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Causal Loop Diagram (CLD) System: Fair Housing Initiatives Program (FHIP) Exploring the causal relationships within an the organizational work system using a non-

profit FHIP program for a brief case study

Prepared by Try L. Muller 1 /20/2009

System Purpose Piedmont Housing Alliance (PHA) is the area’s sole resource for fair housing. The Fair Housing act of 1988 prohibits discrimination in the rental, sale and lending of housing based on 8 protected classes: race, color, religion, national origin, gender, disability, familial status and elderliness. The organizational system that regulates PHA’s Fair Housing Program is essential to the worldwide and local efforts to end housing discrimination. It regulates and supports the progress of PHA as a Fair Housing Initiatives Program (FHIP). This is significant because it requires that PHA show how the implementation of various programs has positive effects on the community. These statistics and analysis must be put into a grant application for FHIP funding for the U.S. Department of Housing and Urban Development (HUD). Subsequently, PHA retains its role as a HUD funded FHIP organization. The system is fundamental to both the Fair Housing Program and the quality of living in the surrounding community.

Causal Loop Diagram: FHIP System Optimal Program Performance


S Fair Housing Enforcement

Employee Competency Level






Implementation Efficiency

O Availability of training seminars

FHIP Funding

S 2

System Components and Dynamics The diagram depicts FHIP funding from HUD as the most pivotal factor in the operational process. The FHIP funding assumes this role because PHA relies on this money in order to be recognized as a Fair Housing Alliance. Without this funding from HUD, the organization would have to submit multiple grant applications in order to potentially receive the money they would get from a single grant. The balancing loop The balancing loop shows an initial reversal in the relationship between FHIP Funding to the employee competency level. The employee competency level acts as a catalyst to the FHIP funding as it reflects the overall efficiency of the program. The same can be said for the time delay caused by the availability of educational seminars. If there are not enough training opportunities, employee competency will not improve; in turn, affecting funding. Yet, employee competency is directly related to the program’s performance. The reinforcing Loop The reinforcing loop is self explanatory. An increase in FHIP funding allows for quick efficient implementation of various programs that have overhead costs. The efficient implementation of programs in turn allows for more fair housing enforcement. The programs set up property testing in order to catch violators of Fair Housing Law. Effective enforcement then leads to the optimal program performance. Good program performance incites more FHIP funding and more funding helps the organization fulfill its role as a FHIP.