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1309 - Organizations and Society
An advanced course in management and organization where the aim is to offer insight to the interplay between organizations and their environment.
53
Economics
Graduate
05/25/2014

Additional Economics Flashcards

 


 

Cards

Term

Furusten (2013), Ch. 1, p. 5

 What is the main idea of the book Furusten (2013) - Institutional Theory and Organizational change 

Definition

 

"We, as individuals and a collective, cannot isolate ourselves from what is going on around us"

Term

Furusten (2013), Ch. 1, p. 5

What is the "institutional environment"?

Definition

1) "The surrounding environment that determines the conditions that org. and their managers must adapt to and manage in order to be regarded as legitimate actors in the type of business they conduct"

 

2) Legal, social and mental structures that ind. org. are embedded in

Term

Furusten (2013), Ch. 1, p. 6

What is "institutionalization"?

Definition
Where an activity has become so established that most of us take for granted that a certain understanding of what characterizes it; e.g. education, steel production, hospital care...
Term

Furusten (2013), Ch. 1, p. 7

Why is it important for decision-makers to have a good understanding of the institutional environment

Definition

 

To improve their chances of making more carefully considered decisions

Term

Furusten (2013), Ch. 1, p. 9 

Give examples of indirect influence

Definition

 

- General rules for a particular industry

- Laws

- Discourses (ways of talking)

- Norms (ways of doing things)

Term

Furusten (2013), Ch. 1, p. 13 

Give ex. of "societal factors"

Definition
  • Fashions
  • Rules
  • Ideas
  • Knowledge
  • Ideologies
  • Norms

Minnesregel: FRIKIN ("Freekin'")

Term

Furusten (2013), Ch. 1, p. 19 

What is Furusten's view on 'economic man' and 'profit-maximization'?

Definition
In practice, there is seldom an 'economic man'. It is rarely a matter of 'profit-maximization', but rather of security and social exchange and, consequently, of sufficient economic profit.
Term

Furusten (2013), Ch. 1, p. 21

Give example of legal strucures

Definition
  • Swedish Companies Act:
    - All companies must have: an auditor, a board, a managing director, certain amount of capital, etc. 
Term

Furusten (2013), Ch. 1, p. 25 

In what sense are norms binding?

Definition
Even though, from a formal standpoint, following norms is voluntary, they are still binding because it is extremely difficult to go against an established norm. At least if you want to be seen as a legitimate actor within your field.
Term

Furusten (2013), Ch. 1, p. 30 

What are the key elements in the institutional environment? (Furusten's hill)

Definition
  • The indirect environment:
    - 5) Societal trends
    - 4) Institutional movements 
  • The direct environment:
    - 3) Institutional actors
    - 2) Institutional products
    - 1) Exchange 

   THE ORGANIZATION 

Term
Furusten (2013), Ch. 1, p. 29
Give example of "exchanges" in the institutional environment
Definition

 

  • Business exchanges
  • Financial or stakeholder exchanges, e.g.:
    - customers want their goods
    - suppliers want their money
    - financiers want ROI 
Term

Furusten (2013), Ch. 1, p. 29 

Give example of institutional products 

Definition

 

  • Fashions:
    - management techniques
    - organizational forms 
Term

Furusten (2013), Ch. 1, p. 29 

Give examples of inst. actors

Definition
Management consultants
Term

Furusten (2013), Ch. 1, p. 31 

Give example of inst. movements

Definition
Marketization
Term

Furusten (2013), Ch. 1, p. 31 

Give example of societal trends

Definition

 

  • Modernity - We strive for predicatbility, calculability, measurability, order, control and rationality (cause-effect relationships)  
Term

Furusten (2013), Ch. 2, p. 35

Fig 2.1 Institutional products

Definition
  • Materialized
    - Info: Ideas, knowledge, ideology
    - Rules: Standards, codes, directives
  • Social
    - Services: Consultation, education 
Term

Furusten (2013), Ch. 2, p. 35

What is information?
Definition
Task of informing; information produced with the aim of informing other org. and ind. about something specific.
Term

Furusten (2013), Ch. 2, p. 37

What is knowledge?

Definition
The ideal form of information. Information is about something that is true.
Term

Furusten (2013), Ch. 2, p. 40

What is ideology?

Definition
Specific sets of beliefs and ideas. Examples: 1) Neoliberalism (free trade, competitive markets) 2) Managerialism (certain forms of management and governance/control are seen as superior)
Term

Furusten (2013), Ch. 2, p. 41

What is the concept "Ideas"?

Definition
Information (but less complex than ideologies) with the aim to express views for others to take note of. Examples: TQM (Total Quality Management), BSC (Balanced ScoreCard), CSR (Corporate Social Responsibility)
Term

Furusten (2013), Ch. 2, p. 43

Explain "Rules"?

Definition
Rules exhort or urge. It is a matter of things that they must do.
Term

Furusten (2013), Ch. 2, p. 44

What is "directives"?

Definition
A directive is formulated by a superior and is meant to apply to subordinates in the particular context. Example: 1) Management's decisions are expected to be followed be employees. 2) EU directives are expected to be followed by member states and organisations within the union.
Term

Furusten (2013), Ch. 2, p. 48

What is "Standards"?

Definition
A standard is also an exhortation but following is voluntary. Example: ISO 9000 (international quality management), ISO 14000 (environmental management), ISO 26000 (Social responsibility)
Term

Furusten (2013), Ch. 2, p. 49

What are "codes"?

Definition
Codes are a special type of standard written down as requirements for membership of an association. Example: Ethical codes for lawyers, doctors and auditors.
Term

Furusten (2013), Ch. 2, p. 50

Why is Education an important component in the environment of organizations?

Definition
Because in the context where education is produced and delivered, many impressions about organizing, management, etc., are transmitted.
Term

 Furusten (2013), Ch. 2, p. 54

Explain "Investigation"

Definition
A service to find out the current state of things; to generate facts and a basis for making decisions on various issues.
Term

Furusten (2013), Ch. 2, p. 55-62

Give examples of two types of packaging of institutional products

Definition
1) Text: Packaging info in a report where a series of different actors and interests is involved in
2) Talk: Services that only exists where they are performed, i.e. they cannot be stored or textualized
Term

 Furusten (2013), Ch. 3, p. 67

What are institutional actors?

Definition
Actors who have opinions about what organizations whould do and how they should do it. Example: UN (including The World Bank, WTO, ILO), OECD, EU
Term

Furusten (2013), Ch. 3, p. 72-73

Give examples of rule producers

Definition
Trade associations, Interest groups, EU, WTO, OECD, UN, Politicians, CEOs, Consultants
Term

Furusten (2013), Ch. 3, p. 73

Give examples of Information producers

Definition
Trade associations, Interest groups, EU, WTO, OECD, UN, Politicians, Researchers, Consultants, CEOs
Term

Furusten (2013), Ch. 3, p. 73

Give examples of Service producers

Definition
Teachers, Researhers, Consultants
Term

Furusten (2013), Ch. 4, p. 99-100

What is an "institutional movement"?

Definition

”A movement:

- when the same ideas are espoused by many actors at more or less the same time in many places around the world.

- Particular logics become significant for what is perceived to be relevant and reasonable in many organizations. 

 

Term
Furusten (2013), Ch. 4, p. 85
Give examples of movements
Definition

1. Corporatization: a unit must generate profit, be productive and competitive. Ex: privatization and incorporation. Linked to inst. products such as BPR and TQM

2. Organization: in order to be a rational market actor, a unit must become a 'real' organization - i.e. have an identity, a hierarchy and a rationality, be controllable and manageable, etc.

3. Marketization: using market solutions to political contexts

4. Managementization: a demand that units have a hierarch and that certain people, i.e. managers, are given the responsibility of showing acceptable results for the process tey manage. Example: different expectations of the CEO of TeliaSonera vs. former director general of Televerket

5. Expertization: the use of experts, in our complex society, to manage different tasks and matters efficiently. Organizations are slimmed-down as much as possible and external experts must be available at times when internal capacity is not enough.

Term

Furusten (2013), Ch. 5, p. 101

Define "societal trends"

 

Definition

 

an indirect element that is long-lasting and deeply socialized meaning few things can be seen as true trends within the org. field.

Term

Furusten (2013), Ch. 5, p. 102-121

Give an example of and explain a societal trend

 

Definition
Modernity (modern society, modernism): characterized by a strong belief in rationality, progress, growth and development, calculability, predictability and instrumentality. This way of thinking strongly characterizes the content of the institutional movements.
Term

Furusten (2013), Ch. 6, p. 122

Why is decontextualization and recontextualization important?

 

Definition
Because elements in the institutional environment are not produced and spread on their own.
Term

Furusten (2013), Ch. 6, p. 122-123

What is "decontextualization"?

 

 

Definition
The release of information, from its context by packaging it in a form (text or talk) that gives it the capacity to be mobile - i.e. able to be moved.
Term

Furusten (2013), Ch. 6, p. 123

What is "recontextualization"?
Definition
Introducing dextexualized information in a different context from where it was produced; diffusion of content to new situations. The information becomes local again.
Term

Furusten (2013), Ch. 6, p. 141

What is needed for diffusion of ideas?

 
Definition
There must be actors who decontextualize and recontextualize the ideas through active actions.
Term

Furusten (2013), Ch. 6, p. 143

How does recontextualization occur?

 
Definition
  • Copying: recreating something specific as exactly as possible
  • Imitation: an attempt to be like something (but not copy)
    1) Improvisation: a variant of imitation for forming a starting point for actions. The general ideas form the basis upon which actions then rest. Common element among professionals, e.g. doctors, lawyers, CEOs, consultants
    2) Translation: attemps to imitate successful examples or generalized models through adaption to something that feels meaningful in a particular context. 
    3) Decoupling: separating actions from words - a fairly practical method for managing pressure from the surrounding environment. E.g. Making presentations and taking decisions of, but not implementing, a management concept such as 'lean'.
Term

Furusten (2013), Ch. 7, p. 158

Why cannot organizations simply ignore what goes on around them / resist change or handle pressure from the institutional environment in other ways?

Definition
The organization are not extended the legitimacy needed to run their activities if they violate the demande of the environment materialized by institutional actors and their products.
Term

Furusten (2013), Ch. 7, p. 160

What effect does the institutional environment have on individual organizations?

Definition
The institutional environment limits individual organizations' room to act
Term

Furusten (2013), Ch. 7, p. 162

What are the two contrasting explainations presented for why we are unable to resist certain ideas?

Definition

1) "Organized spirit of the time": an almost mystical force that inevitably draws us in. We simply follow the fashion; if we feel that we deviate too much from the 'ruling' fashion, a demand arises in us for a change. Not satisfactory as an explaination.
2)  "Organizing in the institutional environment": It is clear that the ideas that attain wide diffusion share common denominators: first, they are firmly rooted in the societal trend of modernism; and second, they are in line with dominating institutional movements such as  marketization, organization, managementization, corporatization, expertization

Term
Furusten (2013), Ch. 7, p. 168
Explain the 'From discourse-to-standards' model
Definition

The model is comprised of: 1) Discourse 2) Fashion 3) Standards. A discourse is a general conversation about something. A fashion is a specification of certain expressions in the discourse, and a standard is a mobilization of forces around a fashion. The further into the model we get, the more tangible the pressure of the surrounding environment. Also, the organizing becomes more formally structured the further in we get.

Term

Furusten (2013), Ch. 7, p. 170
Give an example of we we can say that a discourse is global?

Definition
A discourse i globale, for example, when we observe similarities in the books being read, how teaching is conducted, and how activities are organized in many places in the world.
Term

Furusten (2013), Ch. 7, p. 171

Name for context of particular importance where influential actors perform; i.e. context in which conversations about organization and leadership take place

Definition

1) Academic education

2) Seminars and courses

3) Literature
4) Consultancy/advisory services 

Term

Furusten (2013), Ch. 7, p. 172

Name three components that determine the character of discourses

Definition

1) WHO the actors are, and how credible what they say is

2) WHAT kind of data lies behind what they say

3) The rhetoric - i.e. HOW the arguments are constructed

Term

Furusten (2013), Ch. 7, p. 173

How do fashions appear?

Definition

1) It has been argued that fashions are constructed as a result of particular activities being carried out - in interaction between academia, management consultants and the mass media, on the one hand, and those who demand the fashions, on the other.

2) However, this explaination does not paint the whole picture. Fashions are constructed from interaction between a number of actors. For an idea to become fashionable, it requires a more systematic interaction between different actors than in the case of discourses. It requires that many actors do about the same thing at about the same time. Even here, the element of spontaneity is tangible. Thus, for fashions to arise, no formal organizing - i.e. where particular organizations are assigned the responsibility of creating fashion - is required.

Term

Furusten (2013), Ch. 7, p. 185

What does the institutional environment do?

Definition
It creates legal, mental and social structures that we must work within if we want to be accepted as serious, legitimate actors
Term

Furusten (2013), Ch. 7, p. 185

What can we do if we don't like the legal, mental and social structures that we must work within if we want to be accepted as serious legitimate actors? 

 

Definition

1) We can acquiesce (ACCEPT something reluctently without protesting) and play the game according the rules anyway
2) We can be difficult and refuse (NOT ACCEPT) to play by the rules. The risk here being great that we will not be permitted to play, that we will be regarded as non-credible and untrustworthy, someone who cannot really be counted on
3) We can try to CHANGE the demands of the institutional environment. 

Term

Furusten (2013), Ch. 7, p. 183 

When something is institutionalized, it meant that...

Definition
...something whose existance we do not question has been established. An idea can lose popularity, but while we may stop talking about a certain model, its content may remain continue to be discussed under another name or occur as a taken-for-granted component in decisions and actions. It means that institutional demands having been established for what organizations should be, what they should do and how they should act - demands that org. are not free to choose to follow or not if the org. wants to be percieved as a legitimate player.
Term

Furusten (2013), Ch. 7, p. 186

To change the demands of the institutional environment, it is esseantial that...

Definition
...1) we have patience and work systematically.
2) We must operate in the circles where the demands are formulated, and acquire a position of legitimace that enables us to be regarded as credible and to make our voices heard.
3) We must mobilize others to join us, so that we are not trying to move mountains on our own
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