Article ID: | iaor19992814 |
Country: | Netherlands |
Volume: | 109 |
Issue: | 2 |
Start Page Number: | 403 |
End Page Number: | 413 |
Publication Date: | Sep 1998 |
Journal: | European Journal of Operational Research |
Authors: | Kunsch P.L., Chevalier A. |
Keywords: | control |
The dynamic behaviour of complex human organisations in dynamic environments results from the interplay of multiple agents. In the particular case of commercial or industrial companies, the agents are for example the shareholders, the customers/consumers, the subcontractors/competitors, the workers/employees etc. The role of the managers is to find and to maintain the adequate balance of resources between various management levels to respond to the conflicting interests of these agents without endangering the viability of the company. A distinction is made between operational, strategic and normative levels. Kolm's triangle is introduced as a convenient representation for making visible the relative strength of the three management levels. In the triangle a stability polygon representing a viability zone is identified and monitored by observing the company's indicators. Failure paths are followed whenever the current representative point in Kolm's triangle shifts towards the boundaries of the stability polygon. Herewith a diagnostic tool is provided to the managers in charge to design control policies preventing such adverse evolution.