11 The Effects of Governments on Management and Organization

Abstract

We review and integrate existing research from organization theory, strategy, organizational behavior, economics, sociology and political science on the effects of governments on organization and management, with a focus on how governing ideology and government capability influence independent organizations’ forms, strategies, and their participants’ behavior. When brought together these works suggest significant research opportunities in the fields of management and organization, as well as new perspectives on public policy challenges. Several avenues of potentially profitable empirical research include more attention to the influence of government on corporate strategies, more research on the strategies of pursuing corruption and government capture for competitive advantage, the role of government in fostering innovation and the growth of entrepreneurial organizations, and extra‐organizational contextual effects on managerial and employee organizational behavior. Possible public policy implications are illustrated with an application to the role of organizations in national wealth generation and dispersion.     

基于免疫的组织健康捍卫机制建构:一个案例

本文借鉴医学免疫和健康的新视角,试图建构基于组织免疫行为的组织健康捍卫机制分析框架,探讨组织健康状态的理论维度和组织免疫行为如何捍卫组织健康状态并发挥作用的机制,同时,选取广东粤电集团沙角C电厂进行了案例研究。本文的研究揭示出,组织监视、组织防御和组织记忆是组织免疫过程的主要行为维度,而组织健康的理论维度,包括组织结构均衡性、功能活跃性、社会和谐性和环境适应性,组织免疫行为对组织健康有捍卫作用,任何一个要素和环节的缺失或失灵都会破坏组织健康状态,组织免疫系统的建立对于避免复杂系统的运行失败是非常关键的。     

Life cycles of growing organizations: A review with implications for knowledge and learning

Conceptualizing growth trajectories of organizations in organismic terms describing transitions through a series of stages, from birth to maturity, has considerable intuitive appeal. Recently, the assumptions underpinning the life‐cycle perspective (growth is linear, sequential, deterministic and invariant) have been argued not to pertain to organizations. This paper reviews the literature on life‐cycle growth models, traces the development of a growing sophistication of conceptualizing growth and highlights some of the limitations of the literature. The authors make a contribution by proposing an alternative conceptual framework for thinking about growing businesses. The framework consists of two dimensions. First, a typology of key issues that are likely to be faced by all growing firms, and the discussion is shaped by M. Gladwell's (The Tipping Point: How Little Things Can Make a Big Difference. Boston: Little Brown, 2000) notion of ‘tipping points’. The second dimension is developed by drawing on the knowledge management literature and the concept of absorptive capacity ( Cohen, W.M. and Levinthal, D.A. (1990 ). Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35 , 128–152). This concept is applied to a discussion of the state of an organization regarding its ability to absorb and use new knowledge. Further, it is suggested that the framework has value for both policy and practice and can be used for the design and specification of interventional support and, to identify and evaluate their impact. If interventions are to help firms to grow, they must provide the right knowledge or support in forms that the firm can utilize. Together, these two dimensions provide a framework to examine firm growth issues and to analyse the effectiveness of different interventions on firms in different states within this framework.     

Getting to the Helm: Women in Leadership in Federal Regulation

Why is it important for women to hold leadership positions in organizations? If it is important for women to hold leadership positions in organizations, how do women get into such positions? Both public administration research and organizational research provide answers to these questions. However, the integration of these two bodies of literature remains limited. This study joins public administration scholarship on representative bureaucracy and management scholarship on women in leadership to hypothesize and test institutional, organizational, and political explanations for women’s attainment of leadership positions together in one model. This study examines how women get into upper-level leadership positions in 12 federal regulatory organizations over more than 20 years of time. Findings suggests that women are more likely to gain access to leadership positions when the dominant political ideology is democratic and in agencies that work in feminine policy contexts, are younger, and where the risk of failure is higher.     

Unitary, Divisional, And Matrix Forms As Political Governance Systems

In this study I reassess a set of fundamental organization forms (unitary, divisional, and matrix) as agenda-setting and political governance systems. My method of analysis is based on how political scientists study agendas in committees. Specifically, I first recount that moving from a functional (unitary) to a product-line (divisional) structure increases the types of conflict referred from lower to higher levels of the hierarchy, but does not increase the amount of conflict referred. I then show that moving from a product-line to a matrix structure increases the amount and the types of conflict referred to higher levels of the hierarchy; that it is possible in matrix forms that no conflict is resolved at the lowest levels of the hierarchy; and, that accountability is reduced for those who are able to refer conflict. The study reveals implications for matrix forms that derive from this view of organizations as agenda-setting and political governance systems. This analysis fits with the recent history of matrix forms in a variety of organizations.     

DEA and ranking with the network-based approach: a case of R&D performance

This study enhances the network-based approach, which is a novel method to increase discrimination in data envelopment analysis. The enhancements include removing the bias caused by a scale difference among organizations and highlighting the approach's ability to identify the strengths and weaknesses of each organization. The former makes the approach applicable to both the constant returns of scale (CRS) and the variable returns of scale (VRS) models. The network-based approach applies the centrality concept developed in social network analysis to discriminate efficient decision making organizations as determined by standard data envelopment analysis (DEA). More specifically, the results of data envelopment analysis are transformed into a directed and weighted network in which each node represents a decision making organization and the link between a pair of node represents the referencing relationship between the pair. The centrality value for each efficient organization provides the base for discrimination and ranking. This network-based approach suggests aggregating DEA results of different input/output combinations such that the merits of each organization under various situations can be considered. The final ranking of this approach favors organizations that have their strengths evenly spread and tends to screen out specialized efficient organizations. As a real world example, the approach is applied to evaluate and rank the R&D (research and development) performance of Taiwan's government-supported research institutes. The cross-organizations and within-organization strengths for each efficient research institute are identified after applying the approach. A two-stage R&D evaluation model separates the R&D process into the technology development and technology diffusion stage. The resulting performance map differentiates the research institutes into four categories—Achievers, Marketers, Innovators, and Underdogs.     

Institutional Theory: Employing the Other Side of Rationality in Non-profit Organizations1

The non-profit sector has become increasingly important in diverse economic, political and social environments. It is not clear that we have effectively communicated, to colleagues, students and decision makers, theoretical developments useful for understanding and managing non-profit organizations. This paper discusses the potential implications of institutional theory to the management of one type of non-profit organization, the publicly supported non-profit organization with input-output relationships that are not well understood. We review institutional theory and discuss the implications of institutional theory to the management and evaluation of publicly supported non-profit organizations.     

Zwischen den Zeilen der Organisation

Between the lines of an organization. On postmodern thinking and its impact on organization theory and consultancyFollowing the discursive concept of postmodernism introduced by Jean-François Lyotard, this paper focuses on the impact of postmodern thinking (understood as a theory of difference) for organization theory and consultancy. Crucial for an application are basic organizational differences, like the relationship between formal and informal organization. By drawing on this difference this paper exemplifies that the main interest of postmodern thinking for our conceptual idea of organizations lies in a modified understanding and analysis of such fundamental organizational distinctions. Finally the implications of this postmodern understanding of organizations are outlined for the field of organization consultancy.     

Serf or citizen: physician status and organizational structure

For more than a decade, dynamic changes in the health care industry have created new organizations for physicians. The major change for physicians has not been the organization itself, but the principles by which it is governed. This fundamental shift is studied with its impact on physicians, by analogy, becoming more like serfs or more like citizens. A review of the general organizational direction and results of non-physician health care organizations is made followed by the statistical trends of physician groups. Historical comparisons of non-health care industries are made with current organizational choices of physicians and physician groups. Observations of physician decisions are made identifying the direction they send physician status along the continuum from serf to citizen. Physicians are unknowingly making decisions regarding the principles by which they will be governed in new organizations. The choices they are making give them less autonomy and less opportunity to make future choices. The seductive invitation to spend less time in administrative matters and more time practicing medicine is a siren's call that will diminish the status of physicians and the autonomy by which medicine is practiced.     

Creating a corporate vision

Work on strategy has only recently been paying attention to the role of vision in the strategic management process and the possible relationship between vision and concepts as creativity, leadership and entrepreneurship. Analysis, however, has not been uniform in defining the core issues itself or in positioning vision within the overall strategic management construct. Even worse, the inter-relationship between vision and other concepts like leadership and entrepreneurship was only casually treated. This article is an attempt at putting strategic vision within one consistent conceptual frame. A frame that would encompass a definition, a set of attributes, an input and output flow and an operationalization dimension. The article relies heavily on contemporary work on strategy, entrepreneurship, creativity, leadership and organization. Illustrative cases are drawn from recent business (and non-business) histories of business organizations.     

Building an integral metatheory of management

The increasing fragmentation of organization theory seems not to be responding to the challenges and complexities of organizations and society. This article contends that integral theory can make an important contribution to our discipline and presents a metatheory that integrates all previous organizational knowledge in an integral, balanced and non-marginalizing framework. Using metatriangulation techniques it reviews management and organization theories, classifies them according to their underlying paradigms and integrates them in a new metatheory. The resulting theory called “3D Management” maintains that there are 3 basic and irreducible dimensions of management: science, arts and ethics which refer respectively to the techno-economical, the aesthetic-emotional and the moral aspects of organizational reality. The fourth management dimension, the spiritual dimension, integrates the Big Three in an essential unit and strives for unity and meaning. An assessment of the theory and a concluding discussion of its contributions and potential applications is provided.     

Surprises in Management and Organization: Concept,Sources and A Typology*

We discuss why surprises, defined as events that happen unexpectedly or expected events that take unexpected shapes, are important to organizations and should be considered in the organization and management literature as an umbrella concept, encompassing a variety of related phenomena. The concept of organizational surprises is unpacked and a typology is built around the (un)expectedness of the issue and the (un)expectedness of the process. This typology uncovers the several types of surprising events that organizations may face, and contributes to the literature by identifying how different types of surprises require distinct managerial approaches.     

Perceptions of politics and organizational cynicism: An attributional and leader–member exchange perspective

As the political perspectives of organizations gain acceptance, leadership is increasingly viewed as a political process. While some researchers have begun to shun the notion that politics should be viewed as necessarily bad and undesirable, it is still commonly seen as a negative attribute of the organizational environment. Moreover, organizational members who perceive themselves to be working in negative political environments may develop cynical attitudes toward the organization. The purpose of this paper is to provide insight into the role that attributions play in eliciting negative cognitive and affective reactions to the political environment. We argue that because the quality of the leader–member exchange (LMX) is often central to these reactions, LMX theory and research possess considerable promise for enhancing our understanding of these processes. We explore attributional processes in detail, with special attention to (a) how these attributional processes occur within a leader–member relationship and (b) how attributions ultimately impact perceptions of politics, as well as organizational cynicism.     

From Smoke and Mirrors to Walking the Talk: Decoupling in the Contemporary World

The pervasive spread of rationalizing trends in society, such as the growing influence of managerial sciences and increasing emphases on accountability and transparency, has created significant changes in organizations’ external environments. As a result, there is growing pressure on organizations to align their policies and practices, and to conform to pressures in an expanding array of domains, from protecting the natural world to promoting employee morale. In this context, we reconsider the concept of decoupling as it applies to organizations. Through a review and critique of existing research, we argue that the common understanding of decoupling—as a gap between policy and practice—obscures the rise of a more prevalent and consequential form of decoupling—a gap between means and ends. We describe when to expect both policy–practice and means–ends decoupling, and we indicate promising areas for research. The major consequences of this overlooked form of decoupling are that in an effort to monitor and evaluate activities where the relationship between means and ends is opaque, (a) internal organizational structures become increasingly complex, (b) organizations persist in a state of perpetual reform, and (c) resources are often diverted away from core goals.     

Organization without actorhood: Exploring a neglected phenomenon

Most scholars explicitly or implicitly build on the assumption that organizations have to be externally recognized as actors to become constituted as organizations. Although recently some scholars have reported on instances of organization without actorhood, the phenomenon still remains widely neglected. Moreover, so far, organization without actorhood is seen as something very limited in terms of complexity and permanency. In this paper, we will draw a different picture. Drawing on the concept of degrees of organizationality (Dobusch & Schoeneborn, 2015) and a decision-based understanding of organization (Ahrne & Brunsson, 2011; Luhmann, 2003), we develop a framework that allows us to explore how much organization is possible without actorhood. Drawing on a qualitative case study of an inter-organizational collective concerned with ensuring public safety, we illustrate that highly complex organization is possible without constituting an actor. Our study presents evidence contradicting the common assumption that complex organization relies on the external attribution of actorhood. We also add to debates on responsibility of organizations and inter-organizational relations by pointing out that organization without actorhood has certain implications, i.e. it allows for a specific avoidance of responsibility.     

The shadow dance of political climate: Engagement in political behavior in local government authorities

In describing the processes of organizations as political acts, we are not making a moral judgment; we simply are making an observation about a process. Bacharach and Lawler, 1980, p. 2.This study focuses on the ways a perceived political climate influences engagement in political behavior during a national election period. By using social cognitive theory as a way to predict behavior in organizations, we study how managers' engagement in political behavior is shaped. A qualitative research methodology was used. Sixteen interviews with managers were conducted in various local authorities during the 2015 election campaign for Israel's parliament. Participants perceived an intensification of political climate during the pre-election period, which they attributed to a significant connection between electoral and intraorganizational politics. Additionally, a perceived organizational political climate intensifies engagement in a range of political behaviors throughout an organization and is connected with an administrative role. The findings suggest that managers use “political capital” that the election period provides to influence and manipulate their organization's future and their own.     

Managing Functional Biases in Organizational Forecasts: A Case Study of Consensus Forecasting in Supply Chain Planning

To date, little research has been done on managing the organizational and political dimensions of generating and improving forecasts in corporate settings. We examine the implementation of a supply chain planning process at a consumer electronics company, concentrating on the forecasting approach around which the process revolves. Our analysis focuses on the forecasting process and how it mediates and accommodates the functional biases that can impair the forecast accuracy. We categorize the sources of functional bias into intentional, driven by misalignment of incentives and the disposition of power within the organization, and unintentional, resulting from informational and procedural blind spots. We show that the forecasting process, together with the supporting mechanisms of information exchange and elicitation of assumptions, is capable of managing the potential political conflict and the informational and procedural shortcomings. We also show that the creation of an independent group responsible for managing the forecasting process, an approach that we distinguish from generating forecasts directly, can stabilize the political dimension sufficiently to enable process improvement to be steered. Finally, we find that while a coordination system—the relevant processes, roles and responsibilities, and structure—can be designed to address existing individual and functional biases in the organization, the new coordination system will in turn generate new individual and functional biases. The introduced framework of functional biases (whether those biases are intentional or not), the analysis of the political dimension of the forecasting process, and the idea of a coordination system are new constructs to better understand the interface between operations management and other functions.     

The Learning Organization: Adult Learning and Organizational Transformation

The concept of the ‘learning organization’, with its roots in self-development and action-learning, has recently caught the imagination of many organizations and researchers. However, emerging definitions are creating ambiguity. There is, therefore, a need to add substance to them, and widen our understanding of what the concept means, by concentrating on what is meant by ‘learning’, and focusing on exactly how adults learn. Understanding and facilitating adult learning in organizations is, by and large, a confused activity that fails to connect with an individual's other experiences and needs, and with what modern psychology and research have to teach us. In particular, learning and skills need to be linked to the questioning of purpose and value in an organization.     

Leadership succession in different types of organizations: What business and political successions may learn from each other

We systematically review the recent impactful leadership succession literature in three types of organizations/contexts, namely publicly-traded, privately-owned (mostly family businesses), and political organizations. We compare and contrast these literatures, and argue that business and political leadership succession researchers and practitioners can learn from each other. The purpose of the review is fourfold. First, to take stock of the existing leadership succession research in these three related literatures – that examine the same essential phenomenon – but that have evolved separately. Previous reviews have focused mostly on CEO succession (not the broader phenomenon of leadership succession) mainly in publicly-traded firms; and to our knowledge no (recent) comprehensive literature reviews on the important topics of privately-owned and political organization leadership succession exist yet. Second, to develop an overarching integrative conceptual framework (ICF) that structures the overall leadership succession literature and shows the potential areas of integration and difference among the three literatures. Third, to develop three organizational frameworks – one for each organization type – that review what we know and what we should know about leadership succession in each type. Fourth, to critically compare the ICF, the three organizational frameworks, and the three literatures to better understand the similarities and differences among these literatures. By doing so and using a multidisciplinary approach we aim to contribute to the field in the following ways. Firstly, we seek to synthesize the field of leadership succession to identify important research questions that are ripe for study in the near future in the business and political science disciplines. Secondly, we strive to uncover what succession researchers and practitioners across these disciplines may learn from each other.     

Organizational Legitimacy and Stakeholder Information Provision1

One interpretation of the concept of organizational legitimacy is that it stems from the cultural values of society, and suggests that businesses operate under a mandate that may be withdrawn if organizations are seen not to be doing the ‘right’ things. This suggests there is something in the nature of a principal-agent relationship in existence, and that some form of accountability is then owed by the agent (the organization) to the principal (society). This paper seeks to investigate the nature of this accountability, distinguishing between the accountability which exists towards those elements of society with which an organization has a contractual relationship, and those where it does not. Adopting a pluralist stance, stakeholder theory is then used to illustrate the possible nature of both the form of legitimacy relationship extant, and of the accountability that the principal might expect of the agent.