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Organizational Theory

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Title: Organizational Theory


1
Organizational Theory
  • Winter 2003
  • Gail Johnson

2
Organization
  • Greek Organon
  • meaning a tool or instrument.
  • So, organizations are tools or instruments to
    meet goals, objectives, to carry out tasks.

3
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

4
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.

5
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

6
Theories as Frames
  • Frames or Windows
  • filter
  • order the world
  • Structural Frame
  • Human Resource Frame
  • Political Frame
  • Cultural
  • Systems

7
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.

8
Structural Paradigm
  • Image A machine
  • Pyramid
  • Words Efficient
  • Impersonal
  • Goal-driven
  • Phrase The One Best Way

9
Structural Paradigm
  • Max Weber
  • Structure strives to achieve
  • calculability of rational results,
  • precision, stability, discipline, and
  • reliability.

10
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.

11
Structural Paradigm
  • Control
  • Control
  • Control

12
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

13
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)

14
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.

15
Which is True?
  • Rules promote fairness and accountability in the
    conduct of public business.
  • Rules are also the enemy of progress and
    dispatch.

16
Human Relations Frame
  • Image Family
  • Words Caring, Nurturing, Supportive
  • Spirit
  • Concepts motivation, empowerment,
    development, communication

17
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.

18
Human Relations
  • Chester Barnard
  • The key limiting factor to organizational
    success is in getting people to cooperate in
    accomplishing the organization's purpose.

19
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.

20
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

21
Maslows Hierarchy of Needs
Self-Actualization
Esteem
Belonging Love
Safety
Physiological
22
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.

23
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.

24
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)

25
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

26
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?

27
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.

28
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.

29
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.

30
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.

31
Political Paradigm
  • Image smoke-filled room
  • battle
  • Words wheeling and dealing
  • My way or no way.

32
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

33
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. "

34
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."

35
Power Assumptions
  • Its all a game.
  • Who ever has the most toys wins.

36
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

37
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

38
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 theyre trying to grab hold of some
    little piece of the world that they do control
    and then over-manage it to death. Kantor

39
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.

40
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.

41
Ways to handle conflict
  • Avoidance--denial moose on the table
  • Compromise deals, temporary
  • Competition win/lose
  • Accommodation giving way, submission
  • Collaboration win/win, integrative

42
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.

43
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.

44
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.

45
Obstacles to Integration
  • Lack of intelligence and inventiveness
  • Unwillingness to take responsibility
  • Enjoyment of domination
  • Fight addict

46
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

47
Kritek Masks of Manipulation
  • Praise and Flattery
  • Lying and Deception
  • Helpfulness and Generosity
  • Trickery and Secret Deals
  • Attacking and Threatening

48
Masks of Manipulation
  • Deliberate Stupidity
  • Cuteness and Flirtatiousness
  • Persevering
  • Withholding

49
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

50
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

51
Sources of Power
  • Authority
  • Expertise
  • Control of Resources
  • Control of Process
  • Control of decision processes
  • Information
  • Personal
  • Associational
  • Coercive

52
Exercise
  • Who has power in your organization?
  • What are your sources of power?

53
Cultural Paradigm
  • A pattern of basic assumptions, invented,
    discovered, or developed by a given groups as the
    correct way to perceived, think and feel

54
Cultural Paradigm
  • Words norms, values
  • The way it is done here
  • We dont do that
  • our way.
  • Image village, anthropologist

55
Cultural ParadigmAssumptions
  • 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

56
Clues to Organizational Culture
  • Passion
  • Pictures
  • Habits
  • Humor
  • Stories
  • Surprises

57
Seidman Agency culture and personality
  • Attempts to change organizations without
    understanding its culturenorms, beliefs, and
    valuesare bound to fail.
  • Reorganizations should not be prescribed as a
    cure for personality problems.

58
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.

59
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

60
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.

61
Seidman Agency culture and personality
  • Identical conduct by the secretary of the
    treasury would shake the financial community to
    its core." pp. 166-167

62
Cultural Paradigm
  • Myths
  • provide explanations
  • maintain group cohesion
  • anchor the present in the past

63
Cultural Paradigm
  • Some myths we live by
  • Authority must always equal responsibility
  • Planned organizational change
  • The objective, neutral expert
  • Managerial control
  • One best way

64
Cultural Paradigm
  • Some rituals and ceremonies
  • presidential conventions
  • performance appraisals
  • award ceremonies
  • committee meetings (with no outcomes expected)
  • management training programs

65
Twelve Lessons for Leaders of Culture
Transformations
  • Winning minds, changing habits, touching hearts
  • 1. Dont 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.
  • .

66
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.

67
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

68
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

69
Systems Paradigm
  • What endures is process
  • dynamic
  • adaptive
  • creative
  • Leader maintains focus, guiding principles, and
    vision.

70
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)

71
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.

72
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.

73
Environment
Goals Culture
Behaviors Processes Technology Structure
Inputs
Outputs
Environment
74
Open Systems
  • Inputs
  • Outputs
  • Technology
  • Environment
  • Goals and strategies
  • Behavior and processes
  • Culture
  • Human resources
  • Structure

75
GAO
  • Inputs People and money some technology
    knowledge
  • Outputs reports and testimony
  • Technology brains, analytic thought,
    rational model, computers, printing
  • Environment political

76
GAO
  • Goals and
  • Strategies vision statement but no
    strategic plan to get there.
  • Behavior and
  • processes command and control, accounting
    model

77
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.

78
Colleges/Universities
  • Inputs?
  • Outputs?
  • Technology?
  • Goals and Strategies?
  • Behavior and Processes?
  • Culture?
  • Human Resources?
  • Structure?

79
Application Senges 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

80
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

81
Wheatley
  • Wheatley asks Why are we afraid of what happens
    if our boat gets rocked?
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