The changing professional organization: A review of competing archetypes

The aim of this paper is to summarize literature relevant to the professional organization and to present a contemporary analysis of the archetype concept in this field. In order to understand recent and ongoing changes in professional organizations, the paper begins with a review of how the professional archetype evolved from the 1960s to 1990. Then, with examples from contemporary accounting, health care and law organizations, it considers the processes by which an institutionalized archetype can change. Forces for change – such as deregulation, competition, technology and globalization – can challenge the interpretive scheme and eventually delegitimize the existing archetype. At the same time, significant environmental changes can override isomorphic pressures and de‐institutionalize the long‐accepted structures. Thus we herald the emergence a new professional archetype – or perhaps several competing archetypes. Finally, the paper reviews the evolving field of professional organization as a whole, and understands the extant archetypes. A typology of professional organizations is proposed that currently seems to have three clusters of organizations – possibly three competing archetypes – namely, the traditional professional partnership, the specialized ‘Star’ form and the corporate global professional network, or GPN.     

Ownership Structure and Firm Performance: Evidence from Israel

The study examines the effect of ownership structure on firm performance. We distinguish between family firms, firms controlled by partnerships of individuals, concern controlled firms, and firms where blockholders have less than 50% of the vote. The empirical work analyzes data on 280 Israeli firms and employs the technique of Data Envelopment Analysis. It is found that owner-manager firms are less efficient in generating net income than firms managed by a professional (non-owner) manager, and that family firms run by their owners perform (relatively) the worst. This evidence suggests that the modern form of business organization, namely the open corporation with disperse ownership and non-owner managers, promotes firm performance.     

Reengineering a health care facility. Turning an organization on its head

How can you foster change in your organization? Accomplishing major organizational change is difficult and extremely risky. However, change is necessary if health facilities are to survive in a competitive managed care world. Thrust into this environment, military health facilities are finding they must improve access and quality, while reducing costs. Keller Army Community Hospital at West Point was reengineered to meet this challenge. The results? A nontraditional hospital structure and management philosophy. Pipeline hierarchical chains of command and traditional professional boundaries have been modified. The strategy and transition process, as well as the obstacles to change, are explored in this article. Three years into a multi-year process, expected obstacles to change have been experienced, and success is predicted.     

Strategy implementation and organizational change: How formal reorganization affects professional networks

Strategy implementation is difficult, particularly as it often requires changes in formal organization structures. Prior research has shown that change in the formal structure may affect employee networks. Yet, we know relatively little about how such changes affect different network ties. This paper considers how formal structural change affects senior managers’ ability to maintain their intraorganizational networks. The hypotheses are tested on sample of 884 work-related relationships of 96 partners in a global professional services firm. This firm had recently implemented a new strategy, which led to a change in the product-market focus and the resulting formal structure. Our findings reveal that the characteristics of a specific network tie determine whether it is affected by formal structural change. In particular, we find that network ties that are highly embedded in the social structure are more likely to be affected by change in the formal structure. In contrast, ties that are relationally embedded are less likely to be affected by change in the formal structure. We discuss the theoretical and practical implications of these results. In particular, the findings may have consequences for the success of strategy implementation and strategic transformation efforts.     

An exploration of ‘sticky’ inventory management in the manufacturing industry

Traditional models examining relationships between firm resources and revenues assume that the many expenses and asset holdings change in proportion to changes in demand. However, research has found that for many costs and assets assumed to be variable, the magnitude of a change in a cost or asset in proportion to a change in revenue is smaller during periods when revenue decreases compared to the change in the cost or asset when revenue increases. Costs and assets which behave in this manner have been denoted as ‘sticky’ costs or assets. This study examines if inventory in the manufacturing industry is managed in a ‘sticky’ manner and what implications inventory stickiness has on firm performance. Utilising firm panel data over a 25-year time window we find that inventory stickiness does exist amongst manufacturers and that it has negative implications for firm performance.     

Setting goals in a professional service firm

Given the complex structure and rapid rate of change of today's society, it is critically important that a professional service firm properly set and periodically monitor its goals. This article describes how one consultant organization has formalized this process. The experience has led to important modifications of their goals. Perhaps a greater benefit is that the process of formalization has been a substantial aid in identifying and sensitizing individuals to crucial issues, in generating and evaluating alternatives, in isolating and resolving conflicts of judgement and priorities, and in communicating among members of the management of the firm concerned.     

Power and control in professional partnerships

Strategic management controls in professional partnership firms are different from controls in companies. A recently developed model of strategic management controls in the partnership firm was applied in a modified form to a sample of 60 firms in three traditional professions—law, accounting and architecture. Strategic management in the partnerships was broadly consistent with the model but we identified three adaptations in 10 of the sample of firms: corporate planner, corporate monitor and operations monitor. This article explains these adaptations and suggests that the form which strategic control takes in a partnership depends on the distribution of power in the firm.     

Marketing in moderation— The marketing concept and the organization's structure

This paper discusses the marketing concept and its impact on the strategy and structure of the business organization. The popular dictum that every firm should implement the marketing concept in its extreme form is challenged. Considerations of the overall structure of the firm, the time period in question, the amount of resources available are included in the determination of the degree of implementation which should be made. Finally, the conclusion indicates that the popular view that a change in environment necessitates a change in the organizational structure should be modified. The cost may be too great for the benefits derived.     

‘Bureaucracy‐lite’ and Continuities in Managerial Work

This paper questions three frequently asserted, interrelated claims about developments in management: that centralized, regulated bureaucratic organizations characterized by hierarchy and rules are inevitably giving way to decentralized and empowered post‐bureaucratic organizations characterized by internal networks and an internal market; that, as a consequence, the traditional managerial role of command and control is being superseded by one of facilitation and coordination; and that, in turn, managerial work as routine administration of work processes is being supplanted by the ‘new managerial work’ of non‐routine leadership and entrepreneurship. It is argued that these claims often rest on caricatures of bureaucracy and network organization and are neither new nor well supported by evidence. Against these claims, the paper adduces case‐study evidence which shows that, despite claims about ‘decentralization’ and ‘empowerment’, organizational change may entail not a radical shift to network organization, but more limited change to a different form of bureaucracy in which hierarchy and rules have been retained but in an attenuated and sharper form –‘bureaucracy‐lite’. Consequently, managerial roles continue to be defined in terms of individual responsibility and vertical accountability for an organizational sub‐unit, and managerial work continues to be preoccupied with monitoring and maintaining work processes, routine direction and control of staff and processing information in order to deal with the ambiguities inherent in the dimensions of managerial ‘responsibility’.     

Patterns of Profit-sharing in Professional Firms

In recent years the traditional method of distributing profits on the basis of seniority in professional firms has come under attack because of its poor incentive properties. Using data on large law firms, this paper examines the extent to which new forms of profit-sharing based on individual performance have been introduced and whether these are associated with the more systematic control of the core of professional staff and more ‘business-like’ methods of managing, as has been argued in the American literature. The results suggest profit-sharing innovations are limited in scope and only loosely associated with wider changes in partnership management. Explanations for the persistence of traditional methods of sharing are developed from the data and it is argued that existing accounts present an over-rational model of change in which too much emphasis has been placed on the importance of individual incentives to achieve performance. Profit-sharing policies are driven by concerns to sustain cooperation and professional values about the appropriate way to distribute rewards.     

Physician career development: toward building a model

Virtually no managed care organization provides a comprehensive and integrated program for physician career development. That's the principal finding of a survey we carried out in Spring 1994 in which we interviewed several individuals who have proven instrumental in the creation of career development programs at their managed care organizations. We started our research with the hypothesis that career development programs for physicians--frequently the most highly paid category of employees and the ones often most directly involved in the delivery of health care--should parallel the mission of the organization. In many of the organizations we surveyed, the mission included clinical excellence, managerial competence, research, teaching, community service, and building shareholder equity. While each organization offered some component of career development--usually clinical improvement and management development--very few offered programs that fostered the continued professional development of physicians in other aspects of their missions. In most cases, even in organizations with stronger career development agendas, the programs were passive and were rarely linked to the overall "corporate" goal of the managed care institution. This critical disconnect makes it extremely difficult for health care organizations to develop a workable system of accountability for their career development programs.     

网络治理的权力基础:一个跨案例研究

网络组织是当前经济活动中的普遍现象,网络治理并非信任基础上的自主治理,而是受组织间权力关系的规制,权力是决定网络组织运行的重要关系并影响了网络组织运行绩效.本文通过一个跨案例研究,分析了网络治理的权力基础,提出组织间权力来源于企业资源、结构位势和制度压力.三种权力基础的作用机理不同,其中企业资源和网络中心性显著地表现为个体层面的权力,而网络密度和制度压力则体现为网络层面的权力,个体层面权力与网络层面权力的相互作用导致网络组织呈现不同的演变趋势.     

A manual for managed care physicians: why needed, how developed, and how used

This article describes the development of and rationale for a "Physician Manual" in a managed care setting. The article begins with introductory information on the use of similar documents in industry generally and then provides background information on the author's organization. The contents of the manual are given in outline form, with additional details provided as necessary. The need to regard the manual as a "living" document is emphasized, and probable reasons for change are noted, along with recommendations for intervals at which review and change are appropriate.     

Developing criteria for healthy organizational change

The objective of this study was to identify criteria for healthy change in organizations and to develop practical guidelines for intended change. We aimed to explore how change processes at the shop floor level can be better informed by consultants and labour inspectors. A total of 180 interviews were conducted with managers and employees in 90 units of public and private organizations in Norway. The interviews were analysed through four steps representing an expansion of grounded theory, and converted to qualitative analysis using QSR and N6 software. We found that organizational change processes were better managed by more attention to awareness of the local norms and diversity among employees in the perception and reactions to change efforts. An inspector or consultant should be aware of these phenomena in any change effort and tell the organization how to deal with them. The other three factors identified were early role clarification, manager availability, and using constructive conflicts to deal with change. They are all important coping mechanisms at the organizational level that will bring change processes onto a more optimal track if correctly managed. A healthy process empowers individuals instead of making them insecure and defensive in times of change. This will help them restore perceived control and promote job security, which benefits both them and the organization.     

Developing criteria for healthy organizational change

Abstract

The objective of this study was to identify criteria for healthy change in organizations and to develop practical guidelines for intended change. We aimed to explore how change processes at the shop floor level can be better informed by consultants and labour inspectors. A total of 180 interviews were conducted with managers and employees in 90 units of public and private organizations in Norway. The interviews were analysed through four steps representing an expansion of grounded theory, and converted to qualitative analysis using QSR and N6 software. We found that organizational change processes were better managed by more attention to awareness of the local norms and diversity among employees in the perception and reactions to change efforts. An inspector or consultant should be aware of these phenomena in any change effort and tell the organization how to deal with them. The other three factors identified were early role clarification, manager availability, and using constructive conflicts to deal with change. They are all important coping mechanisms at the organizational level that will bring change processes onto a more optimal track if correctly managed. A healthy process empowers individuals instead of making them insecure and defensive in times of change. This will help them restore perceived control and promote job security, which benefits both them and the organization.     

Strategic quest and the search for the primal mother

This paper seeks to offer a Jungian perspective on the purposive behaviour of organizations and to throw light on the recent preoccupation with various organizational initiatives such as quality management, benchmarking, and even strategic approaches to HRD. The paper is unconventional in its approach in that it seeks to engage with the issues it discusses in both its form and its content. The purpose of the paper is to give attention to feminine aspects of the organization and, in particular, to the relegation of the feminine from the organization and, by implication, from social life. Here the feminine equates to the Jungian anima, the archetype of the male feminine. The ideas in the paper operate in the space between the organization as regulation and purposive rationality and the organization as living, physical bodies: between the Law and the Body. The form of the paper replicates these divisions and so text boxes run throughout the text to exemplify the captured otherness which is a central concern of the paper. The rationale for the text boxes is understated to allow the relationship between the rational and the physical to remain playful and ambivalent (see Baudrillard 1990). The paper is concerned with the questing behaviour of organizations and the expression of loss of the feminine, with the construction of masculine emblems that seek to substitute for the lost feminine, and with the impossibility of fulfilment.     

Mechanisms for Managing Ambidexterity: A Review and Research Agenda

Ambidexterity is of central importance to the competitive advantage of the firm, yet to date there is limited understanding of how it is managed. The theorization of ambidexterity is inadequate for complex, practical realities and, in turn, this hinders the way in which it can aid the management of ambidexterity in practice. This paper asks: What are the mechanisms for achieving ambidexterity? The authors use a systematic review to develop a research framework which integrates intellectual capital resources (organizational, social and human capital) across various levels of analysis (organization, group and individual). This review extends understanding of the generic mechanisms (i.e. temporal, structural and contextual ambidexterity) that dominate the literature. This allows for a more fine‐grained understanding of how ambidexterity is achieved and enables avenues for further research to be identified.     

Leading health care into the 21st century.

If there is a consistency in the professional lives of those who manage in the health care field, surely it is characterized by inconsistency. Change. For more nearly two decades now, since the full impact of the Medicare/Medicaid legislation hit, the health care industry has undergone profound, continual, and lasting change. Success can be measured largely in terms of how well a professional or an organization accommodates and manages these changes, making sure that they work for the organization and the career and not against them. The 1990s can be expected to be just as full of change and turmoil as have the past two decades. "What's past is prologue," Shakespeare wrote. The health care field is not apt to see the murderous machinations of The Tempest, but clearly exciting and challenging times lie ahead, and perhaps the outcome will be as positive as Shakespeare's. The scenario that follows provides a glimpse at the issues of change that will occupy the time and energy of physician executives for the coming decade.     

Tactical coordination in a multi-location and multi-stage operations structure: A model and a pharmaceutical company case

In this paper, we look at the internal supply chain of an internationally operating firm characterized by a multi-location and multi-stage operations structure. We address problems at three levels, namely the strategic, tactical, and operational levels. Our approach goes beyond the operational literature, and focuses primarily on the tactical level. We specify a model and a case that capture strategic and tactical issues and relate the tactical issues to organizational issues. We simulate coordination in different organizational forms pertaining to the ‘tactical control’ of the firm. Our analysis suggests that a functionally organized multi-location and multi-stage operations structure using traditional planning will not work. The choice is between a strongly IT-based, centralized organization or a more decentralized organization using transfer prices as the coordination device.     

Beyond Planning:: Strategies for Successfully Implementing Strategic Decisions

This article brings strategy back to managers and their organizations. It argues and demonstrates empirically that what managers do, and the kind of organization they lead, matter in terms of achieving stated objectives. Managerial action involves a set of activities from assessing the problem to prioritising action, and takes place within an organizational context which has two important elements for decision-making. First, organizations have an accumulated stock of experience, and the more managers can access and utilise this experience base the better. Secondly, the culture and structure of an organization may exhibit more or less readiness for the changes that decisions bring about, and contexts less ready for change pose problems for managers in the implementation of decisions.This long-term study of 55 decisions in UK firms shows that careful managerial planning does not of itself guarantee successful outcomes: the organizational context is crucial in framing actions and influencing achievement, and decisions may send a firm on a trajectory beyond the point at which it can plan with confidence. Where experience and readiness are strong, decisions achieve stated objectives—where both are lacking, decisions tend to fail. But, as examination of two illustrative cases indicates, strength in either domain may be enough: sound experience may win out in comparatively unreceptive situations, and decisions may still succeed where experience is lacking but the organization is ready for change. The article closes with some implications for managers.