Psychology, Pathology and the CEO - Essay Example

The organizational model provided by Miner also provides for evolution by providing for these three aspects of structural change in processes. Formalized job systems that are coordinated by management form the basis for the replication of job activities. Variation in these processes is provided for through idiosyncratic jobs created specifically around particular people. The mechanisms in place for the elimination of some processes over time are achieved in the model through managerial actions such as layoffs, budget changes, and reorganization so that some jobs are selectively retained while others are not beneficial for further evolution of the organization are eliminated.

            This study is important because it demonstrates how strategic planning or organizational change and evolution requires the establishment of clear and stable goals. As a result, to some extent formalization of internal organizational processes is necessary, and this does not necessarily deter the process of evolutionary change. Since some processes within the organization are created through the process of innovation in response to the changes in the environment, these processes must be formalized in order to ensure that useful activities are identified and preserved, so that they continue to contribute to organizational efficiency. The model proposed by the author has provided concrete mechanisms to deal with the issue of selective job retention, through the establishment of definite boundaries and providing for adaptation, while also clarifying that such adaptations are not necessarily guaranteed because they will depend upon the environment and the feasibility of carrying them out.

2. The article by R.M. Cantor (2003) deals with the changes in organizational pathology that occur when a distressed organization is turned around from failure and set on the right track. The author states that while strategic decision-making helped in the turnaround, a more important aspect was the role played by leaders in restoring the confidence their people had in themselves. By inspiring and empowering their organizational members to take new actions which could renew profitability, these leaders were able to effectively accomplish a psychological turnaround.

            Cantor(2003) illustrates how CEOs accomplished this by describing the problems that were faced by three organizations, which contributed to their declining fortunes. The first is Gillette in 2001, where the decline in market share and losses in operating margins were caused by the lack of effective coordination between the executives of different product groups. In the case of BBC in 1999, the highly competitive media environment had produced declining ratings and a loss in audience share. The various divisions within the Company also felt they were being treated unfairly in comparison with each other. The third example she cites is Invensys, a global conglomerate that almost defaulted on its financial obligations. Problems occurred due to the lack of communication and the isolation of divisions, with competition among them.

            Despite apparent differences, the author notes the common organizational pathology – lack of communication, loneliness and divisiveness, isolation, secrecy, and blame. The turnaround leaders focused upon ending the divisiveness and lack of communication among various organizational divisions, through increasing networking and communication, focusing on the common organizational goals, and bringing people together to communicate vertically, horizontally, and diagonally throughout the organization. The manner in which leaders accomplished their goals was different, depending upon the nature of the problems faced. But all the leaders achieved empowerment through communication, replacing isolation and the blame mentality with mutual respect and collaboration across divisions.