Organizational Theory

"By far the most difficult skill I learned as a C.E.O. was the ability to manage my own psychology. Organizational design, process design, metrics, hiring and firing were all relatively straightforward skills to master compared with keeping my mind in check."

"Conflict is viewed as the active striving for one's own preferred outcome which, if attained, precludes the attainment by others of their own preferred outcome, thereby producing hostility."

"Neurotic impostor CEOs are also highly likely to become addicted to consulting companies because reassurances provided by “impartial” outsiders compensate for the executives’ feelings of insecurity."

"Being a CEO is the nuts! A whole jumble of thoughts come to mind: Over the top. Wild. Fun. Outrageous. Crazy. Passion. Perpetual motion. The give-and-take. Meetings into the night. Incredible friendships. Fine wine. Celebrations. Great golf courses. Big decisions in the real game. Crises and pressure. Lots of swings. A few home runs. The thrill of winning. The pain of losing. It's as good as it gets! You get paid a lot, but the real payoff is in the fun."

"Getting every employee's mind into the game is a huge part of what a CEO job is all about. Taking everyone's best ideas and transferring them to others is the secret. There's nothing more important."

"The dream of every CEO is to have one standardized, integrated, flexible and manageable landscape of aligned business and IT processes, systems and procedures. Having complete control over all projects implementing changes in that landscape so that they deliver solutions that perfectly fit the corporate and IT change strategies, makes this dream complete. The reality for many large organizations is quite the opposite. Many large organizations struggle to keep their operational and change costs in control. Key reasons are the inflexibility and enormous complexity of their business and IT structures, processes, systems, and procedures, often distributed across lines of business (LoB) and business divisions (BD) spread out over various regions, countries or even continents.., Over the last decade, Enterprise Architecture (EA) has been one of many instruments used by organizations in their attempt to get grip on the current operational environment and the implementation of changes. EA provides standardization, and sets a clear direction for the future to guide changes."

"Successful innovators have CEOs who act as technology evangelists."

"The best CEOs I know are teachers, and at the core of what they teach is strategy."

"Social workers help people increase their capacities for problem solving and coping, and they help them obtain needed resources, facilitate interactions between individuals and between people and their environments, make organizations responsible to people, and influence social policies."

"Executives are constrained not by resources but by their imagination."

"For three decades I have had the privilege of working with more than 100 CEOs and their management teams. One of the most important lessons I've learned from these CEOs is that business is more than strategy, competency, and return on investment. A large part is about the "soft" issues like relationships, personal growth, and (yes, I'll say it) feelings! Henry Ford may have put it best when he said, "A business that makes nothing but money is a poor business." I would venture to add that a CEO who improves only the bottom line is a poor CEO."

"Your career is your business, and you are its CEO."

"By far the most difficult skill I learned as a C.E.O. was the ability to manage my own psychology. Organizational design, process design, metrics, hiring and firing were all relatively straightforward skills to master compared with keeping my mind in check."

"In recent years, probity has eroded. Many major corporations still play things straight, but a significant and growing number of otherwise high-grade managers — CEOs you would be happy to have as spouses for your children or as trustees under your will — have come to the view that it’s okay to manipulate earnings to satisfy what they believe are Wall Street’s desires. Indeed, many CEOs think this kind of manipulation is not only okay, but actually their duty. These managers start with the assumption, all too common, that their job at all times is to encourage the highest stock price possible (a premise with which we adamantly disagree). To pump the price, they strive, admirably, for operational excellence. But when operations don’t produce the result hoped for, these CEOs resort to unadmirable accounting stratagems. These either manufacture the desired “earnings” or set the stage for them in the future. Rationalizing this behavior, these managers often say that their shareholders will be hurt if their currency for doing deals — that is, their stock — is not fully-priced, and they also argue that in using accounting shenanigans to get the figures they want, they are only doing what everybody else does. Once such an everybody’s-doing-it attitude takes hold, ethical misgivings vanish. Call this behavior Son of Gresham: Bad accounting drives out good."

"The organizational design is the responsibility of the CEO, and the designer's role is to act as midwife to aid in the rebirth of the organization."

"At the heart of this culture is an understanding that an organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive business advantage."

"The study of human relations in business and the study of the technology of operating are bound up together."

"Once a company has adapted to a new environment, it is no longer the organization it used to be; it has evolved. That is the essence of learning."

"Peter Senge (1990), Fritjof Capra (1996), Peter Checkland (1999), and other researchers have transferred systems thinking principles and theories into practice by applying them to real-world organizational- wide issues, thus encouraging the creation and development of learning organizations."

"A learning organization is an] organization that is continually expanding its capacity to create its future."

"Learning can be defined as occurring under two conditions. First, learning occurs when an organisation achieves what it intended; that is, there is a match between its design for action and the actual outcome. Second, learning occurs when a mismatch between intention and outcome is identified and corrected; that is, a mismatch is turned into a match.... Single-loop learning occurs when matches are created, or when mismatches are corrected by changing actions. Double-loop learning occurs when mismatches are corrected by first examining and altering the governing variables and then the actions."

"Learning organizations [are] organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together."

"In a learning organization, leaders are designers, stewards, and teachers. They are responsible for building organizations where people continually expand their capabilities to understand complexity, clarify vision, and improve shared mental models – that is, they are responsible for learning."

"As we, the leaders, deal with tomorrow, our task is not to try to make perfect plans. Our task is to create organizations that are sufficiently flexible and versatile that they can take our imperfect plans and make them work in execution. That is the essential character of the learning organization."

"Institutions are social structures that have attained a high degree of resilience. [They] are composed of cultural-cognitive, normative, and regulative elements that, together with associated activities and resources, provide stability and meaning to social life. Institutions are transmitted by various types of carriers, including symbolic systems, relational systems, routines, and artifacts. Institutions operate at different levels of jurisdiction, from the world system to localized interpersonal relationships. Institutions by definition connote stability but are subject to change processes, both incremental and discontinuous."

"If political institutions do not meet the needs of the people, if the people finally believe that those institutions do not express their own values, then those institutions must be discarded. It is wasteful and inefficient, not to mention unjust, to continue imposing old forms and ways of doing things on a people who no longer view those forms and ways as functional."

"Institutional theories of organization provide a rich, complex view of organizations. In these theories, organizations are influenced by normative pressures, sometimes arising from external sources such as the state, other times arising from within the organization itself. Under some conditions, these pressures lead the organization to be guided by legitimated elements, from standard operating procedures to professional certification and state requirement, which often have the effect of directing attention away from task performance... Institutional theories of organization have spread rapidly, a testimony to the power of the imaginative ideas developed in theoretical and empirical work."

"Social, political and economic institutions have become larger, considerably more complex and resourceful, and prima facie more important to collective life. Many of the major actors in modern economic and political systems are formal organizations, and the institutions of law and bureaucracy occupy a dominant role in contemporary life."

"Contemporary institutional theorizing in the field of organizations dates back thirty-odd years. This particularly describes what are called new or neo-institutionalisms. These terms evoke contrasts with earlier theories of the embeddedness of organizations in social and cultural contexts, now retrospectively called the ‘old institutionalism’ (Hirsch & Lounsbury, 1997; Stinchcombe, 1997). They went through a period of inattention, so that when institutional thinking came back in force after the 1960s, it seemed quite new. Institutional theories, as they emerged in the 1970s, received much attention in the field, along with other lines of thought emphasizing the dependence of modern organizations on their environments. Perhaps surprisingly, they continue to receive attention, and seem to retain substantial measures of vigor."

"Institutions are the humanly devised constraints that structure political, economic, and social interaction. They consist of both informal constraints (sanctions, taboos, customs, traditions, and codes of conduct), and formal rules (constitutions, laws, property rights). Throughout history, institutions have been devised by human beings to create order and reduce uncertainty in exchange."

"Institutions are human behavior, and they are, therefore, to be explained by the characteristics of that behavior."

"During the last fifty years, society in every developed country has become a society of institutions. Every major social task, whether economic performance or health care, education or the protection of the environment, the pursuit of new knowledge or defense, is today being entrusted to big organizations, designed for perpetuity and managed by their own managements."

"Institutions is a verbal symbol which for want of a better describes a cluster of social usages. It connotes a way of thought or action of some prevalence and permanence, which is embedded in the habits of a group or the customs of a people."

"As with many institutions the outward ceremony remained unpretentious as long as the institution was living and meaningful, and only after it lost much of its importance was external pomp substituted for internal meaning."

"In advanced capitalist society the state helps shape the institutional organization of the economy. We show, how the state shapes the economy through the manipulation of property rights. The state's actions create pressures for change that lead actors to look for new forms of economic organization. The state also assists, leads, or constrains the process of selecting new forms of economic organization that emerge in response to these pressures, and it may or may not ratify these new forms. In contrast to the conventional literature on state economy relations that characterizes the U.S. state as having a weak capacity for successful economic intervention, we argue that property rights actions afford the U.S. state a previously unrecognized source of strength. Data come primarily from historical case studies of organizational transformation in the steel, automobile, commercial nuclear energy, telecommunications, dairy, meat-packing, and railroad sectors."

"In recent years economists and historians have increasingly turned their attention to modern economic institutions. Economists such as Edward S. Mason, A. D. H. Kaplan, John Kenneth Galbraith, Oliver E. Williamson, William J. Baumol, Robin L. Marris, Edith T. Penrose, Robert T. Averitt, and R. Joseph Monsen, following the pioneering work of Adolph A. Berle, Jr., and Gardiner C. Means, have studied the operations and actions of modern business enterprise. They have not attempted, however, to examine its historical development, nor has their work yet had a major impact on economic theory. The firm remains essentially a unit of production, and the theory of the firm a theory of production."

"An institution is defined as collective action in control, liberation and expansion of individual action."

"One of the undesirable by-products of the factory system was the frequent abuse of unskilled workers, including children, who were often subjected to unhealthy working conditions, long hours, and low pay. The appalling conditions spurred a national anti-factory campaign. Led by Mary Parker Follett and Lillian Gilbreth, the campaign gave rise to the “human relations” movement advocating more humane working. Among other things, the human relations movement provided a more complex and realistic understanding of workers as people, instead of merely cogs in a factory machine."

"Facetiously, someone has remarked that human relations are whatever those interested in human relations study. If one may judge by the divergent approaches of a number of research groups, no single definition is at present possible."

"The Hawthorne researchers became more and more interested in the informal employee groups which tend to form within the formal organisation of the Company, and which are not likely to be represented in the organisation chart. They became interested in the beliefs and creeds which have the effect of making each individual feel an integral part of the group and which make the group appear as a single unit, in the social codes and norms of behaviour by means of which employees automatically work together in a group without any conscious choice as to whether they will or will not co-operate. They studied the important social functions these groups perform for their members, the histories of these informal work groups, how they spontaneously appear, how they tend to perpetuate themselves, multiply, and disappear, how they are in constant jeopardy from technical change, and hence how they tend to resist innovation."

"Institutional theory presents a paradox. Institutional analysis is as old as Emile Durkheim's exhortation to study 'social facts as things', yet sufficiently novel to be preceded by new in much of the contemporary literature."

"Human relations today has its iconoclasts and believers, critics and supporters, detractors and zealots. This is not surprising; for during the past twenty years, numerous research groups have burgeoned, and many individual investigators have become most active in the field. There has been a fantastic outpouring of professional and popular books and articles, untold new or revised college and university offerings, a plethora of in-plant training courses, a growing number of training laboratories and seminars, and a seemingly ever-increasing schedule of meetings and speeches—all concerned, in whole or in part, with "human relations.""

"Defined in broadest terms, public administration consists of all those operations having for their purpose the fulfillment or enforcement of public policy. This definition covers a multitude of particular operations in many fields — the delivery of a letter, the sale of public land, the negotiation of a treaty, the award of compensation to an injured workman, the quarantine of a sick child, the removal of litter from a park, manufacturing plutonium, and licensing the use of atomic energy. It includes military as well as civil affairs, much of the work of courts, and all the special fields of government activity— police, education, health, construction of public works, conservation, social security, and many others."

"The study of human relations in business and the study of the technology of operating are bound up together."

"It is obvious that the problem of human behavior with which we are dealing can not be understood in terms of psychology or any one of the social sciences alone. Is it not possible, therefore, that in attempting to follow the problem wherever it leads us, and employing whatever concepts and research techniques are relevant, we shall be able to define the problem in such a way and develop concepts and a theoretical framework of such a nature that a major contribution will be made to the foundation for an integrated social and psychological science? Whether or not this result appears possible or attractive to present scholars in these fields, we who are studying industrial relations are forced to work in this direction. It is not a case of choice alone, but of necessity, for we can not get results satisfactory to ourselves and applicable to the solution of practical problems by employing the concepts, theories, and methods of any one science."

"Chester Barnard's works, especially his The Functions of the Executive, exerted an important influence on the human relations movement. He placed great emphasis on informal organizations as well as on the complexity of human motivation, with emphasis on the limited nature of financial incentives."

"Modern institutions are transparently purposive and that we are in the midst of an evolutionary progression toward more efficient forms."

"The study of public administration must include its ecology. "Ecology," states the Webster Dictionary, "is the mutual relations, collectively, between organisms and their environment." J. W. Bews points out that "the word itself is derived from the Greek oikos a house or home, the same root word as occurs in economy and economics. Economics is a subject with which ecology has much in common, but ecology is much wider. It deals with all the inter-relationships of living organisms and their environment." Some social scientists have been returning to the use of the term, chiefly employed by the biologist and botanist, especially under the stimulus of studies of anthropologists, sociologists, and pioneers who defy easy classification, such as the late Sir in Britain."

"Public administration is that part of the science of administration which has to do with government, and thus concerns itself primarily with the executive branch, where the work of government is done, though there are obviously administrative problems also in connection with the legislative and the judicial branches. Public administration is thus a division of political science, and one of the social sciences."

"Much of the pioneering work in organization theory was written about public organizations, or with public organizations in mind. When Weber wrote about bureaucracy, he was thinking of the Prussian civil service. Philip Selznick began his scholarly career writing about the New Deal in TVA and the Grass Roots (1953). Herbert Simon’s first published article (1937) was on municipal government performance measurement, and Simon also coauthored early in his career a book called Public Administration (1950) and a number of papers (e.g., Simon, 1953) published in Public Administration Review. Michel Crozier’s classic, The Bureaucratic Phenomenon (1954), was about two government organizations in France."