T 205 B Block 04 Week 04 Managing

T 205 B Block 04 Week 04 Managing within Organizations Concept File 04 Section IV Development & Section V Culture & Climate T 205 B-Systems' Thinking & Practice - AOULebanon Branch 1

Reading 21 - Organizational Learning 21. 1 Can organizations learn to learn? Basically, an organization is a group of people intentionally organized to accomplish an overall common goal or set of goals. Business organizations can range in size from two people to tens of thousands. n In general an organization must have: 1. Vision Members of the organization often have some image in their minds about how the organization should be working, how it should appear when things are going well. 2. Mission An organization operates according to an overall purpose, or mission. n T 205 B-Systems' Thinking & Practice - AOULebanon Branch 2

Reading 21 - Organizational Learning 21. 1 Can organizations learn to learn? 3. 4. 5. Values Organizations operate according to overall values, or priorities in the nature of how they carry out their activities. These values are the personality, or culture, of the organization. Strategic Goals Organizations members often work to achieve several overall accomplishments, or goals, as they work toward their mission. Strategies Organizations usually follow several overall general approaches to reach their goals. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 3

Reading 21 - Organizational Learning 21. 1 Can organizations learn to learn? Can organizations learn? n Are organizations able to learn in an ongoing way? n Is this learning single loop or double loop? n What are the main barriers to learning? n Are they intrinsic to the nature of organizations, or can they be overcome? § There is no abstract way for answering these questions, because organizations vary in their learning capacities. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 4

Reading 21 - Organizational Learning n 21. 1 Can organizations learn to learn? What is organizational learning? Organizational learning is an area of knowledge within organizational theory that studies models and theories about the way an organization learns and adapts. n What are organizational studies? Organizational studies involve the study of individual and group dynamics in an organizational setting, as well as the nature of the organizations themselves. Whenever people interact in organizations, many factors come into play. Organizational studies attempt to understand model these. T 205 B-Systems' factors. Thinking & Practice - AOU 5 Lebanon Branch

Reading 21 - Organizational Learning 21. 1 Can organizations learn to learn? What is organizational development? Organizational development (OD) is concerned with the performance, development, and effectiveness of human organizations. n In Organizational development (OD), learning is a characteristic of an adaptive organization, i. e. , an organization that is able to sense changes in signals from its environment (both internal and external) and adapt accordingly. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 6

Reading 21 - Organizational Learning 21. 1 Can organizations learn to learn? n What is an adaptive system? An adaptive system is a system that is able to adapt its behavior according to changes in its environment or in parts of the system itself. A human being, for instance, is certainly an adaptive system; so are organizations and families. Some manmade systems can be made adaptive as well; for instance, closed-loop control models utilize feedback loops in order to sense conditions in their environment and adapt accordingly. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 7

Reading 21 - Organizational Learning n 21. 1 Can organizations learn to learn? Espoused theory and Theory In-Use In addition to explicitly adopted theories people actually have implicit mental models with regard to how they act in situations, and this involves the way they plan, implement and review their actions. In reality it is the implicit models (also called theory-in use) which actually guide people’s actions rather than their explicitly adopted theories. This could be referred to as a split between theory and action. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 8

Reading 21 - Organizational Learning 21. 1 Can organizations learn to learn? Espoused theory and theory in-use When someone is asked how he would behave under certain circumstances, the answer he usually gives is his adopted theory of action for that situation. This is theory of action to which he gives allegiance, and which, upon request, he communicates to others. However, theory that actually governs his actions is his theory-in-use. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 9

Reading 21 - Organizational Learning 21. 1 Can organizations learn to learn? n n n Making this distinction allows us to ask the question of whethere is similarity between the two. This is important because effectiveness results from developing a correspondence between theory-inuse and adopted/espoused theory. For example, in explaining our actions to a colleague we may call upon some convenient piece of theory. We might explain our sudden rush out of the office to others, or even to ourselves at some level, by saying that a 'crisis' had arisen with one of 'our' clients. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 10

Reading 21 - Organizational Learning 21. 1 Can organizations learn to learn? n The theory-in-use might be quite different. n We may have become bored and tired by the paper work or meeting and felt that a quick trip out of an apparently difficult situation would bring welcome relief. n A key role of reflection we could argue is to reveal theory-in-use and to explore the nature of the 'fit'. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 11

Reading 21 - Organizational Learning Single-loop and double-loop learning According to Argyris and Schon (1978: 2) learning involves the detection and correction of error. When something goes wrong governing variables such as given or chosen goals, values, plans and rules are operationalized rather than questioned. This is called single-loop learning. An alternative response is to question the governing variables themselves, to subject them to critical scrutiny. This is described as double-loop learning. Such learning may then lead to an alteration in the governing variables and, thus, a shift in the way in which strategies and consequences are framed. This is how the process of organizational learning is usually T 205 B-Systems' Thinking & Practice - AOU 12 Lebanon Branch described.

Reading 21 - Organizational Learning Single-loop and double-loop learning When the error detected and corrected permits the organization to carry on its present policies or achieve its present objectives, then that error-and-correction process is single-loop learning. Single-loop learning is like a thermostat that learns when it is too hot or too cold and turns the heat on or off. The thermostat can perform this task because it can receive information (the temperature of the room) and take corrective action. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 13

Reading 21 - Organizational Learning Single-loop and double-loop learning Double-loop learning occurs when error is detected and corrected in ways that involve the modification of an organization’s underlying norms, policies and objectives. While many organizations are proficient at single-loop learning, double-loop learning is rather elusive. This is especially true for bureaucratic organizations which do not support flexibility, creativity and innovation, and obstruct the learning process. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 14

Reading 21 - Organizational Learning Single-loop and double-loop learning The three most important obstructions which are also found in non-bureaucratic organizations include: 1. Adopting a reductionist approach for dealing with problems where the overall task is broken down into small parts, without recognizing the overall picture. This can result in some conflict in interests and goals. Under such circumstances the existence of single-loop learning makes it very difficult to challenge operating standards (double-loop learning). T 205 B-Systems' Thinking & Practice - AOULebanon Branch 15

Reading 21 - Organizational Learning Single-loop and double-loop learning The three most important obstructions which are also found in non-bureaucratic organizations include: 2. Rewarding success and punishing failure which, leads to employees covering up their failures and to managers undermining the effects of problems in the hope that they will disappear. 3. The existence of a gap between what people do and what they say they are trying to do. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 16

Reading 21 - Organizational Learning 21. 2 How to facilitate learning to learn The success of the process of learning to learn is dependent on the organization’s ability to remain open to changes occurring in the environment, and on its ability to challenge operating assumptions in a most fundamental way. This learning oriented approach can be developed using the following guidelines: T 205 B-Systems' Thinking & Practice - AOULebanon Branch 17

Reading 21 - Organizational Learning 21. 2 How to facilitate learning to learn This learning oriented approach can be developed using the following guidelines: 1. Encourage and value an openness and reflectivity that accepts legitimate error and uncertainty as an inevitable feature of life in complex and changing environments. This allows employees to deal with problems constructively specially in turbulent environments. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 18

Reading 21 - Organizational Learning 21. 2 How to facilitate learning to learn This learning oriented approach can be developed using the following guidelines: Ø A philosophy of “it is admissible to write off legitimate error against experience” and that “negative events and discoveries can serve as a source of knowledge and wisdom of great practical value” is an example of the kind of stance required. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 19

Reading 21 - Organizational Learning 21. 2 How to facilitate learning to learn This learning oriented approach can be developed using the following guidelines: 2. Encourage an approach to the analysis and solution of complex problems that recognizes the importance of exploring different viewpoints. This helps in probing the various dimensions of the situation, and allows constructive conflict and debate between advocates of competing perspectives. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 20

Reading 21 - Organizational Learning 21. 2 How to facilitate learning to learn This learning oriented approach can be developed using the following guidelines: 3. Avoid imposing structure of action upon organized settings. This involves a new means of approaching the planning process. Instead of just specifying profit objectives or desired market shares, an organization should also plan what it wishes to avoid. 4. Make interventions and create organizational structures and processes that help in implementing the above principles. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 21

Reading 22 - The Holographic Organization As opposed to the traditional hierarchy Morgan argued that there are newly emergent approaches of organizational structures specifically the holographic organization. Morgan challenges the traditional view of the organization? … as a kind of human machine, sets of assemblies fitting together closely to the image of the organization T 205 B-Systems' Thinking & Practice - AOULebanon Branch 22

Reading 22 The Holographic Organization The four key hologram-like properties: G. Morgan The capacity to get the whole into parts 2. The creation of connectivity and redundancy 3. The simultaneous creation of specialization and generalization 4. The capacity of self-organization 1. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 23

The holographic organization Task to study the means of achieving 4 properties Principle of redundant functions: building the whole into parts by creating redundancy, connectivity, simultaneous specialization & generalization REDUNDANCY OF FUNCTIONS Principles of minimum critical specification & learning to learn: provide ways of enhancing capacities for selforganization LEARNING TO LEARN HOLOGRAPHIC ORGANIZATION Principle of requisite variety: provide guidelines for the design of the whole relations showing exactly how much of the whole needs to be built into a given part REQUISITE VARIETY T 205 B-Systems' Thinking & Practice - AOU- Lebanon Branch MINIMAL CRITICAL SPECIFICATION 24

Reading 22 The Holographic Organization Redundancy of Functions A self-organized system needs an element of redundancy: form of excess capacity which, when appropriately designed and used creates room for maneuver Without such redundancy a system has no real capacity to reflect on and question how it is operating and to change its mode of functioning in constructive ways or has no capacity for intelligence in the sense of being able to adjust action to take account of changes in the nature of relations within which the actions is set. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 25

Reading 22 The Holographic Organization Two methods for designing redundancy into a system Redundancy of parts: Each part is designed to perform a specific function Special additional or duplicate parts being added to the system for the purpose of control and to back up or replace operating parts whenever they fail Involvement is partial (forming one part or incomplete) and instrumental 1. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 26

Reading 22 The Holographic Organization 2. Redundancy of Functions: Is relevant to the holographic organization Extra functions are added to each of the operating parts instead of spare parts being added to the system Each part can engage in a range of functions rather than just perform a single specialized activity Involvement is more holistic and all-absorbing T 205 B-Systems' Thinking & Practice - AOULebanon Branch 27

Reading 22 The Holographic Organization Examples: Two methods for designing redundancy into a system Redundancy of parts: EX: supervisors have fixed roles to perform so when a problem arises outside their role, it is typically viewed as “someone else’s problem” Redundancy of functions: EX: here, the parts take their specific shape at any one time in relation to the contingencies and problems arising in the total situation (members acquire multiple skills so they are able to perform each other’s jobs and substitute for each other as the need arises) This organization design possesses flexibility and a capacity for recognizing within each and every part Thinking & Practice - AOU 28 of the system T 205 B-Systems'Lebanon Branch

Reading 22 The Holographic Organization Requisite variety (question) Ø How much redundancy should be built into any given part? (excess capacity designed and used to reflect and question how it is operating and change its mode of functioning in constructive way: by using special additional parts added to the system for the purpose of control or by using extra functions added to the operating parts) Holographic principle suggests that we should try & build everything. But in modern organization, the range of knowledge and skills required is such that it is impossible for everybody to become skilled in everything, so what do we do? T 205 B-Systems' Thinking & Practice - AOU 29 Lebanon Branch

Reading 22 The Holographic Organization Requisite variety (Answer) Ø The idea of “requisite variety” becomes here very important (things needed and required by circumstances or for success) W. Ross Ashby suggestion: (cybernetician) Any control system must be as varied (full of changes or variety) and complex as the environment being controlled Holographic design context: All elements of an organization should embody (include) critical dimensions of the environment with which they have to deal to self-organize to cope with the demands they are likely to face T 205 B-Systems' Thinking & Practice - AOULebanon Branch 30

Reading 22 The Holographic Organization Questions & Answers Holographic design context Ø To pay close attention to the boundary relations between units and their environments Ø To ensure that requisite variety always falls within the unit in question Ø What is the nature of the environment faced? T 205 B-Systems' Thinking & Practice - AOULebanon Branch 31

Reading 22 The Holographic Organization Questions & Answers Holographic design context Ø If so (yes), you should build multi-functioned people as in the model of autonomous work group Ø If not (no), you should build multi-teams that collectively possess the requisite skills and abilities and where each member is as generalized as possible creating a pattern of overlapping skills and knowledge bases in the team overall T 205 B-Systems' Thinking & Practice - AOULebanon Branch 32

Reading 22 The Holographic Organization can be developed in a cellular manner around self-organizing, multi-disciplined groups having the requisite skills and abilities to deal with the environment in a holistic and integrated way Implications of requisite variety on every aspect of organization: Very important implications in favor of a proactive (supporting) embracing (using) of the environment in all its diversity The principles of redundant functions and requisite variety create systems with a capacity for self-organization (capacity to be realized) The coherent direction to assume: the principle of minimum critical specification. T 205 B-Systems' and of. Thinking learning to learn & Practice - AOU 33 Lebanon Branch

Reading 22 The Holographic Organization Minimum Critical Specification Ø To preserve flexibility by suggesting no more than is absolutely necessary for a particular activity to occur Ø This reverses the bureaucratic principle that organizational arrangements need to be defined as clearly and precisely because when attempting to organize in this way, one eliminates the capacity for selforganization T 205 B-Systems' Thinking & Practice - AOULebanon Branch 34

Reading 22 The Holographic Organization - Minimum Critical Specification - The principle of redundant functions creates flexibility and the more we pre-design, the more we erode this flexibility - EX: if organizational designers adopt a facilitating role they create enabling conditions allowing the system to find its own form, allowing to change and evolve according to circumstances keeping a flexible and diversified organization capable of evolving structure sufficient and appropriate to deal with the problem arising T 205 B-Systems' Thinking & Practice - AOULebanon Branch 35

Reading 22 The Holographic Organization - Minimum Critical Specification - The principle of minimum critical specification preserve capacities for self-organization (that bureaucratic principles erode) - The danger of such flexibility is to become chaotic - This is why the principle of learning to learn must be developed as a 4 th element of holographic design T 205 B-Systems' Thinking & Practice - AOULebanon Branch 36

Reading 22 The Holographic Organization - Learning to learn - A system’s capacity for coherent self-regulation and control depends on its ability to engage in processes of single and double loop learning - These allow a system to guide itself with reference to a set of coherent values or norms and questioning whether these norms provide an appropriate basis for guiding behavior - The most important functions of those responsible for designing and managing the enabling conditions is: helping to create a context fostering this kind of shared T 205 B-Systems' Thinking & Practice - AOU 37 identity and learning orientation Lebanon Branch

Reading 22 The Holographic Organization - Learning to learn Ex: strong tendencies created in modern organizations through the introduction of micro-processing technologies diffusing information, communications and control. Ø Micro-processing creates a capacity for networks of information exchange and interlocking controls making many aspects of hierarchy unnecessary Ø - A work design to create a holistic relationship between people and their work: employees acquire a sense of identity with the firm and its products, with processes and becomes involved with the productive process in the fullest sense T 205 B-Systems' Thinking & Practice - AOULebanon Branch 38

Reading 23 Organizational Culture 23. 1 What is organizational culture? Organizational culture consists of the values, symbols, stories, heroes, and rituals and ceremonies that have special meaning for the people who work for a firm. Culture represents the emotional, intangible part of the organization. 1. Values: deep-seated, pervasive standards that influence almost every aspect of our lives, our moral judgments, responses to other and commitments to personal and organizational goals. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 39

Reading 23 Organizational Culture 23. 1 What is organizational culture? 2. Symbols: things that stand for or that suggest something else, an element of organizational culture. The symbol might be a natural object, a manufactured object, a setting, or even a performer. 3. Stories: narrative repeated among employees and usually based on fact, they help pass on a culture by acting as maps of how things are done. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 40

Reading 23 Organizational Culture 23. 1 What is organizational culture? 4. Heroes: company role models whose deeds, character, and support for the existing organizational culture highlight the values a company wishes to reinforce. 5. Rituals: guides to behavior in daily organizational life, including evaluation and reward procedures, regular staff, meetings, and farewell parties. 6. Ceremonies: similar to rituals, but more elaborate productions that occur less frequently. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 41

Reading 23 Organizational Culture Functions of Organizational Culture serves many important functions in organizations. For instance, culture influences the following: 1. Cooperation: By providing shared values and assumptions, culture may enhance goodwill and mutual trust, encouraging cooperation. n T 205 B-Systems' Thinking & Practice - AOULebanon Branch 42

Reading 23 Organizational Culture n Functions of Organizational Culture 2. Decision making: shared beliefs and values give organizational members a consistent set of basic assumptions and preferences. This may lead to more efficient decision making, since there are fewer disagreements about which premises should prevail. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 43

Reading 23 Organizational Culture n Functions of Organizational Culture 3. Control: culture serves as an informal organizational control system, informally approving or prohibiting some patterns of behavior. When everyone agrees on values, fewer managers are needed. Communication: culture reduces communication problems, in at least two ways. First there is no need to communicate in matters for which shared assumptions already exist. Second shared assumptions provide guidelines and cues to interpret messages that are received. 4. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 44

Reading 23 Organizational Culture n 5. 6. 7. Functions of Organizational Culture Commitment: people feel committed to an organization when they identify with it and feel emotional attachment to it. Perception: we have said elsewhere that organizational reality is socially constructed, what an individual sees is conditioned by what others sharing the same experience say they are seeing. Shared beliefs and values provide the members of an organization with shared interpretations of their experience. Justification of behavior: Finally culture helps organization members make sense of their behavior by providing justification for it. T 205 B-Systems' Thinking & Practice - AOU 45 Lebanon Branch

Reading 24 Handy’s Culture Typology n “Out of my depth”, “not my scene”, “feeling out of place”, are phrases often used to refer to situations that we experience as different. Cultures can vary in many different respects. 24. 1 Handy’s four types Handy distinguishes between four organizational structures: n T 205 B-Systems' Thinking & Practice - AOULebanon Branch 46

Reading 24 Handy’s Culture Typology n 24. 1 Handy’s four types 1. Role cultures are often found in bureaucracies, and are dominated by a concern for correct role behavior, conformity to rules, and respect for the system. 2. Power cultures are often found in organizations dominated by a powerful central individual or group. It is common in family firms or small businesses, or in organizations that are growing very rapidly, where a central team decides and everyone else follows. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 47

Reading 24 Handy’s Culture Typology n 24. 1 Handy’s four types 3. Task-centered cultures often appear in small organizations or those that have successfully adopted project or matrix structures. Expertise, adaptability and teamwork are the basis for respect. However it is difficult to achieve economies of scale or great depth of specialist expertise in this culture, and it can be hard to control. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 48

Reading 24 Handy’s Culture Typology n 24. 1 Handy’s four types 4. Person-centered cultures This form of cultures is unusual in traditional profit making organizations, it is important when there is a need to find new ways of operating. They exist for the people within them such as families, social groups, and barristers’ chambers. They are democratic and take time to make decisions, and best suited for small groups operating in a changing environment. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 49

Reading 25 Defensive and Supportive Climates An organizations climate affects its ability to learn. In this context we can distinguish between two sorts of climates: Defensive climates and supportive climates. 25. 1 Defensive climates In their book “Organizational Learning” Argyris and Schon argue that many organizations are reluctant to probe into their mistakes and fail to learn from them due to their existing culture of rewarding success and rejecting failure. They mentioned what they call the “unwritten rules” that govern organizational relationships: T 205 B-Systems' Thinking & Practice - AOULebanon Branch 50

Reading 25 Defensive and Supportive Climates 1. Employees personal views about sensitive issues should remain private 2. Differences in views regarding organizational problems should not be allowed to surface or to be tested. 3. Maps of the problem should remain scattered, vague and ambiguous, with no attempts to see the whole picture. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 51

Reading 25 Defensive and Supportive Climates 4. 5. 6. Employees must protect themselves unilaterally by avoiding direct interpersonal confrontations, and public discussion of sensitive issues which might expose them to blame. Employees must protect others unilaterally by avoiding the testing of assumptions that might evoke negative feelings, or expose other employees to blame. Employees should control the situation and the task – by making up their own mind about the problem and acting on their view. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 52

Reading 25 Defensive and Supportive Climates A defensive organizational climate limits the organization’s learning ability. When discussion of important issues is discouraged double-loop learning cannot be achieved. Ø In order for the organization to be able to deal with a defensive climate two conditions must be met: 1. Being able to recognize when people are behaving in accordance with the unwritten rules of a defensive climate. 2. Having a clear idea of what a viable alternative looks like. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 53

Reading 25 Defensive and supportive climates T 205 B-Systems' Thinking & Practice - AOULebanon Branch 54

Reading 25 Defensive and Supportive Climates n 1. 2. 3. 4. 5. 6. 7. The Supportive Climate For double loop learning to occur a supportive climate must be adopted which allows: Employees to discuss sensitive issues openly and freely Differences in viewpoints to be tested publicly Vague and ambiguous data to be made clear, and the situation to be seen holistically Interpersonal confrontation, even if it leads to negative feelings, to take place Protection of oneself and others to be made a joint task towards growth T 205 B-Systems' Thinking & Practice - AOU 55 The task to be controlled jointly. Lebanon Branch

Reading 25 Defensive and Supportive Climates n Communicative competence, self-awareness and good working relationships are practical requirements for effective involvement in the intellectual and social process of problem solving. T 205 B-Systems' Thinking & Practice - AOULebanon Branch 56

Reading 26 Bate’s Study of Organizational Culture In the late 1970 s Paul Bate conducted a study of three UK companies, a chemicals company, a footwear company, and a dairy products company to test their problem solving capability. In his findings he concluded that six factors in organizational culture hinder the organizations’ ability to solve problems, these factors include: T 205 B-Systems' Thinking & Practice - AOULebanon Branch 57

Reading 26 Bate’s Study of Organizational Culture 1. 2. 3. 4. 5. 6. Unemotionality: “avoid showing or sharing feelings or emotions. Depersonalization of issues: “Never point the finger at anyone in particular”. Subordination: “Never challenge those in authority and always wait for them to take the initiative in resolving your problems”. Conservatism: “Better the devil you know”. Isolationism: “Do your own thing and avoid treading on other people’s toes”. Antipathy: “On most things people will be opponents rather than allies. ” T 205 B-Systems' Thinking & Practice - AOULebanon Branch 58

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