Leadership in complex organizations

This paper asks how complexity theory informs the role of leadership in organizations. Complexity theory is a science of complexly interacting systems; it explores the nature of interaction and adaptation in such systems and how they influence such things as emergence, innovation, and fitness. We argue that complexity theory focuses leadership efforts on behaviors that enable organizational effectiveness, as opposed to determining or guiding effectiveness. Complexity science broadens conceptualizations of leadership from perspectives that are heavily invested in psychology and social psychology (e.g., human relations models) to include processes for managing dynamic systems and interconnectivity. We develop a definition of organizational complexity and apply it to leadership science, discuss strategies for enabling complexity and effectiveness, and delve into the relationship between complexity theory and other currently important leadership theories. The paper concludes with a discussion of possible implications for research strategies in the social sciences.     

Adaptive and Generative Learning: Implications from Complexity Theories

One of the most important classical typologies within the organizational learning literature is the distinction between adaptive and generative learning. However, the processes of these types of learning, particularly the latter, have not been widely analyzed and incorporated into the organizational learning process. This paper puts forward a new understanding of adaptive and generative learning within organizations, grounded in some ideas from complexity theories: mainly self‐organization and implicate order. Adaptive learning involves any improvement or development of the explicate order through a process of self‐organization. Self‐organization is a self‐referential process characterized by logical deductive reasoning, concentration, discussion and improvement. Generative learning involves any approach to the implicate order through a process of self‐transcendence. Self‐transcendence is a holo‐organizational process characterized by intuition, attention, dialogue and inquiry. The main implications of the two types of learning for organizational learning are discussed.     

Transformations and Legitimacy in Nonprofit Organizations—The Case of Amnesty International and the Brutalization Thesis

This paper looks at organizational change in voluntary nonprofit organizations. Their 'purposive' nature makes voluntary organizations difficult to change while their tendency to oligarchic control results in this change often being imposed from the top. Amnesty International's death penalty work demonstrates the complexity of organizational change, as well as the accountability for and the legitimacy of change in nonprofits. Legitimacy should not be equated with organizational strength, and will remain subject to shifting, contested social norms concerning standards of behavior.     

Darwinism, probability and complexity: market-based organizational transformation and change explained through the theories of evolution

The study of transformation and change is one of the most important areas of social science research. This paper synthesizes and critically reviews the emerging traditions in the study of change dynamics. Three mainstream theories of evolution are introduced to explain change: the Darwinian concept of survival of the fittest, the Probability model and the Complexity approach. The literature review provides a basis for development of research questions that search for a more comprehensive understanding of organizational change. The paper concludes by arguing for the development of a complementary research tradition, which combines an evolutionary and organizational analysis of transformation and change.     

Organizational Environments and Performance: A Linear or Nonlinear Relationship?

The external circumstances that organizations confront are an important influence upon their prospects of success. The resources available within the environment, the multiplicity of stakeholder demands to be addressed and the rates of change in these, each have serious implications for organizational functioning. Nevertheless, it remains conceivable that the effects of different dimensions of the environment are not straightforwardly positive or negative, but may follow nonlinear patterns posing very different challenges at different levels. To draw lessons for public organizations seeking to understand how best to respond the circumstances that they face, this paper examines linear and nonlinear effects of different dimensions of the organizational environment on the performance of over 500 organizations using both objective and subjective measures of the environment. Strong support is found for the presence of linear relationships between each environmental dimension and type of measure and performance, but no evidence of statistically significant nonlinear environmental effects. The theoretical and practical implications of the findings are discussed.     

That Unwanted Feeling: A Psychodynamic Study of Disappointment in Organizations

This paper explores the emotion of disappointment in organizations and develops a new line of theorizing inspired by psychoanalytic object‐relations theory. Existing literature frames disappointment as a threat to organizational effectiveness, as both a response and an anticipation of failure and as an emotion that needs to be managed in order to prevent it from damaging organizational morale and performance. This only captures part of the complexity of disappointment and leaves unexplored its potential contribution to organizational and individual learning and even creativity. The paper develops a theoretical framework which depicts disappointment in three configurations or positions, and it establishes the potential of disappointment acting as an integrative emotion within organizations. The framework accounts for an apparent contradiction in organizational members' experience of disappointment – that it is, at the same time, seen as ‘of little concern’ to individuals, and yet viewed as capable of undermining stability and destroying positive feelings. The paper shows how disappointment is connected to the dynamics of blame in organizations but, when fully appreciated, can offer a way of moving beyond these dynamics by recognizing partial failure within an organization and turning it into the basis for organizational learning.     

Freeing organizational behavior from inhibitory constraints

Many organizational policies and practices are based on the view that people's behavior needs to be inhibited to protect against their selfish basic nature. Indeed, a fundamental assumption of theories ranging from social exchange to economic models of organizational behavior is that individuals are primarily oriented to gain good outcomes for themselves. This chapter describes a program of research that raises serious questions about these ideas by showing that disinhibition—prompted by reminding people of times when they behaved without worrying about what others thought—can often lead to more helping behavior, decisions for the greater good in response to dilemma problems, and greater rejection of self-advantageous unfairness. These findings suggest that most people are fundamentally pro-social, interested in securing good outcomes for both themselves and others. This pro-social attitude manifests itself more readily in actual behavior and attitudes when the person in question is freed from some of his or her inhibition. These findings have implications for how one might enhance the full potential of employees in organizations, stimulate helping and creative behavior in teams, improve decision making in organizations, and how we should understand reactions to organizational change.     

International Evidence on the Determinants of Organizational Ethical Vulnerability

This paper proposes a model to explain what makes organizations ethically vulnerable. Drawing upon legitimacy, institutional, agency and individual moral reasoning theories we consider three sets of explanatory factors and examine their association with organizational ethical vulnerability. The three sets comprise external institutional context, internal corporate governance mechanisms and organizational ethical infrastructure. We combine these three sets of factors and develop an analytical framework for classifying ethical issues and propose a new model of organizational ethical vulnerability. We test our model on a sample of 253 firms that were involved in ethical misconduct and compare them with a matched sample of the same number of firms from 28 different countries. The results suggest that weak regulatory environment and internal corporate governance, combined with profitability warnings or losses in the preceding year, increase organizational ethical vulnerability. We find counterintuitive evidence suggesting that firms’ involvement in bribery and corruption prevention training programmes is positively associated with the likelihood of ethical vulnerability. By synthesizing insights about individual and corporate behaviour from multiple theories, this study extends existing analytical literature on business ethics. Our findings have implications for firms’ external regulatory settings, corporate governance mechanisms and organizational ethical infrastructure.     

The Politics of the Exhibition: Viewing Corporate Museums Through the Paradigmatic Lens of Organizational Memory

This paper explores corporate museums as little–understood sites of organizational memory and proposes that corporate museums, as a form of organizational memory, are used strategically by organizations in the development of the firm's identity and image. More critically, the authors examine the politics of the exhibition of organizational memory, or what Sturken refers to as 'organized forgetting' or 'strategic forgetting'. The authors propose that organizations, through these museums, choose what is recalled (the politics of remembering) as well as what is not remembered (the politics of forgetting). Four propositions are suggested to guide future research on corporate museums with the purpose of furthering our understanding of these museums and their relationship to the development of organizational identity and image as well as organizational actions – past, present, and future. The paper concludes with implications for the organizational–studies scholar.     

Modular design of integrated databases in production management systems

Abstract

Complexity is a serious problem with respect to the application of information technology in the field of production management. This paper presents an overview of the more fundamental problems encountered and proposes a solution for some of those problems in the form of modular decomposition of the conceptual database structure. It is argued that the complexity of information systems is closely connected to the complexity of the organization. Therefore a condition for the realization of integrated information systems for production management is a simplification of the organizational structure by way of defunctionalization and the forming of autonomous units.     

Leadership for organizational adaptability: A theoretical synthesis and integrative framework

One of the biggest challenges facing leaders today is the need to position and enable organizations and people for adaptability in the face of increasingly dynamic and demanding environments. Despite this we know surprisingly little about this topic. In this paper we provide a theoretical synthesis and integrative review of research from strategy, organization theory, innovation, networks, and complexity to provide a framework of leadership for organizational adaptability. Our review shows that leadership for organizational adaptability is different from traditional leadership or leading change. It involves enabling the adaptive process by creating space for ideas advanced by entrepreneurial leaders to engage in tension with the operational system and generate innovations that scale into the system to meet the adaptive needs of the organization and its environment. Leadership for organizational adaptability calls for scholars and practitioners to recognize organizational adaptability as an important organizational outcome, and enabling leadership (i.e., enabling the adaptive process through adaptive space) as a critical form of leadership for adaptive organizations.     

Flexibility, Hierarchy, Markets

The conclusion that organizations need to become more strategically flexible as a response to increasing environmental dynamism and uncertainty has been an important feature of recent contingency theories of organization design. In this literature organizations have been analysed from the perspective of the development of networks of organizations concentrating on their core competencies and contracting among themselves on a stable long-term basis. This model of inter-firm relationships provides an alternative mode of organizational structuring to that arising from vertical integration, which, by contrast, is seen as fostering strategic inflexibility. In the literature on corporate restructuring and changes in ownership form arising from the markets and hierarchies perspective, we see a similar emphasis on the dysfunctional consequences of large-scale bureaucratic organization. Changes in ownership form are seen as a major means of providing more effective managerial control. In this paper we argue that linking the literature on flexibility emanating from contingency theories of organizational design and the markets and hierarchies perspective provides important new insights into current and emerging forms of organization.     

Chaos and Transformation Theories: A Theoretical Analysis with Implications for Organization Theory and Public Management

Chaos and transformation theories have emerged as new currencies in social sciences in general and in systems design and management, and in futuristic studies in particular. This article analyzes chaos and transformation theories in historical and contemporary perspectives, their contributions to social science in general, and organization theory and public management in particular. The notions of chaos and order, change and continuity, and uncertainty and certainty are analyzed along with the growing realization of complexity and non-linear dynamic features of modern organizations and the hard reality of a constant necessity to acquire new knowledge and learn to manage organizations with flexibility and innovation. Finally, the article addresses some of the limitations of chaos theory and outlines a number of implications for organization theory and public management in the age of globalization.     

Complexity,simplicity, simplexity

“In the midst of order, there is chaos; but in the midst of chaos, there is order”, John Gribbin wrote in his book Deep Simplicity (p. 76). In this dialectical spirit, we discuss the generative tension between complexity and simplicity in the theory and practice of management and organization. Complexity theory suggests that the relationship between complex environments and complex organizations advanced by the well-known Ashby’s law, may be reconsidered: only simple organization provides enough space for individual agency to match environmental turbulence in the form of complex organizational responses. We suggest that complex organizing may be paradoxically facilitated by a simple infrastructure, and that the theory of organizations may be viewed as resulting from the dialectical interplay between simplicity and complexity.     

Complexity leadership in bureaucratic forms of organizing: A meso model

We consider Complexity Leadership Theory [Uhl-Bien, M., Marion, R., & McKelvey, B. (2007). Complexity Leadership Theory: Shifting leadership from the industrial age to the knowledge era. The Leadership Quarterly.] in contexts of bureaucratic forms of organizing to describe how adaptive dynamics can work in combination with administrative functions to generate emergence and change in organizations. Complexity leadership approaches are consistent with the central assertion of the meso argument that leadership is multi-level, processual, contextual, and interactive. In this paper we focus on the adaptive function, an interactive process between adaptive leadership (an agentic behavior) and complexity dynamics (non-agentic social dynamics) that generates emergent outcomes (e.g., innovation, learning, adaptability) for the firm. Propositions regarding the actions of complexity leadership in bureaucratic forms of organizing are offered.     

Ignorance Isn't Bliss: Complaint Experience and Organizational Learning in the California Nursing Home Industry, 1997–2004

Organizational learning theory suggests that complaints about products and services can promote organizational learning and change. However, evidence suggests that potentially valuable forms of experience may be ignored or discounted in organizations, and additional research is needed to determine why this happens. This study contributes to those efforts by examining how multiple forms of complaint experience interactively influence organizational outcomes. An empirical test on a longitudinal panel of Californian nursing homes finds that complaints about other issues may distract attention away from complaints about a focal issue, but only when complaints are provided anonymously. These findings forward organizational learning theories by suggesting that multiple types of experience may detract from rather than supplement each other in some cases. Additional implications and opportunities for further research are also discussed.     

Critical Aspects of Organizational Learning Research and Proposals for Its Measurement

Based on an extensive literature review, this paper reveals several gaps in organizational learning (OL) research that need filling before we can really talk about a theory of organizational learning or verify the traits and very existence of learning organizations (LO) as a phenomenon. The critique, however, is not targeted at any single model or theory of organizational learning, but at theory building, which constantly drifts away with new definitions and approaches that break up rather than construct a theory. Despite the fact that numerous consultation tools for turning organizations into learning models have been developed and applied, the concept of organizational learning itself still remains vague and there is an urgent need for a holistic model of OL. Too much emphasis is put on studying the learning of individuals instead of concentrating on the learning of organizations. Since the theory is highly dispersed and does not really build on earlier findings, rich empirical studies are needed in order to validate measures of organizational learning. Modelling of the organizational learning process and clarification of how learning of individuals is turned into learning of organizations is needed. This paper introduces one set of OL measures developed to study whether organizational learning occurred during the operational and business culture change process of a single case company. Suggestions for further OL research are made on the basis of experiences gained when empirically testing this model.     

Researching the Roles of Internal-change Agents in the Management of Organizational Change

There has been relatively little empirical research on the roles played by internal-change agents in the processes of developing and managing organizational and cultural change, or on their learning needs. There is a particular dearth of research on these issues in the public-service sector. This paper discusses an innovative methodology for studying the work of internal-change agents within local government. It describes an action-research project, the learning laboratory, which the authors piloted with a small group of senior managers involved in developing programmes of corporate organizational and/or cultural change in their own local authorities. Using a variety of action-research and action-learning techniques within the laboratory, together with before and after interviews with the participants and their line managers in their authorities, the project was able to explore the roles, perceptions and learning needs of these internal-change agents. The research makes a contribution to the study of internal-change agents in their organizational context, and draws attention in particular to the implications for change agents of the political context of public-service organizations. The value of the learning-laboratory methodology for assessing the learning needs of internal-change agents is also assessed.     

From Blaming the Middle to Harnessing its Potential: Creating Change Intermediaries

Middle managers have been under attack as organizational downsizing and reengineering have reduced their number. They are also frequently portrayed as obstructive and resistant to change. However, recent research suggests that managers at middle levels in organizations may be able to make a strategic contribution. Data from research on how managers in an organization undergoing transformation experience change are used to build on this existing research to demonstrate that middle managers fulfil a complex 'change intermediary' position during implementation. The findings reveal that a key aspect of this position is the need for middle managers to engage in a range of activities to aid their interpretation of the change intent. This interpretation activity then informs the personal changes they attempt to undertake, how they help others through change, how they keep the business going during the transition and what changes they implement in their departments. The interpretation aspect of their role is often overlooked, leading to workload issues and role conflict. These findings offer an alternative perspective on perceived middle manager resistance and lead into suggestions for future research and organizational implications.