Internal
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Outline on Factors
Affecting Orgl Structure
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External
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ORG STRUCTURE IS THE RESULT OF MANY FACTORS, SOME OF WHICH ARE PLANNED
& SOME OF WHICH ARE EMERGENT |
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The components & qualities of org structure do not arise randomly
in that they are affected by many factors such as: |
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- size |
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- technology |
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- the environment |
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ORG STRUCTURE SERVE THREE BASIC FUNCTIONS, INCLUDING PRODUCING OUTPUT,
REGULATING VARIATION, & REGULATING POWER |
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a. Org structures produce org outputs & achieve
org goals |
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b. Org structures minimize or regulate the influence
of
individual variations on the org |
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c. Org structures are settings in which regulate power:
power is exercised by determining which positions have power, the flow
of information, & the arena for org actions |
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Perrow, 1979, & Hage, 1980 show that bureaucracies
are designed for efficiency & reliability |
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Hall has shown that orgs vary widely from Weber's ideal
type of bureaucracy for many reasons |
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ORG STRUCTURE MAY BE UNDERSTOOD AS MECHANICAL, I.E. MORE
FORMALIZED & CENTRALIZED, OR ORGANIC, I.E. LESS FORMALIZED &
CENTRALIZED |
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Burns & Stalker, 1961, developed a model of multiple orgl
forms, including: |
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a. mechanical orgs, which are similar to Weber's
bureaucracy |
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b. organic orgs, which have: |
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i. a network structure of control
instead of a hierarchy |
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ii. a
continual adjustment &
redefinition of task instead of task specialization |
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iii. a
communication context
involving information & advice |
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Burns & Stalker see the orgl form as being determined by
the env |
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Burns & Stalker agree w/ Lawrence & Lorsch, 1967, in
that in the env, the tech employed by the org, & by competitors, is
the most important factor in determining orgl form |
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Hage, 1965, examines centralization, formalization, complexity,
& stratification & links these structural characteristics w/ outcome
variables such as productivity, innovation, efficiency, & morale, but
offers little in terms of why orgs developed a particular level of centralization,
etc. |
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For many orgl theorists, some factors that determine orgl structure
operate synergistically |
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CONTEXT IS THE INTERNAL ORG ENV, ORG NETWORK ENV, & THE
WIDER SOCIAL ENV
DESIGN IS THE EXTENT TO WHICH THE ORG IS PLANNED VS. TO THE
EXTENT TO WHICH IT EMERGES AUTONOMOUSLY |
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The TWO major categories of factors affecting structure are context
& design |
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An org usually has more control over design than context, though the
org can also influence context |
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These explanations of org structure must be considered as a series
of explanations that have varying influence based on the multiple factors
which are operating on an org |
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Thus the explanations of org structure must be considered in combination |
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Fligstein believes the org analyst should use a healthy, informed
eclecticism |
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Fligstein, 1985, examined multi divisional large corps org structure
was affected by strategic choice, member control & institutional
isomorphism |
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Tolbert, 1985, has combined the env & institutional perspectives
in his work on university administration |
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While we must look at the many factors that affect org structure, we
must also be aware that org structure itself has a significant
impact
on these same factors |
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a. Context is the situation in which the org is operating |
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Context can be impacted by the org, but never
totally controlled |
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Internal
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Outline on the
Contextual Factor of Technology
in Determining Orgl Structure
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External
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- Project: Technology & Orgl
Structure |
Link
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Most of the studies on size & tech & org structure were done
in the 60s & 70s |
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TECH IS OFTEN ORGANIZED AROUND A SMALL BATCH, LARGE BATCH, OR CONTINUOUS
PRODUCTION STRUCTURE |
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Woodward used a model similar to Blauner's analysis of
orgl technology & alienation which examined THREE types of technology,
including |
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a. small batch or unit production such as ship building
or aircraft production |
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b. large batch or mass production |
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c. continuous production |
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TECH AFFECTS THE LEVELS OF MGT, SPAN OF CONTROL, & RATIO OF
MGRS, SUPERVISORS, & WKRS |
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Woodward found that the type of tech affected THREE aspects of
management structure, including: |
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a. the number of levels of mgt |
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b. the span of control |
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c. the ratio of mgrs & supervisors & wkrs |
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Woodward found that in relation to the types of tech & coincident
mgt structure, success was determined by the fit btwn tech & structure |
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TECH RELATED ORG STRUCTURES INCLUDE LONG LINKED, MEDIATING, &
INTENSIVE |
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Thompson develops a tech typology that encompasses all orgs
w/ THREE types of tech, including: |
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a. long linked tech that involves a serial interdependence
of steps |
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Examples of long linked tech include assembly lines, & home construction |
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b. mediating tech which links clients or customers
who are interdependent |
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Examples of mediating tech include phone companies, banks, employment
agencies, & post offices |
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c. intensive tech uses techniques to achieve change
which is determined by feedback from an object or person |
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Examples of intensive tech include most work w/ humans such as is done
at hospitals, universities, construction work, & research institutes |
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ORGS IMPLEMENT STRUCTURES / TECH TO ATTAIN GOALS, MINIMIZE COORDINATION
COSTS, BE AUTONOMOUS, & STANDARDIZE OPS |
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Thompson does not examine the org structure of each type of tech, but
points out that orgs strive to attain FOUR strategic functions, including: |
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a. maximizing goal attainment under norms of rationality,
(as discussed by Parsons) |
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b. organizing groups to minimize coordination costs |
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c. making units conditionally autonomous, first
reciprocally, then sequentially |
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d. homogenizing to facilitate standardization,
in a hierarchical arrangement |
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Tech is more important in some orgs than in others |
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TYPES OF TECH INCLUDE OPERATIONS, MATERIALS, & KNOWLEDGE TECH |
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Hickson, Pugh & Pheysey, 1969, see orgs with THREE types
of technology including: |
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a. operations tech which encompasses the techniques used
in the work flow activities |
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b. materials tech which encompasses a highly sophisticated
technique which is applied to a simple material |
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c. knowledge tech which encompasses the varying complexity
of the knowledge system used in the work flow |
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Op tech will be a greater determinant of org structure than size in
work orgs |
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Management will be unaffected by a sophisticated op tech |
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AUTOMATION CREATES HIERARCHY, A WIDENED SPAN OF CONTROL, LESS WKRS,
MORE COMMO |
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Meters found that automated procedures in management
of state & local govt created FOUR orgl changes, including: |
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a. more hierarchy |
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b. a wider span of control for supervisors |
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c. fewer employee under higher supervisors |
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d. more communication responsibilities for lower level
employees |
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VARIOUS SEGMENTS OF ORGS HAVE DIFFERENT STRUCTURES & TECH;
THE DIV OF LABOR DETERMINES ROUTINIZATION;
TASK UNCERTAINTY CREATES PERSONAL CONTROL;
DIFFERENTIATION & FORMALIZATION ARE MORE A FUNCTION OF SIZE
THAN TECH |
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Hall, 1962 found that in many orgs, some segments have a different
structure from those of other segments |
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Hall found that some orgl segments are highly formalized & complex
while other may be informalized & complex, etc. |
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Argyris, 1972, criticized tech studies because most assumed
that tech must change before structure, but someone from w/in the org must
decide to implement a new tech |
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Glisson, 1978, found that in human service orgs, the structure
of the division of labor & procedures determined the degree of routinization,
& thus the nature of the service delivery |
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For Glisson, routinization as determined by the div of lab & procedures
reverses the argument that tech determines structure & instead we see
structure affecting tech |
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Van de Ven, et al, 1976, found that as task uncertainty increased,
mutual work adjustments through horizontal communications & group meetings
were used instead of hierarchical & impersonal forms of control |
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Increasing size resulted in an increase of impersonal coordination,
e.g. policies, work plans , etc. |
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Size is important for some structural qualities, while tech is important
for other aspect of structure |
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Blau & McKinley, 1979 found that when tasks were uniform,
sized affected structure complexity & task diversity |
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Non uniform tasks create a structure that is more professionalized |
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Marsh & Mannari, 1981, found that structural differentiation
& formalization were more a function of size than tech |
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Labor inputs, cybernetic complexity, costs & wages, differentiation
of mgt from ownership, span of control of the CEO & union recognition
were more related to tech than size |
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Dewar & Hage, 1978 found that size & tech were both
associated w/ complexity |
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Size was related to admin specialization |
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Tech is related to specialization of wkrs |
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Beyer & Trice, 1979, found that in non routine orgs, personnel
specialization generates horizontal differentiation |
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The suggest that a search for a single or primary cause of complexity
is doomed to failure |
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There should be a focus on the strategic choices that decision makers
select |
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Daft & Bradshaw, 1980, found that in universities growth
of admin was related to size, while growth in Dept's was related to tech |
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Env factors, such as pressure from the community or govt contribute
to differentiation |
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Decision making also has an impact |
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Decisions may be considered on two levels |
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The formal decision to add a Dept or Program |
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The informal decision of the idea champion |
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Pfeffer recognized that decisions in orgs are highly political
& that many ideas never see the light of day |
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Another internal environment factor is the financial resources of the
org which affect decisions about structural change |
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Internal
Links
Top
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Outline on the Organizational
Environment & Organizational Structure
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External
Links
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- Project: The Orgl Env &
Orgl Structure |
Link
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AN ORGL ENV IS ALL THE PHENOMENA THAT ARE EXTERNAL TO & POTENTIALLY
OR ACTUALLY INFLUENCE THE ORG |
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Analysts recognize NINE factors in the env that impact org structure |
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1. Physical environments may affect orgl
struc |
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2. Social environments may affect
orgl struc |
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3. The env is often seen as a
constraint
on an org, affecting size, tech, & structure |
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4. The socioeconomic infrastructure is an
especially important influence on orgl structure |
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5. Demographic factors, including, race,
ethnicity, population, age often influence orgl structure |
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6. Institutional values surrounding the
org are important & may affect orgl struc |
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7. Social values are usually brought into
the org from the outside & may affect orgl struc |
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8. Affability ( friendliness ) of the env
may affect orgl struc |
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9. Competition may affect orgl struc |
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KEY ASPECTS OF THE ENV ARE THE PHYS ENV, SOC ENV,
COMPETITORS,
REGULATORS,
OPPORTUNITIES,
& THREATS |
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Perrow notes that the env includes physical env & social
env & is distinguished from the org itself by (social) boundaries |
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Perrow holds that there are SIX key aspects of the env that orgs must
attend to:
a. Physical env provides inputs
b. Social env provides input & places for outputs
c. Competitors |
d. Regulators
e. Opportunities
f. Threats |
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Decision makers must make the structure congruent w/ demands
placed on it from the env |
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Meyer found that admin complexity is caused by env complexity:
e.g. if schools receive federal funds, admin becomes more complex because
of the many reporting requirements |
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LARGER ENVL FORCES IN THE FORM OF OTHER ORGS' IMPACTS INCLUDE:
1. AFFABILITY
2. HOSTILITY
/ COMPETITION
3. ANTI RATIONAL
/ COMPETITIVE STRATEGIES
4. GOVT POLICY
5. GLOBALIZATION |
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1. THE AFFABILITY OF THE ENV MAY HAVE AS MUCH TO TO
W/ ORGL SUCCESS AS THEIR COMPETITIVE STRATEGY |
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Khandwalla, 1972 found that friendly env is supportive, providing
funds & value support |
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A hostile env is where the underpinning of the org are threatened,
e.g. nuke industry in the wake of Three Mile Island |
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Colleges & universities had a friendly env in the 60s & early
70s & money poured in because of the general belief that ed was the
key to social & international problems |
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This env for higher ed has moved to one of neutrality, or even hostility,
because of the failure to achieve the lofty goals of ed creating social
cohesion |
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Thus arose the crisis in ed in the 80s that is still rippling through
the lower ed to the university level |
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2. ENVL HOSTILITY / COMPETITION MAY OVERWHELM THE BEST
ORG / ALL ORGS |
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Khandwalla suggest that orgs structure differently based on whether
they are in a friendly or hostile env |
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The environmental monitoring is carried out by differentiated
personnel who are then integrated via committees, ad hoc coordinating groups |
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If the env turns hostile, the org will "tighten up" by centralizing
& standardizing it operations |
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Pfeffer & Leblebici, 1973, found that competition increased
control
& coordination in the org structure |
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W/ less competition, there are more changes in the production, &
number of products |
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Less competition provides slack: so that orgs can do more than
their routine activities |
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Dublick, 1978, found that newspapers' orgl structure in a competitive
env more closely reflected the complexity of the community than
newspapers in less competitive situations |
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Dublick found that hospitals increase services in competitive situations,
i.e. reacted to their env |
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3. ANTI RATIONAL / COMPETITIVE STRATEGIES MAY SUCCEED
IN ENVS WHERE PRICE IS NOT A FACTOR, OR WHERE THE GOVT REGULATED THE MKT |
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Hall believes that hosp's increase of services as a response to competition
runs counter to economic rationality, raising the costs of medical services |
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But increasing services, esp hi end services will increase a wealthy
clientele, thereby helping the hospital compete |
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Meyer & Brown, 1977, found that the env in which a govt
org originates, & subsequent envl shifts impacted degree
of formalization, i.e. hierarchy & delegation of decisions |
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Brown & Schneck, 1979, found that foreign ownership caused
less innovation, confirming the Aston groups findings in 73 & 74 |
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4. GOVT POLICY CAN BE MORE INFLUENTIAL ON ORGL SUCCESS
THAN COMPETITIVE FACTORS |
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Brown & Schneck, 1979, found that govt policy is an important
environmental factors for orgs |
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National policy in health care, banking, stock market regulation, etc.
have a direct impact on org structure |
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Freeman, 1979, found the structure of schools were strongly influence
by govt policy |
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Fed supported programs were maintained even as the rest of local districts
shifted due to other envl factors |
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Enrollment declines could lead to a reduction in the number of teachers,
bu not of fed funded or mandated program personnel, e.g. special ed, assessment
coordinators, etc. |
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5. GLOBALIZATION HIGHLIGHTS THE FACT THAT ORGL ENVS
VARY WIDELY AROUND THE WORLD |
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Link
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See the Table on the Comparison of
Am & Japanese Firms |
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The Table on the Comparison of Am & Japanese Firms shows that there
are significant structural differences btwn their firms which have roots
in the mgt - employee relations embedded in the two cultures |
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They called 1950's American, militaristic (authoritarian, hierarchical,
etc.) style management, Theory X |
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They called 1970's American, Human Resources style management,
Theory
Y |
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They called 1970's Japanese, employee participation style management,
Theory Y |
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Ouchi found that Japanese firms w/ operations in the US resembled the
Japanese model more than the American model, suggesting the importance
of the country of origin, but still were influenced by the new country |
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ENVL SCANNING IS THE PROCESS BY WHICH ORGS PERCEIVE THEIR
ENV & CHOOSE WHICH FACTORS TO RESPOND TO & WHICH TO IGNORE |
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The nature of the env is perceived by org decision makers
& boundary spanners in a function which is often called envl scanning |
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The perception of the env is then acted upon in the org through decision
making |
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Leifer & Huber, 1977, found that an org's structure had a greater
impact on the behavior of boundary spanners than did the env |
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The activity of boundary spanners influence the org's perception
of the env & affects its structure |
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The env is not "out there" but rather is interpreted by
people in the org who are influence by their position in the org which
then affects the org |
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Schollhamer, 1971 believes that multinational firms are affected by
the env of their country of origin |
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Table
on the Comparison of American & Japanese firms: Ouchi & Jaeger;
Ouchi & Johnson, 1978
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American |
Japanese |
Short term employment |
Lifetime employment |
individual decision making |
Consensual decision making |
Individual responsibility |
Collective responsibility |
Rapid evaluation & promotion |
Slow evaluation & promotion |
Explicit, formalized control |
Implicit, informal control |
Specialized career path |
Nonspecialized career path |
Segmented concern |
Holistic concern |
The Table on the Comparison of Am & Japanese Firms
shows that there are significant structural differences btwn their firms
which have roots in the mgt - employee relations embedded in the two cultures |
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Internal
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Top
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Outline on Perrow:
Organizational Control of their Environment / Society
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External
Links
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An organizational environment is all the phenomena that are
external to & potentially or actually influence the org |
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KEY ASPECTS OF THE ENV ARE THE PHYS ENV, SOC ENV, COMPETITORS, REGULATORS,
OPPORTUNITIES, & THREATS |
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Perrow notes that the env includes physical env & social env &
is distinguished from the org itself by (social) boundaries |
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Perrow holds that there are SIX key aspects of the Env that orgs must
attend to including the:
a. physical env, which provides inputs
b. social env, which provides input & places for outputs
c. competitors |
d. regulators
e. opportunities
f. threats |
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PERROW / THE INSTITL SCHOOL HOLDS THAT ORGS:
1. DEFINE,
SHAPE, CONTROL & CREATE THEIR ENV
2. CHANGE
/ DISPLACE GOALS TO FIT ENV
3. STIFLE
SELF REALIZATION
4. ARE TOOLS
OF THE ELITE / UPPER CLASS |
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In most cases we look primarily at how the env affects the org, but
Perrow also note that orgs also influence their env |
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For Perrow, the relationship btwn an org & its env is dialectic,
or mutually interdependent |
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In an analysis of orgs effects on society, we often fail to see that
society
adapts to orgs |
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The view that orgs shape society directs us to study of powerful orgs
& to public data gathered by govt |
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The institutional school & most org theory (esp mgt / bus
theory) does not link societal level factors & organizations |
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The institutional school sees orgs. as adapting to env & their
internal power brokers, but does not see society as adapting to orgs |
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1. ORGS DEFINE, SHAPE, CONTROL, &
CREATE
THEIR ENV |
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For Perrow, to see orgs as adaptive to a turbulent, dynamic
env is to indulge in fantasy |
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The env of most powerful orgs is well controlled by them, quite
stable, & made of other orgs with similar interests |
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Perrow speculates that the logic of the relationship btwn orgs &
their env is turned around because of the the heritage of the functionalist
perspective which focuses on functions & not dysfunctions, &
stability & not change |
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Peaceful tribes who fought off a warring tribe then the peaceful tribe
had warriors who needed to make war to win honor |
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Schumpeter found that those with power make sure that their
skills are important for the community by shaping the community to accept/need
those skills |
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Morris Janowitz’s view of the military fits this the org shaping
the env model |
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Researchers have found that large corps like GM shape their env |
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The examples of orgs controlling their envs provide reasons to question
a goal displacement process that is often posited as a fundamental orgl
characteristic |
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2. ORGS CHANGE OR DISPLACE THEIR GOALS TO MATCH THEIR
ENV |
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The trend toward goal displacement is a hazard that orgs must
strive to avoid |
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Some orgs like GM & the AMA understand the hazard of goal displacement
& avoid it, but many theorist note that the military does not |
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Contenders for top leadership positions in our large voluntary &
econ orgs are those who share dominant perspectives of our elites |
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It is from muckrakers, sociologists, etc. that we learn about
the ways in which orgs shape our env, not from the org specialists |
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3. ORG'S STIFLE SELF REALIZATION, THEY EXHIBIT GOAL
DISPLACEMENT,
& THEY CONTROL THEIR ENV |
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Perrow argues that we have THREE things to fear from orgs |
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a. Earlier Perrow argued we have more to fear from orgs
than their negative effects upon spontaneity & self realization |
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b. And we have more to fear than goal displacement |
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c. What we have to fear is organizations controlling
their environments |
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4. ORGS ARE A TOOL OF THE POWERFUL, I.E. THE UPPER
CLASS OR ELITES |
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The view that orgs are a tool of the powerful is a combination of the
neo Weberian view of structure accompanied by the insights of the institutional
school |
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The expose tradition has been instrumental in documenting the
dangers arising from search for stability & growth & the resistance
to character restructuring by orgs |
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The org school's view of orgl env contributions of the institutional
school in FOUR ways |
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First: There is a variety of orgs that the technical school
has not recognized |
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Second: The neo Weberians must realize that orgs
do develop their own inner logic that is not the result of those
who control them & that those who control them come to accept that
logic |
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Third: The acceptance of the env as a shaper of orgs &
as shaped by orgs |
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Lastly: orgs. are tools in the hands of their masters
& the masters have an agenda, are shaped by the environment and the
org |
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Internal
Links
Top
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Outline on the National
Cultural Effects on Organizational Structure
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External
Links
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NATIONAL CULTURAL FACTORS ARE NOW SEEN AS IMPORTANT FACTORS IN EXPLAINING
ORGL STRUCTURE |
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National cultural factors impact an org's culture |
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National cultural factors are looked at w/ the realization that other
factors such as size, tech, env conditions, etc. all interact to impact
org structure |
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Ouchi, et al, 1978, compared American & Japanese management
styles |
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Lincoln, Olson, & Hanada, 1978, found that the degree of
presence of Japanese nationals or Japanese Americans was related to the
degree of specialization but was not related to centralization, formalization,
& vertical differentiation |
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Lincoln, Olson, & Hanada's work supported the previous research
that the host country's characteristics are more important than are those
of the country of origin |
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Lincoln, et al, support Meyer & Rowan, 1977, that org structure
operates as a myth which acts as a cultural center & therefore
firms should adopt a structure which conforms to this myth, ideology, &
norms |
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Lincoln, et al also recognize the impact of a tech imperative |
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Birnbaum & Wong, 1985 studied multinational banks in Hong
Kong & found support for a "culture free" determination of structure |
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CENTRALIZATION, VERT & HORZ DIFFERENTIATION, & FORMALIZATION
WERE NOT RELATED TO THE HOST CULTURES |
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Marsh & Mannari, 1980 found that structures in the West
have the same form in Japan, rather than varying w/ culture |
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Maurice, Sorge, & Warner, 1980 studied manufacturing in
W. Europe & found that ed, training, recruitment, & promotion processes
are strongly influenced by the host national culture |
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Hall found that in China, orgs have western structures w/ an
overlay of the Communist Party structure |
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Birnbaum & Wong, 1985, suggest that cultural impacts on
orgl structure vary based on host acceptability / compatibility w/ the
foreign structure |
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ORGS ARE AFFECTED BY THE CULTURE & ENV IN WHICH THEY ARE LOCATED,
JUST AS THEY ARE AFFECTED BY SIZE & TECH FACTORS |
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Cultural & envl factors interact w/ no single factor dominating |
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Van Houten, 1987, found that orgs cannot be understood out of
their historical context |
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Lincoln, et al, 1986, believe that national cultural effects
are additive in that they are added to the structural variations introduced
by tech, size, & market constraints, but culture may override
these factors in some situations |
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Hamilton & Biggart, 1988, demonstrate the importance of
national
culture for org structure |
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Hamilton & Biggart, 1988, hold that cultural factors &
market factors explain org growth, but than authority structures &
legitimation strategies best explain org structure |
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Hall & Xu disagree w/ Hamilton & Biggart, finding that
family & Confucian values contribute to crucial differences in org
structure |
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Schreyogg, 1980; Schneider, 1989, found that Org Design
overtly affects org structure, but is itself affected by national culture |
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American, British, Japanese, Chinese, etc. orgs all have their own
techniques of formulating their strategies |
|
Internal
Links
Top
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Outline on Orgl
Structure & Strategic Decisions
|
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External
Links
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ORGL STRUCTURE SHOULD BE DESIGNED TO FIT THE ORG'S STRATEGY |
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In 1962, Chandler wrote a classic on strategy & design |
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Chandler found that for optimal org functioning, orgl structure should
match orgl strategy |
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Chandler studied American powerhouse firms such as Sears & Roebuck
& GM |
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GM established the multi divisional form w/ Chevrolet, Pontiac, etc.
as a result of strategic choices |
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ORG POLITICS IMPACT ORG STRUCTURE |
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Child, 1972, following Chandler, noted that org politics determine:
a. structural form,
b. manipulation of the env,
c. & choice of relevant performance standards that
are selected by orgs |
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The internal politics are dependent upon existing power arrangements
in an org |
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Thus for Child, as for Chandler, strategy begets structure |
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ORGL STRAT & STRUCTURE ARE THE RESULT OF DECISIONS BASED ON
A FORM OF LIMITED / BOUNDED RATIONALITY |
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In Simon's classic work, 1957, strategic choices are made on
the basis of "bounded rationality" |
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Bounded rationality denotes that decisions are not necessarily
the optimal decisions, rather they are those that appear to be optimal
as a consequence of decisions made through the political process w/in an
org |
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Katz & Kahn, 1966, develop the concept of "equifinality"
which is the presence of several means available to reach a given end |
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Orgs are faced w/ both equifinality of means to ends & the presence
of multiple ends |
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Thus an org is faced w/ multiple env pressures & must choose one
path among many options to one of many objectives |
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Miles, Snow & Pfeffer, 1974, noted that size & tech
approaches to understanding structure are wanting |
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Orgs are faced w/ env's differing in rates of change & degree of
uncertainty |
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Orgs are affected by specific env elements |
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POWER IS OFTEN IN THE HANDS OF THOSE PERFORMING NON ROUTINE TASKS,
& THOSE W/IN THE POWER STRUCTURE THE ORG |
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Pfeffer & Salancik, 1978, emphasize that the political context
of the decision making process & its relationship to structure are
the result of persons carrying out non routine tasks who are likely to
have power because of their expertise |
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Those doing routine work do not have this power source |
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The person w/ expertise can claim & receive more discretion, or
decentralization on a broader basis as something won from a position of
power,
rather than something delegated from above |
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Ranson, Hinings, & Greenwood, 1980, note that the power holders
in orgs decide what are issues & what are not issues |
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Thus strategic decisions are based on power arrangements |
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Strategic choices take place w/in contexts of the org env |
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|
US FIRMS USE THE MULTI DIVISIONAL, CORP FORM OFTEN RULED BY THE
DOMINANT COALITION |
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Palmer, 1987, found that most American firms use the multi divisional,
corporate form |
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Industrial diversity & geographical dispersion make the
use of the multi divisional form more likely |
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Orgs dominated by banks or families were less diverse &
had less of a multi divisional form |
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Technology use is usually a strategic decision made by the dominant
coalition |
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See Also: Thompson's, 1967, term dominant coalition which is
composed of those who make the strategic decisions |
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See Also: The Marxist Perspective on Org Structure |
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Internal
Links
Top
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Outline on the Dominant
Coalition
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External
Links
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THE DOMINANT COALITION IS THE GROUP THAT HOLDS THE POWER & MAKES
THE STRATEGIC DECISIONS |
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Thompson's, 1967, coined the term: the dominant coalition |
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The dominant coalition is composed of those who make the strategic
decisions |
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Pennings & Goodman, 1977, note that the dominant coalition
comprises a direct & indirect representation of horizontal constituencies,
subunits, & vertical constituencies w/ different & competing expectations |
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The concept of the dominant coalition emphasizes that orgs are not
representative democracies |
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The dominant coalition is the outcome of power held by the various
parties in the coalition |
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|
Some members are more powerful among the horizontal or vertical constituencies
& some are more powerful than the various other constituencies |
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The dominant coalition is the power center in the org which makes strategic
choices w/ regard to org structure, processes, personnel, goals, etc. |
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The dominant coalition: |
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|
- in small orgs, is the owner or CEO |
|
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- does not exist in some orgs; no one has significant
power (very rare) |
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- in most large orgs is composed of the major stock holders,
the top management, & maybe, powerful Board of Directors members |
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Decision makers in the dominant coalition select those areas
of the env w/ which they will be concerned |
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The selection of areas of concern is done w/in a political framework
in which members shift allegiances & power allocations changes |
|
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W/ selective perception of the env, strategies are selected for dealing
w/ the env |
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Internal
Links
Top
|
Outline on the Marxist
Perspective on Orgl Structure
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|
External
Links
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THE MARXISTS ARGUE THAT THE DOMINANT COALITION MUST DIRECTLY FACE
THE WORKER CONTROL ISSUE IN ITS ORG DESIGN |
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|
Thus there are industry wide effects on the forms of worker
control & internal labor market strategies ( Baran, et
al, 1988; Bills, 1987 ) |
|
|
Dahrendorf demonstrates that the major conflicts in society
today occur w/in orgs as org struggle, & less as wars, revolutions,
etc. |
|
|
Studies of interinstitutional relationships & the interpenetration
of econ & politics provide an alternative view of orgs / management
/ business |
|
|
The analysis of interinstitutional relationships demonstrates that
Western state capitalism has not developed into a benign entity seeking
the betterment of humanity |
|
|
Exploitation & concentration of wealth have developed contemporary
methodologies that are less obtrusive & more difficult to oppose than
the methodologies of the pure capitalist / Robber Barons era of the Industrial
Revolution |
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|
FOR CONTEMPORARY MARXISTS THE CONFLICT BTWN CAPITALISTS & WKRS
IS OVER CONTROL OF THE WORKPLACE |
|
|
Goldman & Van Houton, 1977, review several landmark Marxist
analyses of org structure |
|
|
The research of Goldman & Van Houton shows that managerial thinking,
& thus org structure, is attuned to the larger social, political, economic
setting, internal administration, & that that thinking is overlaid
w/ the struggle btwn workers & owners / managers |
|
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Marglin, 1973, demonstrated how hierarchy w/in orgs developed
during the Industrial Revolution |
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|
MGT STRATEGIES TO CONTROL THE WORKPLACE INCLUDE JOB LADDERS; DESKILLING;
PERSONAL, MACHINE, BUREAUCRATIC / RULE BASED CONTROL; SCIENTIFIC MGT; TECHL
CONTROL, ETC. |
|
|
Stone, 1973, discussed the development of job ladders in the
late 19th C steel industry |
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|
Job ladders are the result of the desire for org control as from the
development of technology |
|
|
Braverman, 1974, demonstrates that the primary task in orgs
today is to deskill the worker, & this imperative is the result of
the capitalist imperative of profits & exploitation |
|
|
Machinery & bureaucratic regulations in industry derive from management
desire to exert control over labor market characteristics & the attitudes
of workers |
|
|
Edwards, 1975, demonstrates that org conflict is shaped by class
conflict & that control w/in orgs is designed to control of class conflict |
|
|
Machinery & bureaucratic regs in industry derive from mgt desire
to exert control over labor mkt characteristics & the attitudes of
workers |
|
|
Clawson, 1980, traced the spread of Taylor's, 1911, principles
of "scientific management" & found that the result of more control
by capital & less control by labor |
|
|
Clawson examined how craft work was deskilled as factory work &
became more & more subdivided into small, routine tasks |
|
|
Clawson argues that deskilling has continued to date, w/ less control
for workers |
|
|
Though one must note that in some orgs, & industries, professionalization,
i.e. skilling of workers is the norm |
|
|
Perrow, 1983 & Sable, 1982, examine how the intro
of technology & new forms of org are at least in part attempts to control
workers |
|
|
FOR CRITICS, THE MARXISTS' EVIDENCE IS WEAK & MGT CANNOT CONTROL
WKRS AS MUCH AS THE MARXISTS IMPLY |
|
|
Hall critiques the Marxist economic framework on TWO counts |
|
|
a. Hall believes the evidence of the Marxist org theorists
is weak |
|
|
Form, 1980, Spenner, 1979, 1980, & Attewell,
1987, show that a great deal of work has not been deskilled |
|
|
Response: But it is not the position of either the Marxists,
nor the critique of the Marxists that all workers are being skilled or
professionalized |
|
|
Both sides would recognize that both of these processes exist |
|
|
The question is, which process improves society, which process is more
common ( & where & why ), & what are the factors that impact
deskilling / professionalization? |
|
|
b. Hall believes that the Marxists fear total control
by management: rationality, i.e. capitalist rationality is bounded
& problematic. It is unlikely that management will control work
perfectly. Edwards himself notes that workers will always struggle
against this control |
|
|
Response: While this is true, the question remains that
in particular historical eras, under particular societal & org structures
workers vs. management / owners succeed or fail in their competition w/
each other. The point of the Marxist analysis is that the historic
struggle btwn workers & management /owners is a foundational aspect
of contemporary society & org analysis which is summarily ignored in
much org literature |
|
|
Hall recognizes that worker control must be considered as a
component of org design & that mgt does have interests that are different
from those of workers |
|
|
Hall agrees w/ Baron, et al, 1988, that monocausal arguments are misleading
& inadequate |
|
Internal
Links
Top
|
Outline on the Institutionalization
of Organizational Structure: Institutional Isomorphism
|
|
External
Links
|
|
- Project: Institl Isomorphism |
Link
|
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INSTITUTIONAL ISOMORPHISM IS THE TENDENCIES FOR ORGS TO COPY OR
'BOILER PLATE' EACH OTHER W/ REGARDS TO STRUCTURE, PROCESS, & MORE |
|
|
DiMaggio & Powell, 1983, developed the concept of institutional
isomorphism |
|
|
Recall that institutions are groups of orgs |
|
Link
|
Institutional isomorphism is the process whereby organizations
acquire sameness (homogeneity) in such qualities as org structure, strategy,
personnel, operational tactics, & even appearance, etc. |
|
|
DiMaggio & Powell argue that institutional isomorphism is now the
dominant
reason why orgs assume the forms that they have |
|
|
There is a tension btwn institutional isomorphism & rationalization,
as conceived by Weber |
|
|
Weber demonstrated how rationalization was an 'iron cage' pushing
orgs toward bureaucratization |
|
|
Rationalization & bureaucratization in the 19th C occurred in a
contextof
a capitalist, mkt econ in which every org had to become as efficient
as possible in order to survive & there were few large, dominating
institutions |
|
|
DiMaggio & Powell believe that major goal changes altered society
so that an alt explanation to bur is needed |
|
|
Thus orgs such as fast food restaurants are all the same both because
of:: |
|
|
- rationalization, which holds that one particular model does
work better than others |
|
|
- institutional isomorphism, which holds that fast food restaurants
are alike because customers expect it, suppliers are set up to delivery
frozen meat in large quantities, etc. |
|
|
ORGS EXIST IN FIELDS, I.E. IN ENVIRONMENTS & GROUPS OF SIMILAR
ORGS; ORGS ARE 'HERD ANIMALS' |
|
|
Org design is not totally a rational process based on org goals,
but is also one of both external & internal pressure which lead orgs
in a field to resemble each other |
|
|
Org design, strategic choices, etc. are seen as coming from the institutional
order in which an org is embedded |
|
|
But the social env has changed in that orgs now exist in "fields"
or w/in other, similar orgs |
|
|
An orgl field is an aggregate constituted by an area of institutional
life: key suppliers, resource & product consumers, regulatory agencies,
orgs that produce similar outputs |
|
|
An orgl field includes those orgs that in the aggregate constitute
a recognized area of institl life |
|
|
An orgl field includes competing firms, grps, networks, network sets,
interorganizational relations (IORs), i.e. to the totality of relevant
actors |
|
|
THE FORCES WHICH CREATE ORGL FIELDS ARE SOCIAL COERCION, MIMICRY,
NORMATIVE PRESSURE |
|
|
There are THREE aspects of how an orgl field combines analyses of competing
firms & orgl networks |
|
Link
|
a. Coercive forces w/in the org env such as govt regs,
cultural expectations, institutional rules, etc. demonstrates the existence
of the orgl field |
|
|
Meyer & Rowan, 1977, suggest that orgs take forms that are
institutionalized & legitimized by the state |
|
Link
|
b. Organizational mimicry occurs when an org faces uncertainty,
& they look to how other orgs face this uncertainty & may copy
its solution, demonstrating the existence of the orgl field |
|
|
Orgs establish intelligence departments to spy on competitors,
suppliers, i.e. the entire org field & env |
|
|
Prokesh, 1985, says "understanding your competitor's positions
& how they might evolve is the essence of the strategic game" |
|
|
Mimicry can be seen in the strategy which embraces the idea that understanding
your competitors positions & how they might evolve is critical for
success |
|
Link
|
c. Normative pressures occur when the workforce, especially
mgt, puts pressure on the org, from the inside, to conform to structure,
processes, strategy, etc. because that is the way that the workforce has
learned to structure, perform, even think, etc., demonstrating the existence
of the orgl field |
|
|
The Table: Tech & Instit Env w/
Illustrative Orgs shows that orgs w/in a particular institutional field
will have similar responses to a particular technological field |
|
Examples of Institutional
Isomorphism
Public universities
Department stores: Walmart, K Mart, Target, etc.
Football teams
Motor vehicle bureaus
Fast Food Restaurants
Car dealers
Hospitals
|
Examples of Coercive
forces
Almost any Govt Regs make orgs look & act the same: health
regs, safety regs, etc.
New Education bill of 2002 will mandate particular types of testing
in all states,
but the Fed Govt is under constant attack because
states want room to be independent
Thus the Fed govt is criticized for trampling states rights, being
to controlling, etc. & also for not doing enough, taking the lead,
etc.
Orgs also have rules that are the result of self governance: SAE:
Standards of Am Engineering
SACS: Southern Assoc. of Colleges
GAAP: Generally Accepted Accounting Practices
For orgs in these fields, these are frequently more powerful than any
govt regs
|
Examples of Orgl
Mimicry
Rowan, 1982, demonstrates that public schools add & subtract positions
to come into isomorphism w/ prevailing norms, values, & tech lore in
their env
DiMaggio & Powell show that orgs use a small number of consulting
firms which "like Johnny Appleseed, spread a few orgl models throughout
the land"
Japan consciously modeled its civil society after Americas
Am firms have adopted the Japanese innovation of Quality Circles
|
Examples of Normative
Pressures on Orgs
Any common education, training, etc. that workers receive will homogenize
the workers, who will then try to homogenize the orgs in which they work
Professional schools are especially homogenous:
few power line schools
few airline schools: most pilots in the major airlines come from
the military
Nursing schools, Doctors schools, police academies, etc.
Workers follow particular career ladders that give them similar experience,
training, culture, etc.
|
The Table: Tech
& Instit Env w/ Illustrative Orgs shows that orgs w/in a particular
institutional field will have similar responses to a particular technological
field
|
|