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Week 1: A Foundational Framework THE THREE LENSES FOR UNDERSTANDING ORGANIZATIONS The Three Lenses ► Perspectives on organizations that ► Structural Design Lens distill the essence of related theories that share ideas about...

Week 1: A Foundational Framework THE THREE LENSES FOR UNDERSTANDING ORGANIZATIONS The Three Lenses ► Perspectives on organizations that ► Structural Design Lens distill the essence of related theories that share ideas about ► Political Lens human nature, the functions of organizations, the meaning of ► Cultural Lens organizing, and the information needed to make sense of an organization ► Each has its own assumptions and bases of research ► One is not better than the others. They all bring unique insights. The Structural Design Lens ► Focuses on orgs as systems deliberately constructed to achieve certain strategic goals ► Machine, rational optimization ► Strategic grouping: the boundaries that define clusters of tasks and activities ► Highly interdependent tasks usually go together to improve coordination ► Linking mechanisms: means to bridge boundaries across groups ► Formal (liaison roles, cross-unit groups) and informal (personal networks) ► Alignment mechanisms: means to connect the efforts of individuals and groups with the org’s strategy ► Often reward and incentive systems linked to performance measurement The Political Lens ► Focuses on orgs as contested struggle for power among stakeholders with different goals and interests ► Coalitions, negotiations ► Changes can be perceived as threats or opportunities, not just rational moves ► Sources of power: ► Position (formal authority, control over scarce resources), ► Personal (expertise, skills) ► Relational (network connections to information and influence) The Cultural Lens ► Focuses on orgs as social systems of people who take action according to the meanings they assign to situations ► Social and personal identities, cognitive and mental maps, morals and norms ► Cultural elements: symbols, artifacts, stories, and experiences from which meanings are derived; shared among members ► Attitudes, beliefs, and assumptions underly these ‘visible’ aspects of culture Let’s summarize our discussion ► Organizations can be analyzed from 3 different types of lenses ► They are distinct but can sometimes be blurred together; e.g., changing culture can influence power ► We have to consider all three ► For example a structural reorganization in a company might fail if the culture doesn’t support the new roles or if some powerful groups resist the change. ► Structure/hierarchy does not always equal power (or at least there are multiple sources of power that don’t correspond to position) ► Cultural: names, stories, norms, etc. have meaning for different people and can be a source of resistance ► Using the lenses doesn’t guarantee a perfect decision! Week 2: Decision-making Remember rational decision-making theory? ► The rational (economic) view of decision-making consists of three important theoretical tools: 1. Utility Maximization 2. Cost-Benefit Analysis 3. Opportunity Cost ► There are three assumptions that these tools rely on: ► People have fixed preferences (they know what they like and not subject to erratic change). ► People are self-interested (like more of X goods for themselves). ► People have full information (they know where to get what they want and understand all the options). But all managers face imperfect information ► Consider the decision to approve a subordinate’s project proposal. ► A manager needs to… ► Consider the impact of the project on other projects and on the organization’s strategy ► Ensure the decision is acceptable to those who influence the org