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Management in art organizations Arts Marketing and Management Katri Nykänen.

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1 Management in art organizations Arts Marketing and Management Katri Nykänen

2 Introduction Although arts and management has become its own field, it is still a young one It is in need of deeper and more carefully worked out theorizing that can help explain empirical findings and guide research efforts. The art organization (for example museum, and gallery) profession has ignored the problem of museum managers not being qualified as managers

3 Art organization as a bureaucratic hierarchy 1/4 Bureaucracy model of Mintzberg (1983) Rely on the skills and knowledge of their professionalsin order to function – The operating core is the key part of the bureaucracy – The only other part elaborated is the support staff The structureis highlydecentralized Professionals seek selective controlof the administrative decisions, which affect them Parallel hierarchies: democratic bottom up for the professionals and machine bureaucratic top down for all others Decision making allows some professionals to ignore the needs of clients and encourages all to ignore the needs of the organization itself and are ill-equipped to respond to the need to develop new outputs Complex work cannot be performed unless it comes under the control of the person who does it The incentive to perfect and to innovate is reduced by external controls

4 Art organization as a bureaucratic hierarchy 2/4 Emphasizes rules and regulations Work is integrated, if at all, horizontally No task can be completed until someone ‘above’ or ‘below’ in the multilayered organization supplies information or approval Emphasis on written, rather than oral and face to face communication Whilst managers anticipate certain consequences and outcomes, often there are unanticipated consequences and outcomes – > Reinforce tendencies to use rules and regulations as control devices -> A lack of trust

5 Art organization as a bureaucratic hierarchy 3/4 1.professionals seek to limit control by others over all aspects of their work: only the professional knows what is right 2.professionals seek to determine in detail how others will act in any matter which touches them 3.the risk of being overwhelmed by the search for money, the need for lobbying stakeholders and the reach of the law

6 Art organization as a bureaucratic hierarchy 4/4 Bureaucracy can be used if it is helpful but should be discarded if it isn’t Anyone wishing to escape the bureaucratic mandela might remember, – ‘you can do anything you like until someone finds out’! – Individuals will find that if they think they have power they do! Power is what you can do: memos seldom have effect In the face of resistance and the extensive use of negative power, some managers adopt an increasingly laissez-faire approach or become cyphers for the outside controllers. They make no decisions; their choices are ones which hold back the museum Whilst many believe that decision making involves logical analysis, it is more often governed by matters such as the distribution of power Concern for the quality of the outcome is subsumed by the struggle for control Without trustworthy agents one must actually work in the same physical location as, and in day-to-day contact with, those one is trying to control.

7 Issues of managing art organizations 1.People must be very clear about their business, their objectives and their philosophy 2.Policies must focus on the results to be achieved 3.Resources need to be distributed for superior performance and on the basis of changing needs, rather than for historical reasons 4.Effective communication, including conflict resolution, needs attention 5.The important role that politics play in art organizations, must be recognized 6.The realities of decision making must be appreciated 7.The practicesof recruitment, job definition and staff developmentneed much improvement

8 Fivebasic operationsto be performed by managers 1.Setting objectives 2.Organizing through 1.analyzing activities 2.identifying manageable jobs 3.grouping the jobs into a structure 3.Motivating and communicating 4.Measurement by setting targets for performance 5.Developing people and their skills how to do these best and what is the right balance between them?

9 Managing art organizations: the role of boards The long-term future of the organization this responsibility can be abrogated only at great risk Three functions of the board 1.Review the organizations’ performance 2.Removal of topmanagement in the event of nonperformance 3.Public and community relations’-communication between organization and and its various ‘publics’ and constituents’ The major responsibility to hire the chief executive, and either support that person or fire him if he does not do the job well enough Whilst boards or trustees of art organizations have the same obligations, face the same risks, and are held accountable to the same extent as boards of directors in a commercial organization,theybehave ina quite different way Whatever the composition of the board, and no matter what skills are represented there, failure on the part of museum management to involve the board in effective support of the museum and its goals results in both time wasting and lost opportunities

10 Managing art organizations: change Change and resistance to change Resistance can be over territory and the functional and hierarchical authority of people: the basis of and limits to authority Resistance which is uncreative and pursued for its own sake is extremely costly and seldom achieves the saboteurs’ actual goal Thefactors contributing to resistance to change and create conflicts – A sense of loss of the past and present – enhanced by any unsatisfactory participation in the change process – Interpersonal conflicts, which remain unresolved by the participants and by management. – Some of these conflicts may arise from things such as inappropriate structures or reward systems. – Others arise from having to cope with rapid change in the outside world, the increasing amount of ambiguity and decreasing certainty about the future. – Mostof the conflict,though, arisesfrom deeply held professional attitudes

11 Managing art organizations: conflicts Conflict often emerge in the processes It is generally accepted these days that artist and designers, educators (usually) and marketing people (sometimes) are involved alongside the scholar in a team Roles of the participants are usually poorly defined The responsibilities are seldom written down Little attention is paid to the impact of group dynamics on the team’s performance Unsatisfied participants try to change the composition of the team, to overrun the roles of other members or to defect altogether The focus on leadership and high quality communication is preferable to rigidly defined functional roles Many of the problems and conflicts stem from not just a failure to observe sensible communication practices, but an ignorance of them and a denial of the lack of skill

12 Managing art organizations: Resolving and preventing conflicts The manager is the coach or cheerleader or facilitator, not the boss, policeman or controller The management must acknowledge, sustain and vigorouslyemploy effective communication skills Control only over those few things that have to be controlled People are given a sense of ownership of their future However in art organizations, for example museums it is often considered that directors should first and foremost know everything about the art, the science, the history

13 Managing art organizations: Communication 1/2 Increasing attention to participatory decision making, a failure to face up to the need for effective interpersonal communication results in – the export of problems from the original domain to other domains – a refusal to accept the ownership of one’s own life Effectiveinterpersonalcommunication means – Obtaining agreement on the meaning of statements, – their consequences, – and their basis in fact or belief-in other words a common understanding shared Success depends on being prepared to accept the consequences of one’s actions and on understanding those consequences in the longer term

14 Managing art organizations: Communication 2/2 Effective interpersonal communication requires – self-control – clear objectives in respect of interactions – understanding of the effects that non-verbal behavior has on the receipt of the verbal message – sensitivities to time and place – use of symbols – belief in the value of oneself and others

15 Managing art organizations: Recruiting and Training Amongst the most important tasks for the manager is the recruitment and training of people – The option is to recruit people who both fit the organization in terms of their attitudes and have the best skills. – Alternatively the chief executive might concentrate on developing appropriate behaviors and attitudes in staff who are in the first three to five years of their employment with the organization Those recruiting staff in many art organizations generally fail to recognize that this is an enormous investment (sometimes almost half a milliondollars-every time someoneis hired) The essential requirements of the job and the person must be thought through and clearly specified Interviews must be of sufficient length and number, and with a sufficient variety of people, to give a broad range of assessments Whilst it is frequently asserted that the museum director must be knowledgeable about the fields of scholarship in which the museum specializes, the consequences of not knowingabout education, design, accounting, staff development, security and the law are seldom lamented

16 Managing at organizations: cultural Revolution Can be achieved by open discussion leading to setting of agreed goals to be attained over an agreed time by a designated person who accepts responsibility for the outcomes The behaviors required by the manager in cultural revolutions include – management by walking around – allowing no perks – admitting all errors immediately – finding weaknesses and strengths-building on the latter and removing the former – forgivingevery admittedmistake – sharinginformationfullysoastoencourageco-operationbut discouraging competition, – building prestige outside the organization, – being the symbolic model of all the organization should become, – attention to complaints of clients, – development of sound people practices, – refusing the forces of reaction any role in appointments or promotions, and – above all caring for competent loyal staff but dealing harshly with resistance and sabotage

17 Managing art organizations: management reform In museums the roles of supervisors and managers in achieving organizational change need much greater recognition and support from both the Board and the staff Adding newresponsibilities tothe rolesof individual managersleadstoorganizational development andtopeople retainingcontrol overtheirwork Centralizingcreates a new band of foreigners, more administrators, whose efforts will be frustrated from the start

18 Managing art organizations: Summary 1.The business, mission and objectives must be clearly defined and effectively communicated inside and outside the organization; this is a primary role of the Board and the Manager 2.Jobs must reflect properly the tasks which can be undertaken 3.Opportunities must be provided for people in accordance with their preferences and motives, not just their abilities 4.People who meet desirable criteria with distinction should be recruited, not just the best of those who apply 5.The goals must be clarified, not just the rules and regulations and procedures which might achieve the results 6.Managers should retain control over only those things that must be closely controlled 7.Innovation should be encouraged in other situations 8.Interpersonal communication skills must be developed and the importance of resolving conflicts emphasized, the realities of decision making acknowledged 9.People should be given a sense of ownership over their future, through opportunities to plan and assess performance 10.The achievement of results should be rewarded, and both the qualitative and the quantitative aspects of those results should be recognized 11.Ways of measuring and assessing success must be developed and agreed

19 Managing art organizations: networks Flexible network organizations, which enhance the likelihood of the occurrence of innovation, allow people to cope with ambiguity and encourage them to take risks Teams of people from different backgrounds seem to produce more innovative solutions Negotiation can be a way of developing an environment in which multiple wants can be satisfied over time Power as a capacity for influence which extends far beyond the original bases that created it Power derives from activities rather than individuals; ultimately it depends on the situation. Thus power distribution changes with the nature of the environment The more institutionalized the power is within the organization, the more likely it is that the organization will be out of phase with the realities it faces

20 Discussion We have talked a lot about networks, and you have read a couple of network-related articles If we think about conflicts in organizations, how would network and network management respond to the conflicts or even prevent them

21 Managing in the museum organization: I. Leadership and communication International Journal of Museum Management and Curatorship, Volume 6, Issue 4, December 1987, Pages 387-398 D.J.G. Griffin

22 Managing art organizations; networks  Almost all collaboration is named networking  Networking is long term, systematic action between two or more independent actors and is based on trust and commitment  Networks are often build in a hierarchical environment, which create conflicts especially in the early phases of networking  The use of power  Structures  Knowing

23 Network management research 1.Business networks – Networks can not be managed, they are systems that direct themselves 2.Social networks– Networks between companies are build by the commections between the companies and these networks can be managed 3.Network management as a process– Creating the network, maintaining and disseminating the network 4.Network management functions– Framing, activating, mobilizing, synthesizing 5.Public sector network management – Managing networks inside the hierarchical organizations

24 The differences between hierarchies and networks 1.How the strategy implemented 2.What is the role of personnel in creating the strategy 3.Where does the legitimacy come from (Official rules, documented decisions) 4.How are the tasks given and how are the responsibilities named (the role of education) 5.How is the knowledge transferred and what kind of tools are used 6.What is the basis of learning 7.How and on what grounds is responsibility shared 8.How dynamic is the action

25 The double challenge of the public manager a)The manager of public sector is the manager of hierarchically organized organization This role is the actions are steered by effectiveness and short-term planning and evaluation of the effectiveness  Quartile planning  The benefit of own organization  Cutting cost  Productive development in a short-term b)The public manager is increasingly acting in networks, where she can’t use the authority, but instead has to play according to the social rules of networks  Time must be allocated to the creation of trust and commitment  Network relationships are long-term and then the results are visible in long term  In the beginning the creation of social relationships are prioritized over the results

26 The capabilities of network manager  The ability to affect the actors and and commit them to the network activities  The network manager has to be able to guarantee that the network actors are committed to the shared activities  The ability to create an atmosphere that encourages networking (Mandell 2001)

27 The organizational manager as the enabler of networking 1.Enabling networking can mean  Restructuring the own organization to support networking in personnel level  Creating such network structures that support networking 2.As a network actor  Network manager  Professional in certain field 3.Outside the network  Supported and enabler Nykänen 2014

28 The issues of managing networks  How to create a shared goal  How to create a shared trust and commitment to other actors  How to solve conflicts of interests  How to share resources and who’s resources are used in each of the networking phases  How to ensure the knowledge transfer and communication to all actors and to the stakeholders  How can we ensure we can work together?

29 The premises of networking 1.Structures  Supporting collaboration between organizations  Shared premices  Shared resources  Shared processes 2.Culture  Creating a shared goal in customer level  Taking responcibility  Sharing knowledge 3.Practices  Shared meetings  Social happenings over organizational borders  Tiedotteet 4.Tools  Discussion methods  Shared measures  Computer systems and programs that support collaboration Grandori and Soda 1995

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