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< previous page page_105 next page > Page 105 stability. We will consider these issues in terms of what Beer calls the System 1-2-3 homeostat. Beer employs six vertical channels to handle "variety" (a measure of complexity) in the model (see Figure 5.4). Channels (I) and (II) are at the centre of the vertical command axis and are tasked by Beer with the construction of the Resource Bargain and meeting Accountability and Corporate and Legal Requirements. They should also ensure the autonomy of the divisions of System 1. Channel (III) is governed by Procedure 3, with Channel (IV) representing the management of environmental disturbances. Channels (V) and (VI) are shown in more detail in their redesigned form in Figure 5.5. These are the high- level variety filters and are based on the use of co- ordination, review of performance, quality control and feedforward forecasting. They are also designed to assist the divisions of System 1 in carrying out day-to-day business (keeping the fleet on the road and in line with the purpose of the system-in- focus).
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This note was uploaded on 04/21/2011 for the course MGT 03 taught by Professor Kasra during the Spring '11 term at Tanta University.

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