Part I
Theoretical Developments
1 Organizations as Obstacles to Organizing
Barbara Czarniawska
âWhat Is a Necessary Step in the Construction of Knowledge at One Moment Becomes an Impediment at Anotherâ
In this introductory section, I wish to return to a statement that I have made on various occasions (e.g., Czarniawska, 2006; but see also Shenhav, 2003): in the late 1960s, organization theorists changed the dominant meaning of the term organization so as to be able to import systems theory. Here, I repeat my argument in brief.
In 1961 Dwight Waldo, then a central figure in administration theory, wrote a review essay titled âOrganization Theory: An Elephantine Problem.â It was published in Public Administration Review, at the time a leading journal in the field. Waldoâs review encompassed six books, most of which were edited volumes. Among the most frequent contributors were Herbert Simon, James G. March, Richard Cyert, Chris Argyris, Mason Haire, Anatol Rappaport, Jacob Marshak, Rensis Likert, Peter Blau, William Foote Whyte, James Thompson, and Kurt Lewin. Waldo noted:
[N] early all the pieces printed or reprinted are the product of the past ten years; and ⌠a high proportion of the authors are in their early professional years. In short, ⌠there is no doubt that organization theory and research are in a boom period. (1961, p. 212)
In his review, Waldo discussed what he saw as the main trends in this boom. One was a transition from administration theory to organization theory. This shift resulted from an emergent paradigm in social science methodologyâbehaviorism (which we now include under a broader label of positivism)âintroduced under the banner of an emulation of the natural sciences. Such an approach did not sit well with the notion of administration, which was âan applied scienceâif it is not indeed a profession, an art, or something less. Administrative theoryâ suggests an engagement with the world, a striving after valuesâ (Waldo, 1961, p. 217). Organization theory was, on the other hand, a theory not of action, but of a unit existing âout there.â
What, then, was the object of âorganization theoryâ? In his thorough etymological investigation of the meaning of the word, William Starbuck (2003) discovered that:
The word âorganizationâ derives from an ancient Indo-European root that also spawn[ed] the words âorganâ and âwork.â The Roman verb âorganizareâ meant initially âto furnish with organs so as to create a complete human being,â but later Romans gave it the broader meaning âto endow with a coordinated structure.â Organizare migrated from Latin into Old French. In 1488, the French language included the word âorganization,â which an ancient dictionary defined self-reflectively as âthe state of an organized body.â ⌠Although dictionaries published between 1750 and 1840 do not mention this usage explicitly, around 1800 some writers began to use âorganizationâ to describe a property of societies. (p. 156)
This last usage persisted for another 150 years; organization was employed as a noun denoting a state of being organized and was used in the plural only to denote voluntary associations, as distinct from firms and public service offices. Thus Weber spoke about âthe modern organization of the civil service,â which was âmonocraticâ (Weber, 1920, p. 656). This interpretation of the termâas a label for a state achieved by actions of organizingâwas of no use for joining the major research fashion of the 1950s: systems theory (von Bertalanffy, 1950, 1951). The application of systems theory required a creation of âorganizationsââseparate units divided by âboundariesâ from their âenvironmentsâ and related to them by âadaptation.â
One can construct a strong counterargument to my thesis, or at least to my dating, in the form of one of the classics of organization theory, The Functions of the Executive by Chester I. Barnard (1938/1968). Barnard clearly spoke of âorganizations,â sometimes adding the adjective formal or business. But he had obviously also read Talcott Parsonâs The Structure of Social Action (1937/1968), in which Parsons had already applied systems theory, translating into its terms the classic works of sociology by Durkheim, Weber, and Pareto. Also, as Parson himself wrote in an introduction to the paperback edition of his book, âjust under 1200 hard cover copies were sold in the year 1966, some eighty per cent of the number in the original McGraw-Hill edition, which was exhausted only after approximately 10 yearsâ (1937/1968, p. v). Clearly, the time for this idea has come.
This conceptual move must have seemed appealing in the 1960s, as it provided a kind of middle ground between mechanistic Taylorism and idealist administration theory, and permitted close bonds with the most attractive branch of science at the timeâcybernetics (Wiener, 1948). It must also have been a relatively easy conceptual move, because it imitated a much earlier step made by Darwin. Lewontin (1995) pointed out that by introducing âorganism,â âenvironment,â and âadaptation,â Darwin sought to mechanize biology, which was still all too prone to mystification and idealism. Alas, as suggested in the quote that became the heading of this section, this loan has become a burden both for organization theory and for biology.
Indeed, at the present time, in the second decade of the 21st century, this set of metaphors is not providing good service to either human biology or organization theory. The environment is not a preexisting set of problems to which an organism, or an organization, must find solutions: these organisms or organizations created the problems in the first place. The environment of organisms consists largely of other organisms, and the environment of organizations consists almost entirely of other organizations (Perrow, 1991). By the same token, the notion of adaptation is misleading as a tool for understanding the relationship between an organism and its environment. And although it can be claimed that organisms have boundaries separating them from their environments, it is much more difficult to apply the notion of preexisting boundaries to organizations; mergers, acquisitions, transnationals, and networks make such an idea appear highly tenuous. New concepts and metaphors are constantly being sought, and administration theory has been revisited, together with many other forgotten ancestors. After all, as Waldo (1961) pointed out, while dutifully noting the triumphant entry of âthe scientific study of the American business organization,â the beginnings of organization theory could be found in Plato and Aristotle, and could be traced through Machiavelli and Hobbes to Fayol and Urwick.
I do not wish to imply that the presence of systems theory was a 50-year mistake, a hiatus in the development of the body of organizational knowledge. On the contrary, systems theory, and cybernetics in general, has been and remains the main inspiration for organization theory. But if organization theory itself was shaped to fit systems theory 50 years ago, at present it is systems theory that is adapted and selectively used by organization theoreticians. And returning to forgotten roots takes place on another, more sophisticated plane, and adduces more interesting results. It could be that after a half-century foray into systems theory, organization theory may return to administration theory (now called âmanagement,â however), not so much contrite as wiser.
By the 1990s, the idea of an organization/environment dichotomy was one of the many received dichotomies to collapse, due (among other reasons) to the observation that the environment of organizations primarily comprises organizations (Perrow, 1991). âInternal and external factorsâ were revealed as the epiphenomena of the activity of border making, and âmacro- and microsystemsâ as products of scientific epistemologies. The new economy turned out to be one in which workers own the means of production (through their pension funds) but do not control them (OâBarr & Conley, 1992), one in which organizations are born and die at the rate of the banana fly, and the Web is the market. New questions have been posed, two of them especially pertinent and provocative. If organizations are rational tools for the realization of collective interests, why are there so many different types of organizations? Michael Hannah and John Freeman (Hannah & Freeman, 1989) drew freely on evolution theory, taking populations of organizations as their unit of analysis. Walter W. Powell and Paul J. DiMaggio, and many other new institutionalists represented in the edited volume, The New Institutionalism in Organizational Analysis (Powell & DiMaggio, 1991), asked the opposite question: if organizations are rational tools for realization of collective interests, why are there so few kinds of organizations? Why are organizations increasingly similar?
Perhaps, said James G. March and Johan P. Olsen in Rediscovering Institutions (1989), organizations are best considered neither as ârational toolsâ for the realization of collective interests nor as ânatural and organic systems,â but as modern institutions. Their conceptualization changes, as do the practices and normative justifications of their existence change.
In what follows, I first ask if the changes in organization theory influenced the practice of organizing; that is, I try to evaluate the performativity of organization theory. Then I present a brief overview of theories that maintain a focus on organizing rather than on reified âorganizations.â Within this frame, I formulate two provocations vis-Ă -vis traditional organization theory, claiming that artifacts can liberate and discourses can imprison. In the end, I review several ways in which organizations can be obstacles to organizing.
Building a Golem: How Organization Theorists Helped to Reify Organizations
The readers will easily recognize in this heading an allusion to the by-now classic 1981 article of Michel Callon and Bruno Latour, âUnscrewing the Big Leviathan.â Their claim was, in short, that the difference between micro-actors and macro-actors is due not to their ânature,â but to the negotiations (including wars) and associations that built them. However, the process of creating the alliances that eventually form macro-actors is poorly understood because macro-actors obliterate any traces of their construction, presenting themselves through their spokespersons as being indivisible and solid. Social scientists contribute, often unwillingly, to this construction process, by increasing this solidity and consistency in their descriptions.
McKenzie, Muniesa, and Siu (2007) expanded this thought, claiming a strong performativity of economics. In their view, it is the science of economics that creates markets. Do organization theorists create organizations? Perhaps they do create (certain types) of organizations, but no doubt in association with some macro-actor: industry or the state.
This phenomenon can be seen in Philip Selznickâs book on the Tennessee Valley Authority, published in 1949âbefore the boom of systems theoryâbut already preparing a transfer from administration theory to organization theory. This âscholarly study of a complex organizationâ represents, on the one hand, everything from which the natural science-oriented researchers attempted to cut themselves free: a value-laden theory of (democratic) administration and an inductive methodology. On the other hand, it announces all the major trends to come: structural functionalism, behaviorism, and reification of organizing.
The TVAâthe complex organization under studyâwas conceived as a rational tool, implanted in the midst of institutional fields: a revolutionary, planned intervention against an evolutionary tradition of the place. In order to survive, said Selznick, the TVA had to co-opt local forces and adapt itself to them. Selznickâs study remained unique for a long time, in its simultaneous focus on an âorganizationâ and its âenvironment,â and its interest in both intra- and interorganizational processes. At the same time, it became a marketing device for TVA, leading, as Albert Hirschman (1967) pointed out, to a situation in which, for a number of years after World War II, any country that had a river valley had to have a copy of TVA.
In Great Britain after the war, the government promised expert support to any company that needed help in restructuring. The Tavistock Institute of Human Relations was given the task of collaborating âwith Management and workers in an attempt to solve the social and psychological problems which faced them through changes in methods of work or of managementâ (Rice, 1958/1987, p. 6). A large team of researchers would approach the company in question, study it, and deliver an exhaustive report, diagnosing its problems and suggesting solutions (thus the idea of âcompany doctors,â which additionally strengthened the conceptualization of a company as an âorganism,â a natural system). The leading names were Eric Trist, Albert K. Rice, Elliot Jaques, and Wilfred R. Bion.
The Tavistock Institute continued the Elton Mayo tradition (the Human Relations School) and combined it with an open system theory as represented by Von Bertalanffy. The concept of sociotechnical systems assumed that every production system contained a technological organization (equipment and process layout) and a work organization (people and their tasks). The two must fit together to fulfill their function, as judged by the economic viability of the production system. âEach system or subsystem has ⌠at any given time, one task which may be defined as its primary taskâthe task which it is created to perform. Thus the primary task of private enterprise in a Western economy is to make profits, while that of public utility is to give servicesâ (Rice, 1958/1987, p. 32). Consequently, the environment blurred into a generic provider of energy in return for fulfillment of the primary tasks, defined by the same environment. Yet within this frame, âorganizationâ is still a state of a system or a subsystem, such as âenterpriseâ or âutility.â
In 1958, James G. March and Herbert Simon published Organizations. The first edition of the book begins as follows:
This book is about the theory of formal organizations. It is easier, and probably more useful, to give examples of formal organizations than to define the term. The United States Steel Corporation is a formal organization; so is the Red Cross, the corner grocery store, the New York State Highway Department. The latter organization is, of course, part of a larger oneâthe New York State government. But for the present purposes we need not trouble ourselves about the precise boundaries to be drawn around an organization or the exact distinction between an âorganizationâ and ânonorganization.â We are dealing with empirical phenomena, and the world has an uncomfortable way of not permitting itself to be fitted into clean classifications. (1958/1993, p. 20)
By the second edition, they changed their minds about definitions: âOrganizations are systems of coordinated action among individuals and groups whose preferences, information, interests, or knowledge differâ (1993, p. 2).
By that time it was too late. The âcoordinated actionâ part has been omitted by most of their followers, with the exception of J. R. Taylor and Van Every (2000). Organizations were seen as systems of mechanical or organic parts, in which people were either cogs or body parts (heads and hands). March and Simon were primarily interested in brains, and reached out to the growing wealth of artificial intelligence studies to create a theory of decision making as attention allocation; the conceptualization of an organization as a computer (an information processing machine) came close.
Then and later (see e.g. W. R. Scott, 1987), there was a lively debate between the two schools as to whether organizations were more like machines (technical systems) or more like organisms (natural systems); but nobody seemed to question the proposition that organizations had to be seen as systems. The idea of âsociotechnical systemsâ mentioned above was a compromise, as was Tom Burns and G. M. Stalkerâs The Management of Innovation (1961), a book that reviewed 20 cases of postwar Scottish and English firms (15 in the growing electronics industry), and arrived at the conclusion that âmechanisticâ organizational structures were appropriate and effective in stable, simple environments, whereas dynamic and complex environments call for âorganicâ structures, flexible and self-adaptive. A work that strongly supported Burns and Stalkerâs thesis, although it had been developed independently, was Joan Woodwardâs Industrial Organization (1965).
By the 1960s, the idea launched by Burns and Stalker had developed into what was later called a contingency theory. By then it had been forgotten that Burns and Stalkerâs notion of a sociotechnical system was grounded in the observation that âthe social structure of the factory interlocked with, and often mirrored, that of the small isolated town in which it was situatedâ (1961, p. 1).
Contingency theory, in all its variations, matched some attributes of the internal organization with those of the environment. Paul R. Lawrence and Jay W. Lorsch (1967) took up this thread in the United States; and because it was easy to operationalize, it lent itself readily to empirical studies and intellectual cooperation. The British Aston Group became a paragon for collective research on organizational structures. It is noteworthy that, having reified âorganizationsâ into âobjectsâ with âattributes,â they needed new terms for the activity of organizing. Thus the Aston Group studied the âorganizational functioningâ (Pugh & Hickson, 1964/1996) and âthe way in which an organization is set up and runâ (p. 11).
Contingency theory ran out of power by the end of the 1970s, however, for at least three reasons. First, all environments seemed to be âturbulent,â demanding innovation and experiencing rapid change. âMechanisticâ organizations and âstable environmentsâ became counterfactuals, or remnants of the past. Second, the oil c...