System Feedback Loops Reinforcing Loop Reinforcing Loop reflects the ability of one action to produce an outcome that influences more of the similar action thus resulting into eventual growth or decline (Bellinger, 2004)
System Feedback Loops Reinforcing Loop Reinforcing Loop reflects the ability of one action to produce an outcome that influences more of the similar action thus resulting into eventual growth or decline (Bellinger, 2004)
System Feedback Loops Reinforcing Loop Reinforcing Loop reflects the ability of one action to produce an outcome that influences more of the similar action thus resulting into eventual growth or decline (Bellinger, 2004)
An assessment concerning how Whole Foods Market has generated organizational learning and how this organization can go further and generate additional organizational learning is followed by a summary of the research and important findings in the conclusion. Review and Discussion Balancing and Reinforcing Loops at Whole Foods Markets All systems thinking models use two basic feedback loops, Balancing and Reinforcing loops, to depict the relationships between the constituent elements (Baker, 2006)
54). In addition, both managers and staff encourage work-related learning in a learning organization, including the exchange of information between employees to generate new concepts and knowledge, as well as continuous improvement (Giesecke and McNeil, 2004)
5. Teamwork and Cooperation - An emphasis on teamwork and group problem-solving as the mode of operation and for developing innovative ideas (Goh, p
Becoming a learning organization involves a thorough understanding of what factors comprise the strategic internal drivers that are required to build learning capabilities (Goh, 1999). Consequently the opportunity exists for the company to avoid the so-called "Icarus syndrome" wherein they continue to rely on their existing business model to the exclusion of other market segments (Nagl, 2011) as discussed further below
Like the brain, this stimuli-response is an evolving and fluid process; highly dependent on environmental and other factors. One could take the analogy further, too, and compare different parts of the physiological brain with the functions within an organization: one group organizes, one distributes, one provides analysis, one is more concerned with the physical plant, and all communicate internally and respond to the overall needs based on the particular environment of said organization (Avetyan, 2006)
The open systems model has inputs, transformations (or throughputs) and outputs and has a feedback loop that connects the organizational outputs to renewed inputs. The model is quite effective and important when an organization needs to analyze and diagnose external variables that tend to affect the business (Emery and de Guerre, 2009)
NutriSystems has proven to be effective in learning and closing a number of feedback loop issues uncovered over the last several years, and seems poised for continued success. The key, however, will be continued closure of feedback loops that indicate consumer movement, educational needs, and to remain professional and seen as a long-term solution to dieting issues (Lowman, 2005)
, open systems may be most effective in determining whether the current model is working; whether different functions, operations, and integral parts within NutriSystems are aligned well to adapt to internal and external factors. This is critical because the organization operates in an environment that is highly competitive and is influenced by social, political and economic factors (Senge, 2006, pp
2. Types of Feedback Loops There are two types of feedback loop exist, the first type is a reinforcing loop and the second is a balancing loop, each operates in different ways with reference to cause and effect (Bellinger, 2004)
The basis of the bonus allocation also creates the potential for peer pressure to influence employees who may be perceived as inefficient, or not pulling their weight. The outcome fits in with motivational theory, allowing for financial rewards which are on the lower order needs of Maslow's hierarchy of needs, as well as providing a basis for motivation in terms of expectancy theory (Buchanan & Huczynski, 2010)
The reward strategy utilized by the firm is a good example of a positive reinforcing feedback loop. The organization has a rewards system referred to as "gainsharing," which is linked directly to employee remuneration (Whole Foods Market, 2015)
The paper will start by discussing the manifestation of feedback loops and the different types of loop that exist, and then apply the theory to Whole Foods Market. Different Types of Feedback Loops Feedback loops may be divided into two categories; referred to as reinforcing loops and balancing loops (Bellinger, 2004)
The high level of motivation and associated rewards and also resulted in an extremely low level of attrition; less than 10% per annum (Whole Foods Market, 2014). In addition, when examining the productivity per employee, the results are apparent in the financial statistics; the income per employee is more than 50% higher than the average for the grocery market industry (MSN Money, 2014)
In 2013 the bonus scheme increased average wages for employees of Whole Foods Market by approximately $.86 per hour, which for an employee working 40 hours a week equated to an additional $1,788 for that year (Whole Foods Market, 2014)
E-prescribing is set to grow in the next few years. "The electronic prescribing systems market is estimated to grow at a compound annual growth rate (CAGR) of 26% from 2012 to 2017, at which point it is expected to reach $794 million" (Leventhal, 2015)
Critical feedback loops such as these provide continual streams of data for proper implementation. Critical feedback loops relay the cause and effect of any given situation (Philpott & Menter, 2014)