Integrating Organization Theory: A Realistic Theory of Leadership

Integrating Organization Theory:A Realistic Theory of Leadership MPA 8002 Organization Theory Richard M. Jacobs, OSA, Ph.D.

Since the time of Francis Bacon (1561-1626)... • an “organization” has been viewed as an achievement, a product of experimentation... …as people hypothesize about what constitutes “best practice” …and devote themselves to improving organizational functioning

Organization is viewed as a product of an objective, scientific method... • where humans control conditions in order to reproduce existing knowledge and reduce anomalies • with the goal of increasing productivity …by moving from defective forms of knowledge to more accurate forms …by working within and replicating a tradition (i.e., functional theory)

“To see what one knows”... a conjecture about organization hypothesis a conceptual schema to be subjected to further testing theory culminating in a body of knowledge tradition …and is used to analyze human beings and their conscious activities

For Kuhn (1986), this paradigm proves somewhat problematic... • the structure of organization constrains the ability for people to think beyond the mediated theories and tradition …as extant knowledge is duplicated and replicated …and unconstrained inquiry is stultified by disciplinary canons

Substantively, inquiring into the issue is a more subjective endeavor (Lonergan, 1972)... • an invitation to participate in discovering within oneself... …previously experienced mental operations and the dynamics that follow from them …the movement from one form of self-understanding to another

…demonstrating the refined capacity to engage in intellectual work of managing and leading an organization on one’s own (i.e., substantive theory)

“To know what one sees”... • achieveinsightinto the essential nature of organization …a matter of questioning …a matter of thinking …a matter of formulating …a matter of testing …a matter of judging

Integrating… …science → reason …understanding → intellect …judgment → ethics

to understand “organization”... …one must investigate antecedents …envision precedents, the content of the subject (the leader as “investigator”) …grapple with novelty in its context …render a decision about the “right” thing to do

Substantively, investigating a human organization... • is an intellectual endeavor by which human beings attempt to achieve intelligent understanding about the ways human beings structure their conscious activities • as this endeavor is fueled by a keen desire to improve the lot of humanity and civilization

requires critically examining existing structures and processes • How do things really work? • How did things come to be this way? • Gather factual data that support these matters. Do not rely on anecdotal information. • Rather than attempting to “reinvent the wheel,” how might elements of the present structure be used to foster organizational change?

requires designing an organizational structure that takes into account its history, experience, and preferred future: • formulate an organizational purpose that responds to an environmental demand, a perceived need, or an opportunity to be seized • mix expertise and generate healthy organizational tension by cross-fertilizing divisions • forge a common commitment to making “working” decisions for which members bear responsibility but, at the same time, are subject to re-assessment and change

Substantively, leading human organizations requires... • developing a comprehensive conception of the organization • What is its mission and vision? • What are its current strategies and goals? • What does its history say about the organization’s strengths and weaknesses? • What opportunities and threats are present?

Conceptualizing organizational leadership... VISION MISSION the motivation a preferred future the opportunities what ought to be the challenges based upon factual data

VISION MISSION PURPOSE

PURPOSE STRATEGY formulate preferred scenario a shared motive with explicit values define the “game plan” explicating why we do what we do

STRATEGY GOALS frames subsequent decisions that will be made at lower levels of the organizational hierarchy action-oriented, “smart” outcomes which implement the strategy the “what” to be achieved

 translate the organizational purpose and strategy into performance goals short and specific S M measurable and meaningful A ambitious yet attainable R realistic and reflect purpose time specific with target dates T

GOALS PROJECTS purposive actions by groups in practice episodes frame subsequent decision making by the various groups closest to the action where frequent decisions must be made the “how” we will do it

PROJECTS TOOLS • purposive activities by individuals (or groups) in practice • episodes actions and routines used in practice episodes to achieve desired outcomes the “who” will do and what they will be doing

VISION GOALS MISSION PROJECTS PURPOSE TOOLS STRATEGIES

GOALS PROJECTS TOOLS

ANALYSIS PROJECTS TOOLS RESULTS

ANALYSIS GOALS PROJECTS RESULTS

GOALS PROJECTS

STRATEGIES GOALS

ANALYSIS STRATEGIES GOALS RESULTS

STRATEGIES GOALS

VISION GOALS MISSION PROJECTS PURPOSE TOOLS STRATEGIES

All the while, leaders endeavor to...  regularize a system for individual and collective accountability, one that translates the organizational purpose, goals, and commitments into tangible achievements The leadership objective: intra-organizational cohesion

adopt the “experimental mentality” associated with practice episodes: to retain what works, to discard what doesn’t, and to refine the structure as needed The leadership objective: flexibility

 report back what is being learned through practice The leadership objective: honest and accurate feedback

To avoid organizational dysfunction... • The leader’s challenge is to integrate vertical coordination with lateral control vertical coordination lateral control

one focus: vertical coordination ...to integrate the various levels of the organization’s formal hierarchy

Tactics for vertical coordination... coercive legitimate power referent expert reward specify the conditions of work rules and policies planning and control systems performance control action planning

a second focus: lateral control …to balance the need for autonomy and responsibility at similar levels in the organization’s formal hierarchy

Tactics to exercise lateral control... opportunities for dialogue, feedback about operations, and the honest exchange of facts, insights, and learning meetings Meeting agendas should forge structural redesign that promises to improve organizational functioning not provide a forum to air personal grievances and interpersonal conflicts.

groupings of stakeholders representing diverse viewpoints task forces A task force is given a specific charge to integrate structures not to be mired in endless debate about current standard operating procedures.

engaging in boundary spanning coordinating roles Boundary spanning enables workers to develop the cross-functional skills needed to coordinate work in a complex organization. This liberates both the organization and its members from co-dependency.

identifying critical linkages between divisions matrix structures Matrix structures identify and link otherwise disassociated divisions in the endeavor to eliminate inter-divisional conflict, confusion, and turf protection.

individuals and groups focusing on a particular area of interest networks Self-organizing networks provide the much needed cross-functionality and geographical diversity to spur creative thinking about organizational issues. However, networks are unwieldy, difficult to control, and offer no guarantees of positive outcomes.

While using these tactics to integrate... Leaders need to be realistic... vertical coordination lateral control

A realistic theory of leadership... • the central issue confronting managers and leaders is that change not stability characterizes human organizations

Some of the significant changes impacting organizational functioning include: size of organization environment age of organization organizational vision information technology core process

However, the single, most significant change impacting an organization is: people

Because organizations are primarily human enterprises... • leaders use “teams” to foster organizational learning (DiBella & Nevis, 1998) a small number of people possessing complementary skills committed to a common purpose, set of performance goals, and approach toward achieving them for which they hold themselves mutually accountable

Integrating Organization Theory: A Realistic Theory of Leadership