MAKING SENSE OF ORGANIZATIONS & THEIR ENVIRONMENTS

OB Session 1: Course Introduction

Roar Vejter Bovim

INTRODUCTION
Background & expectancies
- Different backgrounds, knowledge and experience
- Motivation & purpose
Group exercise (2-3): What are your expectations for this course? What is your
motivation for studying organization theory? How do you want to utilize this knowledge
in the future?

Course description and teaching method

- Questions in the workshops or during breaks
- Syllabus
- Learning environment & community

1. MAKING SENSE OF THE ORGANIZATION

Example: story
Today, we will talk about some key aspects of these two questions: How can I make sense of the 1
world? How can I make sense of my organization?
What is an ‘organization’?
Encarta Dictionary: “a group of people identified by a shared interest or purpose, e.g. a business”
- Greek “οργανον” (organon): tool or instrument, i.e., “serving a purpose”
- a group of people where people are connected in some way, they do a coordinated effort
- product or process
- connects: hospitals, armies, churches, banks, schools, supermarkets, etc.
- related to all aspects of life: ”[the] lived experience of people not just working together but
joking, arguing, criticizing, fighting, deciding, lusting, despairing, creating, resisting, fearing, hoping
or, in short, organizing” Grey 2009:2

Organizational metaphors
- Definition: a word or phrase that means one thing and is used for referring to another
thing in order to emphasize their similar qualities (English Assistance)
- Organization & metaphors
o Gareth Morgan (1997): Images of Organization. Sage.
- Metaphors of organizations
o Machine, organism, brain, political arena, theater, story, fragmented picture
Group exercise (2-3): Discuss the different metaphors for organizations. In your
opinion, what of the metaphors will best fit a restaurant?
Key organizational elements
Let’s turn to some key elements of the organization.
Organizations: 5 key elements. These elements are tremendously helpful in trying to understand
and making sense of organizations.
- Social structure
o What is structure? – not building or ship structure but social – with same function.
Main aspects:
 division of work: functions; Production, Finance, Sales, HR, Marketing
 division of power: hierarchy
 rules & procedures, e.g. when do we start, how to perform job, what to wear
- Culture
o What is culture?
 more or less shared meanings or understandings
 visible part - “artifacts”: buildings, design & logo, jargon & stories, ceremonies
& rituals – expressing meaning
 invisible part - “values & norms”, “basic assumptions”: quality, fun
 summary: “the way things are done here”
- Interactions & relations
o What do we mean by interactions & relations?
 Ongoing communication 2
 Informal relationships
 Conflicts and disagreements
- Technology
o What is technology?
 machines & equipment that directly or indirectly contributes to the production
 methods & knowledge, e.g. purchasing & sales, market research, service
technologies
- Environment
o Before 1970: not much attention to the complex link
 supplies and deliverance: input & output, process
o New interest: important, complex relation.
o Complexity: increased competition, globalization, quickly changing, trends: green
o Strategies to handle: sensemaking, outsourcing, just-in-time production etc.
Relations between elements & complexity
- Aspects of the whole organization, influences on each other
- Formal & informal, product & process
- On different ‘organizational levels’: individual, group, unit, organization, national,
international
 Group exercise (2-3): Imagine that you are the top executives of a large company. You
have come to the conclusion that your company has to change radically in order to
survive. What would be the hardest element to change: the social structure, culture,
interaction & relations or technology? Discuss.

2. MAKING SENSE OF THE ENVIRONMENT

To make sense of and analyze the environment, we can divide the environment into three basic
categories.
1. Stakeholders
With ‘stakeholders’ we mean people and groups that have an interest in the organization, that in
some way are related to the organization.
Stakeholder examples: suppliers, unions, regulatory agencies, customers, partners, competitors,
special interests, e.g., NGOs
2. The general environment
In addition to the stakeholders, the general environment influences on the organization. This
environment can be divided into six or seven sectors of the society. The PESTLE model.
Sectors influencing on the organization:
- Political Sector
o distribution of power or nature of political systems
o instability & wars 3
- Economical Sector
o labor & financial markets
o the financial crisis & the crisis in the European economies
o currency, number of unemployed, wage rates
- Socio-cultural Sector
o social aspects: class structure, demographics, mobility patterns, social institutions
 immigration to large cities, aging population: utilize seniors
 life style: shopping patterns, women & sale
o cultural aspects: history, traditions, beliefs & values
 attitudes towards gender
 differences between countries
- Technology Sector
o scientific developments & their applications
o IT , communication technology and the internet
o new innovations
- Legal Sector
o laws & legal practices, taxes
- Physical Sector (ecological)
o transportation, natural resources & the effects of nature
 o climate in Denmark, type of nature
3. The international environment
- In addition to the stakeholders and the general environment, we can talk about an
international environment
- many interrelated environments, e.g. United Nations, Coca-Cola, McDonalds
- one complex environment
- trends become global: involves all sectors
o growth of markets in China
o focus on climate, ethics and social responsibility.
o containers and shipping, climate changes
Group exercise (2-3): Discuss how the following global trends in our society could
affect a company in the hotel business: ethical responsibility, globalization, terrorism.
In your opinion, what of these three trends are hotels in general least prepared for?

3. PERSPECTIVES ON THE ORGANIZATION

Organization Theory – long history, many approaches
What is a perspective?
Our perspective is the way we see and think about reality. Our perspective influences our practice.
However, it is very often something that is taken-for-granted, something we are not aware of.
Synonyms: paradigm, worldview, discourse, approach.
4
- Examples: the human race is good/evil, time goes by quickly/slowly
- organizational perspectives describe the way we understand organizations
o e.g. What is culture? “objective, designed by mangers” or “subjective, emerges
from what we do, when employees work together”?
o researchers AND practitioners have to deal with: e.g. managers & consultants
o 4 basic perspectives, “meta-perspectives”: similar perspectives and approaches
- Benefits of using multiple perspectives: eclectic or pragmatic view.
o Helps us relate to a turbulent and dynamic environment & complex situations
o Become aware of underlying assumptions
Basic perspectives
1. Modernistic perspective, e.g. “machine”
o also called ‘managerialism’
o Perspective: view organizations as objective, rational, effective systems.
o from the enlightening: from superstition to reason
 science, knowledge and control, human progress
o reality: objective, external and independent (objectivism)
o we find Truth through scientific measurement (positivism)
o methods: hypothesis, quantitative measurement
o focus: to find universal laws and explanation, techniques for control
 2. Symbolic-interpretive perspective, e.g. “web of meaning”
o Perspective: view organizations as continuously constructed by members through symbols
and interaction
o first challenge to modernism: from anthropology & sociology
 “culture in organizations”: “thick descriptions” & “context”
o reality: subjective, depend on our subjective descriptions (subjectivism)
o methods: qualitative – observations & interviews
o focus: to describe and understand how people make sense of and creates order in
their experience
3. Critical perspective, e.g. “political arena” or “physical prisons”
o Perspective: view organizations as places of conflict, ideology and oppression
o critique of the enlightening project (rationality, universal truth), critique of the
progress myth
 freedom has led to dominance, oppression and alienation in organizations
(Marx): the pursue of knowledge and progress have harmed the employees
- conflict
o reality: social constructed through ideology, power relations & structures
o methods: qualitative methods
o focus: liberation and more humanistic and democratic organizations
4. Postmodern perspective, e.g. “fragmented picture or stories”
5
o Definition: view organizations: places for discourses and power, (language) oppression &
irrationality
o from post structuralism (French philosophy, Saussure)
 language: do not accurately represent reality, word have no fixed meaning:
ambivalence and change
o reality: appear through the language and is tied to discourse – everything is ‘text’
o there is no truth or independent reality, just interpretations
o methods: qualitative methods, discourse analysis
o focus: to deconstruct organizational texts – management ideology and ways to
organize
- Example: Bispebjerg Hospital Project
o Focus of project manager
 modernistic: effectiveness & improvement
 symbolic-interpretive: user-involvement & hearing all groups
 critical: what groups are suppressed by this project?

CONCLUSION
- Making sense of the organization
- Making sense of the environment
- Glasses: 4 perspectives on the organization
  

UNDERSTANDING  THE  POWER  OF  GROUPS  

OB  Session  2:  Teams  &  Groups    
Roar  Vejter  Bovim  

INTRODUCTION  
In   his   book   Bowling   Alone   (2000),   Robert   Putnam   describes   this   individualistic   trend   in   our  
Western  society.    
Group  exercise  (2-­‐3):  Describe  briefly  one  group  or  team  that  you  have  participated  in  from  
your   school,   work,   volunteer   organization   etc.     What   was   your   team   experience?   Did   you  
experience  success,  community,  meaning,  conflict,  or  frustration?  

I   have   called   this   talk   today   “Understanding   the   Power   of   Groups”.   If   we   want   to   build   great  
companies,   we   need   to   build   great   small   groups.   And   to   build   great   small   groups,   we   need   to  
understand:   What  is  a  group?  
hat  is  a  group?   Why  do  people  join  groups?  
Why  do  people  join  groups?   What  happens  in  groups?  What  drives  group  
performance?  
performance?    That’s  our  learning  goal  for  today  and  what  I  will  try  to  answer.    

1.   WHAT  IS  A  “GROUP”?  

What  do  we  mean  by  “groups”?  
•   Encarta  Dictionary:  “a   “a  number  of  people  or  things  considered  together  or  regarded  as  s  belonging  
belonging  
together”     1  
•   We  will  use  groups  in  a  more  narrow  sense,  and  reserve  it  for  a  group  of  people  
•   Definition:  “Where  
Where  two  
two  or  more  people  are  
are  working  
working  towards  a  common  goal,  
goal,  but  not  
not  necessarily  
ecessarily  
have  common  
common  assumptions,  beliefs,  and  expectations  between  then.”   (Clegg  et  al.  2011:88,  revised)  
then.”  (Clegg  
o   Consists  of  people  
o   Sharing  a  common  goal  
o   Typically,  ‘loose  connected’  
•   Groups  in  organizations  (chart  slide)  
o   Examples:  work  groups,  committees,  task  forces,  professional  networks,  teams,  
projects,  sports  groups,  prayer  groups  etc.  
Central  question:  What  type  of  group  are  we  dealing  with?    
a.   formal  or  informal  
−  formal:  official,  specifically  selected  and  recognized  as  a  team  to  complete  a  
task  
−  informal:  not  official,  not  necessarily  recognized  or  accepted,  e.g.  work  
group,  internal  network.  

   
  

Example:  informal  groups  in  Statoil  (Bovim  2010:196ff)  

Small  groups:  ‘special  services’  in  the  Exploration  R&D  unit  
“I:  If  we  talks  about  identity  and  belonging.  Where  do  you  belong?  It  can  be  on  
different  levels:  Exploration  
xploration  unit,  
unit,  your
your    subunit,  
subunit,  group,  network…?  
etwork…?  
I  think  our  group  is  the  place  where  I  am  most  connected…  we  provide  
provide   a  special  
set  of  services,  which  are  not  delivered  other  places  in  Statoil.  It’s  a  few  people  
set  of  services,  which  are  not  delivered  other  places  in  Statoil.  It’s  a  few  people  
out   there   [in   the   field]   that   that   have   worked   with   us   and  are  
are   able
able   to   do   this,  
however,  even  they  come  back  and  ask  us  to  do  it.  […]”  
…]”  
Knowledge/practice  networks:  ‘subsea  network’    
-­‐   belonging  &  pride  in  6  aspects    
-­‐   function:  continuity  &  stability  through  changing  structures  

b.   open  or  closed  

−  open:  no  barriers  to  enter,  e.g.,  lunch  group,  interest  network  
−  closed:  barriers  &  membership,  not  everyone  may  enter,  e.g.,  helicopter  
rescue  team  
c.   inclusive  or  exclusive  
−  inclusive:  inclusive  &  accepting  to  newcomers,  embracing  diversity  
−  exclusive,  “cliquish”  
d.   cross-­‐cutting:  cross  cuts  the  primary  organizational  structure  of  the  company:  
formal  &  informal:  committee,  task  force,  team,  work  group,  friendship  clique  
e.   teams    
e.  
−   A  special  type  of  group   2  
o   ‘Psychological  contract’:  common  assumptions,  beliefs,  and  
expectations  -­‐  common  approach,  goals  &  mutually  accountable  
−   Benefits  
o   More  flexible  in  decision-­‐making  and  adaption  to  change  
o   Better  decisions  &  performance  outcomes  

Group  discussion  (2-­‐3  people):  What  of  these  groups  are  typically  cross-­‐cutting?  
a)   customer   service   team   b)   organizational   change   team   c)   computer   support   team   d)  
innovation  project  e)  choir  

2.   WHY  DO  PEOPLE  JOIN  GROUPS?  

1.   The  need  for  safety  
−   Safety  through  numbers:  protection  &  survival,  like  animals.    
−   Example  
2.   The  need  for  a  sense  of  belonging  
−   To  belong:  one  of  the  basic  need  we  have  as  a  human  being  
−   Maslow’s  hierarchy  of  needs:  Besides  physiological  and  safeness  needs,  it’s  the  
greatest  need.    
−   Durkheim,  sociologist  1800  c.,  study:  when  part  of  a  community/fellowship,  it  
protects  against  suicide,  e.g.  marriage,  church  community.  
−   Blumer:  The  importance  of  “Esprit  de  Corps”:  
  

In   itself,   it   is   the   sense   which   people   have   of   belonging   together   and   of   being   identified   with   one  
another  in  a  common  undertaking.  […]  In  developing  feelings  of  intimacy  and  closeness,  people  have  
[…]  In  developing  feelings  of  intimacy  and  closeness,  people  have  
the  sense  of  sharing  a  common  experience  and  of  forming  a  select  group.  (Blumer  
roup.  (Blumer  1939:262).    
939:262).    
−   A  sense  of  belonging  is  important  at  work  
 “I:  
“I:  Do  you  feel  belonging  to  Statoil?  
tatoil?  
Well,   I   am   not   everyday  walking  
veryday  walking   around   thinking   that   I   work   for   Statoil,   but   when  there  
there  is   a   negative  
emphasis  
emphasis  on   on  Statoil  
Statoil  [in  
[in  the  media],  you  defend  yourself.  It’s
It’s    so  
so  many  things  that  are  not  accurate,  and  
when  we  discuss  these  issues,  we  say  that  this  is  not  the  case.  It  is  not  
not  the  case.  It  is  not  that
that    bad,  that
bad,  that    wrong.  In  such  
cases,  the  Statoil  identity  becomes  apparent.”
apparent.”    
3.   To  remove  uncertainty  and  locate  ourselves  in  society  
Example:  When  you  walked  into  this  auditorium  today,  what  seat  did  you  pick?  At  the  same  
section   as   last   time?   Next   to   someone   you   met   during   the   last   session?   Someone   you   already  
knew?   We   need   this   certainty   or   habit:   to   make   the   choice   every   time   about   where   to   sit  
takes  a  lot  of  energy.  Typically,  after  a  few  sessions,  people  find  a  fixed  place  to  sit,  or  at  least  
a  fixed  section.  It’s  the  same  with  whatever  we  participate  in:  to  know  and  belong  to  a  group  
of   people   makes   it   much   easier   for   us   to   decide   what   table   we   will   choose   when   we   have  
breakfast,  who  we  talk  to,  who  we  are,  and  so  on.  
 

Individual  exercise,  (Clegg  et  al.  2011:  92,  revised):  Take  a  few  moments  to  think  about  the  
groups   you   feel   you   belong   to   or   are   part   of.   List   a   few   reasons   why   you   feel   included   as   part  
of   these   groups.   Afterwards,   think   about   the   groups   that   you   feel   you   do   not   belong   to   or  
excluded  from  and  list  a  few  reasons  why  you  don’t  feel  belonging.  
Compare   your   answers   with   one   or   two   people   around   you.   Can   you   see   any   common  
themes?  What  are  your  main  reasons  for  belonging  to  groups:  1)  safety  2)  sense  of  belonging   3  
3)  remove  uncertainty  4)  achieve  goals  5)  access  to  resources  

3.   WHAT  HAPPENS  IN  GROUPS?  

A.   When  we  are  part  of  a  group,  it  provides  us  with  a  sense  of  identity    
−   Social  identity  theory  (SIT):  central  theory  about  groups  (Ashforth  &  Mael  1989)  
o   Developed  1970s  and  1980s  by  social  psychologist  Henri  Tajfel  and  his  colleagues,  
through  a  lot  of  experiments  with  small  groups    
o   Basic  idea:  our  personal  or  individual  identity  does  not  only  come  from  our  personal  
abilities  and  characteristics:  a  great  part  of  it  stems  from  our  sense  of  belonging  to  
or  identification  with  groups  and  social  categories.    
Example:   If   I   ask   you   “who   are   you”,  you  might  say:  1,70  meters  tall,  from  London,  U.K,  good  
at   sports,   OR:   I   am   part   of   a   large   beloved   family,   a   popular   Facebook   group,   a   winning  
volleyball  team,  CBS,  a  well  known  business  school.  

−   The  theory  can  be  summarized  in  three  statements  (Bovim  2010:69;  slide):  
1.   In  order  to  locate  ourselves  in  society  and  make  sense  of  our  world,  we  tend  to  categorize  
ourselves  and  others  in  social  
social  categories  or
ategories  or    groups
groups,  
,  which  we  understand  as  either  positive  or  
negative.  
negative.
2.  
2.   These  groups  or  categories  provide  us  with  a   a  positive  social  
ocial  identity,  
identity,  a  positive  sense  of  
belonging,  which  is  central  for  growing  and  maintaining  a  positive  self-­‐esteem. -­‐esteem.    
3.  
3.   We   a ctively   s eek  to  m aintain  a  p ositive  s ocial  i dentity  through  
hrough favorable  comparisons  
 favorable   omparisons  between  
between  
the  in-­‐
n-­‐groups  
groups  we  feel  belonging  to  and  relevant  out -­‐groups.  
ut-­‐groups
  

−   Perceive  ourselves  as  ONE  with  the  group,  start  acting  like  the  group:  values  etc.  
−   This  theory  has  had  a  great  impact  on  the  research  and  study  of  organizations  
o   Introduced  by  Ashforth  &  Mael  in  their  famous  article  1989  
o   Focus:  in  our  work,  our  identity  comes  from  belonging  to  and  identification  with  the  
organization,  our  work  group,  team,  unit  &,  department  
o   Identification  with  your  work  group  &  the  company  
§   positive  influence,  e.g.:  well-­‐being,  productivity,  cooperation,  extra-­‐role  
behavior:  helping  others,  knowledge  sharing,  turnover.  
Practical  example:  Livingroom  Consulting,  livingroomconsulting.com  –  facilitation  of  identity  
in  KU  research  unit.  

B.   Groups  facilitates  performance  

−   Norman  Triplett,  1800s:  children  fishing  would  wind  in  their  reel  much  faster  when  other  
children  were  present  (Myers,  2001)  
−   ‘social  facilitation’:  the  
the  presence  of  others  increase  people’s  performance  
erformance  
−   Example:  The  Olympic  Games  and  world  records  
o   The  effect  depends  on  the  type  of  work  -­‐  most  effect  on  simple  tasks  
C.   Groups  sometimes  creates  conformance,  obedience  and  groupthink  
−   Negative  aspect  of  groups  
−   Studies  of  conformance  
o   Standford   Prison   Experiment,   professor   Phillip   Zimbardo:   24   students   randomly   4  
assigned  prisoners  &  guards.  
o   Explain  why  a  group  might  participate  in  and  tolerate  unethical  behavior.  
−   Groupthink  –  similar  concept  
o   “Groupthink”:   The   tendency   of   members   of   a   group   to   seek   and   maintain   harmony   in   a  
group,  at  the  cost  of  ignoring  important  decisions  that  may  disrupt  the  harmony  
that  may  disrupt  the  harmony   (Clegg  et  
al.  
al.  2011
2011:99)
:99)    
o   Example  (Clegg  et  al.  2011:99,  slide):  NASA  and  the  Space  Shuttle  Challenger.    
o   To  avoid  groupthink  
§   encourage  people  to  voice  their  opinion  &  accept  criticism  
§   encourage  reflection  upon  practice  
Group   discussion   (2-­‐3   people):   Discuss   strategies   to   avoid   groupthink   in   top   management   or  
leadership  groups:  a)  to  create  a  culture  of  openness  and  acceptance  of  criticism  b)  diversity  
c)  a  democratic  leadership  style.  In  your  opinion,  what  is  the  most  effective  strategy?  

4.   WHAT  DRIVES  GROUP  PERFORMANCE?  

A.   A  strong  sense  of  identity  &  belonging  (Ashforth  &  Mael  1989)  
−   Unique  and  distinctive  values  &  practices  facilitates  this  identity  
o   clear   and   differentiated   vision,   values,   practices   and   product:   it   is   easy   to   belong  
and  know  what  you  identify  with  
o   Example  drilling  team  (Bovim  2010:345ff,  slide)  
  

B.   Social  impact  
−   Social  impact:  how  
how  well  the  group  members  know  and  trust  each  other,  how  interrelated  jobs  are  
in  space  &  time,  the  size  of  group  
roup  (Clegg  
(Clegg  et  al.  2011:95
011:95-­‐-­‐97)
97)    
−   Small  groups:  higher  impact  than  large  groups  –  optimal  size:  3-­‐7  members  
−   Face-­‐to-­‐face  groups:  higher  impact  than  online  groups  
C.   Teams  
We  are  going  to  talk  about  two  aspects  of  teams:  What  makes  teams  so  effective?  How  can  we  
facilitate  well-­‐functioning  teams?  
What  makes  teams  so  effective?  
−   Kazenbach  &  Smith  1993.  Conclusion:  4  aspects.  
1.   Common  purpose  
−   More  than  discussion,  debate:  collective  work  products  –  a  purpose  we  achieve  
together,  in  which  team  members  can  believe.  
−   Example:  come  up  with  a  new  cell  phone  camera,  find  a  new  treatment  to  fight  
cancer,  implement  an  innovating  IT-­‐system.  
2.   Set  of  performance  goals  
−   Compelling,  achieves  small  wins  
o   Hotel  cleaning  team:  “to  clean  our  rooms  15  %  faster  and  20  %  more  
more  dirt  
dirt  free,  
ree,  
without  creating  stress”  
tress”  
o   Hotel  sales  team:  “increase  
“increase  our  sales  with  20  %”  
”   5  
Indeed,  if  a  team  fails  to  establish  specific  performance  goals  or  if  those  goals  do  not  relate  directly  to  
the   team’s   overall   purpose,   team   members   become   confused,   pull   apart,   and   revert   to   mediocre  
performance.  (ibid.:165)
ibid.:165)    

3.   Common  approach  
−   Agree  on  who  will  do  jobs  and  what  is  our  schedule,  how  do  we  make  decisions,  
what  skills  to  develop  -­‐  strong  commitment  to  approach.  
4.   Mutually  accountable  
−   Everyone  contributes  with  real  work,  the  team  hold  itself  accountable  
Definition:  “Where  
“Where  two  or  more  people  committed  
committed  to  a  common  purpose,  set  of  performance  
goals,  and  an  approach  for  which  they  hold  themselves  mutually  accountable”  (Kazenbach  &  Smith  
1993:165,  revised)  
evised)  
How  can  we  facilitate  well-­‐functioning  teams?  
−   Understanding  the  particular  type  of  team    
§   Types:    1)  advice  and  involvement  team,  2)  production  and  service  team,  3)  project  
and  development  team,  4)  action  and  negotiation  team  (West  (2008)  
§   time,  task,  space-­‐time  closeness  (West  2008;  Clegg  et  al.  2011:101-­‐102).  
§   Virtual  teams    
−   Understanding  team  stages    
§   Tuckman  (1965;  Clegg  et  al.  2011:103)    
  

1.   Forming:  group  are  forming,  people  get  to  know  each  other,  little  action,  little  
conflict  
2.   Storming:  move  towards  action,  people  align  with  members  &  look  (storming)  for  
positions,  start  of  conflicts  –  group  outcomes  &  processes  
3.   Norming:  people  get  an  understanding  of  norms,  roles  &  responsibilities  
4.   Performing:  after  norms  &  cohesion,  all  ready  to  perform,  all  people  are  engaged,  
work  together,  caring  for  each  other,  work  through  problems  
5.   Adjourning:  the  task  is  completed,  people  say  goodbyes,  break-­‐up  or  go  on  to  a  
new  project,  learning  
−   Understanding  team  roles    
§   People  take  on  specific  roles  to  get  things  done  –  often  emergent  
§   Not  role  ambiguity  &  role  conflict  
Role   ambiguity   often   leads   to   role   conflict   […and]  can  
can   often   make   it   very   difficult   for   newcomers   to  
team
teams  s  and  organizations  to  function  properly  (Slaughter  and  Zicker  2006;  in  Clegg  et  al.  2011:106)  
011:106)  
§   Belbin  (1993;  2000):  team  roles  
The   Plant:   creative,   imaginative,   unorthodox,   and   a   problem   solver.  
solver.   Weakness:  
Weakness:   May   be   too  
preoccupied  to  communicate  effectively  with  other  people.  
eople.  
The  Coordinator:  Mature,  
Mature,  confident,  and  able  to  delegate  well,  clarifies  goals,  and  promotes  decision-­‐
making.  
making.  Weakness:  
Weakness:  Can  be  seen  as  manipulative,  and  can  sometimes  offload  their  
heir  work  to  others.  
thers.  
The   Implementer:  Well  
Well  disciplined,   reliable,   and   dependable,   usually   quite   conservative   and   efficient.  
6  
Good   at   turning   ideas   into   practical   actions.  Weakness
 Weakness:  
:   Quite   inflexible   and   resistant   to   change.  Slow  
Slow  
to  respond  to  change.  
hange.  

CONCLUSION  
-­‐   Groups  &  teams  can  be  powerful!  Their  function  depends  on  good  leadership  and  
management.  
 WHAT MAKES GREAT LEADERS?
OB Session 3
Roar Vejter Bovim

INTRODUCTION
Today, we are going to look at some of those aspects that hinder or limit our leadership, things
that make us tired, make us quit, keep us from growing and make us ordinary not good or good
but not great.

I have called the talk today “What makes great leaders?” We are going to talk about 7 aspects or
qualities that characterize great leaders. These aspects summarize a great deal of the wisdom we
have from literature and research. This is not only an academic talk. My purpose today is to give
you something that can help you grow, help you become a better leader. Maybe you say: “This is
so plain. I know this stuff!”. Do you live it? Walk it?

Group exercise (2-3): Answer the following question based on your own experience
from either being a leader yourself or being under leadership. You are welcome to
share personal stories and examples.

What is a great leader? What type of leader do I want to follow?

1
WHAT DO WE MEAN BY ‘LEADING’ AND ‘LEADERSHIP’?
− There are tons of definitions of ‘leading’ and ‘leadership’, and researchers don’t agree of
what it means (slide – overview).
− Literally, “leading” means to be ahead of others, to take them forward where they might
not necessarily want to go (Clegg et al. 2011:124)
o Example: “leading people through the jungle” “leading people up that mountain”.
o In its simplest and most basic version, “leadership” is about providing direction &
motivating people to follow.
− Many definitions include these aspects
[a leader is] 1. somebody whom people follow; somebody who guides or directs others. 2. somebody
or something in lead […] Encarta Dictionary
A leader (a) leads people as a ruler; (b) inspires people as a motivator; and (c) facilitates or guide
them as a coach and mentor. Clegg et al. 2011:126
Leadership is the process of directing, controlling, motivating, and inspiring staff towards the
realization of stated organizational goals. Clegg et al. 2011:126

− Example: the U.S. election

− When we talk of ‘leadership’, it is said to be different from ‘management’, but the
distinction is not always clear
 o ‘Leadership’: establishing direction & aligning people
o ‘Management’: planning, budgeting and organizing

What is a great leader? What characterizes great leaders? Today we will look at 7 qualities or
aspects that summarize much of the literature about leadership.

1. GREAT LEADERS ARE MADE NOT BORN

What I am saying here, is that great leaders are not born with some qualities or traits that make
them great, like being tall or being man. Great leadership is something to be learned and
something that we develop and grow into over a period of time.
− Early theories about leadership had a great emphasis on personal traits or qualities
o Also called ‘great person theory’ (Clegg et al. 2011; Barker 2001)
o Studied many qualities: age, gender, height, weight, ethnicity
− There is little evidence that leaders are born with special traits (Mann 1959; Stodgill 1948)
o ‘white tall man’: social and cultural norms, which may change
o studies from non-western countries put an emphasis on other aspects, i.e. a study
from South Korea: respect for employees or caring for people (Shin 1999)
− Since 1950s, in general, research on leadership started to focus on other aspects of
leadership, in example behaviour, what they do, and their leadership style
Example: Job descriptions 2
When companies seek candidates through job ads, they typically mention several
personal traits and qualities that they look for and believe will fit the job. Here, the
‘great person theory’ has survived and is still popular, even though most researchers
have abandoned this approach.

− There are some basic qualities that has to be in place in most cases to be a great leader:
i. drive and persistence, e.g. initiative, energy, perseverance (Kirkpatrick & Locke
1991; Strand 2001)
ii. leadership motivation (Dulewicz & Herbert 1996; Kirkpatrick & Locke 1991)
iii. verbal abilities, e.g. communicate vision (Kanter 1991)
iv. social competence, e.g. move in social settings (Strand 2001)
Group exercise (2-3): Why are these qualities so essential to leadership?

2. GREAT LEADERS HAVE PERSONAL CHARACTER AND INTEGRITY

− When we talk about character, integrity and life style, business leaders, executives and
politicians are not much better than others.

If you go to a bookstore or search for leadership books in the CBS library, you will not find many
books on personal integrity. We may ask the question: Isn’t it surprising that so few leadership books
talks about personal integrity and character? Why is personal integrity and ethics not required readings in
Business Schools?
Stephen R. Covey: ”The 7 habits of highly effective people”, over 10 million books sold, #1
bestseller in the U.S., leadership seminars etc.
“In more than 25 years of working with people in business, university, and marriage and family
settings, I have come in contact with many individuals who have achieved an incredible degree of
outward success, but have found themselves struggling with an inner hunger, a deep need for
personal congruency and effectiveness and for healthy, growing relationships with other people”. (15)

An in-depth study of success literature in the U.S. since 1776: articles, books & essays. About the
last 50 years he concludes:
”It was filled with social image consciousness, techniques and quick fixes-with social band-aids and
aspirin that addressed acute problems […but] left the underlying chronic problems untouched […] In
stark contrast, almost all the literature in the first 150 years or so focused on what could be called the
Character Ethic as the foundation of success-things like integrity, humility, fidelity, temperance,
courage, justice, patience […]”

A. Great leaders are authentic

− New stream of research: ‘authentic leadership’ (Senior & Swailes 2010:256-257)
o reaction to the character failures and scandals
o returning to qualities or abilities
o basic idea: as leaders, we should know ourselves and how our experiences in life
have made us (Shamir & Eilam 2005). Do not copy others & being aware of values
& believes. 3
− Central leader attributes
i. Being true to themselves, i.e. know who you are (Ilies et al. 2005)
ii. Humility and modesty, i.e. being aware of one’s limitations and mistakes (Treviño et
al. 2003)
iii. Personal standards for right & wrong (Verbos et al. 2007)
− Kirkpatrick & Locke (1991) survey on existing studies: honesty and integrity
Example: Leaders that last
You may say that Adolf Hitler, Osama bin Laden, Saddam Hussein, leaders misusing
their power, were they not powerful leaders? Yes, but not great. How many of these
remain? If your leadership is not built on honesty & integrity, you are a house of
cards, ready to fall.

− In lie with “Built to last”, Jerry Porras & Jim Collins (see also
http://youtu.be/yK_fEX8WNf8)
o Traditional ‘great leader’: charismatic, powerfully articulating their vision,
inspirational and personally powerful
o Lasting ‘great leaders’: soft spoken, gentle, thoughtful, serious, humble, good
listener, modest, quiet, ‘builds the company’, not themselves
B. Great leaders are role models and good examples
− When you become a leader, other people will pay more attention to your behavior
 o To lead is to walk ahead, to model a standard by words and deeds, both in your
public and private life – ‘walk the talk’
− Example: Statoil
− Studies based on the social identity theory (SIT)
o people judge leaders according to how ‘prototypical’ they are (Hogg 2001)
 in SIT, “prototypes” are a compound ideal of what the group is, its
stereotypical attributes or the way people cognitively see the group and
what they identify with, i.e. the groups vision, mission, values and practices
 when we identify or feel belonging to a group, that is what we think of
 leaders are judged according to how well they are representing the groups
vision, mission, values and practices
 the more they live up to this ideal, the prototype, the better they are
perceived
− Useem (1996) - same
o Study based on 48 companies among the Fortune 500 largest US manufactures
o Successful CEOs: personally exemplifying the firm’s vision, values and standards.
C. Great leaders yields a good reputation
− Company ethics, corporate social responsibility (CSR), ethics, green business etc.
Group exercise (2-3):
Mention one or two leaders you admire for personal integrity. Why? 4
Do you agree with the following statements:
For a leader, personal integrity is more important than his or her abilities and skills.
For a leader, integrity and character matter in the private as well as in the public life.

3. GREAT LEADERS LEAD

A. Leadership is different from management
John P. Kotter (1990): “A Force for Change: How Leadership Differs from Management”
− ‘Management’
i. planning & budgeting, organizing and recruiting employees, control and problem
solving, procedures – creates: predictability and order
− ‘Leadership’ – characterizes great leaders
i. To establish direction: to develop a vision for the future together with strategies
to make the necessary changes: “we are headed for that mountain top and how”
ii. To get people to work together towards this common goal: to communicate
direction in words and deeds to all that are necessary to reach the goal
iii. To motivate and inspire: give energy, overcome hinders, satisfy needs
Outcome: produce change – produces often very useful change
o Example: Apple
 − Leadership is about followership. If you want to know if you are a leader, ask the
question: “Who is following after you?” “Does anyone imitate or copy what you are
doing?”
Great leaders take responsibility
− Don’t blame others, but are able to admit own shortcomings – we are all in the same boat.
They are not perfect, but transparent and honest.
− Task focus (Michigan & Ohio State studies), transactional leader
Example: Why is it that many leaders have such a hard time admitting their failures?
a) they are afraid of their own reputation b) they think they are ‘perfect’ c) they have
never learned it

4. GREAT LEADERS ADJUST THEIR LEADING STYLE TO THE SITUATION

− The context and the environment matters
o Size, location, followers (maturity), culture, task, power relations, leaders
expectations, strategy etc.
o Contingency theory
 not one leadership style, contingent upon situation.
− Central model: Hersey & Blanchard (1993; Senior & Swailes (2010):240)
o Situational factors, contingent of the maturity and readiness of their followers
 willingness and ability
o Leader’s behavior: telling – selling – participating – delegating 5
o Leadership style in two axes: relational focus (support), task focus (direction)
− Weaknesses
o too many factors to consider, never enough.

5. GREAT LEADERS SUPPORT, EQUIP AND TRAIN THEIR FOLLOWERS

A. Great leaders take responsibility for their employees growth
o To lead is not to sit in an office, but to train & coach
“Do you need help?” “Let me suggest a way to solve this task” “Let me help you pass that obstacle”
o Coaching, motivation, cheering people on.
B. Great leaders show consideration for and support their followers
o Blake & Mouton (1964), Blake & McCanse (1991) – leadership style
 The leadership grid: ‘concern for people’
o The Michigan and the Ohio State studies 1950-1960s
 ‘consideration’: to build trust and mutual respect, consideration for well-
being and thriving.
C. Great leaders listen to and involve their followers
Group exercise (2-3): What makes it a challenge to listen to and involve employees?
6. GREAT LEADERS ARE PERSISTENTLY IN COMMUNICATING VISION
A. Great leaders constantly share and re-share their vision
o It is not about slogans, buzzwords or to come up with something new, but to know
where we are going
Who are we? Where are we going?
o Kanter (1991) finds that
 central skill of change masters
“the ability to communicate visions, and be persistent.”
o Examples
B. The vision is (re)communicated not only verbally, but through behavior and symbols
o Great emphasis: ‘Charismatic’ and ‘transformational’ leadership
o Sociologist Max Weber: volatile, but powerful type of authority:
[The charismatic hero] acquire it [his power] and retains it only by proving his powers in real life. He
must perform miracles if he wants to be a prophet, acts of heroism if he wants to be a leader in war.
Above all, however, his divine mission must ‘prove’ itself in that those who entrust themselves to him
must prosper […] (Runciman & Matthews 1978:229; Senior & Swailes 2010:245.)

o Bass 1990 – transformational leadership

 Charisma: vision & mission, gaining pride & respect
 Inspiration: symbols etc.
 Intellectual stimulation: challenge assumptions 6
 Individual focus: help to grow
o Important for radical change – moving people

7. GREAT LEADERS RAISE UP OTHER GREAT LEADERS

− Great leaders identify, invest, train and coach new leaders
− Leadership pipeline

CONCLUSION
 MANAGING ORGANIZATIONAL CULTURE
OB Session 4
Roar Vejter Bovim

INTRODUCTION
Repetition Session 1-3
Learning Goals:
After taking this course, the students should be able to:
 Demonstrate an understanding of concepts, theories, models and perspectives presented in the
course.
 Demonstrate an ability to analyze and explain complex organizational situations and practices,
using concepts, theories, models and perspectives discussed in the course.
 Formulate effective solutions to organizational problems or situations, using the concepts, theories,
models and perspectives addressed in the course.
 Deliver well‐structured and compelling written and oral presentations on organizational associated
issues, tailored to the needs of a specific audience.

INTRODUCTION CULTURE
Today, we are going to focus on some key aspects of culture. I have called the talk today
“Managing Organizational Culture”. My aim is to help you understand how you as a leader can 1
cope with and deal with culture. So we will discuss: What is culture? How can we manage national
culture? How can we understand and manage the content of culture? How do we manage cultural change?

Group exercise (2-3): In this class, we come from many different national cultures.
Share with you neighbor:
What do you appreciate about your national culture?
What do you dislike?

1. WHAT IS ‘ORGANIZATIONAL CULTURE’?

− The word ‘culture’ has a long history
o Traditionally, ‘culture’ referred to cultivation of crops (agriculture)
o During the 19th century, the word began to be used about what distinguished us
from animals, in other words, the human society
o When sociologist and anthropologists started to study different groups of people
and their societies, ‘culture’ became a word for the particular groups that were
studied.
− ‘Culture’ was introduced to organization theory in the 1950s
o Researchers argued that organizations are more than ‘structure’: human &
emotional elements
 o In the early 1980s, organizational culture became a ‘hot’ topic and widespread
o In a short period of time, several bestselling management books came out, e.g. Tom
Peters & Robert Waterman’s “In Search of Excellence”.
− As with leadership, there are many definitions of organizational culture. There are some
fundamental aspects most researchers agree on:
o Culture is primarily not about music, theater, art
o Culture is something a group of people have in common
o Culture is about more or less shared understandings, meanings, beliefs, and
‘ways to do things’ that a group has in common.
o Culture is learned and new members become socialized into the culture
The pattern of basic assumptions that a given group has invented, discovered, or developed in
learning to cope with its problems of external adaption and internal integration, and that have
worked well enough to be considered valid, and, therefore, to be taught to new members as the
correct way to perceive, think, and feel in relation to these problems. Edgar Schein (1985:6)
Culture refers to the knowledge members of a given group are thought to more or less share; […] A
culture is expressed (or constituted) only through the actions and words of its members and must be
interpreted by, not given to, a fieldworker [...] Culture is not itself visible, but is made visible only
through its representation. John Van Maanen (1988:3)

− Examples: Google culture

− Related to other cultures 2
– Organizational culture is part of a regional and national culture - mutually
influence each other. Example: Silicon Valley.
– Within an organization, there might be several subcultures, a smaller group of
people within the organization that share a culture
i. Shared interest: profession, gender, occupation
ii. Share territory: departments, units, office building
iii. Bovim (2010): offshore culture, drilling culture
− It is important to distinguish between formal and informal culture
− Our definition of culture depends on our basic perspective (Martin 2002)
i. Modernistic, 1980erne: a tool for management, control and effectiveness,
objective, easy to measure & change, organization, quantitative methods -
SUCCESS
ii. Symbolic-interpretive, 1950s: the anthropological and sociological approach,
when people interact using symbols, social constructed, subjective, difficult to
change, qualitative method, subculture - UNDERSTANDING
iii. Postmodern, 1990s: fragmented, changes continually depending on the subject
(e.g., race, ethnicity, gender), individuals, difficult to describe, maintain power
relations, deconstruct – QUESTION
 Group exercise (2-3): Why are you studying organizational theory and culture and
what is your interest?
a) To have SUCCESS as a leader, making effective companies?
b) To gain UNDERSTANDING about the organization, its employees and
conditions?
c) To QUESTION the existing power relation, ideology, etc.?

2. MANAGING THE INFLUENCE OF NATIONAL CULTURE

Study of Geert Hofstede late 1970s, Dutch organization theorists
− the influence of national culture, IBM
− Compared countries: Is there a difference in the organizational culture?
Result: 4 dimensions of national culture within the organizational culture
1. Power Distance: The extent to which the members of a culture are willing to accept an
unequal distribution of power, wealth and prestige.
 Low: Denmark, Sweden (Jante Law).
i. rely on democracy, expect to be consulted by superior.
 High: Malaysia, Philippines
i. rely on hierarchy, lack of upward mobility, expect to be told what to do
2. Uncertainty Avoidance: The level of tolerance societies have for uncertainty and ambiguity.
Ways of coping: technology, law, religion.
 Low: Singapore, Jamaica, Denmark
3
i. accepting of innovative ideas & deviant behavior, dislike rules, resist
formalization
 High: Greece, Portugal
i. legislated against, more formalization & standardization
Group exercise (2-3): Power Distance & Uncertainty Avoidance
a. Do you recognize this?
b. Based on Hofstede’s results, if you want to start a restaurant chain in
Guatemala (GUA):
i. What leadership style would you use: telling, selling, participating or
delegating?
ii. Would it be smart to have a detailed job description?
3. Individualism (vs. collectivism): The degree to which individuals in a culture are expected
to act independently of other members of the society.
 Low: Guatemala, Thailand, Korea
i. undesirable & alienating, cohesive groups: identity & loyalty, relationship-
focus
 High: United States, Australia
i. a source of well-being, loose relationships, task-focus
4. Masculinity (vs. femininity): The degree of separation between gender roles in a society.
 Low: Sweden, Denmark, Norway
i. little focus on gender differences
 ii. work goals: relationships, service, preserving environment, quality of life
 High: Japan, Austria
i. women are nurturing, men assertive
ii. work goals: career advancement, earnings, selling oneself

Group exercise (2-3): Individualism & Masculinity

c. Do you recognize this?
d. Based on Hofstede’s results, if you are work at a hotel in Venezuela (VEN):
i. You lead a team. Would it be a good idea to start your teamwork by
talking about the team goals?
ii. What would be most effective in order to increase your employee’s
thriving: a) taking a day off having a party or b) increasing their
bonuses

3. MANAGING THE CULTURAL CONTENT

Van Maanen (1990): The culture (cultural content) of Disneyland, Anaheim, CA
− Describes the cultural content
Formal / Official Culture
− Attractive people
− Introduction course & socialization: ’University of Disneyland’
”First, we practice the friendly smile. Second, we use only friendly and courteous phrases.”
“Customer is king”, “Everyone is a child at heart when at Disneyland” 4
− Uniform, hair, shoes
− Wide smile and appropriate words
− Little contact with guests
”Walt’s in the park (all the time now)”

Informal Culture
 Don’t follow the rules
 Lack of emotional control
”Why aren’t you smiling?”, ”Having a bad day?”, ”Did Goofy step on your foot?”
 Responding on assaults
”seatbelt squeeze”, ”break-up-the-party”, ”sorry-I-didn’t-see-your-hand”
 Hierarchy of status

Schein: Analyzing Cultural Levels

According to Edgar Schein, an American social psychologist, culture is found and can be analyzed
on three different levels: 1) basic assumptions (the essence of culture), 2) values & norms, 3)
artifacts

1. Basic Assumptions
– the core or essence of culture
– what members believe to be their reality
 – taken-for-granted (e.g., a fish)
– penetrate every part of cultural life
– e.g.: time, human nature, conformity (div.), space (personal, social, public), doing-being
Group exercise (2-3): Why is it often hard to describe basic assumptions in
organizations? What does it mean that they are ‘taken-for-granted’?

2. Values & Norms

Values (what is valued)
– a result of assumptions
– social principles, goals & standards
– what members care about most
– moral code (right & wrong)
– can be recognized & challenged
– e.g., quality, customer first, respect for leaders
Norms (what is normal)
– practical expressions of values
– unwritten rules: defines what is expected
– often communicated informally
– e.g., talking in movie theaters, informing boss, clothing, display emotions

Group exercise (2-3): Mention a few examples of values and norms from the place 5
where you work/ have been working. How were they expressed in practice?

3. Artifacts
– a result of values
– manifestations or expressions of cultural core
– tangible, concrete, physical
– difficult to interpret (distance)
1. objects: logo, architecture, dress, products
2. verbal expressions: jargon, stories, myths, humor, rhetoric
3. activities (practices): ceremonies, rituals, meetings, traditions, gestures
Group exercise (2-3): Mention a few objects, verbal expressions, and activities from
the place where you work/have been working.

Pictures: artifacts

4. MANAGING CULTURAL CHANGE

− Culture is hard to change!
− To change culture, you have to work from top and from bottom
− To change culture, you need to know and work with the cultural content
− Lack of cultural change and adjustment to the environment and strategy can turn into a
cultural trap!
Example IBM: Radical Cultural Change
Louis V. Gerstner, biography: ‘Who Says Elephants Can't Dance? Inside IBM's Historic Turnaround’
(HarperBusiness 2002)

CONCLUSION
To cope with and deal with culture is important today: internationally, mergers & acquisitions,
changing company

1. What is ‘Culture’?
2. Managing the Influence of National Culture
3. Managing the Cultural Content
4. Managing Cultural Change

6
 COPING WITH POWER
OB Session 5
Roar Vejter Bovim

INTRODUCTION
I have called the talk today “Coping with Power”. My purpose today is that we all will be able to
understand more clearly what power is and how we can cope with it. We will discuss: What is
power? What are the sources of power? When does power become destructive? How to resolve power
conflicts?

Group exercise (2-3): Describe a work conflict that you have experience in your
work, know from media, have read about etc.

1. What was the underlying source for the conflict (e.g., cultural differences)?
2. What type of power did the parties in the conflict use?
3. Do you think that the conflict could have been avoided?

1. COPING WITH THE MEANING OF POWER

What is power?
“’A has power over B to the extent that he can get B to do something that B would not otherwise do”
Robert Dahl (1957), American political scientist 1
− Power is relational and can be found between people or between groups
− Power is socially constructed and depend on the ’eye of the beholder’. Example.
− Visible or invisible power.
− Power is exercised through political action
”the observable, but often covert, actions by which executives (and others) to enhance their power to
influence decisions” Huczynski og Buchanan (2007)
 In organizations, people use different tactics to influence
i. Legitimate.
ii. Illegitimate.
 When we talk about politics and organizations, the illegitimate type is often in
focus. However, the original meaning: “where interests are divergent, society should
provide a means of allowing individuals to reconcile their differences through
consultation and negotiation”. Morgan 2006:150.

Understanding organizations as ‘political arenas’

− Using a political metaphor, organizations are ‘political arenas’, where employees and
groups battle over power, e.g., positions, budgeting, candidates, decisions.
− Organizational politics is about management of meaning (Pettigrew 2002)
− Traditionally, organizations were not thought to be ‘political’
 Modernistic perspective (managerial perspective): The management has a legitimize
right to lead. Organizations are not political arenas, and this understanding undermines
rationality and authority, the bureaucracy.
 Interest: effectiveness through agreement about common goals.
− The new modernistic turn (after WWII): Herbert Simon & James March 1950s-1960s
 Observations showed that decision makers do not always agree on goals.
 They have limited rationality.
 ‘garbage can model’ (Cohen et al. 1972)
− Our understanding of power depend on our perspective
Critical perspective: Power is tied to social, economical, and political structures and often leads to
dominance. It is maintained and legitimized by dominating group(s) through ideology – a systematic
expressed belief or way of understanding reality.
− Interest: liberation; humanistic, ethic, and democratic organizations.
− Example.

Postmodern perspective: Power resides in discourses and is used for domination and oppression.
However, there are no absolute truths and no ideology is better than others. To replace one ideology
leads to other types of domination and oppression.
 Interest: to question discursive practices that lead to self-disciplinary behavior and
marginalization of groups & individuals.
 Example. 2

2. COPING WITH THE SOURCES OF POWER

Already in the 19th century, the sociologist Max Weber talked about power. He described three
different sources of power and types of leadership:
i. ‘Traditional’ authority: based on heritage or friendship. Used in ‘autocracy’: absolute
government where power is held by an individual or small group (Morgan 2006:153).
ii. ‘Legal-rational’ authority: legal right to rule, leading by the rule. Used in ‘bureaucracy’:
leading by bureaucrats behind their ‘bureau’, i.e. desks.
iii. ‘Charismatic’ authority: charisma and personality.

Let us look at some central sources of power.

1. Personal Characteristics
 Traditional and charismatic authority
 Heritage, charisma, ability to persuade other or attract people to a cause
 Energy, sensitivity towards others, ability to align people
 “drive and persistence”: important leadership trait (Kirkpatrick & Locke 1991).
Group exercise (2-3): Do you think this type of power is widely used in companies?
Have you personally experienced this type of power?
2. Position
 Legal-rational authority: legal right to rule.
 Is based on formal authority, i.e. it is legitimate, accepted and respected a by those
who are lead.
Legitimacy: “attaches to something, whether a particular action or social structure,
when there is a widespread belief that it is just and valid” (Clegg et al. 2011: 254)
Authority: form of domination that is legitimate: charisma, heritage, legal rule.
Today, authority is often associated with legal-rational authority.
o Legitimized: accepted and expected
o Requires consent.
o Institutionalized in hierarchy and exercised downwards.
Group exercise (2-3): Typically, what kind of employees has great positional power in
companies?

3. Control over uncertainty

 Uncertainties in organizations are not only constraints, they represent a source of
power
 Strategic Contingency Theory (1950s)
 Power is related to the control of uncertainty
 Power comes from the ability to
3
i. provide for organizational needs
ii. solve critical problems
iii. obtain scarce resources
 Study by Crozier (1964): French state-owned cigarette factory
o irreplaceable skill
Group exercise (2-3): What uncertainties can we find in the modern banks? In what
ways are these uncertainties related to power?

4. Control over resources

 Access to or control over resources is a central source of power.
 Resource Dependence Theory (1970s)
o How can the organizations secure the flow of resources essential for its
survival?
o Organizations are dependent on resources: raw materials, capital, labor,
information
o Scarcity of these critical resources in the environment creates uncertainty
o Management of this uncertainty produces differential subunit power
Group exercise (2-3): Mention other examples of people that control scarce resources
in organizations.
 5. Expertise
 Expertise is a source of power. In particular, it is powerful when the knowledge is
unique and important for the core process of the firm.
 It has to be utilized to work.
Group exercise (2-3): Who typically has expert power in companies and what
problems may this cause for the company?

6. Sanction and reward

 Right to impose sanctions and reward.
7. Access and network
 Access and relation to the powerful and/or connection to informal network with
powerful people.
Group exercise (2-3): Do you think that network power might be as important as
positional power in companies?

8. Symbols and culture

 To know the culture and manage and manipulate symbols in a way that they
signalize meaning.

Group exercise (2-3): What symbols and artifacts do managers typically use in
companies in order to signalize power?

4
3. COPING WITH DESTRUCTIVE POWER
Unequal distribution of power is not possible to avoid, and it creates inequality in organizations.
How inequality is experienced, however, depends on how the power is exercised.
− Power becomes destructive when it is used for oppression and domination, e.g. when
someone exploit impersonal rules for own ends
− The critical perspective focus on this type of power.
Power is tied to social, economical, and political structures and often leads to dominance. It is
maintained and legitimized by dominating group(s) through ideology – a systematic expressed
belief or way of understanding reality.
 Interest: emancipation, e.g. democratic organizations.
− Also the postmodern perspective is concerned with domination, but the focus is different.
Power resides in discourses and is used for domination and oppression. However, there are no
absolute truths and no ideology is better than others. To replace one ideology leads to other types
of domination and oppression.
 Interest: to question and uncover discursive and dominating practices.

A. Domination
Definition: ”controlling power: control, power, or authority over others or another” Encarta Dictionary
− Max Weber: does not require consent of those being managed (Clegg et al. 2011:252)
 − Domination in organizations may be explicit or more subtle and covert, e.g. using resource
management techniques to create obedience (i.e., soft domination)
i. Sometimes domination in organizations is backed up by a cultural belief system
− Ideology: “whenever a group systematically expresses belief in a set of ideas, e.g., shared beliefs,
values, culture” (Hatch and Cunliffe 2006)
− Critical perspective: ideologies legitimate the domination over other groups
− Hegemony: “a system of rule or domination where those who are being dominated, or ruled,
consent to that rule. It is a state of ideological conformance […]” Clegg et al. (2006:270)
 Employees are participating in their own exploitation
 Ideologies are used to maintain existing power systems, which often become taken-
for-granted
ii. Postmodern researchers have focused on surveillance as a form of domination
− They argue that ‘disciplinary power’ is part of everyday organizational life
− Foucalt (1980) described hospitals, prisons and factories as sites of disciplinary power
 Disciplinary power is exercised through routine practices of surveillance
 ‘panoptican’: tower in prison where the guards always could see the prisoners
 Anticipation of control causes people to engage in self-surveillance
− Surveillance techniques in organizations
 human resource management
 surveillance cameras 5
 ‘information panoptican’ (Zuboff 1988)
 consultants at a knowledge-intensive firm (Deetz)
iii. Gender Dominance
 Organizations and organizational practices are dominated by men.
Group exercise (2-3): Women works in jobs that focus on reproduction, men with
production. This can explain the low status, income, and overrepresentation in part
time jobs. Why is this? Socialization, structure, ability? Consequence for women in
boards.

Should we have women quotas in boards?

B. Resistance
− Employees that are dominated or disagree with decisions may engage in resistance.
− ‘Resistance’ is “‘a reactive process’ whereby people embedded in power relations actively oppose
initiatives enacted by others” (Jermier et al. 1994:90).
− Researchers has typically studied resistance conflicts between managers and workers
− In organizations, people use different tactics of resistance
 Legitimate: to form coalitions, trade unions, vote against.
 Illegitimate: sabotage, report sick, “slow walking”.
C. Avoiding Dominance
i. Solutions: the critical perspective
 Liberation of oppressed employees
 Empowerment: “giving someone more power than they had previously” (Clegg et al.
2011:253).
o Transferring power to the individual by promoting self-regulating and self-
motivating behavior through innovating HR policies & practices
o E.g. self-managing work teams, enhanced individual autonomy.
 Work place democracy: self-managed groups.
ii. Solutions: the postmodern perspective
 Reflexive stance with regard to research
 ‘Giving voice’ to oppressed groups

4. COPING WITH POWER WARS

The Conflict Management Grid (slide)
− Originally developed by Blake & Mouton (1970), and further expanded by Thomas (1976).
− Techniques of conflict management are mapped on two dimension:
o Assertiveness: focus on own concerns
o Cooperativeness: focus on others’ concerns
5 Approaches and Their Appropriate Situation (Thomas, K. W. 1977: 487; in Morgan 2006:201) 6
1. Competing (win/lose)
a. When quick, decisive action is vital, e.g., emergencies.
b. On issues vital to company welfare when you know you are right.
c. On important issues where unpopular actions need implementing, e.g. cost cutting.
2. Collaborating (win/win)
a. To find an integrative solution when both sets of concerns are too important to be
compromised.
b. When your objective is to learn.
c. To merge insights from people with different perspectives.
3. Compromising (partly win/win)
a. When goals are important, but not worth the effort or potential disruption of more
assertive modes.
b. When opponents with equal powers are committed to mutually exclusive goals.
c. To achieve temporary settlements of complex issues.
4. Avoiding (no-win)
a. When an issue is trivial or more important issues are pressing.
b. When you perceive no chance of satisfying your concerns.
c. When potential disruption outweighs the benefits of resolution.
5. Accommodating (lose/win)
 o When you find you are wrong – to allow a better position to be heard, to learn
and to show your reasonableness.
o When issues are more important to others than to yourself – to satisfy others and
maintain cooperation.
o To build social credits for later issues.
Group exercise (2-3): In conflicts at work, are you currently utilizing all of these
approaches?

CONCLUSION
To cope with and deal with power is important today.

1. Coping with the Meaning of Power

2. Coping with the Sources of Power
3. Coping with Destructive Power
4. Coping with Power Wars

DESIGNING STRUCTURES THAT WORK

OB Session 6
Roar Vejter Bovim

INTRODUCTION
I have called the talk today “Designing Structures That Work”. We will discuss: What is
organizational structure? What structural forms can
organizational structure? What structural forms can we
we choose
choose among? What are the factors
among? What are the factors we should
consider when we decide what
consider when we decide what our structure
our structure shall be? When do we need to change our structure?
shall be? When do we need to change our structure?

Group exercise (2-3): Have you ever been part of an organization with a structure that was a)
bureaucratic, stiff and ineffective or b) effective? Explain and discuss.

WHAT IS ‘ORGANIZATIONAL STRUCTURE’?

- In the earliest attempts to describe structure, the bureaucracy was central
o It is interesting that when the word ’bureaucracy’ was used in the 1800 century to
describe organizations, it did not have a negative meaning.
o The German sociologist Max Weber saw the bureaucracy as a big step forward.
o The bureaucracy is based on rational principles and laws that everyone can
understand and agree with. This is something we take for granted today, not kings,
fate, money. 1
- Webers’s “Ideal Bureaucracy” (1900s) highlights central aspects of structure
o ’ideal type’: pure abstract idea, typical & example, not normative
o From French: ‘office’ and Greek: ‘rule’
o Rational decision makers serving clients
§ rational system with a clear division of labor
§ clear defined hierarchy
§ impartiality: selection based on qualification & promotion from
achievement or seniority
§ fair application of rules
Group exercise (2-3): Young people are often said to be critical towards authority. This is also
a central feature of a postmodern perspective as well as the Scandinavian countries - studies
show that Scandinavians in general have low acceptance of an unequal distribution of power.
• What do you associate with “authority”? Do you primarily think of it as something
positive and valuable? Why/why not?

- Definition: relationships among people in organizational roles and the organizational groups or
units to which they belong (e.g., departments, divisions)
- We can say that structure mainly consists of three aspects:
1) Division of labor/work
− Horizontal distribution of responsibility and work tasks, e.g., individual tasks and
departments: purchasing, production, sales etc.


2) Division of authority - Hierarchy

− Vertical distribution of power or authority, a common feature of most
organizations
− Legal authority & matter of position: right to make decisions, give directions,
reward & punish
3) Formal rules, procedures and politics
− the extent to which explicit rules, regulations, policies and procedures
govern organizational activities
− written policies, handbooks, job description, operation manuals,
organization charts etc.
- Central dimensions (Hatch & Cunliffe 2006:106)
o ‘Differentiation’: levels in hierarchy (vertical) & number of departments/span of
control (horizontal)
o ‘Specialization’: extent of narrowly defined tasks for employees & work units
o ‘Standardization’: Extend to which standard procedures govern operations and
activities (not individual judgment)
o ‘Formalization’: Extent to which there are written job descriptions, rules,
procedures etc. (not informal, relational and face-to-face coordination)
o ‘Centralization’: Extent to which decisions are made at the top (not decentralized)
- Differentiation 2
o tall structure: low horizontal differentiation & high vertical differentiation
o flat structure: high horizontal differentiation & low vertical differentiation
o Trend: flat structures
- Our understanding of structure depend on our perspective
o Modernistic perspective (early): structure is an effective tool for managing the
company.
§ an objective entity, e.g. charts, policies, rules
§ measurable & stable
o Symbolic-interpretive perspective: the actual structure emerges bottom-up in the
organization and often do not follow the formal structure
§ structure emerge as people work & interact
§ social interaction, meaning-making & everyday practices creates pattern
§ study: participating & observation
o Postmodern perspective: structure is a mean for control – there is no real
structure, the world is fragmented (poststructuralist)
§ Skeptical: hierarchy, centralization, control etc. = ‘structure’! Created by
organization theorists and managers!
§ legitimize power & suppress informal organization
o deconstructing structure – ideology used to dominate
o explore hidden implications, but no alternative constructions


STRUCTURAL FORMS OF ORGANIZING

Main questions: When will this be a preferred structure? What are the benefits and drawbacks
with this type of structure?
Structural forms
Simple design
− Characteristics: small comp., organic & innovative, little formalization & specialization
− often centralization, newly formed, project teams entrepreneurial owner-managed firms
− Coordination: direct supervision or mutual agreement
− Situation: young and small, simple not-routine technology, simple & dynamic environment
− Benefits: flexible relationships & little hierarchy
− Drawbacks: vulnerable, small

Machine Bureaucracy
− Characteristics: often functional structure (production, sales, HR etc.), when differentiation
is needed, horizontal and vertical specialization
− formalization, limited horizontal decentralization, manufacturing & mass production
− Coordination: standardization of work
− Situation: old and large, routine technology, simple and stable environment
− Benefits: effective & efficient, quality, common task and goal, limit duplication
− Drawbacks: functional silos, overburdened 3

Professional Bureaucracy
− Characteristics: functional or market structure, independent professionals, training, when
differentiation is needed, horizontal specialization, horizontal & vertical decentralization
− little formalization, hospitals, universities
− Coordination: standardization of skill – ex. doctor
− Situation: age varies, specialized knowledge, complex and stable environment
− Benefits: standardization, effective & efficient, quality
− Drawbacks: standardization: adaptability and innovation, ex. hospital

Multidivisional form
− Characteristics: multiple divisions: product, customer, geography, industries - performance
control
− Clear focus - divisions: day-to-day operations HQ: finance & strategy
− Coordination: standardization of outputs
− Situation: old and large, routine technology, simple and stable environment
− Benefits: size, close to market, measure and compare performance, flexibility/adaptability
− Drawbacks: costs, control, overlap, focus on money – not risks & innovation?

Matrix structure
− Characteristics: organic & dynamic, two structures: functional leaders & project managers,


− Coordination: mutual adjustment & standardization of work/skill/output

− Situation: complex and changing, need to share resources
− Benefits: organic and new projects, specialists, functional benefits & responsiveness
− Drawbacks: dual expectations, dual allocation, conflicts

Other types
− Project/team organization / ad-hoc organization
i. focused on a goal, temporary, few rules, flat and professional
ii. Situation: young, complex technology, complex & dynamic environment
− network organizations
i. informal or formal, relational based
ii. cooperation over distance

One best structure?

− ‘Contingency theory’: To be effective, the structure
To be effective, the structure of organizations
of organizations has to be designed
has to be designed according
according
to or
to or match a number of contingencies,
match a number of contingencies, situational aspects managers cannot avoid, e.g.
situational aspects managers cannot avoid, e.g. type of
type of the
the
environment, size,
environment , size,
strategy and
technology
strategy and technology of the organization.
− Critique: too complex, not practical
− Still useful
− Structures that work are…
1. MATCHING THE STAGE OF DEVELOPMENT 4
− According to an American theorist Larry Greiner (1972), organizations go through a
lifecycle and moves from stage to stage as humans: infancy, childhood, adolescence &
maturity
− Each shift is driven by a crisis

1. Entrepreneurial phase (small, simple)

2. Collective phase (professional leadership, routines, goals & direction, bureaucracy)
3. Delegation phase (autonomy & decentralization, bureaucracy/multidivisional)
4. Formalization phase (control & integration, bureaucracy/multidivisional)
5. Collaboration phase (less rules, teamwork, matrix)

2. MATCHING THE SIZE

− The best suited structure depend on the size of the company (Clegg et al. 2011:520; Aston
school – Pugh & Hickson 1976; Hatch & Cunliffe 2006:114-115)
o Small organizations: simple and functional structure, not bureaucratic or
formalization.
o Large organizations: more formalized & bureaucratic, often centralization,
mechanistic if stable environment, administration overheads are lower (economic;
Blau 1970). Multidivisional form and matrix structure (organic).
− Example


Group exercise (2-3): Have you been part of an organization or a group where there was too
much or too little structure, when we consider the size?

3. MATCHING THE STRATEGY

− The structure has to be in line with the strategy of the company. Structure follows strategy
and strategy changes often leads to structure changes (Chandler 1962).
− Example Maersk
Group exercise (2-3): If you were in charge of a company where the strategy implied selling
cars in Europe, USA and China, what type of organizational structure would you choose
among the 4 general types? Why?

4. MATCHING THE ENVIRONMENT

− What a good structure is depends on the environments
− As a system, the organizations must adapt to its environment, Burns and Stalker 1961
− Example metaphors, the US army
− Key to understand adaption: innovation
− Every unit has to consider its structure, example: production, sales, R&D

Mechanistic form (Burns & Stalker 1961)

− Best in stable and simple environments. Machine Bureaucracy and multidivisional form.
− Types: college libraries, post offices, telephone companies
− Stable environments: specialized parts give high-performance, predictability, 5
accountability
o High horizontal & vertical differentiation
o High formalization & standardization, centralization
o Close supervision
o Vertical communication

Organic form
− Best in complex environments with rapid changes, innovative. Simple structure and matrix
structure.
− Types: hospital emergency rooms, research laboratories, Google, R&D
− Changing environments: adapt, innovative & flexible, not bound by rules, skills &
experiment
o High/complex horizontal & vertical integration
o Low formalization - informal
o Decentralization
o Mutual adjustment & interaction
o Personal expertise & creativity without supervision
o Lateral communication
− Example the Danish state railway DSB, the ‘Wii’-project


Group exercise (2-3): It seems that to be innovative and organic is more important in today’s
society than it was before? Is this true and why?

Based on Burns & Stalker (1961), determine what type of social structure that will be the
most effective, and why, for the following organizations and units:
1. a R&D-unit of a medical firm
2. a software development company
3. a contractor building McDonald drive-through restaurants

5. MATCHING THE TECHNOLOGY

− What type of technology that is utilized influences the choice of structure: organic or
mechanistic structure
− Definition of technology: tools, equipment, method and knowledge that directly or indirectly
contributes
contributes to the production, e.g. ‘sale’ (Hatch & Cunliffe 2006)
to the production, e.g. ‘sale’ (Hatch & Cunliffe 2006)
− The degree of routine (predictability) in work determine what the optimal structure
o Ability to adapt, innovation
o Joan Woodward (1958; 1965) late 1950s & 1960s studied 100 manufacturing
companies: What is the best structure?
What is the best structure?
§ The structure depends on the technology (mechanization) and degree of
routine.
§ Low routine: organic structure Simple and matrix structure.
§ High routine: mechanistic. Functional and multidivisional structure.
o Charles Perrow (1967): ’routinization’ = task variation (number of exceptions) and 6
analyzability (known solutions when dealing with exceptions)
§ Routine, craft (carpenter), engeneering, non-routine (R&D)
− Example R&D Statoil
Group exercise (2-3): Could you mention an example of work where there is much / little
routine? What type of structure is the most optimal here if we consider technology?

− With a strong IT and communication system, a more flat structure is possible
− Example: Statoil

6. MATCHING THE CULTURE & IDENTITY

− Cultural values and norms imply expectations about a certain structure (Hofstede 1970s)
o Power Distance: The extent to which the members of a culture are willing to accept
an unequal distribution of power, wealth and prestige
− Structure is a moderating factor when it comes to collective identity, and have to be
facilitated. Bovim (2010) – ‘competence’, ‘practice’ and ‘product identities’

7. MATCH THE ACTUAL PRACTICE (SYMBOLIC-INTERPRETIVE)

− What structure are the employees actually following? In what way is this different from
the formal and official organizational structure?


− Symbolic interpretive perspective: ‘social structure’ is influenced by the actual structure

that emerge. Socially constructed through interaction
Socially constructed through interaction.
− Formal structures are not always in line with how the organizational behavior actually is
o The structure are subjectively interpreted
o ‘informal structure’
o Example from Bovim 2010
− Communities of practice
o Lave & Wenger (1991): a group of people informally bound together by common
a group of people informally bound together by common
interests & shared repertoires (e.g., routines, vocabularies)
interests & shared repertoires (e.g., routines, vocabularies)
o spontaneously emergent networks (structure)
o common or shared practice, self-designing & self-managing
o crosscut hierarchies & business units
− Important question: How is the structure experienced and understood by the employees?
Does it function in practice?

CONCLUSION
Research show that companies continually needs to adjust to these aspects
− Lex Donaldson (1987), SARFIT model
− Many drivers

Structure is not always easy to change 7

− There is a build in inertia in the structure

Conclusion