The Coming Shape of Organisation

Citation

Cromie, S. (1998), "The Coming Shape of Organisation", European Journal of Marketing, Vol. 32 No. 11/12, pp. 1193-1195. https://doi.org/10.1108/ejm.1998.32.11_12.1193.1

This is a stimulating little book which considers the kind of organisational arrangements that will be necessary for economic and social success in the future. The book is addressed to managers and students of management in an attempt to influence the direction which changes in organisation structures will take.

Belbin notes that in seeking guidelines to the future it is possible to adopt three stances:

(1)There is no control over it, it is down to fate.

(2)With sufficient will and skill, it can be managed.

(3)With sophisticated forecasting, the future is predictable.

However, he rejects all three in favour of an evolutionary stance. He argues that all social systems ebb and flow and it is incumbent on futurologists to predict the evolutionary form of social organisation that is most appropriate for the conditions we meet now and in the foreseeable future.

He then presents an analysis of the deficiencies of hierarchical bureaucracies in the current era and reveals that the inappropriateness of this structure and the economic recessions of the 1970s and 1980s led to radical restructuring. Organisational layers were reduced, staff were sacked, regulations were simplified and a reduction in control was apparently inherent to success. However, in time a fatal flaw in the restructured organisations emerged. The surviving organisations seemed to rely for success on heroic leaders overseeing a large number of team based operational and middle managers. But in due course there were many casualties among the new organisations. For Belbin, this failure resulted from the enormous work load, coupled with the limited human capacity, of the new heroic leaders. These great leaders were unwilling or unable to relinquish control and decentralise decision making to their middle managers. In effect they failed to use teams of managers to focus on strategic and operational issues and to give these teams real power. CEOs were determined to keep tight control and subsequently would only pay selective attention to strategic and operational issues. Having noted the difficulties faced by human organisations in drawing on the undoubted benefits of a degree of strategic direction and team based interaction and problem solving, Belbin turns to the world of the higher insects for guidance.

In chapter four, a fascinating presentation is made of the social organisation of beehives, anthills and termite mounds. These insects rely heavily on a division of labour but they are highly social and co‐operative. Differences in intelligence and other aptitudes are real, but castes are not exclusive and members can be re‐trained to meet contingencies without seeking permission from hierarchical leaders. In addition, a degree of “social donorism” exists. Insects will self‐sacrifice for the greater good of the community.

While recognising that humans are not insects, Belbin feels that their capacity to develop self‐managed differentiated units and “interact with one another in an integrated way” is a vital lesson for organisations. In attempting to link the organisational principles practiced by insects and humans, Belbin considers that it is important to consider whether requisite activities are strategic or operational and structured or unstructured. Strategic and unstructured activities are difficult to comprehend and require a team‐based approach while operational, and structured activities can be completed by individuals in a prescribed way. Belbin’s first attempt to address these issues resulted in a structure which resembles a trapezium. Strategic matters would be addressed by concurrently operating empowered teams while operational matters would be completed by more traditionally organised work groups. However, this is little more than an administrative adhocracy as advocated by Mintzberg (1979); a truncated strategic apex and routine operating core. Belbin developed his thinking further by suggesting that strategic and operational teams must focus on and be held responsible for business processes, not functional jobs. A strategic team would have responsibility for and power to address all aspects, or a significant component, of the strategic process. Strategic consideration must accommodate operational realities and this can be achieved by involving relevant operational staff in strategic teams.

For Belbin, much of the work of modern organisations must be completed by teams and the middle section of his book develops the principles by which such teams should work. It is important to note that they are not cosy autonomous collectivities. They are made fully aware of the strategic direction the organisation is taking, they are held fully accountable, they utilise the differential talents of their members, they are given the time and resources needed to make complex decisions and they have the power to make decisions stick. At several points in the book, differences between work groups and teams are highlighted. In the latter, members are selected for inclusion, differentiation is encouraged, flexibility is essential and before play begins the team is aware of the larger strategic issues.

More importantly, teams will continuously review their process and skills and lateral movements between teams will be common. In the most radical section of the book, Belbin strongly recommends a vigorous internal labour market within organisations where salaries and careers are built on the capacity of individuals to secure employment within teams. Continuous assessment and diagnoses will be aided by developments in information technology, not least Interplace, a human resource management system developed by Belbin.

In the final section of the book, Belbin notes that teamworking and decentralisation are matters of organisational style, but the manner in which tasks, processes and teams are organised is crucial for successful organisational development. He suggests that there are some hybrid forms of organisation which combine aspects of teamwork and hierarchy but recommends that teams, which overlap on occasions, should be linked together in an upwardly spiralling helix. Teams are differentiated, they seek the most able staff for their needs, there is regular movement between them and the upward spiral meets some of the concerns about maintaining an overall sense of direction within the interacting teams. In this manner, strategic leadership, complex problem solving, communication and interaction, and a spirit of co‐operation can be achieved. It may be too much to suggest that “social donation” will emerge, but the other processes should ensure success in a dynamic and complex world.

I highly recommend this book to marketers. Marketers seek viable opportunities for businesses and in the current environment it is unlikely that hierarchical organisations will have the flexibility and responsiveness to identify them. An adaptable, problem solving mind‐set is needed for this task and it is more likely to develop within team based organisations. In addition, the pace of change is such that exciting opportunities may be eclipsed by unforeseen changes in technology and customer preference. The organisation of responses to market opportunities will require a flexible, problem solving firm not a hierarchical bureaucratic one.