The SLMHM/SPEM Model in Organization Development

[Русская версия]

This article briefly describes the application of the SPEM model to understanding the stages of organizational development.

The SPEM model includes 5 stages of evolution, which are qualitatively different from each other. The practical application of the organizational development model is to evaluate phenomena (business processes, corporate culture rules, employees, tasks, etc.) on a scale from 0 (chaos) to 4 (creativity) and take measures to raise them to the next level, thereby increasing the level of organizational development. Taking into account the THM 2.0 model (which has a compatible structure) allows us to include personnel development issues in the consideration.

Chaos

Chaos can be considered as something better than nothing. However, if all phenomena in an organization are chaotic, then can we talk about an organization as such? Perhaps in reality, such organizations appear and exist, but the question of whether this makes any sense remains open. The practical benefit is to study which phenomena in an organization are chaotic and understand how to get rid of them or move them to a higher level. After all, chaotic phenomena:

have an unpredictable effect on the organization, even to the point of its destruction. Of course, chaotic phenomena, being random, can improve the organization, but other disadvantages negate this advantage;
are not controllable. Business processes (like other phenomena) in an organization cannot be uncontrollable. The question arises: do chaotic processes in this case relate to the processes of the organization if they are controlled by the laws of chaos? Obviously not;
require an immediate response. All random processes, being unpredictable and uncontrollable, require an immediate response to them, which includes the expenditure of additional resources. Moreover, this is the case for both negative and positive phenomena;
do not provide knowledge and experience. Undoubtedly, the very presence of chaotic phenomena provides knowledge and experience. However, the lack of connection between the causes of chaotic phenomena and their influence on the organization does not provide an opportunity to obtain the relevant knowledge and experience;
can lead to spontaneous structuring of personnel under religious and philosophical control.

From chaos to structure

As a first step in solving problems associated with chaotic phenomena, an organization must introduce rules and maintain discipline. Rules and discipline lead to the emergence of a structure in the organization (created, as opposed to spontaneous in the case of religious and philosophical control). The structure allows:

to exclude known causes of the emergence of phenomena that have a chaotic result;
to unify approaches to solving problems and creating template solutions;
to create an organizational structure that allows for the distribution of resources, the elimination of conflicts between employees/departments, and the structuring of command and reporting flows.

It should be taken into account that structuring cannot solve all the problems associated with chaotic phenomena. In addition, structuring leads to the emergence of new problems, among which are:

limitation of flexibility;
suppression of personnel initiatives in cases where they are accepted by the system as random phenomena;
the emergence and development of bureaucratic control.

From structure to rationality

Structure helps to combat chaotic phenomena. However, as noted, structure also has its drawbacks. For example, lack of flexibility does not allow to respond successfully to changes. This can be considered the main problem, since lack of adaptation to changes can lead to the collapse of the organization. In view of this, it is necessary to introduce rationality into the organization, which will provide the following advantages:

understanding of cause-and-effect relationships, which will make it possible to analyze, accumulate knowledge and experience;
knowledge and experience contribute to a flexible response to changes and adaptation to various situations;
understanding of what is happening, knowledge and experience contribute to the growth of the organization, the accumulation of wealth and benefits.

Rationalization solves many problems, but the following problems cannot be solved at the level of rationalization:

the Matthew effect, which consists in the formation of a gap between those who receive a large salary in the organization and a small one, make a large contribution to its functioning and a small one, receive satisfaction from work or hate it, etc.;
increasing corporate control over employees and their actions;
degradation of human values due to the priority of material benefits, achievements, etc.

From rationality to comfort

Rationality allows an organization to achieve a level of adaptation to changes, sustainability and growth. However, comfort in the strict sense cannot be achieved at the level of rationality. The fact is that comfort is based on feelings, and feelings cannot be rationalized. At the same time, feelings and rationality can be harmonized so that there are no contradictions between them. The ability to harmonize feelings and rationality is emotional intelligence. The development of emotional intelligence occurs when people interact with each other. Moreover, a more developed emotional intelligence allows you to better interact with others. The development of emotional intelligence, which contributes to comfortable conditions in the organization, provides the following benefits:

improving group work and interaction of employees with each other;
increasing human values and improving human qualities;
mitigating the Matthew effect due to better interaction between those between whom there was a big difference in any of the qualities;
proactive measures to combat known problems.

Although the transition to comfort has great advantages, this level also poses threats to the organization, for example:

increased hedonism (the desire for pleasure), which can lead to the decomposition of morality and weakening of the organization’s stability;
increasing technological control over employees and their actions;
increasing contradictions with the following levels – rationality and structure.

From comfort to creativity

Development of the organization to the comfort level creates a good basis for the sustainable functioning of the organization. At the same time, such organizations are quite complex and in this complexity many contradictions arise. These contradictions can be eliminated with the help of creativity development. The advantages of the creativity level for the organization are as follows:

this is the highest level, being at which it is possible to solve problems of lower levels using new, unique methods;
the ability to use the potential of employees to the maximum extent;
the best opportunities for adaptation to changes;
proactive measures to combat unknown problems.

Vitality

Vitality is one of the main qualities that can be considered to assess the maturity of an organization. It determines how strong an organization can be in the marketplace, its competitive advantage, and its ability to expand.

To understand what viability is, you can refer to Caroline Taylor’s blog (see References): “Organizational vitality encompasses several key dimensions that contribute to the overall well-being of a company. These dimensions include employee engagement, adaptability, innovation, customer satisfaction, financial performance, and leadership effectiveness. A vibrant organization excels in these areas, fostering a positive work culture, attracting top talent, and achieving sustainable growth.” From this definition, it is clear that more mature organizations that have achieved high levels of maturity according to the SPEM model are more viable and sustainable.

According to Professor Volchenko’s formula (taken from the works of S.V. Kovalev, see the references), viability is directly proportional to the amount of information and inversely proportional to the energy spent on maintaining this information. In the case of the SPEM model, each level of the organization corresponds to more information and less energy, which corresponds to an increase in its viability. Here it will be useful to mention such a concept as entropy, which corresponds to the measure of chaos. Thus, with the development of the organization, entropy (that is, the measure of chaos) decreases. At the same time, development allows for a decrease in the energy required to maintain the required information level. The decrease in energy occurs through the elimination of contradictions that absorb energy.

Results

The introduction of rules, discipline and structure allows you to move from chaos to order. Order allows you to choose the most useful and act in the best way. Order and focus on benefit allow you to achieve comfortable working conditions. Ultimately, order, focus on benefit and comfort create conditions for creativity. Creativity, on the one hand, requires a high level of development of the organization, on the other hand, it creates conditions for its survival and sustainability. The development of the organization consists in eliminating various kinds of contradictions that lead to losses. Contradictions include both obvious contradictions and discrepancies between expectations and results, discrepancies between the capabilities of the organization and market demands, discrepancies between the efforts invested and the results, etc.

References

Gakh D. A Look to Model of Society and Teams Development Based on Initial Formation, Primary, Adaptable, Information, and Creative Society Patterns. International Journal of Management Research and Economics. 3(1), 36-56. https://doi.org/10.51483/IJMRE.3.1.2023.36-56

Gakh, D. (2023c). Societal Patterns Evolution Model in Development of Economy, Society, and Environment, Journal of Research, Innovation and Technologies, Volume II, 2(4), 142-160. https://doi.org/10.57017/jorit.v2.2(4).03

Gakh D. The Conception of the Theory of Human Motivations 2.0 / Концепция Теории Мотиваций Человека 2.0. Communication Document. Research Gate. https://doi.org/10.13140/RG.2.2.18975.84644

Kovalev S.V., Витальность благоразумия или об информационной адекватности жизнедеятельности, https://psy-in.ru/articles/vitalnost-blagorazumiya-ili-ob-informatsionnoj-adekvatnosti-zhiznedeyatelnosti

Carolyn Taylor, What Is Organizational Vitality and How Is It Measured?, https://www.linkedin.com/pulse/what-organizational-vitality-how-measured-carolyn-taylor/