Rethinking Organizational Hierarchy, Management, and the Nature of Work with Peter Drucker and Colin Ward

Rethinking Organizational Hierarchy, Management, and the Nature of Work with Peter Drucker and Colin Ward

the author(s) 2014 ISSN 1473-2866 (Online) ISSN 2052-1499 (Print) www.ephemerajournal.org volume 14(4): 659-672 Rethinking organizational hierarchy, management, and the nature of work with Peter Drucker and Colin Ward J. Christopher Paskewich ‘Philosophical anarchism is a defensible position in theory. The only trouble with it is it never works.’ (Drucker, 2010: 40) ‘We have to build networks instead of pyramids.’ (Ward, 2008: 33) Peter Drucker (1909-2005) has always romanticized the role of the manager. For the so-called ‘father of management’, the manager ‘stands between civilization and barbarism’ by helping institutions make society’s resources productive (Beatty, 1998: 104-5). The manager is the one element that organizations cannot do without. The anarchist Colin Ward (1924-2010), however, viewed management as a coercive ‘technique’ that drained workers of spontaneity and initiative (Ward, 2008: 48). He did not fear that managers were not competent or knowledgeable – some might very well be both. The fear is that they forced those beneath them to behave passively and perform tasks solely to satisfy evaluation standards. Drucker and Ward are at odds on the role of the manager in organizational hierarchy. Comparing their ideas, however, shows some common ground, at least initially. Both of them seek an approach to organization that can solve society’s needs, but with less exploitation of those involved. Drucker tries to humanize capitalism by taming its excesses, but he ultimately admits the system can only allow minor reform. While Drucker is not so disgusted by capitalism that he rejects it, he finds himself at an impasse: seeking worker empowerment that does not seem possible within the boundaries of the capitalist organization. Ward shares Drucker’s misgivings about business and goes much further. While freer note | 659 ephemera: theory & politics in organization 14(4): 659-672 organizations can exist within a capitalist economy, he argues, they cannot themselves be capitalist. Ward would stress that Drucker’s impasse occurs because Drucker seeks an outcome that capitalism simply cannot provide, whatever the quality of the organization’s management. Ward shows how anarchist theory can provide organizations that actually accomplish goals of worker empowerment and involvement that Drucker sought. Ultimately we find that management theory cannot transcend its capitalist framework and offer workers a free organization. The coercion from management and the alienation of the workers will remain. Colin Ward, one of the great British anarchists of the twentieth century, is a useful representative of anarchism to explore when studying organizations. He wrote many stimulating essays and books, but his 1973 masterpiece – Anarchy in Action – criticizes managerial approaches to industrial production, offering instead actual examples of anarchist practice within organizations. His expertise was in architecture and urban policy, but his writings touched on self- determination in nearly every facet of society. He defined anarchists as: people who make a social and political philosophy out of the natural and spontaneous tendency of humans to associate together for their mutual benefit. (Ward, 2008: 24) His understanding of anarchism can be approached from two observations (Goodway, 2012: 316). The first is a response to a view from someone like Drucker: anarchism will never work. Ward observes that anarchism already exists and already works. People in every country around the world have created some spaces or groups that are self-determining and non-hierarchical. The focus here should be on expanding these spaces or adding to these groups. Much of his research was to document examples of autonomous action, that people might see how possible it is (White, 2007). The second observation he had was that people have been encouraged to misunderstand their own natures. Many might claim that we live in a dog-eat- dog world of constant competition: how could we ever shed our self-preserving ‘human nature’ to all work together in some anarchist utopia? Ward observes we already are working with each other with a high degree of cooperation. Any corporation would disintegrate if not for a sense of sharing and collaboration, at least in some areas. Here he follows Peter Kropotkin, the nineteenth century anarchist, and his idea of ‘mutual aid’ in evolution (Ward, 2008: 10). Those who survived were not always the fittest, but were those who worked together. Ward pushes his readers to expand these areas of cooperation in their own lives: to join self-determining groups and to build on the already-existing cooperation they have in their lives. 660 | note J. Christopher Paskewich Rethinking organizational hierarchy, management, and the nature of work Drucker and Ward have competing approaches to organizational culture and hierarchy. In a 1981 lecture, Drucker observes that organizational structure is best approached by one of two paths (2010: 83-4). The first path is that of the ‘constitutionalist’, which brings to mind the checks and balances or separation of powers in the American Constitution. This approach emphasizes an organization’s institutional restraints that limit wrongdoing and its institutional supports that encourage desirable outcomes. Drucker believes this approach was so prevalent during the twentieth century that it led to lopsided results (an over- reliance on limiting power through organizational structures) (2010: 84). To correct this dependence on organizational ‘constitutionalism’, Drucker focused more upon the second path: character formation. He calls it ‘the education of Christian princes’, a reference to a body of thought from political theory that is found in ancient authors like Plato, through medieval authors like Erasmus, and beyond into the Enlightenment era. He asks: how does one socialize people to work hard and be trusted to do the right thing? Drucker believes that this ‘formation of people’ needs to be carefully examined and applied, as it cannot be done without (2010: 84). The formation could occur through an organization providing training programs, through the organization’s culture, or through some outside source (like an MBA). Ward takes a very different approach here. He equates the ‘formation of people’ with brainwashing. While Ward does believe that a general tone of compassion and reason is needed in a community, he does not seek a carefully-crafted organizational culture. He would dismiss this as empty jargon designed by ‘out of touch’ managers. Ward’s rejection of the creation of an organizational culture gets to the heart of the anarchist critique of hierarchy. The state rules in an authoritarian way over citizens’ bodies (e.g. police force, incarceration, etc.), but also their minds (discouraging spontaneity, encouraging dependency, etc.). The state passes this authoritarianism to all hierarchical organizations throughout society (Ward, 2008: 33). This kind of oppression includes organizational culture, essentially a way to indoctrinate workers to function like robots. Ward’s view would be less interesting if the only criticism of organizational hierarchy and culture is that it removes autonomy. He sees another problem: hierarchical institutions rob people of initiative and efficiency (Ward, 2008: 35). It is not that organizations are oppressing workers so that they can get the most effective work from them. It is that organizations are ensuring they do not get the best work out of their workers by having such a hierarchy. When asking what keeps workers most productive, one faces two alternatives: a high degree of autonomy or a manager above who will keep him or her focused. Ward reasons that initiative and efficiency increase as autonomy increases because the ‘whole’ note | 661 ephemera: theory & politics in organization 14(4): 659-672 worker is being involved, not just a few isolated skills. Decision-making abilities become honed. Creative solutions and experimentation are tried out in practice. One invests more in a project that one has more control over. In practical terms, a worker closer to the project has a clearer sense of what the limitations are and what might be a waste of resources. Flattening pyramids into networks This approach to organizing is important to Ward because of the choice it makes – a choice away from more hierarchies and toward less hierarchies. Ward was a student of organizations and the way order can emerge in non-hierarchical situations. Instead of hierarchy, he prefers networks without a center that have shifting leadership (Ward, 2008: 33, 66). Instead of being reduced to passive robots, individuals in the work place may thus act as individuals, charting their own course. The wellbeing of workers mattered to Ward because he connected each individual decision we make in the workplace – or anywhere else – to whether society becomes more anarchistic. Rather than advocating immediate and violent revolution for an anarchist utopia, he wants to gradually expand the capacity and space for self-determination. David Goodway characterizes Ward’s views in stating that: [there is] a prolonged situation of dual power in the age-old struggle between authoritarian and libertarian tendencies, with outright victory for either tendency most improbable. (Goodway, 2012: 316, 320) Ward observed that an anarchist society will never be consented to by all of the people, thus the state will remain (White, 2007: 13-4). What people are able to do, however, is take on as much responsibility

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