Redefining Organizational Management Capability

In traditional cybernetic organizations, organizational order is reflected in effective responses and obedience from the bottom up. When executors carry out tasks according to decision-makers’ intentions and provide effective feedback, the management capability is considered good. Conversely, when executors fail to follow decision-makers’ intentions or their responses and feedback are chaotic, the management capability is deemed poor. Thus, external observers evaluate traditional cybernetic organizations by observing decision-makers’ decision outputs and executors’ execution. In this framework, good management capability is disconnected from the organization’s adaptability to the external environment in terms of its outputs. For example, a company producing goods that the market does not accept does not necessarily indicate poor management capability, as decision-makers must balance the adaptability of the external environment with internal management. Consequently, in cybernetic organizations, internal management and external marketing are typically divided into separate departments, often led by different decision-makers.

In the Intelligent Consortium framework, the organization is viewed as an intelligent agent. Based on the perspective from the section “Decision and Intelligence” in “Organizational Settings of Intelligenism,” a good organizational decision is defined as one where the organization, as an individual entity, achieves better rights conversion efficiency or completes rights conversions that satisfy the needs of its organizational individuals. Drawing on the definition of high intelligence in “On Intelligence,” good intelligence means that an intelligent agent has better adaptability to its external environment, enabling it to acquire more external resources. Organizational management capability is reflected in the effective execution of the entire process, from the intelligent agent achieving external environment adaptability to obtain external resources (gaining more rights from the external environment) to completing internal rights conversions among individuals (with optimal overall rights conversion efficiency). This process is underpinned by the effective operation of the intelligent agent’s structure.

Comparing the definitions of good organizational management capability between traditional organizations and the Intelligent Consortium reveals that traditional organizational management capability does not evaluate the effectiveness of organizational outputs. In contrast, the Intelligent Consortium’s organizational management capability evaluation encompasses the process by which the organization, as an intelligent agent, seeks to adapt to its external environment to acquire resources. In this process, the goal of organizational individuals is to promote the organization’s pursuit of external adaptability, thereby gaining more resources and enabling the organization to achieve rights conversions from the organization to its individuals. This process is not swayed by any decision-maker’s perspective, and all decision-makers’ views must serve this process. Suppose a decision-maker’s views conflict with this goal and cannot be corrected or restrained. In that case, even if the organization continues to function normally, it should be understood as a problem with the Intelligent Consortium’s organizational management capability.

Under good organizational management capability, the Intelligent Consortium should at least ensure that the fundamental rights conversion goals of all organizational individuals are met, and on this basis, pursue higher external environment adaptability to acquire more rights (as an intelligent agent) or seek higher future rights conversion efficiency. When the Intelligent Consortium achieves rights conversions beyond expectations, the excess should be distributed in a manner approved by organizational individuals to further enhance their benefits. Similarly, when changes in the external environment prevent the Intelligent Consortium from achieving expected rights conversions, adjustments should be made transparently, procedurally, and fairly within the organization, through methods approved by its individuals.