Organisational

Organizational Theory Winter 2004 Gail Johnson

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

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

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.

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

Theories as Frames: Frames or Windows filter order the world Structural Frame Human Resource Frame Political Frame Cultural Systems

Mindsets Blue Red Black Green Black Blue Green Red Green Black Red Blue Blue Green Red Black Red Black Blue Green

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.

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

Systems Paradigm What endures is process: dynamic adaptive creative Leader maintains focus, guiding principles, and vision.

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)

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.

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.

Environment Outputs Inputs Environment Goals Culture Behaviors Processes Technology Structure

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

GAO: Inputs: People and money; some technology; knowledge Outputs: reports and testimony Technology : brains, analytic thought, rational model, computers, printing Environment : political

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

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.

Colleges/Universities Inputs Outputs Technology Goals and Strategies Behavior and Processes Culture Human Resources Structure

Application: Senge’s Learning Organizations Systems Thinking big picture, interconnections Personal Mastery personal vision, patience, reality Shared Vision picture of the future Team Learning Group IQ dialogue greater than sum of the parts Mental Models question assumptions, internal images

Wheatley: “ We are capable of ...transformations when we trust that new thoughts and ideas can self-organize 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)

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

Structural Paradigm Image: A machine Pyramid Words: Efficient Impersonal Goal-driven Phrase: The One Best Way

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

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.

Structural Paradigm Control Control Control

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

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)

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 Weber’s ideal bureaucracy.

Meditation Rules promote fairness and accountability in the conduct of public business. Rules are also the enemy of progress and dispatch.

Sabotage Exercise You have been brought into a public organization to sabotage it. However, you can't tell anyone that is what you are doing You have to make it appear that you are trying to improve the organization. Using the structural model, what changes would you make to the structure so that the organization would be unable to function.

Political Paradigm The political frame views organizations as 'alive and screaming' political arenas that house a complex variety of individuals and interest groups.

Political Paradigm Image: smoke-filled room battle Words: wheeling and dealing My way or no way.

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

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

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

Power Assumptions Goals and decisions emerge from ongoing processes of bargaining, negotiation, and jockeying for position among individuals and groups. Because of scarce resources and enduring differences, power and conflict are central features of organizational life."

Power Assumptions It’s all a game. Who ever has the most toys wins .

Political Paradigm "The political frame says that the pursuit of self-interest and power is the basic process in organizations. Organizational change is always political--it occurs when a particular individual or group is able to impose its agenda on the organization...and you need to be prepared for a conflict as a part of the process.

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

Human Side of Power Power Over power is scarce and limited giving orders punish non-compliance negative beliefs about people Power With power increases when shared orders are determined by the situation participatory problem-solving positive beliefs about people

Powerlessness “ In organizations, it is powerlessness, not power that corrupts. When people feel powerless, they behave in petty, territorial ways. The become rules-minded and they are over-controlling because they’re trying to grab hold of some little piece of the world that they do control and then over-manage it to death.” Kantor

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.

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.

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

Kritek: Masks of Manipulation Praise and Flattery Lying and Deception Helpfulness and Generosity Trickery and Secret Deals Attacking and Threatening

Masks of Manipulation Deliberate Stupidity Cuteness and Flirtatiousness Persevering Withholding

Mary Parker Follett “ the law of the situation” Both leaders and followers are guided by the law of the situation, guided by the larger purpose--the vision. When we are guided by the law of the situation, the need to give orders is reduced.

Follett: Dealing with Conflict Bring the conflict into the open denial is dsyfunctional Make agendas visible: don’t pretend you don’t have personal motives “ Lay your cards on the table” Listen to the issues and concerns of all parties.

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.

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.

Follett: Obstacles to Integration Lack of intelligence and inventiveness Unwillingness to take responsibility Enjoyment of domination “ Fight” addict 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

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

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

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

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

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

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

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 .

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

Chester Barnard The functions of the executive are to: articulate the mission and purpose establish the communication systems provide incentives to induce cooperation for organizational success.

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.

Incentives List all the things that motivate you at work:

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

Maslow’s Hierarchy of Needs Self-Actualization Belonging Love Safety Esteem Physiological

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.

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 other…There 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.

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)

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

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?

Mary Says: Even if it is true that people want to be told what to do--and I don’t think it is true but even if it is-- I don’t 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.

Mary Says: “We all have to learn to take our share of responsibility…and leaders should make us feel our responsibility, not take it from us.” (p. 214)

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.”

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

Cultural Paradigm The basic assumptions and beliefs shared by members of an organization that operate subconsciously. Culture affects how each member thinks, feels and acts. Leaders create culture and manage culture—it is the only thing of real importance that they do.

Cultural Paradigm: Assumptions What is most important is the meaning of what happens The meaning is determined by how people interpret what happens Much of what happens is ambiguous and uncertain, and undermines rational approaches

Cultural Paradigm: Assumptions When faced with uncertainty and ambiguity, people create symbols to reduce ambiguity and to resolve conflict

Cultural Paradigm “ Attempts to change organizations without understanding its culture—norms, beliefs, and values—are bound to fail. Reorganizations should not be prescribed as a cure for personality problems.” --Harold Seidman

Seidman: 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: 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

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.”

Seidman: Agency culture and personality “ Identical conduct by the secretary of the treasury would shake the financial community to its core." {pp. 166-167}

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

Cultural Paradigm Some myths we live by: · Authority must always equal responsibility · Planned organizational change · The objective, neutral expert · Managerial control · One best way

Cultural Paradigm Some rituals and ceremonies: presidential conventions performance appraisals award ceremonies committee meetings (with no outcomes expected) · management training programs

Your Culture: Exercise Take out a piece of Paper: When you first started working there, what was first story you heard?

Your Culture: Exercise List 3 words that describe Evergreen. Now imagine Evergreen 5 years from now, after it has initiated a successful culture change. Write 3 words to describe as it might exist 5 years from now after the culture change.

Your Culture: Exercise Think of your experiences at Evergreen in the past 6 months: What has surprised you?

Your Culture: Exercise # 2 Who tells the jokes in your organization? What do people call you--nicknames. Or the names they call your project or work unit? If you could change one thing, what would that be?

Humor If you don’t know who is telling the jokes, you need to get out more. What kind of humor: healing? Self-deprecating? Sarcastic? Hurtful?

Clues to Organizational Culture Passion Pictures Habits Humor Stories Surprises

Cultural Artifacts? GAO: Blue Book Schools:

Twelve Lessons for Leaders of Culture Transformations Winning minds, changing habits, touching hearts 1. Don’t control employees--involve them. 2. Model the behavior you want. 3. Make yourself visible 4. Make a clear break with the past. 5. Unleash--but harness— the pioneers. .

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 don’t tolerate resistance. 8. Sell success. 9. Communicate, communicate, communicate.

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

Working with Paradigms The assumptions you hold about an organization influences how you assess its performance, what you look at, and what you think needs to be changed.

Structural Frame Organizations should: Have clear lines of communication Have a specified chain of command Rules for all decisions Impersonal decision-making Authority should be assigned to a position Job descriptions should be specific and no one should do work outside of that description

From a structural paradigm: Teams would represent a problem in terms of clarity of roles, responsibility, and authority Collaboration across work units would be problematic if the chain of command was no longer clear Email is a problem because people can communicate to anyone without approval, clearance or following the chain of command Conflict represents poor communication or problems in the structural elements of the organization

From a structural paradigm: Change should be resisted if it upsets established operating procedures and routines Informal authority and power outside the structure are problems

Structural Frame Works best when you are dealing with a stable environment and routine work Works worst when you are dealing with a rapidly changing environment and non-routine work, where adaptability and flexibility are essential

Political Frame Organizations are seen in terms of political forces Awareness of who has power Who gets what? Who has what source of power? Who belongs to which coalition? What is the game? What are the rules?

From a Political Frame “The lifeblood of public administration is power.” Long. Power is the ability to get things done, so you need to look at your sources of powers, including your alliances. Conflict and coalition building are natural

The Political Frame Conflict seen as good Training in conflict and negotiation Strategic alliances are important No permanent enemies Use informal structure and power Downside: trust is difficult, decisions based on persuasive power rather than what’s best for the organization. Without structure, the political frame predominates

Machiavelli: Views of Power Disguise and deception are essential to rulers Always speak in terms of: mercy, faith, integrity, humanity, religion If the masses believe your appearance, the ruler can safely ignore them and pursue policies in the interest of the ruling class.

Bolman and Deal Artistry “ The leader as artist relies on images as well as memos, poetry as well as policy, reflection as well as command, and reframing as well as refitting.” p. 17

Exercise 8 5 4 9 1 What comes next?

Exercise Eight Five Four Nine One What comes next?

Organisational

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