Book Review

The Stupidity Paradox:

The Power and Pitfalls of Functional Stupidity at Work
by
Mats Alvesson and André Spicer

Course: Organizational Behaviour & Leadership (70337)

Student name: Mohammad Hasan Ashraf

ERP: 04230

About the authors

Mats Alvesson
Mats Alvesson is a Swedish business scholar and professor at Lund University who is well-known for his
contributions in forming the critical management studies field, particularly organization and leadership.
He obtained his Ph.D. in psychology from Lund University in 1983 and holds a chair in the Business
Administration department at Lund University School of Economics and Management. In addition to his
position at Lund, Alvesson is also an honorary professor at University of Queensland Business School and
a visiting professor at Stockholm Business School.

André Spicer
André Spicer is a Professor of Organisational Behaviour at Bayes Business School, which is part of City,
University of London. He is originally from New Zealand and has become an expert in fields such as
Leadership, Corporate Social Responsibility, and Organisational Behaviour. Professor Spicer founded the
Centre for Responsible Enterprise, called ETHOS, at Bayes. He began his career at the University of
Warwick and eventually became a Professor at Bayes Business School. His expertise in topics such as
wellbeing, employee identity, organisational culture, leadership, new organisational forms,
organisational politics, and work space has been showcased in many top academic journals.
Synopsis
In 'The Stupidity Paradox', Mats Alvesson and André Spicer delve into the fascinating and often
overlooked concept of 'functional stupidity' in the workplace. The book offers a fresh perspective on
how organizations function. The book argues that functional stupidity is a prevalent and often useful
phenomenon in the workplace. The authors define functional stupidity as the deliberate avoidance of
thinking critically, and they argue that it can help individuals and organizations to navigate complex and
uncertain environments without becoming overwhelmed. The book is organized into three parts.

Part 1
Part 1 of the book sets the stage for the authors' exploration of functional stupidity by providing a
theoretical framework for understanding the concept. The authors argue that functional stupidity can be
thought of as a kind of "intellectual anesthesia" that allows individuals to perform their jobs without
being overwhelmed by the complexity and ambiguity of the tasks they are performing. To support this
argument, the authors explore the origins of functional stupidity and its relationship to other related
concepts such as cognitive dissonance and groupthink. They describe how functional stupidity can be
both conscious and unconscious, and they distinguish between different types of functional stupidity,
including "structural" and "cultural" forms.

The central idea of the first chapter ‘The Knowledge Myth’ is the prevailing belief in modern society that
knowledge is always a good thing and that more knowledge is always better. This is particularly
prevalent in the workplace, where employees are often encouraged to constantly learn and improve
their skills in order to become more productive and successful. However, this focus on knowledge can
sometimes be counterproductive, leading to an excessive emphasis on specialization and an over-
reliance on "experts" who may not be able to see the big picture. It can also contribute to a culture of
arrogance and elitism, creating a sense of superiority among those who possess it, leading them to
dismiss alternative viewpoints and discourage critical thinking. They wrote, "The knowledge myth can be
seen as a form of intellectual snobbery, where those who possess knowledge are seen as superior to
those who do not".

In the second chapter, ‘Not so smart’, it is emphasized that intelligence is not always a reliable predictor
of success in the workplace. It is an antithesis to the traditional view that intelligent people are more
likely to succeed in their careers and that organizations should prioritize hiring the smartest candidates.
However, intelligence can sometimes be a hindrance, leading individuals to overthink problems or
become bogged down in details. Other factors, such as emotional intelligence and social skills are often
overlooked when hiring, leading to a lack of diversity and creativity in the workplace. They wrote, "Our
fixation with intelligence can sometimes be misleading. Intelligence is not always the key to success, and
sometimes it can even be a hindrance"

The gist of the third chapter, ‘Functional stupidity’, can be explained in one quotation, "Functional
stupidity is a willingness to suspend critical reflection in the pursuit of collective goals. It is a way of
functioning in which, in the pursuit of common goals, critical questions are not asked, assumptions are
not questioned and information that might challenge the organization's self-image is ignored". While the
common perception of stupidity in the workplace is of thoughtless behavior that leads to disasters,
authors suggests that most stupidity in corporate life takes the form of functional stupidity. This involves
narrow thinking that has functional consequences in the short term, and is often accepted and
rewarded. Functional stupidity can be beneficial in certain contexts, such as when organizations need to
make quick decisions in uncertain situations or when individuals need to work together to achieve a
common goal. However, functional stupidity can have negative consequences as well when it becomes
too pervasive or when individuals become too entrenched in their ways of thinking. Mats Alvesson and
André Spicer discuss the phenomenon of functional stupidity in corporate life. The authors distinguish
between pure stupidity, which is rare and easily identifiable, and functional stupidity, which is more
common and can lead to positive outcomes. Three key aspects of functional stupidity are highlighted,
including a lack of reflexivity, justification, and substantive reasoning. Reflexivity refers to the failure to
question dominant beliefs and expectations, while justification involves not seeking a good reason or
cause for actions. Substantive reasoning involves ignoring the wider consequences of actions and
focusing instead on narrow, technical issues. The authors provide examples of how these aspects of
functional stupidity can manifest in organizational life. They argue that functional stupidity can lead to
positive outcomes in some cases, but it can also lead to missed opportunities and negative
consequences in others. The authors suggest that it is important for individuals and organizations to be
aware of functional stupidity in order to recognize when it is occurring and to take steps to counteract it.

Part 2
Part 2 discusses five kinds of functional stupidity: leadership-induced stupidity, structure-induced
stupidity, imitation-induced stupidity, branding-induced stupidity and culture-induced stupidity.

In the fourth chapter, titled ’Leadership-induced Stupidity’, it is explored how leaders can sometimes
become blinded by their own power and status, leading to a lack of empathy and a disregard for the
needs of others. The chapter argues that leader stupidity can result in poor decision-making and a lack
of accountability. Such a stupidity can be witnessed when leaders are more focused on maintaining their
power and status than on achieving positive outcomes for their organizations. The case of Enron is a
prime example, where the company's leaders were more focused on maintaining their own power and
prestige than on ensuring the long-term success of the company. This led to a culture of deceit and
dishonesty that ultimately led to the company's downfall. Leader stupidity can also be seen in situations
where leaders become too fixated on a particular strategy or goal, leading them to ignore feedback from
others or overlook warning signs.

The fifth chapter, ‘Structure-induced Stupidity’, focuses on how the structures and processes within
organizations can create conditions that lead to functional stupidity. Organizations often prioritize
efficiency and predictability over creativity and innovation, which can lead to a lack of critical thinking
and a reluctance to challenge the status quo that can result in missed opportunities and an inability to
adapt to changing circumstances. The success of Nokia in the early 2000s led to a rigid organizational
structure and a culture of complacency that led to the company failing to keep up with changes in the
smartphone market and ultimately losing its dominant position in the industry. Structure-induced
stupidity can also be seen in situations where employees are expected to follow strict procedures or
protocols without questioning their effectiveness or appropriateness. The authors suggest, “To avoid
structure-induced stupidity, organizations need to create structures and processes that encourage
critical thinking, creativity, and adaptability, rather than simply prioritizing efficiency and predictability."

The sixth chapter, “Imitation-induced Stupidity”, argues that organizations often look to imitate
successful companies or practices without fully understanding the context or reasoning behind those
practices. In a lot of circumstances, such imitations may not be appropriate or effective for the
organization. As a solution, the authors say, “To avoid imitation-induced stupidity, organizations need to
take a critical approach to adopting practices and be willing to challenge established ways of doing
things.”

Subequently, ‘Branding-induced Stupidity’ is talked about in the seventh chapter. In the pursuit of
building and maintaining their brand image, organizations often lose sight of other important aspects of
their business, such as innovation and customer service. This happens due to an overemphasis on style
over substance. As a remedy to the situation, the authors say, “To avoid branding-induced stupidity,
organizations need to balance their focus on branding with a commitment to innovation and customer
service."

The eighth chapter of the book discusses ‘Culture-induced Stupidity’ that outlines how organizational
culture can shape individuals' behavior and thinking to the point where they become unable to question
or challenge the status quo. The authors say, “Culture-induced stupidity can result in a lack of critical
thinking and an inability to adapt to changing circumstances.” By recognizing the potential for culture-
induced stupidity and actively working to foster a culture of openness and innovation, organizations can
be better equipped to adapt and succeed in an ever-changing environment.

Part 3
Part 3 is about managing stupidity and contains just one chapter titled ‘Stupidity Management and How
to Counter It’. While we are encouraged to be smart and knowledge-intensive, qualities such as
innovation and creativity disrupt stability. That is why most efficient organizations discourage these
attributes. This is because smart people can see the shallowness in organizational practices, they can see
through shams and ask hard questions. They may ask for unreasonable equality, which can create
discomfort for the entire organization.

These potential threats call for stupidity management. Stupidity management involves various tools to
suppress critical thinking. As an example, the authors quote the vice chancellor of one of their
universities as calling an end to decisions being viewed as grounds for debate.

However Functional stupidity, whether too much or too little is detrimental. Lack of it can destabilize the
work environment, harm peoples’ sense of self, and blur a sense of direction for the organization.
Whereas too much of it might create an environment of conformist employees, that do not have
innovative ideas or clever strategies for the company’s future. The question is what does the manager
want, more functionality and more stupidity? Or do they want more smartness and reduced
functionality?

Decision-making in industries often involves the most functional stupidity because, decision-making is
made simpler when people are not involved in the process and are simply told what to do, and how to
do it. However functional stupidity in decision-making blinds us to different dimensions of an issue and
its possible outcomes for personal and organizational growth.

Increased conformity and a closely-knit work culture where colleagues began to have a similitude in
their thinking and behavior, results in diminished thinking capacity and redundancy. Defining ourselves
in secure and stables ways solidifies our sense of identity but these identities are volatile as someone
who considers himself to be a catalyst for change can be viewed by an outsider as a puppet to the
organization he is working for, our claims are not as reliable as we may deem for them to be.
Some of the tricks used by managers to encourage functional stupidity are further discussed in this
chapter:

There are four common methods that the authors suggest are worth highlighting:

1. authority,
2. seduction,
3. naturalization, and
4. opportunism.

The first method, authority, involves managers using their position in the hierarchy and the ability to
distribute rewards and punishments to discourage employees from thinking too much. This can be done
by reminding them that the boss knows best and that subordinates should follow policies and orders
without questioning them. The second method, seduction, involves persuading people by using
attractive ideas or arrangements such as impressive PowerPoint presentations and buzzwords. The third
method, naturalization, involves making even the strangest practices appear to be natural by convincing
colleagues that "there are no alternatives" and that doing things the way everyone else does them is
self-evident. The fourth method, opportunism, involves appealing to people's self-interest, whereby
incentives are stacked up in the right way to encourage employees to avoid asking too many difficult
questions. These methods are often used in combination, and when they work well, they can help
minimize anxiety, avoid feelings of emptiness, sidestep doubt, and neutralize moral dilemmas. Each
method is used more or less depending on the type of organization, with hierarchical organizations like
the military relying on authority, firms led by transformational leaders relying on seduction, public
sector organizations relying on naturalization, and professional service firms relying on opportunism.

The authors have used the example of the IT consultancy firm CCC. The company used seduction and
socialization to encourage conformity, discourage critical thinking and create a sense of community
among its employees. This led to positive outcomes such as increased motivation, loyalty, and pride, but
also negative consequences such as a reduced ability to learn, difficulties dealing with crises, and a lack
of critical scrutiny. The text also argues that organizations often suffer from too much functional
stupidity, caused by grandiosity and the myth of relentless positivity. To overcome this, the text suggests
dropping the myth of positivity and promoting critical thinking.

In the discussion of exercising negative capabilities, the authors discuss the practice of critical thinking, a
skill most people can engage in. The first step is observation, which requires a good understanding of
what is going on in a situation, beyond pre-established categories such as leadership or decision-making.
Good observers need to note what is not so obvious and look beyond common sense. Premature
problem definition and solutionism are great pitfalls that must be avoided. Once a good understanding
of the issues is achieved, the next step is to interpret how others understand the situation. This involves
gathering people's views and trying to start seeing things from their perspective. By asking a range of
people, it becomes clear that the same issue can appear radically different depending on whom you talk
with. Myopia is a trap one must avoid at this stage, as it is easy to feel comforted in one's perspective.
The final step is questioning, which involves asking disruptive questions such as, "What are the
assumptions we are making here?", "What are the reasons why we are doing this?", and "What are the
wider outcomes or broader meaning of this?" By beginning to ask these disruptive questions, many of
the assumptions that go unquestioned are revealed, and people can begin to challenge and transcend
fixed ideas.
The question now is how can we eliminate stupidity enough to have innovative forces of thinking still
active in corporate environments and otherwise. On this note, the heading of dispelling stupidity and
anti-stupidity management outlines several methods for encouraging critical thinking and reflection.
One way is to establish reflective routines, such as asking critical questions and running "what the hell"
sessions, which can help individuals and groups to identify questionable corporate practices and
consider alternative ways of thinking. Another approach is to appoint a devil's advocate, whose job is to
challenge the status quo and pose counter-arguments. Post-mortems and post-mortems are also
effective tools for learning from failures and anticipating potential problems before they occur. Finally,
newcomers and outsiders can bring fresh perspectives and ask taboo questions, which can reveal new
insights and challenge established thinking within an organization

After discussing a rather dark picture of corporate organization, the author ends by quoting an anti-
stupidity management example from a Swedish hospital led by a reflective and critically minded head,
Stella. Stella insists on not spending the entire budget and stresses the importance of using resources
well. She emphasizes that sustainable savings can be made without affecting patient care and that being
financially effective is essential for providing more healthcare where it is needed. The text argues that
anti-stupidity management and taking responsibility for resource use could be a solution to many
resource problems in organizations, including in the healthcare sector.
Personal Comments
The writing style of the authors, Mats Alvesson and André Spicer, is clear and concise, making it easy for
readers to follow their arguments and ideas. They use a combination of academic research and real-
world examples to support their arguments, making the book accessible to both academic and general
audiences.

The authors also use humor and irony to highlight the absurdity of certain organizational practices and
cultures. This helps to engage readers and adds an element of entertainment to the book's more serious
subject matter.

Overall, the authors' writing style is effective in conveying their message and ideas to readers. They
strike a balance between academic rigor and accessibility, making "The Stupidity Paradox" an engaging
and thought-provoking read.

"The Stupidity Paradox: The Power and Pitfalls of Functional Stupidity at Work" is an essential read for
professionals and individuals interested in understanding the underlying causes of dysfunctional
behaviors in organizations. The book provides a unique perspective on how functional stupidity can
manifest in organizations and the negative consequences it can have on organizational performance.

The book's target audience includes professionals across different industries and organizational levels,
including managers, executives, consultants, human resource practitioners, and academics. The book's
insights are relevant to anyone who is involved in decision-making and problem-solving in organizations.

For managers and executives, the book provides valuable insights on how to identify and address
functional stupidity in their organizations. It helps them understand how organizational cultures,
leadership styles, and decision-making processes can impact employee behavior and decision-making.

For consultants and human resource practitioners, the book offers a framework for diagnosing and
addressing dysfunctional organizational behavior. It provides a valuable tool for identifying and
addressing organizational issues and facilitating change.

Academics and researchers can benefit from the book's interdisciplinary approach, drawing on insights
from management, sociology, psychology, and organizational behavior. It provides a foundation for
further research into the underlying causes of functional stupidity and its impact on organizational
performance.

Overall, "The Stupidity Paradox" is a valuable resource for professionals and individuals interested in
improving organizational performance. It challenges readers to question established practices and ways
of thinking and provides a framework for promoting innovation and adaptation in organizations. The
book is a must-read for anyone looking to gain a deeper understanding of the complexities of
organizational behavior and the factors that contribute to organizational success.