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This paper shows how the use of performance management systems affects managers' perception of satisfaction, the effectiveness of the control system and the performance related to process innovation. An exploratory empirical research has been conducted on 85 managers operating in Italian healthcare organizations. Empirical findings put forward that the interactive--as opposed to diagnostic--use of performance management systems enhances managerial satisfaction with the control system and managerial perception of effectiveness. The present study then showed that it is not the control itself that is an obstacle to innovation in organizations in general (and in health organizations in particular) but the diagnostic use of the control mechanisms, which impedes the interaction between the control personnel and those subject to the control. Finally, this paper addresses managerial implications and further research avenues.

Since Thomas Schelling's attempt, in Micromotives and Macrobehavior, to offer a logical explanation of why collective macro behaviour derives from the micro behaviours of intelligent agents and Conway's discovery of the fantastic world of Life, the study of the behaviour of collectivities has been a very complex subject of study, and for this reason a fascinating and interesting one as well. If observed from a certain distance collectivities appear distinct with respect to the individuals that compose them and, due to the interactions of the micro behaviours, seem capable of producing interesting macro behaviours to which many relevant collective phenomena of self-organization may be associated; four of these processes are: the accumulation of objects, the spread of features or information, the pursuit or exceeding of a limit, and the attainment and maintenance of an order among the micro behaviours. To understand, explain and, to a certain extent, control these collective phenomena I have formalized the simple Theory of Combinatory Systems. In plain words, by Combinatory System I mean any unorganized collectivity made up of a plurality of similar agents producing analogous micro behaviours; the macro behaviour of the system, as a whole, derives from the combination of the analogous micro behaviours (hence the name Combinatory System); but, on the other hand, the macro behaviour directs the subsequent micro behaviours according to a feedback relation. The action of a set of recombining and necessitating factors guarantees the maintenance over time of the dynamics of the system, so that when the system starts up "by chance" it then maintains its behaviour "by necessity", as if an invisible hand regulated its time path and produced the observable effects and patterns. This paper presents the fundamental ideas and mechanisms that underlie these systems, along with some models that illustrate the self-organization activity in collectivities.

Purpose Accepting the assumption that our intelligence depends on the ability to construct models which may allow us to acquire, update and transmit our knowledge, this paper aims to highlight the role of Systems Thinking in developing the “intelligence” of managers for all types and sizes of organization. Design/methodology/approach Four relevant contributions for improving the “intelligence” of managers will be examined: the ability to understand and model dynamic systems, the structure of Control Systems, the rules of the decision-making process and the identification of systems archetypes. Findings The paper will show that Systems Thinking, through the logic of Control Systems, offers managers a comprehensive representation of the problem-solving and decision-making processes, teaching them how to distinguish problems from symptoms and to acquire a leverage effect. Additionally, Senge’s system archetypes will be presented and new archetypes will be added to Senge’s list. Practical implications The viability of every organization and its effective resilience and survival make it more than ever necessary for managers to adopt Systems Thinking, not only as a technique but also primarily as a discipline for efficient and effective thinking, learning, communication and explanation with regard to the dynamics of the world. Originality/value The message of the paper is that by continually applying the rules and language of Systems Thinking, managers develop the capability to continually adapt their models to the dynamics of the world, increase their learning capacity and better gauge their consequent judgments, decisions and behavior, thereby removing the mental impediments to intelligence (inappropriate mental models, defensive routines, judgmental biases, rules, etc.).

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