Figure 2 The contribution of systems dynamics is exemplified by showing that the inadequate diagram of one-way, straight-line thinking is only part of the story. The closed-loop diagram used in SD modelling raises awareness of unintended consequences. In this case, it suggests the laying off of workers causes demoralisation of remaining workers and reduces productivity. (Downsizing is a management term for cutting staff to reduce company costs and raise profits.)

Alternative description

A SD model constructed of casual loop diagram

Back to - Figure 2 The contribution of systems dynamics is exemplified by showing that the inadequate diagram of one-way, straight-line thinking is only part of the story. The closed-loop diagram used in SD modelling raises awareness of unintended consequences. In this case, it suggests the laying off of workers causes demoralisation of remaining workers and reduces productivity. (Downsizing is a management term for cutting staff to reduce company costs and raise profits.)