Organizational Theory

Winter 2003

Gail Johnson

1/13/03

www.otcore

Organization
Greek Organon: meaning a tool or instrument.
So, organizations are tools or instruments to meet goals, objectives, to carry out tasks.

1/13/03

www.otcore

Theory and Paradigms

Theory:
A coherent group of general propositions used as principles of explanation or A proposed explanation whose status is still conjectural

Paradigm: an example or pattern

1/13/03

www.otcore

Theory and Paradigms

To help us understand how organizations work To help us think about how we understand organizations To help us think about we approach others within the organization based on our theory. To help us determine more effective ways of organizing to get work done.
1/13/03 www.otcore 4

Organizational Theology?
Each offers scripture and preaches its own version of the gospel to modern managers. Each has a vision of how organizations are and should be.
Boleman and Deal, p.3

1/13/03

www.otcore

Theories as Frames:
Frames or Windows
filter order the world

Structural Frame Human Resource Frame Political Frame Cultural Systems

1/13/03 www.otcore 6

Guidelines for Leading Paradigm Shifts

Introduce anomalies and help people perceive them Provide a clearly defined new paradigm Build faith in the new paradigm Help people let go of their old paradigm Give people time in the neutral zone Give people touchstones Provide a safety net
Osborne and Plasterik, Banishing Bureaucracy, p. 265.

1/13/03

www.otcore

Structural Paradigm
Image:
Words:

Phrase:

A machine Pyramid Efficient Impersonal Goal-driven The One Best Way

1/13/03

www.otcore

Structural Paradigm
Max Weber: Structure strives to achieve: calculability of rational results, precision, stability, discipline, and reliability.

1/13/03

www.otcore

Structural Assumptions:
Exist to accomplish its goals Problems usually reflect an inappropriate structure Work effectively when the norms of rationality prevail. Specialization permits higher levels of individual performance. Coordination and control are accomplished best through the exercise of authority and impersonal rules, and centralized oversight.
1/13/03 www.otcore 10

Structural Paradigm
Control
Control Control

1/13/03

www.otcore

11

Margaret Wheatley
If organizations are machines, then control makes sense. If organizations are process structures, then seeking to impose control through permanent structure is suicide.

Wheatley, p. 23

1/13/03

www.otcore

12

Truth or Fiction?
Bureaucracy is the single best form of organization of organization yet devised for providing consistency, continuity, predictability, stability, deliberateness, efficient performance of repetitive tasks, equity, rationalism and professionalism. (Cooper, p. 201)

1/13/03

www.otcore

13

Bureaucracy Does Not Mean Government

In organizational theory, we are talking about how organizations are structured. This is not to be confused with discussions about government, even though government is often referred to as bureaucracy. The overall governance is not easily explained by the principles of the Webers ideal bureaucracy.

1/13/03

www.otcore

14

Which is True?
Rules promote fairness and accountability in the conduct of public business. Rules are also the enemy of progress and dispatch.

1/13/03

www.otcore

15

Human Relations Frame

Image: Words: Family Caring, Nurturing, Supportive Spirit Concepts: motivation, empowerment, development, communication

1/13/03

www.otcore

16

Human Relations Assumptions

Organizations exist to serve human needs Organizations need the ideas, energy, and talent that people provide People need the careers, salaries, and work opportunities that organizations provide. Fit is crucial:
When poor, one or both will suffer. When good, both benefit.

1/13/03

www.otcore

17

Human Relations
Chester Barnard: The key limiting factor to organizational success is in getting people to cooperate in accomplishing the organization's purpose.

1/13/03

www.otcore

18

Incentives
To get them to cooperate you must induce them to join the organization and then induce them to contribute. The organization depends upon the motives of individuals and the inducements that satisfy them.

1/13/03

www.otcore

19

Incentives
Material: money, compensation, bonuses Personal: prestige, distinction, power Values: pride of workmanship, altruistic service, loyalty, patriotism Associational: social compatibility, social status Opportunity: participation, efficacy Security: job security, support

1/13/03

www.otcore

20

Maslows Hierarchy of Needs

SelfActualization

Esteem Belonging Love Safety Physiological

1/13/03

www.otcore

21

Follett: Different Vision

Circle, Not Pyramid Belonging and Relatedness would be the top. Self-esteem and self-actualization would be lower-order needs Mary was not big on individualism.

1/13/03

www.otcore

22

Follett: Different Vision

We cannot put the individual on one side and society on the other, we must understand the complete interrelation of the two. Each has no value, no existence without the otherThere is no such thing as a self-made man. (p. 257) Of what then does the individuality of a man consist? Of his relation to the whole, not (1) of his apartness nor (2) of his difference alone.
1/13/03 www.otcore 23

Follett: Different Vision

I am an individual not as far as I am apart from, but as far as I am part of others. Non-relation is death. (257)

1/13/03

www.otcore

24

Theory X and Theory Y

Theory X
childlike passive lazy resists work want to be led bare minimum

Theory Y
adults desire to achieve committed to work responsible lead, control their work want to do a good job

1/13/03

www.otcore

25

Where is your organization?

Does it value people? Does it treat people like adults? Does it develop people? Do managers treat employees as customers? Should it?

1/13/03

www.otcore

26

Mary Says:
Even if it is true that people want to be told what to do--and I dont think it is true but even if it is-I dont think there is any reason to encourage that desire. As a parent, you teach your children to make decisions, even if they would, at least initially, prefer you to make the decisions for them.

1/13/03

www.otcore

27

Mary Says:
We all have to learn to take our share of responsibilityand leaders should make us feel our responsibility, not take it from us. (p. 214) We are all part of the evolving situation. We all must make our contribution.

1/13/03

www.otcore

28

Peter Block
the mindset that there is a population waiting to be told what norms and values they are to live by expresses a loss of faith in human capacity.

1/13/03

www.otcore

29

Political Paradigm
The political frame views organizations as 'alive and screaming' political arenas that house a complex variety of individuals and interest groups. This is not about elections and elected positions.

1/13/03

www.otcore

30

Political Paradigm
Image:
Words:

smoke-filled room battle wheeling and dealing My way or no way.

1/13/03

www.otcore

31

Political Paradigm
It is a world not of angels but of angles, where men speak of moral principles but act on power principles; a world where we are always moral and our enemies always immoral. Saul Alinsky, 1971

1/13/03

www.otcore

32

Political Paradigm
Morgan: "Power is the medium through which conflicts of interest are ultimately resolved. Power influences who gets what, when, and how." Dahl: "Power involves an ability to get another person to do something that he or she would not otherwise have done." Follett: "Power might be defined as simply the ability to make things happen, to be a causal
agent, to initiate change. "
1/13/03 www.otcore 33

Power Paradigm Assumptions

Important decisions: allocation of scarce resources. Organizations are coalitions composed of a number of individuals and interest groups Individuals and interest groups differ in their values, preferences, beliefs, information, and perceptions of reality. Goals and decisions emerge from ongoing processes of bargaining, negotiation, and jockeying for position among individuals and groups. Because of scarce resources, narrow self-interest and enduring differences, power and conflict are central features of organizational life."
1/13/03 www.otcore 34

Power Assumptions
Its all a game. Who ever has the most toys wins.

1/13/03

www.otcore

35

Human Side of Power

The decision as to whether an order has authority or not lies with the persons to whom it is addressed, and does not reside in 'persons of authority' or those who issue these orders. Chester Barnard
Our job is not how to get people to obey orders, but how to devise methods by which we can best discover the order integral to a particular situation. Mary Parker Follett
1/13/03 www.otcore 36

Human Side of Power

Power Over
power is scarce and limited giving orders punish noncompliance negative beliefs about people

Power With
power increases when shared orders are determined by the situation participatory problem-solving positive beliefs about people
www.otcore 37

1/13/03

Powerlessness
In organizations, it is powerlessness, not power that corrupts. When people feel powerless, they behave in petty, territorial ways. The become rulesminded and they are over-controlling because theyre trying to grab hold of some little piece of the world that they do control and then over-manage it to death. Kantor
1/13/03 www.otcore 38

Forms of politicking
Pad budgets to get more resources Pick easy tasks and build them into mountains Image management Appear busy Manage to stay until after the "boss" leaves, so you appear to be hard working.
1/13/03 www.otcore 39

More malignant forms

Sabotage co-workers, or competitive work units, so you appear to look good.
Create "problems" which only you can solve. Take credit for the work of others.
1/13/03 www.otcore 40

Ways to handle conflict

Avoidance--denial: moose on the table Compromise: deals, temporary Competition: win/lose Accommodation: giving way, submission Collaboration: win/win, integrative

1/13/03

www.otcore

41

Follett: Dealing with Conflict

Bring the conflict into the open denial is dsyfunctional Make agendas visible: dont pretend you dont have personal motives Lay your cards on the table Listen to the issues and concerns of all parties.
1/13/03 www.otcore 42

Follett: Dealing with Conflict

Break issues and concerns into their constituent parts:
Seek areas of agreement Seek solutions on the smaller issues.

Understand the symbolic value of the issues. Respect and trust are essential.
1/13/03 www.otcore 43

Follett: Dealing with Conflict

Not all problems will have win-win solutions. But all parties should feel they have been heard and that their views were seriously considered.

1/13/03

www.otcore

44

Obstacles to Integration
Lack of intelligence and inventiveness Unwillingness to take responsibility Enjoyment of domination Fight addict

1/13/03

www.otcore

45

Obstacles to Integration
Tendency to theorize rather take action Language of "war" The manipulation by the unscrupulous leaders Our lack of training in the "art" of cooperative thinking and action

1/13/03

www.otcore

46

Kritek: Masks of Manipulation

Praise and Flattery Lying and Deception Helpfulness and Generosity Trickery and Secret Deals Attacking and Threatening

1/13/03

www.otcore

47

Masks of Manipulation
Deliberate Stupidity Cuteness and Flirtatiousness Persevering Withholding

1/13/03

www.otcore

48

Covey: Personal Influence

Refrain from saying the unkind or negative thing Exercise patience with others (and self) Distinguish between the person and the behavior Perform anonymous service Keep your promises Assume the best of others
1/13/03 www.otcore 49

Covey: Personal Influence

Seek first to understand Reward open, honest expressions Give an understanding response Admit your mistakes, apologize, Let arguments fly out open windows Go one on one Renew your commitment to things you have in common
1/13/03 www.otcore 50

Sources of Power
Authority Expertise Control of Resources Control of Process Control of decision processes Information Personal Associational Coercive

1/13/03

www.otcore

51

Exercise:
Who has power in your organization?
What are your sources of power?

1/13/03

www.otcore

52

Cultural Paradigm
A pattern of basic assumptions, invented, discovered, or developed by a given groups as the correct way to perceived, think and feel

1/13/03

www.otcore

53

Cultural Paradigm
Words: norms, values The way it is done here We dont do that our way. village, anthropologist

Image:

1/13/03

www.otcore

54

Cultural Paradigm: Assumptions

Culture affects how each member thinks, feels and acts. Much of what happens is ambiguous and uncertain, and undermines rational approaches When faced with uncertainty and ambiguity, people create symbols to reduce ambiguity and to resolve conflict

1/13/03

www.otcore

55

Clues to Organizational Culture

Passion Pictures Habits Humor Stories Surprises

1/13/03

www.otcore

56

Agency culture and personality

Attempts to change organizations
without understanding its culture norms, beliefs, and valuesare bound to fail. Reorganizations should not be prescribed as a cure for personality problems.

Seidman:

1/13/03

www.otcore

57

Agency culture and personality

Agencies have "distinct and multidimensional personalities and deeply ingrained cultures and subcultures, reflecting institutional history, ideology, values, symbols, folklore, professional biases, behavior patterns, heroes, and enemies.

Seidman:

1/13/03

www.otcore

58

Seidman: Agency culture and personality

It would be as unthinkable for a secretary of agriculture to question the innate goodness of the rural way of life and the inherent virtues of the family farm as it would be for an OMB director to be against economy and efficiency

1/13/03

www.otcore

59

Seidman: Agency culture and personality

As the leader of a rugged 'outdoors-type' department, a secretary of the interior is not out of character when he climbs mountains, shoots the Colorado River rapids, or organizes well-publicized hiking and jogging expeditions.

1/13/03

www.otcore

60

Seidman: Agency culture and personality

Identical conduct by the secretary of the treasury would shake the financial community to its core." {pp. 166-167}

1/13/03

www.otcore

61

Cultural Paradigm
Myths provide explanations maintain group cohesion anchor the present in the past

1/13/03

www.otcore

62

Cultural Paradigm
Some myths we live by: Authority must always equal responsibility Planned organizational change The objective, neutral expert Managerial control One best way
1/13/03 www.otcore 63

Cultural Paradigm
Some rituals and ceremonies: presidential conventions performance appraisals award ceremonies committee meetings (with no outcomes expected) management training programs
1/13/03 www.otcore 64

Twelve Lessons for Leaders of Culture Transformations

Winning minds, changing habits, touching hearts
1. 2. 3. 4. 5. . Dont control employees--involve them. Model the behavior you want. Make yourself visible Make a clear break with the past. Unleash--but harness the pioneers.

1/13/03

www.otcore

65

Twelve Lessons for Leaders of Culture Transformations

Winning Minds, Changing Habits, Touching Hearts
6. Get a quick shot of new blood--and a slow transfusion 7.Drive out fear--but dont tolerate resistance. 8. Sell success. 9. Communicate, communicate, communicate.

1/13/03

www.otcore

66

Twelve Lessons for Leaders of Culture Transformations

Winning Minds, Changing Habits, Touching Hearts 10. Bridge the fault lines in the organization.
11. Change administrative systems that reinforce bureaucratic culture. 12. Commit for the long haul.
Osborne and Plasterik, Banishing Bureaucracy

1/13/03

www.otcore

67

Open Systems
Organizations can be seen as open systems, like organisms which constantly adapt to their internal and external environment
Image: organism Words: flexible, responsive, fluid, changing
1/13/03 www.otcore 68

Systems Paradigm
What endures is process: dynamic adaptive creative Leader maintains focus, guiding principles, and vision.
1/13/03 www.otcore 69

Wheatley:
I have observed that the search for organizational equilibrium is a sure path to institutional death, a road to zero trafficked by fearful people. (P. 76).
Life is an open system: Open systems that engage with their environment and continue to grow and evolve. (P.77)
1/13/03 www.otcore 70

Assumptions
External conditions influence the flow of inputs, outputs and can affect the internal operations. Organizations use many of their products, services, and ideals as inputs to organizational maintenance or growth Organizations are influenced by their members as well as their environments.

1/13/03

www.otcore

71

Assumptions
Subsystems are all interrelated and influence each other; Organizations are constantly changing. An organization's success depends on its ability to adapt to its environment Any level or unit within an organization can be viewed as a system.
1/13/03 www.otcore 72

Environment

Goals Inputs

Culture

Behaviors Processes Technology Structure Environment

Outputs

1/13/03

www.otcore

73

Open Systems
Inputs Outputs Technology Environment Goals and strategies Behavior and processes Culture Human resources Structure

1/13/03

www.otcore

74

GAO:
Inputs: People and money; some technology; knowledge Outputs: reports and testimony Technology: brains, analytic thought, rational model, computers, printing Environment: political
1/13/03 www.otcore 75

GAO:
Goals and Strategies: vision statement but no strategic plan to get there. Behavior and processes: command and control, accounting model

1/13/03

www.otcore

76

GAO:
Culture: 100% accuracy; inspect accuracy; checkers checking the checkers. Human resources: few careers; rewards based on writing, not rocking the boat. Structure: flat at the bottom; very steep hierarchy at the top.

1/13/03

www.otcore

77

Colleges/Universities
Inputs? Outputs? Technology? Goals and Strategies? Behavior and Processes? Culture? Human Resources? Structure?
1/13/03 www.otcore 78

Application: Senges Learning Organizations

Systems Thinking
big picture, interconnections

Team Learning
Group IQ dialogue greater than sum of the parts

Personal Mastery
personal vision, patience, reality

Mental Models
question assumptions, internal images

Shared Vision
picture of the future

1/13/03

www.otcore

79

Wheatley:
We are capable of ...transformations when we trust that new thoughts and ideas can selforganize in the environment of our minds and our organizations. And we should do well to take clouds more seriously: After all, how do you hold a hundred tons of water in the air with no visible means of support? You build a cloud.
Cole, in Wheatley, p.99

1/13/03

www.otcore

80

Wheatley:
Wheatley asks: Why are we afraid of what happens if our boat gets rocked?

1/13/03

www.otcore

81