Shows when changes are introduced that take into account the sentiments of the workers they develop their own values and tend to be more in harmony with the aims of management o Bank Wiring Observation Room – output was held relatively constant and there was a hypersensitivity to change on the part of the worker (almost oppositional to change) Informal Structure: Practices and beliefs which workers had in common and that tended to work against the economic practices of the company Experiments – had seemingly opposing results, but it was because the two had two very different informal structures; since the Relay group was more collaborative there weren’t greatly affected. Different Ways An Organization is Evaluated • The logic of cost – system of ideas and beliefs by which the common economic purpose of the total organization are evaluated (applies mostly to technical organization) o In Human Organization usually referred to as “efficiency” • The logic of efficiency – system of ideas and beliefs organized around the symbol of cooperation o Basic assumption that nothing would interfere with economic motives • The logic of sentiments – represents the values residing in the interhuman relations of the different groups within the organization; deeply rooted in sentiment and feeling o Examples: arguments concerning ‘seniority’, ‘fairness’ etc. • The logics of cost and efficiency are more important to management while the logic of sentiments is more important to the employees. Week 6
Readings for Chandler and Fligstein—Not assigned Week 7 Khurana. “ Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs ” * Khurana argues that the CEO labor market is unique for three reasons: 1. the small number of buyers and sellers 2. the high risk to participants 3. concerns about legitimacy. * The operation of CEO labor market (and economic institutions in general) can only be understood in the context of broader social structures * The social construction of the CEO market/the social construction of efficiency * Shift from internal to external market for CEOS * For years the internal market for CEO search was favored because this was deemed the most efficient (Fligstein) way to select them; CEOs require know-how and skills specific to a firm to run it most efficiently. Also, when new employees join a firm, it is not evident in advance who will acquire the know-how to be the best person to run the firm. Therefore, firms use internal labor markets, capitalizing on training and promotions, to impart firm-specific knowledge and learn who is likely to be the most effective CEO * Today almost 1/3 of all the CEOs selected by large, publicly traded corporations are outsiders; social constructionist perspective allows us to see that the rise in th external CEO labor market has its own social structure and way of being that cannot be explained with reference to economic efficiency * For example, one of the three actors in any external CEO search is the executive search firm (i.e. headhunters as discussed in lecture). Efficiency theorists would argue this is
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- Spring '10
- Management, Charisma, Charismatic authority