOS AND ORDER THROUGH FLUCTUATIONS IN GLOBAL CAPITALISM IN THE 21ST CENTURY
Yong Pil Rhee, Seoul National University, Shillim-Dong, Kwanak-Gu, Seoul 151-748, Korea rheeyp@plaza.snu.ac.kr
It is often suggested that capitalism is an unplanned economic system. In the absence of any overall mechanism for planning productivity, it is only through periodic recession that a market system can shutdown activities which have become obsolete or uncompetitive and redirect labor and capital into thrive upon innovation and the capability to leave the past behind. Thus capitalism can be not only a very powerful constructive force but also a destructive one. This global capitalism that is one of the driving forces of globalization to some extent is a very complex economic system. We do not know fully as yet how it works. It can be assumed that global capitalism is a complex form of economic system which may be a typical nonequilibrium system functioning in the globally turbulent situations among the capitalist nations.

 

2002-014
NONCONTIGUOUS SOCIAL-SYSTEMS ANALYSIS: VERTICAL AND HORIZONTAL LINKS IN INTRA- AND INTER-SOCIETAL RELATIONS
Kenneth D. Bailey, Department of Sociology, University of California, Los Angeles, Los Angeles, CA 90095 USA Kbailey@soc.ucla.edu
Early thermodynamic systems theory focused on system internals, using the notion of an isolated system to study entropy changes within a given system. Later, social-systems theorists also focused primarily on system internals, specifically part-whole relationships, in which a part (e.g., an institution) was said to serve a particular function for the whole (e.g., a society). A continuing emphasis on system equilibrium served to maintain the focus on system internals, even though the social system was acknowledged to be an open system, whose boundaries allowed exchanges of matter-energy and information between the system and its environment. Niklas Luhmann criticized this overemphasis on system internals, and stressed the analysis of the relationship between a system and its environment. However, social-systems theory continues to be predominantly dualistic or dichotomous, emphasizing links between a system and its residually defined environment. The next logical (and sorely needed) step is to analyze simultaneously not only internal links within a given social system, but also external links between a given social system, and one or more other social systems. The basic typology for this endeavor is a fourfold model of links: (1) internal-vertical, (2) internal-horizontal, (3) external-horizontal, and (4) external-vertical. An example of a vertical link would be between a group and an organization. An example of a horizontal link would be between two groups. The four types of links are listed in the order that they have been previously recognized. Thus, while internal-vertical links were recognized in the part-whole analysis of classical functionalism, external-vertical links remain virtually invisible in social-systems theory. The increasing number and rapidity of interactions between social systems, particularly electronic information and money flows, assures that social-systems theorists cannot continue to neglect such links if they wish to claim contemporary relevance for their work.

 

2002-015
FUTURES DATA ANALYSIS BASED ON WAVELET TRANSFORM
Li Sheng1 and Zhao Dongmei , Institute of Intelligent Information Engineering, Zhejiang University, Hangzhou, 310027, P. R. China; soonl@sohu.com; 1corresponding author
Futures transaction is a common kind of venture investment in modern economic. Compared to other financial investment, it is to handle high risk actively so as to acquire high revenue. The venturousness of the trading activity often focus man's attention on the rising and dropping of futures' price and the change of supply-demand relationship. Investors pursue increase in capital and high revenue in short term by buying in low price and selling in high price. In general, it is think of as impossible to forecast futures' long-term price. Up to present, there is a few scientific quantitative analysis theory and methods worthy to be applied in practical trading. Among them, the most famous theory is wave principle posed by R. N. Elliott in 1938. This method was founded on the basis of the observation and analysis of price fluctuation in market, which provides investors a set of method to judge the future trend of market price and make corresponding decision. Despite its defect of lacking strict quantification, it is still a useful qualitative model of stock analysis.
Wavelet transform is a prevailing novel time-frequency signal analysis theory in recent years. It possesses the good characteristics such as orthonormal property, direction selecting and changeable time- frequency domain resolution ratio, which make wavelet theory a new powerful analysis method for signal processing. We try to apply wavelet transform to analyze futures data.
The thought of wavelet originates from the normalized wavelet orthonormal basis proposed by Harr in 1910. By introducing wavelet, Morlet analyzed and processed the earthquake signals and put forward the system of continuous wavelet transform up to 1980. Thereafter, Mallat united the former construction methods of wavelets by using multi-resolution analysis. Thus, the status of wavelet was founded in the classic signal analysis.
Wavelet transform is to spread the signals into the weighted sum of a family of wavelet basis. Its properties are as follows:
1. Multiple resolutions. It can observe signals at a specific scale from roughness to precision.
2. It can be regarded as band-pass filters with basic frequency characteristic to filter signals at various scale a.
3. Suitable wavelet can give the capability of express local feature of signals at time and frequency domains. Moreover, discrete wavelet transform can construct standard orthogonal system, which is helpful to detect the singular points and transient state.
We select returns ratio of futures as analysis data. By the multi-resolution analysis, we find that wavelet transform can eliminate the rising or dropping resulted from the accidental factors and reveal the major impact factors and macroscopic mutation points and demonstrate that the futures data have fractals feature. Furthermore, the study also demonstrates that a certain non-stochastic rule lies in the stochastic futures data on the surface, which indicates that futures market is predictable from macroscopic aspect.

 

2002-016
A FUZZY NEURAL NETWORK MODEL FOR FORECASTING STOCK PRICE
Li Sheng, Institute of Intelligent Information Engineering, Zhejiang University, Hangzhou, 310027, P. R. China; soonl@sohu.com
With the continued development of economics, high-speed increase takes place in capital markets of developing countries. Stock investment has become an important means of individual finance. Apparently, it is significant for investors to estimate the stock price and select the trading chance accurately in advance, which will bring high return to stockholders. In the past long-term trading process, many technical analysis methods for stock market such as K-line figure and moving average etc. were put forward. These methods are based on the statistical data generally. However, stock market is a nonlinear system in fact due to the political, economical and psychological impact factors. Thus, it is difficult for us to use traditional analysis tools to make stock transaction decision accurately. Moreover, there is usually remarkable difference in the analysis conclusions of various persons, which demonstrates they are not suited to be used by general investors.
Recently, artificial neural network, a commonly used nonlinear function approximation tool, has shown huge advantages in forecasting, style identification, optimization technique and signal processing for its good properties such as nonlinear, flexible and valid self-organization study et al. Back-propagation (BP) neural network, a typical case of neural networks, is used most widely and is more mature than other networks. Unlike the classic mathematic methods, BP networks can establish function approximation for specific input and output relationship without a certain model. Therefore, we attempt to set up a BP ANN model of traffic accident prediction. Nevertheless, traditional BP network has some weaknesses that it is easy to relapse into local minimum point and computation convergence speed is somewhat slower, which affect the enhancement of reliability and accuracy of prediction model.
So, we intend to combine fuzzy mathematics with neural network in order to improve the precision and convergence speed of prediction model. Thus, a neural network-driven fuzzy reasoning system is proposed on the basis of improved Takagi-Sugeno reasoning model. The system consists of P+1 neural networks, NN1~NNP denote the functions in the conclusions of the P rules, NN P+1 is used to calculate the fitness of each rule corresponding to input vector. The research approaches are as follows:
Step 1. Determine the number of fuzzy rules according to a certain clustering method. Accordingly, cluster training samples.
Step 2. Train the neural network NN1~NN P+1. Unlike the sigmoidal function used in the traditional network, we construct a new activation function, which expands the value scope of arguments.
Step 3. Put the fuzzy neural network into practice.
The experimental result shows that the fuzzy neural network has such properties as fast convergence, high precision and strong function approximation ability.

 

2002-017
LOGICAL FIELDS AND THE DYNAMICS OF CHANGE: FROM CONFLICT TO COOPERATION
Christine Hardy, Ph.D., Centre ECO-Mind, 24 rue du Moulin, Ormoy, 91540 France 101515.2411@compuserve.com
Semantic Fields Theory (Hardy, 1998) develops how semantic processes self-organize in the mind at a global level - creating nested intertwined networks evolving via a spontaneous connective process and instantiating a connective logic. However, the point of this paper is to explore deeper dynamics of the thinking process, especially the nonrational, analogical, and systemic aspects of natural thinking. There is an extreme diversity in the way humans think, despite the existence of patterns of thought or Logical Fields (the individual and collective mental models). The Logical Fields Model provides a systemic, evolutionary, and dynamical formalization accounting for both the patterns and the exquisite diversity. It is applied here to the understanding and envisioned resolution of the spiral of Hate-Violence in ethno-political conflicts.

 

2002-018
ASO: A SYSTEMS ONTOLOGY
Terence Kuch *, 4201 Wilson Blvd #110-327, Arlington, Virginia 22203 USA
This paper develops a 'systems ontology' in the sense described by von Bertalanffy (1969, pp. xix-xxii), and defines theoretical rules and executable algorithms for distinguishing a 'system' from whatever is not a 'system'. Based in philosophy, the argument is developed primarily from the writings of Russell, Bradley, and Wittgenstein on internal and external relations, and also from recent trends in mereology and mereotopology (Casati and Varzi, Simons, D. Lewis). 'System' is defined at three levels of increasing complexity: static, dynamic or functional, and purposive. Static systems are those to which change is not relevant. It turns out that two quantifiable measures are sufficient to identify a static system: individuation and cohesiveness. At the static level, a rigorous procedure is developed which allows all systems, and only systems, to be identified in a graph of arbitrary complexity. In a dynamic (functional) system, at least one element has an effect on another, e.g., passing data or commands, passing a stream of atoms or photons, etc., that has at least the potential of resulting in some change (in?formation) in the target element. The analysis of dynamic systems is concerned with how characteristics and identities of systems are preserved or modified as these systems change and interact with other systems. At the purposive level, the logical relation of function to purpose is analyzed, and is found to be highly complex. Some of the questions at the various levels for which answers are offered include: Can every aggregation (for example, a heap of rocks) be considered a system under some description? What kind of changes can occur and still leave a system 'the same system'? Are there 'stronger' and 'weaker' relations? How are 'relations' to be counted? If a system can be viewed as a populated structure, how do we analyze partially populated structures? Can there be two portions of a dynamic system that do not exist at the same time? Must a system have a function? a purpose? (How) can one count the number of purposes a system may have? Is a purpose of a system (assuming it has a purpose) determinable by examination of that system alone? (How) is the purpose of a system subject to change, even when the system itself has not changed? The paper ends with suggested applications of the ASO approach to real-world social and economic systems.

 

2002-019
PERFORMANCE MEASUREMENT OF CHINESE TEXTILE INDUSTRY IN 1998
Wang Xinyu, Zhou Min, Zhang Jing and Feng Wenlong, School of Management, China University of Mining and Technology, Xuzhou City, Jiangsu Province, China, postcode: 221008, Email: wxy_cumt@sohu.com
In this thesis, a data envelopment analysis model with preference information about input and output targets is set up to evaluate the economic operational efficiency of the textile industry of Chinese 31 regions. Then the stochastic production frontier function of Chinese textile industry is obtained with the data set of all DMUs' projection points on the production frontier face by regressive analysis model. An econometric regressive model is set up to explain the difference among efficiency of different regions .A system analysis and assessment about the macroeconomic operational efficiency of China textile industry is carried through, and some conclusions are valuable for decision-making.

2002-020
SO WHAT'S NEW ABOUT COMPLEXITY ?
Peter J Murray, The University of Hull, Business School, Hull HU6 7RX UK
In line with the Conference Theme of 'Managing Complexity and Change', this paper will address the extent to which the insights of what is called the New Sciences (Catastrophe, Chaos and Complexity Theory) for organizational life are novel, and to what extent they do not take managers much further forward than other theories which have questioned a classical or reductionist view of management. The link to the conference theme is provided by a new model (Ofori-Dankwa and Julian, 2001) which sets out to define four levels of complexity(sic), dependent on the system exclusivity (degree of complexity) and endurance (degree of change)
The past ten years have seen a growth of interest in the insights which the proponents of what Rosenhead (1998) terms 'management complexity' claims to provide for modern management. This author has felt uncomfortable that many of these insights are in fact little different from insights of previous writers, and that the lack of evidence for their applicability in natural science systems (discussed by Rosenhead 1998), let alone organizational situations, means that they have little proven value beyond (in some cases powerful) metaphors. The model will be used to identify those cases where the issue relates to complexity (in the sense of the number of variables influencing the situation) and to the rate of change of those variables.
The paper will take a number of the characteristics of complex systems (the phrase will include catastrophic and chaotic systems), and the insights which are claimed for management complexity, and will relate these to other (non complexity) writings, in some cases going back over decades. Thus for instance, the unpredictability of a complex system does not in itself take us further than the idea that long term planning is not a precise process (Mintzberg 1994)
It will use a case study relating to the author's own experience in teaching on MBA programmes to demonstrate the value of complexity ideas, but will evaluate these against alternative insights, again demonstrating the relationships between complexity and change.
It is hoped that the paper will make a contribution to the conference them of managing the tension between simplicity and complexity on the one hand, and stability and change on the other : the author is excited by the insights that management complexity might offer, but has yet to be convinced that they represent a significant practical improvement.
References
Mintzberg,H(1994) The Rise and Fall of Strategic Planning Prentice Hall : Englewood Cliffs NJ
Ofori-Dankwa.J and Julian,S.D. (2001), 'Complexifying Organizational theory: Illustrations using Time Research' Academy of Management Review, 26(3), pp415-430
Rosenhead, J (1998) TITLE LSE OR Working Paper London : London School of Economics

 

2002-021
ISO 9000 VALUE-ADDED AUDITING
Dr Marjan Pivka, University of Maribor, Faculty of Economics and Business, Razlagova 14, 2000 Maribor, Slovenia
E-mail: pivka@uni-mb.si
Researches have shown that the quality assurance with the formal fulfilment of ISO 90001 standard requirements does not help companies to achieve greater competitiveness and business success. The quality system compliance with the standard requirements confirms that the company has achieved such a maturity level that it is capable to define the processes (not necessarily efficiently!) and perform them according to the definitions. This recognition can be generalised for software companies also. The proposed paper will present a discussion on compliance and management value-added auditing with emphasises on ISO 9000 value-added auditing in software. Our researches shows, that that ISO 9000 auditing has long-term economic value-added only if compliance audit is integrated with management audit.

 

2002-022
STUDY ON EVALUATION PATTERN AND METHOD OF VENTURE INVESTMENT
Liu Chuanzhe Jia Yanli, School of management, China University of Mining and Technology, Xuzhou (221008), Jiangsu, China
The paper noted that it is more important to choose an appropriate object to invest than to manage it well. It is a case of the familiar classical philosophy. Because of high risk nature of high tech enterprises, it is necessary to evaluate the potential of kinds of investments in a correct and efficient way, and then to pick out the best project for growth and profit, which indicates the importance of the venture capital evaluation system.
At first, this paper compared and analyzed how to evaluate the venture capital project, then the paper provided a model for use in such evaluation. It noted five criteria for evaluation: the market attraction, the product diversity (or variety), the potential of investment return, management ability and the defense ability to the environment threats.
Then the relative importance of each was considered, market attraction and product diversity (variety) were declared as two key factors in deciding the expected return and the former is more important.
The perceived risk is decided mostly by management ability and defense ability to the environment threats. The influence of the former is more obvious than the latter. Investment return ability gives a positive indication to the expected return and also indicates the extent of the risk. It is these two considerations that give the answer to the question whether to invest or not.
Finally, a system for evaluation was given, including the evaluation procedure and approach.

 

2002-023
MEASURING THE COMPLEXITY OF CURRENCY MARKETS BY FRACTAL DIMENSION ANALYSIS
Abdol S. Soofi and Andreas Galka
Economies, like population biology, and statistical physics, consist of large numbers of individuals that are organized into dynamic, volatile, complex, and adaptive systems that are sensitive to environmental constraints. These systems evolve according to their internal structures generated by the relationships among their individual constituent members.
In studies of complex systems, the dynamical systems theories are particularly useful.
Dynamical systems theories, particularly the theory of time-delay embedding and phase space reconstruction treats a deterministic dynamic process as a one-dimensional composite system. In such a system, successive stages follow each other based on iteration of a certain rule, and which all stages are interacting with each other according to a certain law.
We attempt to use dynamical system theory to measure the complexity of currency markets by estimating the correlation dimension of dollar/pound and yen/dollar daily exchange rates (the spot rates). We test the sensitivity of the results for the exchange rates by comparing them to the correlation dimension estimates for the surrogate data that are essentially stochastic series but have the spectrums and amplitudes of the original series.

 

2002-024
THE DESIGN OF INTELLECTUAL MOVEMENTS
Stuart A. Umpleby, Research Program in Social and Organizational Learning, The George Washington University, Washington, DC 20052 USA, umpleby@gwu.edu
From time to time a small group of people makes an effort to transform society by promoting a set of ideas. Examples include any revolutionary or liberation movement, a new theory within the social sciences, or a new political or social program. This paper argues that in order for such a movement to be successful, both the ideas and the tactics used to promote it must be suited to the society in which the movement occurs. Ideas that are rapidly and widely adopted in one society may have little impact in another society. To be accepted a new message must fit the local culture. Furthermore, the way that ideas are presented and advocated may be quite different in different societies.
In an earlier paper, "Cybernetics of Conceptual Systems," I described and compared two examples - the communitarian social and political movement in the United States and the second order cybernetics movement in the scientific communities in the U.S. and Europe. The communitarian movement was largely designed and promoted by Amitai Etzioni, an Israeli who moved to the U.S. several decades ago and is now a professor of sociology in the U.S. The second order cybernetics movement was largely designed and promoted by Heinz von Foerster, an Austrian who moved to the U.S. in the 1950s and is now a retired professor in the U.S.
Other examples of intellectual movements that I am familiar with are: process improvement methods in the management communities in Japan, the US, Western Europe and the New Independent States (NIS) of the former Soviet Union; and reflexivity theory in the NIS.
I believe it is now possible to draw some general conclusions about intellectual movements, for example, why some succeed while others fail, and what factors need to be considered in order to design a successful movement. One way to structure the conversation might be to look at several influential movements in recent years to see what we can learn from them in order to design successful movements of our own. For example, I am interested in designing a movement to expand the philosophy of science to include more examples from the growth of knowledge in the social sciences. Currently the literature in the philosophy of science uses examples primarily from the physical sciences.

 

2002-025
DEVELOPING AN ECOLOGICAL QUALITY INDEX FOR A RESTORED TEMPERATE ESTUARINE WETLANDS AREA
Mitchel F. Bloom, Gordon A. Robilliard, Ted P. Winfield and Frederick G. Wolf, 104 Clifton Road N., Kelowna, BC, V1V1A1, Canada, mfbloom@shaw.ca
An ecological quality index (Index) was developed which could indicate the degree of estuarine wetlands restoration of a 13 hectare (32 acre) piece of industrial land, cleaned from industrial pollution, level in contour and rather barren in appearance. Using a team of environmental scientists and engineers and systematically eliciting their expert judgments, ten key parameters of an estuarine marsh were defined, weighted and scaled. The Index was then computed and used to project over twenty years the ecological quality of the site as envisioned by the team. In addition to the forecast, the 95% confidence level bandwidth of the Index was projected as well as the effects of various natural disaster scenarios on the Index. Applications of the methodology to other ecological sites are discussed.

 

2002-026
THE INTERACTION AND INTEGRATION OF INNER LIFE SYSTEMS AND OUTER SOCIETAL SYSTEMS FOR EDUCATIONAL TRANSFORMATION: A CHINESE ZEN PERSPECTIVE
Li, Ming-fen, National Taiwan Normal University
In the past decades, systems thinking has been studied from various perspectives, and systems theories are widely applied in different learning contexts. However, educational researchers have been placing too much emphasis on defining outer educational systems and have long ignored the inner systems with which they define and interpret outer systems. It is important to probe ways of bridging the inner and outer systems. According to Mair (1977), we live in and experience an inner society of conversational relationships within ourselves. Coombs and Smith (1998) elaborate on such an inner society and extend it to an outer society comprised of the physical world and other human beings. They frame this as duality of psychological existence, which they believe is a fundamental construct to perceive the inner and outer learning conversation of so-called self-organized learning. However, educational researchers have largely neglected such inner conversation and its interaction with the outer society in past decades.
I contend that we could situate all learners, instructors and designers within the boundless circles of educational systems, learning to cope with the indistinct nature of system boundaries, rather than let these boundaries confine our perspectives of systems. If more educational and instructional designers could delve into their own inner systems, the outer educational and learning systems and environment would be much better designed. In order to realize the transformation of our learning and educational systems, we need to focus on the transformation of both inner and outer systems. We also need to examine the emergence of systems boundaries, and resolve the boundaries among human-made systems rather than classify or categorize the systems as many systems theorists do.
Therefore, in this paper, I will first interpret the essence of and differences between inner systems and outer systems, and the interaction between them. Then, I will explore ways of integrating inner systems and outer systems, and apply them in educational and learning contexts. Most importantly, I will interpret the essence and spirit of inner life systems from the perspectives of Chinese Zen Philosophy, especially the Chinese sixth Zen patriarch's illumination of Zen spirit.

 

2002-027
MANAGING COMPLEXITY FROM WITHIN: AN EASTERN SYSTEMS PERSPECTIVE
Li Ming-fen
National Taiwan Normal University
In reference to Stafford Beer's vision that human beings are imprisoned by their own thinking, Banathy attempts to construct systems models to expand our cognitive power and enhance our ability to deal with complexity. He found that traditional science defines complexity by examining the multiple components within a system, whereas systems science defines complexity by the interaction between the system and its environment, and by the interrelationship between system components. He argues that through synthesis and expansion we can better understand the systems and their relationships to larger systems or environments. Meanwhile, we should shift from anticipating, predicting and controlling the human world to understanding the uncertainty and complexity of the environment.
Senge translates complexity of reality into simplicity of wisdom by identifying and constructing several main systems archetypes. He regards systems archetypes as powerful tools for converting complicated problems into simple communicable language. From Senge's profound systemic views, self and others are inseparable. Therefore, the purpose of applying systems thinking is not to depict the details of the component systems, and relationships among major and minor systems, but is to frame and reframe our own problems by situating ourselves within the systems which we intend to understand and interpret.
However, I think both Banathy's and Senge's approaches are inadequate to manage the complexities and uncertainties embedded in the contemporary society. Because they do not cope with the habitual power of human thinking and action, neither do they deal with the problems resulted from the distorted human interpersonal relationships in the chaotic societies. Therefore, in this paper, I will first clarify the complexity and chaos in outer society and those in inner society, and how complexity and chaos resulted from the two sources interact with each other. Then, I will inquire how the reconstruction of the outer society might be related to the transformation of inner society through the 921 Earthquake Event in Taiwan. While conducting such an inquiry, I will use various cases in the societal reconstruction of 921 Earthquake to illuminate how inner revolution might enhance the outer societal transformation. In the inquiry process, I will also pinpoint how human's inner habitual dynamics might complicate and distort the outer societal order. Finally, I will propose ways of managing the complexity and chaos resulting from both outer and inner societies.

 

2002-028
INTEGRATED MANAGEMENT TECHNOLOGY-SYSTEM APPROACH FOR COMPLICATED SYSTEMS WITH ALXA ENVIRONMENTAL REHABILITATION CASE STUDY
Su Mingshan and He Jiankun, Energy Environment Economy Research Institute, Tsinghua University, Beijing 100084
One of the barriers of the system approach application is that there are no sufficiently clear defined technologies to help the users to apply in the practical exercises. In order to overcome this barrier we have developed the relevant technologies for Integrated Management Approach. These technologies include flow analysis, characteristics analysis and transformation analysis. The flow analysis includes material flow analysis, energy flow analysis, information flow analysis, and value flow analysis. The characteristics analysis included externality analysis, sustainability analysis, and effectiveness analysis. The transformation analysis includes planning, incentive scheme design and information mechanism design. In this paper we explained these technologies. To overcome the challenge of uncertainty in the analysis participatory search approach(PRA) is also applied.
These technologies are also applied to the case study in Alxa Environmental Rehabilitation.
In the case study we applied Integrated Management Approach and applied Integrated Management Technology to get an intervene advice of the complicated management issue. Based on the results in paper of "Integrated Management Approach-System Thinking for Complicated Systems with Alxa Environmental Rehabilitation Case Study" we further analyze different integrated related options for the case: such as energy options, forestry development options, grass development options, environmental improvement options, income enhancement options, community capacity building options, institutional capacity building options, micro-credit options.
The completion of this paper is based on the partly financial support of CNSF grand(no. 79370039), Tsinghua Key Faculty Project and Ausaid ALERP.

 

2002-029
INTEGRATED MANAGEMENT APPROACH-SYSTEM THINKING FOR COMPLICATED SYSTEMS WITH ALXA ENVIRONMENTAL REHABILITATION CASE STUDY
He Jiankun and Su Mingshan, Energy Environment Economy Research Institute, Tsinghua University
Being aware of the requirement of system approach to complicated management issues we have developed Integrated Management(IM) framework which is developed based on the integrated resource management(IRM) framework we built in 1998. This paper firstly reviews the progress of system thinking for complicated management issue and explains the main idea of Integrated Management. Then we illustrate how to apply the Integrated Management for complicated management issue. The case study of Alxa environmental rehabilitation is applied in this paper for illustration.
Alxa League is situated in the western part of Inner Mongolia Autonomous Region, approximately 1100 kilometers west of Beijing, and consists of three administrative banners (equivalent to a county level division): Ejina Banner, Alxa Right Banner and Alxa Left Banner. The League itself is home to 170,000 people. It is an extremely dry area in the northern temperate zone with a total area of 270,000 km2 . Ecological degradation is indicated by long-standing droughts, destruction of grasslands and desertification involving severe sand mobilisation, and it has brought disruption to the society and economy. Approximately 30 per cent of the total area is desert and desertification proceeds along the grassland margins at an estimated rate of 20 metres per year, destroying farmlands and depositing some 70 million cubic metres of sediment annually into the Yellow River. The desertification in the Alxa League has direct and indirect negative effects on the environment and economy of the central northern China plains that is a densely populated and agriculturally important region. Our objective is to intervene the social-ecological systems through sustainable resource use and poverty reduction so as to contribute to an improved environment.
We felt that this is a complicated management issue. It is related to water supply, overgrazing, revegetation, overuse of biomass, limited power supply, limited income and investment resources, limited environmental awareness and environmental education, poor technology diffusion capacity, poor enterprise, non-efficient institution. Therefore, system thinking is applied to this study. Based on our experiences, we developed an integrated management approach for this issue. This paper also gives the result of the application of integrated management approach to the case.
The completion of this paper is based on the partly financial support of CNSF grand(no. 79370039), Tsinghua Key Faculty Project and Ausaid ALERP.

 

2002-031
COMMUNITIES AS COMPLEX SYSTEMS
Robert D Jamieson, School of Psychological Science, La Trobe University, Bendigo, PO Box 199, Bendigo, Australia, r.jamieson@bendigo.latrobe.edu.au
After considering the value of a systems approach to the understanding of locality and relational communities in terms of some of the key concepts in the systems lexicon this paper focuses on Sense of Community (SOC) an emergent property which may be encouraged by the effective operationalisation of systems ideas at the community level.
Where the intention is to develop a community then SOC may be a useful indicator of the progress towards this objective. SOC is a subjective response which reflects a respondents level of connectedness (as opposed to isolation), influence (as opposed to powerlessness), resources (as opposed to impoverishment) and the attractiveness (as opposed to aversiveness) of the community in question.
The results of a longitudinal study of a community development project conducted in a public housing estate in the regional city of Bendigo in Australia are reported. These show a change in SOC in the focal community in comparison with a more privileged part of the city. This change could be attributed to the community development process.
This process is then reconsidered in terms of the key ideas underpinning systems theory.

2002-032
IDEAL-SEEKING VERSUS SENSE-DISCLOSURE FOR DEVELOPMENT: A COMPARISON OF THE GHARAJEDAGHI/ ACKOFF AND DOOYEWEERD CONCEPTS
FP (Petrie) Coetzee, Department of Computer Technology, Technikon Pretoria, Pretoria, South Africa
petrie@techpta.ac.za
Russell Ackoff is a systems thinker who made major contributions to management thinking, both for management of organizations and management of society. His essential academic discipline was philosophy. Together with Fred Emery he devised the notion of ideal-seeking systems (Ackoff and Emery, 1972), according to which life becomes sensible through a process of striving towards attainment of ideals (Ackoff, 1974). Ramshid Gharajedaghi, in collaboration with Ackoff, articulated a concept of development of socio-cultural systems based on the notion of ideal-seeking systems (Gharajedaghi (with Ackoff), 1985, 1986).
Herman Dooyeweerd was a Dutch philosopher who devised a philosophy he called The Philosophy of the Cosmonomic Idea (Dooyeweerd, 1953, 1955, 1957, 1958, 1968, 1979). This philosophy is systemic in the sense that it attempts to provide a comprehensive description of, and a comprehensive prescription for all of reality. His noted concern with management is on the societal level. One of Dooyeweerd's essential notions is that life is about attainment of meaning (or sense) through a process of disclosure of meaning (or sense). Based on this notion of sense-disclosure he builds a concept of socio-cultural development.
In this paper these two concepts of socio-cultural development are compared so as to clarify both commonalities and differences between them. A motivation and a basis for integration of these ideas is noted, as well as the outcome of an effort at integration and which has resulted in the notion of sense-seeking systems as basis for socio-cultural development and innovation.

 

2002-033
ON ZHOUYI SYSTEM AS A COMPLEX SYSTEM: EXPLORATION INTO THE NATURE OF THE COMPLEX SYSTEM AND ITS CREATIVE MANAGEMENT
Chung-ying Cheng, Ph.D (Harvard)
University of Hawaii at Manoa
The purpose of this inceptive paper is to inquire into the structure and meaning of complex system and how we could manage it by way of examination of the Zhouyi symbolic systems of representation of a changing world-life-reality and our creative response to them.
In defining and describing the symbolic gua/yao system of Zhouyi which is here referred to as the GY-System (GYS) with primitive terms G (forms of representation) and Y (forces of change) and a number of organizing principles and structures (to be specified as D, T, C etc) which form a generative unity, one can list several basic features.
If we compare GYS system to the Super-Strings Theory of Cosmology in contemporary physics, we find that there is a certain high correlation or even a close analogy between the two. In this sense we can speak of GYS as representing a cosmic system which has been displayed and described in traditional Zhouyi symbols. The important point is that it is through a dynamic complex system that life and intelligence are not just improvable as a whole system but also realizable as a ceaseless process.
We may also inquire into GYS as a tool and/or object of decision-making, negotiation and conflict resolution. It can be shown that GYS contains an analytic hierarchy process.

 

2002-034
GENERAL MANAGEMENT RELATIVITY
Dr. Norman K. Powell BSc, PhD, CEng, FCMI,
66, Larch Drive, Carlisle, Cumbria CA3 9FL UK
This paper is a reconsideration of previous work, stimulated by the recent concepts of "strings", "membranes", "singularities", "eleven dimensional space-time" as working tools used by Physicists in the analysis of the complexity of the cosmos. Much depends on the use of terminology such as, 'numbers', ' factors', ' variables', 'dimensions'.
Cybernetics is a useful management language for addressing the subject of a viable complex system, which is defined as a mechanism for generating controllable variety; first as an aggregate of bits (multi-variate) and then as an integral of parts (multi-dimensional). Cybernetics is the science of control and one of the fundamental concepts therein is "The Law of Requisite Variety" and another is the concept of "feedback". Both these concepts drove this work forward.

 

2002-035
ARE THERE NATURAL LIMITS TO HOW WELL COMPLEX SYSTEMS CAN BE ADDRESSED?
Henry C. Alberts, Ph. D.
Adjunct Professor, Graduate School of Management and Technology, University of Maryland, University College, College Park, Maryland
A distillation of "lessons learned" in a varied 53-year professional career is consolidated into a "Theorem of Limits" which can be widely applied to complex issues involving systems science. The theorem indicates that three factors impinge on, and limit, the degree to which long term solutions to such issues can be developed. The factors are: 1) The complexity of the issue 2) The time it takes to develop an understanding of the issue and its systemic relationships:3) The processes necessary to propose, structure, and implement activity chains aimed at ameliorating problems.
Case histories illustrate how each of the three factors, acting individually and through interactive effects, creates difficulty in: 1) Conceiving a sufficiently detailed and stable working visualization of the situation (defining the system), 2) seeking out and structuring potential ameliorating actions, 3) combining those actions into a reinforcing activity chain, and 4) implementing the actions in a timely and effective manner.
Examples from government, national and International Industry, and technical disciplines (including information technology and cognitive science) illustrate both the basis for the theorem of limits and the way in which the three factors affect the processes.

 

2002-036
INTELLIGENT ENTITY-ORIENTED CONCEPTUAL MODEL ANALYZING APPROACH
Gu Ping Gong chuan xing Bai Yan Qi
Mechanical Engineering College Shi Jia Zhuang 050003, China
Rising personnel and equipment costs, annual reductions in defense spending, and a dynamic geo-political climate have created a situation requiring military leaders to seek training, operation, weapon system's development and evaluation methods that are more cost effective and efficient in meeting the challenges of the future. As a result, the military has tasked the modeling and simulation (M&S) community to develop simulations that meet this mandate. Requisite to that demand is the need to provide authoritative, consistent and standard representations of complicated system in simulations that are credible and reasonable; providing valid analytical results for designing system.
One effort assisting in meeting this need is Conceptual Modeling of Complicated System (CMCS). The conceptual model is a link between complicated system and simulation system, the introduction of conceptual model is intended to solve the communication difficulties between simulation engineers and military personnel in the phrase of user requirement analysis(war system).for this purpose, this paper analyzes the similarity between the operational system and conceptual model, the results are shown the figure in the following. The intelligent oriented conceptual model analysis method is put forward, which includes six activities: mission identification, entity identification, structure identification, state identification, behavior identification ,and interaction identification.
Most users find CMCS appealing because of its simplicity and systematic approach and because the methodology commences with the original intent of the simulation, the user's requirements. Furthermore, CMCS has a reuse capability and is easily understood and implemented by users of two domains(military personnel and simulation engineers).

 

2002-037
A NEW COMMUNICATION SYSTEM BASED ON MOBILE AGENT IN DIS
Chen Chang Yi Gong chuan xing Wang Ji Xing, Mechanical Engineering College Shi Jia Zhuang 050003,China
As a combination of simulation technology and computer network technology, distributed interactive simulations (DIS) make it possible for interoperating between homogeneous or heterogeneous simulator in a common time-space consistent environment. It has been widely applied in various social areas due to its merits of high efficiency, flexibility, safety and so on. With the development of DIS, there are more and more simulation entities in a large-scale DIS system and lead to the communication between entities increase dramatically. A new communication mechanism must be constructed in order to release the pressure on resources caused by communication growth.
In the communication system there are three kinds of element: mobile agent, simulation entity and RTI (run time infrastructure). Mobile agent is an intelligent element because it has capability of apperception analysis and judgement. It can find the information in which the simulation entities are interesting automatically and send the information to them. RTI is a general distributed platform, which supports transparent interoperating between simulation entities. All simulation entity and mobile agent are managed by RTI, so we can look it as the core of communication system. The relations between three kinds element are also studied with the theory of system engineering in this paper.
After analyzing the communication system in detail, this paper constructed a communication mechanism. A simulation entity apply RTI for registering a mobile agent at first, after RTI admitting, simulation entity can send a mobile agent to remote network. These agents represent one entity within the simulation, which are allowed to migrate to another location in the network where an interaction with their entities is needed. Each mobile agent need to build up a entity interesting list and then the agents discover the simulation entity in the remote location one by one. If the agent found the useful information, it will report to RTI. RTI decided to control the membership of multi-cast transmission sets needed to perform the actual communication between entities, or set up individual point-to-point links between entities. This communication mechanism is intended to alleviate some of the structure problems which have become apparent as distributed simulations have been extended in their scale and scope. These problems include:
?The difficulty of adequately monitoring and controlling entities running at remote location;
?The inflexibility introduced by apparent need to standardize all of the communications protocols used between the various components of a distributed simulation;
The poor scaling characteristics of the communications load between entities when the simulation relies on global broadcasting for exchange of information;
At the same time the information flow is described and the communication mechanism architectures are given. Artificial intelligence and inductive programming technologies are introduced to demonstrating the ability to monitor the internal information of a variety of remote simulation entity. At last a conclusion is gained:
The communication system is a big complicated system and some unit in the system are intelligent.
The new communication mechanism based on agent technology is a very effective means to resolve the problem that arose in big-scale distributed simulation system.

 

2002-038
SYSTEM STRUCTURAL ANALYSIS BASIS OF RECONSTRUCTABILITY ANALYSIS AND APPLICATIONS
Professor Guangfu Shu
Institute of Systems Science, Academy of Mathematics and Systems Sciences, Chinese Academy of Sciences, Zhongguancun, Beijing 100080, China.
The paper firstly briefly reviewed the foundations of structural analyis and NP problem treatment of reconstructability analysis. Its forerunner Ross Ashby, used constraint analysis; its founder G. J. Klir used binary graph relations and levelled system aggregate states; B. Jones used a sequential of main substates to get unbiased reconstruction hypotheses.
The author of this paper introduced reconstructability analysis with logical relations, which further used the information and knowledge of system structures. In recent years by introducing mixed variables reflected the system philosophical idea on structural changes from quantitative change to qualitative change.
Metasynthetic reconstruction analysis comprehends the information and knowledge from data, structural changes, qualitative and quantitative rules and experiences to get a comprehensive quantitative result-- the behavior function closeness of metasynthetic system reconstruction analysis to implement qualitative to quantitative metasynthesis.
The paper also introduced some ideas of how to deal the complexity arisen by macro-economic system, which is an open giant complex system. It gave some attempts on how to work on problems with very large and very complex structured systems which are almost impossible to be dealt by usual routes, or sometimes might be called "dealing unstructurable problems by structural methods".
* supported by NSF of China 79990580

 

2002-039
SYSTEM STRUCTURAL ANALYSIS BASIS OF RECONSTRUCTABILITY ANALYSIS AND APPLICATIONS
Professor Guangfu Shu, Institute of Systems Science, Academy of Mathematics and Systems Sciences, Chinese Academy of Sciences, Zhongguancun, Beijing 100080, China.
The paper first expounded the difference of on line model disscussion and the generalized concept of modelling. The general concept of modelling include the clarifying of the problem, the accumulation of the related knowledge, which for experts may include studying and experience of several months or even 10-20 years, the collecting and organization of data and other information, investigation and systems thinking. On line discussion means experts have already had all those data and relations clear and mainly discuss, modifies the models and compares different ideas and models which are prepared and ready for discussion. And experts mean the elementary and commonly recognized parts are already very familiar and can be dealt very freely by them.
The second part expounded the meaningness and importance of on line model discussion and data knowledge treatment. It is one of the important breakthroughs needed for leaping out of the classical qualitative discussion and voting, which was practised since ancient times and qualitative discussion (or so called conceptual design in engineering design), quantitative model approving for each proposal, and voting, which was practised by most of the system analysis, system engineering, DELPHI method, RAND cooporation etc. In man-machine combined metasynthetic decision support we should have some more advanced comprehending and integration methods for information and knowledge.
The third part introduce one of the methods to implement such a task--- the metasynthetic reconstructability analysis method and its process and interfaces which can integrate and comprehend data and qualitative information, knowledge on relation structures, developing tendencies, logical relations between factor and criterion levels, quantitative relations such as mathematical constraints and equations etc. qualitative and quantitative knowledge, and experts qualitative or quantitative scenarios.
This method and its series computer software will provide a tool for experts to do some of the on line model discussion and data knowledge processing in the metasynthetic discussion hall. But it should have a quite rich database and knowledge base combined with it.
In smaller scale it can also be a support system for personal model, data knowledge processing and decision making.
* supported by NSF of China 79990580

 

2002-040
STABILITY AND CHANGE IN CHINA: MOVEMENT TOWARDS A FREE MARKET ECONOMY
Gary S. Metcalf, Ph.D., President, InterConnections, LLC, Associate Director, Business Programs - United States Open University, 1212 Bath Ave.; 6th Floor, Suite 4, Ashland, KY 41102; U.S.A.
gmetcalf@ezwv.com
(Corresponding Author)
Fengquan An, Ph.D., Associate Professor, China Petrochemical Consulting Corporation
No. 24 Xiaoguan Anwai Ave., Chaoyang District, Beijing, China; P.C.: 100029
anfq@cpccc.sinopec.com.cn
China currently faces many "crises of transition" as it seeks to more directly join the world economic systems. While there is a desire to bring economic prosperity to China, there seems to be an equally strong compulsion not to destabilize current systems which provide security.
In order for China to create and maintain a free market economy, it must allow adequate legal and political systems to evolve. A free market system which can attract the necessary investment of capital cannot survive without them. China's entry into the World Trade Organization will only increase the pressure for changes, even as it offers opportunities for growth.
The framework to be used in this paper for analyzing the current situation within China, and in its relation to other countries, is based on research by Dr. Clare W. Graves. Dr. Graves' work was later developed into a system of understanding both organizations and cultures, known as Spiral Dynamics (Beck & Cowan, 1996), which might best be understood as a system of "deep attractors" and describes a hierarchy that encompasses existing worldviews. Using this framework, many of the fundamental challenges facing China will be explained from a system perspective.
Examples demonstrating how change has, and might further, affect specific organizations are provided, including those from SINOPEC Corporation, CNOOC limited and PetroChina Company Limited.

 

2002-041
THE DETERMINANTS OF EXECUTIVE COMPENSATION: EVIDENCE FROM CHINA LISTED COMPANIES
Zhang Zhangtang, Tao Xueyu
School of Management, China University of Mining and Technology, Xuzhou, Jiangsu, P.R.China, 221008
Agency theory argues that companies need to structure their executive compensation so as to attract, retain, motivate, and reward executives. It is implicit in agency theory that executive should be rewarded for his performance and that company size should not be a significant determinant of compensation. Empirical evidence in many countries has concluded, however, that size is a major determinant of executive remuneration and the pay-for-performance link is very weak. Most empirical research has adopted a limited theoretical perspective that draws upon one discipline rather than building upon a broad base of disciplines. We argue that this research has generally been limited because it ignores other criteria that can be used to determine executive pay.
Our analysis leads to a general framework for exploring the impact of behavioral, economic, and strategic constructs and the role of industry on executive compensation. This study examines the determinants of executives' compensation in China Listed companies by using recent available data. In this paper, we use SEM (structural equation model) to explore the relationship between executive compensation and other independent variables identified in the general framework. SEM is used to capture the relationship between unobservable (latent) variables like board control and their observable counterparts (indicator variables) like duality and executive stock ownership.
This study extends our understanding of executive pay in several ways. Most studies have been concerned with the pay of North American executives and UK directors. This study looks at pay in China, a country with a rather different form of corporate governance than that found in the US, the UK and other "Anglo-Saxon" counties. Finally, our work is based on multidisciplinary, with insights from agency theory complemented by insights form human capital theory, strategic management, behavioral theory, institutional theory and so on.

 

2002-042
THE DEVELOPMENT OF SYSTEMS APPROACHES IN EDUCATION FOR MANAGING COMPLEX SYSTEMS
Alexander D. Gorobets, Department of Management and Economics and Mathematical Methods, Sevastopol National Technical University, str.Sherbaka 5-15, Sevastopol 99011, Ukraine E-mail: alex-gorobets@mail.ru
Education of complex systems concepts is of the paramount importance for the transforming of present educational system in the condition of society evolution at a new, information stage. We need to develop the new, unified approaches and concepts in education which help people to understand most of complex processes in the world from a systems view and react the right way to changing environment in the context of learning. Some of such approaches as studying of fundamental disciplines and analytic tools which can be applied to all complex systems are used in New Independent States (former Soviet Union). We have to explore and expand fundamental issues on the structure, evolution and dynamics that apply to all complex systems. In 21st century the most powerful tool for analyzing complex systems is a computer so simulation techniques and agent based modeling will assist to the modern study of complex systems. The education institute is a key factor for solving up-to-date problems in the all spheres of our life: social, ecological, economical, e.c. Thus we ought to include systems design as an essential part of our professional destiny.

 

2002-043
ENTERPRISE NETWORKS: A SYSTEMATIC KNOWLEDGE-GENERATING EXTENDED ENTERPRISE
Mu Jifeng School of Management & School of Economics and Finance, Xi'an Jiaotong University, Xi'an, China, 710049
Xu Heping School of Management, Xi'an Jiaotong University, Xi'an, China, 710049
Much has been written on the nature of and the knowledge innovation of firms. Examples originates from Coase, and his inherits like Williasom, Alchian, Demsets, Leland, Jesen, Meklin, Chiang, Qian Yinyi, etc. who extends Coase's idea into transaction economics, and other branches of theory like principal-agent theory, etc. the economists like Winter, Nelson, Arrow, Kirzna, Casson, Berle, Means, Roberts, Milgrom, Kreps, Rosen, etc. and the knowledge creation like that of Schumpeter's and Chandler's, etc. In this paper, I firstly discuss the art of the enterprise network; presents a definition of enterprise network, then I mainly make discussions on the benefits from enterprise networks, makes some comparative analysis of the nature of firm between Coase's origin and that of knowledge-based of the firms, transaction cost economics, resource-based, networks and the nature of firm, proposing that firm is creation of knowledge also a knowledge-preserving entity, argues that in dynamically environment, the importance of enterprise network and the nature of enterprise network and firms as a systematic knowledge-generating extended enterprise from an integrated perspective of sociology, economics, and management framework, and the following part of the text I mainly argued why enterprise network is a systematic knowledge-generating extended enterprise, I think that it is novel; the last part I draw some conclusions and presents some ideas on how to manage knowledge generated in the networks.

 

2002-044
THE STRATEGIC VALUE OF TRUST IN KNOWLEDGE-BASED NETWORKING FIRMS
Mu Jifeng, School of Management & School of Economics and Finance, Xi'an Jiaotong University, Xi'an, 710049, China
Chen Fangli, Institute of STS, Xi'an Jiaotong University, Xi'an, 710049, China
Trust plays a crucial role in modern knowledge-based economy. In this paper, the authors present an economic definition for trust, argue that trust is based on personal relations, an abstract social institutions and important incentive mechanism, and discusses the strategic role of trust in networking firms. The authors argue that actually there are three fundamental bases of different forms of governance forms, ie. market, hierarchy and trust. In certain context, the three bases mare rarely completely distinct from each other, they are overlapping, embedded, intertwined, juxtaposed and nested they are symbiotic, but others, trust will be contradictory to hierarchy and market, that is, trust can be an important governance form independent of hierarchy and market. Also, the authors analyze the value of trust in knowledge-based networking organizations, argues that trust essentially is an important governance mechanism in knowledge-based networking firms.

 

2002-045
THE FIVE ELEMENTS THEORY IN BUSINESS RESEARCH
Kuang-cheng Wang, Doctoral Program, Graduate Institute of Business Administration, National Taipei University, Taipei, Taiwan, R.O.C.
E-mail: kcwang@ttu.edu.tw
The purpose of this article is to apply the Chinese systems thinking, the five elements theory, to business research. The five elements theory is a cornerstone of Chinese culture. The Chinese believe that all phenomena can be categorized into five elements: Wood, Fire, Earth, Metal, and Water. How things are characterized depends on their respective qualities. This author attempts to demonstrate that the five elements theory can be applied to manage the complexity in business problems. First, a clear description is given to explore the nature and explain the principles of the five elements theory. Second, the similarities between the five elements theory and the Western concept of systems thinking are compared and discussed. In addition, the conceptual framework approach in the traditional business research, the framework of causal relationship comprised of independent, intervening, moderating, and dependent variables, will be shown to be incapable of expressing and handling the complex business realities. Finally, this article tries to classify the various variables in business researches in terms of the five elements. Three propositional examples are provided to clarify the confusion when applying this theory to complex business problems.

 

2002-046
EDUCATIONAL TECHNOLOGY AND SYSTEMS SCIENCE: LOOKING BACK AND LOOKING AHEAD
In-Sook Lee, Department of Education, Sejong University, 98 Kunja-dong, Kwangjin-ku, Seoul 143-747 Korea
The contribution of systems science is of critical importance as a foundational paradigm and theory, which has extensive influence on the growth of theories and practices of educational technology. Unlike systems science that evolves and develops through convergence and divergence, educational technology does not reflect on these changes even though it is based on systems science. This paper reviews the main concepts and theories of systems science as the basis theory of educational technology and explores new methods for the paradigm and methodology of systems science to support educational technology by analyzing and linking educational technology and systems science. One of the major findings of systems science is that educational technology has a variety of educational situations and systems, and each system is unique. In a nutshell, one alternative direction that educational technology suggests based on this finding is that, although it has provided solutions to resolve current problems, it should develop to the point where it is able to construct preventative measures in the future.

 

2002-047
KNOWLEDGE BY NO-ACTION: A SYSTEMS INTERPRETATION OF CHUANG TZU'S THOUGHT
Tetsunori Koizumi, Faculty of Intercultural Communication, Ryukoku University, Otsu-shi, Shiga 520-2194
Japan, Email: koizumi@world.ryukoku.ac.jp
Of all the Eastern thinkers, Chuang Tzu probably went furthest in denying the role of rational inquiry in knowledge acquisition. Why is Chuang Tzu opposed to rational inquiry? What is the basis of his rejection of rational inquiry? If rational inquiry is not the answer, how are we to go about acquiring knowledge of the world around us? The paper examines these questions by rephrasing Chuang Tzu's ideas in the language of systems sciences.
We interpret Chuang Tzu's inquiry as an effort to make linkages between the two worlds-the latent world, or the world of the transcendent Tao, and the manifest world, or the world of the immanent Tao. Chuang Tzu's system of thought can then be summarily represented by three postulates-"coherence", "correspondence" and "complementarity" - about the nature of the relationship between the latent and the manifest world. The postulate of "coherence" expresses the idea that the universe is a coherent whole as all things in it are basically the same in their essence in the latent world, which is the Tao. The postulate of "correspondence" expresses the idea that all things in the manifest world are also ruled by the same essence that rules the latent world because of correspondence between the transcendent and the immanent Tao. The postulate of "complementarity" expresses the idea that things in the manifest world cannot exist as distinct and separate entities as the existence of some entity presupposes the existence of its complement.
The three postulates together imply that things in the manifest world are, in essence, non-divisible and non-separable. If things appear to be distinct and separate, it is because we impose our own rationally conceived distinctions on them. To comprehend the universe in its basic oneness, as a coherent whole, it becomes necessary to reject these distinctions that underlie our rational inquiry. What are we to do, then? Not surprisingly, Chuang Tzu's suggestion comes down to the Taoist maxim of wu-wei, namely, no-action. After examining similarities between Chuang Tzu's thought and other traditions in Eastern thought such as Hinduism and Buddhism, the paper concludes by pointing out the relevance of Chuang Tzu's thought for our effort to deal with complexity and change in today's world.

 

2002-048
STUDY ON THE COMPLEXITY OF ORGANIZATIONAL INNOVATION AND ITS MECHANISM
Cao Qingren*, Song Xuefeng, Institute of Economical and Management Complexity, Management School, China University of Mining and Technology, Xuzhou, Jiangsu, P.R. China, 221008
*Caoqr-cumt@163.com
Along with the function of knowledge and technique increases, scientists, engineers and managers have increasingly focused on innovation. Innovation is a powerful weapon in competing with other business enterprises, and pushes the society forward endlessly. However, what's the innovation? What's condition under which innovation is facilitated? In the past four decades, many scientists have put continued effort to understand these questions. In 1975, Melanie Klein developed a theory of the development underlay later adult behavior, explaining how creative behavior comes about and what role it plays in the human psyche; In 1965, Donald Winnicott regarded creative behavior occurred in a transitional space between the real world outside the mind and inner fantasy world. Many scientists in Santa Fe Institute founded in 1984 regarded innovation as a result of interacting of a number of components, or agents according to sets of rules that require them to examine and respond to each other' s behavior so as to improve their behavior and thus behavior of the system which they comprises. After having analyzed current research in organizational innovation Fariborz Damanpour developed a theory of organizational complexity and innovation exploring both the innovation process and the conditions under which innovation is facilitated in 1996. Many papers and reports introduced experimental programs that utilize knowledge of the creativity process to enhance innovation were conducted at enterprises, like as Leonard Berkowitz in 1996, Tekla S. Perry in 1995, Kenneth S. Corts in 2000. this study intends to exploring the Innate characters of organizational innovation and its mechanism. Firstly, the definition of innovation will be defined after studying different innovations of different levels. Secondly, the explanation of organizational innovation behavior based on system thinking will be explored in detail. The complexity of organizational innovation and the conditions stirring up more innovation will be studied immediately after. The signification of organizational innovation on both foundational and applied will be investigated in the end.

 

2002-049
REENGINEERING THE PARADOX OF ORGANISATIONAL DEVELOPMENT: MODERNISM AND POSTSTRUCTURALISTS THOUGHTS
Jae Eon Yu, Lincoln School of Management, Lincoln University Campus, Brayford Pool, Lincoln LN6 7TS UK
E-mail: 9070yu@hanmail.net
What is the development for organisations today? Poststructuralists or postmodernists see the nature of organisations as the 'pure becoming' that emerges through the collectiveness of individuals and local contexts. On the other hand, Modernists see the nature of organisations as the product of 'social engineering' that focuses on the way the deterministic nature of organisations are represented and interpreted. Today when a researcher asks himself or herself a question concerning the global development of organisations or social systems, he/she meets the paradox of development for social systems, which can exist between Modernism and Postmodernism or Poststructuralists thoughts. It is true that our organisational contents and systemic frameworks have been built based upon the Modernist's principles and beliefs, thus modernistic methods and 'systems approaches' are taken for granted when a researcher conducts his/her research in organisations. It is also true that the symptoms of 'illness' or the sources of the 'problem' in the social systems and organisations cannot successfully deal with by the traditional approaches that are based upon the Modernist's tenets. What is important for the development of organisations and its related knowledge construction is not so much on what is true and false of 'scientific knowledge' being appreciated, as it is on our thought and research to what the 'narrative knowledge' produces in particular, local contexts. How do we know social systems and modern organisations will continually develop from the epidemic trends of 'globalisation' spread out over our present time and even in the unforeseeable future? These issues will be some key challenges for leading edge research today.

 

2002-050
OPTIMALITY CONDITION FOR A CLASS OF THE TWO-LEVEL DECISION SYSTEM WITH MULTI-OBJECTIVES
Teng Chunxian Chen Dongyan, Harbin University Science and Technology Harbin 150080)
In this paper, we discuss the two-level decision system with multi-objectives, that the upper-level set-value objective functions are defined by the forward surfaces of the partial-optimal solutions for the lower-level problems of optimization. Applying the concept and the properties of Clarke tangent derivative for the set-value map, and assuming that the supper-level objective functions are differentiable, the first-order necessary condition of the optimal solutions for this two-level decision system with multi- objectives was given. The obtained necessary condition is formed by the gradients of the upper-level set-value objective functions and Clarke tangent derivatives of the forward surfaces for the lower-level problems of optimization.

 

2002-051
BILEVEL DUALITY PROGRAMMING FOR A CLASS OF BILEVEL CONVEX PROGRAMMING
Chunxian Teng Dongyan Chen (Harbin University of Science and Technology Harbin 150080)
We consider the duality programming problem for a class of bilevel convex programming with extremal-value function, that is the upper-level objective function is defined by the optimal value of the objective functions for the lower-level subsystems. Under some assumptions that the organization functions are convex and continuously differentiable, we established the Lagrange bilevel duality programming model and proved the basic duality theorems for the bilevel convex programming.

 

2002-052
TAMING DYNAMICAL COMPLEXITY AND HIGH-TECHNOLOGY MANAGEMENT
Jin-Qing FANG , Guanrong CHEN
1. China Institute of Atomic Energy, P. O. Box 275-27, Beijing 102413, P. R. China
2. Department of Electronic Engineering, City University of Hong Kong, P. R. China
Variability is one of the most important features of complexity in complex networks and complex systems because of its extreme sensitivity to tiny perturbations. Various possible competing behaviors within a complex system provide great flexibility in taming/controlling dynamical complexity, leading to desirable management and selection of beneficial behaviors for intended applications. In many high-tech fields, how to control and manage complexity is a very important, significant, and yet challenging issue.
As a typical example, recently the accelerator driven clean nuclear power system (ADS) is one of the most focusing issue in nuclear-energy physics in China, due to the crucial problem of energy resource prerequisite for realizing strategic objectives of the national economic development. ADS can overcome the shortages regarding the current nuclear-power technology and become an innovative technological option for a persistent development of nuclear energy in China in the 21st century, toward the goal of achieving safer, cleaner, cheaper, and more reliable nuclear-power systems. The ADS consists of an intensive beam proton accelerator, a target, and a sub-critical reactor. There are three levels or aspects for controlling the complexity of ADS, namely, from the viewpoints of science, engineering-technology, and manage-ment. In this high-tech field, what is urgently needed to be resolved includes not only a better understanding of the complex halo-chaos formation mechanism but also a better methodology for their control and suppression. These have become key issues in the technology development confronted with us today. This consideration has also become our motivation and focal point in writing this article.
Some general engineering methods for taming chaos-complexity have been developed since 1990', but they generally are unsuccessful for suppressing the complex spatiotemporal halo-chaos in ADS. To resolve the difficulty, we have proposed some advanced strategies and methods suitable for taming ADS complexity, such as halo-chaos. These include nonlinear control, wavelet-based feedback control, switching manifold control, and sliding mode control methods. This article will introduce these successful control strategies and methodologies, with convincing simulation examples. Some potential applications of these control methods for taming halo-chaos complexity will be also discussed in this article.

 

2002-053
THE ORIENTATION AND DEVELOPMENT DIRECTION OF CHINESE COAL INDUSTRY*
WANG Zhensheng LV Tao,School of Management, China University of Mining and Technology, Jiangsu, Xuzhou 221008, China
As a basic branch of energy industry in china; coal industry ever brought into play to national economy. With the development of market economy and economy reform, the coal industry is in hot water because of the characteristics of resource industry. Because of the request for sustaining development, the change in value concept, and the cognitive warp to energy branch, some people cannot really realize coal industry; the declining of some mining areas is regarded as the declining of whole coal industry. On the basis of these facts, the article indicates that china still needs coal through the analysis of the substitute energy and the market competition power of coal, and puts forward the strategy and development direction of coal industry of China.

 

2002-054
MULTISCALE BEHAVIOUR OF VOLATILITY IN SHANGHAI'S STOCK MARKET*
Hu Xueming, Song Xuefeng, Wang Xinyu and Cao Qingren, Economical & Managerial Complexity Institute , School of Management, China University of Mining and Technology, Xuzhou, Jiangsu, 221008,P.R.China.
In this paper we consider the daily returns of the Shanghai Stock Exchange Composite Index (SSECI) from December 1990 to January 2002 .Our numerical analysis shows that absolute returns display positive power-laws correlation over short horizons and autocorrelation vanishes over long horizons, by shuffling the order of the daily returns, destroying the correlation of absolute returns over short-range. Nevertheless the power-law behavior cannot be inferred by simply considering autocorrelations. In order to have a sharper evidence for the nature of the long memory phenomenon, we perform a scaling analysis on the variance of a new class of observable, the generalized cumulative absolute returns. This analysis clearly shows that volatility correlations are power-laws on a time range from one day to fifteen months, more important, that the exponent is not unique, and they exhibit a multiscale behaviour.
*Supported by NSFC (No.79970115)

 

2002-055
WHAT MAKES INFORMATION SYSTEMS COMPLEX IN THE EYES OF SYSTEMS ANALYSTS?
Alexander Backlund, University of Skövde, Department of Computer Science, Box 408, SE-541 28 Skövde
Sweden alexander@ida.his.se
Every information system must have a certain degree of complexity in order to be able to perform its functions. However, a complex system is more difficult to understand, analyse, and change than a simpler one. Thus, it is desirable to create information systems that are not more complex than necessary, and methods to reduce such complexity are needed. To be able to attack problems of this kind one must, however, reach an understanding of the nature of complexity in information systems. The complexity of something can be seen as the perceived cognitive effort that is required to understand it and cope with it. It is a subjective or, at best, intersubjective property. The existing characterisations of complex systems need to be corroborated, their relevance needs to be confirmed, they need to be made less unspecific, and they should also, if possible and necessary, be complemented. As complexity is considered to be a subjective property, making the work of analysing and changing an information system more difficult, it seems reasonable to ask the following question: What qualities of an information system makes it seem complex to systems analysts, in their eyes? This is interesting not only because of their experience of information systems and expertise in that area but also because they deal with the problem of analysing and changing information systems in their work, which such knowledge might contribute to facilitate. Also, given the subjective nature of complexity, making interviews with systems analysts is a rather natural choice of method, and such a survey will be made.
In this work, the reasons for asking this question and making interviews such as those mentioned above are elaborated and the method is discussed, as well as the preliminary results of the interviews. The basic approach is to interview systems analysts, ask them questions about how they perform their work, and then direct the interview on to the matter of what they think makes information systems seem complex to them. The answers are then compared and common themes are extracted.
(Here, the term information system is not used in the sense of data processing computer system, but in the sense used by Börje Langefors. An information system always includes humans.)

 

2002-056
CHANGE IN THE HIGHER EDUCATION SYSTEM (UK): A LECTURERS' PERSPECTIVE.
Bakehouse,G.J., School of Information Systems, CEMS Faculty, The University of the West of England, Frenchay Campus., Frenchay, Bristol BS16 1QY U.K.
E-mail: George.Bakehouse@uwe.ac.uk
This paper discusses the changes that have occurred both within and upon the UK's Higher Education (HE) system during the last decade. The theoretical underpinning for the discussion draws upon Schon's notion of dynamic conservatism. The lecturers' perspective has been developed via a case-study approach. The case studies involved lecturer's who have developed innovative practices in their mode of delivering standard modules with the Information Systems discipline. The data collection method employed in the study was primarily that of extended qualitative interviewing supported with quantitative evidence where appropriate. Analyses of the cases are discussed and conclusions drawn identifying the impact of change from a lecturers' perspective. Evidence gathered in this investigation suggests that individual lecturers believe they have to be innovative in order to stand still, that is to maintain the standards and maintain their personal values and beliefs within the aims and objectives of an ever-changing social system in which they participate.

 

2002-057
THE THREE C'S: COMMITMENT, COORDINATION AND COMMUNICATION: THEIR ROLE IN DEVELOPING AND IMPLEPLEMENTING INFORMATION SYSTEMS
Bakehouse, G.J, Doyle, K.G, Waters, S.J.
School of Information Systems, CEMS Faculty, The University of the West of England, Frenchay Campus.
Frenchay, Bristol BS16 1QY U.K.
E-mail: George.Bakehouse@uwe.ac.uk
Kevin.Doyle@uwe.ac.uk
This paper will discuss the relevance of the three C's: commitment, coordination and communication when developing and implementing information systems. Empirical research and experience suggest that at least these three conditions are necessary to implement IS successfully. The paper is not attempting to imply that the successful application of the three C's alone will guarantee a successful project. It does, however, conclude that unsuccessful application of the 3 C's may add to the likelihood of project failure. Information system projects can fail for many reasons. Hirschheim, for example, distilled approximately one hundred references into a taxonomy of information systems failures which is essentially a PEST analysis covering Political, Economic, Social and Technological factors.
The paper will discuss the individual elements of the C's trio drawing on examples from a longitudinal cross sectoral empirical investigation conducted by the authors. This ongoing research project includes extended research in the financial, construction, transport, manufacturing and health sectors. Findings suggest that the rather cynical framework given below, of describing the systems life cycle and its effects, still remain significant.
1. Feasibility Study =Wild Enthusiasm
2. Analysis=Disillusionment
3. Design =Total Confusion
4. Implementation=Search for the Guilty
5. Installation=Punish the Innocents
6. Operation=Promote the Non-Participants

 

2002-058
MODELLING THE COMPLEXITY OF CONCEPT DYNAMICS
David Al-Dabass, Dept of Computing and Mathematics, The Nottingham Trent University, Nottingham, NG1 4BU, UK
Email: david.al-dabass@ntu.ac.uk
The notion of concept dynamics is put forward as an aid to categorise a set of concepts according to some behaviour criteria. A set of concepts will change with time under the influence of inputs, - for intelligent entities these inputs may be termed 'senses'. Concepts will manifest their presence through sequences of 'actions' upon their environment. Not all of the concepts are directly measurable from their action sequences, and give rise to the 'observability' condition. Furthermore, senses have only limited ability to change concepts, which in turn, lead to the 'controllability' condition. The behaviour pattern of concepts can be categorised by a set of parameters as well as by senses. Thus suitable parameter estimation algorithms are needed to achieve categorisation.
CONCEPT DYNAMICS: Concepts may be modelled as mathematical variables, continuous or discrete. A single concept may be represented by a scalar or a vector variable depending on the level of abstraction being considered. Concepts vary in time in response to input and can be seen to have dynamics.
Concepts possess inertia: it takes a finite time duration to change a concept value and thus it can be said to have inertia. A concept subjected to an input will not acquire its new value immediately but evolve gradually. Three patterns of behaviour may result: i) the concept will reach its new value without overshooting it, or ii) it will overshoot initially and then undershoot and overshoot several times before eventually reaching it new value, or iii) the overshoot and undershoot become more divergent and the concept never reaches its intended new value.
Concepts exhibit oscillatory behaviour: this is an extension to the notion of 'inertia',- a concept may embody within its semantics structure multiple 'energy storage facilities' that, under the right conditions, such as low damping, can operate sufficiently out of phase to cause semantic energy to flow back and forth in a similar way that a liquid flows between two interconnected reservoirs.
Concept Vector: Let X be an n-vector of variables that represent the concept. For the Senses Vector: Let U be an r-vector of variables that represent all inputs to the 'concept system'; for an intelligent entity (silicon or carbon/biological) these input variables include: sight, hearing, touch and smell as well as deeper level messages modulated upon them. For the Senses Matrix: Let the r-vector U influence the Concept rate of change by a time varying n x r matrix C(t). For the Actions Vector: Let Z be an m-vector of variables that results in mapping the concepts onto the environment space. No distinction is made here between real physical space and virtual space within a suitable domain (such as software, seen as silicon-based 'mind', or conventional minds as in carbon-biological systems) inhabited by the entity generating the concepts and at least one 'other' entity monitoring it. Fgor the Action Matrix: Let H(t) be an m x n matrix that maps the Concepts n-vector X onto the Actions m-vector Z.
OBSERVABILITY AND CONTROLLABILITY: There are two fundamental ideas involved in modelling the dynamical behaviour of concepts which are related to the way concepts are changed by input from senses on the one hand and the way they influence actions taken by the entity possessing them on the other. 1) Under what conditions can concepts be estimated from measurements of actions. 2) Under what conditions can concepts be influenced by input received through the senses.
PARAMETER ESTIMATION FOR CONCEPT CATEGORISATION: Concepts dynamics are defined by differential equations and the matrices F, C and H. The numerical values of these matrices determine the behaviour pattern of the concepts. Conversely, monitoring the actions generated by concepts should enable us to determine not only the values of the concepts but the exact values of the parameters that determine the nature of their behaviour.
RESULTS, DISCUSSION and CONCLUSIONS: The paper presents results of simulations and gives conclusions and further research topics.

 

2002-059
POSITIVE FEEDBACK LOOPS, PRINCIPLES OF PERMACULTURE AND TRACKING APPLIED TO LEADERSHIP AND CHANGE IN A COMPLEX SOCIAL ENVIRONMENT
Silva, Flavio, M.A.
mesquita@ceb.com.br
All animals, but human beings love visiting the 'transition zone', which is a place where distinct environments meet (i.e. prairie and forest, water and sand, etc.) These zones, known in permaculture as edges, are consisted of varied ecology and are abundant in resources. In other words, diversity is an integral part of nature, and as such, animals naturally accept and seek for it. The metaphor for humans is that, as natural beings, they can be affected in a way that they may re-discover (or uncover) how to operate in a diverse social environment as well.
The experience took place within the sole distributor of electric power in the cosmopolitan area of Brasilia, Brazil, the Companhia Energetica de Brasilia. As a consultant with the high direction of the company for the issues related to organizational development, I was first assigned to design the strategic planning of the company for the year 2002.
Most employees, however, were busy trying to understand the new organizational architecture, which had been previously designed by another group of consultants. There was a lack of certainty in terms of what would happen to the 'good old niches', held mostly by well-educated engineers, who were immersed in a well-defined hierarchical structure. There was a culture of doers with stiff postures, who followed specific rules to accomplish specific tasks. Besides, the new architecture was process-oriented while the former was goal-oriented.
The major obstacle was that there was no way to work on a strategic planning without aligning it to the company's new design. And the major initial challenge was to become the leader of a process, which I had been only partially assigned to lead.
The overcoming of this challenge required a paradigm shift of major degree. Principles of positive feedback loops and the foundation of tracking (people, in this case) and permaculture were utilized to design practices that brought people together to deal with the issue of cultural change in a complex environment.
The intention was to create a big picture for all the partakers, a single window of opportunities through which people with their multi-leveled perspectives and nuances could experience change. The key insight was to observe people's behaviors, including their avoidances, and map them, as it is done in the tracking tradition. As a result, two distinct patterns, which expressed, respectively people's likes and dislikes - preferences and non-preferences were woven together.
As the mapping activity progressed, the level of intangibles decreased. Conversely, the level of certainty increased in terms of what could be expected from the partakers. The next step was to generate new, creative impulses into the system, which took in consideration the patterns revealed by the partakers, so that they would react in new ways. Their responses to these inputs generated a sequence of new ways of conversations and actions, which gradually created the following: a) need for nexus; b) sense of purpose; and c) shared focus.
The complexity resided in aligning people who had distinct levels of perception, and were at different stages of integration of the already on-going process in the company. The creation of events in a designerly fashion proved to be very useful to assist people in moving along with the change process.
During a 10-month period of dedicated work of observation and leadership within the company, I witnessed people gradually drifting from sameness to newness, from linear thinking to systemic thinking. This intricate, evolving web of relationships where this work took place is what I want to demonstrate.

 

2002-060
TWO ARROWS MEETING IN MID-AIR: TOWARDS A NEW DIALOGUE BETWEEN SCIENCE AND THE SACRED
Charles Smith, Ph.D., Department of Management, Hofstra University, Hempstead, NY 11550, USA,
Email: c.h.smith@verizon.net
This paper explores places of tension and of convergence between modern science and the "wisdom" tradition. In light of systems thinking and emerging paradigms within science, it sometimes appears fruitful dialogue exists. Yet an unimpeded sharing is not easily found, and a great deal of misunderstanding remains between physical and social sciences and the wisdom tradition. It is suggested here that a better dialogue is possible and necessary, and that this dialogue would shed light on ways that we might better embrace the complexity and chaos around us.
The purposes of this paper are 1.) To identify some of the areas of misunderstanding between the natural and social sciences and the wisdom tradition, 2.) To suggest ways of resolution of these areas and 3.) To explore some of the fruitful insights that emerge by such resolution, particularly with respect to complex and chaotic conditions.
In the course of identifying fruitful areas of resolution, certain insights that appear to come from contact with the sacred and which have direct implications in science will be explored. These will include Nicholas of Cusa' explorations of unity, Kekule's dream of the structure of the benzene ring, insights into nature's structures emerging from Buckminster Fuller's meditations, and Muhyiuddin Ibn Arabi's possible allusions to super string theory. Thought experiments will explore the implications for natural and social science of the mystic's understanding of "recurrent creation"-i.e., of life as ever appearing in new configurations, and as "light upon light".
Further explorations will point to the contributions of the scientist to the spiritual explorer. The great scientists carry a spirit of adventure that is much less shackled by convention and belief than most commonly embraced approaches to spirituality. The freedom and daring of the forward thinking scientist, the openness to being taught, the willingness to expose one's ideas and to find flaws and inconsistencies-all of these remind those seeking wisdom of critical attitudes. It is suggested that is may be much easier today to find a scientist with a life affirming and forward vision, with an awe and appreciation for life, with openness to discovery, than it is to find a spiritual seeker with these same attributes. And yet the great wisdom teachings instruct that without these qualities no one can really make progress on the spiritual path.
Finally, this paper argues that a dialogue between science and the sacred, freed of misconceptions, will yield a clearer understanding of our emerging capacity to face the unknown and chaotic, to offer service to the world, and, by helping to address the problems around us, to be reinvigorated in our quest for inner and outer knowledge.

 

2002-061
DIALOGUE [IN THE TRADITION OF DAVID BOHM]: CAN SCIENCE AND THE SYSTEMS SCIENCES ALLOW FOR THE SACRED? CAN THE WISDOM TRADITION REALLY EMBRACE SCIENCE?
Charles Smith, Ph.D., Department of Management, Hofstra University, Hempstead, NY 11550, USA,
Email: c.h.smith@verizon.net
Using the dialogue method developed by Dr. David Bohm, we will share in an open dialogue on the issues related to the admission and embrace by science of the experience of the sacred, and the embrace of science by the wisdom tradition. Following Bohm's suggestion, the dialogue will be largely unstructured, using the principles of listening, suspending reaction, respecting and voicing in order to evoke deeper sharing in the realms of meaning and emerging insight. It is hoped that members of varied interests, both those disposed to the "spiritual perspective" and not, will attend.
If possible, this dialogue will be supplemented by a video showing of "A Chaotic Universe" from the series Art Meets Science in a Changing Economy, with Ilya Prigogine and other scientists, artists and spiritual leaders.

 

2002-063
CRITICAL SYSTEMS THINKING APPLIED TO RURAL TELECOMMUNICATIONS INFRASTRUCTURE PLANNING
T. N. Andrew1 and D. Petkov21, ML Sultan Technikon, Durban, P O Box 1334, Durban, 4000, South Africa,
E-mail: Theo@wpo.mlsultan.ac.za
2 University of Natal/Montclair State University, Private bag X1, Scottsville 3209, South Africa
E-mail:Petkov@comp.unp.ac.za
This paper discusses the application of critical systems thinking to the planning of rural telecommunications infrastructure. The Rural Telecommunications System is regarded as a complex sociotechnical system, and therefore the issues involved in the planning of telecommunications infrastructure for such a system are not just technological, but are often complex and 'messy', cutting across various aspects of the rural society, especially in developing countries. Critical systems thinking was found to be the most appropriate systems thinking approach that led to the development of a planning framework for rural telecommunications that caters for the diversity in the problem situation and interests of the various stakeholders. This paper provides the rationale for the use of critical systems thinking in the development of a planning framework for rural telecommunications infrastructure. Thereafter the development of a multimethodological planning framework that satisfies the fundamental commitments of critical systems thinking, such as critical awareness, emancipation, and methodological pluralism, is discussed. In particular, the justification for the mixing of interactive planning, interpretive structural modelling, and critical systems heuristics within the framework is presented. The paper will deal briefly with issues pertaining to paradigm incommensurability, and concludes with a validation of the planning framework.

 

2002-064
EPISTEMOLOGICAL PLURALISM: CROSS-CULTURAL MANAGEMENT CHALLENGES IN THE GLOBAL ECONOMY
David J. Richardson, School Management and Economics, Queen's University, Belfast.
PSC 78 Box 3866, APO AP 96326-3800 (USA)
The digital era of the information age allows the capability of a composite work force in a global enterprise to leverage corresponding global reservoirs of knowledge. However, while the culturally-driven epistemological diversity of a globalized work force can be a powerful corporate asset, it can also be a debilitating liability. The complexities posed by culturally diverse work environments of the globalized economy pose unique management challenges, requiring creative approaches for satisfaction. Management's challenge is to effectively leverage epistemological diversity. Successful use of epistemological pluralism can be a factor in generating environments conducive to knowledge creation, and in facilitating the ability for organizations to be capable of hypertransformation. Recognition of epistemological pluralism and its potential contributions provide a unique management challenge, which offers the potential of significant benefits. It is a challenge well suited to the use of critical systems methodologies; the critical systems approach is best suited to the cultural complexities of the global economy.
This paper provides an overview of macro epistemological influences and their potential relevance in the digital era of the information age. It suggests that these overlapping influences are also themselves being influenced by an evolving digital culture. Analysis of how these trends manifest themselves and in turn influence each other can be a means of facilitating operational synergy. In the process, this paper demonstrates the applicability of critical systems thinking and its inherent theoretical flexibility as an optimized means of dealing with the sophisticated management milieu of the digital era of the information age.

 

2002-065
SOCIETAL PHASE TRANSITION
Hellmut K. Loeckenhoff, Ossietzkystr. 14 D-71522 Backnang +43 7191 62295 Loeckenhoff.HellK@t-online.de
Change, social and societal, global and local has been discussed in depth and detail. As a particularly actual part of change, latest since Sep 11, the transition phases, mainly phase transitions, of social systems have gained focus. Each case is, due to widely differing preconditions, factually and systemically different. Nevertheless it seems worthwhile to remind and/or explore shared features, that is 'universals', of phase transitions. These will serve as a necessary framework for analysis, evaluation and eventually, prognosis. Mankind is responsible to guide and control its own evolution and history (also) by scientific means.
From the systemic point of view, phases of stagnation and transition may be distinguished as incremental, hidden change (as in the medieval times), respectively as visible and experienced adaptation to new life conditions. The development of the Western world between 1920 and 1989 may be signified as intensive adjustment. When e.g. incremental or gradual adaptation within the span of a generation cannot meet depth and dynamics of change, transition aggravates to phase transition, the shift into a new quality of equilibrium within a relatively short time. Partly stanched up to 1989, actual changes in particular on the global level right now attain the character of phase transitions as e.g. in power shifts and what has been termed the crisis of institutions. For the response and its success it seems crucial whether and how the necessity to change and the potential to meet it is valued and experienced.
Dependent from the case, a model of phase transition has to take into account a multitude of aspects and of their dynamic networking. Systemically, its mathematics as in chaos theory or in the Bayesian syllogism have to be explored. From the evolutional/historical point, models are presupposed of human evolution showing why the differences in technology, wealth, culture, stage of civilisation etc. did arise. Which kinds of development curves at which social levels need be hypothesised, and how are their dynamics linked by which functions? Toynbee and Spengler may complement socio-cybernetics. The actual shape these processes will take - or which particular models will own a sufficient power of to explain actual development - depends of course the material factual and systemic preconditions of the case in investigation. Specific and local history/situation/potentials need be scrutinised as well as the qualities and the dynamics of the surrounding systems. Evaluation towards a tentative forecast has to integrate these approaches into a coherent if open prognostic model. That demands the modelling and subsequent simulation of highly complex systems including the realms of human behaviour, motivation and mobilisation.

 

2002-066
CONCEPT MODEL OF ENVIRONMENTAL BUSINESS KNOWLEDGE CREATION SYSTEM FOR ISHIKAWA PREFECTURE
Yoshiteru Nakamori; Fei Gao, The Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology
Nakamori@jaist.ac.jp; fgao@jaist.ac.jp
Environmental issue has been a hot topic since early 1980s all over the world. Due to its vital importance to mankind, it has become a major consideration in almost every nation's economic and social development. Environmental problems have been caused by human's living-style and production style and in turn human being become the victim of the results. Since early 1970s people realized that environmental pollution caused mainly by industries had become such serious problems that they greatly damaged human's living environment and health and even threatened the existence of human being. Since then in order to copy with the environmental pollution problems, specialists in various fields from different perspectives made great effort developed different disciplines to control environmental pollution, manage production process, fix existed problems, recycle waste materials, conserve natural environment to improve the quality of human's living environment condition. Recent years in Japan environmental business have attracted both academia and practical fields' attention for its potential possibility of new business in Japan's long economic depression and the promotion of public attitude to environmental problems. Response to this, we propose a concept model of environmental business knowledge creation system for the local government aiming at establishing a communication and knowledge transfer channels among citizens, enterprise, NGO, and government.

 

2002-067
CRITICAL SYSTEMS THINKING TO KNOWLEDGE MANAGEMENT
Fei Gao; Meng LI, Yoshiteru Nakamori
The Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology
fgao@jaist.ac.jp
The paper initiated to introduce critical systems thinking into present study of knowledge and its management. The preliminary study showed that critical systems thinking provides a comprehensive and creative insight on tackling the increasing complexity of human knowledge and knowledge management process through the organic connection and division of knowledge systems, and encourages to critically use available methodologies in a coherent way to cope with corresponding subsystems or processes, which makes the complexity into convenient units. Based on the critical systems thinking, we divided knowledge into two aspects: static substance knowledge and dynamic process knowledge, which not only provide concise theoretical framework but also makes knowledge managers clearly understand the barycenter of their work in practices of knowledge management, and selectively utilize well-established methodologies in knowledge-related activities. The paper serves as an introduction to an application of critical system thinking and total systems intervention and providing a new thinking in diversified human knowledge topics.

 

2002-068
EASTERN MEDICINE AS A SYSTEMS SCIENCE (II)
Hisako M. Koizumi, Department of Psychiatry, The Ohio State University, Columbus, Ohio 43210
Email: Hiskoizumi@earthlink.net
This is a sequel to the paper, with the same title, which was presented at the ISSS 2001. In that paper, we showed how Eastern medicine was based on systems thinking in both theory and practice, using acupuncture treatment as an example. In this sequel, we further explore commonalities and correspondences between Eastern Medicine and systems science. To be more specific, the eight major ideas underlying the practice of Eastern medicine will be taken up and their relationship to systems ideas and concepts will be discussed. These eight ideas are as follows: (1) A human being as a microcosm, who exists in the macrocosm, namely, the universe; (2) Health as a state of balance in the process of the human being's adaptation to the ever-changing environment; (3) Yin-yang complementarity influencing the natural as well as human affairs; (4) Mind and body as inseparable and complementary entities; (5) The importance of maintaining balance between the left and the right side of the body and that between the upper and lower part of the body; (6) A specific part of the body as a mirror of the functioning of the different parts of the body; (7) The meridian system connecting different parts of the body; (8) The interaction between the meridian system and the environment, including the time of day and the season. Each of these eight ideas will be discussed in terms of systems ideas and concepts such as complementarity, feedback, hierarchy, hologram, homeostasis and synergy.

 

2002-069
TRANSDISCIPLINARITY AND MANAGING WATER IN THE LANDSCAPE
Roger Attwater*, Sandy Booth, Peter Davey, Alasdair Guthrie, Bruce Simmons
Centre for Landscape and Ecosystems Management, University of Western Sydney, Locked Bag 1797 Penrith South DC, 1797, Australia
(*corresponding author: r.attwater@uws.edu.au)
There is a growing recognition of the need for frameworks for environmental management which transcend disciplinary boundaries while building upon established approaches to applied research which have recognised legitimacy and utility. This is particularly the case in questions of managing water in a landscape context, where perspectives as to what a landscape context is depend upon worldview. This paper explores the implications of a transdisciplinary approach to managing water in a multi-faceted landscape context.
The first section of this paper discusses a range of perspectives on landscape context, and implications of these for managing water. Approaches to inquiry and management which seek to integrate perspectives are discussed, particularly including integrated catchment management. A number of Australian and international case studies which the authors have been involved in are then briefly described, to reflect the diversity of adaption and implementation given differences in scale and biophysical and sociocultural contexts
The second section of this paper discusses the approaches to date in identifying what being transdisciplinary means. Perspectives drawn upon will include those from a number of areas of inquiry involved in the search for conceptual and methodological pluralism, including systemic practice, landscape ecology, ecological economics, and civic and professional praxis. A core challenge of this search is the emergence of new concepts and language to complement, but move beyond, the language and assumptions which define disciplines. Emerging examples, such as the concept of resilience, are discussed.
Conclusions are drawn in relation to what it means to be transdisciplinary in our approaches to managing water in the landscape.

2002-070
MIXING META-METHODOLOGIES AND PHILOSOPHIES: WULI-SHILI-RENLI, PRAGMATIST AND PRACTICAL PHILOSOPHY.
Roger Attwater*, Centre for Landscape and Ecosystems Management, University of Western Sydney, Locked Bag 1797 Penrith South DC, 1797, Australia
(*corresponding author: r.attwater@uws.edu.au)
The dialogue regarding the emergence of pluralist approaches to systems thinking has been a central interest in the critical systems literature. From the debates surrounding the development of the system of systems methodologies, and critical perspectives on emancipatory practice, more recent critiques have reflected core principles of improvement and methodological pluralism. Philosophical perspectives potentially supporting a soft systems perspective were recognised at an early stage to be very broad, and after a Habermasian turn, recent works have included the relevance of pragmatist philosophy and modern interpretations of Aristotle's practical philosophy.
The recent inclusion in the systems literature of the Neo-confucionist philosophical underpinnings of the Wuli-Shili-Renli approach is a very important contribution. In the spirit of current interest in pluralism, this provides new opportunities for comparison the development of innovative mixtures of philosophies, meta-methadologies, and systemic applications. The ability to draw upon philosophical and methodological perspectives grounded in China and the West provide new intellectual resources for engaging with the socioeconomic and environmental challenges faced by us all.
This paper begins by briefly comparing the philosophical underpinnings of Wuli-Shili-Renli with perspectives drawn from recent interpretations of pragmatist and practical philosophy. The implications for mixing meta-methodologies and promoting cross-cultural systemic practice are developed. This is followed by the discussion of two cases studies in China which the author has an ongoing involvement. These cases deal with integrated environmental and water resource management. Conclusions are drawn in terms of implications for the ongoing developement of cross cultural collaboration in environmental management

 

2002-071
WHY DID NONAKA EVER HIGHLIGHT THE ROLE OF TACIT KNOWLEDGE?
Meng Li, Fei Gao, The Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology (JAIST), 1-1 Asahidai, Tatsunokuchi, Ishikawa, Japan, 923-1292
Polanyi introduced the concept of tacit knowledge in mid 20th century. It was not until early 1990s that Nonaka systematically made use of the dichotomy of knowledge as explicit dimension and tacit dimensions in his landmark theory of knowledge-creating company that triggered a continuing enthusiasm on tacit knowledge in developing business knowledge. Nonaka highlighted the role of tacit dimension of knowledge in processes of organizational knowledge creation in Japanese manufacturing companies. The phasic conversions between tacit knowledge and explicit knowledge as well as their dynamic spirals within or across organization become a classical commentary for the unique competences of Japanese manufacturers' triumphs in 1970s and 1980s. With accumulations of literatures on knowledge management and unlimited generalization of the theory by academic and practitioners in varied contexts and fields, it is worthy of rethinking why the guru ever emphasized the tacitness of knowledge and under what kind of circumstances the theory is conditioned.
Nonaka just outlined 'knowledge creation' instead of 'knowledge management' (he even expressed that knowledge cannot be 'managed'). His central arguments were based on proactive knowledge creation in industrial companies. In view of organization theory the approach made it focus only on human activities in organizations, which renders context strongly connected with and conditioned by managerial style, organizational culture, organizational structure as well as social configuration. Having misunderstanding the essences, it is easy to fall into in either information management trap or misdirect the center of gravity of management efforts.
Only after fully understanding the 'why-question', can we proceed to precisely address those ensuing 'what-, how-, and which-questions' in various problematic contexts and fields. Practitioners can strategically allocate organization's resources to tackle problems and issues with appropriate approaches and methods. By means of systems thinking, the paper revisited the philosophical underpinnings and theoretical positions of Nonaka's theory as well as the reality of Japanese manufacturing industry and pointed out misunderstandings of recent studies on knowledge management and possible negative impact on researches and practices.

 

2002-072
ADDRESSING COMPLEXITY THROUGH CRITICAL, SYSTEMIC PRAXIS FOR DESIGN, PROBLEM SOLVING AND GOVERNANCE
Dr Janet McIntyre, Senior Lecturer, Flinders Institute of Public Policy and Management
Janet.McIntyre @flinders.edu.au
In this paper examples of participatory design based on participatory action research (PAR) and a modified form of a community of practice (derived from Wenger 1998) are critically analyzed with a view to "unfolding" (as per Ulrich 2001) the implications of COPs for addressing technical/instrumental, strategic and communicative knowledge (as per Habermas 1974). This requires matrix team approaches to design, plan and implement policy to address the complex, interrelated social challenges we face currently and in the future, namely: social and environmental sustainability in terms of socio-demographic, political, economic, technological and environmental challenges.
COPs facilitate capacity building in ontological and epistemological skills pertaining to working with, rather than within boundaries of knowledge. COPS use action learning within and across sectors and disciplines and in response to a changing world. Engagement is with individuals and groups within the local context of organisations, but the context is shaped by global challenges. Thus the social, cultural, political and economic and environmental context in which organisations operate need to be considered in designs for the future. This impacts on learning, public policy, management and governance.
In a complex, changing world integrated responses are needed. The narrow compartmentalised approach to addressing problems is being redressed by innovators in many areas of research and practice who realise this. One of the key challenges for the future is building and sustaining the rights and responsibilities of citizens through developing social and environmental capital, not only economic capital. We need to be mindful that we are citizens, not merely customers and that the social and environmental contract is deeper than any commercial contract. Developing the capacity of citizens to situate personal issues within a complex public context is the ultimate focus. Learning needs to enable the participants to design for the future (Banathy 1996,2000) at both the local and the global level. Participants need to be able to make sense not only of their own field of practice, but learn to engage with others in other fields of practice. Identity based on one set of assumptions and values associated with one's own learning and experience needs to be expanded to negotiate with other frameworks of meaning. This involves becoming boundary workers across discipline areas, sectoral areas and socio psychological and cultural areas (as per Churchman 1979,1982). The work of critical and systemic thinkers (such as Romm, Flood and Jackson) needs to be applied to public policy as an area for the skill development of embodied, value-laden human beings.

 

2002-073
FUZZY LOGIC GROUP DECISION SUPPORT SYSTEM FOR AGRO-BASED INDUSTRY
Prof. Dr. Syamsul Maarif, Prof. Dr. Eriyatno, and Dr. Ir. Machfud Industrial and Management Engineering Laboratory Bogor Agriculture University Bogor - INDONESIA
The development of agro-based industry at rural area was found to be complex whereas its criteria and factors for investment were mostly fuzzy and vague in nature. Therefore, system thinking and approach was used in this applied research to accomodate participation of stakeholders and institutions involved. Expert judgments in development planning process was required. Moreover, the business decision process which includes many participants with different preferences and fuzzy in logical frames, need comprehensive procedure to make effective results. The decision support system is a methodological instrument that aim to reduce business risks and increasing utility values based on field data.
The systemization of model design was started by compiling logical relations that form the structure of the agro-based industry system.The core of the DSS was arrangement of system components int hierarchical model.; brought verbal weights among elements and then synthesized the alternatives to get priorities. The main objectives of this research was to construct a group decision support system (GDSS) for planning the agro-based processing industry in Indonesia. Case study was carried out in West Java province for essential-oil industry, especially vetiver plant products. The GDSS was integrated into computer package of Expert Management System through fuzzy logic techniques.
The research found that Interpretative Structural Modelling with Fuzzy was able to identify hierarchical structures, characteristics and key elements as well as the driving forces for essential oil industry at rural areas.
The DSS was also able to set up priority for its developmental activities.
Based on these results, simulation was carrued out to analyze technological aspects, source of business investments and form of related institutions. The on-the-field verification recommends the establishment of Post Harvest Enterprises on small scale business, which in cooperated with farmers organization to increase local community welfare . The best policies was application of steam distilation technology, source of capital with revenue sharing or leasing scheme , and direct exporting products. The GDSS performance indicators included parameters on production practices, product quality, feasibility of the business and community participation.

 

2002-074
CHANGING CORPORATE EDUCATION AND KNOWLEDGE MANAGEMENT
Masayuki Tsuchida1,2; Meng Li1; Yoshihiro Aoike2
1The Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology
2Human Resources Development Company, Matsushita Electric Industrial Co., Ltd.
Corporate education of Japan's large companies undergoes gradual changes in training contents, pedagogy, evaluation and post-program systems. Japanese companies have been well known for their distinctive corporate training system since the postwar period that provided a great amount of capable work forces for catch-up endeavors. While social-economic milieus varied over times in the past decades, the system experienced changes from vocational training and introduction of management knowledge, to development of new style leadership.
The paper in a systems perspective reviewed the determinants of the systems changes and their interplays in transition. The reflections responding to external changes revealed the system succeeded in providing technical specialists but failed to generate creative and strategy-focused leaders urgently required for corporate reforms in today's global competition. Due to ongoing changes in lifetime employment system, a lifetime employability of employee is at the heart of both individual and company's concerns. The structural shift allows corporate education to be incorporated as a constitutive part of knowledge management under an umbrella of corporate strategy. The new opportunity makes it possible revisit the existing education system by outsourcing generic vocational training and building online learning, and economically narrowing down the scope of training programs, and well focusing on corporate-specific programs (leadership development, specialized technology, intra-company MBA, etc.) among preferred candidates. In this way, corporate academy can be shaped into a base camp of spreading knowledge-enabling facilitators onto each subsystem (division or department).
We also point out the system does not only is of importance for its conventional position in facilitating continued learning activities, but its new role, as strategic partnership, in developing and maintaining high quality leadership resource within organization, which function is irreplaceable by outside institutions. Moreover, it can cross organization to spill its well-developed programs and resources over customers, suppliers and local communities, to speed up a fundamental transition from a cost center to profit center of the system. Moving a model of corporate academy or institute of large Japanese companies would make it be convergent with corporate university in US and Europe.

 

2002-075
A CRITICAL SYSTEMS THINKING INQUIRY INTO CHAOS AND COMPLEXITY THEORY IN MANAGEMENT
María Carolina Ortegón Monroy
University of Lincoln, Brayford Pool, Lincoln, LN6 7TS, UK
E-mail: mortegon@lincoln.ac.uk
This paper presents the theoretical and practical findings emerging from an exploratory study of Chaos and Complexity Theory (C&CT) as an alternative approach to propitiate new understandings about the nature of management in organisations. They show that C&CT is not theoretically coherent enough to be applied in practice. The study involved a theoretical and a practical part. The theoretical exploration was conducted from a Critical Systems Thinking (CST) perspective. It involved a theoretical inquiry particularly of Stacey's account of C&CT, presented in Complexity and Creativity in Organisations. This is presently considered to be one of the fullest and probably the most widely read management account on the subject. 'Jackson's 1991 framework' of CST, used to interrogate systems approaches, constituted the selected approach to conduct this theoretical exploration. From this theoretical exploration a series of findings were produced. They reveal incoherencies, which were further explored through the findings emerging from the exploration at the practical level. The practical exploration was conducted in the Humberside Training and Enterprise Council (Humberside TEC), which introduced C&CT ideas as part of its process of becoming a learning organisation. The focus of this practical exploration was the first self-managed team of consultants belonging to the Investors in People Directorate.
The paper thus involves a critique, characterised by a discussion about the theoretical incoherencies of C&CT and their implications in the practice; a discussion about Stacey's claims for management; and a re-consideration of the value-adding and difficult-to-embrace points attributed to this approach, in order to determine what this approach can deliver in practice. The theoretical incoherencies demonstrated in the practice are: questioning the technical interest while seeking to determine regularities in behaviour; considering control as an illusion but accepting regulation of behaviour to propitiate conditions for mutual understanding; considering changes in schemas as liberating but being enslaved to one schema; the pervasiveness of a dominant schema versus the view of change in organisations as a dynamic of changes in schemas; considering complex-pluralist contexts as normal but making unitary assumptions in terms of intervening; and encouraging a structuralist approach for intervening while advocating a social constructivist view.

 

2002-076
'PLATFORMS' FOR CRITICAL SYSTEMS PRACTICE: AN ORGANISATION-BASED ACTION RESEARCH PROJECT
Alvaro Carrizosa de la Torre
University of Lincoln, Brayford Pool, Lincoln, LN6 7TS, UK
E-mail: acarrizosa@lincoln.ac.uk
This paper is the result of reflection and debate, which has been reciprocally enriched by theory and practice. It presents the findings of an organisation-based action research project, where the researcher entered into a real-world situation and aimed both at improving it and acquiring knowledge about the experience. He became, for a period of 3 years, involved in the flux of 'real-world problems' within an engineering company that invited him to do research by using systems ideas in practice.
This research project produced a series of findings contributing to the study of the process whereby different systems methodologies, methods, tools and techniques are used in combination. This process is known as Critical Systems Practice (CSP). The study yielded 'defensible generalisations' from a series of research themes explored. They constitute four issues relevant to CSP, namely, (a) pluralism, (b) improvement, (c) modes of research, and (d) the role of the agent. The learning derived from these research themes led the researcher to formulate the 'transferable problem solving capacity' of the study: the enactment of 'platforms' as devices for operationalising CSP. This paper thus recapitulates on the contributions of this research endeavour had on the four research themes and on the emergence of platforms as devices for operationalising CSP.

 

2002-077
INFORMATION - THE POWER OF CHANGE
Ann Lind and Bertil Lind, University College of Borås, S-501 90 Borås, Sweden
e-mail: ann_maria_lind@hotmail.com and bertil.lind@hb.se
Evolution and change have been characteristics for the world ever since the creation of man. When the primitive man wanted to perform a task, he looked at the world around him to find something that could serve as a tool. He gathered information and used the information he found to change his living conditions. The word information comes from the Latin informare which means to give something form. Information is intended to give the perception of a concept or an activity a form. When gaining experience of using the tool the primitive man modified it to suit his purposes. In that way it is possible to accumulate information in the form of knowledge, communicate it to others and in that way pass on vital knowledge to coming generations. In this paper we are discussing different views on the concept of information and how change may be powered by information. We are also relating information to knowledge. Human activity systems, for example a person using a tool, or a social system, have the ability to obtain and use information and to consciously create change because of their cognitive ability. We limit our discussion to such systems. Information may be gained through cognitive activities or through activities involving the surrounding world. The system will change according to the information that it receives. Without information there is no reason for and no basis for change. Changes in human activity systems will result in information causing actions that will modify the internal cognitive system and the surrounding world. Such actions may therefore change designed physical systems, such as industrial machines, and designed abstract systems, for example theories but also other human activity. The information that can be found by observing the world around us will therefore change and new information may be obtained. Cypernetic loops will thus occur involving human activity systems and other systems in the surrounding world. With the vast amount of information available to us today, it is not surprising that we also experience a change-rate higher than ever before. Human beings, activities and opinions will change more frequently. Since information is the basis for change the ability to use the accessed information gives power to influence other people and change the world. Therefore it is of importance to investigate the relationship between information and change to illuminate how the mechanism to create change from information works. In this paper we are presenting arguments for our view and models to illustrate how information may power change. In the models we use cybernetic loops to create an understanding of the evolution. The basic mechanism of gathering information to solve problems has not changed from the primitive man to the modern man. But the world is not the same. The actions of previous generations based on their information have created the world as we know it today.

 

2002-078
TRUSTABLE COORDINATOR SUPPORTED VALUE-EXAHNGE SYSTEMS OF VOLUNTARY SERVICEDS IN COMMUNITIES
Kunihiko Kido, Seiti Hasegawa, Koichi Haruna, Toshiharu Kato
The degradation of a community in advanced countries is one of the most deep and complex societal trends of the past 30 years. Moreover, a trend toward more individualistic lifestyles is causing diminished ability of the community and of the family to support their own members. This shows the unavoidable necessity of reconstructing a societal system that can support an aged society.
For example, in Japan, the nursing-care insurance system was started in 2000. In this system, care services are provided to customers through the care service market. However, there are many necessary services (for example, the service of speaking with an old person) that are not covered in the nursing-care insurance system, but are important to improve the health condition of elderly people. It is insufficient to solve the nursing problem solely by market solution. Thus, we have to complement the service of administration and private sectors with mutual aid and construct voluntary service exchange processes in regional communities.
In voluntary service exchange processes, it is necessary to promote the participation of various participants. To achieve this end, it is necessary to increase the reliability of those processes and reduce social costs for those processes.
Today, social costs for global and complex trading has been declining by the introduction of e-commerce. But the weak such as elderly people can't easily use e-commerce services based on the concept of contract. Therefore, it is required that the construction of new trustable value-exchange systems for these people. This paper aims to provide the solution of earlier problems by introducing the concept of fiduciary in equity law and proposes coordinator supported value-exchange systems. Moreover, we adopted community currency called EcoMoney as the value-exchange medium of a variety of voluntary services. The main purpose of the proposed system is to create active and comfortable communities by implementing the exchange processes in order to improve mutual communication and dependence in regional communities.
In order that system is trustable, it is important to manage quality and efficiency of services provided in voluntary communities. We propose introducing the coordinator that is an intermediary between participants in communities. Here, we thought that for managing quality and efficiency, it must be effective to introduce obligatory rules based on the concept of fiduciary for coordinators: the duty to furnish information, the duty of loyalty and the duty of care. All coordination practice by coordinators is recorded to coordination log files. And the history of every coordinators practice could be checked and studied by a community council that all coordinators are expected to attend.
We developed the prototype system based on the above concepts. We performed several preliminary experiments in order to study and improve this coordinator-supported service exchange process. Those experiments showed that it is difficult to operate the community of more than five hundred participants without any system such as the proposed system in this paper and an increasing tendency of voluntary service transactions.
The 3rd EcoMoney distribution experiment in Kuriyama-cho Hokkaido has been performed since September 2001. The proposed system has been used in this experiment. The length of the experiment is one year and a half. At January 2002, 567 participants have joined in this experiment. Service registrations amount to 2265 services. In this paper, we plan to describe the present situation of this experiment.

 

2002-079
NEGOTIATION AND SYSTEMS VIEW IN THE ELABORATION AND CELEBRATION OF INTERNATIONAL TRADE CONTRACTS
Carla A. A. Ventura, MSc, PhD Student at the University of Sao Paulo, Brazil, caaventu@eerp.usp.br
Dante P. Martinelli, MSc, PhD, Professor at the University of Sao Paulo, Brazil, dantepm@terra.com.br
In the globalized world, international trade is a source of profits and, above all, of power and influence of developed countries regarding developing countries. The various facets of Systems Thinking are an indispensable component for a more comprehensive and global view of the Negotiation process, aiming at making it more systemic. A tentative outline of a systems approach to Negotiation is presented, based on the points considered fundamental to increase its comprehensiveness and with the purpose to foster more lasting relationships. The significance of knowing how to handle the different worldviews of the parties and of trying to attain an evolutionary Negotiation process are stressed.
Therefore, this study aimed at analyzing the importance of negotiation in the elaboration and celebration of international trade contracts. Based on the above mentioned theoretical foundation, the authors verified how three companies located in the region of Ribeirao Preto (Brazil) performed the negotiation of their international contracts. Data were collected through semi-structured interviews, using a guiding instrument, applied at three companies: a large company characterized by the predominance of national capital, a transnational enterprise and a small national company.
Based on a systemic view, we can state that the negotiation process presents many facets, such as: the variables involved, the negotiation styles, the abilities, the ethical issue, conflict management and resolution. It is also very important to have an intense participation of the ones involved in the process, in order to enable the development of their abilities. In a negotiation process, we must continuously pursue the systems view aiming at achieving a win-win result, which means the satisfaction of all the sides involved in the process.
The results of the study evidenced the differences and similarities among the companies, regarding the procedures used in their negotiations as well as the bargaining power of the companies characterized by the predominance of international capital. Hence, the national companies must understand all the variables involved in the process of negotiation of their international trade contracts in order to strengthen their position in the global market.

 

2002-080
FORMULATION OF THE STRATEGIES IN A SMALL ENTERPRISE IN THE EDITORIAL MARKET
Wilson Calil, Master Student at the University of Sao Paulo, Brazil, wcalil@hotmail.com
Dante P. Martinelli, MSc, PhD, Professor at the University of Sao Paulo, Brazil, dantepm@terra.com.br
Bower et alii (1992) make a clear division in their theory about strategic planning. According to them, there are three phases in this process: formulation, implementation and evaluation. While formulating the company must analyze market threats and opportunities, its weaknesses and strengths, must consider the influence of personal values in the process, and finally, must consider the social responsibility.
Related to implementation, the factors that must be used are: work division, information system, pattern processes, performance evaluation, incentives to strategic objectives, punishment and control, recruitment and development of executives.
The evaluation is a continuous activity, with a systemic and general view of the whole process, in which we can correct the path to improve the strategic process in the organization as a whole.
Churchman (1971) sees the essence of the Systems Approach as being the design of an inquiring system capable of unfolding the relevant issues concerning the human condition. This approach "belongs to a whole class of approaches to managing and planning our human affairs with the intent that we, as a living species, conduct ourselves properly in the world" and is "comprehensive", based on the fundamental principle that all aspects of the human world should be tied together in a grand scheme. Comprehensiveness requires objectivity - to be open to all those aspects one ought to consider.
Checkland's Soft Systems Methodology (SSM) was developed from the real experience of being not able to solve real, ill-structured problems by means of "hard" methods. The result was a methodology which operationalizes Churchman's philosophical analysis and is capable of orchestrating conflict and promote consensus.
This article will analyze the strategy formulation activities of a small sized publishing house, and will compare them with Bower et alii's theoretical model. This company was founded in 1995 by two journalists in Sao Paulo state (Brazil). Since then, it has been working with social projects, which consists in the production of children's books (related to social issues), its selling to the government and the implementation and monitoring of an education project.
The company initiated its formal activities of planning in 1995, when the first plan, named "development market plan", was formulated. It was a market plan for a little collection of children's books, a line of products that involved issues related to citizenship. In the following years the publishing house improved its formulation process. Until 1999, the strategic plans were just marketing plans, but in 2000 and 2001 they became strategy plans, including all areas of the company. The company was faced with many formulation problems, that, along with other factors, prevented their employees from reaching the strategic objectives. These problems were viewed and analyzed with the systems view, to suggest improvements in the whole process.

2002-081
BUSINESS 'GUANXI' IN CHINA: A SYSTEM OR NON-SYSTEM
Martin Parnell, Liverpool Business School
The phenomenon of 'guanxi' is a highly personalised form of networking that is a key social 'institution' in China without which nothing of substantial importance can be achieved in either politics or business. The extent to which this key, integral socio-cultural phenomenon lends itself to systems analysis depends largely on its accessibility as an 'organisation'.
However, 'guanxi' represent, by definition, an extremely informal and unofficial form of human channels and processes which depend for their effective functioning on complete confidentiality and discretion. It is this reality which makes systematic, empirical enquiry so problematic - not surprisingly, in Nojonen's words: "Today very little is known about the strategy, tactics and ethics of 'guanxi' in the Chinese business world." *(see below)
The proposed paper focuses, nevertheless, on what is already known as a basis for further analysis, primarily within the human resource dimension, proceeding according to the following stages : 1. a review of current theoretical frameworks and models for 'capturing' and explaining the phenomenon 'guanxi', including 'mapping' approaches; 2. a brief investigation of the ethics of 'guanxi'; 3. relating the foregoing findings to the concept of network capitalism and the role of human resources in penetrating the P.R.C.-market. A central issue addressed is the training of expatriate managers to handle 'guanxi', not least in their role as supervisors of Chinese personnel; 4. review and conclusion: this incorporates a summary of the preceding sections, interpreted in such a way as to highlight three particular areas where further research could be of value : i) the implications for additional theoretical and practical work in relating very Western HRM practices to (the) very Chinese 'guanxi'; ii) possible implications for other dimensions of business activity in China, e.g. (relationship) marketing; iii) indicating potentially fruitful 'entry points' for systems analysis of 'guanxi'.
* Matti Nojonen, Various worlds of establishing and justifying 'guanxi' in Chinese business, p.5.

 

2002-082
SOME SYSTEMIC IMPLICATIONS OF COMMON OWNERSHIP; A SHIFT OF BUSINESS PERSPECTIVE FOR THE 21ST CENTURY?
Sylvia Brown, Transmuter@tesco.net
This paper is an early-stage attempt to map out and understand some of the ramifications of Common Ownership financial structures in business enterprises. Case study material is included, to illustrate some of the systemic properties discussed.
Mutuality in the conduct of business exists for a variety of reasons and in many different forms. For example, at one extreme, it may be adopted only as a "last resort". In such cases, arguments for common ownership could rest upon systemic environmental pressures that might have caused it to emerge.
This paper's main topic, however, is not this but Common Ownership as an ethical choice, located in a field of other options. Its main thesis is that ethical Common Ownership Companies (C.O.C.s) are viable alternatives to Traditional models of organisation, i.e. hierarchical and capitalist enterprises that act as if they believe in Neo-Classical economic theories. The discussion explores the proposition that the complexity that C.O.Cs must manage is composed differently from the complexity that most Traditional companies apprehend. There are additional elements to be monitored and managed, both internally and externally, some of which are consequent on the behaviour of the mainstream majority. Conversely, there are some elements of complexity faced by the mainstream that simply do not arise for ethical C.O.C.s.
Consequently, the set of challenges that arise for C.O.C.s also must be managed differently. For example, ethical dimensions of practical challenges will be addressed, rather than ignored or "fudged". A high system level question illustrating this additional complexity for ethical C.O.C.s is how the ethical principles of founding members can be extended into evolving business structures, or even if they should be. I see the main challenge for ethically-driven businesses in the 21st Century is how to be successful and profitable and remain within their founding ethical principles. The corollary of this is the further question, whether it is possible to make ethical principles a higher priority decision rule than remaining viable, in extremis. Since examples can be found, the answer is "Yes". Some of the challenges at other system levels are reviewed, before a summary of what the mainstream might learn from C.OCs.

 

2002-083
SOME CONSIDERATIONS ON INTERACTIVE MANAGEMENT
Wan Jiangping1 Yang Jiangmei2
1 College of Computer£South China Univ. of Tech., Guangzhou , 510640
2 Faculty of Business Administration, South China Univ. of Tech., Guangzhou, 510640
This paper considers the principles of interactive management in the view of books of changes in the first, then illustrates that the elements of interactive management are support structure, work program of complexity and the laws of complexity. The relations among them are analysed and explained. Finally, We explain how the Microsoft enterprise structure to realize the value of IT in the view of interactive management.
Keywords: Book of Changes, Interactive Management, Support Structure, Work Program Of Complexity, the Laws of Complexity, Microsoft Enterprise Structure

 

2002-084
EXPLORING A CROSS-CULTURAL CONTEXT FOR KNOWLEDGE MANAGEMENT
Zhichang Zhu, The University of Hull Business School, Hull HU6 7RX, UK
z.zhu@hull.ac.uk
This paper questions the popular claim that knowledge management (KM) is becoming the most universal management concept in history. It does this by exploring a cross-cultural context that brings to light the unique features and associated problematic of differing KM styles: the American, the Japanese, the European and the Chinese. It presents evidence that, despite growing connections, uniqueness and heterogeneity among KM styles worldwide are likely to continue due to differences in histories, cultures and institutional forces. Consequently, rather than from a universal concept or an isolationist strategy, the paper concludes, KM will benefit from globally informed indigenous practices.
If you assume that you couldn't possibly learn anything from a set of people, you're not going to delve into the content of the ideas they embody. Robert E. Cole (1998:54)
Knowledge management (KM), defined broadly as a loose set of ideas, tools and practices centring on the creation, communication and utilisation of knowledge in organisations, has during the last several years enjoyed an emerging popularity across disciplines and industries all over the world. Management scholars begin to proclaim the possibility of KM becoming 'the most universal management concept in history' (Takeuchi, 2001:328).
In this paper, I intent to question this 'universality' claim. I will do this by, first, presenting an overview of the perceptions and practices of KM in different socio-cultural settings, exploring their distinctive features and associated problematic. I will then show evidence of the continuous and insistent heterogeneity among KM styles, which throws the universality claim in doubt. I will conclude that KM overall the world can benefit, not through a universal concept, but through a strategy of globally informed indigenous practices.
The research presented in this paper was conducted during a research visit to the Graduate School of Knowledge Science, Japan Advanced Institute of Science and Technology (JAIST) in 2001. The author would like to extend his gratitude to JAIST and President E. Shimemura for their generous financial support.

 

2002-085
REPRESENTATION OF KNOWLEDGE IN ECOLOGICAL-ENVIRONMENTAL SYSTEM DYNAMICS MODEL
Pawel Bartoszczuk1, Yoshiteru Nakamori2
1) Japan Advanced Institute of Science and Technology, School of Knowledge Science, Hokuriku, 923 1292 Japan,
bpawel@jaist.ac.jp;
Systems Research Institute of the Polish Academy of Science, Warsaw, 01 447 Poland, 2) Japan Advanced Institute of Science and Technology, School of Knowledge Science, Hokuriku, 923 1292 Japan nakamori@jaist.ac.jp
In the systems sciences, economical and ecological system dynamics models are widely used as a tool for representation of knowledge from this area. It is followed, in many cases, by simulation, prediction and decision making. The bases for model building are human expertise in economics, data analysis and modeling. First, connections between economical or ecological data specifications and ecological are formalised. Next, the modeler may perform simulation runs of the model using existing system dynamics modeling tools, such as Powersim®.
One of the great advantages of the system dynamics method is its problem-oriented approach. The non-discipline-constrained nature of the mathematics of dynamics enables any relationship -- biological, physical, or social -- to be modeled. It is not unusual, therefore, for system dynamics models to embody knowledge from both the natural and social sciences. System dynamics was originally developed in the 1950s to industrial processes, but now is currently being used for policy analysis and design. In this model knowledge that already exists about relationships among the levels is used and expressed in terms of interlocking feedbacks loops.
This paper describes the model of economic development with the burden on lately discussed relationship between pollution and income. The model yields insight into the possibilities for replacing not renewable resources with more renewable ones. Simulated so far relationships between variables ought to undergo yet more cautious examination.

 

2002-086
LIVING SYSTEMS SCIENCE METHODOLOGY FOR MANAGING COMPLEXITY AND CHANGE
James R. Simms, 9405 Elizabeth Court, Fulton, Maryland 20759
Methodologies for managing complexity and change based on living systems science are presented. Managing complexity and change requires an understanding of complex systems and their environments. Living systems science has attained the maturity to provide this understanding. Living systems science provides a means for understanding both the static and dynamic characteristics of systems. This understanding is based on identification of the determinants of a system's structure and organization (static characteristics) and a system's behaviors (dynamic characteristics), and on the relationships among these determinants. Managing complex systems and their changes requires identification of those determinants that can be changed (managed) and the development of methodologies for analyzing systems' behaviors when the determinants are varied. The determinants of complex systems are identified and methodologies for managing complex systems are provided.

 

2002-089
IMPROVING PRODUCT DESIGN AND DEVELOPMENT BY LIVING SYSTEMS THEORY
Parviz Ahari Royal Institute of Technology Department of Machine Design Engineering Design, S-100 44 Stockholm, Sweden
Product design and development is a complex activity that involves different specialists, organizations, and different kinds of materials, energy, and information. In spite of the systemic nature of this process most literature that deals with product design and development does not provide a more precise description of products as systems or components of a system and the systemic relation of these products with human systems or with other systems. In this paper an attempt is made to clarify some important issues in order to improve the product design and development process. The issues discussed here are as follows. Some problems with current methods are presented. The importance of systems sciences is briefly explained. Some basic concepts and terminology in product design and development are described with living systems theory (LST). LST is integrated with other approaches to form a multi-methodology. A systemic model that shows the relations of all kinds of products to each other is provided.
2002-090
PRAXEOLOGICAL AND SYSTEM ELEMENTS OF PROCESS MANAGEMENT IN THE ORGANIZATION
dr. Wojciech Cieslinski - WWSZiP, Mrs Ryszard Kobylka - The President of RAFAKO Company
In the following paper there are shown some problems which are connected with praxeological and system definition of business process in the organization.
Based on practical example there are presented process systems of the Polish stock company "RAFAKO S.A." (the producer of boilers for energetic).
The treatment is based on the system formulation for business processing which occur in the factory.
Their analysis is formulated according to the conception of prof. Kotarbinski, Pszczolowski and Gasparski, the Polish authorities of praxeology.
In the analysis of the business processing are adapted the practical method (Rafako Process Modeler - RPM)) which is assisted by information instruments (BSC)
The praxeological and system formulation helps to analyze business effectiveness in the organization (Rafako S.A.).
The system overview of the organization enable implementation of integrated information systems and quality effectively (ERP, ISO).

 

2002-091
CONCEPT AND LINGUISTIC THEORY OF SYSTEMS
J Korn, Visiting Fellow, London School of Economics, 116 St Margarets Road, Edgware, HA8 9UX, UK
e mail : janos999@btinternet.com
It is the author's experience that at conferences and meetings on topics of aspects of systems science questions are still raised regarding :
1. The meaning of the term 'system', what is meant by modelling, concept of emergence and other basic principles,
2. How we know that we 'think and practice systems'.
We assert that the systems phenomenon perceived by viewing a chosen part of the world in terms of appropriate constituents, although showing immense variety and diversity, is single and pervasive throughout experience. It is an alternative view to many others such as that to conventional science. Yet there is a diversity of systems activities like : engineering control/computer systems, biological systems, information systems, management, project management, systems engineering, etc. There appear to be : difficulties in practical application of systems ideas, a reluctance to accept systems thinking by learned societies and little impact of systems thinking on established branches of knowledge like engineering, biology, economics, social sciences and others.
These observations, if reflect a true state of affairs to an appreciable degree, indicate a lack of coherent and fundamental approach to 'systems' which can be related to experience and used for predicting the occurrence of outcomes and for design of products and aggregates of interacting objects. The aim of the proposed paper is to outline a framework for such approach, thus, to attempt to alleviate the problem outlined.
Natural language appears to be the most widely used and versatile symbolism evolved by people, for carrying thoughts arising from real or imaginary interaction with own being and the surrounding. Through stative and dynamic verbs language refers to perception of states and their change. This enables us to describe by means of simple set theory a concept of stative and dynamic systems or aggregates. This is to be followed by a proposed 'theory of change' firmly rooted in existing branches of knowledge which is to be applicable to situations and scenarios with constituents carrying qualitative as well as quantitative properties. Thus, mathematics although carried by the theory, is not a directly suitable symbolism, however, natural language appears to be. Such language due to its complexities, use of metaphors etc. needs to be formalised to lead into an inferential structure capable of predicting the occurrence of outcomes and leading to a method of generalised product and systems design. This is carried out by a form of predicate logic based on a diagram of simple, related sentences showing the structure of 'system' with constituents which preserve their identity and chosen properties.
The proposed theory takes into account uncertainties associated with activities of human and other constituents. However, human constituents can exhibit will, ambition, caprices etc. which has consequences : 1. The number and variety of properties of constituents is not bounded, 2. The predictive power of a theory is strictly limited : the principle of 'uniformity of nature' no longer holds. This raises the question of use in general of symbolic theories in situations and scenarios with living especially human constituents.

 

2002-092
CAUSAL SYSTEMOLOGY: COMBINING GENERAL SYSTEM THEORY WITH THE UNIVERSAL LAWS OF DEVELOPMENT OF MULTILEVEL SPACE-TIME-ENERGY CONTINUUMS
Alexander Pelmenschikov,1,2 Alla Bolyanovskaya,2,3 Inna Shakhlevich,3 and
Vitali Polyakov3
1Italian Academy of Management and Psychosystemology, Via Artigianato 2, 20061 Carugate, MI Italy, 2Associazione per lo Studio dei Sistemi Italo-Russo (ASSIR), Via Artigianato 2, 20061, MI Italy, and 3International Scientific School of Universology, Prosp. Shokalskogo 29/2 87, 129221 Moscow, Russia
With the aim to achieve the maximum universality and holism, Causal Systemology (CS) (V.Polyakov, 2001) integrates (i) the basic concepts of General System Theory with (ii) five general philosophical principles (duality, analogy, causality, periodicity, and alternativeness) within three sign-numerological models. These models represent the most universal {space-time}, {space-energy}, and {time-energy} aspects of hierarchic and synergetic cause-and-effect relations (the upper/lower triangle corresponds to the continuum of cause/effect). Transcending the "basic philosophical question", CS also puts forward the principle of mutual causality of matter and consciousness.
CS considers mankind as one of the interconnected multilevel cosmic systems, with stable prosperity of whole human society and any its sub-system being primarily dependent on the harmonization of synergetic/hierarchic interactions at/between all the 7 levels of system relations in accordance with the "ideal vector of development" imposed by the cosmic super-system (3 superior levels not presented in the models (7+3=10)). For a social system the "ideal development" is defined by synthesizing these three models:
1) the model of "attractors" or purposeful orientations (model 1),
2) the model of stage-by-stage development (model 2), and
3) the model for prognostication of qualities and the most favorable way of development (model 3), which couples Pythagorean numerological matrix method with the Kelly's method of repertory grid and allows to synchronize a system and all its sub-systems with the dominant rhythms of rotations of Earth around its axis and Sun.
CS proposes systemic approaches to the global problem of renewal of all the aspects of human life: politics, economics, education, healthcare, etc. The corresponding projects are represented by different areas of Universology: Causal and Systemic Analysis, Prognostication and Diagnostics of Systems, Cardinal Psychology, Akmeological Psycho-futuring, Integral Education, Social Systemology, Universal Management, etc. Polyakov, V. (2001). Universology (in Russian), VEVER, Minsk, Byelorussia.

 

2002-093
INSTITUTIONAL COORDINATION PROBLEM: AN OBSTRUCTION TO PROMOTION OF INDUSTRIAL BACKWARD LINKAGE
Mohamad S. IMAN*, Akiya NAGATA
School of Knowledge Science, Japan Advanced Institute of Science and Technology, Tatsunokuchi, Ishikawa 923-1292, Japan
E-mail: mohamad@jaist.ac.jp
This paper shows that the performance of industrial backward linkage from Foreign Direct Investment (FDI) companies to local suppliers is largely determined by how well incentive structure works to encourage participating parties to function properly. As North (1990) stated, it is a well functioning institution that shapes the incentive structure of players. It is arguable that to achieve well performing backward linkage promotion the host country should pay more attention to institutional coordination, rather than the issue of strict or loose policy toward FDI.
Based on their experiences in implementing strict policies toward FDI such as local contents requirement, which have led to inefficient FDI as well as local companies, developing countries tend to change their policies to the direction of liberalization. They believe that liberalization policy attracts international market oriented FDI companies, which produce international standard products and capture scale economies. Such companies give more opportunities of backward linkages to local companies and help the locals to upgrade their technological capabilities.
In line with the global market orientation, however, FDI companies also tend to globalise their procurement and supply chain management through global or cross sourcing strategy. This brings local companies into severe competition vis-a-vis global suppliers. Unless conditions exist to allow local companies to be competitive, liberalization policy does not necessarily imply the above opportunities.
From interviews with Japanese MNC investing in Indonesia and local companies it is clear that backward linkages in Indonesian machinery industries still remain low even though Indonesia has been implementing liberalization policy since the second half of 80s. It is largely because of the institutional coordination problem indicated by, among others, the lack of consistency and coherence in policy and underdeveloped business environment, such as information asymmetry, rent seeking lobby, difficulties to access financial and technological facilities. These ultimately hinder local companies to be more competitive.

 

2002-094
SOME QUANTITATIVE ANALYSES OF THE MEI-SYSTEMS THEORY*
Wang Huanchen, Management School, Shanghai Jiaotong University, Shanghai, 200030, China
(hcwang@mail.sjtu.edu.cn)
At first, the fundamental concept of the MEI-Systems Theory is introduced. Here the "MEI-System" is the system of the combination and interaction of the materials, energy and information. MEI-System is a fundamental system in the world. According to this theoretical research approach the theoretical foundation of the sustainable development could be found and the fundamental sources of the human wealth could be illustrated. Then, a W-Diagram of the MEI-Systems analysis is given for the quantitative illustration of the human wealth. Thirdly, self-increasing conditions of the total production value of an economic system is studied. Finally, surplus limitation rates of the economic system is discussed based on the MEI-Systems Theory.
* Supported by the National Natural Science Foundation of China (79870052)

 

2002-095
ANALYSIS OF CORPORATE GOVERNANCE SYSTEMS AND CORPORATE GOVERNANCE INFORMATION SYSTEMS
Li Weian, Lin Runhui, International Business School, Nankai University, Tianjin 300071, China)
linrunhui@263.net
Corporate governance has gained more and more attention both in theory and practice as a world wide research topic. It is very necessary and urgent to study corporate governance today with the globalization of economy and the development of information and network technology. In this paper we study corporate governance as a system, a system of mutual function process among the parties involved in corporate governance. The concept and characteristics of Corporate Governance Systems (CGS) are analyzed. Good governance relies on the scientific decision making mechanisms and the premise is timely, accurate and complete information. But in CGS the information bottle-neck obstructs the information flow among the stakeholders. To solve above problems and find good approaches to guarantee the effectiveness and efficiency of CGS in new economy, we adopt information and network technology into corporate governance and present the concept of Corporate Governance Information Systems (CGIS). The meanings, connotation, characters of CGIS and the approaches how the CGIS breaks the information bottle-neck are analyzed. Then the relation between CGIS and CGS is discussed and the support of CGIS to CGS is studied. The different functions and sub-systems of CGIS are also presented in the paper.
With the development of information and network technologies and the ever-changing, uncertain, complex environment of enterprises, information is getting more and more important to guarantee the effectiveness and efficiency of corporate governance. It is helpful and important to study corporate governance as a system. The adoption, construction and application of CGIS are necessary and operational to good governance.
Supported by National Natural Science Foundation of China and Social Science Foundation of Education Ministry of China.

 

2002-096
THE INFLUENCE OF INDIVIDUALS' SYSTEM-VIEW ON SOCIAL DECISION-MAKING
ANALYSIS WITH A QUESTIONNAIRE SURVEY FOR RESIDENTS IN NEIGHBORING AREA ON NUCLEAR POWER PLANT
Kaori SHINOZAKI*, Akiya NAGATA
School of Knowledge Science, Japan Advanced Institute of Science and Technology, Tatsunokuchi, Ishikawa 923-1292, Japan
E-mail: kshino@jaist.ac.jp
Recently people pay much attention to social technology adoption since the relationship between technology and society is increasingly close. Problems related to building of nuclear power plants and discussions of development on genetic recombination foods are typical cases. Such technology adoptions have a characteristic of decision-making problem involved in multi-subjects. Then, these problems include extremely complex processes because each has its own expectations and anxiety.
In general, it is important to coordinate or have a common understanding on the opinions among multi-subjects. However, it has never been well elucidated how decision-making mechanism builds these concepts. In this paper we take the case of decision-making on building of nuclear power plants and analyze empirical data statistically. Then, we elucidate social decision-making mechanism and propose practical conditions for social decision-making.
Under uncertainty, a decision over an introduction of new technologies related to nuclear power plants and the pros and cons of building a new plant must be made. On the other hand, since there is information asymmetry in a real social system, people never grasp all information. Therefore, they simplify the decision-making process by complementing information shortage with some expectations.
To model the expectations mechanism for reducing complexity on decision-making, we introduce Niklas Luhmann's theory on "Trust". He categorized trust as "personality-trust" and "system-trust". Such framework of concept is effective for describing humans' decision-making process and useful for elucidating how their system-view affects it. System-view stands for one's attitude for an object while interacting with others. We mention system-view because we reveal hidden factors on decision-making. Therefore, we focus on such concepts and aim to show a system on social decision-making.

 

2002-097
THE EVOLUTIONARY AND PLURALISTIC DESIGN PRINCIPLES OF SOCIAL SYSTEMS IN THE GLOBAL AGE
Akira Tokuyasu, Faculty of Social Sciences, Hosei University, 4342 Aihara-machi, Machida-shi, Tokyo 194-0298 JAPAN
atokuyas@mt.tama.hosei.ac.jp
We formulate the evolutionary and pluralistic design principles of social systems in the global age, especially with reference to Niklas Luhmann's theory of social systems. With several paired concepts, such as national society/world society, stratification/functional differentiation, diffuse/specific, universalistic/ particularistic, inclusion/ exclusion, we illustrate the transformation of social structure and its effects on the constructive principles of social systems and the definition of individual identity. Every functional subsystem has become more autonomous, and the socio-cultural sources of individual identity have become more diversified. We then propose the concept of the intermediary unit and discuss its significance and relevance in the social systems theory. In the background of this discussion there lies the actual situation that there is no system of meaning and values valid in all the areas in the world society which has emerged in the process of functional differentiation and globalization, nor can we design such a system theoretically. We consider the significance of intermediary units, define the competition of intermediary units and meaning-value-spaces in the actual social process as the politics of meaning, and propose the new form of pluralism based on the concept of poly-contexturality. These situations seem to make the whole world more and more complex, risky, uncertain and intransparent. The evolutionary and pluralistic design principles of social systems including various intermediary units improve our capacity to cope with future risks.

 

2002-098
A SIMULATION ANALYSIS OF KNOWLEDGE SHARING IN ORGANIZATIONS
Atsushi INUZUKA*, Yoshiteru NAKAMORI
School of Knowledge Science, Japan Advanced Institute of Science and Technology
ainuzuka@jaist.ac.jp, nakamori@jasit.ac.jp
The concern with knowledge sharing in organizations has been growing. In practical phase, it is said that there are two types of management strategy for knowledge sharing. One is called "personalization strategy" which aims to interchange the knowledge in person, and the other is "codification strategy" which aims to reuse the knowledge with codifying it carefully.
This paper proposes a method to evaluate the cost effectiveness for an each strategy by simulation, focusing on not only organizational constraints but also peculiar characteristics of knowledge or organizations. After then, we find the concrete conditions in which an each strategy should be situated.

 

2002-099
RESEARCH ON INTERNATIONAL KNOWLEDGE SPILLOVER TO CHINA'S ECONOMY
Guo Lihong and Feng Zongxian
In the trend of global economy, international knowledge spillover is a popular phenomenon. As a developing country, China's economy must be affected by international knowledge spillover, especially entering WTO. Therefore, it is important to research on international knowledge spillover and how to utilize it to promote China's economy.
This paper establishes an empirical model along the train of the theory of endogenous economic growth. It absorbs the ideas of Solow (1965) and Romer (1990), thinking that technology progress is the source of economic growth of a country and it depends on the level of human capital and accumulative knowledge of research sector. In order to convenient for empirical analysis, this paper uses educational investment and the stock of technological labor to measure the level of human capital of a country. For the economic growth of a country not only depends on the domestic accumulative knowledge but also depends on accumulative knowledge of foreign countries in opening environment according to the research achievement of Grossman and Helpman (1991), this paper uses the investment of domestic research and development (R&D) and the investment of foreign R&D to measure the level of accumulative knowledge. Furthermore, for the foreign direct investment (FDI) of Multinationals is the channel of international R&D in the background of global economy, this paper uses FDI instead of the investment of foreign R&D and measures the foreign accumulative knowledge indirectly.
Based on this econometrics model, this paper using the data of China's statistical yearbooks and regressive analysis of SPSS software package, examines the contributions of the main factors affecting technological progress to China's economic growth and finds that China's technological labor and educational investment is less affecting China's economic growth but FDI is more. Domestic R&D investment is the reverse factor. Through compared with other countries such as Japan?Korea?Singapore and America, this paper also finds that the levels of China's R&D investment and educational investment of government are very lower. Therefore, this paper suggests that China's government should improve the levels of educational investment and R&D investment to raise international competition of it. At the meantime, this paper also suggests that the government should pay more attention to the human capital and adopt proper policies to promote absorbing the introducing technology from abroad.

 

2002-101
ECOSYSTEMS APPROACH FOR SUSTAINABLE DEVELOPMENT
HYUK KIHL KWON, 6704 Los Verdes Dr.#2 Rancho Palos Verdes, CA, 90275. U.S.A. E-mail: khyukihl@hanmir.com
One of the most interesting themes at 21st century is the environmental problem. It means that environmental crisis is serious to us, mankind. Now, 'Sustainable Society', 'Sustainable Future', ' Sustainable Development' are the main themes for ecologist. Also, it become clear that Environmental Ethics Education is one of important approach for sustainable future.
In this article, I intend to research that Environmental Ethics Education is one of ecosystems approach for sustainable development. I will start to explain for ecosystem theories and the trend of environmental approaches. And, I will introduce the environmental ethics education is one of ecosystems approach.
Ecosystem is a biotic and functional system or unit that is able to sustain life and includes all biological and non-biological variables in that unit. (Sven E. Jorgensen and Felix Muller. 2000) Generally speaking, the holism and reductionism are two different approaches to reveal the properties of complex systems such as ecosystems by studying the systems as a whole. We need both approaches because the natural system is extremely high complexity and it is not possible to obtain a complete and comprehensive picture of natural systems by alone, but it is necessary to synthesis important analytical results to explain system properties.
I will research the environmental problem by ecosystems approach for sustainable development. And, I will introduce the environmental ethics education is one of the ecosystems approach for sustainable development.

 

2002-102
EVOLUTION OF INTERNATIONAL COMMERCE IN A GLOBAL COMMUNITY
Jennifer Hinman, 680 North 500 West #304, Provo, Utah 84601
As the world becomes increasingly connected by communication and transportation, persons of different nationalities and origins are becoming more aware of each other. Such awareness has altered the nature of business and international expansion among those countries that are most connected to each other. For example, Japan currently shows visible signs of strong U.S. cultural influence in the Japanese media, movies, music, and styles, and the Japanese frequently visit the U.S. for both business and vacation. Such ties with the U.S. have contributed to a steady demand for U.S. goods, including vintage clothing-An old pair of Levis sold at a U.S. thrift store could sell for hundreds or even thousands of dollars in Japan. International commerce is changing for those countries that are most connected and aware of each other through media, communication, and transportation which facilitate cross-cultural awareness. Although trade is frequently analyzed solely by economic theories, as countries become more of a global community, an integrated look at both communication, economic, and other cultural theories provides a more complete view of the evolution of international trade.

 

2002-103
POLITICAL AUTHORITY IN A DEMOCRATIC SOCIETY: A SYSTEMS PERSPECTIVE
Park, Hyo-chong, Department of National Ethics Education, Seoul National University, Seoul, Korea.
This study is an attempt to examine the question whether the authority institution which operates in a democratic society constitutes an opening system or an autopoietic system. On the basis of the Korean experience, it argues that the holders of political authority with specific values and rules can behave independently of the external environment, the democratic social system. Its conclusion is that an authority institution should be viewed as an autopoietic system, which is internally closed and open in its relation to the wider social context.

 

2002-104
A QUASI-TRANSCENDENTAL INTERPRETATION OF HERMAN DOOYEWEERD
FP (Petrie) Coetzee, Technikon Pretoria, Pretoria, South Africa
Herman Dooyeweerd was a 20th Century Dutch and Christian philosopher who devised a comprehensive philosophy which he termed The Philosophy of the Cosmonomic Idea (or Cosmonomic Philosophy, for short) (Dooyeweerd, 1953, 1955, 1957, 1958, 1968, 1979). This philosophy is systemic in the sense that it portends to account for all of reality. He was adamant that this philosophy is a Christian philosophy; that is, that it emanates from specifically Christian presuppositions. He consequently set out to show how all non-Christian philosophies bear antinomies or contraries while only his own philosophy remains consistent. His philosophy can itself however, on logical grounds, be shown to rest on infirm foundations. Nevertheless, the philosophy does bear some useful and potentially powerful notions. Some of these have already been employed in systems thinking, others still stand to be explored for their application in this sphere. A most central notion in the Dooyeweerdian scheme is that of disclosure of meaning or of sense (sense-disclosure), with this notion acting as nucleus of a whole cluster of Dooyeweerdian concepts. In an attempt to transfer some of the systems-oriented ideas of Dooyeweerd, and the notion of sense-disclosure in particular, to a less infirm philosophical foundation, the edifice of Dooyeweerd can be translated from its specifically Dooyeweerdian, Christian, and transcendental foundation to an immanent or social metaphysical one. This can be done by emulating Werner Ulrich (1983) in his quasi-transcendental interpretation of Immanuel Kant for deriving his critical systems heuristics methodology of systems analysis. This paper demonstrates such a quasi-transcendental interpretation of Dooyeweerd and of his notion of sense-disclosure with its associated cluster of ideas. An indication is given of how this particular interpretation has contributed to the concept of the Sense-seeking Systems model of innovative systems (Coetzee, 2000).
See paper for references.

 

2002-110
A PLANNING METHOD FOR THE STRATEGY-ADAPTED INFORMATION SYSTEMS
Taketoshi Yoshida(*)and Toshiyuki Hattori, School of Knowledge Science
Japan Advanced Institute of Science and Technology, Asahidai, Tatsunokuchi, Ishikawa, 923-1292 JAPAN
E-mail: yoshida@jaist.ac.jp
This paper proposes a new method to extract the requirements for the strategy-focused information systems. This may be thought as a kind of an application of the balanced scorecard approach, which studies and investigates the management strategy from four perspectives; financial, customer, internal-business-process, and learning and growth perspectives. The proposed method produces a strategy map, balanced scorecard, and in addition to the regular pictures in the balanced scorecard approach, bird's-eye view of IT-oriented indexes. The purpose of these pictures is to articulate the requirements of information systems which are adapted for the management strategy. Consequently, we can apply the soft systems methodology to further develop the information systems. Here, the developed information systems can become to be evaluated from the four perspectives in the balanced scorecard. Finally, we will show a case study about the application of the proposed method to the planning of the information systems at a Japanese manufacturing company.

 

2002-111
THE DEVELOPMENT OF INTELLIGENT SYSTEM SOFTWARE FOR COMPANY PERFORMANCE RATING EVALUATION
Marimin1,2, 1Department of Agro-Industrial Technology, Faculty of Agricultural Technology, Bogor Agricultural University, Bogor, Indonesia
E-mail: marimin@indo.net.id
2Center for System Science and Studies of Indonesia, Jakarta, Indonesia
This paper discusses the development of a software module for company's performance rating evaluation using neuro-fuzzy techniques. The system was designed to identify and evaluate company performance rating and suggest the follow up action to maintain and/or improve the performance. The performance identification module covered the operational and finance stages. The software module was implemented on Matlab computer software, which can be used as a consultation media by company auditors.
The factors accommodated in to the system covered: identity of company, value of detail achievement rating factors, ANFIS structure, membership, rule, and suggestion. The operation and finance factors of a company were represented by fuzzy values and processed by Adaptive Neuro Fuzzy Inference System (ANFIS). The neuro-fuzzy technique described the mapping of input into output. Neural network algorithm was used to determine the maximum value of the inference result. The suggestion was derived by using fuzzy rule based inference mechanism.
The system was verified on performance evaluation of an agro-industry at Indonesia. The system was able to identify the performance rating and suggest the follow up action to maintain and/or improve the performance rating. The system is still needs to be enhanced to accommodate multi auditors simultaneously. Hence the system can be integrated into company information system.

 

2002-112
APPROACHING CULTURAL DIVERSITY THROUGH THE LENSES OF SYSTEMS THINKING AND COMPLEXITY THEORY
Satu Teerikangas, Institute of Strategy and International Business, Department of Industrial Engineering and Management, Helsinki University of Technology, P.O.Box 9500, 02015-HUT, Finland
email: satu.teerikangas@hut.fi
The present paper assesses the contribution of systems thinking and complexity theory on understanding the impact and management of cultural diversity in the context of cross-border acquisitions. Culture has become a topic of growing interest and significance in an era of increasing globalisation, yet it can be argued that it is a concept that is largely misunderstood. Hence, discourse on culture in both academic and business communities suffers from confusion, and the potential inherent within cultural diversity remains untapped.
The reasons for the misunderstanding can be seen as stemming from the way it has been approached by research in recent decades. Culture has been studied by social and management sciences alike, the former holding the longer and richer tradition. Management scientists have often taken a reductionist view to culture. For one, this shows that the message from social to management sciences has been slow to pass. For another, it seems that the prevailing reductionist worldview and philosophy of science is taken for granted by many management scientists in the study of culture. Third, approaches to culture are undermined by a Western worldview, whilst accounting for cultural diversity itself might provide a more appropriate answer. Finally, culture is often taken to mean "one" culture, although it would seem more appropriate to talk about "cultural diversity", as any event presents cultural challenges at many levels. These early findings would seem to point to a need for a more systemic view of culture recognizing its complex nature.
An example of the failures of the reductionist perspective to the study of culture can be found in research on acquisitions. As with management literature, research on acquisitions and their integration has focused on "culture-general" approaches, without specifying the applicability of these approaches in the presence of cultural diversity. The field of research looking at culture and acquisitions has not only failed to establish a culture - performance link but has also failed to provide an overview of the challenges and management of cultural diversity throughout the acquisition process.
The present research takes a holistic and transdisciplinary perspective to understanding the impact and management of culture on the acquisition process. In this paper, the conceptual work aiming to link the concept of culture to both systems thinking and complexity theory is presented. It is argued that given the holistic, flux-like and complex nature of culture, its study would require approaches recognizing these characteristics. Here, the contribution of both systems thinking and complexity theory to the study of culture is reviewed. First, the concept of culture, its theoretical and methodological evolution as well as its main research applications in both social and management sciences will be presented. Second, the contributions of systems thinking and complexity theory to the understanding of cultural diversity will be assessed through a review of their key assumptions and theories. Finally, the conclusions will be set in the practical context of cross-border acquisitions.

 

2002-114
EXTENDED LANDSCAPE THEORY FOR ORGANIZING KNOWLEDGE OF ALLIANCES
Shigemasa Suganuma, Huynh Van Nam, Shouyang Wang, Yoshiteru Nakamori
In this research, we aim at extending the landscape theory by using fuzzy set theory for alliance analysis. Particularly, we reformulate Axelrod and Bennett's landscape theory by using a fuzzy partition instead of a crisp partition.
We then develop a genetic based algorithm for finding a near-optimized solution for the so-called energy function defined on the space of all fuzzy configurations.
Numerous attempts have been made by scholars to show the alliance in simulation.
The theory has potential for application to coalitions of business firms, political parties in parliaments, social networks,social cleavages in democracies, and organizational structures. So based on our simulation on alliance, we will discuss the problem of organizing knowledge

 

2002-115
RISING OF A NEW CIVILISATION: THE FUTURE OF GLOBAL SYSTEMS
Shamim Bodhanya
The potential exists for the emergence of a new civilization, that is more inclusive, participatory, and one that is more tolerant of dissent and difference. Such a civilization will be one that does not attempt to impose a single "new world order" but rather encourages multiple, complementary world orders. The current global systems have become hard-wired to entrench and perpetuate the status quo. It has become clearer in the last decade, that the situation is a tenuous one, with the potential for collapse of global systems. Weak signals pointing to the collapse of the current world order include inter alia:
The vulnerability of the world's financial systems which was demonstrated in the closing years of the 20th century in the form of the Asian financial crises, and the financial difficulties experienced in Argentina in recent weeks.
Serious conflicts and hotspots in many parts of the world including the Middle East, especially Palestine and Iraq, and conflict in the Great Lakes region of Africa.
Breakdown of democracy and the rule of law in countries such as Zimbabwe, with serious, adverse impacts on the fledgling democracy in South Africa.
The "War on Terrorism" subsequent to the September 11, attacks on the United States of America.
Increasing Xenophobia and attempts to restrict immigrants in many parts of Europe and elsewhere in the developed world.
Developing countries and less powerful groups from developed countries feeling increasingly alienated and marginalized, hence an increase in global stakeholder and protest groups that have attempted to disrupt proceedings of the powerful, such as those of the World Economic Forum (Seattle, Sydney, Doha etc.)
This paper argues that global systems are poised at the edge of chaos, with potential for falling into the abyss of anarchy and large scale collapse that will be detrimental for the human condition. Alternatively, drawing on notions of complexity theory, it argues that the time has arrived where there is the potential for spontaneous self-organisation, to a new attractor, that establishes a new trajectory for humankind. Such a trajectory is one that is more promising, inclusive and participatory. It is shown that the plethora of global systems (including financial systems, political systems, multi-lateral agencies, trans-national corporations etc.) are themselves all inter-related, and may not be viewed in isolation - rather systemic approaches are required to understand and influence their trajectories. It is further argued that trans-disciplinary approaches are imperative if we are to see a new civilisation rising. The alternative is almost too dismal to contemplate - complete breakdown of global systems with humanity relentlessly heading towards self-destruction.

 

2002-116
TEACHING COMPUTER SCIENCE IN AN INTERACTIVE ONLINE MODE
Dr. Miriam R. Tausner, College of Staten Island / CUNY, 2800 Victory Boulevard, 1N-215, Staten Island, NY 10314
tausner@acm.org
For the last few semesters I have had the privilege of being involved in online course development sponsored by the City University of New York. While the online software we are using offers new opportunities to supplement classroom teaching, my personal challenge has been to develop a mode of delivering lessons which simulates the interactive approach of classroom teaching.
I have developed a format which alternates rather small chunks of "To Read" portions with short "To Do" exercises. The "To Read" chunks are explanatory, and usually show an example or two of a concept introduced.in that chunk. The "To Do" portions present short follow-up questions which the students are asked to answer. The answers are not shown immediately but each exercise is followed by an underlined link labeled "click here to check your answer".
The answers are available with a mouse click and after verifying their own answer, the students can go back to the lesson in progress with another click of the mouse.
This semester I am experimenting with this lesson format, teaching part of a course in a traditional face-to-face mode and having the students access on-line lessons to cover the other part of the course. For consistency, I have provided on-line lessons for all of the material, even the material being delivered in the traditional classroom setting.
The online software also supports the use of student groups, allowing me to divide the class into small subgroups. I have used this subgroup approach for several homework and programming projects. The members of the group can then discuss and exchange work over the internet, and their communications are limited to the official group members. I choose these groups assigning 3 to 4 members to each, trying to make each group contain students of mixed strengths and abilities. The groups are charged with submitting a group project at the end and/or presenting their best homework solutions to the rest of the class. Several interesting group properties and outcomes have emerged from this approach.
In this paper I will discuss my experiences with online teaching in general, covering this interactive approach as well as various other ways in which I have supplemented the traditional teaching of Computer Science using online teaching software.

 

2002-117
UTILIZING COMPLEXITY TO CHANGE PSYCHOLOGICAL LANDSCAPES
Maryann Reese, MA, LMFT, Southern Institute of NLP, P.O. Box 529, Indian Rocks Beach, FL 33785. sunnlp@intl-nlp.com
Dr. Miriam R. Tausner College of Staten Island / CUNY2800 Victory Boulevard, Building 1N-215 Staten Island, NY 10314 tausner@acm.org
Since we published the paper, titled "Systems Model Provide a View of Psychological Self-Organization" in the proceedings of ISSS of 1999 we have experimented with our model of Reorganizing Psychological Landscapes and its application to the field of psychotherapy.
In refining our original model, we find it useful to conceptualize a landscape with reference points, triggers and attractor states. Following through on the landscape metaphor we envision basins of attraction which are the self-organized collections of attractor states. We find that we can effect change by perturbing the triggers and allowing the attractor states to self-organize, thereby reorganizing the whole system.
In our previous paper "Systems Models Provide a View of Psychological Self-Organization," we refer to negative and positive basins, and discuss the possibility of using chaos or confusion to alter the psychological landscape moving individuals from negative basins to positive basins.
In this paper we will present an overview of the step by step process that we use to move individuals from negative to positive basins. In essence we elicit and bring into consciousness the triggers that propel individuals into their negative basins and identify the triggers that will be used to direct them into positive basins. The intent is to enable the individual to build or reinforce a positive basin.

 

2002-118
THE EVOLUTION OF DEMOCRATIC POLITICAL SYSTEMS IN THE INFORMATION AGE: DIGITAL DEMOCRACY
Ilsoo Cho, Seoul National University, College of Education, National Ethics Education, San 56-1, Sillim-Dong, Kwanak-Gu, Seoul, R.O.K. 151-748
ilsoo@unitel.co.kr
Existing representative democracies throughout the world are undergoing major transformations with the advent of information communication technologies (ICTs). However, we know much less about ICTs' political impacts: Into what form will our democratic political systems evolve in the future? Because democracy is a complex, dynamic, non-linear and multivariate phenomenon, there is no "one truth" or "right way" to develop a new democratic political system in the information age. In this regard, it would be better to blend several disparate, but interconnected, modern theoretical and scientific developments, including (1) post-Newtonian physics, in other words, the theory of relativity, quantum theory; (2) the 20th-century evolution in democratic theory; and (3) the 20th-century revolution in ICTs. Digital democracy, the effort to enhance democracy through ICTs, can be one of the strong alternatives for the new political systems in the information age. It not only conforms to changing paradigm in natural sciences, but also can resolve some problems of representative democracy revealed in the industrial society and also take advantage of some traits that direct democracy and deliberative democracy are believed to have.

 

2002-119
COMPLEXIFYING ORGANISATIONAL DEVELOPMENT: AN HRD PERSPECTIVE
Yolles, M.I., Liverpool Business School
Iles, P. Teeside Business School
Organisation Development is a powerful methodology that has been used to help organisations change. Its power as a method that could deal with cultural change is well known. Its antecedent is said to be systemic, however its nature in this respect is quite elementary, seeing a system as a simple transformer of inputs to outputs. This can be complexified significantly by attuning it to some current development in Viable Systems Theory. The purpose if complexification is to enable the new approach to deal with much more problematic situations by developing greater insights into what is happening in the organisation, and how it can be dealt with. Traditional OD is in particular concerned with culture, power and control. However, integrating Viable System Theory enables us to develop a broader patterning of the organisation that is capable of more subtle and sophisticated distinctions.

 

2002-121
TO WHAT EXTENT IS THE "SYSTEM" IDEA USEFUL FOR UNDERSTANDING THE ACT OF KNOWING?
Andrés Mejía D., Depto. de Ingeniería Industrial, Universidad de Los Andes, Calle 19A No.1-37 Este,, Bogotá, Colombia
E-mail: jmejia@uniandes.edu.co
Some strands within the systems movement, particularly soft systems thinking and some forms of critical systems thinking, have used the system idea as the central conceptual element for understanding and describing the act of knowing. In this view, systems would be instances of conceptual schemes which organise, connect, and give meaning and sense to human experience, thus producing knowledge. Furthermore, systems as conceptual schemes would be selective in that they would take only part of the totality of experience-which would be a consequence of the finitude of human beings-in that process of making sense of reality, thus leaving out, or ignoring, the rest. That selectivity would be, at the same time, a sign of the partiality of the knowledge so produced, and of the impossibility of any realistic aspiration to absolute validity or truth.
Nevertheless there is a problem with that view of knowing, in that it does not provide a satisfactory account of the act of coming to know the meaning of other people's utterances, or interpretation. Interpretation is important for the approaches aforementioned, however, insofar as one of the objects of inquiry that their users have-either for understanding or for critique-is the views of other people. This clearly requires interpretation. But they have provided no account of interpretation at all, and therefore it must be taken for granted, assuming it to be unproblematic and independent from the act of knowing reality. But an examination of how it occurs and of what makes it possible, as Donald Davidson's work on that issue shows, suggests that the very idea of a conceptual scheme is not intelligible, let alone necessary for making sense of the act of knowing. Now, Davidson's theories can be described as essentially holistic. Two questions immediately arise: What would a holistic view of interpretation be? And what role does the system idea play in the acts of interpretation and knowing? Davidson has already gone a long way in answering the first of these questions, but arguably this answer needs to be clarified and developed so that his conclusions can be applied to what can be labelled interpretation across worldviews or paradigms. In this paper I intend to present that clarification and that development, and to give an answer to the second question about the role the system idea plays in the acts of interpretation and knowing.

 

2002-122
SYSTEMS ARE NEITHER THINGS OUT THERE IN REALITY NOR MENTAL CONSTRUCTIONS
Andrés Mejía D., Depto. de Ingeniería Industrial, Universidad de Los Andes, Calle 19A No.1-37 Este,, Bogotá, Colombia
E-mail: jmejia@uniandes.edu.co
The question "what is a system?" has been discussed by important authors within the systems movement, like Churchman and Checkland. This discussion was triggered, presumably, by a basic disagreement with other systems thinkers over whether systems could be said to exist "out there", to be part of reality. Actually within the soft systems thinking and to some extent also within the critical systems thinking traditions, so-called hard systems thinkers have been charged of wrongly believing that systems could be such objects of independent existence of the human mind. Instead, a view was proposed according to which systems are seen as actually being somewhat arbitrary mental constructions, partial and subjective, a consequence of the finite capacity of humans to make sense of the world.
Two options to choose from are then set on the table. ¿Are systems things in the world that can, for instance, be described and represented by means of systemic models? ¿Or are they mental constructions, the manifestation of our incapacity to take everything into account, that nevertheless allow us to make sense of our experience and of the world? It is my contention, and the main conclusion of this paper, that there are problems with both views of systems. As already mentioned, the soft systems tradition has criticised the hard systems view. Nevertheless, even though the core of that analysis is correct, and especially those aspects pointing at the necessary presence of normative judgements in definitions and descriptions of particular systems, there are some aspects of it which are notably misleading. These aspects have actually led soft and critical systems thinkers to propose an alternative understanding that cannot account for important features of what we have traditionally called systems. For instance, they cannot account for the fact that sometimes collectives of elements seem to us to not be arbitrarily or subjectively constructed by our minds Ultimately, I will argue, the problem can be traced back to the idea held by most authors that language represents reality, even if only according to a conceptual system or weltanschauung.
But what are systems, then? A proposal for understanding systems will be advanced, which can be described as non-representationalist, linguistic, local.

 

2002-124
USING META-MODELLING TO FORM AN INTER-CULTURAL EAST-WEST SYSTEMS BRIDGE
Cathal M. Brugha, President, The Management Science Society of Ireland (member of IFSR), Department of Management Information Systems, University College Dublin, Belfield, Dublin 4, Ireland cathal.brugha@ucd.ie
This paper uses two transdisciplinary approaches, Critical Realism and Nomology, to build an East-West inter-cultural systems bridge whereby to facilitate mutual sharing of understanding of systems theory and experience of systems practice. Critical Realism differentiates between three levels of epistemology, the empirical, the actual, and the real, so as to focus on the "real" underlying or generative dynamics in any system. Nomology (the science of the laws of the mind) uses meta-modelling of human processes to synthesise emergent theory arising from settled practice in systems into general theories. It synthesises by discovering parallels between systems at the level of generative linguistic processes.
The paper considers how nomological concepts, laws and models developed in the context of particular fields in the West can be properly transferred to the East. It explores parallels between systems that have emerged out of recent Western practice and systems associated with traditional Eastern culture that may appear to be less well developed, theoretically speaking.
Previous research focused on a correspondence between WSR (Zhu and Gu) and the three main processes in Nomology, which showed matches between wuli and adjusting, shili and convincing, and renli and committing. This paper examines the adjusting process and shows that its underlying dynamic is the finding of balances between several dichotomies. This produces two, four, eight, and sixteen activities that inter-relate sometimes as cyclical processes and other times as types. Parallels are shown with the He Tu - Former (Early Heaven) Diagram of the I Ching, the Four Noble Truths, The Eight-Fold Path and the Eight Wires of Great Learning.
The comparison is continued in the context of the Systems Development Life Cycle methodology for developing projects. Previous research had shown this to be based on three layered processes. The highest layer is concerned with commitment to phases of proper analysis, design and implementation. Within each phase there is concern with doing the different technical, contextual and situational aspects convincingly, making nine stages. Within each stage it is necessary to make appropriate adjustments to the project to complete that stage properly. This paper now proposes a fourth process, which is that within each project adjustment stage there is a requirement for the project decision-makers to make appropriate adjustments in their own behaviour in the interests of the project.
Western examples of project adjustment systems are given. A qualitative research method for diagnosing such adjustments, the Priority Pointing Procedure, is described, along with cases and software.
Finally, reasons are given for why the West might have more to learn from the East with regard to how to develop practical systems and methods for incorporating the fourth process of adjusting project decision-makers in the context of project management.

 

2002-125
TO BE REMAINED AS A HUMAN OR TO EVOLVE INTO A CYBORG? A SYSTEMS ETHICAL VIEW OF HUMAN EVOLUTION
Sangsoo Lim, Lecturer, Seoul National University, Korea sslim67@yahoo.com
Cyborg is an abbreviation of 'Cybernetic Organism'. A Cyborg could be defined as "A human who adopt technologies to enhance his original organic existence". A cyborg is a self-regulating organism that combines the natural and artificial together in one system. Marvin Minsky said that robot instead of humankind would inherit the future earth. As a matter of fact, in functional definition, man who wears glasses also be classified as a cyborg. Distinction among human, cyborg, and robot is highly complicated matter.
In the age of information society, mankind faced a new frontier of 'cyber space'. The mode of living in cyber space is somewhat different from that in real space. Everyone is getting more and more familiar with new lifestyles; cyber culture, netiquette, cyber law, cyber politics, cyber economy and the more. The distinction between cyber life and real one is getting blurred, after the evolutionary expansion of cyber life. Now people are not required to distinguish them.
The cyborg citizen who lives in cyber age is to be faced a dilemma of his basic existential status. As to the cyborg these days, Cartesian dichotomy of 'mind and body' - i.e. 'information and matter' - does not have clear meaning. In early stage, cyborg could put an emphasis on the mind so that he could adopt any technical arrangement to his own organic body without serious contemplation. He might take his organic body as a form of media conveys important information - either the information is genetic or spiritual. He focuses on the importance of the 'Ghost in the shell'. What carries importance is the mysterious ghost - emergent complexity of information, not the visible shell - mechanism of matters. However, the evolution of his body combined with technology is ended up with a tragic dilemma. The highest form of media evolution is a state of absence of media itself just as ultimate goal of body evolution is the state of bodylessness. That is to say, the ghost without any shell.
As a first generation of cyborg citizens, we are faced with the burden of choice. To be remained as a traditional organic human being, or to adopt advanced technologies to evolve into the new form of existence as a cyborg. In the highly advanced information society where the information and matter cannot be distinguished, this moment of choice might be already come to near us. It is an important bifurcation point in the track of human evolution.

 

2002-126
SYSTEMIC THINKING TO DEVELOPING A META-SYNTHETIC SYSTEM SUPPORTED COMPLEX ISSUES
Xijin Tang, Institute of Systems Science, Academy of Mathematics and Systems Sciences, Chinese Academy of Sciences Beijing 100080 PRCHINA
Email: xjtang@staff.iss.ac.cn
Jifa Gu, School of Knowledge Science, Japan Advanced Institute of Science and Technology, Tatsunokuchi, Ishikawa 923-1292 Japan
Meta-synthesis method is proposed to tackle with complex, open and giant systems by Chinese scientists Qian, X.S. and his colleagues around the start of 1990s. It emphasizes the synthesis of collected information and knowledge of various kinds of experts, and connecting quantitative methods with qualitative knowledge. Later it is evolved into Hall of Workshop for Meta-Synthetic Engineering (HWMSE), which emphasizes to make use of breaking advances in information technologies. In 1999, Natural Science Foundation of China (NSFC) approved a major project engaging to implement a pilot prototype for HWMSE for macroeconomic decision making. The project lasts 4 years (1999-2003) and gathers around 50 researchers from 16 research institutes or universities around the nation. According to a top-down framework of original design, those people participate 5 groups or subprojects of work respectively: Group 1. HWMSE platform; Group 2. Macroeconomic modeling; Group 3. Meta-synthesis method and macroeconomic method research; Group 4. Knowledge discovery and cognitive process analysis of macroeconomic decision making. There is another group in charge of whole system design and those 4 groups' work as called as Group 0.
Besides concentrating on respective research tasks, each member institution also engages in their own interested job based on their own past research achievements and understanding toward HWMSE even with an original top-down framework. Therefore, bottom-up research brought out similar methods or tools for communications, collaborations or consensus building in HWMSE. After two-year work, we have at least 4 so-called halls for meta-synthesis, all of which support brainstorming, Delphi method, and voting, while the work is main task of Group 1. Each group has developed one hall. How to integrate those research results into a whole for project sponsor is a big issue. And many debates were held among different groups and within Group 0.
Here we take a system thinking to the whole project, not only considering the integration task of current separate computer applications, but also think why those applications bubbled up as there are no extra fund for their additional work, why such a situation could not be avoided, how to tackle with those complex issues through communication-collaboration-consensus spiral process and then how to use HWMSE in practice. Even some principal investigators prefer only integrate methods instead of whole applications into the Hall 1 by Group 1, we propose our solutions as members of Group 0. The finished and normally worked halls are not a waste of this project, but enrich our understanding towards HWMSE. Then we can redesign our top-down framework based on bottom-up emerging applications. Instead a hall which integrates all methods and tools, we regard the other three halls as 3 distributed advanced seminar room for meta-synthesis, and hall at Group 1 as the master room. Those 4 rooms construct a prototype of HWMSE for macroeconomic decision making, where communication-collaboration-consensus methods, economic models and databases can be shared. As users enter the hall for one problem, they can see which room is better for its solution and enter an appropriate room for discussion, or to decompose the problem and enter different rooms for different small problems. Wu-li Shi-li Ren-li system approach is applied to resolving the integration and synthesis issues in this big project.

 

2002-127
IN SEARCH OF A TRANSCENDENTAL SYSTEMIC DESIGN, FOR INTERINSTITUTIONAL ORGANISATIONS WORKING ON COMPLEX SOCIAL AND ENVIRONMENTAL PROBLEMATIC SITUATIONS
Ignacio Peón-Escalante, Ricardo Tejeida-Padilla, Sección de Estudios de Posgrado e Investigación , Instituto Polítécnico Nacional, México
E-mails: igneo@yahoo.com, ricardotp75@hotmail.com
Human beings have the capability to realise profound process of transformation in real world systems with positive or negative consequences. Contemporary organisations, mainly those that are very complex, have the capacity to produce quicker, and deeper changes than other simpler organisations of the past, through the use of communication tools.
Transformation processes from different types of organisations have failed in the quest to solve the main social, and environmental problematic situations of today. Many different indicators tell us that the situation is getting worst at a very dangerous pace. Social, and environmental crisis have a profound effect in the quality of life of millions of people, and in the stability of all forms of life. The institutional framework doesn't have the necessary level of complexity to deal with the current situation. We need to design a new intertinstitutional framework to deal with the problematic situation with faster parallel solutions.
The purpose of this search, is a radical redesign of the institutional framework working on social, and environmental problematic situations. The name of transcendental systemic transformation process means a particular type of change in the level of complexity, consciousness, and quality of a interinstitutional organisational framework.

 

2002-128
PLANNING OF A VIRTUAL EDUCATION SYSTEM FOR A STATE OWNED HIGHER EDUCATION INSTITUTION
Ricardo Tejeida-Padilla, Isaias Badillo-Piña, Sección de Estudios de Posgrado e Investigación, Instituto Politécnico Nacional, México.
E-mails: ricardotp75@hotmail.com, ibadillo@mixmail.com
In this paper it is described the planning process of a virtual education system to be submitted for evaluation at Instituto Politécnico Nacional, a state owned higher education institution.
The paper presents that the social-ecological environment of the country has originated the emergency of a new requirements in the actual Educational System that requires new answers from the government to continue offering the public higher education demanded by society.
The actual Educational Systems should to attend key aspects such as the formation and training of the teaching body, improvement of the industry to school relationships and interinstitutional, international and interdisciplinary relationships, the integral education of geography dispersed students, as well as scarcity of resources, etc. The virtual education is presented as one of the main answers to the needs of a growing social system in demand of education.
The virtual education is visualised not only as a different modality of education to the actual system, but as an integrated system of theories, methods and modern technologies of information and communication whose purpose is to complement the performance of the teaching-learning process with excellence.
The information and communication technologies for education are integrated with the main educational theories: behaviourism and constructivism, through the principle of the systemic complementarity, to offer education anytime, anywhere.
The job concludes with a scheme proposal of a Virtual Environment System for Education in the Instituto Politécnico Nacional of Mexico whose evolution is projected in a time horizon, as well as some reflections to conclude.

2002-129
TOWARD A GUIDE TO BUILD THE CONSTRUCT OF SYSTEMS
Isaias Badillo-Piña, Ignacio Peon-Escalante, Enrique Orduñez-Zavala
Sección de Estudios de Posgrado e Investigación, Instituto Politécnico Nacional, México.
E-mails: ibadillo@mixmail.com, igneo@yahoo.com
The decisions to include or exclude certain components or concepts to construct a system, results in an other construct called boundary of the system.
Both constructs could be false or true depending on the quality of correspondence between reality and the mental processes of perception and reasoning of the observer.
In this paper we propose some guides to help how to build the system construct which make unecessary to build the construct of boundary of the system.

 

2002-130
SYSTEMIC ANALYSIS OF CAUSALITY AND IMPACTS IN MANAGERIAL PROBLEM-SOLVING
Eduardo Oliva-López, Edith R. Silva-Mendoza, Alla Kabatskaia-Ivanovna, Jorge Rojas-Ramirez, Instituto Politecnico Nacional, U.P. Adolfo Lopez Mateos, Ed. 5, 2o.piso, Lindavista D.F., Mexico 07738 eoliva@avantel.net
The objective of this paper is to describe an analytical technique that has proved to be widely useful and effective for characterizing problem situations in a large variety of cases. The experience gathered through more than 30 case studies has led the authors to devise a problem-solving model based on cause-effect analysis with commonly available information, for use by top and middle managers with analytical inclinations. Although this procedure can be used by a single analyst, its full benefits are attained only when it is applied by a team of people with supplementary views and approaches.
The literature dealing with problem characterization is relatively scarce, and this topic is usually addressed as a necessary step in a problem-solving process. However, publications dealing with problem solving methodologies, tend to focus on solution development and do not allocate to "problem characterization" the attention that this topic rightfully deserves. Such neglect cannot constitute a sound basis for effective problem solving since it taxes this process at the outset,
A series of industrial case studies carried out during the last decade with the application of widely known techniques yielded some useful results, but failed to supply information on some key aspects of the underlying causes of the problems examined. This made it evident to the authors that a more suitable tool was urgently needed for a proper characterization of managerial problems. The desirable attributes of the new analytical tool required were properly established to orientate its search and begin its development. Eventually, a web like diagram gradually emerged as the key to establish and examine the root causes of the problem, as well as its various impacts. This new tool has now been applied to a large variety of cases with satisfactory results.

 

2002-131
KNOWLEDGE, LEARNING AND SOCIETY: AN EVOLUTIONARY PERSPECTIVE ON THE ROLE OF KNOWLEDGE MANAGEMENT IN A CHANGING WORLD
Kathia Castro Laszlo, Ph.D., Syntony Quest and the Monterrey Institute of Technology (ITESM), 761 Vallejo St., Suite 302, San Francisco, CA 94123
kathia@syntonyquest.org
In today's complex and changing world, knowledge, and the processes to generate it and manage it, have become a key factor for creating competitive business advantage. However, the challenges of contemporary global societies, from human conflicts to environmental degradation, call for an expansion of the research agenda in the field of knowledge management. Issues such as the expansion of the role of corporate citizenship to promote socially and ecologically responsible operations and the development of human and social capital should become part of a purposeful strategy for creating a better future. Knowledge is power - and it is up to those with access to knowledge to decide if that power will continue to be used over others to increase the gap between rich and poor or if it will be a power to empower visions and realities based on a planetary ethic. From a systemic and evolutionary perspective, this paper explores some of the implications and key contributions that knowledge management can make for the transition toward sustainable forms of social organization. The notion of evolutionary learning community is presented as a participatory strategy for promoting learning and knowledge creation for sustainable development.

 

2002-132
THE CHALLENGE OF TECHNOLOGICAL CHANGE FOR THE DESIGN OF EVOLUTIONARY LEARNING COMMUNITY (ELC)
Alexander Laszlo, Ph.D., EGADE at the Monterrey Institute of Technology (ITESM), Fundadores Ave. S/N, Rufino Tamayo St., Col. Valle Oriente, Garza Garcia, N.L. 66269 MEXICO
alaszlo@egade.sistema.itesm.mx
There is a marked trend in the dynamics of socio-cultural change over time; a trend clearly linked to the dynamic of technological advancement. The complexity and change processes that characterize global civilization at the beginning of the 21st century point toward ecological catastrophe and social disintegration. It is now more important than ever to consider the potential as well as the limitations of technological solutions to the challenges posed by systemic complexification and change. "Technological fixes" represent nonviable strategies for the sustainable development of evolutionary leaning community (ELC). Alternative technological strategies need be considered, especially those involving technologies of human interaction, such as Social Systems Design (SSD) and, more recently, Evolutionary Systems Design (ESD). There is a need for balancing those aspects of community development that promote an already hypertrophied technological intelligence with a concomitant level of currently atrophied aspects of socio-cultural intelligence.
This paper explores the potential of soft technologies to augment the efficacy of human interaction and serve as compasses for socio-cultural evolution. Syntony, in evolutionary systems thinking, is conscious intention aligned with evolutionary purpose. It provides a guide for creating and sustaining evolutionary consonance in the dynamics of socio-cultural development, and as such, can serve as the ontological underpinning for a soft technology of sustainability. The role syntony plays in societal development is akin to that of an evolutionary guidance system for effective engagement in purposeful evolutionary action. If correctly tapped into, it could serve as a much needed booster of socio-cultural intelligence.
A methodology for tapping into the creative potential of syntony is presented and explained. It is based on a set of principles of sustainability for future creation. ESD incorporates an evolutionary ethic that serves as a scaffolding for the learning and design of ELC. As such, ESD is a soft technology for hard challenges: it provides a means to engage in the conscious creation of "systems of syntony" - not through the hard technologies that shape and mold the physical infrastructure of our planet, but through soft technologies that augment creative and constructive processes of human interaction. In doing so it provides a means to confront the challenge of complexity and change by facilitating the design of socio-technical systems in partnership with earth.

 

2002-133
STUDY ON TRANSITION BETWEEN TECHNICAL KNOWLEDGE AND PRODUCT KNOWLEDGE BY AGENT-BASED SIMULATION
Tieju Ma and Yoshiteru Nakamori
School of Knowledge Science, Japan Advanced Institute of Science and Technology, Asahidai, Tatsunokuchi, Ishikawa 923-1292, Japan
Technical knowledge means the knowledge of technician. When designing new products, a technician will consider several attributes. Product knowledge is for customers, it means customers' feeling about the products, and this feeling can be denoted by several measures. Managers get customers' knowledge and transit it to technicians, then technicians design new generation products. It is managers' task again to translate the attributes to the measures which will be evaluated by customers. We research the transition between these two kinds of knowledge and watch how they influence the next generation products by agent-based simulation. A fuzzy linear quantification model developed by Nakamori and Mina Ryoke will be used to simulate the transition between these two kinds of knowledge. This fuzzy model deals with qualitative data obtained when a number of people evaluate the same objects with categorical attributes, and the main technique is a mapping of the data of individual evaluations into the model parameter space, preserving the relations between opinions of evaluators as much as possible.

 


2002-137
A SYSTEMIC APPROACH TO THE CAUSES OF THE RELATION-IMPROVEMENT BETWEEN SOUTH-NORTH KOREA
Youn-Soo Sim, Faculty of Political Sciences and Economics, Honam University, 59-1, Seobong-dong, Kwangsan-gu, Kwangju, 506-090, Korea E-mail: shim4822@unitel.co.kr
One Korea in origin divided into the two parts by many reasons since 1945. Until the July 4 South-North Joint Communique in 1972, the two Koreas did not dialogued on the level of the political authority. This Communique was the first turning point as the first publication of relation-improvement between the two Koreas. But the relation-improvement between South-North Korea externally stopped by their different views about three basic principles. After the first turning point, the two Koreas published AGREEMENT ON ECONCILIATION, NONAGGRESSION, AND EXCHANGES AND COOPERATION BETWEEN SOUTH AND NORTH KOREA (Entry into force on February 19, 1992) as the second turning point of the relation-improvement between the two Koreas in 1991. This publication also has a great meaning in reaffirming the three basic principles of unification set forth in the South-North Joint Communique of July 4, 1972, trying to end the state of political and military confrontation and achieve national reconciliation, and to avoid armed aggression and hostilities, and to ensure the lessening of tension and the establishment of peace, expressing the desire to realize multi-faceted exchanges and cooperation to promote interests and prosperity common to the Korean people. There are many causes in the relation-improvement between South-North Korea. The environmental cause may be more important cause than their own will in relation-improvement between two Koreas. Many causes in two Koreas' relation-improvement could be well explained by concepts like 'coevolution', 'adaptive change', used in the complex systems theory.
South and North Korea in an analytical sense compose a set of 'loosely coupled systems', and is a subsystem under the higher 'international system(northeast-)'. Even small changes in the international system have had enormous impact upon the South-North relationship. The systemic change in the international system developed into a fluctuation to be followed by adaptive change (cooperative or noncooperative) that took form of either regime change in South-North Korea or the full-blown integration of South and North Korea. Accordingly, the necessity of regime in South-North Korea and the change of international system created the relation-improvement between two Koreas.
2002-139
HRM ISSUES AND ORGANIZATION DEVELOPMENT IN A MERGED CHINESE HOSPITAL: A VIABLE SYSTEMS APPROACH TO CHANGE MANAGEMENT IN THE NEW ECONOMY
Paul Iles, University of Teesside, Ms Jing Li, Liverpool John Moores University
Mergers and acquisitions raise a number of HR issues, including a sense of loss and stress paralleling other processes of loss and bereavement in a cycle of shock, denial, grief, acceptance and commitment. Individuals may experience loss of job security, status, certainty and valued relationships as well as insecurity about career prospects, promotion and pension rights. Tensions and conflicts may arise between groups from the different merging parties, and employees may feel that management policies, practices and controls may have been imposed without involvement. A variety of organization development (OD) and HRD strategies have been proposed to address these issues, including training, counselling and coaching, group and inter-group team building, and OD interventions targeted at the focal organization as a whole or at the system in which the focal organization is embedded (including other stakeholders such as suppliers and customers). However, most research has been carried out in the West, and it is unclear whether similar issues will be raised in developing countries, particularly China, as OD has been criticised as culture-bound, reliant on individualistic, humanistic Western values and situations of low power distance and uncertainty avoidance, not necessarily applicable to China.
OD interventions employing experiential, individualised and confrontational techniques (e.g. T groups) however appear to be less successful than more systems-oriented methodologies like Future Search. A critical review of Chinese business culture and management styles shows that Chinese family businesses appear to employ models of business organization different from not only Western models, but also from other Asian models. Such features as dependence on owner-managers, flexibility, emphasis on teamwork and networks and relationships, as well as aspects of systems thinking in traditional Chinese philosophy, seem to support more systems-oriented OD approaches. Such an approach is applied to a preliminary case study of a small business merger between two hospitals (a former SOE and an IOE) in Beijing, China.
This study presents a preliminary analysis of a case study of the WJ Hospital group, formed in China by the 1997 merger between Shandong Wanjie Group and the hospital of the 16th Bureau of the Railway Ministry. It uses document analysis, participant observation and a survey questionnaire sent to employees of WJ hospital to assess aspects of the 'merger climate' such as felt stress and insecurity, conflict and communication, co-operation and trust, and knowledge sharing.
An adapted OD cycle of inquiry (based on viable systems theory and involving a series of steps and recursions) is employed, involving pre-evaluation of the context and the background to the merger; exploration of the situation and purposes of the enquiry; defining the relevant system through analysing the data from the questionnaire and other data; assessing the inner and outer organizational contexts; and ensuring stakeholder participation and the participation of the relevant system through the adoption of large scale events based on whole system change principles.

 

2002-140
THE COMPLEXITY AND MANAGEMENT OF ORGANIZATION
Chen Lai-cheng, Sun Yat-sen University
The organization is one of social phenomena, and it has complexity. The problems of organizational managements are very complex. The external and internal scholars have explored the application of complexity science to managing organizations and obtained some valuable achievements. We think, the mode of contemporary organizational managements must be based upon science of complexity and systems science, and the thinking method of combining simple thinking with complex thinking, combining reducing thinking with systematic thinking and combining thinking of images with logical thinking, must be used to unite the determinacy and un-determinacy of organization, combine hardware management with software management, combine learning management with intellectualization management and combine maintenance management with innovation management.


2002-141
MEASURING AND SEARCHING FOR YOUR CHEESE: MANAGEMENT APPLICATIONS OF THE PRINCIPLE OF DUAL-PHASE EVOLUTION
Jason Jixuan Hu, Ph.D., President, WINTECHI Management Consulting, China: The American International Centre, Suite 550, 1376 W. Nanjing Road, Shanghai, 200040, USA: 114 Monroe Street,, Suite 101, Rockville, MD 20850, USA jhu@wintechi.com
Thirteen years ago at the 33rd Annual Conference of ISSS, the author presented a hypothetical Dual?phase Mechanism as a tool to understand the evolution process of self?organizing systems. The concept since then has evolved into the Principle of Dual-Phase Evolution and was taught to students in courses of cybernetics and system thinking in multiple universities. In response to the recent management best seller "Who Moved my Cheese" by Spencer Johnson, this paper shows how to apply the Principle of Dual-Phase Evolution to the case presented by Johnson, making efforts to construct a useful decision tool for executives of companies/non-profit organizations, to measure the "freshness" and the "stay-ability" of the "Cheese" they currently have in their organizations, and to identify the best timing to renew/re-engineer the mission/vision of their organizations, or in Johnson's term, to lead their organization to start a new journey to search for new Cheese.
The author also invite colleagues to explore a few key issues about self-organizing and evolutionary systems: necessary number of recursions before a self-organizing system approach to its eigen-state; stability of an eigen-state against changes in environmental/ structural variables; and the forecast-ability of the possible new boundaries that an evolutionary system might jump to when the breaking of the old boundary happens. These issues are discussed with a group of relevant examples in areas of personal growth, organizational change, business re-engineering and reform of social/economic/political institutions.

2002-142
FORECAST!"ORGANIZE AND CONTROL OF COMPLEX SYSTEMS
Zhang Benxiang, Heilongjiang Province Academy of Social Sciences, Harbin, 150018, China
On the definition of complexity and complex systems, the author realize that the law of complex systems!/ kinematic and dynamic behaviour is the fundamental problem of complexity study, in the concrete, for three kinds mainly subjects it is the problem of forecast !"organize and control of complex systems.

 

2002-145
A STUDY ON SELF-ORGANIZATION OF SOCIAL ORDER IN DIGITAL CAPITALISM
Jeong, Soon Mi, Dept of Ethics Studies, Sungshin Women's Univ., Samsun-dong, Songbuk-gu, Seoul. 136-041 KOREA
E-mail jjssmm7@chollian.net
The purposes of this thesis is for grasping the characteristics of the Digital Capitalism and the disorganization phenomenon of the social norm by the introduction of the Digital Capitalism, and for providing the possibility and limitation of the reconstruction of the new social norm on the Digital Capitalism. The procedure for achieving the purpose of this study is the procedure of finding out the answers for four questions below. (1) What is the characteristics of the Digital Capitalism? (2) What kind of phase does appear on the social norm disorganization confronting by the Digital Capitalism? (3) What is the limitation and content of the new appeared social order on the Digital Capitalism? (4) What is the role of the network and social capital for reconstructing a social order suiting for the Digital Capitalism?
As you find out the answers for these questions, we may get out of the chaos, fear, and worry from the change of the social system, disorganization of family, and the collapse of the sense of value and morality we are suffering by the introduction of the Digital Capitalism. Also, like the industrial capitalism has made the proper norms for the industrialization after occurring the great confusion of the sense of values at the beginning, the digital capitalism will create a new social order which is proper for the information society little by little.

 

2002-146
THE MODEL AND OPTIMIZATION OF FINANCIAL NETWORKS
Zhuang Xintian* Huang Xiaoyuan Nie Hongmei, School of Business Administration, Northeastern University, Shenyang 110004, China
Financial networks is the circular flow of funds in an economy. Nagnrney and Dong (2001) have researched the model of financial networks. In this paper, we propose an improved model about assets, liabilities, appropriate sizes and prices ,based on the financial networks models proposed by Nagnrney and Dong. This new improved model considers for all sectors the risks of instruments, the restraints for economic resource in financial networks, the restraints for the accountings of assets and liabilities. The improved model is more appropriate for application. We use the evolution programming algorithm to make simulations.

 

2002-147
SYSTEMATICALLY ANALYSE ON PERFORMANCE OF ENTERPRISE GREEN MARKETING
Si linsheng
The system of enterprise green marketing is multi-purpose. And green marketing performance should be a concept that integrates economy, sociality and technology. By systematically analyzing, we think that green marketing performance should be concluded sociality effect, economy effect, environment effect and enterprise developing effect.

 

2002-148
SYSTEMS THINKING APPLIED FOR TECHNOLOGY MANAGEMENT
Guillermo Granados, MSc, MBA, Director, Centre for Quality and Competitivity Development, Monterrey Institute of Technology, Campus Ciudad de México
National Quality Awards represent a common method for understanding and grouping quality activities. They have common characteristics, such as criteria and a systemic approach for activities grouped in practices. Mexico has developed its National Technology Award, an instrument designed to foster technology management activities, since there not many awards of this type on the world, its model could be developed with a systemic approach based on TQM awards.
National Quality Awards do not appear to share cognitive systems, since their explanations have considerable differences, most of them explain their model's origin from a functional perspective, instead of a systemic approach. A systemic approach should be more adequate, since it is supposed to be fundamental for quality systems.
A systemic approach for developing national models is presented, based on a systemic approach. This leads to reduce imperfections on the application for those models. The methodology presented has been used for the development of Mexico´s National Technology Award, 2003, also has been used for the development for a Totall Quality Model for the National Science and Technology Council in Mexico.

 

2002-149
CARTOGRAPHY OF THE VIRTUAL BUSINESS
Prof. dr hab. Kazimierz Perechuda
Wroclaw University of Economics, Institute of Organisation and Management , Department of Strategy Methods, Poland, 53 - 345 Wroclaw
Komandorska str. 118/120
Virtual organising resolves itself into the initiating and generating of causing impulses preventing the creation of temporary relation concentrations in the network. Their long term monitoring and navigating are bound to fail existing.
In the virtual organisation all hitherto implements, methods and techniques of organising governing and managing prove ineffective. That results form the fact of the subject anonymity of networks, which once created are submitted to processes of dynamic and permanent reconfiguration causing fast dying away of the subject system
The basic promise of the entry into the network is the possibility to create the coalition of resources consisting of the basic distinctive competences of the network participants.

 

2002-150
SYSTEMS THINKING IN THE REVIEW OF RESEARCH WITH HUMAN PARTICIPANTS: REFLECTIONS ON MANAGING COMPLEXITY AND CHANGE
Arne Collen, Saybrook Graduate School and Research Center, 450 Pacific, San Francisco, California 94133 USA
Email: acollen@saybrook.edu
Research using human beings for research purposes usually requires an Institutional Review Board (IRB) to scrutinize the proposed projects in regard to their potential for aversive impact on the human participants. The IRB functions as a form of human systems inquiry. It represents one kind of evaluation system, in that it puts into action a conceptual system of research ethics to judge whether the benefits of proposed research procedures outweigh their risks to humans. The ethical issues that arise in IRB review often pose major challenges and dilemmas for researchers, who may have to compromise their original research design and plan involving the application of specific research procedures to human beings. Discussing the changes in attitudes, opinions, and practices of researchers, the IRB, and host institution in the three year course of developing the IRB at the author‚s institution provides the focus of this paper. To be discussed are several complexities of managing this development in the face of numerous ethical issues and dilemmas of doing human oriented scientific research. Exercising systemic thinking has helped to reveal the complexities and to manage the IRB as a complex and ever-changing human activity system.

 

2002-151
THE CHALLENGE OF POSTMODERN PHILOSOPHY AND THE RESPONSE OF SYSTEM PHILOSOPHY
Shen, Litian; Wei, Yunfang; Chen, Hong; Ge, Xiaofan, Nanjing University
Postmodern philosophy is originated in the puzzling gap of concept from industry times to information times. The challenge of this philosophy is the scientific way of thinking which has been lasted for several hundred years as the basis for science and technology since Mechanism. This paper advocates an idea on the philosophy of system science, inheriting the spirit of scientific rationality stemmed from the traditional way of scientific thinking; accepting the interaction and the interchangeability between complexity and simplicity; responding to the challenge of postmodern philosophy by synthesizing both the tradition and the future.
In the past few years, the author has done some innovative work which is relevant to the above mentioned topic, including "Theory of the evolution of information" and "Theory of big cycle on cosmos", "the concept of life of information" and "the future mankind in superman times", "the theory of synergetic" and "society control".

 

2002-152
THE "FOUR-DIMENSION STRUCTURE" AND "FOUR-FACTOR SYNTHETIC ANALYSIS" OF SYSTEMS ENGINEERING OF SCIENCE RESEARCH
Liu Jinyang, Liu Bo and Liu Dequan
1. Philosophy Department of Renmin University of China, Beijing, 100872, China
2.Social Science Department of Chengdu University of Technology, Chengdu, 610059, China
3.Xinjiang Bureau of Geology and Mineral Resources, Urimqi, 830000, China
The optimized combination of technology is very important for the practice of Systems Engineering of Science Research. The article tries to develop the "Hall Three Dimensions Structure", a general approach of Systems Engineering, into the "Four-Dimension Structure" by creating the fourth dimension-Technology Dimension. The article also analyzes the limitation of Qualitative-Quantitative analysis when we use it to solve complex problems closely related with space-time, and suggests developing it into the "Four-Factor Synthetic Analysis".

 

2002-153
RISKS IN THE FORMULATION OF POLICIES
Wang Huijue Xie Kefan Chen Yun, Business School of Wuhan University of Technology, Wuhan, P. R. CHINA
Policy risks in general include both the risks in formulation and those in implementation. This paper focuses on an analysis of the former. First, this paper analyses the major environmental sources of risks in policymaking, including physical environment, social environment, political environment, and cognitive environment. Second, this paper investigates two major types of risk in policymaking, information risk and pure risk. Information risk derives from the phases of information collection in policymaking, which results from both subjective and objective factors. Pure risk is caused by defects of the policy body, such as the lack of timeliness and the lack of systematicness. The lack of systematicness includes the inconsistency between related policies, the lack of balance between stability and development, and that of adequate openness in a policy system. Finally, this paper recommends an approach to averting risks by employing the probability theory.

 

2002-154
THE CONCEPT OF MULTI-MANAGEMENT FOR MODERN CITY ADMINISTRATION
Qiu ShuHong, Xiangzhou Government of Zhuhai (city) The People's Republic of China
It as become a tendency that the city administration is more and more likely to be a major function of the city proper gevernment. This article, based on the theory and practice of the Government of Xiangzhou District, Zhuhai, is to take city administration as a systematic integrity, a complete and organically related set, which consists of various elements, different ranges and layers. Thus, the concept of Multi City Administration (MCA) has come into being. It lays stresss on the analysis of these elements and their relations to each other, which all together form the MCA, and especially on exploring those key elememnts and layers that are of great imortance to MCA. Therefore, the author has put forward ways and policies for the improvement of the entire systematic functioning.

 

2002-155
HIGHER EDUCATION STUDY ABOUT COORDINATING SCALE, STRUCTURE, QUALITY AND RESULT
Hu shuihua Professor, Wuhan University of Technology
E-mail: hshhua@whut.edu.cn
In the article, according to developing law of higher education and real situation of higher education of China ,scale, structure, quality and result of institutions of higher learning are analysed. Coordinating scale, structure, quality and result of institutions of higher learning is studied. result of study shows, pursuing coordination of scale, structure, quality and result is developing tendency of higher education of China from talented education to popular education. Developing scale profits optimization of structure and enhancement of result . But developing scale restricts enhancement of educational quality. optimizing structure not only promotes developing of scale but also enhances educational quality and result. Enhancing quality and result is both opposed and united. We must strive to enhance result on condition that educational quality is enhanced.

 

2002-156
ORGANIZATION DEVELOPMENT IN CHINESE STATE-OWNED COMMERCIAL BANKS: A DEVELOPING ORGANIZATIONAL DEVELOPMENT PERSPECTIVE
Maurice Yolles, Kaijun Guo, PhD Student,
Liverpool Business School, Liverpool John Moores University, Liverpool, UK
There are major resource-based problems facing China's state-owned commercial banks as the country joints the World Trade Organisation. There is a need for organisational development and change in these banks. This need will be explored broadly in terms of a new cybernetic form of Organisational Development (OD) that involves "organisational patterning". The implications of applying such an OD approach to China's banks are discussed.

 

2002-157
SYSTEM DEBATE ABOUT THE OBJECTIVE OF MODERN ENTERPRISE FINANCIAL MANAGEMENT ENGINEERING
CHEN Yun1,2, XIE ke-fan2, ZHAO hua1
1.Changsha Communication University, Changsha 410076, China;
2.Wuhan University Of Technology, Wuhan 430070, China
The object of modern enterprise financial management engineering is not only a complex microcosmic economic system, but also one of the essential factors in the principle construction of modern management system. It has its own intrinsic evolution and deduction laws ,bearing strong guiding and directing natures to the practice of modern enterprise in financial management ,Besides it has important practical significance to the key position of strengthening financial management in business management .This article starts with the system debate of object model in modern enterprise financial management engineering, analysing its evolution process ,deducting the objective characteristic of modern enterprise financial management engineering, putting forward the new financial management objective model about the maximum of enterprise MVAR ,and carrying on the detailed discussion according to its intention ,characteristic and law natural contents.

 

2002-158
STOCK MACROSCOPIC BEHAVIOR BASED ON SANDPILE MODEL
Sun Bowen, Sun Ming Song, Haerbin University of Science and Technology, Haerbin, China
Because of fractal characteristic of stock, it is a reasonable choice to use sandpile model to consider self-organized criticality for stock. The macroscopic behavior resulted in self-organization from stock is the most essential behavior without impulsion outside. This research is help to hold internal mechanism of stock fluctuate, in order to meet the stock variational regulation of stock better. On the base of this, to consider the effect of impulsion outside to stock is help to understand and hold actual stock.

 

2002-159
STUDIES ON THE COMPLEX MANAGEMENT MODEL
Guolin Wu, Humanities & Social Sciences College, South China University of Technology, Guangzhou 510640, China
The premises of the complex management model are that man is an adaptive subject and influenced by occasional factors. The changes of the premises of management models need new management models. Adaptation, learning and forecast are the cores of complex management models. Complex managements include 5 rules: adaptive agent, aggregation, tagging, building blocks and complex system thinking. Complex management models do not abide by only a management model, but the integrations of efficient management models, which is the union of determinism and randomicity, of stabilization and evolvement. China Haier's OEC management model is taken as a complex management example.

 

2002-160
ON THE COMPLEXITY OF THE SOCIAL SYSTEM EVOLUTION
Zhang-Qiang, College of Humanistics, Xi'an Institute of Scientific and Technological Engineering, 710048 Xi'an,Shaanxi, China
Social system, as a kind of special system that consists as both physical and spiritical movements, possesses for more complicated and various facts of inevitability and contingency. These factors interact under certain condition, make up the complexity of the social system evolution, and play an important role in social evolution. This paper will also relate the research stated above to social practice problems, so as to get some enlightenments from this relation.

 

2002-162
ON THE RISING OF KNOWLEDGE MANAGEMENT AND ITS SIGNIFICANCE
Lin Jian, Renmin University of China Press, Beijing, 100080, China
Knowledge Management is a form of management whose aim is to enhance innovation by developing and utilizing knowledge resource. It includes knowledge and human resource management. Knowledge Management rose from the change of resource environment, technological environment and market environment, and it has become the main topic of modern management. Knowledge Management has great significance for its challenge to the traditional management models in the era of knowledge economy.

 

2002-163
FUZZY EVALUATION SYSTEM FOR AREAS OF FOREIGN DIRECT INVESTMENT
Lv Jun and Zou Xiehua, School of Management, China University of Geosciences, Wuhan 430074
As the arrival of the globalized economic time, the Foreign Direct Investment (FDI) has become the engine of promoting the development of economy in all the countries. However, the development of FDI in China is not so smooth as we expected, which is resulted from many problems. That companies did not choose the correct FDI areas is one of the most serious problems.
Depend on the research to the tend of the development of FDI and foreign experience of it, using the method of AHP, and fully considering the science overall of the appraise target, then analyzes and generalize all the factors which effect the Area-choosing of FDI, the authors believe that grade factors are made up of gain profits factor, safety factor, area factor and compete factor. To the second grade targets we should apply Deilph method and experts remarking method to assure. Thus we have constructed the index system to evaluate the areas of Foreign Direct Investment.
Based on the index system, the paper gives the algorithm of the Fuzzy Evaluation System for Areas of Foreign Direct Investment. And combining the case grasped by deep investigation, this paper will take certain a business group!/s policy for evaluating FDI areas for example, and explain it.

 

2002-164
THE COMPLEXITY AND SUSTAINABLE DEVELOPMENT OF ECO-SYSTEMS IN XINJIANG ERQIS REGION
Liu Ping1 Xu Guozhen2
1 Xinjiang Agricultural University
2 Forestry College of Central South
The complex science is the new developing stage of systems science and the developing direction of systems engineering. This article studies the system composition, structure, function and complexity in Xinjiang Erqis river region, using the basic theories and methods of the complex science. It is the preliminary study of agricultural sustainable development and Management model in whole area.

2002-165
ANALYSIS OF THE COMPLEXITY OF ENTERPRISE'S SURVIVORSHIP RISK
Xie Kefan Peng Huatao Ma Chang, Management School of Wuhan University of Technology
In this paper, we study on the enterprise's survivorship risk by applying complex system theory. The main points are as following: 1) propose the proposition that enterprise's risk originates from the uncertainty of the survivorship space, the complexity of the activities that the enterprises engage in, and the limitation of the enterprise's capability; 2) analyze the enterprise's naissance and senescence process and it's dynamics mechanism, by taking an enterprise as an ecosystem and from the point of view of ecosystem complexity; 3) discuss the enterprise's prepotency model, heredity model, health care model, immunity model, and aging model(wholly we called PHHIA model); 4) probe to the early-warning and pre-control management approaches of enterprise's survivorship risk under the circumstance of complex system.
Supported by NSFC (No.79870037)

2002-167
THE HOLO-REGULATION, SELF-ORGANIZATION AND STRUCTURE-TRANSFORMATION OF THE TECHNO-NATURAL ECOSYSTEM ON MAN'S LABOR-TECHNO PRACTICE AND ITS LIMITATION OF CONTROLLING OVER NATURE
Wang Gui-you, School of Humanities, Wuhan University
As a global holistic ecosystem, Techno-nature ecosystem is a self-regulating and self-organizing system that integrates certain labor-technical types and human's living and producing behavior into itself. It has the finality of self-organization, the natural working pattern and the diversified structure. Its holo-regulation and self-organization are in the position of wholeness, fundamentality and dominance in coordinating development with nature and man. Man's labor and technical Practice as well as his control over nature possess some characteristics of localization, indirectness, simplicity and conditionality. To control nature by man is the unity of development and coordination, the unity of freedom and necissity. Moreover, to control nature is mainly to control man's behavior. The control of local ecosystem must guarantee the whole optimum of the global ecosystem.

2002-168
ESTABLISH THE SYSTEM OF COMPARATIVE FINANCIAL AND ACCOUNTING SUBJECT UNDER THE GUIDANCE OF SYSTEMATIC SCIENCE: EXPERIENCE OF DEVELOPING FEATURES OF SUBJECT IN COMMON COLLEGES
Sun fangcheng, He jianguo, Li xiaolin, kong qinglin and Yi jianming
The research group of Accounting Department, Chongqing Institute of Technology
Introduce the nature of system and distinctiveness of comparative financial and accounting subject.
Establish the results and functions of the system of comparative financial and accounting subject.
With a systematic analysis of the accounting subject, we will further discuss the experience of developing features of subject in common colleges.
Establish the system of comparative financial and accounting subject.
Functions of establish the system of comparative financial and accounting subject.
Initial experience of developing subject features.
A. colleges are determined with the levels and features of subjects.
B. systematic analyzes developing characteristic subjects.
C. excellent teachers are trained with the levels and features of subjects.
D. develops characteristic subjects.

 

2002-169
STUDIES ON THE COMPLEXITY OF THE SUSTAINABLE ECONOMIC SYSTEM
Ding Kun and Liu Yong-zhen, Research Center of 21st Development, Dalian University of Technology
This paper is concerned with system complexity of sustainable economic development. As a working hypothesis we interpret sustainable developmental economy as an ideal economic state, and it accords with the viewpoint of sustainable development. After definition of the some essential concepts, we discuss the elements and objects of sustainable economic system and apply the complexity theories and approaches to reveal the complex characteristics of the sustainable economic system. Based on the theoretical research and practical activities, we explore the significances of studying economic complexity to help people to recognize the essence of economic procedure and reasonably deal with economic activities.

 

2002-170
TEACHING CRITICAL SYSTEMIC THINKING AND PRACTICE BY MEANS OF CONCEPTUAL TOOLS
Dr Janet McIntyre, Flinders Institute of Public Policy and Management, Janet.McIntyre @flinders.edu.au
The tool kit is a means to share critical thinking and practice tools for problem solving, governance and promoting peace. Drawing on a wide range of systemic thinkers, conceptual diagrams introduce students to tools for problem solving that is socially and environmentally just. The tools are provided as a basis for addressing challenging and complex problems through social planning and decision making. Specific problems are introduced and workshopped with professionals and graduate students in the area of public policy and management. The tools (when appropriately used) are suitable for community members, furthermore, the web-like approach resonates with Indigenous thinking patterns (McIntyre 2002). The kit is currently being adapted for Indigenous users in communities of practice (for problem solving) associated with a digital, intergenerational learning project and a housing association that address complex issues of conflict resolution on a daily basis
Ontological and epistemological challenges to thinking, research and practice are introduced by means of the conceptual diagrams and by means of workshopping case studies and examples. It is assumed that policy and practice need to be based on decisions that have resonance or radiance (Churchman 1982) that is achieved through participatory design and the ethical use of tools for thinking and caring (McIntyre 1996). The kit aims to achieve the following learning outcomes:
Hone critical and analytical skills in conceptualizing participatory policy responses to complex challenges (Jackson 1991, Flood and Romm 1996, Banathy 1996, Flood and Carson 1998).
Understand the pitfalls associated with definitions of problems and issues (McIntyre-Mills 2000).
Understand the value of considering the narratives of all participants in developing solutions, but because this is the only way to approach or approximate the ethical monad (as per Churchman 1979,1982).
Be mindful of technical knowledge, strategic knowledge and communicative knowledge (as per Habermas 1984) and spiritual knowledge and those schemata of knowledge can in fact be arranged as a mandala (as parts of a whole, rather than in compartments or hierarchies). The most basic form of energy is information (Simms 2000). Energy comprises both either or thinking (compartmentalised bits) and 'both and thinking' derived from waves or logons (Bradley 2001). Information thus can be understood as waves that can be seen as pulses creating weblike, complex and multisemic patterns of meaning that are represented in static compartments for heuristic and value laden reasons.
Be able to apply research methods in a complementary (Jackson 1991) and accountable way (Romm 2002), based on an understanding that number and meaning are linked (Dey 1994).
Be mindful that all our senses need to be employed when undertaking research and that we are part of our subject matter.
Understand that multisemic meaning systems reflect the objective, the subjective and the intersubjective (Zhu 2001) in each context from the point of view of many stakeholders.
Develop responses that are mindful of interrelated issues across sectors and disciplines and that create transcultural webs of meaning (McIntyre-Mills 2000) for a shared future.

 

2002-172
ON THE AGE AND CULTURAL NATURES OF PANSYSTEMATOLOGY
Yang biyi 1, Yangshuo 2
(the associate professor 1, assistant professor 2, the Educational College of Chongqing, Chonging, China 400067)
The deep research to the complicacy of the Systematology caused the appearance of a series of theories of modern science such as cybernetics. Pansystematology, as a new branch of the Systematology, is the specific description to the extended systematology. Undergoing the half century's collecting, summing and developing work, it has already become a kind of newly international influential academic theory. As the product of the great science age, Pansystematology, a across-region research, exhibits the characteristics of the methodology of the five relations, the seven points and the eight apperceptions. And because it melts the eastern culture together with the western culture, Pansystematology is also connected with the four thoughts, which make it not an ordinary but a special Systematology. Both Pansystematology and Systematology outgrow from natural science realm, and are being deepened and extended under the background of the different studies coming into blending with each other. Systematology, which deeply exposes the complex relationship of the different aspects of objects, has become the most leading theory in the development of the modern science. However, Pansystematology is an advanced explanation to the compounding and expanding nature of all the aspects of systematology. Although it needs more probing and research, Pansystematology theory still can be called an innovating, multi-layer, netlike across-study research of Systematology, whose significance does not exist in its contribution to today's social life but in correspondence of people's thinking ways after the world being networklized. To us surprise, this advanced thought in fact comes from Chinese ancient traditional culture. As an ongoing experiment of the systemic philosophy research, and also an innovation applied in the exploration of all studies and philosophy theories that can expand the Pansystem's five relations idea of Great Systematology, Pansystematology theory will play a very important role in the future's scientific development.

 

2002-173
ECONOMIC INTEGRATION IN ECONOMIC GLOBALIZATION FROM THE PERSPECTIVE OF SYSTEMIC STABILITY
Kang Sheng, Hangzhou Teachers College
According to the systemic theory, in order to sustain the survival and developmental action and motivation for a system of complexity, or to keep the systems characteristic continuance and orderly evolution, we need an essential condition, i.e., the system should have some bound in its openness, and there should be some balance and tension kept between the systems certain stability and counterpart. In a system of complexity, too much flexibility and looseness in the configuration and institution will easily lead to a loss of the system's self-stabilization, and thereafter, a loss of ground for its existence and development; besides, if the configuration and devices are too rigid, the system will lose its self-creation and the systemic evolution and development will also be deprived of activity and motivation. The clarifying momentum in economic globalization and regional or global economic integration just gives a thorough reflection of this theory of system. They are not apparently simple economic phenomena but essentially exercises of the nature of the system of complexity. First, economic globalization, in its nature, is an evolution of complexity in economic system. While cell systems of different levels grow freer and open wider inside the huge system, and while the modern communications and information industry develop further, the tension and speed largely increase in the counter action and reaction of the cell systems and economic variables. As a result of economic globalization, the world economic system becomes more and more uncertain and potentially unstable. Second, economic integration is a deeper evolution of the structure of organizations in the world economic system. The economic integration is, by its nature, to enable the complicated world an economic system to form a better-organized structure by itself so as to meet the needs of economic globalization. In this way, the internal activity and motivation are guaranteed within a self-creative system, and the favorable condition is sustained for a self- stabilizing system as well, In a word, all these phenomena are the necessary results of the world economic system's self organization and evolution, and the objective requirements for stable and orderly development of the world economic system, too. Therefore, a study of the economic integration in economic globalization from the perspective of systemic stability enables us to perceive its nature and to hold the rules in its process and evolution, and meanwhile it provides scientific evidence for us to get smoothly into the economic globalization while taking part in the process of economic integration.

 

2002-174
ANALYSIS OF OPPORTUNITY WINDOW ENTERPRISE'S ATTRACTION TO TALENTS
WU Tao, LI Bi-qiang, Mi Jin, School of Management, Wuhan University of Technology, Wuhan 430070, China
Products in different stage of life cycle have different profitabilities. Products' growing period gained by enterprises through searching and creating market opportunity is like an opportunity window in which enterprises can provide scarce products to gain extra-profit. This directly reflects enterprises' fast growth. The paper defines opportunity window enterprise as enterprise who creates and uses product opportunity window.
Four factors--market opportunity, talents, core technology and skill, product take turn to decide an enterprise's growth, creating a dissipative structure system for opportunity window enterprises. By using market opportunities, opportunity window enterprise can facilitate its growth and attract many talents to join it. Talents then facilitate developing and using of new technologies in the enterprise. New technologies then lead to new products that can meet the requirements of market. New products then create new market demand and a new market opportunity. Moving in this circle, opportunity window enterprise continuously exchanges substance and energy with market and puts up a complicated character of hypercycle.
The extra-profit of opportunity window enterprise comes in two ways. First one is from outside-seller's market of product's growth period. The other one is from inside--extra-value labor in the enterprise, which is created by high harmony existing among different positions. Above mentioned analysis reflects that opportunity window enterprise has an internal character-creativeness. Based on analyses of need hierarchy theory and related theories, the paper concludes that 1. Social flow of human resources is from opportunity window enterprises to general enterprises; 2. Human resources flow in enterprise is from opportunity-creating department to mature product department.

 

2002-175
DYNAMIC MECHANISM DESIGN FOR SUPPLY CHAIN SYSTEM BASED ON VALUE FLOW OPTIMIZATION
WU Tao1, LI Bi-qiang1, GAO Jie2, School of Management, Wuhan University of Technology, Wuhan 430070, China
Application of Supply Chain Management (SCM) has gained huge achievement although its attraction to people's attention and focuses can only be traced back to less than thirty years ago. Successful applications of world SCM strategy in IBM, DELL and other top companies are inspiring its applying research. However, research in theory of SCM lags behind. Starting from optimization of product value chain, the paper focuses on dynamic mechanism design of SCM by using Synergetic Theory and Game Theory.
The optimization of value chain's total utility depends on dynamic optimization process of value flow, including proper subdivision of product value chain action, analysis of correlation of different value actions after subdivision, analysis of utility and correlation of different interest subject in value chain brought about by various value action, game analysis of search and compare of different suppliers, manufacturers, selling agents and customers. Above mentioned qualitative and quantitative analyses will bring about maximum total utility of value chain and a bright outlook of construction for it.
SCM is made up of Management integration of all value actions in product value chain. Loose supply-demand relations among different interest subjects in value chain have changed into deep supply chain relations. Therefore, a dynamic mechanism is required to support it. Under the regulation of unseen hand-market, this dynamic mechanism breaks the current balance to which enterprises have gotten accustomed. It will provide us a new balance which is more suitable to market demand by competition, cooperation, core competency and process reengineering of enterprises, management integration of supply chain. In this way, a synergetic effect, comes and gives support to enterprises in supply chain to achieve extra-profit.

 

2002-176
A SOLUTION TO THE LIAR
Xue Ping (P. Xue), The Institute of Philosophy, Shanghai Academy of Social Sciences, People's Republic of China
Zhou Bin (B. Zhou), Aetna School of Management, Jiao Tong University, People's Republic of China
The essay provides a solution to the Liar. According to it, the Liar is derived from the fallacy to hold that a set of utterances of different truth-sentences (i.e. the sentence of the form that can be expressed in English as 'W is true (or false)', or 'O(W is true (or false))' ('O' marks a quantifier)) may satisfy a condition that would lead to the consequence that each of these utterances cannot be ascribed to a truth-value if they satisfy it. Seen from the position underlying the solution to the Liar, Kripke's influential diagnosis given in Kripke (1975) is wrong, and it is a consequence of his commitment to the fallacy just mentioned. In addition, it also argues that in the strict sense of the term 'self-reference', it is fallacious to hold that a use of a referring expression may commit to the self-reference, and the appendix to this essay shows that the argument for Godel's First Incompleteness Theorem is not based on holding this claim.
Xue Ping should like to express his thanks to K C Wong Education Foundation, Sino-British Fellowship Trust, Dr J. R. Ravetz, Prof. P. F. Strawson, Dr N. Bunnin, Dr Harry Lewis and Prof. Mark Sainsbury. Xue Ping was awarded a K. C. Wong Fellowship, which enabled him to visit the University of Leeds at the end of 1991; an earlier version of the essay was written during his visit, and its revision was made during his recent visit to University ofOxford funded by Sino-British Fellowship Trust, each of the mentioned scholars read an earlier or recent version of the essay. Prof. Sainsbury also made Xue Ping know Yablo's Paradox. The responsibility for any mistake in this essay is ours.

 

2002-177
A SOLUTION TO CLASSIC LOGICAL PARADOXES OTHER THAN THE LIAR
Xue Ping (P. Xue) The Institute of Philosophy, Shanghai Academy of Social Sciences, People's Republic of China
Zhou Bin (B. Zhou), Aetna School of Management, Jiao Tong University, People's Republic of China
The essay provides a solution to the classic paradoxes discussed by Russell and Ramsey other than the Liar. According to it, each of these paradoxes is derived from confusing a certain expression with a member of a class of expressions whose existence is a condition for its being introduced as an expression or whose use's having reference is a condition for its use to have reference.
Xue Ping should like to express his thanks to K C Wong Education Foundation, Sino-British Fellowship Trust, Dr J. R. Ravetz, Prof. P. F. Strawson, Dr N. Bunnin, Dr Harry Lewis and Prof. Mark Sainsbury. Xue Ping was awarded a K. C. Wong Fellowship, which enabled him to visit the University of Leeds at the end of 1991; an earlier version of the essay was written during his visit, and its revision was made during his recent visit to University of Oxford funded by Sino-British Fellowship Trust, each of the mentioned scholars read an earlier or recent version of the essay. The responsibility for any mistake in this essay is ours.

2002-178
COMPLEXITY, THINKING SYSTEM AND INTELLIGENT MACHINE
Wang Zhikang, Department of Social Science, Zhongshan University,China, 510275,Guangzhou City, zdwangzk@163.net)

In this article three problems are discussed, they are: (1) what is complexity of system; (2) the layer structure and complexity of thinking system; (3) the possibility and Limit of realization of intelligent machine.

2002-179
COMPLEXITY THINKING AND SOCIAL DEVELOPMENT
Peng Xinwu, (Beijing Normal University, Managed College, System Science Department, Post Doctor, 100875.
Presently, ecological, economic and political problem are becoming globe complicated and nonlinear ones, which call human being for adopting new way of behavior and thinking. Modern new and rising science of complexity, general evolutional paradigm and probing way of complexity that complexity science forms change completely traditional world's outlook and thinking way of classical science. It is suitable for researching social system as a methodology of trans-subject, especially for developmental problem that belongs to researching field of trans-subject. This paper is based on absorbing some forward ideas' reason connotation about theory of occurrence, process philosophy, post-modernism and deep-ecology. And it completely checks up and reverse thinks developmental connotation, law, goal and pattern choice from every aspect by complexity thinking.

 

2002-180
QUALITY MEASUREMENTS OF EVOLUTIONARY CHANGES IN SYSTEMS
Elvira Avalos-Villareal, Isaias Badillo-Piña, Enrique Orduñez-Zavala, Sección de Estudios de Posgrado e Investigación, Instituto Politécnico Nacional, México.
E-mails: eavalosv@ipn.mx, ibadillo@mixmail.com
"Everything changes" said Heráclitus. Today a kind of change, the irreversible one, is of very much concern to management of systems. In this paper we propose that the evolutionary paradigm could be used to investigate the fundamental nature of irreversible change in systems.
The evolutionary paradigm describes how an insolated and closed system evolves toward disorder, and how an open system evolves toward order and to higher and higher forms of complexity.
The entropy concept, is proposed as an initial model for measuring the amount of irreversible change accomplished by concrete systems.
At the end of the paper some applications of the entropy model are described to improve management decisions end to analyse the degree of order and predictability in human organisations.