organizational theory

David Lodge: Business and English

British writer David Lodge passed away in January, at the grand age of 89. I was sad to hear of his death, because his work meant a lot to me. He balanced two very different careers – academic and novelist – which had its challenges but also gave him a broad perspective on the world. And one of his novels particularly resonated with me as an undergraduate student, because I was trying to navigate the two different worlds depicted in that novel.

My undergraduate degree is a Bachelor of Business Administration, with majors in business and English. There was exactly one other person among the several hundred students in my BBA program who was also enrolled in business and English (he was doing a minor in English). The business students doing majors or minors in other subjects – and there weren’t many of them  – were enrolled in psychology, economics, or statistics.

I don’t exaggerate when I say that business students despised English students and English students despised business students. The business students thought the English students were (more…)

Not Recommended

Organizations that are run by elected boards of directors, or boards of elected executives, often struggle with either getting members to run for election, or getting the right members to run for election. Depending on the type of organization, directors or executives are expected to be responsible for many different functions – and for some organizations, like co-operatives, the directors also have important legal and financial obligations.

One strategy to address this issue is for the board to recommend candidates for election. The nomination process is usually still open to any member who wants to run, but the board, or a subcommittee of the board, identifies the skills most needed on the board, and recommends the candidates it feels has those skills.  This sounds like a good way to ensure a functional and effective board, and it’s often suggested as a strategy by governance experts, but in reality it can be highly problematic.

When Mountain Equipment Co-op (MEC) was sold to a corporate owner in 2020, without the board consulting the membership, one of the criticisms of the sale focused around the board’s practice of recommending candidates for election. It was alleged that this practice resulted in the board being composed of “targeted professionals” that led the co-op away from its core mission and purpose and resulted in a more corporate mindset that limited the board’s approaches to the co-op’s financial challenges.

If you look at the publicly posted minutes and election results of organizations that use the practice of recommending board candidates, you’ll immediately notice two things:

  • Recommended candidates are almost guaranteed to be elected, and
  • Voter turnout for board elections is generally very low

For example, Vancity Credit Union, which has more than 500,000 members, has had turnout rates of between three percent and seven percent in its last five board elections. And in all of those elections, all of the recommended candidates have been elected, with the exception of one year when there were more recommended candidates than vacant positions.

From an organizational theory perspective, the process of the board recommending board candidates can lead to groupthink. The board identifies the skills it needs, but that identification is based on its own inherently biased perceptions of “fit”, which can result in the recommended candidates being similar to those already on the board. This in turn  can lead not only to a limited range of approaches to problems or issues, but also to implicit pressure on board members to conform to the dominant mindset, even if they disagree.

What can boards do to avoid these problems?  Here are three simple suggestions:

  • Don’t recommend candidates. If the board has identified skills or qualities that it feels it needs, that information can be presented to the voters, and candidates can be encouraged to present their own information to demonstrate that they have those skills or qualities. Voters, rather than the board, can decide whether a candidate is a good “fit” for the current composition of the board.

 

  • Don’t pre-screen candidates, beyond ensuring that they meet the basic qualifications needed for board membership. (For example, BC’s Societies Act, which governs not-for-profit organizations, specifies that directors must not be employees or contractors of the organization, must be at least 18 years old, and must not be an undischarged bankrupt.) Discouraging candidates who don’t “fit” may mean discouraging valuable counter-perspectives or different points of view.

 

  • If the board establishes a subcommittee to participate in the nominations process – for example, by identifying or encouraging potential candidates – the majority of the subcommittee’s members should not be board members. If the board has enough members on the committee to control its decision making, then the subcommittee is neither independent nor impartial.

On a larger scale, an organization that has a consistently low turnout rate for elections can also benefit from looking at whether that too is a problem. Research on union members’ participations in elections has suggested that quality may be more important than quantity; in other words, that it’s better for the organization to have a smaller turnout of informed voters than a larger turnout of less-prepared voters.

However, if an organization recommends board candidates, and those candidates almost always get elected, over time voters may feel that their vote has no impact, and be less inclined to make the effort to vote. And that may lead to larger issues of lack of member involvement and participation, which can have long-term negative effects on the organization – no matter what qualities or skills are represented on its board.

Invisible Systems, Invisible Women

Reading one book right after another book can make you think differently about both books.

Caroline Criado Perez’ Invisible Women: Data Bias in a World Designed for Men and Chris Clearfield and András Tilcsik’s Meltdown: Why Our Systems Fail and What We Can Do about It are both very insightful. Invisible Women describes, through numerous and very depressing examples, how a world that pretends to be “gender neutral” is still a male world, because gender does matter.

When gender isn’t considered in system development or product design, or isn’t separated out in data collection, outputs that are supposed to serve everyone often don’t work for women. For example, first-responder safety gear designed for “average” (read=male) bodies can actually be dangerous for women to wear, because the components don’t fit correctly and thus aren’t as protective as they need to be.

Another of Criado Perez’ examples (more…)

Good Jobs and Bullshit Jobs

Recently, the New York Times Magazine had a special theme issue on “The Future of Work: What Makes a ‘Good Job’ Good?”. As it happened, the issue came out while I was reading the new book Bullshit Jobs: A Theory by anthropologist David Graeber. This was a lovely bit of symmetry, because both the book and the articles in the magazine address similar questions: with more automation in the workplace, why are we not working fewer hours? If we know as much as we do about organizations and work, why are so many workers so unhappy? Shouldn’t work be getting better, instead of getting worse?

These are very big questions with complex answers. I won’t try to cover everything that’s discussed in the book and the magazine articles, and have a wide-ranging but superficial discussion; I recommend that you read the book and the articles for yourself. But I’m going to pull out a couple of themes that I found particularly fascinating.

Both the book and the articles look at the worsening relationships between workers and employers and show that this trend isn’t just anecdotal. Surveys of job satisfaction over time show (more…)

Misreading the Environment, Part II

Nearly four years ago, I wrote this blog post about how the Globe and Mail newspaper responsed to allegations that columnist Margaret Wente had used uncredited sources in some of her writing. In that post, I talked about the model of population ecology, from organizational theory. The model suggests that if an organization wants to be considered legitimate, and to gain benefits of legitimacy such as resources and power, then it needs to monitor cues in its external environment, and respond to those cues in ways that the environment considers appropriate.

Wente was briefly suspended after those 2012 allegations, but returned to her job. This past week, the same blogger that found problems with Wente’s work in 2012 found uncredited material from other sources in Wente’s most recent column. The Globe‘s response to these findings was to publish a column by its public editor.  The column quoted the Globe‘s editor-in-chief as saying the paper would “work with Peggy to ensure this cannot happen again”, and that there would be apologies and corrections to the uncredited material.

After that, in Lewis Carroll’s words, “answer came there none” – despite (more…)

Newspapers, Endorsements, and Legitimacy

When a newspaper endorses a political party or a candidate during an election, the public assessment of the endorsement tends to turn on two factors: the reasoning leading to the endorsement, and the perceived legitimacy of the newspaper itself. But, as in any kind of legitimacy judgement of an organization, the perception of a newspaper’s legitimacy isn’t based on a single event or piece of information. It’s based on multiple factors, including the perceiver’s beliefs about whether the organization’s actions “are desirable, proper, [or] appropriate within some socially constructed system of norms, values, beliefs, and definitions”. And that is where the Postmedia newspapers in Canada went so spectacularly wrong with their endorsement of the incumbent Conservative Party in the upcoming federal election. (more…)

Protecting the Workplace “Star”

Last week, in light of the ongoing revelations in the story of former CBC host Jian Ghomeshi, the Financial Post ran a column entitled “Don’t be the CBC: How employers should handle allegations of violence and workplace harassment”. The column contained some good basic recommendations for employers on dealing with incidents of harassment or abuse against their employees: e.g. knowing the law, training front-line managers, involving unions, and using outside experts to conduct investigations and assessments. However, one of the column’s recommendations – “avoid protecting the ‘star’” – really deserves a column of its own. Because that recommendation touches on a key issue that’s often overlooked in identifying and preventing workplace harassment –  counteracting workplace cultures that implicitly support harassment and abuse.

The CBC, unfortunately, seems to be providing a very good example of how these sorts of workplace cultures can flourish. Although much of the discussion of the Ghomeshi story is around Ghomeshi’s non-work behaviour, one of the women who spoke out after his firing is a CBC employee. She alleges (more…)

Population Ecology and “Handmade With Love in France”

One of my favourite events every year, the Vancouver International Film Festival, is in its final week. This year’s festival was a good one for me – I saw seven movies, and every one of them had something to recommend it.  But the one that I enjoyed the most was a French documentary entitled Handmade with Love in France. It is a heartfelt tribute to some very talented artisans, and – although I am pretty sure the filmmaker didn’t explicitly intend this – it also illustrates the organizational theory of population ecology.

Population ecology in organizational theory is based on the biological theory of evolution; it tries to explain why (more…)

Some Thoughts on Sutton and Rao’s “Scaling Up Excellence”

I’ve written before about my general cynicism toward most business books. But one business book that I greatly admire – not only for its eye-catching title, but also for its sensible and forthright attitude – is Bob Sutton’s The No-Asshole Rule, which should be required reading for anyone involved in any aspect of hiring. Recently Bob offered “active influencers” preview copies of Scaling Up Excellence, the new book he has co-authored with his colleague Huggy Rao. When I saw the offer on Twitter, I thought, (more…)

Making a Living as an Independent Musician: An Interview with Shane Wiebe

I often talk about the music industry when I teach population ecology theory, because the music industry is an almost perfect example of that theory in action. A large group of organizations – the major record companies and retailers – used to set the norm for how things were done, and controlled the allocation of essential resources (money, talent, production and distribution channels) so as to maintain their dominant position. But those organizations felt so secure in their dominance that they chose to ignore new entrants – independent musicians and record companies – that used other resources (the Internet, online sales, new distribution formats, easy-to-use music production software) to establish themselves. And what happened? The organizational field shifted and redefined itself, and the traditional organizations couldn’t adapt quickly enough to survive – as demonstrated by such recent events as the 91-year-old British record store chain HMV struggling with massive financial debt.

I wanted to write a blog entry about how the music industry has radically evolved, even within the past few years. But rather than looking at these developments from outside, I thought it would be more interesting to hear the perspective of an artist who has experienced some of these changes first-hand. (more…)