Organisational AnalysisOrganisations as Systems of Objectivity.docx

Organisational Analysis
Organisations as Systems of Objectivity and Rationality
‹#›
Aims
How are Organisations seen as Systems of Objectivity and
Rationality?
Examine the following aspects of organisations:
Functionality
Data, Information and Knowledge
Organisations through prescriptive frameworks
RMIT University©2011
School/Department/Area
2
‹#›
Why Analyse Organisations?
3
To discover the objective truths that define and govern
organisations. Analyse objective truths (facts) as objective and
accurate accounts of organisational properties (e.g. causal

powers and laws) and the events within which management must
act.
Truths possess instrumental value (practical utility).
Avoid being distracted by speculation, hunches and lies.
By knowing the truth, organisations intelligently formulate and
accomplish organisational goals.
The instrumental and objective value of truths for management
is in assisting them to establish control over an organisation,
predict outcomes and learn about one’s powers and
vulnerabilities
‹#›
Organisations are Complex
Organisations by nature, are complex entities
Irrespective of size:
Larger firms may have more infrastructure as resources
Small organisations can be highly innovative
4
Image source: Google Images leaders.cesma.it;
gnp.advancedmanagement.net
‹#›
Organisations Need Systems of Control

5
‹#›
6
‹#›
Enterprise Analytics – Support of Rationality
7
Enterprise analytics means business and process analytical
capabilities across an enterprise.
provides organisations with the ability to collect, analyse and
process analytical data in all or most functions of the business.
‹#›
Organisations as Complex Systems
A complex system is seen as being made up of specialised parts

called subsystems that work together to achieve a common goal.
8
How do you manage complexity?
‹#›
Managing Organisational Complexity
How do you eat an elephant?
Systems engineering
one bite at a time
the “divide and conquer” principle
9
‹#›
Organisations as Systems
A system is constructed of mutually and organically interrelated
specialised parts called subsystems.
The goal is to understand the ‘laws’ governing organisational
systems and how each subsystem performs a particular activity
and ‘functions’ to help enact the larger system
An organisation is seen as a system comprised of four sub-
systems (technology, social structure, culture and physical
structure) located within a supersystem (i.e. global
environment) of which it is a part

10
Even human systems are identified - concerned with social
integration (i.e., what binds individuals and groups together?)
Emile Durkheim’s Structural Functionalism
‹#›
Conceptualisation of Organisations
The conceptualisation of “human systems”
The concept of a “human system” is abstract, nebulous, fluid,
elastic
Human systems tend to be conceptualised as being tangible,
objective, instrumental - capable of being represented and
quantified
11
In your tutorials, explore the meaning of “conceptualisation”.
What does it mean when an abstract concept is given technical
rationality?
‹#›
Analysis underpinned by Rationality
organisations

Analyse ‘Truths’ as objective and accurate accounts of
organisational properties (e.g. causal powers and laws) and the
events within which management must act
Through ‘truth’ organisations avoid being distracted by
speculation, hunches and lies
‘Truths’ possess instrumental value (practical utility)
By knowing the ‘truth’ organisations intelligently formulate and
12
‹#›
Organisations as Frameworks
Organisations as defined through Enterprise Architecture
Business Architecture
Information Architecture
Technology Architecture
Solution
Architecture
13
Enterprise architecture to deliver business insights and
drive change.

Scheer, A.W. and Kruse, C., 1994, ARIS-Framework and
Toolset: A Comprehensive Business Process Re-engineering
Methodology, Proceedings of the 3rd International Conference
on Automation, Robotics and Computer Vision (ICARCV ‘94),
Singapore, Vol. 1, pp. 327-337.
‹#›
Who is an Enterprise Architect?
The role that an EA plays is multi-faceted.
EA will large-scale program oversight
Programs comprise a multiple number of related projects,
represented as a “package”
Managing programs generally requires a person that is able to
handle multiple aspects of a project at one time.
14
‹#›

Systems Engineering Principles
Encapsulation (layers)
Functionality
Data
Software
Engineering
Technology
Complexity Isolation
Protection of layers
Open System
Extensible (Functionality)
Scalable (Volumetrics)
Slide 15
Frameworks, Architectures
Functionality
Data
Software
Technology
Engineering

‹#›
The objectivist path.
Systems engineering influenced – information technology and
manufacturing systems.
Complex systems are defined in terms of viewpoints – in this
case, a framework or architecture is typically divided into:
Functionality, data, software, engineering and technology
specifications.
15
Systems Principles
Isolation of functionality and technology
Not desirable for fast paced technological changes to drive
business functionality
Not desirable for businesses to be constrained by technology
choices
Slide 16
Fast paced technological changes
Impact

Functionality
Data
Software
Technology
Engineering
‹#›
It is very characteristic of systems engineering approaches to
segment a complex system into these viewpoints.
These viewpoints are specialised, but also integrated. For
example, functionality drives data, which in turn, drives
software and technology.
The characteristic of these viewpoints, is that it “protects” the
organisation from fast changes, e.g. should technological
change drive functional change?
In some organisations, such as technology based companies, yes
In some organisations, we do desire a stability, e.g. retail where
once purchased an electronic till system is expected to be stable
for a few years before renewal
16

Management Frameworks
Frameworks provides the structure that organises or integrates
the different functional views
Examples are:
ARIS
Zachman Architecture
And other frameworks
17
‹#›
Architecture of Information Systems
‹#›
Zachman Architecture

‹#›
References
Ashworth, C. M. 1988, Structured systems analysis and design
method (SSADM). Information and Software Technology, 30(3),
153-163.
Jeffrey A. Hoffer, Joey George, Joseph S. Valacich, 2013,
Modern Systems Analysis and Design (7th Edition)
Zhaohao Sun, Lizhe Sun, Kenneth Strang. 2016, Big Data
Analytics Services for Enhancing Business Intelligence. Journal
of Computer Information Systems, 1-8.
W. Scheer, ARIS: Business Process Modelling, Springer-Verlag,
Berlin, Germany, 2000
Zachman, J.A. 1987. A framework for information systems
architecture. IBM Systems Journal, 26(3): 176–292.
Williams, T.J. 1994. The Purdue enterprise reference
architecture. Computers in Industry, 24(2–3): 141–158.
Giaglis, MG, 2001, A Taxonomy of Business Process Modeling

and Information Systems Modeling Techniques, International
Journal of Flexible Manufacturing Systems, Volume 13, Issue 2,
pp 209–228
20
‹#›
Organisations as Systems of Rationality
Tutorial Guide
‹#›
Business Analysts

Managers need to communicate to a variety of people, clients,
stakeholders, engineers, HR……..
Is learning to understand different perspectives crucial?
Would you put this in your own CV?
How would you prove you are a good business analyst?
‹#›
Critical Discussion of Readings
Have you read the paper - “The Four Paradigms of Information
Systems Development”
What is described?
Which are the four ……?
What are the roles described?
How would these map to the rationales described in the lecture?
‹#›
Systems Analysis

Why are systems failures attributed to analysis problems?
How would you describe the business domain?
What can you achieve by treating the business using tools of
rationality?
Why rationality in the first place?
‹#›
Analysts as Systems Experts
Ashworth, C. M. (1988). Structured Systems Analysis and
Design Method (SSADM). Information and Software
Technology, 30(3), pp. 153-163.
Identify what systems experts do.
What are the stages of design?
Can you perform a project management role?
Can you manage systems experts?
Do you understand enough to know what systems experts will
advise you on?

‹#›
Assignment
Form Groups for Assignment 2
Observe your colleagues
Who would you want in your team?
Which team would you want to be in?
Would you make friends or….?
Critically think about your own attitudes towards your own
learning and future
Discuss the Assignment
Have you downloaded the readings?
Do you know how to download the readings?
Have you read the readings?
‹#›
The Role of Analysts
What roles do analysts perform according to the first rationale
or perspective?
How would they gather data?

How would they interpret data?
How would they present their findings?
What assumptions about their findings would they make?
How would they defend their assumptions?
How would they defend their findings?
‹#›
Required Readings
Ashworth, C. M. (1988). Structured Systems Analysis and
Design Method (SSADM). Information and Software
Technology, 30(3), pp. 153-163.
Hirschheim, R. and Klein, H. K. Four Paradigms of Information
Systems Development. Communications of the ACM, 32(10),

pp. 1199-1216.Supplementary Readings
Giaglis, MG, 2001, A Taxonomy of Business Process Modeling
and Information Systems Modeling Techniques, International
Journal of Flexible Manufacturing Systems, Volume 13, Issue 2,
pp 209–228
Jeffrey A. Hoffer, Joey George, Joseph S. Valacich, 2013,
Modern Systems Analysis and Design (7th Edition)
W. Scheer, ARIS: Business Process Modelling, Springer-Verlag,
Berlin, Germany, 2000
Williams, T.J. 1994. The Purdue enterprise reference
architecture. Computers in Industry, 24(2–3): 141–158.
Zachman, J.A. 1987. A framework for information systems
architecture. IBM Systems Journal, 26(3): 176–292.
Zhaohao Sun, Lizhe Sun, Kenneth Strang. 2016, Big Data
Analytics Services for Enhancing Business Intelligence. Journal
of Computer Information Systems, 1-8.
Also, find and download this journal paper:
Howard, SK, Thompson K, Yang, J & Ma, J 2017, 'Working the
system: Development of a system model of technology

integration to inform learning task design', British Journal of
Educational Technology, vol. 50, no. 1, pp. 326–341.
Organisational Analysis Assignment 1
Given Paper 4: Biesta, G 2005, 'Against learning. Reclaiming a
language for education in an age of learning', Nordic Studies in
Education, vol. 25, pp. 54–66.
Question
In your lectures, four rationales for organisational analysis are
described.
1
Critically discuss the argument presented by the author(s).
Answer guide:
· How do the author(s) try to describe their context?
2
What is the method - how do the author(s) convince their
readers?
Answer guide:
· What methodology is used?
· What data is relied on?
· How is data collected?

· How is data analysed?
· How are conclusions presented?
· Can you infer the author(s)’s assumptions on objectivity or
subjectivity of their approach?
3
Drawing on your answers from analysing Q (1) and (2),
critically analyse and match your analysis to the rational given
in Lecture 1 for Organisational Analysis
Answer guide:
· What rational is best matched to the paper analysed?
· Is this a subjective or objective approach?
· Critically discuss your reasoning
· Remember to synthesise with the information in your lecture
rationales and the paper “Four Paradigms of Information
Systems Development” to help
Reframing Organisations

‹#›
Lecture Aims
Understand the limitations of functional analysis
Understand that functional analysis belongs to a particular
tradition of thinking
Understand other frames for analysing organisations
RMIT University
2
‹#›
RMIT University
3
Recap – Map of the Course
Organisations as Functionality

Organisations as Systems of Rationality
Analysing Organisational Maturity
Organisations as Data Information and Knowledge
Reframing Organisations – Interpretivism and Discourse
Critical Reflection
Organisations as Power, Conflict and Coalition
Organisations and Environment
Organisations and Social Accounting
Analysing and Codifying Knowledge
Knowledge and the Learning Organisation
‹#›
RMIT University
4
Collection and analysis of data?
Hypothesis testing?
Socially negotiated?
How is knowledge (or truth) about organisations derived, and

how is knowledge (truth) defended?
Discovering Organisational “Truths”
The models we discussed earlier are representations or end
points of organisational truths.
‹#›
RMIT University
5
Process of Organisational Analysis
Process of Organisational Analysis is seldom discussed….nor
documented.
What leads to the acceptance that the representations of
organisations, as found in the models is correct?
Analysis
Business models as the “product” or output

‹#›
RMIT University
6
The coverage of the previous 5 lectures make a number of
assumptions
The organisation as a concept is well defined
The organisation has a well formed boundary
The role of management is to create a well ordered, controlled
and stable working environment
The internal environment is protected from the external
environment
Organisational Truth Assumptions
Organisation
Environment
‹#›
RMIT University
7
Example of Organisational Truth Assumption

Is knowledge objective or subjective?
‹#›
RMIT University
8
Example of Context
Did you all produce the same functional and data model for
your assignment?
Surely, if you take an objectivist view, all of you should
produce the same solutions?
‹#›
RMIT University
9
Functionalist Approaches
Functionalist approaches are the instruments used to discover
the ‘truths’ that govern organisations.
Models, representing ‘Truths’ possess instrumental value
(practical utility).

‘Truths’ as represented by the functional and data models are
seen as objective and accurate accounts of organisational
properties (e.g. causal powers and laws) and the events with
which management act.
Through ‘truth’ ‘we’ avoid being distracted by speculation,
hunches and lies of ‘others’.
‹#›
Functionalist Approaches
By knowing the ‘truth’ managers can intelligently formulate
strategies and accomplish organisational goals
The instrumental and objective value of ‘truths’ for management
is in establishing control over an organisation, predict outcomes
and to learn strengths and vulnerabilities
RMIT University
10
Organisational functionality, data are all seen as being accurate
accounts

‹#›
RMIT University
11
Viewing Organisations as Systems of Rationality
Systems of Rationality – in some literature described as
“modernism”
Ontology: objectivism-there is an objective reality independent
of our knowledge of it. Organisations are ‘real’ entities that
lend themselves to our senses.
Epistemology: positivism—truth is ‘discovered’ through
conceptualisation/theorisation and ‘testing’ our logic against the
reality found in the objective world.
‹#›

RMIT University
Truth is objective and independent of our knowing
Even if we are not there, the truth exists
Through positivist epistemology, we discover the same version
of truth
All of us have equal access to the truth
Depiction of Functionalist Framing of Organisations
‹#›
RMIT University
13
Analysing Organisations – Multiple Frames
In the practice of management, we need to understand there are
different theoretical “frames”
These “frames” are classified as:
Modernist
Critical Theorist
Symbolic interpretive
Postmodernist
Each frame or perspective has individual ontological and
epistemological foundations

‹#›
Brief Description of Ontology
Ontology
analytical beginning
knowledge assumption
knowledge defence
RMIT University
14
‹#›
Brief Description of Epistemology
Epistemology – what is considered to be a “valid” processes of
discovery
Scientific? Instrumental? Functional?
Self-reflexive questioning?
Social interactions?

Reading? Narrative study?
RMIT University
15
‹#›
RMIT University
16
Different Knowledge Ontologies
‹#›
Consequences for Work and Organisations
What are the consequences of taking different ontological
positions?
RMIT University
17

‹#›
First, the Australian social and political context
RMIT University
18
‹#›
"All up today, there is about 6000 Victorians going to lose their
jobs because Toyota is shutting down," the Australian
Manufacturing Workers Union's Dave Smith told reporters.
ACTU secretary Sally McManus said the car industry was a
crucial part of the Australia's advanced manufacturing industry
and Toyota workers were "betrayed" by the federal
government's failure to value the sector.
The Australian Context

‹#›
Bill Shorten says the loss of the auto industry "did not have to
happen", but the move was forced when the government stopped
financially supporting vehicle markers.
The Government has a role and should sustain the car
manufacturing industry (workers)
‹#›
Malcolm Turnbull says car manufacturers were leaving in
response to changing markets, not a lack of subsidies, valued at
about $7 billion since 2001.
The Government is Not Responsible: The Car Industry has Not
Responded to Competition
‹#›
Secondly, the Singapore social and political context
RMIT University
22

‹#›
“Hundreds of IBM Singapore employees are being laid off, amid
the technology giant's global restructuring efforts. The firm is
cutting manpower from its Singapore Technology Park, a
manufacturing plant at Tampines, as it is relocating
manufacturing of its Power Systems product to a facility in
Guadalajara, Mexico.”
“The tech giant reported better-than-expected second quarter
earnings on Wednesday (July 18), with overall revenue rising by
4 per cent to US$20 billion (S$27.3 billion) — its third straight
quarterly increase after nearly six years of decline.”
Taken from: https://www.todayonline.com/singapore/ibm-
singapore-lays-workers-its-tampines-plant
The Context
‹#›

“In a Facebook post, Labour MP and National Trades Union
Congress assistant secretary-general Patrick Tay said
retrenchment figures are expected to inch up in the next quarter
due to disruption and reorganisation of businesses,and amid
uncertainties caused by trade sanctions imposed by the United
States.”
“Structural challenges such as skills and jobs mismatches
continue to be one of the main causes of unemployment in
Singapore, he added, stressing the need for workers and
employers to remain agile and adaptable.”
Taken from: https://www.businesstimes.com.sg/government-
economy/unemployment-retrenchments-in-singapore-up-
slightly-in-q2-mom
‹#›
Critical Discussion
Critically discuss with your tutor, the differences between the
Australian and Singapore narratives
RMIT University
25

‹#›
References
Berger, P. L., & Luckmann, T. (1991). The social construction
of reality: A treatise in the sociology of knowledge (No. 10).
Penguin UK.
Hatch, M. J., & Cunliffe, A. L. (2012). Organization theory:
modern, symbolic and postmodern perspectives. Oxford
university press.
Taylor, B. C. (2005). Postmodern theory. Engaging
organizational communication theory and research: Multiple
perspectives, 113-140.
Wood-Harper T. (1996). Deconstruction contexts in interpreting
methodology. Journal of Information Technology,11(1), 59-70.
RMIT University
26
‹#›

Reframing Organisations
Tutorial Guide
‹#›
RMIT University
2
Reflection
Did you all produce the same functional and data model for
your classes?
Surely, if you take an objectivist view, all of you should
produce the same solutions?
‹#›
Where does innovation come from?

How does group innovation occur?
How many of you captured the process as well as the end result?
Why do organisational members become entrenched in their
views?
Reflection
‹#›
RMIT University
Truth is objective and independent of our knowing
Even if we are not there, the truth exists
Through positivist epistemology, we discover the same version
of truth
All of us have equal access to the truth
Depiction of Functionalist Framing of Organisations
‹#›
You answered the Question about the origins of innovation

Where do multiple interpretations come from?
An Alternative Framing of Organisations
‹#›
"All up today, there is about 6000 Victorians going to lose their
jobs because Toyota is shutting down," the Australian
Manufacturing Workers Union's Dave Smith told reporters.
ACTU secretary Sally McManus said the car industry was a
crucial part of the Australia's advanced manufacturing industry
and Toyota workers were "betrayed" by the federal
government's failure to value the sector.
Consider this Context: Job Losses
‹#›
Bill Shorten says the loss of the auto industry "did not have to
happen", but the move was forced when the government stopped
financially supporting vehicle markers.
The Government has a role and should sustain the car

manufacturing industry (workers)
‹#›
Malcolm Turnbull says car manufacturers were leaving in
response to changing markets, not a lack of subsidies, valued at
about $7 billion since 2001.
The Government is Not Responsible: The Car Industry has Not
Responded to Competition
‹#›
Can we look at situations with only one perspective?
Reminder: Authentic Assessment
Allow a range of outcomes – no one right answer
In your class, we use the perspectives, or paradigms to facilitate
more than one answer

‹#›
Reflect on Assignment 1
These are four different “ontological” positions!
‹#›
Higher Plane of Thinking
These are four different “ontological” positions!
This is Meta-Theory
Assignment 1 was a way to train your analytical skills
You have to ascertain ontology from:
What data was collected
How data was collected
How data was interpreted
How findings was presented
‹#›

RMIT University
12
Discuss these Ontologies
‹#›
Reflections on Ontology
We cannot teach ontology by deconstructing only one
Ontology – are the four different pictures we discussed
Ontology – as the understanding of a “higher plane” of thinking
means understanding how people could be focused on one plane
of thinking
‹#›

Teaching Ontology
It may be said that we are most familiar with the “functional”
approach, or objectivist approach
Discuss: Why is it so difficult to describe “functionalism”?
‹#›
Update the diagram you developed
How is data collected?
How is data interpreted?
How are findings supported?
How is the method defended?

What Ontology is this?
‹#›
The Word View – only Objective?
Discuss:
What type of argument are you likely to be swayed by?
Is this context dependent?

‹#›
Discuss the project brief
What is your progress?
Have you done your literature review?
Are you continually reflecting on the literature?
Have you discussed your interview questions with your tutor?
Have you interviewed each other?
How is your solution proposal developing?
Are you clarifying with your class leader?
Assignment 2
‹#›
Self-Reflection
What would you write in your personal learning diary, or are
you thinking about how you would update your CV?

‹#›
Power, Control and Coalition
Tutorial (Week 8)
‹#›
1
Assignment 2 – Progress
Take 10–15 minutes to list down some updates about your
group’s progress for Assignment 2
Your lecturer will come around to check your progress

Please take this opportunity to ask any questions you may have
for
Assignment 2
‹#›
Discuss these assumptions
Organisations are places of equality
Organisations are places of fairness
Organisations are designed objectively
‹#›
Discuss Critical Theory Analysis
Indicates ideology, which distorts and influences our view of
the truth
The truth is distorted because of our individual ideology
So even if the truth exists and is independent, we can only see
different versions because of our individual ideology
Truth is discovered through subjective epistemology

‹#›
What is Ideology?
Be aware of organisational ideologies
Technology (technological imperative)
Organisational ideology vs. Bureaucratic control
/Technostructure
Sustainability (Maintenance of
organisational ideology)
‹#›
Divisions in Organisations
Discuss: What ideologies cause divides in organisations?

‹#›
Discuss the practical implications for graduates
Discuss this statement: “Critical theorists have shifted the
image of management and the theoretical agenda ‘from saviour
to problem’’
Crowther and Green (2004: 119).
How are organisational members unconscious of their own
exploitation? Discuss: “If hard work were such a wonderful
thing, surely the rich would have kept it all to themselves”.
Lane Kirkland, former US trade union leader
How would you raise the consciousness of organisational
members?
How would you work towards a more equal and democratic
organisation?
How would you as a future manager work and deal with
coalition?
Tutorial Exercise
‹#›

Discuss Machine Paced Labour
An example of Machine Paced Labour:
Drum-Buffer-Rope
What are the consequences?
Eliminating the cost of skilled trades person
Reduction in the bargaining power of the skilled person
‹#›
Discuss the worker – management divide
‹#›
Efficiency, Automation, Deskilling and Job Losses
The effect of automation is deskilling and disempowerment of
the workforce

‹#›
Critical Studies of Power and Control
Power and Ideology
Why do workers consent to their own marginalisation and
exploitation within organisations?
The dominant ideology (ideas of a society) preserve and
legitimise unjust and undemocratic relations within
organisations.
Ideology “naturalises” unequal and exploitative arrangements
People consent and conform to their own domination.
“False consciousness”
‹#›
11

How is consciousness is raised from both internally and
externally?
Concern with ideology—how do distorted accounts of reality
attempt to conceal and legitimate unequal power/material
relations (Marx’s “false consciousness”)?
Unmask the “roots” of domination within organisations
Express a concern with functionalist claims about the potentials
of reason and knowledge.
Potential Exam Questions
‹#›
Power, Control and Coalition

‹#›
1
Organisational Power, Control and Conflict
Objectives:
Introduce the concepts of power, control, conflict and coalition
Understanding a subjectivist approach to analysis
Powerful internal and external stakeholders
Analysing the roots of dissatisfaction, dissent, suspicion and
coalition
Is worker coalition the answer?
‹#›
2
Critical Organisational Analysis and Strategy Development
Strategy Development

Resource Based View
External Environment
External Stakeholders
Internal
Stakeholders
Inward Looking
Outward Looking
‹#›
PESTEL
Political
Economic
Social
Technology
Environment
Legal
Strategy Development Framework
Outwards looking organisations

‹#›
A Precarious Balance of Power for Organisations
In strategic management:
We look at resources within the organisation
Internal stakeholder engagement
And we look outside organisational boundaries
External stakeholder engagement
Identifying social and environmental issues that matter most to
performance in order to improve decision-making and
accountability.
‹#›
Critical Theory as an Analytical Tool
Critical Theory as enabling managers to understand both sides
of an argument
Understand that arguments are intractable because they emanate
from people holding different assumptions

‹#›
The Need to Go Beyond “Rationality”
Organisations are portrayed as systems of oppression, rather
than as systems of order
Stories of social divisions, power, exploitation, inequality and
conflict within organisations
Social classes in organisations exist and are in conflict
Emergence of pejorative language in the description of
organisations:
“Capitalist organisations alienate and exploit workers”
(Burawoy, 1979)
‹#›
Critical Theory Analysis
Critical Theorist: Systems of Oppression
Systems of Production: Places of Work

Capitalist organisations alienate and exploit workers
Worker emancipation requires the establishment of a more
democratic and egalitarian organisation
‹#›
Organisations are analysed as capitalist class relations (i.e.
owner and labourer).
Organisations are portrayed in terms of
Capitalist mode of production characterised by exploitation and
alienation of the workers by the owners of the means of
production
Calls for worker emancipation, and for the establishment of a
more democratic and egalitarian organisation
The emergence of a ‘critical’ organisational discourse.
In the US:
C. Wright Mills (1956) The Power Elite
Alvin Gouldner (1954) Patterns of Industrial Bureaucracy
(1955) Wildcat Strike
In the UK:
Ralf Dahrendorf (1959) Class and Class Conflict In An

Industrial Society
‹#›
Justification for Critical Theory Analysis
If organisations do not recognise and address problems, then
these problems are often exposed in more uncomfortable
settings:
Social media
News reports
“Haterade” (excessive negativity, criticism, or resentment)
“Clicktivism”
‹#›
Understanding the Critical Theory Viewpoint
Organisations experience social divisions from within and

outside
Differences stem from ideological differences
Major influence Karl Marx (1818-1882)
Concerned with social divisions, power, inequality and conflict
within organisations and broader society
‹#›
Limitations of Functional Analysis
Organisational ‘Truths’ are only partially represented by
process models
What is missing from Process Models?
Are Process Models incomplete?
Analysis of Organisations through Critical Theory
‹#›

Critical Theory
Ontology (World View)
There is an objective reality about organisations
But
Accounts of organisations are discovered through subjectivist
interpretations
‘Nature cannot be seen as it ‘really is’ or ‘really works’ except
through a value window’
Guba (1990: 24)
By “world view” it means some are ideologically oriented to see
“capitalist” organisations as exploitative and thus disputes
occur
‹#›
The uncovering or “reveal” of ideology
Inductive: a process of developing theory from observation and
interpretation:
Reflexive
Historical

Discourse Analysis
Self-awareness
Introspection
‹#›
Previously: Application of Science to Control Workers
Machine paced labour (Scientific Management Strategies):
Grounded in a technical rational paradigm that advantages
quantifiable information
Increase efficiencies by simplifying the production process into
specialised tasks
Management develops precise scheduling and organising of
work activities

‹#›
15
Inequality Regimes within Organisations
Critical Theory Analysis of Inequality Regimes
All organisations have inequality regimes (gender, age, etc)
Organisational members are misled by those in power
Systems of inequality are reinforced, embedded, routinised
Defined as loosely interrelated practices, actions, meanings that
result in and maintain class, gender, and racial inequalities
within particular organisations
‹#›
Unequal Systems and Resistance
How do workers redress the reduction in bargaining power or
inequalities?
How is freedom from oppression and exploitation attained?

‹#›
Calls for Emancipation: Workers as Active Agents Within
Organisational Relationships
Workers’ resistance to unequal power in the workplace:
Individual action:
Verbal complaints
Go-slows
‘Cheating’
Absenteeism
Looking for other work
Sabotage
Theft
Collective Action:
Strikes
Go-slows
‘Sick-out’
The formation of trade unions
‹#›

18
A Different Portrayal of Management
A more ‘critical’ analysis of dominant organisational ideas and
management practices.
‘critical theorists have shifted the image of management and the
theoretical agenda ‘from saviour to problem’
Crowther and Green (2004: 119).
‹#›
Unpacking stories from opposing perspectives
The organisation’s narrative is not only internal
communications, websites, annual reports, etc.
The organisation’s story comprises a totality of narratives
Allows us to interrogate, critically, the nature of any
institutionalised pattern of social relationships within a society
(and organisation) in the context of manifest imbalances of
power, i.e. between advantaged and disadvantaged

‹#›
Critical Theory: Discourse Analysis
Let us step through a number of examples of narratives
What is the truth?
What people accept as being the truth ‘Knowing’ the ‘truth’ is
‘tainted’ by dominant ideology and values of the those seeking
‘truth’.
‹#›
How do disputes manifest?
Linking awareness and human emancipation or improvement
‹#›

The Corporate Point of View
‹#›
Critical Studies of Power and Control
Portrayal of organisations as places exploitation
Organisations are excessively or obsessively driven by capital
accumulation
Greater the exploitation of labour—greater the profit.
Extension of the working day (for the same wages)
Efficiency drive to produce more in the same amount of time for
the same wages
Technological development (reduction of wages)
‹#›
24

Understanding why people resist
People resist systematic disparities in organisations
Unrest
Coalition, workforce organisation against management,
corporate greed
Managers need to be aware of the organising processes that
constitute inequality regimes in organisations, that are related
to the “economic decision making that results in dramatically
different local and regional configurations of inequality”
‹#›
Giving Voice to the Exploited
‹#›
Emancipation through Worker Coalition

Organisational members (workers) are misled by those in power
‹#›
Issues are heavily contested
The purpose is, therefore, to develop appropriate organisational
practices to address the problems
What Outcome are We Trying To Achieve?
‹#›
Do Coalitions, themselves, become Exploitative?
THE former Health Services Union leader was leading a
charmed life.
Kathy Jackson appeared to be a wealthy woman who was living

in luxury.
She travelled the world and bought expensive cars and designer
clothing.
But her world has come crashing down as she has been charged
with 70 theft and deception offences by union corruption
investigators…………………
‹#›
Do Coalitions, themselves, become Powerful?
Construction unions using bikies as 'hired muscle' in industrial
disputes: Victoria Police
By Alison Savage
Updated 8 Jan 2016, 2:50pm
‹#›
Summary: Why Critical Theory?
Contrasting a Modernist-Functionalist mindset with a Critical

Theory mindset (ontology)
To show different world-view (ontological) assumptions
Ideologies have fundamental different assumptions
Explains why some ideologies conflict
Managers have to analyse the roots of conflict
Some organisational problems are intractable
‹#›
References
Dahl, R. A. (1957). The concept of power. Behavioral science,
2(3), 201-215.
Freund, J. (1969). TheSociology of Max Weber.
Giddens, A. (1985). The nation-state and violence (Vol. 2).
Univ of California Press.
Goffman, E. (1959). The presentation of self in everyday life.
Hamilton, P. (Ed.). (1991). Max Weber, Critical Assessments
2 (Vol. 2). Taylor & Francis.
Hatch, M. J., & Cunliffe, A. L. (2012). Organization theory:
modern, symbolic and postmodern perspectives. Oxford
university press.
Dahrendorf, R. (1959). Class and class conflict in industrial
society. Stanford University Press.

Durkheim, E. (2014). The division of labor in society. Simon
and Schuster.
Gouldner, A. W. (1954). Patterns of industrial bureaucracy.
Guba, E. G. (Ed.). (1990). The paradigm dialog. Sage
Publications.
Mills, C. W. (1999). The power elite. Oxford University Press.
Guy, G. (2011). Language, social class and status.
In R. Mesthrie (Ed.), The Cambridge handbook of
sociolinguistics (1st ed., Vol. 1, pp. 159–185
‹#›
Organisational Analysis Assignment 1
Given Paper 3: Haugsbakk, G & Nordkvelle Y 2007, 'The
Rhetoric of ICT and the New Language of Learning: A Critical
Analysis of the Use of ICT in the Curricular Field', European
Educational Research Journal, vol. 6, no. 1, pp. 1–12.
Question
In your lectures, four rationales for organisational analysis are
described.
1

Critically discuss the argument presented by the author(s).
Answer guide:
· How do the author(s) try to describe their context?
2
What is the method - how do the author(s) convince their
readers?
Answer guide:
· What methodology is used?
· What data is relied on?
· How is data collected?
· How is data analysed?
· How are conclusions presented?
· Can you infer the author(s)’s assumptions on objectivity or
subjectivity of their approach?
3
Drawing on your answers from analysing Q (1) and (2),
critically analyse and match your analysis to the rational given
in Lecture 1 for Organisational Analysis
Answer guide:
· What rational is best matched to the paper analysed?

· Is this a subjective or objective approach?
· Critically discuss your reasoning
· Remember to synthesise with the information in your lecture
rationales and the paper “Four Paradigms of Information
Systems Development” to help
Organisations as Systems of Objectivity and Rationality
‹#›
Aims
How are Organisations seen as Systems of Objectivity and
Rationality?
Examine the following aspects of organisations:
Functionality

Data, Information and Knowledge
Organisations through prescriptive frameworks
2
‹#›
Why Analyse Organisations?
3
organisations. Analyse objective truths (facts) as objective and
accurate accounts of organisational properties (e.g. causal
powers and laws) and the events within which management must
act.
Truths possess instrumental value (practical utility).
Avoid being distracted by speculation, hunches and lies.
By knowing the truth, organisations intelligently formulate and
The instrumental and objective value of truths for management

is in assisting them to establish control over an organisation,
predict outcomes and learn about one’s powers and
vulnerabilities
‹#›
Organisations are Complex
Organisations by nature, are complex entities
Irrespective of size:
Larger firms may have more infrastructure as resources
Small organisations can be highly innovative
4
Image source: Google Images leaders.cesma.it;
gnp.advancedmanagement.net
‹#›

Organisations Need Systems of Control
5
‹#›
6
‹#›
Enterprise Analytics – Support of Rationality

7
Enterprise analytics means business and process analytical
capabilities across an enterprise.
provides organisations with the ability to collect, analyse and
process analytical data in all or most functions of the business.
‹#›
Organisations as Complex Systems
A complex system is seen as being made up of specialised parts
called subsystems that work together to achieve a common goal.
8
How do you manage complexity?
‹#›

Managing Organisational Complexity
How do you eat an elephant?
Systems engineering
one bite at a time
the “divide and conquer” principle
9
‹#›
Organisations as Systems
A system is constructed of mutually and organically interrelated
specialised parts called subsystems.
The goal is to understand the ‘laws’ governing organisational
systems and how each subsystem performs a particular activity
and ‘functions’ to help enact the larger system
An organisation is seen as a system comprised of four sub-
systems (technology, social structure, culture and physical
structure) located within a supersystem (i.e. global
environment) of which it is a part

10
‹#›
Conceptualisation of Organisations
The conceptualisation of “human systems”
The concept of a “human system” is abstract, nebulous, fluid,
elastic
Human systems tend to be conceptualised as being tangible,
objective, instrumental - capable of being represented and
quantified
11

In your tutorials, explore the meaning of “conceptualisation”.
What does it mean when an abstract concept is given technical
rationality?
‹#›
Analysis underpinned by Rationality
organisations
Analyse ‘Truths’ as objective and accurate accounts of
organisational properties (e.g. causal powers and laws) and the
events within which management must act
Through ‘truth’ organisations avoid being distracted by
speculation, hunches and lies
‘Truths’ possess instrumental value (practical utility)
By knowing the ‘truth’ organisations intelligently formulate and
12

‹#›
Organisations as Frameworks
Organisations as defined through Enterprise Architecture
Business Architecture
Information Architecture
Technology Architecture

Organisational AnalysisOrganisations as Systems of Objectivity.docx

Recommended

Recommended

More Related Content

Similar to Organisational AnalysisOrganisations as Systems of Objectivity.docx

Similar to Organisational AnalysisOrganisations as Systems of Objectivity.docx (20)

More from vannagoforth

More from vannagoforth (20)

Recently uploaded

Recently uploaded (20)

Organisational AnalysisOrganisations as Systems of Objectivity.docx