STRATEGIES OF EXPANSION AND ORGANIZATIONAL DEVELOPMENTS IN EUROPEAN AND AMERICAN FIRMS 1

Summary The pace of change of the last ten years has challenged the traditional management processes to the point that the key organizational question is no longer to fit new strategies into available organizational patterns but instead to fit the organizational structure to the kind of problems to be faced. However, the intricacy of strategic and structural difficulties is often such that the appraisal of organizational inadequacies may prove difficult: symptoms may be wrongly considered as problems which may in turn be over-or understated so that corrective measures may well be inappropriate. This is why the saying‘When in trouble, reoganize!’is of little practicability. The lack of organizational planning in framing responses to structural problems will more and more make adjustments necessary. In our attempts to define the nature of organizational changes which are likely to occur within business firms in the future, we shall isolate the stragetic decisions related to corporate expansion on a transnational, trans-continental and eventually on an intercontinental scale. We shall start by analysing present organizational patterns — as they reflect decisions made in the past regarding current strategies — and we shall try to outline some possible structural developments as they may be required by the implementation of future strategies.     

LEADER STYLE IN STRATEGY AND ORGANIZATIONAL PERFORMANCE: AN INTEGRATIVE FRAMEWORK*

By means of reviewing existing literature about the role of leaders in determining organizational strategy, an integrative analytical framework is developed. the framework considers the leader to be key to both the formulation and implementation of strategy. It further identifies factors that moderate the leader's impact on strategy. Hypotheses are presented along with implications for future research regarding the role and impact of leadership.     

STRATEGY, STRUCTURE AND CULTURE: CADBURY, DIVISIONALIZATION AND MERGER IN THE 1960S*

This case study re-examines the history of Cadbury, the British-based chocolate confectionery manufacturer, to give an insight into the relationship between strategies of diversification, adoption of a multidivisional structure, and culture in relation to labour management. During the 1960s Cadbury undertook diversification, divisionalization and merger, all of which were affected by, and had an effect upon the Cadbury culture developed at the Bournville factory in Birmingham, England. Contemporaneous documentary evidence, especially the Cadbury board minutes, are used to question the prevalent view, mostly based on retrospective interviews with managers, that cultural change was the outcome of intended management strategies. Instead it is argued that the dilution of the Cadbury culture was the unintended consequence of diversification and divisionalization rather than a conscious abandonment on the part of a new generation of Cadbury directors or the influence of Schweppes after the merger with Cadbury.     

COMING TO TERMS WITH THE FIELD: UNDERSTANDING AND DOING ORGANIZATIONAL ETHNOGRAPHY*

This article argues that ethnography is inadequately understood and recognized within administration science as a method for studying organizational culture. Ethnographic analyses of organizational cultures are largely absent from the administration science literature, primarily because such work derives from a social constructionist understanding of science. The knowledge of organizations thus provided is interpretive, denying the subject—object dichotomy inherent in mainstream empiricist applications of social analysis. In addition, whereas ethnographic analysis and writing is an appropriate method for studying culture, organizational ethnography is substantially different from ethnographic studies of whole (and largely foreign) societies. Formal organizations are both partial and specialized in comparison to general societal organization. The conceptual and practical toolkit the organizational ethnographer brings to the field and the writing table is thus tailored to this particular research arena, and is outlined here.     

INTEGRATED SYSTEM, AUTONOMOUS DEPARTMENTS: ORGANIZATIONAL INVALIDITY AND SYSTEM CHANGE IN A UNIVERSITY*

Research on the relationship between computers and organization structure has mainly focused on the probable impact of technology on features of structure, while the effects of structure on technology have been relatively little considered apart from the way ‘organizationally invalid’ systems cause conflict and resistance. In recent processual perspectives, the relationship between technology and organization is seen not as deterministic but as one of mutual influence, with the outcome both for the organization and the technology emerging from interaction among various stakeholders during system development and implementation. This article, using a longitudinal case study, shows how organization structures can impact on the development process so as to alter computer-based systems to a design which is unintended but more consistent with existing organizational arrangements. It also discusses how systems specialists and managers can assess organizational invalidity, and offers a contingent framework for the courses of action to be taken if invalidity occurs.     

ORGANIZATIONAL INNOVATION: REVIEW,CRITIQUE AND SUGGESTED RESEARCH DIRECTIONS*

Despite broad interest and a vast literature, understanding of innovative behaviour in organizations remains relatively undeveloped. to contribute to the development of a more cumulative knowledge base, the author presents a conceptual review of the innovation literature by summarizing and organizing prior research into three related, though often confounded, research streams and identifies major reasons for the inconsistent and inconclusive nature of the research. Strategies for conducting more generalizable innovation research are suggested.     

NATURAL LEARNING AND MANAGERIAL ACTION: A PHENOMENOLOGICAL STUDY IN THE FIELD SETTING

An approach to collecting data about managers’ experience of their work is described, involving having them ‘think aloud’ while doing their work, and ‘re-live’ episodes soon afterwards. Some of the epistemological and methodological issues relating to this research approach are discussed. Examples of data are given, and 37 episodes of managerial work are analyzed for evidence relating to the question of how managers learn naturally from everyday experience. The analysis suggests that the concept of levels of learning proposed by Bateson (1973) is useful. An initial categorization of processes of learning, arising from the data, are presented. Some evidence that the profounder forms of learning are incremental rather than sudden is presented, and the issue of the functionality of profounder versus more superficial forms of learning in relation to everyday managerial work is raised.     

INSTITUTIONALISED JUSTIFICATION OF CORPORATE ACTION: INTERNATIONALISATION AND THE EU IN CORPORATE REPORTS

This paper provides an institutional analysis of the way a set of Finnish firms have used the concept of internationalisation and the EU in justifying major strategic decisions. They have used internationalisation, and in particular the then new possibility of Finland joining the EU, as an argument in support of radical change. An analysis of their annual reports reveals a number of institutional arguments which are strong because they are generally accepted, a priori, as being important not only to firms but indeed to Finland as a whole. In using institutional arguments firms are aligning their own interests with those of the country, and in so doing are able to justify radical changes in most parts of their own organisations. We are not claiming that Finnish firms should not react to the challenges which EU represents. Rather, we suggest that by using institutional arguments they are borrowing legitimacy from a wider public. The arguments used are typically very broad, invoking very general visions of the role of Finland in the EU. We call these arguments “easy rides” because, even if they are only partially explicated, it is generally assumed that they will become accepted without questioning by public and employees alike. Certain specific patterns of “easy rides” can be distinguished: i) The mobilisation of a “national mission”, ii) “Sacrifice now, reap the benefit later”, and iii) “Bigger is better”. The paper concludes with a methodological discussion about the difficulty of distinguishing between the technical/functional and the institutional arguments.     

EXPLORATIONS IN MACRO COMMUNICATION BEHAVIOUR: THE EFFECTS OF ORGANIZATIONAL FEEDBACK ON ORGANIZATIONAL EFFECTIVENESS [1]

Organizational feedback is identified as an attribute of organizations and as a form of macroscopic communication behaviour. Previous organizational theory is used to generate propositions linking organizational feedback (horizontal and vertical) to organizational effectiveness in order to evaluate the construct validity of feedback. Reliable measures of feedback are devised and the posited relationships are empirically examined using federated nonprofit organizations. Horizontal feedback is observed to be positively related to three forms of organizational effectiveness (goal attainment, superordinate approval and lateral approval). Vertical feedback is found to be positively related only to goal attainment. Organizational feedback is concluded to be a viable concept worthy of further investigation and additional research on communication as a property of organizational collectivities is recommended.