Hierarchy And Emergence

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Managers who wish to manage property as an integrated business resource first need to understand the larger system of which it is a part.  Rather than decompose an integrated system into separate elements, a systems approach moves up a level of abstraction to a broader perspective that is framed at a higher level by the environment or context of the system and at a lower level by a description of its internal processes.  The idea that individual systems can be arranged in such a way that levels are ordered in relation to other levels implies that complex systems have a hierarchical structure; however, the term is used here to describe a structural framework, not to imply the imposition of authority within a chain of command.

In a complex system, each level of hierarchy is connected by information flows: higher levels specify the conditions for the lower levels by setting overall constraints and granting permissions; lower levels provide reciprocal feedback information about what the subsystem can and cannot achieve.  Both information flows are crucial - whilst higher level units specify boundary conditions for lower level systems, these constraints or permissions must be appropriate, or else performance at the lower level might decline, affecting the whole system. [17]   Similarly, if the flow of dependency from the bottom up is overlooked, this will result in a misleading picture of the nature of hierarchical systems and the role of the parts of the system in maintaining the effectiveness of the whole. 

Thinking in terms of hierarchical structure is a useful way to simplify complexity and retain vital interconnections between the parts.  Hierarchy theory combines analysis with holistic thinking whilst avoiding the problems of ‘brute force’ reductionism.  According to hierarchy theory, the behaviour of any system is explained in terms of a duality: looking up for an explanation of the purpose or meaning of the system - answering the question ‘why’; and looking down for an explanation of how the system operates - answering the question ‘how’.  In a hierarchical system, processes at each level of the organisation tend to operate at different rates - see diagram on the opposite page.  In a stable environment, when change occurs slowly and the future is predictable, processes at higher levels change at a relatively slow rate, representing a constant setting or context for the quicker activities they encompass. [16]  But in a more turbulent environment, or in times of change, this equilibrium can be disturbed and, at least for a period of time, the lower levels can influence the established levels of the hierarchy. [18]

Complex systems are characterised by ‘emergent’ properties which are the result of the interrelationships between the parts of the system - see inset.  Emergence is a property of complex systems that cannot be explained in terms of the parts alone, but becomes apparent only when they are studied as a whole; for example, a school comprises various assets such as buildings, equipment, pupils, curricula and teachers, but its defining characteristic (its ethos) is a quality which emerges from interactions between the parts.  The principle of emergence challenges the common assumption that when managers possess sufficient information about a situation, its behaviour can then be predicted and controlled.

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