Theories of Practice: The Functions of the Chief Executive Officer. MPA 8002 The Structure and Theory of Human Organization Richard M. Jacobs, OSA, Ph.D. At a crisis in my youth, my father taught me the wisdom of choice:. …to try and to fail is at least to learn.
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The Structure and Theory of Human Organization
Richard M. Jacobs, OSA, Ph.D.
my father taught me the wisdom of choice:
…to try and to fail is at least to learn
…to fail to try is to suffer the inestimable loss of what might have been.
Chester I. Barnard (1938)
For the greater part of the 20th century, the alleged objectivity associated with the assumptions and concepts of scientific management have guided most inquiry into human organizations.
Structural theories of practice, for example, rationalize human organizations and their functioning, emphasizing the proper alignment of people, process, and technology...
…suggesting that there exists “one best way” to manage and lead all human organizations.
the general social setting within which work is completed
division of labor
the particular work to be completed as part of an organic system of work
the emphasis upon individuals and groups to contribute to the organic system of work
For Chester Barnard, while structural theories of practice offer the promise of improving organizational functioning, other factors are absolutely essential to organizational survival...
…factors including: practice offer the promise of improving organizational functioning, other factors are absolutely essential to organizational survival...
For Barnard, organizational survival is not dependent solely upon structure but more so upon maintaining a dynamic equilibrium in a continuously fluctuating environment of physical, biological, and social materials, elements, and forces.
All of which calls for an individual who possesses an abiding awareness of the need to adjust the processes internal to the organization continuously.
…a single, unique, independent, isolate, whole entity
…embodying innumerable forces and materials past and present which are the physical, biological, and social factors
…to which are superadded the limited power of choice which results in purpose and for which one bears personal responsibility
…the function of the total situation or the combination of physical, biological, or social factors when viewed by individuals from the standpoint of a purpose
An organization’s design as a whole can only be changed by operating on one set of factors at a time (the “strategic factor”) and dealing with the impact this change will have on the other sets of factors.
…overcoming a limitation is a means to an end, inducing within an individual the necessity for cooperation with others
…or, making the decision that one’s limitation cannot be overcome, the individual decides to drop that end
Cooperation inculcates a shared “purpose” for engaging in organized activity towards an end.
…an amalgam composed of the impersonal, coordinated activities of human beings
…the concrete social process by which social action is accomplished
…a change in the relationship of one part to any or all of the others changes the cooperative system
…this social contribution elicits physical energy from other participants in the cooperative system
…the physical energy, in turn, is then converted into material at desired places.
For Barnard, then, it is not correct to impute to any individual a definite product.
Rather, the increase (or decrease) of material product (the “value added”) results from the combination or coordination of efforts.
It is also not correct, in Barnard’s thought, to impute to any individual a particular contribution.
The only statement that one can make about the significance of an individual’s particular contribution is in terms of its differential effect upon the entire cooperative system.
…this reality illuminates the creative side of managing and leading human organizations
…successful managers and leaders secure the appropriate combination of the elements of organization to produce utilities that allow the organization to endure
…a system of consciously coordinated individual human activities or forces
…the function of which is:
…various personal and impersonal utilities
1) individuals capable of communicating with one another
2) each possessing a willingness to serve
3) each sharing a common purpose
…that is, the willingness of individuals to contribute their efforts to the cooperative system
…this is indispensable to an organization’s effective and efficient functioning and survival.
…a cooperative system composed of physical, biological, and personal systems
…which prescribes, guarantees, and limits the purpose and rights of subordinate organizations, upon whom the subordinate organizations are dependent
…the concrete social process by which social action is accomplished
…the system of consciously coordinated activities or forces of two or more persons
…the aggregate of personal contacts and interactions and the associated groupings of people
…provide a means of communication, of cohesion, and of protecting the integrity of the individual that is necessary to the operation of a formal organization
the decision to cooperate
…a limited power of choice
…presupposing the capacity for self-determination
…preserving personal integrity
…upholding personal, ethical, and legal responsibility for one’s choices
…the exercise of free will requires individuals to develop a “purpose”
…which, in turn, provides a “motive” or “rationale” to engage in cooperative ventures that make other choices possible
…an expression of human will and purpose in a physical environment
…the necessary ability to translate purpose into terms of the concrete actions required to effect it
…reduces confusion and indecision as these relate to the timing of actions
…creates the necessity for a leader
…the character of a communication in a formal organization by virtue of which the communication is accepted by a contributor to or “member” of the organization as governing the action that individual contributes
the advantage of placement in the organizational hierarchy
the advantage of possessing the respect of individuals in the organization
…objective authority cannot be imputed to persons in organizational positions unless subjectively they are first dominated by the organization as respects their decisions
…which fosters organizational effectiveness and efficiency as well as survival
…the matter of discriminating important strategic factors
...and redefining or changing the organization’s purpose
...on the basis of an estimate of future results of action in the existing situation
...in light of history, experience, or knowledge of the past
personal decisions: decisions by the individuals affected whether or not to contribute to a cooperative effort as a matter of a personal choice
impersonal decision: a response made by individuals whose role and intent is to effect the organizational system as a whole
…that is, the aptness of a decision depends upon those who possess the knowledge of facts and of organizational purpose
…the ability to juggle subjective (personal) motives and objective (impersonal) purpose so as to develop a surplus of cooperation among the people whose social contributions constitute the organization
…this dynamic equilibrium is disturbed by false ideologies, particularly those held by managers/leaders, which...
False ideologies can become destructive factors, inhibiting further cooperation.
the maintenance of an equilibrium of organizational activities through the satisfaction of the motives of individuals sufficient to induce cooperative action
…that is, the executive capacity to offer effective inducements and in sufficient quantity to maintain organizational equilibrium
the appropriateness of the means selected under the conditions of the organization as a whole for the accomplishment of a specific desired end
…these objectives are impersonal, that is, these objectives aim at the system of cooperation as a whole
…the impersonal reason for which the formal organization exists
Purpose is experienced as a belief that—as a consequence of one’s limitations and reduced choices and, then, through the exercise of will—it is better to cooperate in “trying” or “attempting” something impersonal to fulfill one’s personal motive than it is to drop that end.
…but the bridge between the past and the future which functions only as it rests upon the present
…as all who contribute to the system of efforts accept and act upon a shared purpose
…the aggregate of organizational actions are a consequence of decisions
…decisions made by those “closest to the action” relative to the organization’s purpose and environment
...and resulting in closer and closer approximations in concrete acts
…the willingness to accept orders specifying action because the individual feels indifferent about the order in so far as authority is concerned
The zone of indifference will be wider or narrower depending upon the degree to which the inducements exceed the burdens and sacrifices determining the individual’s adhesion to the organization.
…a limitation that, when controlled in the right form, at the right place, and at the right time, will establish a new system or set of conditions which meets the organizational purpose
To determine what element should be changed or is missing is the first step in defining what action is required.
Decision, then, is related to action which sets into motion the dynamic and developmental aspects of organizational change.
The structural frame’s assumption of cause and effect in an absolute sense is not pertinent to organizational analysis...
…the only measurable variations in the effect of single factors is in terms of strategic factors
…that is, those controllable alternatives which effect changes in the system as a whole not the contributions of any single factor
The strategic factor, then, is the center of the environment of decision. It is the point at which choice applies. To do or not to do this, that is the question.
The determination of the strategic factor is itself the decision which reduces purpose to a new level, compelling the search for a new strategic factor in the new situation.
It is the series of strategic factors and the actions that directly relate to the strategic factors that determine the course of organizational events, not the general decisions.
As organizational members in subordinate positions refine the organizational purpose in practicable terms and conditions.
For Barnard, the determination of the strategic factors that will stimulate cooperation is a matter of sense not of science, of feeling the proportions of the relationship of heterogeneous details to the organic whole...
…the essential process is “sensemaking” (Weick, 1995), that is, envisioning the organization as a whole and the total situation relevant to it.
When the process of managing and leading organizations is viewed as integrating the elements of organization into a whole, of balancing local and broad considerations with general and specific requirements...
…the symbolic frame provides a helpful theoretical perspective for learning about the actual factors influencing organizational culture
…transforming managing and leading organizations... viewed as integrating the elements of organization into a whole, of balancing local and broad considerations with general and specific requirements...
…the pool of values as assessed by the organization as a social system
…as these values impact coordinated action
…the ability for an executive to communicate essential information regarding or governing specific action
…normally less than 15 individuals and preferably 5 or 6 individuals
…at the lowest levels of a formal organization, where ultimate authority resides, individuals make personal decisions reflecting their willingness to contribute to a cooperative effort
… the power of a particular private code of ethics to control the conduct of individuals in the presence of strong contrary desires or impulses
…the personal capacity for exercising authority that affirms decisions and lends quality and ethics to the coordination of organized activity through the formulation and inculcation of organizational purpose
…the technical attainments and ethical complexities associated with executive responsibility
…the objective field within which action must take place
…the decision-making process as it relates to the objective field where the action will take place
…the aesthetic and intuitive, not conscious, analysis of factors
first: identifying the individual’s...
second faith...: getting individuals to focus on the elements of the ethical sector...
appraisals of utility
norms of conduct
third faith...: inducing cooperation among all who contribute to the organization as a whole
…requires managers/leaders who create faith
…which is the catalyst by which the living system of human efforts continues its incessant interchanges of energies and satisfactions
Ethical creativeness is the highest expression of personal responsibility for it moves individuals beyond a concern for doing things right and towards the consideration of doing right things.
...by substituting a new action which avoids the conflict
...or providing an ethical justification for an exception or compromise
Creative ethics emphasizes personal responsibility in the form of a sincere and honest conviction that what one does for the good of the organization one personally believes is right.
1) to secure, create, and inspire “morale” dilemmas (Cuban, 1992)
2) to inculcate points of view, fundamental attitudes, and loyalty to to the cooperative system as a system of objective authority
Ethical creativeness results in subordinating individual interest and the minor dictates of personal ethical codes to the good of the cooperative whole.
Requires leaders and managers who...
formulate, redefine, break in to details, and decide upon the innumerable simultaneous and progressive actions that are the stream of syntheses constituting purposive actions
The executivetheory that managers and leaders can utilize in practice episodes...
...as this theory of practice provides managers and leaders a frame of reference to inform thinking about the nature of human organization making...
…and the importance of inculcating a shared purpose that develops an ethical code guiding cooperative efforts toward organizational ends.
AN EXECUTIVE THEORY SCENARIO develops an ethical code guiding cooperative efforts toward organizational ends.
Executives endeavor to foster cooperative efforts toward shared purposes within the organizations. Executives are incessant as they struggle to integrate purpose and action so that the cooperative efforts of the organization will exceed the ability of any individual and overcome individual limitations.
MANAGEMENT AND LEADERSHIP develops an ethical code guiding cooperative efforts toward organizational ends.
IN AN EXECUTIVE THEORY SCENARIO
Executives believe that the most important part of their job is to inculcate a shared purpose so that a group of diverse individuals will effectively and efficiently contribute their efforts to the cooperative endeavor called “organization.” This purpose inspires faith in the organization and develops loyalty as individuals engage in ethical actions that enable every member of the organization to overcome individual limitations. Effective executives create a synergy uniting the many “parts” so that the organization, as a “whole,” fulfills its purpose and is capable of adapting as necessary.