1. Organisations- og Virksomhedsteori 7. Undervisningsgang – 15. april 2013

2. Lectures, Spring 2013 WeekDateSubjectLiterature 528.JanIntroduction to the course 64.FebMultiple PerspectivesMJH, Chap 1+2 711.FebWinter holiday 818.FebOrganizations and EnvironmentMJH, Chap 3 925.FebCancelled 104.MarOrganizational Social Structure + CaseMJH, Chap 4 + Comp 1111.MarCulture + TechnologyMJH, Chap 6 + 5 1218.MarOrganizational Power, Control & Conflict + CaseMJH, Chap 8 + IKEA 1325.MarCase Work kick off 141.AprEaster holiday 158.Apr Case work – supervision at ITU 1615.Apr Theory in Practice / New directions in Organization Theory MJH, Chap 9+10 1722.Apr Strategizing; Intro + Decision Theory Nygaard, Chap 1+2 1829.Apr Strategizing; Agent- and Transactional cost analysis Nygaard, Chap 4+5 196.MayStrategizing; Institutional- Networks theoryNygaard, Chap 8+9 2013.MayStrategizing; Corporate Systems TheoryNygaard, Chap 10 2120.MayWhit Monday 2227.MaySpare week

3. Organizational design  Theories of organizational design are prescriptive by nature; they intentionally change organizations  Symbolic interpretivists are sensitive to the cultural embedded meanings  Simple Organizational designs  Functional Organizational designs  Multidivisional forms  Matrix organizations  Strategic alliances  The Global Matrix

4. Organizational design General Manager LogisticsPurchasing HR / Finance Manufac- turing Sales Functional Organizational design

5. Organizational design General Manager Division 2Division 1Division 3 Multidivisional organizational design PurMftLogSalPurMftLogSalPurMftLogSal

6. Organizational design General Manager Division 2Division 1Division 3 Multidivisional organizational design (M-Form) PurMftLogSalPurMftLogSalPurMftLogSal S S C PL Centric Structure

7. Organizational design General Manager LogisticsHR / Finance Manufac- turing Sales Matrix Organizational design Project 1 Project 2 Project 3

8. Organizational design  Process Centric Organizational Design

9. Organizational design General Manager N AmericaE EuropeAsiaEC The Global Matrix P Group A P Group B P Group C Strategic alliances & Joint Ventures Local firms

10. Organizational design UnfreezeMovementRefreeze

11. Complex Responsive Processes Strategic Management and Organizational Dynamics

12. Den systemiske tankegang  Er baseret på ideen om, at alle elementer har en funktion og tilsammen danner et system  Systemers virke er altid forudsigelige og der er en klar kausalitet mellem in- og output  Systemer designes af en udefra kommende entitet  Eksempler: maskiner, økologi, vejr

13. Negative feed-back loop Desired temperature Actual - desired Desired temperature Appliance switched off - Temperature + Temperature Appliance switched on

14. Cybernetic Systems  Is based on Wieners idéa about control to human activity  Always seeks an equilibrium, which can be stable, unstable or dynamic  Based on individual centred cognitive psychology When we desire a motion to follow a given pattern, the difference between the pattern and the actually performed motion is used as a new input to cause the part regulated to move in such a way, as to bring the motion closer to that given pattern Norbert Wiener 1948

15. Cybernetic Systems 2  Organisations are goal-seeking, self-regulating adapting to pre- given environment through negative feed-back (learning)  Effective control requires forecasts and a control system that contains as much variety as the environment  Effective organisations are self-regulating, an automatic mechanical feature flowing from the way the control system are structured  Success is a state of stability, consistency and harmony

16. Strategic choice theory  Formulation and evaluation of long-term strategic plans. Including analysing and forecasting market development, as well as other alternatives and their implications  Results in a blueprint to guide the organisation for a reasonable long period of time  Implementation is in effect the construction of cybernetic systems. Effective implementation is a prerequisite for success  Partial and limited explanation of how organisational life unfolds!

17. Complexity rejects systems  When complexity raises in organisations and not least in the environment, systems thinking is not sufficient for understanding organisations.  A number of theories has been used in the last two decades for handling complexity, such as:  The learning organisation  Chaos theory  Complex adaptive systems  Same paradigm in terms of the leader is observing/designing outside the organisation

18. Complex Responsive processes  Based on temporal processes of human interaction  Concerned with the actions of human bodies such as walking, talking and thinking  Psychological model based on relationships between people instead of on the individual  Strategy is no longer someone’s intended or desired future state, but is understood as evolving patterns of organisational and individual identities

19. Legitimate- and shadow themes LegitimateShadow -Organise what people feel free able to talk about open and freely. -Organise conversations that in which people give acceptable accounts of themselves and their actions, as well as the imputations about the actions of others -Kind of conversation you readily engage in with others, even if you do not know them well -Organise what people do not feel able to talk about openly and freely -Organise conversations that in which people give less acceptable accounts of themselves and their actions, as well as the imputations about the actions of others -Kind of conversation you would only engage in informally, in very small groups, with others, you know and trust If there is one thing that everyone knows about life in organisations or any other grouping of people for that matter, it is this: it is not possible to talk freely and openly to just anyone, in any situation, about anything one likes, in any way one chooses, and still survive as a member.

20. Legitimate- and shadow themes LegitimateShadow Conscious Unconscious InformalFormal Shadow connectionsLegitimate connections

21. Complex Responsive processes Five shifts in focusing attention on: 1. Quality of participation 2. Quality of conversational life 3. Quality of anxiety and how it is lived with 4. Quality of diversity 5. Unpredictability and paradox

22. 1. Quality of participation  Responses can’t be designed Top executives form organisation-wide intentions, leverage points and structures. However responses to these intentions can never be designed.  No manager can stand outside an organisation. Therefore all managers are active participants with each other in the interactive processes that are the organisation  Stay inside the organisation Step inside the organisation and participate with other members in evolutionary processes of communicating and power relating  Unexpected events Focus on the unexpected and complex patterning of responses of organisational members to managers’ intentions

23. 2. Quality of conversational life  Conversations and power relating In organisations relationships between people are organised in conversations that form and are formed by the power relations between them  Organising themes Conversational relating is organised by themes of an ideological nature that justify the pattern of power relations  Changing themes Organisations change when the themes that organise conversation and power relations change. Learning is changing the themes  Quality of conversational life is paramount!

24. 3. Quality of anxiety  Anxiety follows uncertainty Anxiety is a companion of shifts in themes that organise the experience of relating because such shifts create uncertainty  Affecting the silent private conversations These themes also resonate with and change the silent private conversations  Anxiety and excitement Managers must ask and reflect what makes it possible to live with anxiety so it is also experienced as the excitement required for people to continue  Avoid stressing people Avoid stretching targets and stressing people because this will increase anxiousness which will decrease the quality of the conversational life and hence block creativity

25. 4. Quality of diversity  The paradox:  When organisational members have nothing in common, obviously no joint action would be possible  When organisational members conform too much, the emergence of new forms of behaviour is blocked  Spontaneously changes Organisations only display the internal capacity to change spontaneously, when they are characterised by diversity.  Deviance, eccentricity and ideologies Diversity focuses on the importance of deviance and eccentricity. This also focuses on the importance of unofficial ideologies that undermine current power relations. Such unofficial ideologies are expressed in conversations organised by shadow themes

26. 5. Unpredictability and paradox  One of the most radical implications of CRP is the limits to certainty and predictability that it points to, which is a major departure from SCT  Focusing on not knowing Thinking about not and the potential for feelings of incompetence and shame that this arouses. Managers must often decide without knowing the long term outcome of the decision. They must act, because failure to do so, will also have an unpredictable outcome!  Surprise is inseparable from creativity No matter how well informed you are, surprises are inevitable and a good way of thinking about and living with anxeity  Quality decisions keeps options open A quality action is one that creates a position from which further actions are possible. That is why the option of doing nothing is such as poor response to uncertainty

27. 5. Unpredictability and paradox Paradox – para ´besides´ + dóksa ’meaning, learning´ Conservation Control Expansion Integration Competition Boundary Opening Boundary Closing Cooperation Differentiation Contraction Autonomy Innovation

28. 5. Unpredictability and paradox Examples of paradoxes in organisational life:  Organising is at the same time self-organising emergence and intention. Intention emerges in self-organising processes of conversation while at the same time organising that conversation  Conversational patterns in an organisation enable what is being done and at the same time constrain what is done  The performance of complicated tasks requires that they be divided up but at the same time they have to be integrated  Managers operating in a state of knowing and not knowing at the same time Managing is then a process of continually rearranging the paradoxes of organisational life

29. Management competences  Reflexive activity Paying more attention to the quality of your own experience of relating and managing relationships with others. This a reflexive activity requiring each one of us to pay more attention to our own part in what is happening around us  Unusual and fuzzy leadership skills:  Self-reflection  Owning ones part in what is happening  Skills in facilitating free floating conversations  Ability to articulate what is emerging in conversations  Sensitivity to group dynamics  Strategic management Strategies emerge, intentions emerge, in the ongoing conversational life of an organisation. Strategic management is the process of actively participating in conversations around important emerging issues. Strategic direction is not set in advance!

30. The end Q & A