week 6 Organizational Theory And Development (B01)

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Organizational_Culture_and_Leadership_----_Part_Three_Culture_and_Leadership_through_Stages_of_Growth3.pdf

210 o r g a n i z a T i o n a l C u l T u r e a n D l e a D e r s h i p

changes to finding appropriate formal metrics that can be applied equita- bly across groups and units. This process often results in managers looking only at the numbers for their subordinates, leading to complaints that “my people are not accountable” when the numbers don’t meet the targets. This process reinforces the depersonalization from Level 2 to formal Level 1 dis- tant “professional” relationships.

Strategic Focus Becomes More Difficult

With growth, there is a proliferation of products, services, and markets, which makes it more and more difficult to allocate resources equitably and appropriately when each unit is fighting for “its fair share” while strategy calls for allocating resources differentially. Deciding which things to shut down (“eating one’s own children”) becomes very difficult.

The Role of Central Functions and Services Becomes More Controversial

With growth it becomes more difficult to decide whether each unit should have its own services or such services should be centralized. Which ones should be centralized and how they should be connected to their counter- parts in the units become very complex systemic dilemmas.

Growth of Responsibility for Others Increases

With age and experience managers in growing companies acquire subordi- nates for whom they are now responsible. Failure in doing one’s job now means not only losing one’s own job but jeopardizing the jobs and liveli- hoods of potentially countless others.

Decision Making Becomes Biased by Responsibility for Others

This process was clearest in DEC, where the same people who argued pas- sionately from their own logical premises when the company was small became managers of larger units, which led them to “sound logical” but actually to argue for protection of their own units. This bias is strongly

Schein, E. H. (2016). Organizational culture and leadership. John Wiley & Sons, Incorporated. Created from liberty on 2023-08-24 15:56:34.

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