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N ew ways of organising: The networkorganisation as an important paradigm shift in the field of management -‘The Oranje case’ ‘Professional Seminar Series’

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Presentation on theme: "N ew ways of organising: The networkorganisation as an important paradigm shift in the field of management -‘The Oranje case’ ‘Professional Seminar Series’"— Presentation transcript:

1 N ew ways of organising: The networkorganisation as an important paradigm shift in the field of management -‘The Oranje case’ ‘Professional Seminar Series’ LSE - Social Psychology Department Presentation 10 mars or telephone:

2 Copyright The Professional Seminar Series - LSE 10/3/032 Our heraldic device “nothing slows down an organisation more than people who assume that yesterday's best ways of thinking and acting are also tomorrow's”

3 Copyright The Professional Seminar Series - LSE 10/3/033 è social profit organisation è scattered over a broad region è fast pacing scaling up è Paradigm - shift in the portrayal of disabled persons è radical change of subsidy-system è from planned economy to free market Oranje as a natural experiment the broad context

4 Copyright The Professional Seminar Series - LSE 10/3/034 The quest for a ROBUST and FLEXIBEL organisational design The ultimate question

5 Copyright The Professional Seminar Series - LSE 10/3/035 è Metaphors describe a complex reality in a synthetic way è A metaphor is NOT an analogy or isomorphism è It is a partial description è Metaphors: è Traditional paradigm è Non-traditional paradigm The limited usefulness of metaphors and its generic features

6 Copyright The Professional Seminar Series - LSE 10/3/036 The roots of the old paradigm: Classical or traditional organisations è Taylor ( ) was an industrial engineer. He was interested in the issue of how to increase efficiency in production processes. Ergonomics, assembly lines, the search for best practices…, the organisation as a clockwork. Defining the ONE BEST WAY led to standardisation. è Weber: ( ) was a sociologist and tried to define the ideal organisation from a humanistic and social conscience point of view. He called the ideal organisation: the bureaucracy. The key-features were: avoiding arbitrariness, objectivity, rationality, specialised subdividing of tasks, hierarchy, written regulations, clear mandates. The organisation as a pyramidal structure.

7 Copyright The Professional Seminar Series - LSE 10/3/037 Traditional management models described with metaphor's n Traditional management approaches: è Pyramidal organisation: when we want to stress the hierarchical echelons => Traditional hierarchical organisation è Mechanical Clockwork => Bureaucratic organisation è Matrix-organisation: when we focus on specialisation and professionalisation. è Co-ordination and steering: Command and control è Leader: ‘general’ of ‘captain’

8 Copyright The Professional Seminar Series - LSE 10/3/038 Non-traditional management models described with metaphors The horizontal- or flat organisation. è Empowerment è Client and market orientation: org tipped over to the side of the client and market è Self-steering teams The networkorganisation è general systems theory è Complexity theory è Organisation as a complex adaptive system /evolution theory è The living organisation / DNA

9 Copyright The Professional Seminar Series - LSE 10/3/039 The connecting - phase bringing together and horizontalisation

10 Copyright The Professional Seminar Series - LSE 10/3/0310 The symbiotic-phase connectivity led to and increased path- dependency and inertia

11 Copyright The Professional Seminar Series - LSE 10/3/0311 The co-evolutionary-phase internal connectivity is decreased in favour of external connectivity

12 Copyright The Professional Seminar Series - LSE 10/3/0312 è M/E/I-flux is very important in function of co- evolution with the environment. è Environment is virtual infinite è Evolution with what? Selection is necessary è Outlining of Relevant context : Definition: “Relevant context is that part of the environment where the M/E/I-flux is of vital importance for the survival, evolution and thriving of the unit. Therefore the local environment and local actors play a crucial role” Co-evolution, relevant context and local context

13 Copyright The Professional Seminar Series - LSE 10/3/0313 The co-evolutionary-phase internal connectivity is decreased in favour of external connectivity

14 Copyright The Professional Seminar Series - LSE 10/3/0314 è Connectivity leaves trails è In time these trails form patterns è Connectivity leads to historicity è The downstream evolutionary path of a team, or unit of organisation is towards petrifaction The downstream evolutionary path: the petrifaction-hypothesis  Risk: “Tjernobil” with regard to content

15 Copyright The Professional Seminar Series - LSE 10/3/0315 The four co-evolutionary types

16 Copyright The Professional Seminar Series - LSE 10/3/0316 Co-evolution: downstream evolutionary trajectory (erratum) TRAIL BLAZING

17 Copyright The Professional Seminar Series - LSE 10/3/0317 Downstream evolution completed figure  + feedback - feedback  formation of best practices  operat. learning + educat.  exploration exploitation  real time historicity  + feedback << - feedback  best practices are standard  learning: educat + socializing  exploration<< exploitation  real time << historicity  + feedback >> - feedback  little organisational memory   short term memory  operational learning +++  exploration >> exploitation  real time >> historicity  + feedback >> - feedback  best practices are obsolete  disoriented learning  disoriented exploration  real time >> historicity

18 Copyright The Professional Seminar Series - LSE 10/3/0318 Part 2: The upstream evolutionary path

19 Copyright The Professional Seminar Series - LSE 10/3/0319 è Creating a ‘space of consultative possibilities’ è Provoking new emergent syntheses by reassembling unit-teams è Partial ‘decontextualisation’ of knowledge, methodology, vision è Edge of Chaos : constantly pushing teams far from equilibrium è Heterogeneity of a team è Feeling of urgency è Recruitment of new co-workers who come from other sectors è Recombination of teams team-mutations è Strong client-oriented mentality è Scarcity of means è Leadership is more about process then about content: captains are out of date è Distributive fields of tension: ‘no internal firewalls’ Part 2: The upstream process - overview

20 Copyright The Professional Seminar Series - LSE 10/3/0320 CONTROL operational component adaptive component INFORMATION Selection, draw in, pass on.... STEERING: When information is activated Knowledge Adaptation Fitness Distribution of information, steering and control

21 Copyright The Professional Seminar Series - LSE 10/3/0321 r Assumption: IQ is situated at the top r vertical information-asymmetry: insufficient exchange of relevant information r central top is monopolising information : selection, portioning and passing on r on the other hand : “field-info” is been monopolised by the rank and file: “upward selling” (Kelly) r ‘upstairs’ and ‘downstairs’ consolidate each others ignorance Information-distribution Bureaucratic - hierarchical :

22 Copyright The Professional Seminar Series - LSE 10/3/0322 Informatiedistribution networkorganisation r Information is easy accessible r Danger for information-overload r Pull (call) ipv Push (broadcasting)

23 Copyright The Professional Seminar Series - LSE 10/3/0323 r Central top-down steering r Only the top takes the external context into account r lower echelons carry out r horizontal cross-section is irrelevant Distribution of steering bureaucratic / hierarchical

24 Copyright The Professional Seminar Series - LSE 10/3/0324 r Organisation is organised at the side of the client, market, local environment r the expression ‘self-steering’ is not a good term r 360 °-steering : vertical and horizontal. r Exchange relevant en valid information and this in all directions (360°) Distribution of steering in a networkorganisation

25 Copyright The Professional Seminar Series - LSE 10/3/0325 r central authority r command and control r legitimacy : position in the hierarchical structure (org. Chart) and seniority r several steps between relevant information and the decisionmaking => r demotivated employees r learned helplessness r vulnerable: not much redundancy r vulnerable in case of environmental evolutions Locus of control/ influence bureaucratic / hierarchical

26 Copyright The Professional Seminar Series - LSE 10/3/0326 r Subsidiarity and empowerment r “maximum 1 - step” - decision-rule r content oriented “influencehierarchy” r legitimacy : nearness to relevant information and the capability to convert it into knowledge and adaptive actions. Locus of control: network ‘a mind is a terrible thing to waste’

27 Copyright The Professional Seminar Series - LSE 10/3/0327 The organisation chart of the classic organisation

28 Copyright The Professional Seminar Series - LSE 10/3/0328 The organization chart of a Networkorganisation

29 Copyright The Professional Seminar Series - LSE 10/3/0329 n Quotations should refer to: ROOSE Herman, New ways of organising: the networkorganisation as a paradigm-shift in the field of management. Paper presented at The Professional Seminar Series’ - Social Psychology Department - London School of Economics, 10 mars 2003., London


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