ORGANIZATION THEORY new directions for organization theory

New Directions for Organization Theory This page intentionally left blank New Directions for Organization Theory Problems and Prospects JEFFREY PFEFFER New York Oxford OXFORD UNIVERSITY PRESS 1997 Oxford University Press Oxford New York Athens Auckland Bangkok Bogota Bombay Buenos Aires Calcutta Cape Town Dar cs Salaam Delhi Florence Hong Kong Istanbul Karachi Kuala Lumpur Madras Madrid Melbourne Mexico City Nairobi Paris Singapore Taipei 'Ibkyo Toronto and associated companies in Berlin Ibadan Copyright © 1997 by Oxford University Press Published by Oxford University Press, Inc 198 Madison Avenue, New York, New York 10016 Oxford is a registered trademark of Oxford University Press All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of Oxford University Press Library of Congress Cataloging-in-Publication Data Pfeffcr, Jeffrey New directions for organization theory : problems and prospects / by Jeffrey Pfeffcr p cm includes bibliographical references and index ISBN 0-19-511434-5 Organizational sociology Organizational behavior Social control I Title HM13I.P4168 1997 3()2.V5-dc20 96-33W Printed in the United States of America on acid-free paper PREFACE I would probably have never written this book or the Handbook of Social Psychology chapter that was its progenitor had the decision been a rational one Since the last time I had attempted such an effort in the early 1980s, the field of organizational behavior had continued along the path of increasing growth, differentiation, and paradigm proliferation that made undertaking any sort of overview or review of the field an "almost impossible" effort—a phrase used repeatedly by colleagues who were kind enough to provide advice and comments on the attempt But within days of receiving the invitation to the chapter for the fourth edition of the Handbook, I learned I had almost a complete blockage of the coronary arteries feeding the left side of the heart (which meant a "coronary event" —I love the language of physicians —would be instantly fatal) and, consequently, I needed open heart surgery "What should I about this invitation?" I asked my wife and best friend, Kathleen "Say yes," she replied "That will give you something to look forward to and a feeling that you will have a future." It seemed like a good idea at the time, so did say yes, and following all of the principles of escalating commitment that we know so well, wound up writing first a long chapter and then this book The task proved to be a formidable one, and I am quite resolved not to it again Making sense of such a diverse field and deciding what to cover and what to leave out is invariably both difficult and an undertaking that can never fully please anyone except the author, and not even that person on a regular basis When I sent out the book manuscript for comments, and when I sent out a working-paper version of the chapter (completed before the book, although who knows if it will have appeared in print before the book does), I invariably got what Bob Sutton came to call the "me, me, me" response "This is a Rorschach test," said Sutton, and he was, as usual, right The modal comment I received was something along the lines of "why didn't you include more [or anything] vi Preface about my favorite topic, which is also among the most important in the field?" And, "how could you have overlooked citing some of my most important and very best papers?" which the authors of these messages were often kind enough to enclose so I wouldn't have to expend too much effort tracking them down At first I took all of this as a compliment—surely people must think this writing will be influential and important to be willing to spend effort lobbying for the inclusion of their favorite material After a while, however, I realized it reflected an egocentric view of the field that is an almost inevitable outcome of the absence of agrecd-upon paradigms and frameworks Years ago Jerry Salancik and I had shown that when there was uncertainty to resolve, social similarity came to play an important role in decision processes Given the prevalent uncertainty and absence of agreement about the content and direction of organization studies, social similarity would again be expected to play a role in people's views of the field, and no one is more similar than ourselves So, let me begin with an apology If I have failed to include your favorite work or to cite you sufficiently, it is not because I am necessarily ignorant of that part of the field or of your work, although I might be It is because to keep this effort to manageable proportions, decisions did have to be made about what to leave in and what to leave out These decisions were premised on my goal to provide an overview of the field for new entrants such as graduate students and scholars from adjacent disciplines That implied focusing on what constitutes the most basic and fundamental questions about how to understand organizations and directing attention to what are some (not all) of the topic areas that have drawn increasing research attention and controversy I make no claims for the ultimate wisdom of these choices—I did the best I could I invite readers who don't like the choices I made to supplement this material with their own I very much appreciate the helpful comments on drafts of this material provided by Pain Haunschild, Joanne Martin, Charles O'Reilly, Bob Sutton, Michael Tushman, and Karl Weick I have listened to their comments even if I have not, in every instance, followed their advice I also appreciate the comments of Marjorie Williams of Harvard Business School Press, who was kind enough to read the manuscript even though the press did not wind up publishing it The editors of the Handbook of Social Psychology, particularly Dan Gilbert, were very helpful in their guidance And, of course, thanks to Herb Addison, my editor at Oxford University Press, for his guidance and confidence in the project It has been a joy to work with Herb and the press, and I hope they feel the same way My life is made easier by my incredibly wonderful assistant, Katrina Jaggears, who did whatever I asked to help with the manuscript My existence is made joyous and wiser by my beloved, my bride, my wonderfulness, the Amazing Kathleen And, in a sense more real than I sometimes like to think about, my completing this book (and everything else since the fall of 1993) was made possible by Drs James Avery and Joel Klompus, each of whom has both exceptional technical skill and a dedicated, total quality approach to medicine All things considered, I am lucky indeed CONTENTS The Development and Seope of Organization Studies, Organizations Defined, The Evolution of Research and Writing on Organizations, The Changing Organizational Landscape, 18 Understanding the Causes of Behavior, 25 The Search for Individual Dispositions, 27 Problems with the Dispositional Perspective, 34 Person by Situation Interaction and Fit, 37 The Costs and Benefits of the Person—Situation Debate, 40 Some Lessons Learned, 41 Five Models of Behavior, 42 Economic Models of Organizational Behavior, 44 The Social Model of Behavior, 55 The Retrospectively Rational Model of Behavior, 65 The Moral Model of Behavior, 73 The Interpretive, Cognitive Model of Behavior, 77 Conclusion, 79 The Effects of Organizational Composition, 81 Organizational Demography, 82 Top Management Teams, 89 viii Contents Gender, Networks, and Careers, 93 Conclusion, 98 Mechanisms of Social Control, 100 Rewards, Incentives, Sanctions, and Surveillance, 103 Commitment and Socialization Processes, 116 Organizational Culture, 120 Leadership, 126 Conclusion, 135 Developing and Exercising Power and Influence, 136 Power and Influence, 137 Negotiation in Organizations, 150 Conclusion, 155 Organizational Performance, 156 Structural Contingency Theory, 158 Organizational Ecology, 163 Human Resource Practices and Performance, 169 Conclusion, 176 Organizations from a Critical Theory Perspective, 177 Marxist Versions of Organization Theory, 179 Other Critical Theory, 186 The Role of Critical Theory in Organization Studies, 187 New Directions for Organization Theory, 189 How Is Organization Studies Doing?, 190 Avoiding the Dangerous Liaison with Economics, 192 Avoiding Fads and Fashion by Pursuing a Strong Inference Research Strategy, 193 The Advantage of Being Phenomenon Driven, 196 The Relevance of Design — Physical and Organizational, 198 Conclusion, 202 References, 205 Index, 245 New Directions for Organization Theory 250 Index earnings (continued) race and, 106 research productivity and, 107 size distribution and, 21 skill and, 182 status and, 97 tactician style and, 148 templates and, 39 tenure and, 106, 109 tournament model and, 110 turnover and, 109, 113 unionization and, 106, 108 in United Kingdom, 23 in United States, 23 ecology control and, 168-69 defined, 163, 164 density and, 166—67 evolution and, 163-64 interdependence and, 164 liability in newness and, 165—66, 168 liability in smallness and, 165, 168 mass and, 167-68 performance and, 163 resource partitioning and, 168 selection and, 164-65 economic model agency theory and, 45-46 asset specificity and, 52 authority and, 51 characteristics of, 44-55, 65, 105 comprehensiveness and, 45 cooperation and, 50 criticism of, 47-55 data employed in, 48-49 earnings and, 106 efficiency and, 43-44, 49 effort-averseness and, 46 empirical results and, 51-52 equilibrium and, 45 externalization and, 51-52 growth of, 44 ideology of, 54-55 individualism and, 45, 49-50 mathematics and, 54 net benefit rule and, 46-47 opportunism and, 45-46 path-dependence and, 45 predictions and, 51-52 rationality and, 44 rewards and incentives and, 105, 106, 108 social model compared to, 64 status and, 54 sunk-cost rule and, 46, 47 economics characteristics of, 14 organization studies and, 6, 14, 189, 192-93 of production, 21 resource dependence theory and, 63 self-perception model and, 67 economies of scale, 21 education See also early childhood education demography and, 83—84 effectiveness of, 134 market organizations and, 101 negotiation and, 154 public trust organizations and, 101 selection and, 101 as signal, 101 skill and, 182 top management teams and, 90 turnover and, 83-84 effecrivity, 169-70 efficiency authority and, 51 control and, 180-81 economic model and, 43-44, 49 employment relationship and, 179 Marxism and, 179-80 power and influence and, 142-43 seniority-based wage systems and, 49 cffort-avcrscness, defined, 46 elite See status emotions, 149-50 See also Big Five employees See human resources employment contracts, 18 employment relationship efficiency and, 179 cxternalization of, 18 politics and, 53 engineering design and, 201-2 growth of, 10 industrial psychology and, 11-12 Index industrial sociology and, 11—12 organization studies and, 6, 9-11, 13 standardization in, 9-10 entrapment activities, 69 entrepreneurship See self-employment environment See design equilibrium, economic model and, 45 Europe See also France; Germany; Sweden; United Kingdom business schools in, 13 organization studies in, evolution, ecology and, 163-64 exchange, power and influence and, 147, 148 experience See Big Five; tenure expert power, defined, 141 See also power and influence explicitness, 116 expressive orientation, defined, 37-38 external constraints commitment and, 68 defined, 68 job satisfaction and, 68 leadership and, 127 externalization See also internalization defined, 19 design and, 200-201 economic model and, 51-52 gender and, 20 growth of, 18-20, 21-22 in Japan, 21 minorities and, 20 size distribution and, 21 social consequences of, 20 in United Kingdom, 20 in United States, 19-20 extraversion, defined, 34 See also Big Five fads, fashion, and trends, 16, 193-96 family life, 187 feedback loops, 87 feminist organization theory, defined, 186 See also critical theory (CT); gender field of vision, defined, 89 finance, 23 financial services, defined, 21 firing, 115-16 See also downsizing force activation model, of power and influence, 138, 139 251 formality and formalization of organizations, size distribution and, 21 Fortune 500 companies, 21 founding and mortality age dependence and, 165, 166 competition and, 166, 168 criticism of and support for, 163 density and, 166-67, 168 of high-commitment work system, 174 legitimacy and, 166, 168 framing, 151-52 France, earnings in, 23 See also Europe free riding, defined, 75 fringe benefits, 21 See also rewards and incentives full-time employees See human resources functionalist paradigm defined, 17 management and, 177 fundamental attribution error leadership and, 129-30 normative order and, 26-27 game theoretic approach, defined, 151 GCA See intelligence Gemeinschaft, defined, 103 gender adverse impact on, 25-26 competition and, 94-95, 97 co-worker contact and, 94-95 demography and, 82-83, 85, 87-88, 9394' earnings and, 88-89, 96, 106, 186-87 externalization and, 20 Griggs v Duke Power and, 25-26 heterogeneity and, 85 job satisfaction and, 95 management and, 97 mobility and, 94-95 networks and, 96-97 power and influence and, 148 public-private dichotomy and, 187 role models and, 97 same-gender co-workers and, 96, 97 selection criteria and, 25—26 self-employment and, 20 status and, 96-97 structure and, 82 252 Index gender (continued) tactician style and, 148 top management teams and, 92 gender composition, 93-94 gender representation, 93-94 general cognitive ability (GCA) See intelligence generic composition theories, defined, 95 genetics and heredity design and, 31 dispositions and, 31 intelligence and, 31, 33 job satisfaction and, 31 Germany, earnings in, 23 See also Kurope Gesellschaft, defined, 103 goals See also rewards and incentives of organizations, 7—8, performance and, 111 golden parachutes, defined, 146 good cop, bad cop, 150 governmental entities, organizations and, 8-9 grievances, 171 Criggs v Duke Power, 25—26 groups See teamwork growth need strength, 37 happiness, 31-32 harassment, 94 See also gender; minorities; race hazing, 119 See also socialization heredity See genetics and heredity heterogeneity See also homosocial reproduction absenteeism and, 85 age dependence and, 166 commitment and, 85 demography and, 83-84 gender and, 85 interpersonal processes and, 82, 84 minorities and, 85, 97-98 race and, 85 tenure and, 84-85 top management teams and, 85, 90, 92 turnover and, 84-85, 90 upper-echelons theory of management and, 92 hierarchy control and, defined, 47 earnings and, 106 purposes of, 47 shrinking of, 136 social control and, 136 transaction cost economics and, 47 high-commitment work system belief systems and, 175 causality and, 171 characteristics of, 172, 173 diffusion of, 172-76, 180, 182-83 founding and mortality of, 174 in Japan, 174 management and, 175-76 market failure and, 174—75 performance and, 172 productivity and, 171, 172 stress and, 183 in Sweden, 174 tenure and, 175 in United Kingdom, 174 in United States, 172-74 home life, 187 homogeneity See heterogeneity homosocial reproduction, 99 See also heterogeneity hoteling, 200-201 human capital defined, 96, 97 social capital compared to, 98 "women's work" and, 96 human capital endowments, defined, 184 human resources leadership and, 148 management and, 170-71 performance and, 169-76 policies for, 169-72 power and influence of, 183—84 size distribution and, 21 identity, 153 imitation See also interaction institutional theory and, 63 performance and, 156 prevalence and, 63 social model and, 56-58 structure and, 53 inaugural addresses, 34—35 incentives See rewards and incentives individual differences affect and, 28-29 Index behavior and, 27-33 defined, 27 job satisfaction and, 29 relative variance and, 28—29 response-shift bias and, 29-30 individualism characteristics of, 39 economic model and, 45, 49-50 individualistic culture, 39 See also culture individual-level processes, defined, 84 inducements-contributions balance, industrial engineering, 11 See also engineering industrial physiology, 11-12 industrial psychology, 11-12 See also psychology industrial sociology, 11-12 See also sociology inertia causes of, 164 defined, 163 ecology and, 163, 164 information actionability of, 162-63 behavior and, 111 defined, 111 rewards and incentives and, 111 informational social influence culture and, 126 defined, 132 leadership and, 132 ingratiator style defined, 148 power and influence and, 147, 148 inner circle, 185-86 See also management innovation and change demography and, 85-87 organization studies and, 202-3 tenure and, 85-86 top management teams and, 90, 92 institutional composition theories, 95-96 institutionalization, defined, 76 institutional theory See also social model conformity and, 63 defined, 63, 64 imitation and, 63 interests and, 64 instrumental orientation, defined, 37—38 instrumental view See goals insufficient justification See commitment 253 intelligence genetics and heredity and, 31, 33 job performance and, 33 job success and, 31 stability of, 33 interaction See also imitation additive, 37 barriers and, 199-200 behavior and, 55-56 descriptive, 37 distance and, 199 social model and, 55-56 interactional psychology, defined, 37 See also psychology interactionist perspective, defined, 40 interdependence, 164 interdependent interaction, defined, 37 interests, institutional theory and, 64 interfirm coordination See coordination interfirm ties See networks interlocks, 184-85 intermediaries, defined, 61 internalization See also externalization personnel departments and, 52-53 size distribution and, 21 unionization and, 52, 53 interpersonal processes heterogeneity and, 84 negotiation and, 5-6 power and influence and, similarity and, 82 top management teams and, 90-91, 93 interpretive cognitive model See cognitive model interpretive paradigm, defined, 17 intervening model, 91 interventions, 30 intrinsic decision factors, defined, 68 isolation, 114-15 Japan CEOs in, 23 earnings in, 23 externalization in, 21 high-commitment work system in, 174 keiretsu in, 50-51, 60 manufacturing organizations in, 21 networks in, 21, 60 rewards and incentives in, 23 size distribution and, 21 254 Index Japan (continued) takeovers in, 22 top management teams in, 85 turnover in, 85 job attitudes consistency of, 30 twins and, 31 job choice commitment and, 67—68 job satisfaction and, 28-29, 67-68 job complexity, 21 job design, 25 job interests, 31 job performance, 33 job satisfaction affect and, 32 co-worker contact and, 95 cross-time consistency in, 30 earnings and, 109, 113 external constraints and, 68 gender and, 95 genetics and heredity and, 31 individual differences and, 29 interventions and, 30 intrinsic decision factors and, 68 job attitudes and, 28-29 job choice and, 67—68 ratings of, 30 response-shift bias and, 29-30 rewards and incentives and, 112 situationalist perspective and, 29 stability of, 30-31 surveillance and, 114—15 turnover and, 38 job security, 20 See also downsizing job success, 31 justification See commitment keiretsu cooperation and, 50—51 defined, 50 resource flow and, 60 risk allocation and, 60 knowledge See information labor markets See exlernalization; internalization language, symbols, and rituals culture and, 125-26 leadership and, 132—33 power and influence and, 148-49 lawsuits, layoffs See turnover leadership See also management consideration and, 127-28 control and, 126-34 co-optation and, 148 defined, 126 developing, learning, and teaching of, 132, 133-34 effects of, 127-30 external constraints and, 127 fundamental attribution error and, 12930 human resources and, 148 informational social influence and, 132 language, symbols, and rituals and, 13233 performance and, 127-29 purposes of, 131-33 romance of, 130 selection and, 127 socialization and, 127 traits of, 14-15,27-28 types of, 131 learning perspective, 25 legal environment, 25 legitimacy founding and mortality and, 166, 168 networks and, 58 status and, 58-59 length of service See tenure levels of analysis, liability in newness, ecology and, 165-66, 168 liability in smallness, ecology and, 165, 168 See also size of organizations linkages See networks locus of causality See causality macro level, defined, 84-85 management See also boards of directors; CEOs; leadership; top management teams autonomy of, 21-23, 37 bankruptcy and, 59 class and, 185-86 competition and, 179 control and, 6, 22, 115, 183-84 criticism of 177-78 dispositions of, 35, 37 earnings and, 104, 106 Index field of vision of, 89 functionalist theory and, 177 gender and, 97 growth and, 22 high-commitment work system and, 175-76 human resources and, 170-71 ideologies of, 102-3 interpretations of, 89 Marxism and, 183-84 pension funds and, 22 performance and, piece rates and, 107 productivity and, 170-71 profit sharing and, 107 publicly traded companies and, 21-22 quantitative and verbal ability and, 33 rewards and incentives and, 22 selective perception of, 89 status and, 58-59 structure of, 185 turnover and, 170-71 management teams See top management teams manufacturing organizations, 21 See also organizations March, James, 12-13 market dominance, limits on, 61, 62 market failure, 174-75 market forces See externalization; internalization market organizations, 101 See also organizations Marx, Karl, 12 Marxism alienation and, 182—83 class and, 184-86 control and, 179-83 critical theory (CT) and, 178, 17986 criticism of, 183-84 deskillmg and, 181-82 determinism of, 84 efficiency and, 179-80 management and, 183—84 purposes of, 179 solidarity and, 184 mass, 167-68 mathematics economic model and, 54 industrial engineering and, 11 255 matrix management, 57-58 MBA See business schools mental ability See intelligence mental budget model, defined, 72 mergers networks and, 59 resource dependence theory and, 59 tenure arid, 88 merit pay See variable pay M-form hypothesis, 59-60 minorities See also gender; race; women adverse impact on, 25-26 demography and, 85, 88, 94 earnings of, 88 externalization and, 20 Griggs v Duke Power and, 25-26 heterogeneity and, 85, 97-98 networks and, 97-98 selection criteria and, 25-26 on top management teams, 92 mobility co-worker contact and, 94-95 demography and, 86 earnings and, 108 gender and, 94-95 size distribution and, 21 status and, 97 structural holes and, 97 structure and, 82 tenure and, 88 models See also cognitive model; economic model; mental budget model; moral model; process model; retrospectively rational model; selfjustification model; self-perception model; social model; tournament model of behavior, 42-80 evaluation of, 43 quasi-experiments and, 36 modular production, 174 monitoring See surveillance tnonozygotic twins, 31 See also twins moods affect and, 33 defined, 33 dispositions and, 36 moral model assumptions of, 73—74 of behavior, 73-77 free riding and, 75 256 Index motivation growth need strength and, 37 negotiation and, 153 rewards and incentives and, 111 multiclivisional structures, 59-60 natural selection criticism of, 43 defined, 43 performance and, 156 rationality and, 44 timing and, 44—45 negative affect See affect negotiation affect and, 153 anchoring-and-adjustment and, 152 constituent accountability and, 152—53 decision making and, 151-52, 153-54 education and, 154 experience and, 154 framing and, 151-52 interpersonal processes and, 5-6 motivation and, 153 power and influence and, 150-55 social identity and, 153 social model and, 153 tenure and, 154 ubiquity of, 150 net benefit rule, defined, 46-47 networks See also social model concepts of, 60-62 constraint and, 61 earnings and, 97 effects of, 58-60 gender and, 96-97 in Japan, 60 legitimacy and, 58 measurement of, 64 mergers and, 59 minorities and, 96—98 performance and, 58-60 resource dependence theory and, 62 resource flow and, 58 social model and, 56-58, 60 status and, 61-62 strong versus weak tics and, 60 structural holes in, 97 structure and, 82 Structure (computer program) and, 60 of suppliers, 21 neutral interlocks, defined, 64 See also networks new economics of personnel, defined, 106-7 "new employment contract," 18 newness, liability in, 165-66, 168 nonwhites See minorities; race normative control See also control growth of, 103 social psychology and, 102 normative order See also culture behavior and, 26—27 causality and, 26-27 fundamental attribution error and, 2627 influences on, 76 iiistitutioiialization and, 76 personal values and 39 selection and, 101 Occam's Razor, defined, 43 OCP, 121-22 off-site employment See externali/ation operant conditioning behavior and, 25 defined, 105 rewards and incentives and, 105 opportunism defined, 45, 46, 47 economic model and, 45-46 self-interest compared to, 45 transaction cost economics and, 46, 47 opportunities, defined, 82 organizational behavior, 32-33 organizational culture See culture Organizational Culture Profile (OCP), 121-22 See also culture organizational demography See demography organizational ecology See ecology organizational mortality See founding and mortality organizational performance See performance organizational psychology, 11 See also psychology organizational selection, 36 organizational sociology, 12 See also sociology organizational structure See structure Index organizational tenure See tenure organizations See also market organizations; permanently failing organizations; public trust organizations ambiguity and uncertainty and, 51 authority and, 51 boundaries of, control and, 100 cooperation and, 50-51 criticism of, 4, defined, 7-9, 77 demography and, 5, 82-89 existence of, 3-4, 7-8, 9, 47, 50-51 externalization and, 18, 19 formality of, goals of, 7-8, governmental entities and, 8-9 growth of, 88 history of, 3-4 importance of, inducements-contributions balance and, inequalities in, 18 interpersonal processes and, lawsuits and, organization of, selection and, 36 self-perpetuation of, 7-8, self-selection and, 36 size of, 3, 18, 20-21, 109, 161, 167 social composition and structure of, 4, 5, 81-99 taxes and, as units, 56-57 organization studies adjacent disciplines and, 14, 18 behavior and, 13-14 breadth and scope of, 4-5 in business schools, 9, 11, 13, 14-17, 18, 189-90 change and, 202-3 comparative approach to, 24 control and, criticism of, 13, 189, 191-92, 198 design and, 190, 198-202 diffusion of, 4-5, 190-91 diversity of, 189 Durkhcim and, 12 economics and, 6, 14, 189, 192-93 empirical focus of, 257 engineering and, 6, 9-11, 13 in FAirope, evolution and location of, 6, 9-18, 189 fads, fashion, and trends and, 16, 19396 goals of, 6, 156 history of, 4, industrial engineering and psychology and, 11 interdisciplinary nature of, leadership and, 14-15 levels of analysis of, locus of causality and, March and, 12-13 Marx and, 12 micro level of analysis and, organizational sociology and, 12 paradigms of, 17 perspectives on action of, phenomenon-driven nature of, 196-98 political science and, 9, 12-13 practical concerns and, 14—16 process and, 202-3 psychology and, 9, 11 public administration and, public policy and, 24 purposes of, Simon and, 12-13 sociology and, 9, 12, 13 theory and, 196-98 United States' influence on, 13 Weber and, 12 outside contractors See externalization over-time correlation measurement, 30 ownership power, defined, 141 See also power and influence pace of work, 183 parsimony, 43—44 participative method See high-commitment work system part-time employment See externalization path-dependence, defined, 45 pathology, 117-18 pay See earnings pension funds, 22 People's Republic of China, behavior in, 26-27 performance analysis of, 258 Index performance (continued) appraisal of, 71 collective bargaining and, 108 control and, 179 culture and, 122 demography and, 90-91 design and, 199-200 earnings and, 105, 106, 107-8, 113 ecology and, 163 cffcctivity and, 169-70 goals and, 111 high-commitment work system and, 172 human resources and, 169-76 imitation and, 156 leadership and, 127-29 management and, 6, 109, 114 measurement of, 157-58 natural selection and, 156 networks and, 58-60, 156-57 regression and, 157-58 surveillance and, 114—15 survival and, 57 variable pay and, 113 permanently failing organizations, defined, 157 See also organizations perquisites See rewards and incentives perseverance See commitment persistence See commitment personal characteristics, power and influence and, 144, 145 personal contacts, 56 personality See dispositions personal values, 39 See also normative order personnel departments, 52-53 person-situation fit advantages and disadvantages of, 40-41 public policy and, 41 Q-sort methodology arid, 38 social policy and, 41 turnover and, 39 perspectives on action, physiology, 11-12 piece rates See also earnings management and, 107 new economics of personnel and, 107 Taylor and, 10 tenure and, 107 poison pills, 57 political context, 25 political science organization studies and, 9, 12-13 public administration and, 13 rational actor theory and, 13 political theory, defined, 15 politics See also unionization demography and, 88 employment relationship and, 53 selection and, 165 self-interest and, 74-75 status and, 185 top management teams and, 93 variable pay and, 109 positive affect See affect Post, defined, 30 See also job satisfaction power and influence ambiguity and uncertainty and, 14345 ambivalence about, 137 assertiveness and, 147-48 authority and, 138, 146 eentrality and, 145 chance and, 138-39 critical theory (CT) and, 187-88 criticism of, 137, 155 defined, 138-40 delay and waiting and, 147 development and exercise of, 5-6, 3655 distribution of, 145-46 earnings and, 106 effects of, 141 efficiency and, 142-43 elements of, 138 emotion and, 149-50 exchange and, 147, 148 force activation model of, 138, 139 gender and, 148 human resources and, 183—84 importance of, 136 indicators of, 106 ingrariation and, 147, 148 interpersonal processes and, language and, 148-49 measurement of, 138—42 negotiation and, 150—55 personal characteristics and, 144, 145 rationality and, 147 reciprocity and, 146 reputation and, 140-41 Index resistance and, 138 resources and resource allocation and, 142, 143-44, 145, 148 self-perpetuation of, 145—46 social control compared to, 138 social model and, 82 sources of, 137, 144-46 strategics and tactics of, 146-50 structure and, 144-45 styles of, 148 use of, 142-50 Pre, defined, 30 See also job satisfaction predictions, 51-52 preferences, 44 presidential personality, 34-35 See also dispositions prestige See status prestige power, defined, 141 See also power and influence prevalence, defined, 63 principals, defined, 46 See also agency theory process, 202-3 process model, 91 productivity See also research productivity grievances and, 171 high-commitment work system and, 171, 172 management and, 170-71 worker participation and, 170 professionalization, defined, 141 profit sharing, 107 See also earnings promotions See mobility; rewards and incentives prospect theory, defined, 151 proxies, 101 psychological dynamics, 118 See also psychology psychology See also interactional psychology; psychological dynamics; social psychology industrial psychology and, 12 organization studies arid, 9, 11, 13 public administration, publicly traded companies, 21-22 publicness, 116 public policy organization studies and, 24 person-situation fit and, 41 public-private dichotomy, 187 259 public trust organizations, defined, 101 See also organizations Q-sort methodology Organizational Culture Profile (OCP) and, 121-22 person-situation fit and, 38 quantitative ability, 33 See also intelligence quasi-experiments, 36 race See also minorities demography and, 85 discrimination and, 107 earnings and, 106 heterogeneity and, 85 radical humanist paradigm, defined, 17 radical structuralist paradigm, defined, 17 rank-ordering, 30-31 rational actor theory, 13 rational choice theories, 48 rational control, 103 See also control rationality of behavior, 44 defined, 44 economic model and, 44 natural selection and, 44 power and influence and, 147 retrospectively rational model, of, 71— 73 timing and, 44—45 reactance theory, defined, 124-25 realism, 43-44 received interlocks, defined, 64 See also networks reciprocal action-transaction interaction, defined, 37 reciprocity, 146 recruiting See also control commitment and, 116-18 purposes of, 101 signals and, 101 regression, 157-58 relative variance, 28-29 relativism, 77-78 reputation, 140-41 research productivity, 107 See also performance; productivity resistance, 38 260 Index resource allocation M-form hypothesis and, 159 power and influence and, 142, 143-44, 148 resource dependence theory See also social model defined, 19, 59, 62-63 economics and, 63 mergers and, 59 networks and, 62 resourceflow keiretsu and, 60 networks and, 58 resource partitioning, defined, 168 resources, 145 response-shift bias, 29—30 results, 73 retrospectively rational model See also self-justification model of behavior, 65-73 cognitive model and, 77 commitment and, 68-69, 70, 71-73, 116 defined, 65-66, 116 rationality of, 71-73 sunk costs and, 70 types of, 66 rewards and incentives See also autonomy; goals; mobility ambiguity and uncertainty and, 132 commitment and, 116 control and, 102 cooperation and, 108-9 creativity and, 111 culture and, 126 defined, 111 dispersal of, 23 economic model and, 105, 106, 108 effects of, 111-14 information and, 111 issues regarding, 103—4 in Japan, 23 job satisfaction and, 112 management and, 22, 114 motivation and, 111 operant conditioning and, 105 self-perception model and, 66-67 size distribution arid, 21 social control and, 135 stress and, 132 surveillance and, 124 for teamwork, 111-12 transactional and transformational leadership and, 132 in United States, 23, 104—5 variation in, 105 risk agents and, 46 allocation of, 60 principals and, 46 rituals See language, symbols, and rituals ritual scapcgoating, 115-16 role entrapment, defined, 83 role models, 97 romance, of leadership, 130 salaries See earnings sanctions See also control surveillance and, 124 types of, 115 satisfaction See job satisfaction scapcgoating, 115-16 scarcity See resource allocation scientific fields, evolution of, 17-18 scientific management, 10 scrap rate, defined, 171 scrutiny See also surveillance demography and, 88 token status and, 83 selection See also self-selection conformity and, 101 control and, 101 criteria for, 25-26 ecology and, 164-65 education and, 101 leadership and, 127 normative order and, 101 politics and, 165 purposes of, 101 selective perception, 89 self-employment gender and, 20 growth of, 20 intermediaries and, 61 self-interest characteristics of, 45 control and, 103 opportunism compared to, 45 politics and, 74-75 Index symbolic predispositions and, 74-75 self-justification model See also retrospectively rational model commitment and, 67 economies and, 70 self-interest model and, 74 self-perception model See also retrospectively rational model cognitive dissonance and, 66 commitment and, 66, 116 criticism of, 67 economics and, 67 incentives and, 66-67 premises of, 66 surveillance and, 70 self-selection, 36 See also selection senior corporate executives, 23 See also management seniority See tenure seniority-based wage systems, 49 See also earnings sent interlocks, defined, 64 See also networks "servants of power," 177-78 service organizations, 21 See also organizations sex See gender sexual harassment, 94 See also gender shotgun style, defined, 148 See also power and influence signals, defined, 101 similarity See heterogeneity Simon, Herbert, 12-13 situational effects, 30-31 situationalist perspective of behavior, 25 defined, 25 job satisfaction and, 29 legal and political environment and, 25 relative variance and, 28-29 situations See design size distribution, 21 size of organizations See also liability in smallness competition and, 167 differentiation and, 161 resource partitioning and, 168 variation and, 161 skill, 182 See also deskilling 261 smallness, liability in, 165, 168 See also size of organizations social behavior, defined, 79 See also behavior social capital, defined, 56, 98 social class, 184-86 social cognition See cognitive model social composition effects of, 81 of organizations, 81-99 structure and, 81 social contagion, 60-61 social control See control social identity, 153 social influences, 5-6 social integration, 84-85 socialization commitment and, 118 defined, 118 effects of, 120 goals of, 118-19 leadership and, 127 process of, 118-20 tactics of, 120 social model See also institutional theory; resource dependence theory of behavior, 55-65 characteristics of, 176 cognitive model and, 77 criticism of, 64-65 defined, 55 demography and, 98-99 economic model compared to, 64 imitation and, 56-58 interaction and, 55-56 matrix management and, 57—58 negotiation and, 153 networks and, 56-58, 60 opportunities and, 82 organizations as units and, 56-57 personal contacts and, 56 poison pills and, 57 power and influence and, 82 structure and, 81 turnover and, 56 social policy, 41 social psychology See also psychology characteristics of, 12 normative control and, 102 262 Index social sciences, 48 social structure, social thought, defined, 79 sociology See also industrial sociology Diirkheim and, 12 Marx and, 12 organization studies and, 9, 12, 13 Weber and, 12 solidarity class and, 184 Marxism and, 184 status and, 185 specificity, 52 speed, 183 standardization, 9-10 states, dispositions and, 36 status bankruptcy and, 59 characteristics of, 59 debt undcrwritings and, 62 defined, 61 earnings and, 97 economic model and, 54 gender and, 96-97 interlocks and, 185 legitimacy and, 58-59 management and, 58-59 mobility and, 97 networks and, 61—62 politics of, 185 production of, 61-62 solidarity and, 185 stability of, 62 strategy, 161 stress high-commitment work system and, 183 pace of work and, 183 rewards and incentives and, 132 shotgun style and, 148 sources of, 83 surveillance and, 114-15 token status and, 82-83 structural analysis, structural contingency theory criticism of and support for, 158-59, 161-62, 163, 176 defined, 158 determinism of, 179 types of, 159, 161 structural equivalence, 60-61 structural holes defined, 61 mobility and, 97 in networks, 97 weak ties and, 61 structural power, defined, 141 See also power and influence structure behavior and, 81 defined, 53, 81 demography and, 82 gender and, 82 imitation and, 53 mobility and, 82 networks and, 82 opportunities and, 82 power and influence and, 144-45 social composition and, 81 social model and, 81 strategy and, 161 technology and, 161 top management teams and, 82 Structure (computer program), 60 subjective well-being, defined, 36-37 subordinates See human resources substantive complexity, defined, 182 succession See mobility sunk costs commitment and, 70-71 defined, 46, 70 economic model and, 46, 47 retrospectively rational model and, 70 supervision See surveillance suppliers, networks of, 21 surveillance See also control; scrutiny administration of, 1 of behavior, 114—16 commitment and, 116 entrapment activities and, 69 growth of, 181 intrinsic decision factors and, 69 isolation and, 114-15 job satisfaction and, 114-15 performance and, 114—15 rewards and incentives and, 124 sanctions and, 124 self-perception model and, 70 stress and, 114-15 survival, 157 Index Sweden See also Europe high-commitment work system in, 174 size distribution and, 21 symbolic predispositions, defined, 74-75 symbols See language, symbols, and rituals tactician style, defined, 148 See also power and influence takeovers, 22 See also corporate control talk See language, symbols, and rituals taxes, Taylor, Frederick W importance of, 10-11 industrial psychology and, 11-12 industrial sociology and, 11-12 piece-rate system and, 10 scientific management and, 10 work processes and, 183 teamwork See also top management teams design and, 200 rewards and incentives for, 111-12 technology, structure and, 161 templates defined, 38 dispositions and, 39 earnings and, 39 temporary employment See externalization tension See stress tenure See also Big Five acquisitions and, 88 demography and, 83-84, 88 dissolutions and, 88 earnings and, 106, 109 heterogeneity and, 84-85 high-commitment work system and, 175 innovation and change and, 85-86 mergers and, 88 mobility and, 88 negotiation and, 154 piece rates and, 107 top management teams and, 89-90 turnover and, 83—85 tests, Griggs v Duke Power and, 25-26 Then, defined, 30 See also job satisfaction theories, purposes of, 43 threats, 70 token status, 82—83 See also gender; minorities; race top management teams See also management 263 characteristics of, 89-90 decision making and, 90 demography and, 85, 89-93 education and, 90 gender and, 92 heterogeneity and, 85, 90, 92 innovation and change and, 90, 92 interpersonal processes and, 90-91, 93 in Japan, 85 minorities on, 92 politics and, 93 structure and, 82 tenure and, 89-90 turnover and, 90 in United States, 85 upper-echelons theory of management and, 91-92 tournament model, defined, 110 See also models training See education traits See also dispositions; individual differences transactional leadership See also leadership defined, 131 rewards and incentives and, 132 transaction cost economics See also economic model ambiguity and uncertainty and, 51 elements of, 47 hierarchy and, 47 opportunism and, 47 transaction cost theory, 46 transformation, defined, 39 transformational leadership See also leadership causes of, 131 defined, 15, 131 effects of, 131-32 rewards and incentives and, 132 trends, in organization studies, 16, 193-96 turnover age and, 83 demography and, 84-85 earnings and, 109, 113 education and, 83—84 heterogeneity and, 84-85, 90 in Japan, 85 job satisfaction and, 38 management and, 170-71 264 Index turnover (continued) person-situation fit and, 39 social integration and, 84—85 social model and, 56 tenure and, 83-85 top management teams and, 90 twins heredity versus environment and, 31 job attitudes of, 31 job interests and, 31 studies of, 31, 36 U-form hypothesis, defined, 159 uncertainty See ambiguity and uncertain}' underwritings, defined, 62 unionization See also polities earnings and, 106, 108 intcrnali/ation and, 52, 53 size distribution and, 21 variable pay and, 108 United Kingdom See also F.uropc CEOs in, 23 earnings in, 23 externalization in, 20 high-commitment work system in, ] 74 variable pay in, 105 United States behavior in, 26-27 business schools in, 13 CEOs in, 23 control in, 22 earnings in, 23 externalization in, 19—20 high-commitment work system in, 17274 organization studies and, 13 rewards and incentives in, 23, 104-5 size distribution and, 21 takeovers in, 22 top management teams in, 85 variable pay in, 104—5 unrealistic models, 43-44 upper-echelons theory of management characteristics of, 89 heterogeneity and, 92 top management teams and, 91-92 validation, 25—26 values See normative order variable pay See also earnings criticism of, 113—14 defined, 104 growth of, 104-5 implementation of, 110 performance and, 113 polities and, 109 unionization and, 108 in United Kingdom, 105 in United States, 104-5 variation, 161 verbal ability, 33 See also intelligence vision, field of, 89 volition, 116 wages See earnings waiting and delay, 147 weak interlocks, defined, 64 See also networks weak ties, 61 Weber, Max, 12 whites See race women See gender "women's work," classification and devaluation of, 96, 187 See also gender worker participation, defined, 170 work processes, 183 .. .New Directions for Organization Theory This page intentionally left blank New Directions for Organization Theory Problems and Prospects JEFFREY PFEFFER New York Oxford OXFORD UNIVERSITY... Marxist Versions of Organization Theory, 179 Other Critical Theory, 186 The Role of Critical Theory in Organization Studies, 187 New Directions for Organization Theory, 189 How Is Organization Studies... Jeffrey New directions for organization theory : problems and prospects / by Jeffrey Pfeffcr p cm includes bibliographical references and index ISBN 0-19-511434-5 Organizational sociology Organizational