What structures determine the true behaviour of an organisation?
To analyse the true behaviour of an organisation and discover patterns, the OSTO System Model looks at various elements internal to the system that are essential for company success, i.e. for turning input into output.
The goals are to be understood as the internal concretisation and derivatives of the raison d'être – they define what has to be done internally.
Strategies contain the values and principles on whose basis organisations are designed. In addition, strategies drive forward the implementation of goals – while constantly putting the question: how do we translate goals concretely into the organisational design and thus into practice? This is achieved through adjusting the design components.
The “People” component covers every member of a company or organisation, their talents, qualifications, expectations and needs.
The “Technology” component covers the technical machinery, equipment, building etc. (material resources) and their relationships with each other, i.e. all materials and spatial circumstances. In a further sense, process patents or other stable assets can be considered as technology within the system.
Organisational Structure (O)
The “Organisational Structure” is the organisational structure and process, that is, the functions, hierarchies, relationships of subordination and control of processes in temporal, spatial and material aspects.
The “Tasks” component is derived from the open nature of organisations. It encompasses the description of the individual tasks arising from customer needs, their division into subtasks in the form of concrete work assignments, expectations of functions, workplaces etc. In this way, processes can be developed to implement and cement changes in organisations.
Decision-Making System (DS)
The “Decision-Making System” describes where, how, by whom, at what level, in which location and with which aids decisions are actually taken. In addition, it describes the methods, processes, rules of play etc. that control decision-making processes. Formally defined decision-making paths are only a portion of the total effective decision-making system.
Information System (IS)
The information system describes who, when, by whom and with which aids information is – or is not – received, and why this is the case.
Reward & Control System (RCS)
The “Reward & Control System” is understood as comprising amplification and attenuation systems of both a material/immaterial and formal/informal nature. What is meant by this are processes that monitor and control human and technical behaviours, results and processes. These include, for example, remuneration structures, the allocation of budgets and assignment of positions, control by KPIs and the unwritten rules of companies such as personal appreciation.
Development & Renewal System (DRS)
The “Development & Renewal System” of a company helps the organisation retain flexibility, the ability to perform and adapt, and lets it continuously develop in this regard.
The system behaviour is the result of goals, strategies and the design elements resulting from them. In every system/organisation, a wide range of very different behaviours is possible (e.g. leadership behaviour, working behaviour etc.). This also means that the system behaviour can only be influenced by means of the design elements. As systems are dynamic processes, they are not object- but event-oriented. The system as a whole can possess properties belonging to no single component of it (collective properties) and in general does not behave as the mere sum of its parts. In the final account, the system behaviour moulds the culture of an organisation. The OSTO System Model is currently the only model of this type that gives consideration to the behaviour of organisations.
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