MANAGING & ORGANIZATIONS SAGE has been part of the global academic community since 1965, supporting high quality research and learning that transforms society and our understanding of individuals, groups, and cultures. SAGE is the independent, innovative, natural home for authors, editors and societies who share our commitment and passion for the social sciences. Find out more at: www.com MANAGING & ORGANIZATIONS STEWART CLEGG MARTIN KORNBERGER TYRONE PITSIS © Stewart Clegg, Martin Kornberger and Tyrone Pitsis 2011 First edition published 2004 Second edition published 2008 Reprinted 2009 This third edition published 2011 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers.
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All material is © Stewart Clegg, Martin Kornberger and Tyrone Pitsis, 2011 SAGE Publications Ltd 1 Oliver’s Yard 55 City Road London EC1Y 1SP SAGE Publications Inc. 2455 Teller Road Thousand Oaks, California 91320 SAGE Publications India Pvt Ltd B 1/I 1 Mohan Cooperative Industrial Area Mathura Road New Delhi 110 044 SAGE Publications Asia-Pacific Pte Ltd 3 Church Street #10-04 Samsung Hub Singapore 049483 Library of Congress Control Number: 2011940970 British Library Cataloguing in Publication data A catalogue record for this book is available from the British Library ISBN 978-0-85702-040-6 ISBN 978-0-85702-041-3 (pbk) Typeset by C&M Digitals (P) Ltd, Chennai, India Printed and bound in Great Britain by Ashford Colour Press Ltd Printed on paper from sustainable resources ‘This is an exciting book. It covers the most important concepts in good currency. The coverage is based on the best and most relevant research.
It connects with practical problems. It is written in language that is clear and accessible. It contains innovative exercises to help the readers expand their knowledge beyond simply reading this book.’ Chris Argyris, James B. Conant Professor Emeritus, Harvard University and Monitor Group ‘This is truly the most exhaustive textbook on organization and management that ever existed.
It conveys complex messages avoiding complicated style; it moves gracefully between the summaries of theories and examples from practice, between models to imitate and errors to be avoided, between micro and macro lenses applied to organizational phenomena. While obviously meant as a travel guide – a thorough and detailed manual for the beginners, it offers many unexpected insights and pearls of wisdom even for the most seasoned travelers interested in knowledge of and about management., Professor of Management Studies, Göteborg University ‘Managing and Organizations succeeds at being practical and honest in its treatment of working in and with organizations. It challenges students to build their competencies and insights step by step while deepening their awareness of opportunities for genuine achievement while working through workplace conflicts and politics. Heinz II Professor of Organizational Behavior and Public Policy, Director, Project on Evidence-based Organizational Practices, Carnegie Mellon University ‘A textbook on managing thinking and practice that takes the reader into “real life”, within and outside organizations.
It is conceived as a travel guide that allows to connect and make connections between what is already known and what may be discovered and enjoyed during the voyage. It is friendly and challenging, simple and complex at the same time. And, most important, it is faithful: it delivers what is promised in the first lines of its introduction.’ Silvia Gherardi, University of Trento, Italy ‘Here it is, the second edition of one of the best and most intriguing introductions to the complex processes of managing in organizations to be written in the past decade … It offers a perfect mix of practical information and well-thought-out and challenging theoretical insights, which will help the reader to reflect critically on the complex processes of managing and organizing.’ Hans Doorewaard, University of Nijmegen, The Netherlands ‘The book is up-to-date yet historically grounded. It is easy to read yet richly textured.
It maps the territory of organizational studies in clear and useful ways. Its lively format, excellent examples, and topical coverage make it a unique and highly relevant text for becoming a thoughtful practitioner of organizations.’ Jane Dutton, Robert L. Kahn, Distinguished University Professor of Business Administration and Psychology, University of Michigan ‘The book is a true pleasure to read! It is an excellent “travel guide to the world of management”, not only because of its wealth of detailed information and insight, but also because it makes you want to travel! Don’t leave home without it! And if you don’t go, read it at home!’ Kristian Kreiner, Professor – Copenhagen Business School – Department of Organization, Director – Center for Management Studies of the Building Process – Realdania Research ‘Managing and Organizations is a real adventure … it is a novel, innovative and unconventional textbook, which will not only inform but will also entertain … a real must in understanding the process of management and organizational behavior. Cooper, CBE, Professor of Organizational Psychology and Health at Lancaster University Management School, and Editor in Chief of the Blackwell Encyclopedia of Management ‘Critical and practical, scholarly and aesthetically enjoyable … Students on Master courses and reflective practitioners will find insight, inspiration and encouragement to think differently about what has been seen as a pretty dry area.
What more could be expected of a learning and teaching resource?’ Richard Weiskopf, Department of Organization and Learning, School of Management, Innsbruck University ‘Most textbooks discuss in vitro organizations: bloodless, lifeless, distorted and inanimate, hence ready for study and dissection. This volume is different. Written as a “realist’s guide to management”, it pictures organizations as they are in the “real world”: alive, paradoxical, emotional, insecure, self-confident, responsible, irresponsible. This book, in other words, contains life, the life of organizations.
To read this book is to live that life.’ Miguel Pina e Cunha, Universidade Nova de Lisboa ‘In an age where there is saturation of textbooks on Managing and Organizing, particularly due to their limited impact on management practice, this book provides a truly refreshing perspective.’ Elena Antonacopoulou, Professor of Organizational Behaviour, University of Liverpool Management School ‘This book is both scholarly and fun. It may even give textbooks a good name! I thoroughly recommend it to all students and lecturers who want something more enjoyable, insightful and enduringly satisfying than McManagement takeaways or force-fed ivory tower correctness. Badham, Professor of Management, Macquarie Graduate School of Management SUMMARY OF CONTENTS About the Authors Acknowledgements Introduction Guided Tour Companion Website PART ONE Managing People in Organizations 1 Managing and Organizations 2 Managing Individuals 3 Managing Teams and Groups 4 Managing Leading, Coaching, and Motivating 5 Managing Human Resources 6 Managing Cultures PART TWO Managing Organizational Practices 7 Managing Power, Politics, and Decision-Making in Organizations 8 Managing Communications 9 Managing Knowledge and Learning 10 Managing Innovation and Change 11 Managing Sustainably: Ethics and Corporate Social Responsibility PART THREE Managing Organizational Structures and Processes 12 Managing One Best Way? 13 Managing Beyond Bureaucracy 14 Managing Organizational Design 15 Managing Globalization Bibliography Glossary Index CONTENTS About the Authors Acknowledgements Introduction Guided Tour Companion Website PART ONE MANAGING PEOPLE IN ORGANIZATIONS 1 MANAGING AND ORGANIZATIONS Managing, Organizations, Sensemaking Learning objectives Introduction Why theory? What is practice? Individuals in a society of organizations Individuals wrapped up in chains What are individuals? Managing Framing managing What do managers do? Organizations Organization characteristics Organizations go on while members change Organizations are huge repositories of rules Organizational identity Organizations as professional institutions Sensemaking What is sensemaking? Sensemaking characteristics Why are organizations interested in sensemaking? Tools and sensemaking Multiple sources of sensemaking in organizations Sensemaking can be a matter of life and death Sensemaking produces what we take to be rational Metaphors framing rationality Metaphors of division Metaphors of the organ Metaphors of choice and rationality Why are assumptions of rationality so influential? The changing contexts of managing and organizations Organizations and technological changes Changing relations of service and production Going global Changing conceptions of time and space Changing demographics; changing values Using Managing and Organizations Summary and review Exercises Additional resources Web section Looking for a higher mark? 2 MANAGING INDIVIDUALS Seeing, Being, Feeling Learning objectives Introduction Psychology at work Perception at work Perception and common errors Values: managing me, myself, and I Values Personality You are what you are: the trait approach You are what we think: the sociocognitive approach You are what you don’t know: the psychoanalytical approach You are what you grow: the humanist approach Personality and management Positive psychology: emotions and happiness Shiny happy people Summary and review Exercises Additional resources Web section Looking for a higher mark? Case study Notes 3 MANAGING TEAMS AND GROUPS Cohabitation, Collaboration, Consternation Learning objectives Introduction Team and group dynamics The things that bind: why we form groups Types of groups Group properties and processes Social impact and group size Social facilitation Conformance and obedience Groupthink Social loafing Developing teams Teams Team stages Teamwork as a reflexive process Team roles Gender roles Team conflict and managing tensions in teams Toxic handling in organizational conflict Summary and review Exercises Additional resources Web section Looking for a higher mark? Case study 4 MANAGING LEADING, COACHING, AND MOTIVATING Transformation, Instruction, Inspiration Learning objectives Introduction What is leadership? Leadership as traits Leadership as behaviour Situational and contingency theories Transactional, transformational, and charismatic approaches New perspectives on leadership Substitutes and neutralizers Leaders as servants and the postmodern condition Postmodernism, postmodernity, empowerment, and neutralization Leaders as coaches Leaders as motivators Motivation: a question of self-determination The positive psychology of leadership Leadership wisdom Is leadership culturally variable? The GLOBE project Summary and review Exercises Additional resources Web section Looking for a higher mark? Case study 5 MANAGING HUMAN RESOURCES Diversity, Selection, Retention Learning objectives Introduction HR origins HRM grows up HRM in context HRM and strategy HRM and environmental complexity Demographic changes: ‘talking’bout my generation’ Changing face of knowledge Institutional shaping of HRM Equity and diversity Occupational safety and health HRM in practice: the core functions Recruiting people Selecting people Retaining and developing people The industrial relations climate Unions Employment relations Summary and review Exercises Additional resources Web section Looking for a higher mark? Case study 6 MANAGING CULTURES Values, Practice, Everyday Organizational Life Learning objectives Introduction The concepts of culture High culture and the cultures of everyday life Levels of culture Stories of strong cultures Peters and Waterman: McKinsey changing the world of organizations Strong cultures, homogeneity, and disaster The culture of management Culture in Disneyland Organization culture and George Orwell’s Nineteen Eighty-Four Making up culture Different perspectives on culture The politics of managing culture The texts of culture Measuring national cultures Summary and review Exercises Additional resources Web section Looking for a higher mark? Case study PART TWO MANAGING ORGANIZATIONAL PRACTICES 7 MANAGING POWER, POLITICS, AND DECISION-MAKING IN ORGANIZATIONS Resistance, Empowerment, Ethics Learning objectives Introduction Sources of power Legitimacy Uncertainty Strategic contingencies Resources Politics Organizations as political arenas Power and the politics of resistance Resistance by distance Domination and authority Soft domination Electronic and team surveillance Empowerment Concertive control Institutional entrepreneurs and hegemony The extremes of power Total institutions The ethics of organizational obedience Techniques of power How ordinary people can use authority to do extraordinary things Positive power Power, politics, and decision-making The ethics of decision-making rationality Managing with positive power Summary and review Exercises Additional resources Web section Looking for a higher mark?