A Simulation Based on a Self-Referential Model of Organizational Intelligence

Interactions between managers and subordinates were analyzed, within the context of a self-referential system, using data derived from an actual opinion survey. As a result, three patterns were obtained that can be understood as stable reaction patterns. Each of these patterns can be considered as a loop having its own identity, in which the manager’s behavior and reaction of his subordinates are made stable. We find here an example of a self-referential system endowed with its own identity in a group or an organization. The existence of these three loops suggests various problems to be resolved, and they are essential for an understanding of any self-referential system. However, there are also issues regarding non-constant aspects about these loops. The question to be asked in this connection is the following: if there arises any confusion in the group at some point of time, how will the confusion be cleared away? Will it be settled by being shifted or passed on to another loop, or by the effect of some compensatory actions? In order to examine transitions between these loops and production of new loops, a simulation model of interactions between managers and subordinates can be effective in discussing a new problem solving capacity of organizations or organizational intelligence.