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.     

Human and organization problems in corporate planning

Any management method which is to work in practice must start by recognizing man as he really is, and not what he ought to be. The typical textbook company of the 1960's was peopled by obedient, logical, profit-oriented, ox-like employees—sterilized and faceless characters with£'s signs in their thought bubbles, but the study of Behavioural Science in recent years has taught us that man is a rather more complex animal than we used to think. Simple observations tell us that in practice no business is as tidy, flawless and rational as a 1960's textbook. The reason is that we are people—difficult as individuals for a start and infinitely more complex still when we combine in groups. “Businessman” must be accepted in his full glory, with his ungovernable motives, his intelligence, creativity, his desire for a quiet life, his intuition, his private needs, fears and ambitions and his paradoxical self-seeking ability to cooperate. Everybody who has worked in a company knows the gloriously complicated muddles which “businessman” can get himself into; the misused routines; the convoluted organization structures; the dreadful panics during which all the rules are broken, and the peculiar thing is that, in spite of all these untidinesses, things seem to get done just the same. My point is that management and planning is an extremely complicated business, it is complicated because it is a matter of handling people, it is an art not a science.     

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.     

A technical note on “A fuzzy set approach for R&D portfolio selection using a real options valuation model” by Wang and Hwang (2007)

In this paper, three critical issues with the paper “A fuzzy set approach for R&D portfolio selection using a real options valuation model”, coauthored by Wang and Hwang and published in Omega 2007 are addressed. Shortcomings of the original work are highlighted and corrective measures to improve the approach are proposed.     

Parenting in Complex Structures

In complex, interdependent corporate structures, there is overlap and sharing of responsibilities between the operating units and the corporate parent. As a result, the distinction between “business” and “parent” is blurred and a focus on the role and added-value of the parent is less obviously relevant. This article explores the nature of corporate parenting in complex structures and draws out the particular demands placed on parent managers in these structures. It also examines the role of the parent’s functional support staff and the complications that result from having more than one level of parenting. It concludes that there are some special parenting challenges in complex structures, but that the quest for “parenting advantage” should remain a fundamental driver of corporate strategy and structure.     

Virtually Embedded Ties

The Internet and other communication and information technologies have not only increased the efficiency and effectiveness of existing forms of interorganizational connection, but have also made possible the emergence of a new form - “virtually embedded ties”. Such ties have two essential features: first, they utilize electronic communication and information technologies; second, the use of those technologies allows them to overcome the exchange-related problems previously addressed through the formation of socially embedded ties. We argue that virtually embedded ties offer an important alternative to socially embedded ties in industries that are characterized by high levels of dynamism.     

The development of global IT infrastructure

A research model of the impact of a multinational corporations’ (MNC) global strategic orientation on global IT infrastructure was developed using global integration, or the degree to which a global strategy is actually implemented, as a mediator. A “matched pair” survey of 94 MNCs was conducted (two respondents per firm) in order to guard against common source bias. The results showed that the firms that pursue a globally oriented strategy actually enacted these strategies as indicated by a wide-variety of resource flows across national units. The role of the level of global integration as a mediator between global strategic orientation and global IT capabilities was empirically demonstrated. This confirms that a global strategy is not sufficient to ensure that an enabling IT infrastructure will be developed; rather it is the actual level of integration and interdependence that is achieved as a result of the strategy that drives IT infrastructure. The primary areas in which global integration was found to be closely linked to the global IT infrastructure were human resources, which significantly influenced the reach, range, support services and planning of the global IT infrastructure, and information resources which significantly influenced the planning dimension of the infrastructure. These results strongly suggest that the transfer of people among national units creates an information needs “pull” which leads to the development of better IT infrastructure and that the “push” of standardized information also contributes positively.     

Learning to learn and productivity growth: Evidence from a new car-assembly plant

This paper models learning by experience beyond the experience curve, including the possibility of “learning to learn”: the pace of learning increases over time by building on what has already been learned. We compare the extended deterministic learning model with Jovanovic and Nyarkos' [26] stochastic learning. The theoretical models are tested with data on the total factor productivity of a car-assembly plant in its first months of operation. We find that the deterministic “mixed learning model”, where the speed of learning is equal to a constant plus a learning to learn effect, is the one that best fits the empirical data. The mixed learning model results in a time pattern of total factor productivity growth, first increasing and later decreasing, different from the always decreasing rate of growth of the learning curve, opening new perspectives on the study of learning by experience.     

The Fairness of Decision Rules

Prior work on resource allocation has generally considered only a small number of allocation rules, usually reflecting equity or equality. We use a scenario study to examine the effect of eight different allocation rules (past performance, future performance, rank, random draw, chance meetings, business need, personal need, and political reasons) on recipient reactions to the gain or loss of three different kinds of resources in an organizational setting. We find evidence that allocations based on past performance and random draw rules lead to the highest fairness perceptions and the lowest expectations that the decisions made will lead to intragroup conflict. However, fairness judgments are also influenced by a variety of other factors, such as the type of resource being allocated and whether the recipient is advantaged or disadvantaged relative to others in the workgroup (what we term the “egocentric interaction”). We discuss how our results might influence managers’ allocation decisions.     

Democratic Implications of Public Organizations

The author suggests a Weberian methodology, based on theories of democracy and organization, for assessing normative implications of public organizations. How different organizational models contribute to (re)create democracy and legitimacy is scrutinized with reference to a Swedish IT program. The conclusion is that a system management organization will be an appropriate choice for dealing with tame problems, but it will at the same time promote an elitist democratization. In contrast, a development organization will be more appropriate in dealing with complex problems, and it will most likely promote discursive democratization.     

International Joint Ventures: Partnering Skills and Cross-Cultural Issues

Cooperative activity has become an important element of strategic behaviour and, with increasing globalisation, many alliances are being formed across national boundaries, with the attendant challenges of surmounting linguistic and other cultural barriers. This article provides new perspectives on the partnering skills needed for success in such international joint ventures (IJVs). Based on the analysis of 60 personal interviews from a sample of 20 Anglo-European JVs, four categories of skills are analysed: inter-partner skills, managing the IJV managers, the “upward management” skills of IJV managers managing the ‘parent’ partners, and those of managing the IJV itself. The article presents a matrix to examine the four categories of skill in the context in which each are used. Serving both as an analytical device and a diagnostic tool, this matrix offers results that have important implications for the management of IJVs with regard to the selection and training of managers and the inculcation of the skills required for each level of operation.     

Executive development: History lessons learned from Barnard

The purpose of this paper is to derive practical lessons from Barnard's less well-known contributions to our understanding of leadership, leadership development and executive education. The main contributions of this paper are the introduction of Bevir's logic to the leadership studies and revelation that Barnard might have established the early foundations of pragmatic leadership. The introduction of Bevir's logic from the history of ideas may be instrumental to overcoming biases toward historicism and presentism, which are latent, yet common in leadership studies. The recognition of Barnard's historical contributions to the conceptualization of leadership, leadership development, and executive education is significant. These contributions are not widely known because they are not a part of his well-known book The Functions of the Executive. Barnard has much to say about these issues and we should listen and heed his suggestions.     

The individualized corporation: An interview with Sumantra Ghoshal

Sumantra Ghoshal discusses the main features of his and Christopher Bartlett's new book, The Individualized Corporation, leading on to some of his current thinking on management issues in multinational corporations.Much of the book is devoted to describing the new corporate model, and to suggesting how such a company can be built and managed. Ghoshal points out that the major challenge to an individualized corporation is to manage people. A successful firm has a ‘smell of the place’ which motivates and invigorates its people. It also is capable of joint learning and a transformation process that progressively involves rationalization, revitalization and continuous self-renewal: the last of these is called in the book ‘cooking sweet and sour’.Reflecting Ghoshal's evolving thinking, the book moves well beyond managerial specifics to the realm of corporate philosophy. Management doctrine is changing from the old model of strategy, structure and systems to one built on purpose, process and people - a doctrine which embodies a new moral contact with employees.Looking at the future, Ghoshal insists we need an institutional theory of the firm, which recognizes their role as social institutions and also the role of management in distinguishing the visible hand of companies from the invisible hand of markets. This, and an inquiry into the management of the process of change - at a managerial, micro-level of analysis - is his new personal intellectual challenge.     

Motivating knowledge sharing through a knowledge management system

Based on both economic and sociological theory, the effects of supervisory control and organizational support on the frequency and effort of individuals in contributing their personally held valuable knowledge to a “best practices-lessons learned, repository-based” knowledge management system (KMS) were compared. Supervisory control, as expected, had significant impact on frequency, but it also had unexpectedly significant influence on effort. When system variables—usefulness and ease of use—were controlled for, the organizational support measure had little effect on either outcome. These results provide greater support for economic-agency-theory motivators of knowledge sharing and lesser support for organizational support motivators than has been previously believed. They also emphasize the important impact of systems variables in motivating KMS use. Since the study was conducted in a government (joint civilian–military) organization, the organizational type may significantly influence the results. However, since the result is contrary to the conventional wisdom that suggests that a “knowledge-sharing culture” is all-important, at the very least, this study shows that the nature of the organization may moderate the relationship between the motivational approach and the outcomes.     

Using partially observed Markov processes to select optimal termination time of TV shows

This paper presents a method for optimal control of a running television show. The problem is formulated as a partially observed Markov decision process (POMDP). A show can be in a “good” state, i.e., it should be continued, or it can be in a “bad” state and therefore it should be changed. The ratings of a show are modeled as a stochastic process that depends on the show's state. An optimal rule for a continue/change decision, which maximizes the expected present value of profits from selling advertising time, is expressed in terms of the prior probability of the show being in the good state. The optimal rule depends on the size of the investment in changing a show, the difference in revenues between a “good” and a “bad” show and the number of time periods remaining until the end of the planning horizon. The application of the method is illustrated with simulated ratings as well as real data.     

James Gardner March: Founder of organization theory,decision theorist,and advocate of sensible foolishness

James G. March helped to create organization theory and a “behavioral theory of the firm”, and he contributed very important insights about decision making and organizational learning. His articles challenge prevalent assumptions and rely on casual observation rather than systematic empiricism. His influence demonstrates the power of conceptualization and creative logic, and examples that capture the imaginations of listeners and readers.     

Managing Internal R&D Networks in Global Firms: What Sort of Knowledge is Involved?

How should a global firm manage its network of R&D centres in an effective manner? Some have developed an Integrated Network model in which the R&D centres around the world are tightly integrated into a coherent whole. Others have adopted a Loosely-Coupled Network model in which individual “centres of excellence” are given considerable autonomy. In this paper we argue that the way individual R&D units are structured, and the way the entire network is managed, should be based not on administrative heritage, environmental turbulence or management style, but on the basis of the underlying characteristics of the firm’s knowledge assets. In particular we focus on the observability and mobility of the firm’s knowledge assets, the impact these factors have on the way individual R&D centres are structured, and how they relate to one another in the international network. The argument is supported using examples and data from Swedish firms including ABB, Alfa Laval and Ericsson.     

Grey Advantage: New strategies for the old

With nearly one fifth of the population of the industrialized world soon to be beyond a traditional retirement age, businesses need to re-appraise their attitudes towards both older workers and older customers. Whilst some public and private sector organizations may have signalled such intentions, the gap between the rhetoric and reality of ‘third age’ employment and grey market development is still substantial. Analysing the ‘Age-Quake’, this article reviews current ageing population trends and associated business agendas. Using case study analysis, it then challenges three perceived ‘grey discontinuities’, as well as the traditional perception of simplistic step-change declines in physical and mental abilities and economic activity at the traditional retirement age. Deriving from this, the article challenges the older received wisdom by offering the individual assessment of ‘third-agers’ in terms of abilities as employees and tastes as customers as two generic strategies to assist managers in the strategic alignment of their organizations in pursuit of “grey advantage”.     

The role of deliberate and experiential learning in developing capabilities: Insights from technology licensing

We discuss the interdependencies between deliberate and experiential learning in developing a dynamic technology licensing capability, which was termed ‘desorptive capacity’ in earlier conceptual work. We use new three-year lagged data from two surveys of 79 firms to examine the role of dedicated licensing employees and prior licensing experience in developing firms’ sensing, seizing, and transforming capacities in technology out-licensing. The findings emphasize capabilities’ multidimensionality and critical trade-offs due to interdependencies between deliberate and experiential learning in developing capabilities. Besides interdependencies with experiential learning, deliberate learning strengthens sensing and seizing capacity, but it negatively affects transforming capacity based on inertia.