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Organisation by Mind Map: Organisation

1. Institutional Theory

1.1. Why are super-performing organizations within organizational fields so similar?

1.2. Institution

1.2.1. “An established or socially recognized system of norms or patterns of conduct referring to some aspect of social life” (txt book, p. 177).

1.2.2. “(1) a large organization founded for a particular purpose, (2) an established law or custom” (Oxford English Dictionary).

1.2.3. Set of norms or rules that are collectively shared o a specific community in social action. Institutions grow as people construct their social reality.

1.3. Institutionalized

1.3.1. “We conceive as the phenomenological process by which a social order, a pattern or a practice, comes to be taken for granted and is reproduced in structures that are to some extent self-sustaining” (txt book, p. 178).

1.4. DiMaggio & Powell

1.4.1. It is true that organizations are differently structured. However, organizations within the same field tend to be surprisingly similar.

1.4.2. The research question that motivates institutional theory: Why are super-performing organizations within organizational fields so similar?

1.5. Explaining the influence of environment in organisational changes

1.5.1. Isomorphism Definitions The tendency to adopt the same procedures and practices as other companies and firms. A constraining process that forces one unit (in a collection of units) a population to resemble other units that face the same set of environmental conditions (DiMaggio & Powell, 149). Types Hannan and Freeman 1977 Coercive isomorphism Mimetic isomorphism Normative isomorphism Institutional theory: Isomorphism 1. Focus on homogeneity within institutional fields. 2. DiMaggio & Powell’s central concept to describe the copying within fields is isomorphism. 3. Distinction between:

1.5.2. Organizational fields Companies in the same industry or companies that are linked in the supplier-producer-seller relationship. Those organizations that, in the aggregate, constitute a recognized area of institutional life: key suppliers, resource and product consumers, regulatory agencies, and other organizations that produce similar services or products (DiMaggio & Powell, 148).

1.6. Believes that organisation copy succesful organisation to look like a successful company - increasing efficiency,

1.6.1. Efficiency The quality of doing something well with no waste of time or money

1.6.2. Legitimise the company

1.7. Institutional vs. contengency

1.7.1. Contingency is right but institutional theory says the reason behind companies adjust to the environment is due to legitimise by copying other successful companies

2. Classical Organisational Theory

2.1. Motivation theory

2.1.1. KITA Positive Physical Psychologically Seduction Negative Physical Psychologically Rape Creates motivation for the leader no the employee Externally motivation Used by scientific management and Human School

2.1.2. Herzberg Two factor theory Motivation Hygiene Motivation True motivation comes from job-enrichment; the job itself is motivating What does an employee want from work? Critique Difficult to distinguish motivation factors from hygiene factors Unclear how different people react to the different factors Job-enrichment Authentic job-enrichment In-authentic job-enrichment

2.2. Human School

2.2.1. Hawthrone Studies Result Something else that the physical environment that changed the productivity Productivity increased in relation to all variables The third study; The social connections you make increase efficiency Hawthorne effect Discovery of Informal We cannot truly understand an organisation without understanding the informal organisation. Motivation The ‘pay envelope’ is not the main or only motivator; workers want the satisfaction that comes from being accepted and recognised. Social relations & salary Critique Poor insight into women's situations in working life Superficial theory contraction and naive methodology Indifference to the significance of gender differences

2.3. Taylor

2.3.1. Taylor 4 principles: Gathering traditional knowledge What is the most efficient way to do things The selection of the workmen Chose and teach the best worker Bringing together the science of the workmen Motivate the worker The division of work Management thinks for the worker Chose and teach the best worker

2.3.2. Time and motion studies

2.3.3. Focus on the formal organisation

2.3.4. Mental revolution More money to the worker to spend equals higher demands on the market Divide between workers and management group Workers can soldier

2.3.5. Soldiering - Problem in terms of motivating the worker - A mechanism so you choose the pace - Do not want to do more or work harder because they will get paid the same

2.3.6. Motivation External to the task Money Better and kinder treatment

2.3.7. Critique Norms Social relations Implicit power relations Did not see the informal group

2.4. Scientific management vs. Hawthorne Studies vs. Herzberg

2.4.1. Taylor: Pay as incentive.

2.4.2. Herzberg: Critique of both Taylor and Hawthorne studies – KITA. Focus on establishing an internal generator for motivation.

2.4.3. Hawthorne studies: Critique of Taylor and emphasis on the human side and managers’ roles in relation to employees.

3. Contingency Theory

3.1. Why are super-performing organizations across organizational fields so different?

3.2. Minzberg organisational chart

3.2.1. Operating core: Secure inputs, turn inputs into outputs, distribute the outputs, provide direct support to the input. Doing the task, about getting the job done, not influenced by the external factors /environment

3.2.2. Strategic apex: Supervision, relationship with environment, strategy.

3.2.3. Middle line: Connects Strategic apex with operating core. A lot of interacting with the environment/external factors, politics,

3.2.4. Technostructure: Design and plan the work, analyze work procedures, train staff. Meta structure, not directly engaged in production but planning and effecting production Taylor's own job, the new role of the concultant, HR, standardlization of tasks

3.2.5. Support staff: Provide support to the organization outside the operating workflow. Everything there is needed to get all the jobs done ex: cantine, supports everything else

3.3. The organisation's success is determined by how well it adjusts to the environment

3.3.1. Their function depends on their ability to interact with the environment

3.4. Adjust to the environment

3.4.1. Need to think organisation as an open structur Depends on customers Politics Climate changes Perceptions in public

3.4.2. The organisations success is not determined by something intrinsic

3.4.3. There is not only ONE optimal organisational structure

3.4.4. An organisation needs to adjust all the time

3.4.5. Focused on formal and informal organisation

3.4.6. Classical organisational theories and the Human relations school both got it wrong.

3.4.7. There is not one right way to organize. Super performing organizations are very differently structured. The central question is how well they adopt to the environment.

3.5. Differentiation vs. integration

3.5.1. Differentiation Formal organisation We differentiate our organisation Get more different departments The functions and focus of the departments are different Think of an organisational charge

3.5.2. Integration Informal organisation All the departments in the organisation needs to be integrated with each other. HR department makes sure all departments work together Integration units within the organisation Different culture within the departments Think of everything that is NOT in the organisational charge

4. Learning and culture

4.1. Individual learning

4.1.1. Behavioral The outcome of a learning process is visible behavioural change.

4.1.2. Cognitive The outcome of a learning process is a relatively permanent change in behavioural potential.

4.1.3. Situational The outcome of a learning process is a relatively permanent change in visible behaviour or behavioural potential. However, we can only understand learning in relation to a situational context.

4.2. Organisational learning

4.2.1. What an organisation learns and know is more than the sum of the individual learning in the organisation.

4.2.2. What an organisation knows is less than the sum of the individuals learning in the organisation.

4.2.3. Organisations seem to get stuck in certain ways of solving their problems.

4.2.4. Behavioural Josie noter Organisational learning results in behavioural changes Solves problems in different ways In general seems to responds to environmental opportunities and challenges by adjusting its behaviour. The organisation adopts different procedures To treat the organisation as an actor itself 4 basic views - p. 253 Responses to external events Reactions to new information Ability to innovate Improve the performance of the organization

4.2.5. Cognitive What is interesting is not actual change in organisational behaviour, but rather the range of potential behaviours accessible to the organisation. It is able to solve problems in different ways It is able to respond to environmental opportunities and challenges by adjusting its behaviour. 4 different processes - see p.255 Knowledge acquistion Information distribution Infromation interpretation Organizational memory Organizational learning can take place on 3 different levels Individual Group Organization

4.2.6. Situational Is not presented in the book But the situated perspective is important for an organizational because of the external, culture factors

4.3. An organisation is learning when it is able to

4.3.1. Adjust to changes in the environment

4.3.2. React to new information

4.3.3. Innovate

4.3.4. Improve the performance of the organisation itself

4.3.5. Argyris says it is really difficult due to single loop learning

4.4. Argyris

4.4.1. Double loop learning Anyone wants to achieve double loop learning Organisation learns from mistakes How can the company change It happens when underlying assumptions, norms, and objectives are open for confrontation. It happens when managers begin to deal more effectively with the dilemmas of their power.

4.4.2. Single loop learning Mistakes are simply corrected No learning achieved for the organisation The changes is not though about Does not questing why 'something' happens

4.4.3. A culture study

4.5. Schein

4.5.1. Culture We must think of culture in “dynamic evolutionary terms” (p. 88) Culture is not directly observable, (it is hidden in our basic and often unconscious assumptions). Culture reproduces itself (it is thought to new members). The influence of culture is deep and fundamental (culture permeates the way we perceive, think and feel about problems). Group identity - key concept of culture The culture of a group can … be defined as a pattern of shared basic assumptions that was learned by a group as it solved its problems of external adoption and internal integration, that has worked well enough to be considered valid and, therefore, to be thought to new members as the correct way to perceive, think, and feel in relation to those problems (Schein p. 89). - Page 18

4.5.2. The three major levels of cultural analysis Artefacts: Clothes Open or closed office space Men or women Reinfield not known on the social media What can we see or hear Values: Traditional values of how to sell and educate What the company says and thinks its about - you have to look at value statements Basic assumptions. The ways we are stuck in, what we are doing blindly Basic assumptions do not have to be negative - but only if the firm is working really great Recognizing these critical functions makes us aware why “ changing ” culture is so anxiety provoking.

4.5.3. The iceberg Metaphor

5. Strategy

5.1. Porter

5.1.1. The point of porters five forces is to create knowledge and a baseline guidance for the future

5.1.2. How to gain an competetive advantege? The Five Forces That Shape Industry Competition Threats of new entrants Bargaining power of buyers Threat of substitute products Bargaining power of suppliers Rivalry among existing competitors Analyzing competition of a business Five forces that determine the competitive intensity and, therefore, the attractiveness of an industry in terms of its profitability.

5.1.3. Strategy must secure adjustment to external challenges

5.1.4. Out-side in Focus on external challenges

5.1.5. Links Contingency theory Institutional theory Organisations within an industry are identical with regards to their resources (homogeneous)

5.2. Barney

5.2.1. How to gain an competetive advantege

5.2.2. Stategy must basically secure the right use of an organisation's internal resource

5.2.3. Inside out

5.2.4. Focus on internal strengths

5.2.5. Can be argued to link to Taylor

5.2.6. VRIN model Valuable Rare Inimitable Non-substitutable

5.2.7. Firm resources Physical capital resources Technology Raw materials Machines geographical Location Human capital resources Knowledge Competences from all managers and employees Organisational capital resources Planning and controlling routines Coordination systems Reporting systems Informal and formal relations between employees

6. Critical management and organisation studies

6.1. De-naturalinasation

6.1.1. Means to the questioning and opening up of what has come to be seen as given, unproblematic and natural.

6.2. Exposing asymmetrical power relations

6.3. Critical management and organisation studies is a field of research that interrogate and challenge received wisdom about management theory and practice.

7. Decision-making theory

7.1. Rational Choice Model

7.1.1. Problem, looking at alternative, choice

7.1.2. Linear order of decision making process

7.2. Garbage can model

7.2.1. Solutions often come before problems

7.2.2. The decision process is not linear

7.2.3. More accurate than rational choice model

7.3. Subjects

7.3.1. Maximizing Choosing the best alternative (which means that you must know and consider all alternatives).

7.3.2. Satisfying Choosing an alternative that exceeds some criterion or target.

7.3.3. Limited rationality The condition that not all alternatives are known, not all consequences can be considered, not all preferences can be evoked and taken account of at the same time.

7.3.4. Choice opportunities The garbage can Loose coupling

8. Leadership

8.1. Nadler and Tushman

8.1.1. Only working when the organisation needs REORIENTATION

8.1.2. Three component model Go beyond charismatic leadership Energising Motivating Enabling Go beyond Instrumental Leadership Structure, control and reward Institutionalzing the Leadership of change Spread out the leadership within the organisation

8.1.3. Planned & Emergent change

8.1.4. Change initiated by leaders

8.1.5. Link to institutional theory

8.1.6. Focus on leadership

8.2. Transactional leaders

8.2.1. The daily work life leadership

8.2.2. Never mention transactional leader combined with Nadler & Tushman

8.3. Transformational leaders

8.3.1. In a situation on change

8.4. History of leadership

8.4.1. Leadership is the process of directing, controlling, motivating, and inspiring staff towards the realization of stated, organizational goals (Clegg, Kornberger, and Pitses, 2015)

8.4.2. Leadership trait theory Either you have the ability or you dont, it cannot be learned

8.4.3. Leadership activity theory More focus on behavioour, what people actually do Not looking at trait or characteristic but at behaviour He looked at 2 factors in behaviour - Network-building - Strategic agenda

8.4.4. Contingency theory Fred Fielder ”Leaders have to instil vision, meaning and trust in their followers” (Bennis and Naunus, 1997) Not oly the leader but also the employees. The context of leadership matters, meaning also the situation between the employee and leader Organisational structure Values Ethic Astethic Society

8.4.5. Charismatic Leadership Motivates you intrinsic to do the task e.i. make sure you are eager to make notes.

9. Organisational Change

9.1. Planned Change

9.1.1. Kurt Lewin Forces that initiate change Unfreeze Change Refreeze They acan both be internal and external

9.1.2. Assumption: Stability is the prefered and natural state of an organization. Change is initiated by top-management

9.2. Emergent Change

9.2.1. Assumption: Stability and change exist in parallel and are essential part of any organization; Critique: Changes happen on an ongoing basis and cannot be planned

9.3. Radical Change

9.3.1. Assumption: Organizations need this form of change to sustain competitiveness; Change in the deep structures, i.e. underlying values and belief systems which has consequences for the while organization

9.4. Continious improvement

9.4.1. Two assumptions 1. Assumption: Rather than one risky change process, small, incremental steps to change an organization 2. Assumption: Organizations also need to develop their efficieny within their given belief systems and values; Crtique: Important to develop organizations further, rather than waiting for ”the next big thing”

9.5. John Kotter

9.5.1. 8 steps Urgency // Coalation // Vision // Communication // Obstacles // Short-Term Wins // Long-Term // Anchoring

9.5.2. Organizatonal change is diffifult Therefore, change efforts often change

9.5.3. Belief in good planning and the key of the executives

9.5.4. Linear process

9.5.5. Change initiated by leaders

9.5.6. Radical change Re-creation

9.5.7. Focus to change the management