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A study of decision making in four complex organizations Harvey, Edward Franklin Burns 1964

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A STUDY OF DECISION MAKING"  IN FOUR COMPLEX ORGANIZATIONS by EDWARD FRANKLIN BURNS HARVEY B.A., The U n i v e r s i t y o f B r i t i s h Columbia,  1963  A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n the Department of Anthropology and S o c i o l o g y  We accept t h i s required  t h e s i s as conforming to the  standard  THE UNIVERSITY OF BRITISH COLUMBIA April,  1964  In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make i t freely available for reference and study*  I further agree that per-  mission for extensive copying of this thesis for scholarly purposes may be granted by the Head of my Department or by his representatives. It is understood that,copying or publication of this thesis for financial gain shall not be allowed without my written permission*  Department of  <3 do  L O C\y  The University of British Columbia, Vancouver 8, Canada  ABSTRACT A model of organizational decision making i s developed i n terms of which c e r t a i n components of the process - formation of goals, search procedures, making of a choice etc. - are conceptualized continuum.  as being arranged sequentially along a temporal  The temporal extensiveness of this continuum i s  seen as l a r g e l y being a function of bargaining processes v i s a-vis components of a given decision by the d i f f e r e n t i a t e d sub-units of an organization.  Research carried out among  four technologically d i f f e r e n t i a t e d organizations  provides  empirical v e r i f i c a t i o n f o r the conceptual model and i l l u s t r a t e s c e r t a i n l i m i t a t i o n s to organizational r a t i o n a l i t y and the role of organizational p o l i t i c s i n decision making.  ACOOWLEDGEMENTS To Dr. Martin Meissner, f o r the help which enabled a beginning i n t e r e s t i n organizations to grow. To Dr. Kaspar D. Uaegele, f o r the opportunity to discuss i n seminar some of the ideas contained i n t h i s report. To the I n s t i t u t e of I n d u s t r i a l Relations at the University of B r i t i s h Columbia, and i t s d i r e c t o r , f o r the f i n a n c i a l support which made possible t h i s research. To my wife, Lorna, f o r typing, l e t t e r i n g and much encouragement. To the members of the organizations studied, f o r making available t h e i r time and f i l e s .  generously  TABLE  OP  CONTENTS page  ABSTRACT  i  ACKNOWLEDGEMENTS LIST OP TABLES LIST OP FIGURES  i i iv v  CHAPTER 1 A General Conceptual Scheme For the Study of Organizational Decision Making Processes  1  CHAPTER 2 Case 1: The Elton Drug Store Chain  19  CHAPTER 3 Case 2: The Northlands F i s h Cannery  43  CHAPTER 4 Case 3? The Gresham Cement Company  64  CHAPTER 5 Case 4: The "X" University Case  81  CHAPTER 6 A Study of Decision Making Processes i n Four Complex Organizations: Theoretical Implications and Conclusions  104  LITERATURE CITED  110  LIST  OF  TABLES  Table  page CHAPTER 2  1.  Number of Decisions  36  2.  D i f f i c u l t y of Decisions  37  3.  Time of Decisions  38  1. 2. 3.  CHAPTER 5 Frequency of Attendance at Television and Live Lectures Preferences f o r Live and Television Lectures  995 96  Response to the P o s s i b i l i t y of T e l e v i s i o n Being Offered i n Other Courses  97  4.  Level of Attention  98  5.  A c t i v i t y Other Than Listening to Lecturer  99  LIST  OP  FIGURES  Figure  page  1:1  A Conceptual Model of Decision Making  17  3:1  Plan of Weston Community  51  4:1  Layout of Gresham Cement Company Depots  66  4:2  The Gresham Organization Before the E l g i n Report  69  4:3  The Gresham Organization A f t e r the E l g i n Report  72  5:1  Television Layout (September 16, 1963)  931  5:2  Television Layout (September 30, 1963)  91  C H A P T E R .,1 A General Conceptual Scheme For the Study of Organizational Decision Making Processes  z. I t i s the purpose o f t h i s c h a p t e r to p r e s e n t the g e n e r a l c o n c e p t u a l scheme which w i l l i n f o r m the subsequent a n a l y s i s o f the o r g a n i z a t i o n s c o n s i d e r e d i n t h i s s t u d y .  The  g e n e r a l aim o f the r e s e a r c h p r e s e n t e d here has been to  generate  t h e o r y c o n c e r n i n g the d e c i s i o n making p r o c e s s e s o f o r g a n i z a t i o n s . C e r t a i n s p e c i f i a b l e methods have attended t h i s F i r s t l y , i t was toward  d e c i d e d t h a t the r e s e a r c h would be  aim.  directed  t h o s e d e c i s i o n s i n an o r g a n i z a t i o n which are c o n s i d e r e d  to be "key" o r n o n - r o u t i n e d e c i s i o n s .  Secondly, an attempt  has  been made t o p r e s e n t , wherever p o s s i b l e , a p r o c e s s o r i e n t e d account o f the d e c i s i o n s s t u d i e d .  Put another way,  the r e s e a r c h  has been aimed a t d e p i c t i n g i n d e t a i l the a c t u a l b e h a v i o u r  of  the p a r t i e s to the d e c i s i o n s . F i n a l l y , t h e g e n e r a l methods employed i n t h i s c o n n e c t i o n have been those o f p e r s o n a l o b s e r v a t i o n , p e r s o n a l i n t e r v i e w s wi-th the p a r t i e s to the d e c i s i o n s , i n p a r t i c u l a r making use o f r e s p o n d e n t s ' memories, and, wherever p o s s i b l e , the v e r i f i c a t i o n o f such d a t a t h r o u g h the use o f o r g a n i z a t i o n a l r e c o r d s and documents.  I n the d i s c u s s i o n o f the  i n d i v i d u a l c a s e s , I s h a l l r e p e a t the s p e c i f i c methods used. Having p r e s e n t e d some g e n e r a l background I s h a l l next d e f i n e the s p e c i f i c aims o f the r e s e a r c h .  These aims r e l a t e  to the a n a l y t i c d i s t i n c t i o n and e m p i r i c a l v e r i f i c a t i o n o f major dimensions  o f d e c i s i o n making p r o c e s s e s i n o r g a n i z a t i o n s .  I s h a l l h e n c e f o r t h r e f e r to these two major f a c t o r s as the t e m p o r a l d i m e n s i o n and the p o l i t i c a l d i m e n s i o n . dimensions  two  These two  and, i n p a r t i c u l a r , the p a t t e r n s o f i n t e r a c t i o n  3.  between them w i l l be i n l a r g e p a r t the b a s i s f o r the theor e t i c a l p r o p o s i t i o n s u l t i m a t e l y o f f e r e d here. D e f i n i t i o n o f a Dimension: The Temporal Dimension S e v e r a l s t u d i e s o f o r g a n i z a t i o n a l d e c i s i o n making have noted that the a c t u a l time s c a l e o f most key o r g a n i z a t i o n a l d e c i s i o n s i s very much l o n g e r than the f o r m a l i s t i c a n a l y s i s 1 of such d e c i s i o n making processes would i n d i c a t e . consider  L e t us now  some examples from the l i t e r a t u r e which exemplify  this  concept o f the temporal dimension. 2 1)  In 1956, Cyert, Simon and Trow reported  o f a d e c i s i o n to i n s t a l l e l e c t r o n i c data p r o c e s s i n g in  the h i s t o r y equipment  a medium s i z e d manufacturing and s e l l i n g c o r p o r a t i o n . A l -  though a very good case e x i s t e d f o r the i n s t a l l a t i o n o f t h i s equipment, p r a c t i c a l l y f o u r years elapsed  before  a definite  d e c i s i o n was reached. 3 2) , I n 1958 Cyert, D i l l  and March reported  another case  h i s t o r y i n v o l v i n g a d e c i s i o n to r e p l a c e hazardous overhead cranes in  a heavy manufacturing c o r p o r a t i o n with m a g n e t i c a l l y  cranes.  controlled  I n t h i s case, two years o f i n v e s t i g a t i o n and n e g o t i a t i o n  t r a n s p i r e d before  a d e f i n i t e proposal  to r e p l a c e the cranes  emerged.  The p r o p o s a l was, i n f a c t , u l t i m a t e l y turned down. 1 I r e f e r here to many economic t h e o r i e s o f d e c i s i o n making which have tended to i g n o r e o r overlook the many b e h a v i o r a l aspects o f d e c i s i o n making i n o r g a n i z a t i o n s , i n p a r t i c u l a r , elements of the i n f o r m a l o r n o n - r a t i o n a l . 2 R.M. Cyert, H.A. Simon, and D.B. Trow, "Observation o f a Business D e c i s i o n " , J o u r n a l o f Business, XXIX(6ctober 1956)pp 237-48 3 R.M. Cyert, w.R. D i l l and J.G. March, "The Role o f E x p e c t a t i o n s i n Business D e c i s i o n Making", A d m i n i s t r a t i v e Science Q u a r t e r l y , V o l . I l l , (December 1958), pp. 307-40.  3)  E l l i o t Jacques, i n his well-known study of the Glacier 4  Metal Company, made numerous recommendations i n the areas of general philosophy and s p e c i f i c p o l i c i e s f o r that company.  Some  eight years l a t e r (i960), W. Brown, Glacier s chief executive 5 |!  o f f i c e r reported on the processes by which Jacques ' recommendations 1  had been gradually examined and put into action.  A comparison  of these two documents gives a p a r t i c u l a r l y good example of the temporal dimension as i t operates i n organizational decision making processes. 4)  The l a s t example I . s h a l l present i n connection with 6  t h i s discussion of the temporal dimension i s Chamberlain's  account  of the telephone company's decision r e l a t i v e to a p o l i c y f o r dealing with employee transfers within the company.  The problems  associated with i n t e r n a l transfers had been a matter of company concern since 1926 although active policy reformulation did not begin u n t i l 1943.  Another two years elapsed before the reformu-  lated p o l i c y became operational. The question now arises as to whether i t i s simply the nature of key decisional processes to take a long time or i f the temporal dimension i s the variable and manifest expression of other forces operational i n organizational decision making 4 E l l i o t t Jaques, The Changing Culture of a Factory, New York, Dryden Press, 1952"! 5 W. Brown, Exploration i n Management, New York, John Wiley and Sons, I960. 6 N. Chamberlain, Management i n Motion, New Haven, Labor and Management Center, Yale University, 1950.  5. processes.  The view T s h a l l take here i s t h a t w h i l e c e r t a i n  t e c h n i c a l contingencies may  (such.a.s simply  gathering  information)  somewhat i n f l u e n c e the l e n g t h of d e c i s i o n making  the l e n g t h o f such processes  processes,  i s much more s t r o n g l y i n f l u e n c e d  by the o p e r a t i o n of another dimension - the p o l i t i c a l  dimension.  D e f i n i t i o n o f a Dimension; The P o l i t i c a l Dimension As i n the case o f the temporal dimension, a number o f s t u d i e s o f o r g a n i z a t i o n a l d e c i s i o n making processes t h a t i s i t the nature  have observed  o f o r g a n i z a t i o n s to embody d i f f e r e n t i a l  p o l i t i c a l i n t e r e s t s and  t h a t these i n t u r n i n f l u e n c e the  o f d e c i s i o n making processes  i n organizations.  character  By drawing upon  a number of examples from the l i t e r a t u r e I s h a l l attempt to d e f i n e the sense i n which the term " p o l i t i c a l '  1  i s being used here and  the  i m p l i c a t i o n s t h a t i t holds f o r d e c i s i o n making. l)  Tom  Burns has  expanded on the n o t i o n of c o r p o r a t i o n  p o l i t i c s i n the sense I employ i t .  To exemplify  this  conception  o f formal o r g a n i z a t i o n s as p o l i t i c a l systems i n t h e i r own and  right  to i n d i c a t e the p o s s i b i l i t i e s o f p o l i t i c a l a c t i o n w i t h i n t h e i r  spheres, I s h a l l quote p a r t o f the a b s t r a c t to a r e c e n t paper o f 7 Burns . 1  While the c o r p o a t i o n i s h a r d l y a microcosm o f the s t a t e , study of the i n t e r n a l p o l i t i c s o f u n i v e r s i t i e s and b u s i n e s s concerns may develop i n s i g h t s c o n t r i b u t i n g to the understanding of p o l i t i c a l a c t i o n i n general.  ,7; Tom Burns, " M i c r o p o l i t i c s : Mechanisms of I n s t i t u t i o n a l Change", A d m i n i s t r a t i v e Science Q u a r t e r l y , V o l . VI, 1961-62, pp 257-281.  C o r p o r a t i o n s are c o - o p e r a t i v e systems assembled out o f the u s a b l e a t t r i b u t e s of people. They are a l s o s o c i a l systems w i t h i n which people compete f o r advancement; i n so doing they may make use o f o t h e r s . Behavior i s i d e n t i f i e d as p o l i t i c a l when o t h e r s are made use o f as r e s o u r c e s i n c o m p e t i t i v e s i t u a t i o n s . M a t e r i a l , or extra-human, r e s o u r c e s are a l s o s o c i a l l y organizued. Additional r e s o u r c e s , r e s u l t i n g from i n n o v a t i o n or new types of p e r s o n a l commitment, a l t e r the p r e v a i l i n g e q u i l i b r i u m and e i t h e r i n s t i g a t e or r e l e a s e p o l i t i c a l a c t i o n s . Such a c t i o n i s a mechanism of s o c i a l change.8 9 2 ) In h i s study o f Standard Motors, a n o t a b l e account of the p o l i t i c a l  elements r e l a t i v e to o r g a n i -  z a t i o n a l d e c i s i o n making p r o c e s s e s . to  Melman has provided  In t h i s case, the d e c i s i o n  d e c e n t r a l i z e d e c i s i o n making processes c a l l e d f o r reformu-  l a t i o n s o f the p o l i t i c a l r o l e s and r e s p o n s i b i l i t i e s of both management and workers.  These p o l i t i c a l  i n v o l v e d the passage of time. temporal 3)  Here, the connection between the  and p o l i t i c a l dimensions  Cyert, D i l l  accomodations of course  i s particularly  clear.  and March present another example o f p o l i t i c a l  processes at work i n o r g a n i z a t i o n a l d e c i s i o n making i n t h e i r account o f the search f o r new 10  working q u a r t e r s f o r a department  with a doubtful f u t u r e .  In t h i s case, the more s t r a i g h t f o r w a r d  problem o f l o c a t i n g a new  s i t e was  temporally extended  and  gen-  e r a l l y complicated by p o l i t i c a l maneuvering between the head o f 8  Ibid.,  p.257.  9 Melman, S., D e c i s i o n Making and P r o d u c t i v i t y , B a s i l Black-well, 1958. 10  R.M.  C y e r t , W.R.  Dill  Oxford,  and J.G. March, l o c . c i t .  7  the department i n q u e s t i o n , who wished to ensure the c o n t i n u i t y o f h i s department,  and e x e c u t i v e s i n o t h e r departments  not w i s h to see the department c o n t i n u e . 1  who  did  The theme o f p o l i t i c a l  competition over scarce o r g a n i z a t i o n a l resources i s c l e a r i n t h i s case. 11  4)  T u r n i n g a g a i n to Chamberlain's  study  here the a u t h o r  g i v e s a d e t a i l e d account o f the o r g a n i z a t i o n a l p o l i t i c s i n v o l v e d i n the employee t r a n s f e r d e c i s i o n .  Once a g a i n , t h i s may  be  seen  as i n f l u e n c i n g t h e t e m p o r a l e x t e n s i v e n e s s o f the d e c i s i o n p r o c e s s . 12  5)  Elsewhere  I have attempted  to demonstrate  a connection  between the p o l i t i c a l d e s i g n s o f c e r t a i n s u p e r v i s o r y employees o f a government water a u t h o r i t y and, i n p a r t i c u l a r , one major d e c i s i o n a l p r o c e s s l e a d i n g to the i n s t a l l a t i o n o f an e l e c t r o n i c b i l l i n g system. q u e s t i o n may  The t e m p o r a l d i m e n s i o n o f the d e c i s i o n i n  be seen, i n t h i s c a s e , as a d i r e c t r e f l e c t i o n o f  " s t e e r i n g " o r impeding a c t s on the p a r t o f d i f f e r e n t members o f the o r g a n i z a t i o n . Having s e t f o r w a r d these two dimensions  and h a v i n g sug-  g e s t e d the p o s s i b i l i t i e s o f i n t e r a c t i o n between them, I s h a l l  now  a m p l i f y the more g e n e r a l c o n c e p t u a l framework i n which they o c c u r . F i r s t l y , i t w i l l be n e c e s s a r y to a r r i v e a t an u n d e r s t a n d i n g o f what the term " o r g a n i z a t i o n " means i n the c o n t e x t o f t h i s s t u d y . 11  N. Chamberlain, l o c . c i t .  12 E. Harvey, "Some I m p l i c a t i o n s o f T e c h n i c a l and Superv i s o r y Change i n a Government Water A u t h o r i t y " , U n p u b l i s h e d paper, 1963.  8. D e f i n i n g the Term " O r g a n i z a t i o n " The d e f i n i t i o n o f o r g a n i z a t i o n s which informs  the  research  presented  here d e r i v e s from a conceptual scheme developed by 13 James G. March and o t h e r s . March has expressed the c e n t r a l assumptions o f t h i s scheme i n the f o l l o w i n g  way.  B a s i c a l l y , we assume t h a t a business f i r m i s a p o l i t i c a l c o a l i t i o n and the e x e c u t i v e i n the f i r m i s a p o l i t i c a l broker. The composition of the f i r m i s not g i v e n ; i t i s negotiated. The goals of the f i r m are not g i v e n ; they are bargained. 14 By  t h i s d e f i n i t i o n , then, one may  see the o r g a n i z a t i o n as a  coming t o g e t h e r of d i f f e r e n t i n t e r e s t s , a " p o l i t i c a l " of sub-units i n the sense t h a t a p a r t i c u l a r i n t e r e s t  liason (theoretically  at l e a s t ) remains i n the o r g a n i z a t i o n o n l y as l o n g as there i s "something i n i t f o r them". course  Such d i f f e r e n t i a l i n t e r e s t s are o f  a m p l i f i e d by t e c h n i c a l s p e c i a l i z a t i o n and f u n c t i o n a l  d i f f e r e n t i a t i o n w i t h i n the o r g a n i z a t i o n .  A g a i n s t t h i s background,  the p o l i t i c a l aspects o f o r g a n i z a t i o n a l d e c i s i o n making r e f e r r e d to e a r l i e r become c l e a r e r . Given t h i s s i t u a t i o n of i m p l i c i t o r e x p l i c i t the q u e s t i o n a r i s e s of how d u c t i o n o f o t h e r concepts Firstly, two  do o r g a n i z a t i o n s endure. w i l l f a c i l i t a t e this  there i s the n o t i o n o f b a r g a i n i n g .  levels.  There i s , f i r s t of a l l ,  conflict, The  intro-  explanation.  This may  be seen at  the g e n e r a l l e v e l of  13 James G. March, "The Business Firm as a P o l i t i c a l C o a l i t i o n " , J o u r n a l of P o l i t i c s , V o l . 24, 1962, pp.662-678. See a l s o J.G. March and H.A. Simon, O r g a n i z a t i o n s , lew York, Wiley, 1958, and R.M. Cyert and James G". March, A B e h a v i o r a l Theory o f the Firm, P r e n t i c e H a l l , New J e r s e y , 1963. 14  I b i d . , p.672  3. "a b a r g a i n s t r u c k " ( i . e . the g e n e r a l agreement t h a t c e r t a i n members o f the o r g a n i z a t i o n w i l l be p r o d u c t i o n w o r k e r s ,  certain  o t h e r s e x e c u t i v e s and so' on) which s e r v e s to mark out the g e n e r a l dimensions o f the c o a l i t i o n and to g i v e a measure o f to the e n t e r p r i s e .  T h i s may  stability  be seen as k i n to the n o t i o n o f a  g e n e r a l p o l i c y o r c h a r t e r i n an o r g a n i z a t i o n ; many members o f the o r g a n i z a t i o n may p o l i c y o r may  have w i d e l y d i f f e r e n t i n t e r p r e t a t i o n s o f the  not even know what i t i s . I t s mere p r e s e n c e ,  a c t s as a b i n d i n g f o r c e .  however,  The p r i m a r y b a r g a i n i n g r e f e r r e d t o ,  t h e n , s e r v e s to e s t a b l i s h a measure o f o r g a n i z a t i o n a l s t a b i l i t y and  a l s o p r o v i d e s a base f o r the secondary b a r g a i n i n g , the " j o c k e y i n g  to improve one's p o s i t i o n " w i t h i n the o r g a n i z a t i o n . Thus the s u b - u n i t s o f an o r g a n i z a t i o n a l c o a l i t i o n make d i f f e r e n t i a l c l a i m s to s c a r c e o r g a n i z a t i o n a l r e s o u r c e s . dimensions o f the c l a i m s are a r e f l e c t i o n o f the  The  sub-unit's  i m p o r t a n c e to the o r g a n i z a t i o n . (Thus, f o r example, the  engineering  d i v i s i o n o f an o r g a n i z a t i o n i s l i k e l y to have a g r e a t e r c l a i m on the o r g a n i z a t i o n ' s r e s o u r c e s t h a n , say, the t y p i n g p o o l . ) suceed, the c o a l i t i o n must b a l a n c e the p r o c e s s e s o f b a r g a i n i n g .  To  claims against resources  through  The b a r g a i n i n g p r o c e s s d e f i n e s the  dimensions o f a " s i d e payment" (an a l l o c a t i o n o f o r g a n i z a t i o n a l r e s o u r c e s by one  s u b - u n i t o f the o r g a n i z a t i o n to another  w h i c h the c o a l i t i o n can bear and which the s u b - u n i t w i l l The  sub-unit) accept.  " s i d e payments" assume v a r i o u s forms, such as money, s e r v i c e s ,  the a l l o c a t i o n o f a u t h o r i t y , equipment and so The  on.  c o a l i t i o n i s f e a s i b l e because n o t a l l o f i t s members  are s i m u l t a n e o u s l y engaged i n making demands on the  coalition's  /o. scarce resources.  T h i s i s f u r t h e r guaranteed by t h e o r g a n i -  z a t i o n a l c o a l i t i o n , however, through, f o r m a l  arrangements which  s p e c i f y s e q u e n t i a l a t t e n t i o n t o t h e c l a i m s o f t h e d i f f e r e n t subunits.  The b a s i s o f such a sequence would most p r o b a b l y be t h e  f u n c t i o n a l s i g n i f i c a n c e o f the sub-unit  t o t h e o r g a n i z a t i o n as  a whole o r perhaps t h e degree o f a u t h o r i t y w i t h i n t h e o r g a n i z a t i o n p o s s e s s e d by t h e s u b - u n i t .  Arrangements o f jthis type mean t h a t  the t o t a l c l a i m s o f t h e s u b - u n i t s ,  a t any g i v e n t i m e ,  s u f f i c i e n t t o exhaust t o t a l l y o r g a n i z a t i o n a l r e s o u r c e s same p o i n t i n t i m e . organization's  are n o t a t the  The d i f f e r e n c e between t h e two i s t h e  "slack" o r resource  pool.  I t s presence may be  viewed as a c r i t i c a l c o n d i t i o n f o r t h e c o n t i n u a t i o n o f t h e organization. To b r i e f l y summarize, t h e n , an o r g a n i z a t i o n has been d e f i n e d as a c o a l i t i o n o f s u b - u n i t s w i t h d i f f e r e n t i a l i n t e r e s t s .  It is  the i n v o l v e m e n t o f t h e s e d i f f e r e n t u n i t s i n t h e d e c i s i o n making p r o c e s s e s o f t h e o r g a n i z a t i o n which r e f l e c t s t h e p o l i t i c a l dimens i o n r e f e r r e d to e a r l i e r .  One f i n a l a s p e c t o f t h i s  definition  of t h e o r g a n i z a t i o n as a c o a l i t i o n which has r e l e v a n c e s t u d y should be mentioned.  i n this  That i s , t h e d e f i n i t i o n a l l o w s one t o  a v o i d some o f t h e d i f f i c u l t i e s i m p l i c i t i n s t a t i n g an o r g a n i z a t i o n ' s boundaries.  By t h e d e f i n i t i o n p r e s e n t e d h e r e , s u b - u n i t s  are t e c h n i c a l l y o u t s i d e t h e r e a l m o f a s p e c i f i c  which  organization  ( s u c h as t h e l o c a l government i n t h e cannery case t o be d i s c u s s e d below) b u t which may come t o e x e r t s t r o n g i n f l u e n c e on t h e d e c i s i o n making p r o c e s s e s o f t h e o r g a n i z a t i o n may, f o r t h e sake o f a n a l y s i s be viewed as s u b - u n i t s and  o f t h e o r g a n i z a t i o n a t some p o i n t i n time  as t h e r e f o r e i n f l u e n c i n g t h e p o l i t i c a l and t e m p o r a l dimensions  o f d e c i s i o n making i n t h e o r g a n i z a t i o n .  The  Organization The  vacuum.  and  I t s Environment  o r g a n i z a t i o n d e s c r i b e d h e r e does not e x i s t i n a  R a t h e r , i t i s p a r t o f a m i l i e u o f changing economic  c o n d i t i o n s and  competing o r g a n i z a t i o n s .  o r g a n i z a t i o n may d e c l i n i n g and  Thus, f o r example, an ••  f i n d t h a t i t s share o f i t s g i v e n market i s  t h i s w i l l become the s t a r t i n g p o i n t f o r d e c i s i o n  making p r o c e s s e s w i t h i n the. o r g a n i z a t i o n . " l e a r n " from o t h e r o r g a n i z a t i o n s . disseminated,  perceived,  Hew  Organizations  also  i d e a s and methods are  t e s t e d and put i n t o p r a c t i c e .  c a n t changes i n an o r g a n i z a t i o n ' s  environment are c l e a r l y  i m p o r t a n t source o f n o n - r o u t i n e d e c i s i o n a l p r o c e s s e s . same t i m e , however, i t must a l s o be r e c o g n i z e d o f a d e c i s i o n a l p r o c e s s may  Signifi-  At  an the  t h a t the  inception  w e l l r e l a t e to the s p e c i f i c  political  goals of a given o r g a n i z a t i o n a l sub-unit,  a l t h o u g h such g o a l s  are g e n e r a l l y r a t i o n a l i z e d i n terms o f e x t e r n a l c o n d i t i o n s , e x i s t e n t or otherwise.  T h i s i s not to deny t h a t d e c i s i o n a l  p r o c e s s e s emerging from e x t e r n a l c o n d i t i o n s may  also  represent  sub-unit i n t e r e s t s . Organizational  Goals  R e f e r r i n g back to the d i s c u s s i o n o f an o r g a n i z a t i o n as  a  c o a l i t i o n o f d i f f e r e n t i a l i n t e r e s t s , i t c l e a r l y becomes d i f f i c u l t to speak o f g o a l s f o r the o r g a n i z a t i o n as a whole.  Yet  the  d e c i s i o n a l p r o c e s s e s which emerge a l o n g the l i n e s d i s c u s s e d  above  are c e r t a i n l y d i r e c t e d toward some s o r t o f g o a l , however u n c l e a r or l o o s e l y formulated  i t may  be.  I n t h i s connection,  Cyert  and  March  15  have abandoned the o b v i o u s l y q u e s t i o n a b l e n o t i o n that  o r g a n i z a t i o n s have a w e l l d e f i n e d s e t o f goals i n terms o f which they s o l v e a l l t h e i r problems.  Instead,  these authors have  argued t h a t "...the goals o f a business f i r m are a s e r i e s o f more o r l e s s independent c o n s t r a i n t s imposed on the o r g a n i z a t i o n through a process o f b a r g a i n i n g among p o t e n t i a l c o a l i t i o n members and elaborated over time i n response to s h o r t - r u n  pressures  Thus when a problem comes to impinge upon an o r g a n i z a t i o n whether i t s d i r e c t i o n o f c a u s a t i o n i s from the e x t e r n a l e n v i r onment o r from w i t h i n the o r g a n i z a t i o n , the f o r m u l a t i o n o f some s o r t o f g o a l v i s - a - v i s the problem i s the next step i n the d e c i s i o n process  a f t e r p e r c e i v i n g the problem.  ( I would p o i n t  out here that I am concerned with problems which cannot be handled  by the r o u t i n e p o l i c i e s o f the o r g a n i z a t i o n . )  This  process o f p e r c e i v i n g the problem and f o r m u l a t i n g goals i n con*.n e c t i o n with i t has two i m p l i c a t i o n s f o r the e a r l i e r d i s c u s s i o n o f the p o l i t i c a l dimension.  Firstly,  the a c t u a l problem may be  d i f f e r e n t i a l l y p e r c e i v e d by d i f f e r e n t members o r sub-units o f the o r g a n i z a t i o n .  Secondly,  the goals u l t i m a t e l y formulated  may w e l l r e p r e s e n t p a r t i c u l a r i n t e r e s t s w i t h i n the o r g a n i z a t i o n . Another important l e v e l they imply.  aspect o f such goals i s the a s p i r a t i o n  ( I r e f e r here to o r g a n i z a t i o n a l a s p i r a t i o n  l e v e l r a t h e r than the term as i t i s a p p l i e d to i n d i v i d u a l s . )  15 R.M. Cyert, J.G. March, "A B e h a v i o r a l Theory o f O r g a n i z a t i o n a l O b j e c t i v e s " , Modern O r g a n i z a t i o n Theory, ed.' M. H a i r e , New York, Wiley,. 195916 R.M. Cyert and J.G. March, A B e h a v i o r a l Theory o f the Firm, P r e n t i c e H a l l , lew J e r s e y , 1963, p.43.  13.  G e n e r a l l y s p e a k i n g , the l e v e l o f a s p i r a t i o n w i l l be a f u n c t i o n o f the t y p e s o f g o a l s the o r g a n i z a t i o n has had i n the p a s t  and  the success o r f a i l u r e they have e x p e r i e n c e d i n c o n n e c t i o n w i t h them.  The p r a c t i c e s o f o t h e r o r g a n i z a t i o n s c o n s t i t u t e another  i m p o r t a n t i n f l u e n c e ( f o r to some e x t e n t o r g a n i z a t i o n s l e a r n from one a n o t h e r ) i n the g o a l f o r m a t i o n p r o c e s s .  While the emphasis  h e r e has been on the s h o r t - r u n and p o l i t i c a l a s p e c t s o f g o a l f o r m a t i o n , i t s h o u l d a l s o be mentioned t h a t o r g a n i z a t i o n s have, at a high l e v e l of d i f f u s e n e s s , c e r t a i n very general goals r e l a t i n g to such m a t t e r s as p r o d u c t i o n , market share and These v e r y g e n e r a l g o a l s may  sales.  be seen a s - p r o v i d i n g the c o n t e x t  i n w h i c h more s p e c i f i a b l e g o a l s o c c u r . The I n f o r m a t i o n G a t h e r i n g P r o c e s s and Development o f E x p e c t a t i o n s The g o a l f o r m a t i o n p r o c e s s g i v e s o r g a n i z a t i o n a l d e c i s i o n making a g e n e r a l p l a n o f a c t i o n v i s - v i s a g i v e n problem.  The  development o f t h i s g e n e r a l p l a n i n v o l v e s i n v e s t i g a t i n g the f i e l d o f a c t i o n p o s s i b i l i t i e s , i n o t h e r words, the s e a r c h of d e c i s i o n a l processes.  I n v i e w o f what has been s a i d  aspect  concerning  the o r g a n i z a t i o n as a c o a l i t i o n and the n a t u r e o f o r g a n i z a t i o n a l g o a l s , c e r t a i n d i f f i c u l t i e s emerge i n the c l a s s i c a l  theoretical  f o r m u l a t i o n s c o n c e r n i n g o r g a n i z a t i o n a l e x p e c t a t i o n s and  search.  P o r example, the f o l l o w i n g p r o p o s i t i o n s are g e n e r a l l y a s s o c i a t e d w i t h c l a s s i c a l t h e o r e t i c a l approaches: 1) o r g a n i z a t i o n a l s e a r c h i s a complete c o n s i d e r a t i o n o f ..'all p o s s i b i l i t i e s . 2) as a r e s u l t o f t h i s o m n i s c i e n t s e a r c h , the r a t i o n a l l y best a l t e r n a t i v e i s selected.  3) o r g a n i z a t i o n s e n t e r upon d e c i s i o n a l p r o c e s s e s w i t h c l e a r e x p e c t a t i o n s c o n c e r n i n g c o s t s and r e t u r n s . L e t us examine a few d i f f i c u l t i e s w i t h these p r o p o s i t i o n s . f i r s t two p r o p o s i t i o n s r e l a t i n g to the omniscience and  o f the  The search  t h a t the r a t i o n a l l y b e s t a l t e r n a t i v e i s s e l e c t e d d i s r e g a r d  the sheer p h y s i c a l l i m i t a t i o n s on o r g a n i z a t i o n a l i n f o r m a t i o n g a t h e r i n g , t h e y do not c o n s i d e r the p o s s i b i l i t i e s o f  political  m a n i p u l a t i o n o r b i a s i n g w i t h i n o r g a n i z a t i o n s , and f i n a l l y  do  n o t c o n s i d e r the s i g n i f i c a n t r o l e p l a y e d by a l t e r n a t i v e s  which  a r e out l o o k i n g f o r o r g a n i z a t i o n s to adopt them. l a s t p r o p o s i t i o n , the r e s e a r c h p r e s e n t e d  T u r n i n g to the  here w i l l attempt to  demonstrate t h a t o r g a n i z a t i o n a l e x p e c t a t i o n s r e g a r d i n g c o s t s  and  r e t u r n s are c o n s i d e r a b l y more f l e x i b l e t h a n the c l a s s i c a l formul a t i o n suggests. of/and  I s h a l l a l s o attempt to d i s c u s s the o p e r a t i o n  changes i n s e a r c h p r o c e d u r e and the development o f  e x p e c t a t i o n s i n terms o f the p o l i t i c a l d i m e n s i o n o f d e c i s i o n a l processes. E x e c u t i v e Choice and  the R e d e f i n i t i o n o f D e c i s i o n s  The p e r c e p t i o n o f an o r g a n i z a t i o n a l problem, the g o a l f o r m a t i o n p r o c e s s , the g a t h e r i n g o f i n f o r m a t i o n and  formation  o f e x p e c t a t i o n s have been d i s c u s s e d here as elements o f the p o l i t i c a l dimension of o r g a n i z a t i o n a l d e c i s i o n processes. a c h o i c e i s made and act.  the c h o i c e i t s e l f may  be viewed as a p o l i t i c a l  F o r i n the c o n t e x t o f a c h o i c e , the d e c i d i n g o f f i c e r o r  o f f i c e r s have the o p p o r t u n i t y to express remaining may  Ultimately,  a p r e f e r e n c e between the  alternatives or, i n rejecting a l l alternatives,  they  undo a sequence o f p o l i t i c a l events i n f a v o u r o f a d i f f e r e n t  is-.  commitment, t h e i r own.  I t may  "be p o i n t e d out t h a t o r g a n i z a t i o n s  have such mechanisms as g e n e r a l " r u l e s o f the game" r e l a t i v e to such m a t t e r s  as t a k i n g a d e c i s i o n , but h e r e , as i n the case o f  the v e r y g e n e r a l g u i d i n g g o a l s r e f e r r e d to e a r l i e r , such mechanisms e s s e n t i a l l y p r o v i d e o n l y a c o n t e x t i n which more s p e c i f i a b l e (and p o l i t i c a l ) a f f a i r s take p l a c e . F o r the purposes o f t h i s s t u d y , n e i t h e r the dimension,  temporal  the p o l i t i c a l d i m e n s i o n o r t h e i r p a t t e r n s o f i n t e r -  r e l a t i o n end w i t h the emergence o f a c h o i c e by some p a r t y o f a u t h o r i t y i n the o r g a n i z a t i o n .  F o r w h i l e c e r t a i n members o f  an  o r g a n i z a t i o n have the a u t h o r i t y to mak:e d e c i s i o n s , o t h e r members w i t h o u t t h i s a u t h o r i t y do p o s s e s s a c e r t a i n power to r e d e f i n e a d e c i s i o n i n terms o f t h e i r r e s p o n s i v e 17 i n h i s study, o f Standard system, one  behavior.  Thus Melman,  M o t o r s , speaks o f a double d e c i s i o n  system r e l a t e s to management who  may,  f o r example,  s e t p r o d u c t i o n f i g u r e s ; the o t h e r system r e l a t e s to the worker who  may,  f o r example, d e c i d e how much w i l l a c t u a l l y be produced.  I n t h i s c o n n e c t i o n , Melman has observed The d e c i s i o n systems o f the management and o f the workers have been found to <be. o p e r a t i v e as s e p a r a t e , d i s t i n c t , u n i l a t e r a l systems, each p e r f o r m i n g the f u n c t i o n o f d e c i s i o n making on p r o d u c t i o n . To be s u r e , the d e c i s i o n system o f the employer has been by f a r the more i m p o r t a n t one i n the scope o f i t s e f f e c t on p r o d u c t i o n . I n the o p e r a t i o n o f the i n d u s t r i a l e n t e r p r i s e , however, the worker d e c i s i o n system has a l r e a d y had c l e a r and t r a c e a b l e e f f e c t s on the d e c i s i o n system o f the employer.18  17  Melman, l o c . c i t .  18  I b i d . , p.  19  T h i s suggests a n o t h e r p o i n t , f o r where a d e c i s i o n a l  choice  has been made t h e way i n w h i c h i t i s p u t i n t o e f f e c t may depend on t h e way i t i s r e c e i v e d by those who posses t h e power o f t h i s counter-decision  system.  Thus t h e p o l i t i c s o f d e c i s i o n p r o c e s s e s  do n o t come t o an end w i t h e x e c u t i v e  choice.  F i g u r e 1:1 a t t e m p t s t o summarize t h e g e n e r a l  conceptual  framework p r e s e n t e d h e r e and s e r v e s as a background t o t h e ensuing p r e s e n t a t i o n  o f the research  o r g a n i z a t i o n has been d e f i n e d  findings.  and d i s c u s s e d  F i r s t l y , the  as a c o a l i t i o n  p a r t i c u l a r l y i n s o f a r as t h i s r e l a t e s t o t h e p o l i t i c s o f d e c i s i o n making w i t h i n o r g a n i z a t i o n s . has been r e c o g n i z e d  The o r g a n i z a t i o n ' s  as a p o s s i b l e source o f problems toward which  o r g a n i z a t i o n a l d e c i s i o n making may be d i r e c t e d . recognized,  environment  I t has a l s o been  however, t h a t t h e impetus f o r an o r g a n i z a t i o n a l  d e c i s i o n may come from w i t h i n the o r g a n i z a t i o n a l t h o u g h be r a t i o n a l i z e d i n terms o f e x t e r n a l f a c t o r s . processes, executive  choice  Goals, search  and p r o c e s s e s o f r e d e f i n i t i o n have  been p u t f o r w a r d as i n d e p e n d e n t l y d e f i n e d b u t i n t e r r e l a t e d o f o r g a n i z a t i o n a l d e c i s i o n making.  aspects  Any one o f these a s p e c t s  o r a c o m b i n a t i o n o f them, i t ; i s s u g g e s t e d , may s e r v e as "arenas" f o r t h e p o l i t i c s o f o r g a n i z a t i o n a l d e c i s i o n making. dimension i s simply  The p o l i t i c a l  a c o n c e p t u a l i z a t i o n o f the i n t e r r e l a t e d n e s s  o f t h e s e components o r a s p e c t s o f o r g a n i z a t i o n a l d e c i s i o n making. The  temporal dimension  measures t h e a c t u a l amount o f time t a k e n  between g i v e n p o i n t s i n t h e course o f an o r g a n i z a t i o n a l process.  decision  As suggested e a r l i e r , t h e t e m p o r a l e x t e n s i v e n e s s  /8. o f a g i v e n d e c i s i o n p r o c e s s may  well reflect  maneuvering w i t h i n the o r g a n i z a t i o n .  political  I n t h i s sense, t a k i n g  i n t o account the temporal d i m e n s i o n o f an o r g a n i z a t i o n a l may  " p o i n t the way"  decision  to p o l i t i c a l a s p e c t s o f d e c i s i o n making  w h i c h are not p a r t i c u l a r l y v i s i b l e . ( F o r example, the e x t e n s i v e n e s s o f the g o a l f o r m a t i o n  process reported  temporal on i n  c o n n e c t i o n w i t h the Gresham Cement Company case would a t l e a s t suggest the p o s s i b i l i t y of p o l i t i c a l f a c t o r s b e i n g w i t h i n the o r g a n i z a t i o n . ) w i t h i n o r g a n i z a t i o n s may  operative  A l s o , the n o t i o n o f time as a r e s o u r c e i n f l u e n c e events on the  political  d i m e n s i o n o f d e c i s i o n making. ( F o r example, the s c a r c e  temporal  r e s o u r c e s a v a i l a b l e to the N o r t h l a n d s Cannery d u r i n g the p r o c e s s e s a s p e c t of the ease r e p o r t e d  below d i r e c t l y  search  influence  the p o l i t i c a l d i m e n s i o n of the; d e c i s i o n i n q u e s t i o n . )  Two  f i n a l p o i n t s should be noted i n c o n n e c t i o n w i t h the diagram. Firstly,  the i n d i c a t e d " b e g i n n i n g " and  p r o c e s s must be r e c o g n i z e d purposes o f a n a l y s i s .  "end"  of a given  as a r b i t r a r y d i s t i n c t i o n s f o r  decision the  In r e a l i t y , o r g a n i z a t i o n a l d e c i s i o n processes  are most p r o b a b l y always c i r c u l a r .  Put a n o t h e r way,  the p r o c e s s  o f r e d e f i n i t i o n never ends but r a t h e r "feeds back" i n t o o r g a n i z a t i o n i n the form o f new  the  problems w h i c h r e q u i r e a t t e n t i o n .  F i n a l l y , as suggested e a r l i e r on page 9 » the b o u n d a r i e s o f o r g a n i z a t i o n are a l s o somewhat a r b i t r a r y . d i s t i n c t i o n w i l l l a t e r enable one  Recognizing t h i s  to i n t r o d u c e ,  of a n a l y s i s , e n t i t i e s t e c h n i c a l l y outside  f o r the purposes  the o r g a n i z a t i o n  w h i c h n o n e t h e l e s s have s i g n i f i c a n t i m p l i c a t i o n s f o r the and  the  but  temporal  p o l i t i c a l dimensions of o r g a n i z a t i o n a l d e c i s i o n making.  C H A P T E R  2  Case 1; The Elton Drug Store Chain  Description of the Organization i n Question The organization with which this case i s concerned i s The E l t o n Chain Drugstores Limited.  As w i l l he explained i n  the discussion of the s p e c i f i c decision process I am concerned with i n this case, the number of drug stores incorporated i n t h i s chain has fluctuated over time.  At one point  however, the number of stores was over 60 and, during the l a s t twenty years, the E l t o n chain has been regarded by i t s competitors as the most powerful and prosperous operation i n Province X. The Decision Process i n Question and I t s Approximate Time Span Put i n the simplest form, the decision process I am concerned with i s the development of a new policy within the E l t o n organization whereby the number of stores i n the chain was decreased while the f l o o r area of the remaining stores was doubled.  The basic aims of t h i s new policy were to reduce  operating overheads  and to develop a better method of exploi-  ting the market ( i n t h i s case, s e l f - s e r v i c e ) thereby increasing profits. Prom the time the new p o l i c y was f i r s t proposed to the time i t was f i r s t put into e f f e c t as operational p o l i c y , over four years elapsed. The Actors The following persons or groups w i l l be mentioned i n the discussion to follow.  I t may be h e l p f u l to state t h e i r  names and positions before proceeding further.  John Elton, r e t i r e d president of the Elton Chain Roger Elton, his son, now  president of the chain  K a r l Graff, former manager, now Elton's " r i g h t hand  vice-president;  Roger  man".  James Williams, former vice president; resigned,  1955.  The Pharmacist-managers and pharmacist employees of the E l t o n Chain. Specific Methods 1)  Personal interviews with Roger Elton, Karl Graff and a sample of 30 pharmacist-managers and pharmacistemployees of the chain.  2)  Use of respondent's memories i n these interviews.  3)  V e r i f i c a t i o n of t h i s material through analysis of documents and  4)  files.  Data r e s u l t i n g from a questionnaire directed to a l l pharmacists i n Province  5)  X.  In order to make aspects of the p a r t i c u l a r decision process I am concerned with more understandable, T s h a l l present a c e r t a i n amount of h i s t o r i c a l background .  Defining the Problem and i t s Background As proposed i n Chapter One,  non-programmed decisions i n  complex organizations generally develop i n response to some sort of change i n the organization's environment or some definable problem which has come to impinge upon the organization.  To better describe the p a r t i c u l a r problem which came  to concern the Elton Chain, I s h a l l b r i e f l y r e f e r to some of the relevant background. From i t s inception i n  to 1952, the Elton Chain was  i n a constant state of growth and expansion. chain owned and operated over 60 stores).  (In 1952, the  This s i t u a t i o n  derived from John Elton's p o l i c y of immediate re-investment of p r o f i t s i n the construction of new stores and, secondly, taking over already operating independent ever the opportunity presented  r e t a i l stores when-  itself.  During the three years or so leading up to 1952, i n d i c a tions began to develop that increased overheads and competition were reducing the company's p r o f i t s and market share.  In  p a r t i c u l a r , the expenses involved i n maintaining many of the company's urban s i t e s were no longer f u l l y j u s t i f i e d since the amount of business such stores were doing had f a l l e n o f f during the l a s t three years i n a very gradual way. Formation of Relevant Goals In the early part of 1952, meetings between John Elton, president of the chain, h i s son Roger, f i r s t vice president, James Williams, second vice president and K a r l Graff, general manager, attempted  to reach some d i f i n i t i o n of the problem and  from this develop remedial p o l i c y .  I t was at one of the f i r s t  of these meetings that Graff put forward the p o s s i b i l i t y of t r y i n g out a new type of store, one with at l e a s t double the f l o o r space of the present basic design and an emphasis on s<3lf-service displays and f a c i l i t i e s .  Graff, during recent  IS.  t r i p s i n the United States, had noted the apparently successf u l development of such stores i n that country.  Roger E l t o n  expressed considerable i n t e r e s t i n Graff's proposal at this time. John Elton, however, was convinced that the p o l i c y which had guided the E l t o n Chain during i t s history of successful growth was  s t i l l adequate.  He suggested  that the present  d i f f i c u l t i e s rested not i n the number or the design of the Elton stores, but rather i n the way spoke of the need f o r "a new  they were being operated.  He  s p i r i t of competition (vis-a-vis  other stores) among the employees of the E l t o n Chain" and a need f o r extensive personnel re-organization i n several stores which had not been doing well i n recent months. James Williams was i n agreement with this proposal and offered (at t h i s meeting and subsequent meetings) a number of s p e c i f i c suggestions as to how In p a r t i c u l a r , he suggested  such plans might be carried out.  that the managers of Elton Chain  stores be required to submit monthly reports i n which they would express t h e i r opinions as to why l i n e s had sold (or not sold) i n the way  c e r t a i n basic market they had.  He was also  i n favour of much closer executive contact with actual store operations including, i n t h i s connection, spot inspection by management of d i f f e r e n t stores i n the chain. Through the balance of 1952  and into the middle of 1953  various personnel changes were made i n several stores belonging to the chain. were the replacement  Examples of the type of action involved of "non-productive" managers, an incen-  tive scheme to promote competition between managers, and the  t r a n s f e r r i n g of managers from store to store.  According  to a f i n a n c i a l analysis made toward the end of 1953, the market share and p r o f i t s of the Elton Chain had  both slightly  increased over the two previous reports, but proportionate to r i s i n g costs, were not as high as they had been i n the past. In early 1954, Roger Elton succeeded president of the Chain.  John Elton as  At t h i s time, James Williams became  f i r s t vice president, while Karl Graff became second vice president.  The post of general manager previously held by  K a r l Graff was closed at this time. v i s - a - v i s major issues was now men.  Decision making power  concentrated with these three  As w i l l be seen, i t was this new  arrangement of decision  making power which expedited the formation of the organizational goals that gave d i r e c t i o n to the decisional process being considered here. A short while after these personnel changes, i t became apparent that the results derived from the f i n a n c i a l analysis of l a t e 1953 had not been i n d i c a t i v e of a l a s t i n g trend.  The  organization was once more faced with the problems of decreasing p r o f i t s and market share.  A serious d i v i s i o n of  opinion over what to do about these d i f f i c u l t i e s developed at t h i s time between James Williams and Karl Graff.  Williams,  who had been associated with the Elton Chain f o r over 18 years, desired that the existing p o l i c i e s , largely developed by John Elton and himself, should be continued with only minor r e v i s i o n s .  is: Graff, who  had been with the Elton Chain f o r less than 6 years  and had gained most of his experience from operations i n the United States, recommended that the e x i s t i n g p o l i c i e s be suspended and that an e n t i r e l y new embarked upon.  type of store operation be  Graff presented a report to Roger Elton at  t h i s time (late 1954)  describing i n considerable d e t a i l the  store designs, merchandise l i n e s , and other changes he had i n mind. The Graff report contained many observations  and recom-  mendations, the following of which are the most pertinent to this discussion: 1)  that many urban s i t e s are becoming increasingly  unprofitable as a r e s u l t of increased rentals, repairs and s a l a r i e s f o r personnel. 2)  that t h i s e x i s t i n g loss of p r o f i t i s being augmented  byaa change i n buyer habits.  In short, people are moving to  the suburbs and consequently urban stores are l o s i n g patrons. Secondly, buyers want greater d i v e r s i f i c a t i o n i n a single store (along supermarket l i n e s ) .  For example, they w i l l find  i t convenient (and therefore purchase more from Elton stores) i f they can also obtain magazines, t e l e v i s i o n tubes, toys, cameras and confectionery while at the drug store. 3)  therefore the Elton Chain must follow t h i s "move to  the suburbs" and change i n buying habits by building highly d i v e r s i f i e d stores i n the suburbs. 4)  i n order to carry maximum merchandise with minimum  personnel cost, these "new  type" stores w i l l stress s e l f - s e r v i c e .  ZQ.  To t h i s end, much greater f l o o r space (for display etc.)  purposes  w i l l be required. 5)  greater emphasis must be placed on the strategic  placing of a few large stores as opposed to the random placing of many small ones.  To t h i s end, the number of  stores i n the chain should be reduced. 6)  f i n a l l y , the Elton policy of buying out and taking  over independent  r e t a i l s i t e s from time to time (largely as  a means of eliminating competition) has certain disadvantages i n that many of the stores taken over w i l l sonn become unp r o f i t a b l e as the changes i n l i v i n g and buying habits become more pronounced.  In t h i s connection, a new means of control-  l i n g this competition must be found. Toward the end of 1954, Roger Elton called f o r a complete i n v e s t i g a t i o n of the implications of Graff's report and that during t h i s period, e x i s t i n g p o l i c i e s r e l a t i v e to the building and taking-over of stores would be suspended.  James Williams  expressed strong opposition to many of Graff's proposals and questioned the expenditure of time and other resources i n i n vestigating them.  Roger Elton remained firm however concerning  the necessity of investigating the proposals i n d e t a i l . months after this disagreement,  James Williams l e f t the Elton  Chain to accept an executive post elsewhere. p o s i t i o n was not f i l l e d .  Pour  His vacant  Major decision making power now  rested e n t i r e l y with Roger Elton and Graff.  Z 1.  Information Gathering Processes and Development of Expectations Investigation of Graff's proposals commenced i n early 1955 with a t r i p to the United States by Graff. of t h i s t r i p was  The purpose  to observe s i m i l a r store operations i n  various parts of the country and to consult, wherever possible, with management and executive o f f i c e r s of such operations. The duration of Graff's i n v e s t i g a t i o n was two months, at the end of which he returned with considerable evidence i n support of the success elsewhere of operations s i m i l a r to the type he had e a r l i e r proposed. On the basis of the information Graff had obtained on his t r i p (information which included some very general i n d i cations of the costs involved) Elton and Graff proceeded to appropriate funds f o r the construction of one "new  type"  store (larger f l o o r area, s e l f - s e r v i c e arrangements, etc.) on a suburban s i t e and also f o r the modernization of an "old type" store located on a suburban s i t e .  At approximately  the  same time, E l t o n closed out two "old type" stores (on urban s i t e s ) which had not been showing a good return.  These moves  should not be interpreted however, as a d e f i n i t e decision v i s - a - v i s the new policy proposed i n Graff's report. time of t h e i r inception (March 1955) be very tentative.  At the  they were considered to  In t h i s sense, they were more representa-  t i v e of a continuation of the information gathering and search processes rather than the establishment of d e f i n i t i v e p o l i c y . While these moves were being "tested out", the p o l i c y of  28.  buying out competitive independent r e t a i l operations (as a means of combining expansion with control of competition) was suspended.  The question now arose, however, of what would  happen i n t h i s respect i f the new policy was adopted.  For  c l e a r l y , i f building stores of the new type and modernizing other stores should prove to be the answer to the chain's prof i t and market share problems, then the old policy was tionable on at l e a s t two 1)  ques-  grounds:  that general expansion was no longer j u s t i f i a b l e as  opposed to strategic exploitation of the market. 2)  that many of the independent r e t a i l stores taken  over i n this way would themselves require expensive modernization. It must be remembered that at this time (mid 1955) i t was s t i l l too early f o r the Elton management to know with certainty that such measures as the new type of store and modernization, i n general were solutions to t h e i r problems,  nonetheless,  Roger Elton concluded that there was a s u f f i c i e n t p o s s i b i l i t y of the old p o l i c y being abandoned permanently  to warrant ex-  p l o r i n g the f i e l d f o r methods of competition control other than the takeover process. In this connection, Graff suggested that the present wholesale f a c i l i t i e s owned and operated by the Elton Chain (used e n t i r e l y to stock and equip E l t o n stores) might be expanded i n such a way as to serve independent stores outside the chain.  Graff proposed two immediate advantages to be derived  zs. from such an arrangement: 1)  an increased volume and turnover of wholesale goods  would mean that the Elton Chain could service i t s own at  stores  a lower cost. 2)  a p r o f i t could he realized on the wholesale goods  sold outside the chain.  In this sense, the Elton Chain would  have the competition "working f o r them". The major d i f f i c u l t y i n implementing the plan was seen as drawing independent r e t a i l e r s away from t h e i r present wholesale supply sources without cutting prices to an unprofitable level.  At the same time, however, i t was f e l t that the Elton  Wholesale operation could o f f e r certain a t t r a c t i v e benefits which would not normally be available from other wholesale outlets.  F i r s t l y , the E l t o n operation could supply rather costly  advertising displays to accompany many l i n e s of wholesale merchandise (since i t would have these displays f o r i t s own in  any event).  stores  Secondly, since the Elton Chain would never be  primarily dependent on p r o f i t s derived from wholesale operations (as  were a l l the other wholesale outlets at the time) i t would  have more scope i n cutting prices but s t i l l remaining p r o f i t a b l e . Although i t was s t i l l unclear (June 1955) to what extent the new p o l i c y currently being tested would be adopted, and the future of a revised wholesale operation was d i f f i c u l t to predict with certainty, Elton and Graff carried out the f i r s t in  a series of arrangements to increase the size of the whole-  sale operation.  JO.  Executive Choice and the Processes of Redefinition A f i n a n c i a l analysis carried out i n March 1956  produced  d e f i n i t e indications of p r o f i t a b l e operations at both the newly constructed suburban store and the modernized  store.  During the nine months or so preceding this f i n a n c i a l analysis, E l t o n and Graff had commenced the modernization of another s i t e , had dropped another unprofitable urban location, and had expanded the Elton Wholesale c l i e n t e l e to include supply contracts with s i x independent stores outside the chain.  As a r e s u l t of  the favorable nature of the test operations, i t was now decided to make the new p o l i c y f u l l y operational and expedite a l l of i t s f a c e t s — s t o r e modernization, the construction of stores of the new type, the relinquishing of unprofitable s i t e s (mainly urban) and the further expansion of wholesale operations. The p o l i c y thus implemented i s s t i l l operational at the present time (December 1963).  I t s history, however, has not  been uneventful, p a r t i c u l a r l y insofar as the p o l i c y has been received by the pharmacists employed by the chain.  Put i n the  simplest form, the new p o l i c y required certain new modes of performance from these pharmacists which the l a t t e r found to be i n c o n f l i c t with t h e i r professional role (as they defined i t at the time).  Consequently, c e r t a i n aspects of the new  policy  were more or less resisted or redefined by these employees, p a r t i c u l a r l y during the f i r s t three years of the policy's implementation (1956-1959) when two stores of the new type were constructed, f i v e stores of the old type were relinquished, and over twenty other s i t e s were modernized.  31.  What were these new performance  expectations which became  the object of a certain amount of employee resistance? the new type of store or modernized  Firstly,  store carried a much wider  range of non-medicinal stock (eg. magazines, toys, cameras, etc.) than was previously the case.  This involved the pharmacist i n  many more duties of a c l e r i c a l or s e l l i n g nature than before. Secondly, these new stores or modernized  stores did a much  larger volume of business than the old type of store.  This re-  sulted i n considerably more work and r e s p o n s i b i l i t y f o r the pharmacist i n the area of managing cash (making up nightly statements, etc.)  Although i n some cases, the pharmacist might  acquire additional personnel to a s s i s t with the increased work load, he would then be expected to assume a managerial and coordinating p o s i t i o n v i s - a - v i s these employees. Some research on the occupation of pharmacy by Isidor 1 2 3 Thorner , R.W. Hornosty , and E. Harvey has strongly suggested that the type of professional education received by pharmacists (and the values inculcated i n this way) places l i t t l e emphasis on the s e l l i n g and managerial functions of the profession. papers mentioned  The  above have referred to the disillusionment  experienced by a number of recently graduated pharmacists upon discovering the discrepancies between the profession as i t i s  1 I. Thorner, "Pharmacy: The Functional Significance of an I n s t i t u t i o n a l Pattern," Social Forces, XX:321-328, 1941-42. 2  R.W.  Hornosty, Unpublished Research,  1963.  3 E. Harvey, " C o n f l i c t and Pharmacy: Some Implications of Internal D i f f e r e n t i a t i o n , " Unpublished paper, 1963.  31. presented i n the u n i v e r s i t y and the way i t i s practiced i n the field.  Perhaps these comments w i l l give some i n d i c a t i o n of the  background to the reaction toward the new p o l i c y by many of the pharmacists i n the Elton Chain. Of the t h i r t y pharmacist-managers and pharmacist-employees (from the Elton Chain) that I. was able to interview, 26 recalled t h e i r own reactions (and the reactions of others) to the new p o l i c y when i t was implemented i n force.  In no case could the  reaction be termed favourable, although the degree of resentment expressed toward the p o l i c y was variable.  Statements such as  "I couldn't see why I should be s e l l i n g d o l l s " (children's d o l l s were one of the new merchandise l i n e s introduced) and "I had enough to do i n the dispensary without ironing out s t a f f problems" were common.  Some pharmacists attempted  to redefine the new  ex-  pectations more r a d i c a l l y than others by such methods as trying to ignore despised l i n e s of merchandise and to avoid involvement i n personnel matters.  During t h i s early period professional  s t a f f turnover (from both voluntary and enforced resignations); reached the highest figure i n the organization's h i s t o r y .  Roger  Elton, president of the chain, commented i n this connection, "We  did lose some money during that period (approximately  1959)  1956-  although now that pharmacists have got used to i t , and we  have had courses i n business management and incentive schemes and so on, things have improved."  Elton also observed, "Even  now we lose money on a newly graduated pharmacist. about two years to make a good manager of him.  He  I t takes doesn't  33.  learn that at u n i v e r s i t y .  Yes, we'd l i k e to see the university  t r a i n i n g changed to include a l o t more business and managerial background".  I t might be noted i n this connection that the  E l t o n Chain has been the source of a number of l i b e r a l grants to the l o c a l pharmaceutical t r a i n i n g colleges although, to date, the t r a i n i n g program remains heavily weighted toward the prof e s s i o n a l aspects of pharmacy. Although the greatest amount of employee resistance to the new p o l i c y decision took place during the f i r s t three years of i t s implementation, i t could not be said that i t has now ceased e n t i r e l y .  For example, one aspect of the new policy has  been to introduce an ever widening range of non-medicinal merchandise year by year.  I f the pharmacists I have interviewed  are i n any way representative and I believe they are, then i t may be said that there i s a strong tendency f o r many pharmacists to resent the introduction of such new l i n e s , p a r t i c u l a r l y i n sofar as they increase the number of c l e r i c a l and merchandising problems.  This resentment i s frequently expressed by a delay  by the pharmacist i n discovering the most e f f e c t i v e means of achieving a desirable turnover on the new merchandise. l i n e s of merchandise  Hew  also invariably involve, at the beginning,  an increase i n customer enquiries and complaints which v i r t u a l l y a l l of the pharmacists interviewed expressed a desire to avoid.  Since the demand f o r pharmacists at this time (and  i n recent years) has outweighed  the supply, the pharmacist's  p o s i t i o n v i s - a - v i s the r e d e f i n i t i o n of executive decisions may be considered quite a strong one.  A major theme which emerged through the course of the interviews was that pharmacists employed i n the chain operation expressed the opinion that they had more s e l l i n g ,  c l e r i c a l and  managerial functions to perform than was the case with independent r e t a i l e r s .  Some datta from a recent questionnaire^" directed  to a l l pharmacists i n Province X o f f e r s considerable support to t h i s suggestion.  The questionnaire asked the following questions  (among others): Question A~"pharmacist has to make decisions every day while at work. Some d i c i s i o n s take more time and are more d i f f i c u l t than others. Listed below are s i x job areas which involve the making of decisions. Using the categories l i s t e d below, please indicate which job areas involve the greatest number of decisions by writing i n EACH space below the number "1" f o r those job areas which involve many decisions 2" f o r those job areas which involve a moderate number of decisions "3" f o r those job areas which involve few decisions n  (A) (B; (C) ID) (E)  P i l l i n g Prescriptions R e t a i l s e l l i n g of non-medicinals Management of personnel Management of cash Providing information and advice regarding drugs and health problems to the public, the doctor and other members of the health professions. Other (please specify)  (P)  Question Using the categories l i s t e d below, please indicate which job areas involve decisions which are the most d i f f i c u l t to make by writing i n EACH space below the number. "1" M  H  f o r those job areas which involve decisions which are d i f f i c u l t to make 2" f o r those job areas which involve decisions which are neither d i f f i c u l t nor easy to make 3" f o r those job areas which involve decisions which are easy to make  4 Ibid, The design, response patterns and analysis of the questionnaire are discussed here i n some d e t a i l .  3S"  (A) (B) (C) D) E)  F i l l i n g Prescriptions R e t a i l s e l l i n g of non-medicihals Management of personnel Management of Cash Providing information and advice regarding drugs and health problems to the public, the doctor and other members of the health professions. Other (please specify)  (F)  Question Using the categories l i s t e d below, please indicate which job areas involve decisions which take the most time by writing i n EACH space below the number. "1" f o r those job areas which very time consuming 2 f o r those job areas which take a moderate amount of "3" f o r those job areas which take l i t t l e time  n  n  involve decisions which are involve decisions which time involve decisions which  (A) (BJ (C) (TJ) (E)  F i l l i n g Prescriptions R e t a i l s e l l i n g of non-medicinals Management of personnel Management of cash Providing information and advice regarding drugs and health problems to the public, the doctor and other members of the health professions.  (F)  Other (Please specify)  Referring to the categories (A,B,C,D,E,andF) l i s t e d above, categories A and E were thought of as r e l a t i n g more to the professional aspects of pharmacy; the remaining categories were viewed as r e l a t i n g more to the business or managerial aspects of the profession.  As may be seen from Tables 1,2 and 3> those  pharmacists employed i n chain operations make more decisions, f i n d these decisions more d i f f i c u l t , and spend more time over them i n categories B,C, and D than do pharmacists engaged i n independent r e t a i l  operations.  J9>.  1 s .-.-is^Mw^eftarr pTtno.  I  5i  «1 ^  8i  j  o *  ?i  m  &  rf;  ;  -  I. 1  *°  1  O ^ bo  1 i §  *.  :  cv, fco  :4  1 J1  iv  0  3  jaws  aryu»v <iiNs*c=u:\_». t  ^ /aa,  <s3  5  ^  •I  <>o  §  2  • il  1,  S  :i  v9  S I  $  s  Oo  O  2  I  5  I  o o  -z  37.  .mi X l » J  Go  1  O  1  si-  lo •*  *  Vo  I  5 *  3: o Go 5:  O *0  Go  O  r  i3  ID  !3 i  0 ©  1  38.  o)f  fa  c  "5)1  Is I  7  CI 21  W\  S  'o\  1 •  t  Ii ' " • > , .  if.  ^4-  I  ill  01 -.1  to  d  Go  C! /*- *  I !  ft  i  ^0  6  12II * $ r  I  f  If  0  -cfl  f  1  ~7 J  f  1  o  I  O  o  a  0  0  3? 3o O  <0  1  2  J 7. T h e o r e t i c a l I m p l i c a t i o n s o f the Case Now  with reference  to the c o n c e p t u a l scheme p r e s e n t e d  e a r l i e r i t w i l l be p o s s i b l e to examine the ways i n which the p o l i t i c a l and  t e m p o r a l dimensions o f d e c i s i o n making and  o t h e r a s p e c t s of the c o n c e p t u a l scheme o c c u r i n v a r i o u s  some aspects  o f the E l t o n case. The  Organization The  and  I t s Environment  s i g n i f i c a n c e o f f a c t o r s i n the e x t e r n a l environment o f  the o r g a n i z a t i o n i n t h i s case i n c o n s i d e r a b l e . the l i v i n g and  consuming p a t t e r n s  The  changes i n  o f customers d i r e c t l y  affected  the market share and p r o f i t s o f the E l t o n C h a i n and were a source o f p r e s s u r e on the o r g a n i z a t i o n to change i t s p o l i c i e s . example o f s i m i l a r o p e r a t i o n s  i n the e x t e r n a l environment  s t o r e s i n the U.S.A. which were r e f e r r e d t o ) p r o v i d e d w h i c h the E l t o n C h a i n " l e a r n e d " their  The  about p o s s i b l e new  (the  cues from  directions for  policies.  D e f i n i t i o n o f the Problem and  F o r m a t i o n o f Goals  F i r s t l y , i t i s w o r t h n o t i n g t h a t some t h r e e y e a r s e l a p s e d d u r i n g which the Chain's b u s i n e s s was d u r i n g which time no  gradually f a l l i n g off  changes i n p o l i c y were i n t r o d u c e d .  and  Even  a f t e r the i n c r e a s i n g l o s s o f p r o f i t s and market share were r e c o g n i z e d as problems, the t e m p o r a l e x t e n s i v e n e s s o f f o r m i n g p o l i c y was  greatly increased  by the o p e r a t i o n  of d i f f e r e n t p o l i -  t i c a l p o s i t i o n s among key members o f the o r g a n i z a t i o n .  For i n t h i s  c o n n e c t i o n i t w i l l be remembered t h a t John E l t o n and James had  new  Williams  r a t h e r d i f f e r e n t i d e a s from Roger E l t o n and K a r l G r a f f as to  the f u t u r e c o u r s e o f p o l i c y .  Here o r g a n i z a t i o n a l p o l i t i c s were  r e f l e c t e d i n d i f f e r e n t commitments to d i f f e r e n t p o l i c i e s as r e s u l t of d i f f e r e n t types of o r g a n i z a t i o n a l experience.  a  I n t h i s case t h e f o r m a t i o n o f g o a l s v i s - a - v i s t h e p r o blem support  t h e s u g g e s t i o n t h a t t h e development o f o r g a n i z a t i o n a l  goals i s a process  o f b a r g a i n i n g among c o a l i t i o n members i n  r e s p o n s e to problems o r p r e s s u r e s .  W h i l e he was p r e s i d e n t o f t h e  f i r m , John E l t o n ' s s u p e r i o r b a r g a i n i n g power was r e f l e c t e d i n t h e development o f g o a l s to w h i c h he was committed ('i.e. m a i n t a i n i n g the o l d p o l i c y w i t h a few changes). the b a l a n c e  A f t e r h i s r e t i r e m e n t , however,  o f p o l i t i c a l b a r g a i n i n g power w i t h i n t h e o r g a n i z a t i o n  s h i f t e d and o t h e r g o a l s were f o r m u l a t e d .  In particular,  account may be c o n t r a s t e d w i t h those c o n c e p t i o n s  this  of organizational  d e c i s i o n making which suggest t h a t o r g a n i z a t i o n s have a s e t o f w e l l a r t i c u l a t e d g o a l s i n terms o f which they s o l v e t h e i r problems. The  i n f l u e n c e o f o t h e r o r g a n i z a t i o n s i n t h e environment  r e l a t i v e to t h e p o l i c i e s u l t i m a t e l y developed i n t h e E l t o n case was d i s c u s s e d above.  I n a d d i t i o n to the c o n s i d e r a t i o n s mentioned  above, i t i s a l s o possible  t o see t h a t the a s p i r a t i o n l e v e l  i m p l i e d i n t h e g o a l s e v e n t u a l l y developed by Roger E l t o n and G r a f f were i n f l u e n c e d by t h e apparent success o f o t h e r  operations  w h i c h had made t h e type o f changes t h e E l t o n C h a i n was p l a n n i n g . O r g a n i z a t i o n a l Search and t h e Development o f E x p e c t a t i o n s T u r n i n g now to t h e q u e s t i o n o f o r g a n i z a t i o n a l s e a r c h and the development o f e x p e c t a t i o n s , i t i s d o u b t f u l i f G r a f f ' s two month t o u r c o u l d be regarded ibilities.  as a complete i n v e s t i g a t i o n o f p o s s -  I n any event, i t may be w o r t h n o t i n g t h a t when t h e  p l a n s and c o s t s f o r t h e f i r s t "new t y p e " s t o r e were b e i n g  dealt;i  w i t h by E l t o n , G r a f f and a c o n s u l t i n g c o n t r a c t o r , no s p e c i f i c c a l c u l a t i o n s were made w i t h r e s p e c t to expected r e t u r n on  investment  i n the area where the s t o r e was  being b u i l t .  Rather,  the g u i d i n g f i g u r e s were the very g e n e r a l ones G r a f f had while' i n v e s t i g a t i n g i n another  country.  plans f o r the E l t o n Wholesale Operations before c l e a r - c u t e x p e c t a t i o n s had e x p e r i m e n t with the "new  obtained  F u r t h e r to t h i s , were proceeded  the  with  been formed r e l a t i v e to the  type" s t o r e .  These o b s e r v a t i o n s ,  then,  are o f f e r e d i n support of the argument proposed i n Chapter 1, is,  i t i s necessary  that  to c o n s i d e r l i m i t a t i o n s to r a t i o n a l i t y i n  both o r g a n i z a t i o n a l search and o r g a n i z a t i o n a l e x p e c t a t i o n s . Redefinitions Taking up  the q u e s t i o n o f employee r e d e f i n i t i o n o f the  d e c i s i o n a f t e r i t had been o p e r a t i o n a l i z e d i n March 1956, p o s i t i o n assumed by pharmacist next three years may and  the  employees and managers d u r i n g  be viewed as an e x t e n s i o n o f both the  temporal dimensions of the d e c i s i o n a l p r o c e s s .  assumed by a m a j o r i t y of the pharmacists  was  The  political  position  p o l i t i c a l i n the  sense t h a t i t r e f l e c t e d a set o f e x p e c t a t i o n s p e c u l i a r to f u n c t i o n i n the o r g a n i z a t i o n .  the  their  When these e x p e c t a t i o n s were  challenged by the changes t a k i n g p l a c e , many pharmacists  resisted  the d e c i s i o n w i t h the r e s u l t a n t l o s s o f money to the o p e r a t i o n and  s t a f f turnover.  The  temporal dimension o f the decision:.  extended by t h i s p o l i t i c a l r e s i s t a n c e f o r top management was r e q u i r e d to r e v i s e and  -  was now  augment the d e c i s i o n i n such b a s i c ways as  i n t r o d u c i n g management t r a i n i n g courses  and  i n c e n t i v e schemes.  D e f i n i t i o n o f an O r g a n i z a t i o n as a C o a l i t i o n The u l t i l i t y o f the c o a l i t i o n d e f i n i t i o n i n a n a l y s i s i s r e f l e c t e d i n the E l t o n case i n two  major ways.  F i r s t l y , i t has  i n f o r m e d the p o l i t i c a l p r o c e s s e s i n v o l v e d i n the d e f i n i t i o n o f the problem and mitted  the f o r m a t i o n  of goals.  Secondly, i t has  the i n c o r p o r a t i o h ( f o r the purposes o f a n a l y s i s ) 4 a  n i f i c a n t e n t i t y - t e c h n i c a l l y outside  t h e r e b y to a s s e s s i t s i m p l i c a t i o n s .  -  question  I am t h i n k i n g here o f  the r o l e o f the t r a i n i n g c o l l e g e f o r p h a r m a c i s t s and ence.' w h i c h i t s " p r o f e s s i o n " o r i e n t e d p o l i c i e s had expansions o f the E l t o n e n t e r p r i s e .  sig-  the E l t o n o r g a n i z a t i o n  on the p o l i t i c a l d i m e n s i o n of the d e c i s i o n p r o c e s s i n and  per-  the  on the  influ-  "business"  Here, the types o f v a l u e s  f o s t e r e d by the t r a i n i n g c o l l e g e were d i r e c t l y r e f l e c t e d i n the e a r l y p o l i t i c a l p o s i t i o n o f r e s i s t a n c e assumed by the p h a r m a c i s t s employed i n the The  f i n a l manifestation of o r g a n i z a t i o n a l p o l i t i c s  be c o n s i d e r e d the g r a d u a l  chain.  i n c o n n e c t i o n w i t h the E l t o n case may  be seen i n  r e d u c t i o n o f the number o f persons i n the  to h o l d major d e c i s i o n making power.  organization  I t seems r e a s o n a b l e to  suppose t h a t a t l e a s t i n p a r t t h i s r e p r e s e n t e d a move on p a r t o f Roger E l t o n and  to  the  G r a f f to a v o i d the types o f d e c i s i o n  making c o n f l i c t s among e x e c u t i v e s  which had  occured  earlier.  C H A P T E R  3  Case 2: The Northlands Pish Cannery  D e s c r i p t i o n of the Organization i n Question The o r g a n i z a t i o n w i t h w h i c h t h i s case i s concerned i s the N o r t h l a n d s F i s h Cannery Company.  The cannery, w i t h approx-  i m a t e l y 100 employees, would be c o n s i d e r e d o f moderate s i z e i n comparison w i t h s i m i l a r o p e r a t i o n s i n i t s a r e a - t h e c o a s t o f P r o v i n c e X. The D e c i s i o n Process m  Q u e s t i o n and I.xs Approximate Time Span  B r i e f l y s t a t e d , t h e d e c i s i o n a l p r o c e s s t o be p r e s e n t e d i n t h i s case i s concerned w i t h t h e d e c i s i o n o f t h e N o r t h l a n d s Cann e r y Company t o open an a d d i t i o n a l cannery s i t e n e a r t h e community o f Weston some 50 m i l e s down t h e c o a s t from t h e i r p r e s e n t location.  The time span o f t h e d e c i s i o n a l p r o c e s s i n q u e s t i o n  was from F e b r u a r y , 1963 to September,  1963.  The A c t o r s T h e e f o l l o w i n g p e r s o n s o r groups p l a y e d s i g n i f i c a n t r o l e s i n t h e d e c i s i o n p r o c e s s to be d i s c u s s e d h e r e .  They a r e mentioned  now as a r e f e r e n c e p o i n t . Kenneth B r a n c h , owner and p r e s i d e n t o f t h e N o r t h l a n d s Cannery. W e l l s J o n e s , N o r t h l a n d s ' v i c e p r e s i d e n t and s o l i c i t o r C h a r l e s Fox, r e p r e s e n t a t i v e o f the "Weston C i t i z e n s f o r I n c r e a s e d B u s i n e s s League". The Cannery Workers " U n i o n The Weston V i l l a g e  Council  The P r o v i n c e X Water A u t h o r i t y S p e c i f i c Methods The s p e c i f i c methods o f t h i s case r e l a t i n g to t h e community research are stated i n that s e c t i o n o f the d i s c u s s i o n .  In  h* r . a d d i t i o n to t h i s , I have had i n t e r v i e w s w i t h B r a n c h , Jones, Fox, a spokesman f o r the u n i o n , and a c o n t a c t i n the Water A u t h o r i t y . B r a n c h a l s o made a v a i l a b l e a g e n e r a l f i l e p e r t a i n i n g to the decision i n question. D e f i n i n g the Problem and I t s Background F o r s e v e r a l y e a r s up to 1956,  a cannery i n v o l v e d i n the  p r o c e s s i n g o f f i s h o p e r a t e d f a i r l y s u c c e s s f u l l y i n the v i l l a g e o f Weston, on the c a a s t o f P r o v i n c e X.  The owner o f t h i s o p e r a t i o n ,  MB. Emmett B r a n c h , d i e d suddenly i n 1956,  l e a v i n g one  Kenneth B r a n c h , and a m a r r i e d d a u g h t e r , Mrs. W i l s o n .  son, I n the sub-  sequent d i v i s i o n - o f the p r o p e r t y o f the deceased, the machinery and equipment from the Weston Cannery was l e f t to Kenneth who  Branch  h i m s e l f owned and o p e r a t e d a f i s h cannery some 50 m i l e s  f u r t h e r up the c o a s t - the N o r t h l a n d s Cannery.  The  buildings  and grounds o f the Weston Cannery were l e f t to Mrs. W i l s o n who proceeded to r e n t t h e s e f a c i l i t i e s t o the Sea O i l Company f o r storage use.  At t h i s time (1956) Kenneth Branch was  still in  the p r o c e s s o f e s t a b l i s h i n g h i s own cannery on a p r o f i t a b l e b a s i s and e v i d e n t l y had no i n t e r e s t i n n e g o t i a t i n g f o r an a d d i t i o n a l site. A few y e a r s l a t e r , i n F e b r u a r y , 1963, Mr. C h a r l e s Fox, a r e p r e s e n t a t i v e o f the "Weston C i t i z e n s f o r I n c r e a s e d B u s i n e s s League" approached Branch w i t h the f o l l o w i n g p r o p o s i t i o n : 1)  t h a t the aforementioned c i t i z e n s were a n x i o u s to  see the b u s i n e s s volume o f Weston i n c r e a s e d and t h a t to t h i s  end  ^6.  Pox, as t h e i r r e p r e s e n t a t i v e , had i n t e r e s t e d Mrs. W i l s o n i n l e a s i n g the cannery  p r o p e r t y ( t h e p r e s e n t l e a s e was  about to  ieacpire) to an e n t e r p r i s e t h a t would be o f more b e n e f i t to the community. 2)  t h a t s i n c e B r a n c h was  i n the cannery  business  and  was Sirs. W i l s o n ' s b r o t h e r , they d e s i r e d t h a t he be g i v e n the f i r s t opportunity. At t i i s time..; B r a n c h had not been c o n t e m p l a t i n g an immediate e x p a n s i o n o f h i s b u s i n e s s , a l t h o u g h i t was fitably.  Branch was  now  operating quite pro-  c o n f r o n t e d w i t h a problem, however, i n  t h a t i f he d i d not t a k e o v e r the s i t e he might be m i s s i n g an o p p o r t u n i t y to p r o f i t a b l y expand h i s b u s i n e s s . he d i d not take o v e r the s i t e , then i t was c o m p e t i t o r would.  The presence  Secondly, i f  quite possible that a  o f c o m p e t i t i o n nearby was  (by Branch) as a c o n s i d e r a b l e problem.  Under the  viewed  circumstances,  he d e c i d e d t h a t he would.at l e a s t i n v e s t i g a t e the p o s s i b i l i t i e s o f the s i t e and a d v i s e d Pox a c c o r d i n g l y . The F o r m a t i o n o f R e l e v a n t  Goals  A f t e r e x p l o r a t o r y d i s c u s s i o n s w i t h W e l l s ^ones, N o r t h l a n d s ' v i c e p r e s i d e n t and s o l i c i t o r , A l l a n B a t e s , N o r t h l a n d s " c h i e f a c c o u n t i n g o f f i c e r and a p r e l i m i n a r y e x a m i n a t i o n o f the Weston s i t e t h r o u g h March 1963,  B r a n c h concluded  t h a t t a k i n g over  the  Weston s i t e would be to N o r t h l a n d s ' advantage, a l t h o u g h a complete i n v e s t i g a t i o n to v e r i f y t h i s d e f i n i t e l y was was  required.  Branch  p a r t i c u l a r l y i n f l u e n e d a t |fcfcis time by a g e n e r a l t r e n d  toward  an i n c r e a s e i n the annual f i s h c r o p , h i s own  company's  h e a l t h y p r o f i t p o s i t i o n and the o b s e r v a t i o n t h a t o t h e r  cannery  o p e r a t i o n s he knew of had r e c e n t l y expanded o r were expanding. I n f o r m a t i o n G a t h e r i n g P r o c e s s e s and Development of E x p e c t a t i o n s Branch required answers to several major  questions  before he could proceed with the plans f o r expansion.  Among  these questions were: 1) what would he the most economical yet p r o f i t a b l e way of equipping  the Weston s i t e .  This included the problem of the  condemned wharf serving that l o c a t i o n .  Here the question was  one of deciding between repairs or t o t a l replacement. 2) since the wharf had been condemned by a Federal department, i t would be necessary to meet with t h e i r expectations.  It  would be necessary to f i n d out what these were. 3) the water licence ((essential to the cannery's  operation)  had been abandoned by Mrs. Wilson because i t was not required while the buildings had been used f o r storage purposes.  This  would involve re-application to the P r o v i n c i a l a u t h o r i t i e s . 4) various arrangements would require to be made f o r the provision of e l e c t r i c i t y , foreshore and transportation f a c i l i t i e s at  the Weston s i t e . The f i r s t of t h e s e q u e s t i o n s ( t h e problem o f equipment and  the  w h a r f ) l e d t o an o u t s i d e c o n s u l t i n g f i r m b e i n g c a l l e d i n .  I n c o n n e c t i o n w i t h the o t h e r q u e s t i o n s , W e l l s Jones proceeded t o lodge e n q u i r i e s w i t h t h e governmental a u t h o r i t i e s and u t i l i t i e s •suppliers concerned.  R e l a t i v e t o the l a s t mentioned, i t was  n e c e s s a r y t o i n v e s t i g a t e b o t h s h i p and r a i l  transportation  arrangements t o d e t e r m i n e w h i c h would b e s t meet the r e q u i r e m e n t s of  the Weston s i t e . Since t h e N o r t h l a n d s company had o n l y u n t i l the end o f  April,1963  to s e c u r e the l e a s e on the Weston s i t e , a l l these  s e a r c h p r o c e d u r e s were c o n s i d e r a b l y r u s h e d .  S h o r t l y be-fcfre the  end o f A p r i l , however, a c c e p t a b l e c o s t f i g u r e s had been secured on the wharf r e p a i r s and u t i l i t i e s .  F e d e r a l a p p r o v a l o f the  p l a n s f o r i n n o v a t i n g the wharf had been secured and the a p p l i c a t i o n for  the water l i c e n c e was underway and appeared  :  to be p r o c e e d i n g  smoothly. E x e c u t i v e Choice and the P r o c e s s e s o f R e d e f i n i t i o n On the b a s i s o f the i n f o r m a t i o n i n d i c a t e d above, Branch d e c i d e d to t a k e the f i v e y e a r l e a s e (no s h o r t e r time was a b l e ) on the Weston s i t e .  W i t h i n one month o f t h i s  avail-  decision,  however, two major events took p l a c e v i s - a - v i s N o r t h l a n d s ' p l a n s . F i r s t l y , a number o f the employees a t the N o r t h l a n d s number one s i t e , on l e a r n i n g t h a t they might be t r a n s f e r r e d to the Weston s i t e , took the m a t t e r up (anonymously, N o r t h l a n d s ' management was U n i o n which proceeded  as f a r as  concerned) w i t h the Cannery Worker"s  to l o d g e a c o m p l a i n t w i t h Branch.  S e c o n d l y , and b e f o r e the i s s u e w i t h the u n i o n was  clarified,  the p l a n s f o r the cannery development which had been s u b m i t t e d to the Weston v i l l a g e  c o u n c i l were r e j e c t e d on the b a s i s t h a t the  a r e a where the s i t e was l o c a t e d was no l o n g e r zoned f o r purposes.  The c o u n c i l had, i n f a c t ,  industrial  p l a n s f o r the development o f  a m a r i n a and p a r k i n t h e a r e a and viewed as " i m p o s s i b l e " the o p e r a t i o n o f a cannery v i r t u a l l y n e x t door. E x p l a n a t o r y Note While i t i s t r u e t h a t a v i l l a g e  c o u n c i l has wide powers  i n the m a t t e r o f z o n i n g under the M u n i c i p a l i t i e s A c t , i t n o n e t h e l e s s  seems s t r a n g e  t h a t the N o r t h l a n d s Company, i n the p e r i o d  i n v e s t i g a t i o n s , d i d not d i s c o v e r a n y t h i n g change.  about t h i s  of  crucial  As n e a r l y as I can d e t e r m i n e , W e l l s Jones must have  made o n l y i n f o r m a l e n q u i r i e s o f the v i l l a g e c l e r k ( r a t h e r t h a n any f o r m a l  Under t h e s e c i r c u m s t a n c e s ,  it  i s q u i t e p r o b a b l e t h a t the c l e r k would have no knowledge o f  the  zoning  submission of p l a n s ) .  change which was  most p r o b a b l y o n l y p e n d i n g at the time  o f Jones' e n q u i r i e s . The  d e v e l o p m e n t ' i n q u e s t i o n seems a l l the more i n c r e d i b l e  s i n c e i t was  a member of Weston community (Fox) who  p r e s e n t e d the b u s i n e s s o p p o r t u n i t y u n d e r s t a n d the p o l i t i c a l  to Branch.  first  I n o r d e r to b e t t e r  f o r c e s a t work here and w h i c h u l t i m a t e l y  f o r c e d B r a n c h to g i v e up h i s e x p a n s i o n p l a n s , i t w i l l  be  n e c e s s a r y to e x p l o r e i n some d e t a i l the p o l i t i c a l  power  s t r u c t u r e o f Weston. been o b t a i n e d  The  and  i n f o r m a t i o n I s h a l l p r e s e n t here  t h r o u g h a number of i n f o r m a l i n t e r v i e w s  has  with  v i l l a g e c o u n c i l l o r s , p r o f e s s i o n a l s and businessmen p e r s o n a l l y known to me,  and  t h r o u g h the use o f the minutes o f the c o u n c i l  m e e t i n g s , minutes o f the Community H a l l A s s o c i a t i o n , and  past  i s s u e s of the l o c a l weekly newspaper. B e f o r e d i s c u s s i n g the power s t r u c t u r e o f Weston, However, i t may  be u s e f u l to c o n s i d e r a few g e n e r a l d e t a i l s about the  community, i n c l u d i n g i t s socioeconomic zones and voters.  Weston i s an i n c o r p o r a t e d  a p p r o x i m a t e l y 2400. population persons and  contains  Little  d i s t r i b u t i o n of  v i l l a g e w i t h a p o p u l a t i o n o'f  i n d u s t r y e x i s t s i n the a r e a , and  a r a t h e r h i g h p r o p o r t i o n of w e l l - t o - d o  C i v i l S e r v a n t s who  work i n a nearby c i t y .  The  the retired affairs  ro. of l o c a l government are c a r r i e d out by a c o u n c i l of f i v e members of the community who  are e l e c t e d b i e n n i a l l y . 1  F i g u r e 3:1  d e f i n e s the community i n three b a s i c zones.  .While t h i s d i v i s i o n i s somewhat a r b i t r a r y , I b e l i e v e i t i s r e p r e s e n t a t i v e of g e n e r a l p a t t e r n s .  For example, Area C c o n t a i n s  Weston's commercial and b u s i n e s s developments and the cannery s i t e .  The  i s n e a r e s t to  commercial s t r i p i s surrounded by r a t h e r  o l d , low tax r e s i d e n c e s , some of which have become rooming houses.  As one moves outward, i n an e a s t e r l y d i r e c t i o n , from  the centre of the community, through Area B, more houses become p r i v a t e l y owned and  s i t u a t e on l a r g e r l o t s .  become c o r r e s p o n d i n g l y h i g h e r . and  Area A,  Property  taxes  c l o s e s t to the s e a f r o n t  e s t a b l i s h e d park areas, c o n t a i n s r e l a t i v e l y few houses, most  o f which are on very l a r g e l o t s .  Property  taxes are h i g h e s t  here. An attempt has been made to o b t a i n i n f o r m a t i o n  concerning  the s o c i a l c l a s s c h a r a c t e r i s t i c s of the m a j o r i t y of persons l i v i n g i n each area.  The method used here has i n v o l v e d t a k i n g a  random sample (from the v o t e r ' s l i s t ) of 100 contained  1623  persons.  names, a l l of which were accompanied by  p a t i o n a l i n f o r m a t i o n and  list  occu-  strati2 f i e d by an a p p l i c a t i o n of B l i s h e n ' s o c c u p a t i o n a l c a t e g o r i e s . 1 influenced  address.  The  Next, the sample was  The C o n c e n t r i c Zone Theory o f Park and Burgess this discussion.  has  2 B.R. B l i s h e n , "The C o n s t r u c t i o n and Use of an Occup a t i o n a l C l a s s S c a l e " , Canadian S o c i e t y , Toronto, The M a c M i l l a n Company of Canada L i m i t e d , 1961, pp. 477-485.  Classes 1 and 2 were used to represent the high socioeconomic group i n the community, classes 3, 4 and 5 the middle, and classes 6 and 7 the low group,  In the case of r e t i r e d persons,  3 who comprised 32$ of the sample, these were assigned to high,middle or low group on the basis of the smount of property tax they paid.  F i n a l l y , correlations were run between p o s i t i o n on  the scale and area of residence.  Over 95$ of the persons i n  the high socioeconomic group were found to reside i n Area A, the balance i n outer B.  Of the middle group, 92$ resided i n Area B,  5$ i n Area A, 3$ i n Area C.  Of the lowest group, 85$ resided i n  Area C, the balance l i v i n g mainly near the inner parts of B. On the basis of the sample, the voter's l i s t breaks down i n the following way: approximately 20$ of the vote i n Area A; approximately 60$ of the vote i n Area B; approximately 20$ of the vote i n Area C.  The members of the community I have d i s -  cussed this with f e e l that this pattern may be generalized f o r the entire community. With t h i s background data i n mind i t i s now possible to examine i n some d e t a i l the nature of power groups i n the community and, through reviewing two major issues i n the community, to give an i n d i c a t i o n of some of the ways i n which they operate. Two competitive e l i t e groups have constituted the two major l o c i of power i n Weston f o r over ten years.  During t h i s  period, a t h i r d pressure group composed of persons generally 3 The community's l o c a t i o n by the sea and pleasant climate appear to make i t an a t t r a c t i v e place to r e t i r e f o r many persons from other parts of the country.  S3.  r e s i d e n t i n the l o w e r socioeconomic zone, A r e a 0, has r i s e n up from time to time i n c o n n e c t i o n w i t h i s s u e s which concerned them in a fairly  s p e c i f i c sense.  A f t e r b r i e f l y d e s c r i b i n g these  g r o u p s , I s h a l l c o n s i d e r some o f the ways they have a f f e c t e d  one  another. I r e f e r to the f i r s t power group as "the n o n - b u s i n e s s elite".  T h i s group i s composed o f most o f the community's p r o -  f e s s i o n a l s and a number o f w e l l - t o - d o r e t i r e d p e o p l e . or  Occupational  s o c i a l c l u b l i n k s between the members (and key s u p p o r t e r s ) o f  t h i s group are a t a minimum.  The c h i e f bond which u n i t e s these 4  persons i s the v i l l a g e c o u n c i l .  A t t e n d i n g o r h a v i n g an i n t e r e s t  i n c o u n c i l b u s i n e s s has become r e a s o n enough f o r many i n f o r m a l meetings between members o f the n o n - b u s i n e s s e l i t e and key s u p p o r t e r s .  their  These g a t h e r i n g s u s u a l l y t a k e p l a c e at p r i v a t e  homes; I am t o l d t h a t many community p r o j e c t s are f i r s t c o n s i d e r e d i n t h i s type o f c o n t e x t . of  The n o n - b u s i n e s s e l i t e ' s g e n e r a l p o l i c y  c o n t r o l l i n g commercial development  and thus p r e s e r v i n g the  e s s e n t i a l l y r e s i d e n t i a l q u a l i t y o f the v i l l a g e has r e c e i v e d the g e n e r a l s u p p o r t o f the many r e t i r e d persons end c i v i l s e r v a n t s l i v i n g i n the v i l l a g e .  Such s u p p o r t , combined w i t h the wide  powers o f the c o u n c i l under the M u n i c i p a l i t i e s A c t , has enabled the  c o u n c i l ( w h i c h i s o n l y the f o r m a l organ o f the non-business  e l i t e ) to put through many p o l i c y programs w i t h o u t much r e s i s t a n c e . I n s t e a d o f c o n s i d e r i n g t h e s e d e c i s i o n s , however, I w i l l be d i s c u s s i n g s i t u a t i o n s where new c o n f i g u r a t i o n s o f power appeared. But f i r s t i t i s n e c e s s a r y to d e s c r i b e the o t h e r two power groups. 4 They have n e v e r h e l d l e s s t h a n 3 o f the 5 s e a t s and, more u s u a l l y , 4 out o f 5. Thus the chairman has always been s e l e c t e d from t h i s group.  TV: The second power group, and n e x t i n importance i n the community may  he r e f e r r e d to as the " b u s i n e s s e l i t e " .  It is  composed o f the town's most s u c c e s s f u l merchants and a s m a l l number o f r e t i r e d persons who had p r e v i o u s l y f o l l o w e d b u s i n e s s careers.  As f a r as I can d e t e r m i n e , these persons form a  political  e n t i t y more on the i d e o l o g i c a l b a s i s o f w a n t i n g to "promote b u s i n e s s c o n d i t i o n s and see p r o g r e s s i n the community" than as a r e s u l t of business t i e s .  The R o t a r y C l u b , a Ratepayer's  A s s o c i a t i o n and the " I n c r e a s e d B u s i n e s s League" w i t h the l o c a l newspaper are the c h i e f o r g a n i z a t i o n a l weapons o f t h i s The t h i r d p r e s s u r e group, as mentioned  group.  above, has become  a c t i v e on few o c c a s i o n s , but i t has p r o v e n to be an i m p o r t a n t f o r c e i n c o n n e c t i o n w i t h two i s s u e s : sewers and the community h a l l . By t r a c i n g the c a r e e r s o f these i s s u e s , I s h a l l t r y to i l l u s t r a t e the workings o f the power groups f u r t h e r . the sewer i s s u e . sewers.  P r i o r to 1953,  L e t us f i r s t t u r n t o  no p a r t o f Weston was  At t h i s t i m e , the f i r s t two power i n t e r e s t s  served by mentioned  above were v e r y much concerned o v e r the p o s s i b i l i t y o f i n c o r p o r a t i n g the v i l l a g e . l i t t l e was  Prom the v i e w p o i n t o f the non-business  to be g a i n e d from the proposed move.  The b u s i n e s s  however, viewed i n c o r p o r a t i o n as a p r e c o n d i t i o n to e x p a n s i o n w i t h i n the v i l l a g e .  elite, elite,  commercial  V a r i o u s measures were t a k e n by  b o t h groups to g a i n s u p p o r t i n the v i l l a g e f o r t h e i r r e s p e c t i v e s t a n d s on the i s s u e .  I n l a t e 1953,  the p r o p o s a l f o r i n c o r p o r a t i o n  was r e j e c t e d by a s u b s t a n t i a l m a j o r i t y .  D u r i n g e a r l y 1954,  of H e a l t h i n s p e c t o r s condemned the s e p t i c tank f a c i l i t i e s served a number o f d w e l l i n g s i n A r e a C.  Board which  I t soon became e v i d e n t  to most o f t h e r e s i d e n t s i n A r e a C and a number o f p e r s o n s l i v i n g i n m a r g i n a l p a r t s o f A r e a B t h a t a sewer system was necessary.  B e f o r e t h e money g r a n t s and l e g a l arrangements f o r  such a system c o u l d be made, however, i t was n e c e s s a r y t h a t t h e v i l l a g e be i n c o r p o r a t e d .  The b u s i n e s s e l i t e , o f c o u r s e , was  s t i l l v e r y i n t e r e s t e d i n t h e i n c o r p o r a t i o n i s s u e and viewed t h e d e v e l o p i n g sewer i s s u e as a p o s s i b l e means o f r e a l i z i n g poration.  incor-  C e r t a i n key members o f t h e b u s i n e s s e l i t e met w i t h  a r e p r e s e n t a t i v e o f t h e r e s i d e n t s o f A r e a C and p a r t s o f A r e a B i n o r d e r t o map o u t a program o f a g i t a t i o n f o r a n o t h e r v o t e on the  incorporation issue.  T h i s v o t e was h e l d i n June, 1954 and  was i n f a v o u r o f i n c o r p o r a t i o n , w h i c h was p u t i n t o e f f e c t i n f o u r months. There now f o l l o w e d t h e f i r s t e l e c t i o n o f v i l l a g e cillors.  coun-  B o t h t h e b u s i n e s s and n o n - b u s i n e s s e l i t e s o f f e r e d  c a n d i d a t e s ; t h e o n l y c a n d i d a t e from A r e a C was t h e i n d i v i d u a l who had been i n v o l v e d e a r l i e r i n t a l k s and meetings w i t h r e p r e sentatives of the business e l i t e .  Of t h e f i v e o f f i c e s to be  f i l l e d , f o u r were won by r e p r e s e n t a t i v e o f t h e non-business group w h i l e one s e a t was secured by a b u s i n e s s c a n d i d a t e . ' T h i s suggests t h a t , a t t h i s t i m e , t h e b u s i n e s s e l i t e r e q u i r e d t h e s u p p o r t o f t h e v o t e r s i n A r e a C, a s u p p o r t which i n t h i s case was d r a i n e d o f f by t h e p r e s e n c e o f an A r e a C c a n d i d a t e .  Thus,  w h i l e the business e l i t e could m o b i l i z e the r e s i d e n t s o f Area C and p a r t s o f A r e a B i n . c o n n e c t i o n w i t h an i s s u e which concerned the  l a t t e r groups, they were u n a b l e to m o b i l i z e t h e s e groups f o r  t h e i r own p o l i t i c a l pusposes when t h e s e o t h e r groups had n o t h i n g to  gain.  S6.  A f t e r i n c o r p o r a t i o n and the e l e c t i o n , the sewer q u e s t i o n was  q u i c k l y f o r g o t t e n about by b o t h the b u s i n e s s and  elites.  non-business  A g i t a t i o n f o r sewers d i d n o t cease, however, among the  r e s i d e n t s o f A r e a C and p a r t s o f A r e a B.  Gradually,  support o f  the i s s u e by the b u s i n e s s e l i t e developed a g a i n and, a f t e r many meetings and d i s c u s s i o n s , a referendum was h e l d i n March,  1955.  The dewer i s s u e was approved a t t h i s t i m e . The r e a s o n ( o r r e a s o n s ) f o r the b u s i n e s s e l i t e ' s resumed i n t e r e s t i n the sewer i s s u e i s open to s p e c u l a t i o n .  The most  p l a u s i b l e p o s s i b i l i t y , i t i s suggested h e r e , i s t h a t the b u s i n e s s e l i t e made t h i s move i n an attempt to secure the f u t u r e s u p p o r t o f those r e s i d e n t s i n f a v o u r o f the sewer i s s u e . A second i s s u e i n the community - the Community H a l l question, further i l l u s t r a t e s D u r i n g the summer o f 1957 juveniles  the workings o f the power groups.  a number o f c r i m i n a l i n c i d e n t s i n v o l v i n g  o c c u r r e d i n Weston.  I n o v e r 80$ o f these c a s e s , the  j u v e n i l e s i n v o l v e d were from A r e a C. t e a c h e r from the l o c a l h i g h s c h o o l who  Under the l e a d e r s h i p o f a d i d not l i v e w i t h i n the  community, a v o c a l p r e s s u r e group o f A r e a C r e s i d e n t s was  formed.  A number o f meetings and d i s c u s s i o n s between some o f these r e s i dents and two t e a c h e r s from o u t s i d e the community l e d to the development  o f the n o t i o n t h a t a community h a l l would be a d e s i r a b l e  a d d i t i o n to the v i l l a g e .  A t e n t a t i v e s u b m i s s i o n was made to the  v i l l a g e c o u n c i l , at t h a t time d o m i n a n t l y n o n - b u s i n e s s e l i t e i n i t s composition.  The s u b m i s s i o n was r e j e c t e d on the b a s i s  that  the c o n s t r u c t i o n o f such a h a l l would l e a d to e x c e s s i v e debt. Subsequent  to t h i s r e j e c t i o n , Mr. B u r t o n , one o f the  teachers,  approached members o f t h e b u s i n e s s e l i t e w i t h t h e s u g g e s t i o n t h a t t h e c o n s t r u c t i o n o f a community h a l l would be p a r t i c u l a r l y in their interests.  The arguments o f f e r e d a t t h i s time were t o  the e f f e c t t h a t such j u v e n i l e i n c i d e n t s r e s u l t e d i n a burden o f property  damage f o r t h e merchant and a l s o , t h a t an amenity such  as t h e proposed community h a l l would encourage new r e s i d e n t s and t h e r e f o r e enhance t h e p o s s i b i l i t i e s o f commercial e x p a n s i o n . S h o r t l y a f t e r these d i s c u s s i o n s a s e r i e s o f a r t i c l e s i n t h e l o c a l newspaper, w r i t t e n by a member o f t h e b u s i n e s s e l i t e well-known i n t h e community, appeared s t r o n g l y i n f a v o u r o f t h e construction o f a community c e n t r e .  A m a j o r i t y o f the v i l l a g e c o u n c i l l o r s made  e x t e n s i v e u s e o f t h e i r powers u n d e r t h e M u n i c i p a l i t i e s A c t t o b l o c k a referendum w h i c h , however, was u l t i m a t e l y h e l d and p a s s e d . Branch's d i f f i c u l t i e s v i s - v i s t h e z o n i n g r e g u l a t i o n s may now be seen i n terms o f a l a r g e r and more h i s t o r i c a l c o n f l i c t t h a t o f the "business"  and " n o n - b u s i n e s s " i n t e r e s t s i n Weston.  At t h i s p a r t i c u l a r p o i n t i n time (1963) t h e " b u s i n e s s  elite",  a l t h o u g h as i n t e r e s t e d i n commercial e x p a n s i o n as e v e r , had o n l y one  r e p r e s e n t a t i v e on t h e f i v e man v i l l a g e c o u n c i l . 1  On l e a r n i n g o f t h e v i l l a g e c o u n c i l ' s d e c i s i o n the z o n i n g  r e g u l a t i o n s , W e l l s Jones c o n f e r r e d  with three of the  c o u n c i l l o r s i n an e f f o r t t o s e c u r e a r e - c o n s i d e r a t i o n . advised  a t t h i s time t h a t t h e p l a n s  regarding  He was  f o r t h e m a r i n a and p a r k  a d j a c e n t were "under way" and no r e - c o n s i d e r a t i o n was p o s s i b l e . A f t e r f u r t h e r d i s c o v e r i n g that the P r o v i n c i a l a u t h o r i t i e s could o r would do n o t h i n g  about t h e v i l l a g e c o u n c i l ' s z o n i n g  Jones and Branch c o n t a c t e d  C h a r l e s Pox.  decision,  J £5. Pox was o f the o p i n i o n t h a t i f a s u f f i c i e n t number o f p e r s o n s i n the community c o u l d be i n t e r e s t e d i n t h i s p a r t i c u l a r commercial e x p a n s i o n , i t s h o u l d be p o s s i b l e to b r i n g p r e s s u r e to b e a r on the c o u n c i l ' s d e c i s i o n and perhaps change i t . had a l r e a d y expended  Branch  a c o n s i d e r a b l e amount o f money on the  c o n s u l t i n g f i r m and had committed h i m s e l f to l e a s i n g the s i t e . He d e c i d e d t h a t r a t h e r t h a n abandon the i s s u e , he would work w i t h Pox and h i s s u p p o r t e r s and t r y to b r i n g p r e s s u r e upon the coundil decision. The f i r s t move i n t h i s d i r e c t i o n was a meeting i n w h i c h c e r t a i n key members o f the b u s i n e s s e l i t e were brought t o g e t h e r . Promt t h i s m e e t i n g emerged a g e n e r a l p l a n by which each p e r s o n p r e s e n t would c o n t a c t o t h e r s and attempt to b r i n g a c t i o n to b e a r a g a i n s t the c o u n c i l d e c i s i o n .  I n p a r t i c u l a r , the s u p p o r t o f  Tom  Grant* owner o f the o n l y newspaper i n Weston, was o b t a i n e d . S h o r t l y a f t e r t h i s meet ng, a s e r i e s o f a r t i c l e s i n the Weston G a z e t t e appeared s t r o n g l y i n f a v o u r o f commercial e x p a n s i o n i n g e n e r a l and the cannery p r o j e c t i n p a r t i c u l a r . Two days a f t e r the f i r s t o f t h e s e a r t i c l e s appeared, the v i l l a g e c o u n c i l h e l d a meeting the main aim o f which was to d e t e r m i n e p o l i c y v i s - a - v i s the b u s i n e s s e l i t e a g i t a t i o n .  The  g e n e r a l p o l i c y l i n e developed at t h i s time embodied two major aspects.  F i r s t l y , t h a t the f o u r out o f f i v e c o u n c i l l o r s who  agreed to oppose the a g i t a t i o n (as mentioned  earlier,  had  one  c o u n c i l l o r had c o n n e c t i o n s w i t h the b u s i n e s s community and cons e q u e n t l y d i s s e n t e d ) would u n d e r t a k e to e x p e d i t e c o m p l e t i o n o f the  p l a n s f o r the m a r i n a and p a r k development  and to g i v e t h e s e  p l a n s c o n s i d e r a b l y more p u b l i c i t y t h a n would u s u a l l y be case.  S e c o n d l y , the v i l l a g e c o u n c i l had  the  r e c e n t l y been  served  w i t h the n o t i c e ( s i n c e they h e l d a p r i o r l i c e n c e on the o f an a p p l i c a t i o n f o r a water l i c e n c e on O t t e r Lake by N o r t h l a n d s Company.  I t was  source) the  decided at t h i s meeting t h a t  the  v i l l a g e would p l a c e a f o r m a l o b j e c t i o n to the a p p l i c a t i o n w i t h the P r o v i n c i a l Water A u t h o r i t y on the b a s i s o f the p r i o r i t y t h e i r own The  of  licence. events i n Weston d u r i n g the n e x t f o u r months are  r a t h e r too d i f f u s e to be summarized h e r e .  B r i e f l y , the b a s i c  p o l i c i e s o f the b u s i n e s s and n o n - b u s i n e s s l e a d e r s had d e f i n e d r e s p e c t i v e l y i n terms o f a g i t a t i o n and  been  resistance  ( i n v o l v i n g the o f f e r i n g o f an a l t e r n a t i v e ) . Many meetings were h e l d , proponents o f the marine and p a r k sdheme purchased advert i s i n g space i n the l o c a l newspaper f o r p r o p a g a n d i z i n g t h e i r cause and  c e r t a i n o f the b u s i n e s s l e a d e r s c o n f e r r e d  o f the Cannery Workers U n i o n w i t h r e s p e c t  with  representatives  to a g i t a t i n g f o r the  cannery scheme as an answer to the unemployment w h i c h had  recently  a f f e c t e d some of the r e s i d e n t s of A r e a C. I n August, 1963, v i l l a g e c o u n c i l had  a p p r o x i m a t e l y f o u r months a f t e r the  rejected Northlands'  p l a n s f o r the Weston  s i t e , the v i l l a g e c o u n c i l d e c i d e d t h a t the cannery i s s u e reached s u f f i c i e n t p r o p o r t i o n s h o l d i n g of a referendum.  Two  had  i n the community to w a r r a n t  the  o t h e r i m p o r t a n t f a c t o r s , however,  no doubt i n f l u e n c e d the c o u n c i l ' s d e c i s i o n at t h i s time. the v i l l a g e ' s o b j e c t i o n (made by the c o u n c i l ) to water a p p l i c a t i o n on O t t e r Lake had  Firstly,  Northlands'  been s u s t a i n e d by the Water  A u t h o r i t y on the b a s i s t h a t t h e r e was  i n s u f f i c i e n t supply.  It  might be mentioned h e r e t h a t many o t h e r groups and persons had w a t e r l i c e n c e s on O t t e r Lake and t h a t they had a l s o p l a c e d o b j e c t i o n s when n o t i f i e d o£ the N o r t h l a n d s ' ' a p p l i c a t i o n . development the  This  meant t h a t t h e r e was l i t t l e a c t u a l p o s s i b i l i t y o f  cannery development  p r o c e e d i n g at Weston even i f the non-  b u s i n e s s i n t e r e s t s l o s t the referendum.  Secondly, recent h i g h -  ways c o n t r a c t s had been opened up w h i c h c o n s i d e r a b l y reduced the number o f unemployed i n A r e a C.  T h i s development had s e r v e d  to make the v o t e r s i n t h i s a r e a c o n s i d e r a b l y more i n t e r e s t e d i n measures to improve and b e a u t i f y the community such as the m a r i n a and p a r k p l a n .  I n any event, a m a j o r i t y o f t h o s e who  v o t e d i n a referendum h e l d d u r i n g September,  1963  d e c i d e d ±n  f a v o u r o f the m a r i n a and p a r k and r e j e c t e d the cannery d e v e l o p ment p r o p o s a l .  Subsequent  to t h i s development, Kenneth Branch  arranged to s u b - l e t the cannery b u i l d i n g f o r boat s t o r a g e purposes, t h r o u g h the m a r i n a development  committee.  b/.  T h e o r e t i c a l I m p l i c a t i o n s o f t h e Case L e t us now c o n s i d e r t h e f o r e g o i n g case r e l a t i v e t o the temporal d i m e n s i o n , p o l i t i c a l d i m e n s i o n and o t h e r a s p e c t s o f t h e c o n c e p t u a l scheme p r e s e n t e d i n Chapter 1 . The O r g a n i z a t i o n and i t s Environment I n t h i s c a s e , as i n t h e f o r e g o i n g one, events i n t h e e x t e r n a l environment o f t h e o r g a n i z a t i o n i n s t i g a t e d the d e c i s i o n process.  P r e s e n t e d w i t h t h e o f f e r by Pox, Branch was suddenly  f a c e d w i t h u n f o r e s e e n d i f f i c u l t i e s i n two r e s p e c t s .  Firstly,  to d e c l i n e the o f f e r might w e l l have l e d t o t h e e s t a b l i s h m e n t o f s e r i o u s c o m p e t i t i o n nearby.  Secondly, w h i l e a c c e p t i n g t h e  p o s s i b i l i t y p u t f o r w a r d by Pox would a v o i d t h i s i t would  then  open:;i many c o m p l i c a t e d q u e s t i o n s i n c a r r y i n g t h e d e c i s i o n t h r o u g h . F o r m a t i o n o f G o a l s : Search and Development o f E x p e c t a t i o n s The s c a r c i t y o f t e m p o r a l r e s o u r c e s a t the d i s p o s a l o f the o r g a n i z a t i o n (Branch h a d l l e s s t h a n two months i n which t o i n v e s t i g a t e and make a " f i n a l d e c i s i o n " ) i s r e f l e c t e d i n t h e r a t h e r h u r r i e d way i n which t h e s e p r o c e s s e s were c a r r i e d o u t .  The  time f a c t o r i n t h i s case may be seen i n r e l a t i o n t o t h e comments made e a r l i e r i n Chapter 1 w i t h r e s p e c t t o c e r t a i n l i m i t a t i o n s t o r a t i o n a l i t y i n t h e p r o c e s s e s o f s e a r c h and t h e development o f o r g a n i z a t i o n a l e x p e c t a t i o n s . I n t h i s case t h e l i m i t a t i o n s o f the s e a r c h procedure a r e most apparent i n t h e company s o l i c i t o r ' ^ f a i l u r e to a s c e r t a i n the formal p o s i t i o n o f the v i l l a g e  council  and, s e c o n d l y , i n n o t e x p l o r i n g f u l l y t h e p o s s i b i l i t i e s o f opp o s i t i o n t o t h e Cannery's  a p p l i c a t i o n f o r a water l i c e n c e .  Turning  to t h e q u e s t i o n  of o r g a n i z a t i o n a l expectations  and t h e i r r a t i o n -  a l i t y , I t h i n k t h a t Branch's d e c i s i o n t o " f i g h t i t o u t " w i t h the opponents to h i s scheme must be viewed as h i g h l y s p e c u l a t i v e l i t t l e r a t i o n a l guarantee o f r e t u r n s .  with  T h i s may, to some e x t e n t ,  be compared w i t h the d e c i s i o n o f the E l t o n management t o proceed w i t h t h e development o f the w h o l e s a l e o p e r a t i o n b e f o r e the "new t y p e " s t o r e experiment had been p r o v e n . R e t u r n i n g to the f o r m a t i o n  o f g o a l s a s p e c t o f the d e c i s i o n ,  h e r e - as i n the E l t o n case - the o r g a n i z a t i o n ' s  g o a l s emerged i n  response t o t h e problem r a t h e r t h a n e x i s t i n g b e f o r e h a n d . as i n the E l t o n c a s e , the i n f l u e n c e o f o t h e r o r g a n i z a t i o n s  Also, i n the  environment and t h e i r p r a c t i c e s i s r e f l e c t e d i n the l e v e l o f a s p i r a t i o n o f the g o a l s developed by the N o r t h l a n d s In t h i s connection,  organization.  i t w i l l be remembered t h a t Branch i n c o n s i d -  e r i n g the p o s s i b i l i t y o f e x p a n s i o n noted t h a t o t h e r c a n n e r i e s i n the a r e a had been e x t e n d i n g t h e i r  business.  Redefinitions I t i s i n t h i s a s p e c t o f t h e case t h a t the p o l i t i c a l and  dimension  t e m p o r a l d i m e n s i o n o f t h e d e c i s i o n are most c l e a r l y i l l u s t r a t e d  i n t h e i r r e l a t i o n to one a n o t h e r . siveness  I n terms o f the temporal e x t e n -  o f the d e c i s i o n , i t i s c l e a r t h a t t h i s was g r e a t l y l e n t h -  ened as a r e s u l t o f the r e s p e c t i v e p o l i t i c a l p o s i t i o n s assumed by B r a n c h and h i s opponents.  I n a d d i t i o n to t h i s , i f t h i s c o n f l i c t o f  i n t e r e s t s had n o t emerged o r s e r i o u s l y a f f e c t e d the outcome o f the d e c i s i o n , B r a n c h would have s t i l l been r e q u i r e d  to contend  with  the u n i o n w h i c h , i n terms o f i t s own p o l i t i c a l stand i n the m a t t e r , was concerned w i t h r e d e f i n i n g the d e c i s i o n .  As i n t h e E l t o n c a s e ,  a group w i t h o u t a u t h o r i t y v i s - a - v i s the d e c i s i o n ( t h e p h a r m a c i s t s  4J. and the v i l l a g e c o u n c i l , u n i o n and P r o v i n c i a l Government r e s p e c t i v e l y ) n o n e t h e l e s s had c o n s i d e r a b l e power to r e d e f i n e i t . D e f i n i t i o n o f the O r g a n i z a t i o n as a C o a l i t i o n As i n t h e type o f r e l a t i o n s h i p c o n s i d e r e d e a r l i e r between the E l t o n C h a i n and the t r a i n i n g c o l l e g e f o r p h a r m a c i s t s , the d e f i n i t i o n o f t h e o r g a n i z a t i o n as a c o a l i t i o n has p r o v e n to be a u s e f u l way o f a n a l y s i n g the i m p l i c a t i o n s o f t h e v i l l a g e  council,  u n i o n and P r o v i n c i a l Government v i s - a - v i s t h e t e m p o r a l and p o l i t i c a l dimensions o f t h e d e c i s i o n i n q u e s t i o n .  Por i n both  cases thus f a r c o n s i d e r e d , e n t i t i e s t e c h n i c a l l y o u t s i d e the b o u n d a r i e s o f t h e o r g a n i z a t i o n i n q u e s t i o n have n o n e t h e l e s s imp i n g e d upon and i n f l u e n c e d the p o l i t i c a l p r o c e s s e s o f t h e d e c i s i o n a t some p o i n t on the t e m p o r a l d i m e n s i o n . ( A t t h e r e d e f i n i t i o n stage o f the cases c o n s i d e r e d . )  GiHAP T E E Case 3:  The  G-resham  4 Cement  Company  10.  Description of the Organization i n Question In t h i s case, the organization i n question changed i t s form r a d i c a l l y over the period concerned.  P r i o r to  I960, i t  consisted of a number of sub-companies rather loosely tied together, f o r although the Gresham i n t e r e s t s held the c o n t r o l l i n g shares i n each of the sub-companies, i n many cases the companies had  t h e i r own managements.  sub-  While these sub-manage-  ments were ultimately responsible to the four man  Executive  Committee of the Gresham Cement Company, they nonetheless possessed  a c e r t a i n amount of decision making power which could  a f f e c t the organization as a whole. After I 9 6 0 , these sub-companies were formally dissolved into a single company—The Gresham Cement Company.  As w i l l be  seen from the ensuing discussion, t h i s change of organizational form i s intimately connected to the decisional process to be considered  here.  The Gresham Company (including the sub-companies when they existed) i s and has been throughout i t s h i s t o r y e s s e n t i a l l y a materials handling operation involved i n supplying cement, concrete mixes, gravel, etc. to contracting firms, private builders and so on. Referring to Figure 4:1,  I s h a l l now  the firm's operation i n f u l l e r d e t a i l .  attempt to describe  F i r s t l y , aggregates  (sand, gravel etc.) are mined at various gravel p i t locations (not shown on Figure) further up  (North-East) the r i v e r .  These  aggregates are then towed by the tugs and scows of the Marine D i v i s i o n of the firm to the Depots (Condor Street i s no,;  w  closed)  67. shown on the diagram.  The Depots are equipped with cranes or  conveyor belts and bunkers for the unloading and storage of the aggregates which are subsequently sold as such or used i n the production of concrete and cement mixes. The Decisional Process i n Question and I t s Approximate Time Span The decisional process considered here i s concerned  with  the Gresham Company's decision to modernize i t s aggregate hand l i n g and storage f a c i l i t i e s .  This involved extensive work at  the Greenford and Barnet Depots, the closing down of the Condor Street Depot i n favour of the development of the small Depot at B i r c h Island and f i n a l l y ,  changes to the Marine D i v i s i o n of  the firm which served these Depots. c i s i o n process i s approximately  The time span of the de-  four years.  The Actors The following persons or groups played s i g n i f i c a n t parts i n the decision process to be considered below. tioned now  They are men-  f o r reference.  E r i c Brown, Vice President, Production, Gresham Cement Co. The Executive Committee, Gresham Cement Co. E l g i n Management Consultants Inc. A.G. Wilson, Manager, Greenford Depot and Marine Division L.B. Bland, Manager, Condor Street Depot T.R.  Carr, Manager, Barnet Depot and Engineering D i v i s i o n  L. H e l l e r, Project Engineer, Engineering Division R. Simpson, Maintenance Engineer, Engineering D i v i s i o n  Richard Gallard, Vice President, Production (succeeding Brown)  E l i o t Henderson, Executive Vice President, Gresham Cement Co. E.G. Wiley, Controller, Gresham Cement Co. M.N.  Bater, Manager, Port City and Area Sales D i v i s i o n  S p e c i f i c Methods <• 1)  Personal interviews were obtained with Brown, Wilson,  Bland, Carr, K e l l e r , Simpson, Gallard and Bater. 2)  Documents and f i l e s pertaining to the Depot and Marine  D i v i s i o n modifications were made available as were organizational charts showing changes i n structure over time. Defining the Problem and I t s Background In 1956,  the Gresham Cement Company and i t s sub-companies  had been i n operation f o r over 40 years. t h i s was  One consequence of  that equipment and i n s t a l l a t i o n s at the tbree major  Depots (Barnet, Condor, Greenford) and the Marine D i v i s i o n were i n many cases approaching replacement.  stages c a l l i n g f o r costly repair or  In some cases, the sub-managements were i n the  process of carrying out highly inadequate  short term repairs  i n an e f f o r t to postpone the day when much more r a d i c a l measures would be demanded.  This s i t u a t i o n was mainly attributed (by  present management) to a lack of vigorous d i r e c t i o n from the Gresham Executive Committee of the time which could have united the various e f f o r t s of d i f f e r e n t sub-managements into a planned program of modernization. I t i s open to question, however, i f vigorous d i r e c t i o n on the part of the Gresham Executive Committee could have alone overcome the manifold d i f f i c u l t i e s presented by the organizational structure diagrammed i n Figure 4:2.  For example,  6S.  10.  a program cbo modernize the Barnet Depot i n any extensive sense (prior to re-organization) would have required &he of the Gresham Cement Co.,  the Barnet Brick Co.,  mentioned's subsidiary—Heath-Howard Co., Co.  A plan aimed at the modernization  co-ordination  the l a s t  and the Adam Concrete  of a l l four Depots and  the Marine D i v i s i o n would of course involve even greater d i f f i culty.  In addition to the repair and replacement d i f f i c u l t i e s  referred to, a r i v a l aggregate supply company was  i n the process  of modernizing c e r t a i n aspects of i t s handling, production d i s t r i b u t i o n systems.  and  Some members of the Gresham organization  perceived the increased e f f i c i e n c y r e s u l t i n g from t h i s as a threat to t h e i r own organization's market and p r o f i t Formation of Relevant In l a t e 1957,  share.  Goals  through a retirement, a new man  (Eric Brown)  came to the post of Vice President, Production, on the four Gresham Executive Committee.  Brown had previously managed one  of the sub-companies i n the Gresham organization and was informed  man  well  on the d i f f i c u l t i e s presently facing Depot and Marine  D i v i s i o n operations.  During the next two years, he directed  his e f f o r t s i n three major areas: 1)  to put the case f o r Depot and Marine D i v i s i o n moderni-  zation before the other members of the Executive Committee and gain t h e i r support f o r i t . 2)  to propose that measures be investigated toward the  end of reforming the Gresham organization into one company. 3)  that instead of waiting f o r these matters to take  place, c e r t a i n key s t a f f of the three major Depots and the  71. Marine D i v i s i o n whould begin to consult and plan together with respect to some overall plan f o r modernizing. By l a t e 1959,  the Executive Committee decided to import a  consulting firm known to Brown to explore the p o s s i b i l i t i e s of re-organization.  (As i s implied by the time elapsed, Brown's  proposal did not win immediate acceptance).  The firm i n question,  E l g i n Management Consultants Inc., studied the Gresham organization f o r approximately s i x months.  At the end of t h i s time,  a number of recommendations designed to form the organization into one company were brought forward.  Many of these recommen-  dations were implemented very quickly.  As one executive i n f o r -  mant expressed i t , "I know of several cases where a man had a high s t a f f p o s i t i o n at 9 am i n the morning and by 5 pm he was out".  Others resigned as a r e s u l t of substantially l o s i n g their  authority within the organization. A few weeks after the E l g i n Report, a new organizational chart was i n e f f e c t . produced, Figure 4:3)  (partly re-  By this arrangement, the four Depots  and the Marine D i v i s i o n we are concerned with were now  divisions  of the Gresham Cement Co. and part of one management system. Thus a major impediment to a program of modernization was largely eliminated. Information Gathering Processes and Development of Expectations In August, I960, a committee was formed &o investigate p o s s i b i l i t i e s of modernizing the Company's Depots and Marine Division.  This committee was composed of A.G. Wilson, manager  of the Greenford Depot and the Marine Division, L.B. Bland, manager of the Condor Street Depot, T.R.  Carr, manager at  7Z.  the Barnet Depot and head of the Engineering D i v i s i o n , L. K e l l e r , Project Engineer, Engineering  D i v i s i o n and R„ Simpson, Mainte-  nance Engineer, Engineering D i v i s i o n . A number of reports on the Depots and Marine Divisions were now  forthcoming from the members of the committee.  These  reports provided up to date information on the condition of equipment and i n s t a l l a t i o n s i n connection with the d i v i s i o n s considered  below.  They also put forward s p e c i f i c recommendations.  Greenford Depot: On Dec. 1, I960, a report submitted by I. K e l l e r on behalf of the committee pointed out that the storage bunkers at Greenford had been condemned by the Workmen's Compensation Board and that the crane servicing these bunkers was  i n very poor condition.  The estimated c a p i t a l cost of  replacements and repairs was  $305,000,00 with an annual saving  i n operating costs of $16,600—a return of about 5.5$. t h i s return was  considered  to be rather low,  Although  the report pointed  out that i n view of the p o s i t i o n taken by the Workmen's Compensation Board some measures would have to be taken very soon. Birch Island and Condor Street Depots: On Nov.  1, I960,  a report by K e l l e r pointed out that the bunkers and crane at the Condor Street Depot were badly i n need of repair. estimated c a p i t a l cost i n t h i s connection was  The  $115,000,00.  In  addition to t h i s , however, the Condor Street Depot suffered from t i d a l problems which meant that the aggregate carrying scows could not be unloaded at a l l times.  Coupled with i n e f f i c i e n t  equipment, this became a frequent cause f o r delays and losses.  production  K e l l e r recommended that these d i f f i c u l t i e s and repairs  7^.  would be avoided by improving the storage and unloading f a c i l i t i e s at the B i r c h Island Depot, thus permitting the closure of the Condor Street Depot.  The estimated c a p i t a l cost f o r the work  on Birch Island was $268,000.00 with an annual saving i n operating costs of $50,000.00—a return of about 18.5%. Marine D i v i s i o n : In a report dated February 24, 1961, written by A.G. Wilson, a very a t t r a c t i v e return was indicated on a proposed c a p i t a l investment i n Marine D i v i s i o n equipment. Three p r i n c i p a l reasons were l i s t e d f o r the (then) state of i n e f f i c i e n c y i n the D i v i s i o n : 1)  Tugs are old and underpowered.  2)  Shore f a c i l i t i e s are inadequate (bunkers, cranes) and  scows must be used as f l o a t i n g storage.  This makes i t impossible  to dispatch tows on e f f i c i e n t schedules. 3)  A f l e e t of 55 scows i s required to provide both towing  and storage services.  Of these 55 u n i t s , 19 are rented at an  annual cost i n excess of $100,000.00 and many of the remaining 36 owned by the Company are too old and too small to be e f f i c i e n t . The report recommended the purchase of two 2,000 ton s e l f unloading scows costing $275,000.00 each and repowering the M.V. "Poplar" at a cost of $75,000.00 so as to provide the company with a second tug comparable to the M.V. "Prince" f o r towing the two new barges.  This c a p i t a l expenditure of  $625,000.00 was expected to show an annual saving i n marine operations of $270,000.00, or 43%. However, this very large return on investment i n marine equipment could not be achieved without equipping the three  75.  Depots at Greenford:  Birch Island and Barnet with bunkers and  conveyors capable of receiving the discharge from a 2,000 ton self-unloading barge.  To so equip these Depots, Wilson estimated,  would require a c a p i t a l investment of $1,450,000.00 and would show an annual saving i n aggregate unloading and handling costs of $70,000.00, a return of about 5$.  Although t h i s low return  would not, of i t s e l f , j u s t i f y the expenditure f o r shore f a c i l i t i e s , the combined marine and shore saving of $340,000.00 represented a return of about 17$ on the combined c a p i t a l cost of $2,075,000.00. These findings led to a number of d i f f i c u l t i e s .  The  exigencies of the moment were c a l l i n g f o r a certain amount of expenditure with respect to Depot i n s t a l l a t i o n s .  Yet Wilson's  proposals f o r the Marine D i v i s i o n had a t t r a c t i v e aspects, part i c u l a r l y i n the long term sense.  At the same time, a proposal  to spend over 2 m i l l i o n d o l l a r s without investigation further to Wilson's report would encounter d i f f i c u l t i e s with the Exedutive Committee and Board of Directors.  Although, as suggested  earlier,  the climate of the Executive Committee toward organizational change had altered somewhat with the a r r i v a l of E r i c Brown. During this period of aggregate handling investigations, Brown l e f t the Company to manage one of h i s own.  His successor, Richard  Gallard, was a supporter of the same p o l i c i e s i n any event as was another successor to the Executive Committee, E l i o t Henderson, who  became Executive Vice President of the Gresham Company  during t h i s period. In early March, 1961, two committees were formed to investigate f u l l y Wilson's proposals.  The f i r s t committee  was  s e t the task of checking i n d e t a i l a l l c a l c u l a t i o n s as to  c a p i t a l expenditures  and  savings which Wilson had p r e d i c t e d .  Involved i n t h i s i n v e s t i g a t i o n were Wilson, F.G. Gresham's c o n t r o l l e r , and M.N. A r e a Sales D i v i s i o n .  Wiley,  B a t e r , manager of the Port C i t y  A second committee was  and  formed to d e s i g n  Depot i n s t a l l a t i o n s which would i n v o l v e low c a p i t a l c o s t , permit the use of s e l f - u n l o a d i n g scows, and charges  to a minimum.  reduce aggregate  T h i s committee was  comprised  handling  o f T.R.  L. K e l l e r and R.  Simpson, a l l of the E n g i n e e r i n g D i v i s i o n .  E x e c u t i v e Choice  and  Carr,  the Processes of R e d e f i n i t i o n  W i t h i n two months of the b e g i n n i n g of i n v e s t i g a t i o n s , s t a n t i a l i n f o r m a t i o n on c o s t s and able i n support of Wilson's  t e c h n i c a l changes was  p r e d i c t e d r e t u r n of 17%.  sub-  avail-  At  this  p o i n t , however, the E x e c u t i v e Committee s t i l l had r e s e r v a t i o n s concerning the l a r g e c a p i t a l expenditure t r a n s p i r e d , however, t h a t on May ment passed  involved.  12th, 1961,  It  now  the F e d e r a l Govern-  l e g i s l a t i o n to the e f f e c t t h a t a subsidy of  40%  would be p r o v i d e d i n r e s p e c t of a l l marine equipment b u i l t i n (name of the country)  shipyards.  T h i s event l e d to an immediate r e - e v a l u a t i o n o f the a t i o n by the c o s t s committee. a r e t u r n o f 19.9%  (over 17%)  e c u t i v e Committee now  calculations  on c a p i t a l expenditure.  indicated The  decided i n f a v o u r o f implementing  p r o p o s a l s and on J u l y , 1961, P r o d u c t i o n , submitted  The new  The p r o p o s a l was  Ex-  Wilson's  Richard G a l l a r d , Vice President,  a p r o p o s a l to the Board recommending t h a t  the Company expend $1,5000,000.00 f o r the modernization Depots at Barnet,  situ-  Greenford, accepted.  B i r c h I s l a n d and  of the  the Marine D i v i s i o n .  77.  I t i s d i f f i c u l t i n t h i s case to speak o f r e - d e f i n i t i o n o f t h i s d e c i s i o n by those a f f e c t e d by i t . l o s t t h e i r jobs,  Those most a f f e c t e d  F o r those who remained to o p e r a t e the new  equipment t h e r e i s a p p a r e n t l y  l i t t l e opportunity  to " r e d e f i n e  the new t e c h n i c a l p r o c e s s e s .  I t i s , r a t h e r , the work p r o c e s s  w h i c h " d e f i n e s " the a c t i o n s o f the worker i n v o l v e d i n i t .  0  78. T h e o r e t i c a l I m p l i c a t i o n s o f the Case L e t us now c o n s i d e r the f o r e g o i n g case r e l a t i v e to the t e m p o r a l d i m e n s i o n , p o l i t i c a l dimensions and o t h e r a s p e c t s o f the c o n c e p t u a l scheme p r e s e n t e d i n Chapter 1. The O r g a n i z a t i o n and i t s Environment As i n the c h a i n s t o r e and cannery c a s e s , c e r t a i n o c c u r e n c e s i n the environment o f the Gresham Cement Company may be seen as i m p o r t a n t i n f l u e n c e s v i s - a - v i s the d e c i s i o n j u s t d i s c u s s e d .  Two  major examples o f such i n f l u e n c e s are to be found i n the p r e s s u r e s brought to bear by the Workman's Compensation Board and the g e n e r a l program o f m o d e r n i z a t i o n c a r r i e d out by a competing f i r m . At the same t i m e , however, c e r t a i n events w i t h i n the company may a l s o be seen as i n f l u e n c i n g the c o u r s e o f the d e c i s i o n .  In part-  i c u l a r , I would suggest t h a t the appointment o f E r i c Brown as V i c e P r e s i d e n t o f P r o d u c t i o n r e s u l t e d i n a change o f m a n a g e r i a l p h i l o s o p h y w h i c h f a c i l i t a t e d the p r o g r e s s o f the d e c i s i o n . D e f i n i t i o n o f the Problem and F o r m a t i o n o f Goals I n the Gresham Cement c a s e , as i n the E l t o n Case, the p r o blems o f a g r e e i n g on a d e f i n i t i o n o f the o r g a n i z a t i o n ' s  difficul-  t i e s and the f o r m a t i o n o f g o a l s r e l a t i v e to t h e s e were t e m p o r a l l y extended by the disagreements r e s u l t i n g from the d i f f e r e n t i a l i n t e r e s t s of ohganizational sub-units.  I n b o t h cases the p a s s i n g  from the scene o f c e r t a i n i n d i v i d u a l s o r c o l l e c t i v i t i e s w i t h s p e c i f i c p o l i t i c a l i n t e r e s t s preceded the p o i n t where g o a l s became f u l l y a r t i c u l a t e d and o p e r a t i o n a l .  .(The r e t i r e m e n t o f Roger E l t o n  and r e s i g n a t i o n o f James W i l l i a m s i n the E l t o n c a s e ; the r e - o r g a n i z a t i o n o f the companies  i n the Gresham. case.)  I n a l l the cases c o n s i d e r e d up to t h i s p o i n t the f o r m a t i o n o f g o a l s has. been seen as a p r o c e s s emerging from the d e f i n i t i o n o f a problem  r a t h e r than p r e c e d i n g the problem.  The  process  o f a r r i v i n g a t such g o a l s through b a r g a i n i n g c a r r i e d on by  sub-  u n i t s o f the o r g a n i z a t i o n a l c o a l i t i o n i s p a r t i c u l a r l y v i s i b l e i n the E l t o n and Gresham c a s e s . A l s o mentioned  i n c o n n e c t i o n w i t h the E l t o n and  Northlands  cases has been the r o l e o f the p r a c t i c e s and e x p e r i e n c e s o f o t h e r o r g a n i z a t i o n s i n the environment  r e l a t i v e to the development o f  an a s p i r a t i o n l e v e l i n o r g a n i z a t i o n a l g o a l s .  I n the Gresham case  r e l a t i v e to t h i s , the m o d e r n i z a t i o n c a r r i e d out by the f i r m may  be viewed as analogous  competing  to the o p e r a t i o n o f o t h e r c h a i n  o p e r a t i o n s i n the U.S.A. i n the E l t o n case and a l s o to the e x p a n s i o n o f o t h e r , competing Search.and  c a n n e r i e s i n the N o r t h l a n d ' s c a s e .  Choice  A l t h o u g h the s e a r c h p r o c e s s e s r e l a t i v e to the Gresham case were r a t h e r more e x t e n s i v e ( f a i r l y complete  c o s t i n g and so  on)  t h a n i n the E l t o n o r N o r t h l a n d s c a s e s , one may  s t i l l observe  tendency  i n which  toward p o l i t i c a l i n t e r e s t s i n the way  d i v i s i o n engaged i n i t s own  s e a r c h and attempted  p o s a l s which would be i n i t s own b e s t i n t e r e s t s . mentioned  a  each  to p r e s e n t p r o I t might be  t h a t s i n c e the Marine D i v i s i o n ' s p r o p o s a l was i n e f f e c t  g i v e n p r i o r i t y and s t r o n g l y i n f l u e n c e d the n a t u r e o f the changes a t the o t h e r Depots,  t h i s p a r t i c u l a r d i v i s i o n has gained p r e s t i g e  w i t h i n the o r g a n i z a t i o n as a whole. o r g a n i z a t i o n may performed  L a s t l y , the p o l i t i c s o f the  be seen once a g a i n i n the i m p l i c i t b l o c k i n g a c t i o n  by the E x e c u t i v e Committee r e l a t i v e to the l a r g e  capital  S o .  e x p e n d i t u r e f i n a l l y proposed. D e f i n i t i o n o f an O r g a n i z a t i o n  as a C o a l i t i o n  I n theT'Elton and N o r t h l a n d s cases i t was suggested t h a t the d e f i n i t i o n o f t h e o r g a n i z a t i o n s  as c o a l i t i o n s was u s e f u l , f o r  a n a l y t i c a l p u r p o s e s , i n c o n s i d e r i n g how e n t i t i e s t e c h n i c a l l y o u t s i d e t h e o r g a n i z a t i o n might come to he i n v o l v e d i n t h e p o l i t i c a l and  t e m p o r a l dimensions o f an o r g a n i z a t i o n a l d e c i s i o n .  Relative  to t h i s i n t h e c o n t e x t o f t h e Gresham case i t may be seen t h a t the Workman's Compensation Board and t h e F e d e r a l Subsidy p l a y e d  Government  i n f l u e n t i a l r o l e s a s m i l a r to t h e p o l i c i e s o f  the p h a r m a c i s t ' s t r a i n i n g c o l l e g e i n t h e E l t o n case and t h e r o l e o f t h e v i l l a g e c o u n c i l and u n i o n i n t h e N o r t h l a n d s c a s e . F i n a l l y , viewing vided a perspective  t h e o r g a n i z a t i o n as a c o a l i t i o n has p r o -  f o r the d i s c u s s i o n o f the d i f f e r e n t i a l  e s t s h e l d by s u b - u n i t s  inter-  o f t h e o r g a n i z a t i o n p r i o r to t h e r e - o r g a n i -  z a t i o n and f o r e v a l u a t i n g t h e s i g n i f i c a n c e o f these i n t e r e s t s r e l a t i v e to t h e course o f t h e d e c i s i o n .  C HA P I E R Case 4:  5  The "X" University Case  D e s c r i p t i o n o f the O r g a n i z a t i o n The involved  i n Question  d e c i s i o n a l p r o c e s s to be d e s c r i b e d  i n t h i s case  c e r t a i n s u b - u n i t s o f U n i v e r s i t y X, i n p a r t i c u l a r , a  Department o f the i n s t i t u t i o n .  The  q u i t e l a r g e (between 10,000 and  20,000 e n r o l l m e n t ) and  w i t h the d i f f i c u l t i e s a s s o c i a t e d o f s t u d e n t s each y e a r . explored The  u n i v e r s i t y i n question i s i s faced  w i t h a r a p i d l y growing number  These i m p l i c a t i o n s , however, w i l l  be  later.  D e c i s i o n a l P r o c e s s i n Q u e s t i o n and  I t s Approximate Time Span  B r i e f l y , the d e c i s i o n a l p r o c e s s i n q u e s t i o n i s concerned w i t h the Department's attempt to s o l v e the problem o f an i n creasing  enrollment i n i t s introductory  of t e l e v i s i o n teaching  methods.  up f o r s e r i o u s c o n s i d e r a t i o n  c o u r s e through the  use  T h i s p o s s i b i l i t y f i r s t came  i n May,  1963.  I t i s s t i l l underway  at the p r e s e n t time ( J a n u a r y , 1964). The  Actors Dean K e n t , Dean o f the F a c u l t y  at X U n i v e r s i t y .  Dean S e a r s , Dean o f I n t e r - f a c u l t y A f f a i r s at X U n i v e r s i t y . Mr.  Borden, Head o f the Department at X U n i v e r s i t y .  Mr.  Timmins, P r o f e s s o r  Mr.  Simpson, A s s i s t a n t P r o f e s s o r  Mr.  01ark, A s s i s t a n t P r o f e s s o r  Mr.  H o l l i s , Head, Teaching S e r v i c e s  Mr.  Morris,  i n the Department. i n the Department,.  i n the Department.  Department, X U n i v e r s i t y .  T e l e v i s i o n S p e c i a l i s t , Teacher Training-  Division, X Univeristy. The  Maintenance Department, X U n i v e r s i t y .  83. Mr.  Ballard,  s a l e s r e p r e s e n t a t i v e of the Edgeware Supply  A member of the  Department of another  Company.  university.  Head of the V i s u a l Aids Department of another  university.  The students e n r o l l e d i n the i n t r o d u c t o r y course i n q u e s t i o n at X university. S p e c i f i c Methods The  s p e c i f i c methods employed i n t h i s case are as f o l l o w s :  1)  P e r s o n a l i n t e r v i e w s were obtained with Timmins, C l a r k ,  Simpson, H o l l i s , M o r r i s , B a l l a r d and a Mr. was  Armitage,  a lecturer  in  the i n t r o d u c t o r y course who  not, however, d i r e c t l y i n v o l v e d  in  the d e c i s i o n i n the sense t h a t the o t h e r a c t o r s were. 2)  The a n a l y s i s of documents and f i l e s  p e r t a i n i n g to the  3)  A q u e s t i o n n a i r e (copy and d e t a i l s u n d e r l e a f ) administered  case.  to  students present i n the c l a s s e s of the i n t r o d u c t o r y course  h e l d on January  15,  1964.  D e f i n i n g the Problem and Formation  of Relevant  Goals  During the s e s s i o n 1962-63* the i n t r o d u c t o r y course i n q u e s t i o n had an average to  an i n i t i a l r e g i s t r a t i o n of approximately  attendance  of about 450.  600  with  A l a r g e auditorium was  accomodate the students d u r i n g t h i s s e s s i o n , although  used  this  presented a number o f problems i n the p r e s e n t a t i o n of blackboard and other v i s u a l m a t e r i a l . expected  With an i n i t i a l  enrollment of  i n the s e s s i o n 1963-64, i t became apparent  750  that the  e x i s t i n g method of accomodating a l l the students i n one room could no l o n g e r c o n t i n u e . Three i n s t r u c t o r s had been a v a i l a b l e to teach the  course  8f. d u r i n g 1962-63.  Since each was  branch of the d i s c i p l i n e i t was  a specialist i n a  (and the course was  convenient to have one l e c t u r e r  so on.  a g e n e r a l overview)  handle one p a r t of the  course f o r 2-g- months, and another l e c t u r e r months and  different  handle  the next 2-g-  T h i s arrangement, however, depended on a l l  the students being i n one room and f o r the coming s e s s i o n 1963  t h i s was  now  (September) - 1964  With t h i s problem i n view, Mr.  c l e a r l y impossible (April).  Borden, head of the  ment, began to c o n s i d e r (mid-May, 1963)  Depart-  p o s s i b l e s o l u t i o n s . Prom  these c o n s i d e r a t i o n s emerged the i d e a of h o l d i n g the course i n rooms l i n k e d  by t e l e v i s i o n .  To expand upon t h i s , the  would present h i s m a t e r i a l " l i v e " i n one room; a camera i n t h i s room would p i c k up to o t h e r rooms equipped screens.  I n t h i s way,  television  and r e l a y h i s image and  with t e l e v i s i o n  sound  s e t s or image r e p r o d u c i n g  the i n c r e a s e d number of students could  be accomodated without  severe crowding,  presented i n such a way  v i s u a l m a t e r i a l could be  t h a t a l l might see, the number of l e c -  t u r e r s would not need to be i n c r e a s e d and, ment whereby each man  lecturer  finally,  the  taught h i s s p e c i a l i t y would be  arrange-  continued.  I n f o r m a t i o n Gathering Process and Development o f E x p e c t a t i o n s . In connection w i t h the p o s s i b i l i t y of employing Mr.  Borden asked Mr.  television,  Timmins, a p r o f e s s o r i n the Department, to  a d v i s e Dean Sears, Dean of I n t e r - F a c u l t y A f f a i r s , about the p r o p o s a l i n o r d e r t h a t rooms and definite  decision.  would c o n t a c t M . r  times could be kept open pending  Secondly, Mr.  Borden asked Mr.  a  Timmins i f he  H o l l i s o f the Teaching S e r v i c e s Department o f  the u n i v e r s i t y to see what i n f o r m a t i o n o r a d v i c e he c o u l d concerning Mr.  provide  the p o s s i b i l i t i e s o f a t e l e v i s i o n arrangement. Timmins s u b s e q u e n t l y  c o n t a c t e d Mr. H o l l i s to f i n d  out  what types o f p o s s i b i l i t i e s e x i s t e d , e m p h a s i z i n g a t t h i s time t h a t c o s t s would have to be k e p t at a minimum.  Mr.  H o l l i s suggested  t h a t i t would p r o b a b l y be p o s s i b l e to equip one room w i t h a camera and  the o t h e r two rooms w i t h p r o j e c t o r s and  screens o r a  number o f 23 i n c h m o n i t o r s f o r under | 2 0 0 a month by r e n t i n g the equipment from the Edgeware Supply Company.  Mr. H o l l i s  was  f a m i l i a r w i t h the Edgeware S p p l y Company's l i n e o f equipment, U  for  they had  e a r l i e r provided  the f a c i l i t i e s f o r an  educational  t e l e v i s i o n hook-up i n the t e a c h e r t r a i n i n g d i v i s i o n o f U n i v e r s i t y X.  Mr.  Timmins r e q u i r e d some a d d i t i o n a l i n f o r m a t i o n about the  use o f t e l e v i s i o n , however, and concerned Mr. H o l l i s , was  so the m a t t e r ,  i n s o f a r as i t  l e f t t e m p o r a r i l y i n abeyance.  C o n c e r n i n g t h i s a d d i t i o n a l i n f o r m a t i o n , b o t h Mr. and Mr. for  Timmins had  A p r i l , 1963  seen a s h o r t r e p o r t i n a u n i v e r s i t y p e r i o d i c a l  i n which was  d e s c r i b e d the use o f e d u c a t i o n a l  t e l e v i s i o n i n the Department o f a n o t h e r u n i v e r s i t y . happened, Mr.  Borden  C l a r k , a l e c t u r e r who  As i t  would be t e a c h i n g the I n t r o -  d u c t o r y Course a t U n i v e r s i t y X d u r i n g 1 9 6 3 - 6 4 was  i n the  city  Oat t h i s time e a r l y June) where the u n i v e r s i t y r e f e r r e d to i n the p e r i o d i c a l was Mr.  located.  I n t h i s c o n n e c t i o n , Mr.  Simpson ( a l e c t u r e r a t U n i v e r s i t y X who  Timmins askled  would be  teaching  the I n t r o d u c t o r y Course i n 1 9 6 3 - 6 4 ) i f he c o u l d o b t a i n some a d d i t i o n a l i n f o r m a t i o n as to how had  'Vorked o u t " .  the p r o j e c t a t the o t h e r u n i v e r s i t y  86. On June 11,1963, Mr. Simpson wrote to a member o f the Department at the o t h e r u n i v e r s i t y and a l s o to Mr. C l a r k i n order to o b t a i n some i n f o r m a t i o n .  Meanwhile, Mr. Timmins had w r i t t e n  to Dean Sears, Dean o f I n t e r - F a c u l t y A f f a i r s on June 7, 1963, w i t h a g e n e r a l o u t l i n e o f the change the department had i n mind. The of  c h i e f purpose o f t h i s communication was to keep the q u e s t i o n room and t i m e t a b l e assignments f l e x i b l e u n t i l some s o r t o f  d e c i s i o n was reached. On June 17, 1963, Mr. Simpson r e c e i v e d a r e p l y from a member o f the other u n i v e r s i t y s t a t i n g t h a t f u l l d e t a i l s on t h e i r i n s t a l l a t i o n were being forwarded by the s u p e r v i s o r o f v i s u a l a i d s at t h a t u n i v e r s i t y . Meanwhile, on June 18th,  1963, Mr. Simpson r e c e i v e d a  l e t t e r from Mr. C l a r k i n which the l a t t e r r e p o r t e d on the r e s u l t s o f h i s d i s c u s s i o n s and o b s e r v a t i o n s  a t the other u n i v e r s i t y . H i s  l e t t e r mentioned that the use o f t e l e v i s i o n was c o n s i d e r a b l y more complicated  than he had p r e v i o u s l y r e a l i z e d ,  p o i n t e d out here t h a t with the exceptions Teaching  ( i t might be  o f Mr. H o l l i s o f the  S e r v i c e s Department and Mr. M o r r i s o f the Teaching  T r a i n i n g D i v i s i o n , i . e . persons o u t s i d e the X U n i v e r s i t y Department, none o f the o t h e r i n d i v i d u a l s i n v o l v e d i n the d e c i s i o n a l process,  except the s u p p l i e r s o f the equipment, could be s a i d  to have s p e c i a l i z e d knowledge about the use o f t e l e v i s i o n i n educational s e t t i n g s ) .  Mr. C l a r k ' s l e t t e r a l s o r e f e r r e d to the  wide range o f euipment a v a i l a b l e and the c o n s i d e r a b l e expense i n v o l v e d i n such i n s t a l l a t i o n s .  Also on June 18, 1963, Mr.  87. Simpson r e c e i v e d a r e p l y from the S u p e r v i s o r of V i s u a l Aids at the other u n i v e r s i t y i n which was  p r o v i d e d a d e s c r i p t i o n of the  equipment i n use at that u n i v e r s i t y , a c o s t breakdown on the equipment and a l i s t f o r i n f o r m a t i o n and  o f s i x t e e n f i r m s which might he contacted equipment.  S h o r t l y a f t e r Mr. responses  Timmins d i s c u s s e d w i t h Mr.  Simpson the  to these e n q u i r i e s , he contacted Mr. H o l l i s of the  Teaching S e r v i c e s Department and requested a more f o r m a l s t a t e ment of what equipment p o s s i b i l i t i e s were a v a i l a b l e w i t h i n the p r e v i o u s l y mentioned cost e x p e c t a t i o n (under $200 per month). Mr. H o l l i s r e p l i e d by l e t t e r  (|une  25th, 1963)  indicating  that  a l i n e of equipment c o u l d be rented from the Edgeware Supply Company f o r not more than $180  per month.  T h i s equipment con-  s i s t e d of the grade of V i t i c o n camera a v a i l a b l e w i t h i n t h i s p r i c e range and a c h o i c e between (or a combination o f ) a number o f 23inch monitors or two r e p r o d u c t i o n purposes  l a r g e r screen p r o j e c t i o n u n i t s f o r  i n the rooms connected  to the " l i v e " room.  Based l a r g e l y on the d a t a from the use of t e l e v i s i o n i n the Department of the o t h e r u n i v e r s i t y was  used), Mr.  (where a p r o j e c t o r  Timmins decided i n favour o f u s i n g screens  p r o j e c t o r s r a t h e r than monitors.  On J u l y 22nd, 1963,  Mr.  wrote Mr. H o l l i s and requested that he enter i n t o a f i r m  system and Timmins arrange-  ment with the Edgeware Supply Company concerning the r e n t a l o f t h i s equipment f o r the academic year 1963-1964 at a f i g u r e o f not more than $180  per month.  88, E x e c u t i v e Choice and the P r o c e s s e s o f R e d e f i n i t i o n T e c h n i c a l l y , Mr. Timmon's l e t t e r to Mr. H o l l i s c o u l d he viewed as the making o f a c h o i c e , a l t h o u g h i n t h i s case the o n l y a l t e r n a t i v e i s s u e s i n v o l v e d r e l a t e d to the use o f m o n i t o r s o r the use o f p r o j e c t o r s and s c r e e n s . i f i t may  I n any event, t h i s c h o i c e ,  he r e f e r r e d to as such, by no means r e p r e s e n t e d the  end o f the d e c i s i o n p r o c e s s i n q u e s t i o n . to c o n s i d e r a b l e subsequent  R a t h e r , i t was s u b j e c t  r e d e f i n i t i o n by those persons i n v o l v e d  i n i t s making and a l s o , u l t i m a t e l y , by the s t u d e n t s who be a f f e c t e d by  came to  it.  Very s h o r t l y a f t e r Mr. Timmin's l e t t e r to Mr.  Hollis  r e q u e s t i n g t h a t the l a t t e r e n t e r i n t o a f i r m arrangement w i t h the Edgeware Supply Company, Dean Kent, Dean o f the f a c u l t y a t X U n i v e r s i t y , expressed i n a l e t t e r to the head o f the Department h i s g e n e r a l o p p o s i t i o n to the p r o p o s a l to the use o f t e l e v i s i o n methods i n the i n t r o d u c t o r y c o u r s e .  H i s l e t t e r suggested  such  a l t e r n a t i v e s as the use o f mimeographed n o t e s and. w i r e and  tape  r e c o r d e r s as means o f c o p i n g w i t h i n c r e a s e d e n r o l l m e n t . I n response to t h i s o p p o s i t i o n , the Department p r e s e n t e d as arguments the r e a s o n s which had o r i g i n a l l y s u p p o r t e d the p r o p o s a l to use t e l e v i s i o n . t u a l l y approved  As i t t r a n s p i r e d , Dean Kent  even-  the Department"s p l a n to emply t e l e v i s i o n . D u r i n g  the i n t e r i m p e r i o d , however, c e r t a i n members o f the Department proceeded w i t h the numerous m a t t e r s to be attended to i f t e l e v i s i o n was  to be implemented  i n time f o r September l e c t u r e s , even  though t h e r e was no assurance a t t h i s time t h a t Dean Kenf's v a l would be f o r t h c o m i n g .  appro-  83.  Thus, on August 12th, Morris ask  1963,  Mr.  Simpson wrote to  Mr.  of the Teacher T r a i n i n g D i v i s i o n T e l e v i s i o n System to  (on the suggestion  of Mr.  B a l l a r d , one  of the  representatives  o f the Edgeware Supply Company) i f i t would he p o s s i b l e to two  cameras and  a c o n t r o l console  for  the purposes of a demonstration organized  from the D i v i s i o n ' s equipment  1963.  the u n i v e r s i t y on August 21st,  Mr.  by Mr.  Morris  run u s i n g Mr.  B a l l a r d at  agreed to  and  on August 21st,  and  a p r o j e c t o r u n i t from the Edgeware Supply Company.  s t a n d i n g was  a t r i a l was  use  this  M o r r i s " equipment The  that the Edgeware Supply Company would l a t e r  underprovide  the camera o f the type a v a i l a b l e w i t h i n the r e n t a l fee and the  second p r o j e c t o r , p r e s e n t l y on order,  that  would be provided  as  soon as i t a r r i v e d . Apart from Mr.  B a l l a r d and Mr.  l e c t u r e r s i n the i n t r o d u c t o r y  Morris,  course, Mr.  two  Simpson and  were also present  at the demonstrations which was  a success.  Since  the f i r s t  ember 16th,  1963,  i t was  the c o - a x i a l w i r i n g  day  now  of l e c t u r e s was  ( f o r transmission  and  of the introductory course.  came under the  Mr.  three Clark,  considered  to be on  U n i v e r s i t y which g e n e r a l l y r e q u i r e d  inter-communication  been e a r l i e r assigned The  wiring  the  that a l l such work be c a r r i e d  s t a f f to ensure the standard  of the work done.  necessary t h a t the  very  c o i n c i d e very w e l l w i t h  t h i s d i d not  for  operation  I n t h i s case, however, i t was q u i c k l y and  be  Sept-  j u r i s d i c t i o n o f the Maintenance Department o f  out by t h e i r own  to  necessary to proceed q u i c k l y with  purposes) of the three rooms which had the t e a c h i n g  o f the  Maintenance Department's schedule at t h i s time.  job be done the  As a r e s u l t of  v9C t h i s , an arrangement the  had to he worked out whereby a crew from  Edgeware Supply Company i n s t a l l e d  v i s i o n o f a Maintenance  Department o f f i c e r .  On September 16th, the f i r s t was  not y e t complete  the w i r i n g under the super-  day o f l e c t u r e s , the w i r i n g  and only one p r o j e c t o r was  a v a i l a b l e . Con-  sequently, t h i s l e c t u r e and the next (September  18th) were can-  celled.  I t became apparent at t h i s p o i n t t h a t the second p r o -  j e c t o r was  not going to a r r i v e f o r two weeks o r so and  some i n t e r i m arrangement  would r e q u i r e to be made.  therefore  On September  20th, a l e c t u r e was h e l d i n which one o f the p r o j e c t o r s was  used  w h i l e f o u r monitors had been brought i n t e m p o r a r i l y to take the p l a c e o f the m i s s i n g p r o j e c t o r . arrangement  F i g u r e 5:1 reproduces the  at t h i s p o i n t i n time.  L e c t u r e s were a l s o h e l d  Monday, September 23rd and Wednesday, September 25th. ember 27th, however, the microphone f a i l e d cancelled.  During the f i r s t  On  on  Sept-  and the l e c t u r e  was  three l e c t u r e s the p r o j e c t o r and  s c r e e n u n i t had not f u n c t i o n e d w i t h the q u a l i t y o f image which had been seen at the t r i a l run on August 21st,  1963.  Over the weekend o f September 27th - 30th, Mr.  Hollis  of  the u n i v e r s i t y ' s Teaching S e r v i c e s Department and Mr.  of  the Edgeware Supply Company experimented w i t h v a r i o u s types o f  screens i n an e f f o r t to secure an a c c e p t a b l e image.  Ballard  I t soon  became apparent, however, t h a t the d i f f i c u l t y was w i t h the camera b e i n g used, a r e l a t i v e l y i n e x p e n s i v e model.  I t w i l l be remembered  t h a t the Teacher T r a i n i n g D i v i s i o n ' s camera, a much more expensive 1  model, had been used at the t r i a l  of August  j e c t o r and s c r e e n u n i t s had performed  21st where the p r o -  satisfactorily.  3Z.  As  a consequence of these t e c h n i c a l problems, i t was  necessary to r e p l a c e  the p r o j e c t o r u n i t w i t h f o u r 23  monitors as were being used i n Room B. much too l a r g e f o r the e f f e c t i v e use these were p l a c e d (See  Figure  5:2  was  conseqently  becoming the  " l i v e " room.  f o r the arrangement as of September 30th, 1963.)  Supply Company was on o r d e r .  Room C, however,  of monitors and  i n Room A, Room C now  Since p r o j e c t o r u n i t s were now  i t had  inch  required  not  to be used, the Edgeware  to c a n c e l the other p r o j e c t o r u n i t  T h i s r e s u l t e d i n the Edgeware Supply Company  p a y i n g a c a n c e l l a t i o n charge o f $200 to another s u p p l i e r . The  i n s t a l l a t i o n of monitors d i d not r e s u l t i n the  a t i o n of t e c h n i c a l problems and more or l e s s continued I n t h i s connection, for  during  delays.  the f i r s t  Rather, such d i f f i c u l t i e s few  weeks o f  operation.  i t might be noted t h a t the f i r s t  duty-sheet  p u t t i n g on the l e c t u r e s r o u t i n e l y d i d not  October 27th and T h i s now  t h i s was  appear u n t i l  i n f a c t s u b j e c t to f u r t h e r changes.  opens the q u e s t i o n  technical innovation.  of student r e a c t i o n s to  Some p r e l i m i n a r y  enquiries  course were r e d e f i n i n g or seeking  i n favour ups  to r e d e f i n e the  the  (December,  i n d i c a t e d t h a t at l e a s t some students e n r o l l e d i n the  d e c i s i o n by  cess-  1963)  introductory  television  such methods as a v o i d i n g the t e l e v i s i o n l e c t u r e s  of the l i v e l e c t u r e s ( i n t h i s connection,  began to form o u t s i d e  t a l k i n g , reading  and  the l i v e room before  long  line-  l e c t u r e s ) , by  g e n e r a l l y engaging i n a c t i v i t y not r e l a t e d  to the l e c t u r e when i n the t e l e v i s i o n rooms and  by w r i t i n g  c r i t i c a l or f a c e t i o u s l e t t e r s about the i n t r o d u c t o r y the student newspaper.  course to  33.  I n an attempt  to explore f u r t h e r  of these o b s e r v a t i o n s and e n q u i r i e s , l e a f ) was d i s t r i b u t e d introductory response  a q u e s t i o n n a i r e (see under-  to those students i n attendance  course l e c t u r e o f January 15th, 1964.  a t the  Total  to the q u e s t i o n n a i r e was 372 students, 244 o f these  were p o l l e d  i n the l i v e room, the remaining 128 responding b e i n g  i n the two t e l e v i s i o n rooms. l),  some o f the i m p l i c a t i o n s  As may be seen from Table 1  there i s a h i g h c o r r e l a t i o n between a t t e n d i n g l i v e  and b e i n g p o l l e d  ('Question  lectures  i n the l i v e room and a l s o between a t t e n d i n g  television lectures  and b e i n g p o l l e d  Of 372 respondents, o n l y 22 i n d i c a t e  i n the t e l e v i s i o n rooms. that  they attend about the  same number o f l i v e and t e l e v i s i o n l e c t u r e s . Turning to Table 2 (Question 2 ) , i t may be seen that a preference f o r l i v e lectures  e x i s t s among both those p o l l e d i n  the l i v e room and i n the t e l e v i s i o n rooms. respondents  preferring  l i v e lectures  The percentage o f  i s much h i g h e r , however,  among the l i v e room group than i t i s among the t e l e v i s i o n rooms (93$ as opposed to 55$).  I t i s probable, however, that  f l e c t s a process o f accomodation mentioned above, l i n e - u p s p r i o r to a l e c t u r e .  by t e l e v i s i o n s t u d e n t s .  invariably  As  form o u t s i d e the l i v e room  Since the l i v e room can o n l y h o l d  250 people, some are excluded.  this r e -  about  Those excluded are g e n e r a l l y  those who a r r i v e l a t e because o f a p r e c e d i n g l e c t u r e - thus they are u s u a l l y  l a t e every time and have to some extent become  accustomed to the t e l e v i s i o n rooms. The remaining Tables (3, 4 and 5) a l l suggest that a m a j o r i t y o f students, p o l l e d rooms, f e e l :  i n both the l i v e and t e l e v i s i o n  3 + .  Ql.  Please check the item below which most closely corresponds with your own attendance. 1.  I attend more T.V. lectures than l i v e lectures i n Sociology 200.  2. • 3.  I attend about the same number of each. I attend more l i v e lectures than T.V. lectures i n Sociology 200.  Q2. I f you were asked to express your preference for either T.V. or l i v e lectures i n Sociology 200, which of the folio-wing statements most closely approximates your feelings? 1.  Q3.  04.  _.  I prefer the T.V. lectures.  2.  I prefer the l i v e lectures.  3.  I t makes no difference.  I f there was a p o s s i b i l i t y that T.V. lectures might be offered i n other courses, would you be: 1.  Very pleased  2.  F a i r l y pleased  3.  Indifferent  4.  Somewhat displeased  5.  Very displeased  Comparing the l e v e l of attention by students i n T.V. lectures i n Sociology 200 as opposed to l i v e lectures i n Sociology 200, would you say: 1.  The l e v e l of attention i n T.V. lectures i s higher than i n l i v e lectures. The l e v e l of attention i n T.V. lectures i s lower than i n l i v e lectures. The l e v e l of attention i s about the same i n both types of lectures.  2. 3.  Q5. In a lecture room i t i s always possible to do something other than l i s t e n to the lecturer. Examples of t h i s "other a c t i v i t y " would be t a l k i n g , reading, writing letters and so on. Please indicate the degree to which you have observed such behaviour i n T.V. lectures as opposed to l i v e lectures. 1. 2. 3. 4.  :  There i s much more of this type of a c t i v i t y i n the T.V. lectures. There i s s l i g h t l y more of this type of a c t i v i t y i n the T.V. lectures. The amount of such a c t i v i t y i s the same i n both types of lectures. There i s less of this type of a c t i v i t y i n T.V. lectures than there i s in l i v e lectures.  Q6. Please l i s t the courses you are taking t h i s year, other than Sociology 200, which have more than 250 students i n ore room. Q7. Please l i s t these courses, including Sociology 200, i n order of preference below. Q8. Please f e e l free to state, on the back of this sheet, any complaints you may have about T.V. lectures, any d i f f i c u l t i e s or problems you would l i k e to see changed and f i n a l l y , the positive and desirable aspects of the T.V. method.  r  ^8.  /OO.  1)  "somewhat" o r " v e r y " d i s p l e a s e d about the p r o p e c t  of t e l e v i s i o n l e c t u r e s being o f f e r e d i n other courses. 2)  t h a t the l e v e l o f a t t e n t i o n i n t e l e v i s i o n l e c t u r e s  i s l o w e r than i n l i v e 3 )  lectures.  t h a t a c t i v i t y o t h e r than l i s t e n i n g to the l e c t u r e ,  such as r e a d i n g o r t a l k i n g , i s "much more" o r " s l i g h t l y more" i n t e l e v i s i o n l e c t u r e s than i n l i v e I n response  lectures.  to Q u e s t i o n 8, the most common problems  mentioned by s t u d e n t s r e l a t e d to i n a d e q u a c i e s i n the t e c h n i c a l arrangements, such as poor sound, ppor image, time wasted i n " s e t t i n g up" b e f o r e l e c t u r e s , and the moise and  distractions  emanating from o t h e r s t u d e n t s i n the t e l e v i s i o n rooms d u r i n g lectures.  I t seems c l e a r from the q u e s t i o n n a i r e d a t a and some  g e n e r a l o b s e r v a t i o n s i n the t e l e v i s i o n rooms t h a t a number o f s t u d e n t s have r e d e f i n e d the d e c i s i o n i n one way o r a n o t h e r .  The  e x p r e s s i o n o f t h e i r p o s i t i o n , however, has been on an i n d i v i d u a l p l a n e r a t h e r than t h a t o f an o r g a n i z e d  collectivity.  IQI.  T h e o r e t i c a l I m p l i c a t i o n s o f the Case I s h a l l now c o n s i d e r the t e l e v i s i o n case and some a s s o c i a t e d a s p e c t s o f the f o r e g o i n g cases i n terms o f the p o l i t i c a l and t e m p o r a l dimensions and o t h e r elements o f the c o n c e p t u a l scheme p r e s e n t e d i n Chapter  1.  The O r g a n i z a t i o n and i t s Environment In  the t e l e v i s i o n c a s e , as i n a l l those p r e c e d i n g i t ,  changes and c i r c u m s t a n c e s i n the e x t e r n a l environment o f the o r g a n i z a t i o n may  "be seen as p l a y i n g a s i g n i f i c a n t p a r t i n the  decision process.  I n the t e l e v i s i o n case t h e s e i n f l u e n c e s and  f a c t o r s a r e to he found i n the growth o f the number o f s t u d e n t s e n r o l l e d i n the i n t r o d u c t o r y course and i n the form o f the example s e t by the o t h e r u n i v e r s i t y i n t u r n i n g to t e l e v i s i o n methods. f o r m a t i o n o f Goals In the  the cases c o n s i d e r e d to date i t has been suggested t h a t  development  o f o r g a n i z a t i o n a l g o a l s r e l a t i v e to a g i v e n  problem emerged a f t e r the problem p r e s e n t e d i t s e l f r a t h e r t h a n e x i s t i n g beforehand i n w e l l a r t i c u l a t e d form.  T h i s may  a l s o be  seen i n the t e l e v i s i o n case where the p r o p o s a l to use such a method r e s u l t e d from the problem, t h a t i s the i n c r e a s e d  enrolment.  The n o t i o n o f an a s p i r a t i o n l e v e l i n o r g a n i z a t i o n a l g o a l s d e v e l o p i n g from the p r a c t i c e s and s u c c e s s e s o f o t h e r o r g a n i z a t i o n s i n the  environment has been r e f l e c t e d i n the p r e v i o u s cases ( e . g . the  o t h e r c h a i n o p e r a t i o n s , the expanding c a n n e r i e s and the competing cement company).  The r o l e p l a y e d by the o t h e r u n i v e r s i t y ' s  tele-  v i s i o n system may  be seen as s i m i l a r to t h e s e examples r e l a t i v e  tol.  t o the g o a l s developed by U n i v e r s i t y  "X".  Search P r o c e d u r e s and the Development o f E x p e c t a t i o n s C e r t a i n l i m i t a t i o n s to r a t i o n a l i t y i n o r g a n i z a t i o n a l s e a r c h have been p a r t i c u l a r l y noted i n c o n n e c t i o n w i t h two o f the f o r e g o i n g c a s e s .  P o r example, I would r e f e r to the r e l a t i v e l y  s h o r t s e a r c h (and absence o f e x t e n s i v e p r e l i m i n a r y c o s t i n g ) i n the E l t o n case and a l s o to the apparent o v e r s i g h t s d i s c u s s e d r e l a t i v e to the s e a r c h p r o c e d u r e s c a r r i e d out by the company s o l i c i t o r i n the N o r t h l a n d s c a s e .  I n the t e l e v i s i o n c a s e , a l t h o u g h  a l i s t o f s i x t e e n p o s s i b l e s u p p l i e r s was Edgeware Supply Company was c o n t a c t e d .  a v a i l a b l e , o n l y the I t might a l s o be noted  t h a t a f t e r the Edgeware Supply Company became i n v o l v e d i n the d e c i s i o n i t was  t h i s c o n c e r n which conducted most o f the e n s u i n g  s e a r c h r a t h e r t h a n o f f i c e r s o f the U n i v e r s i t y .  F u r t h e r to t h i s ,  i t w i l l be remembered t h a t Mr. Timmins r e q u e s t e d Mr. H o l l i s , J u l y 22, 1963  on  to e n t e r i n t o a f i r m arrangement w i t h the Edgeware  Supply Company f o r the r e n t a l eqipment.  At t h i s p o i n t i n time  the equipment to be r e n t e d had not a c t u a l l y been g i v e n a t e s t r u n a t the U n i v e r s i t y .  L a s t l y , i n t h i s c o n n e c t i o n , as a r e s u l t  o f these l i m i t a t i o n s to the completeness o f i n f o r m a t i o n d e r i v e d from the s e a r c h p r o c e d u r e , the e x p e c t a t i o n s h e l d by o f f i c e r s o f the U n i v e r s i t y r e l a t i v e to the outcome o f the d e c i s i o n changed over time. Redefinitions The p o l i t i c a l d i m e n s i o n o f o r g a n i z a t i o n a l d e c i s i o n making has been i l l u s t r a t e d i n the m a n a g e r i a l disagreements over p o l i c y i n the E l t o n c a s e , the subsequent  r o l e o f the p h a r m a c i s t s i n t h a t  c a s e , the d i f f e r e n t i a l i n t e r e s t s between the cannery,  village  council and union i n the Northlands case and i n the d i f f e r e n t interests held hy sub-units of the Gresham Company both before and after reorganization.  In the t e l e v i s i o n case, the p o l i t i c a l  dimension of the decision may be seen i n the position assumed by Dean Kent and subsequently i n the p o s i t i o n taken by aonumber of the students enrolled i n the introductory course.  The p o s i t i o n  taken by Dean Kent may be related to the r a t i o n a l i t y of expectations i n the t e l e v i s i o n case i n much the same way as Branch's decision to go ahead despite an unclear outcome may be viewed i n the Northlands case.  S i m i l a r l y , the role played by the students i n  extending the temporal dimension of the t e l e v i s i o n case may be. seen as closely related to the part played by the pharmacists i n the Elton case.  Lastly, the d e f i n i t i o n of the organization  as a c o a l i t i o n has provided a perspective from which the influence of such d i f f e r e n t i a t e d i n t e r e s t s v i s - a - v i s the decision has been analysed.  CHAP  I.. E R 1  6  A Study of Decision Making Processes i n Pour Complex Organizations: Theor e t i c a l Implications and Conclusions.  The b a s i c concepts which were d i s c u s s e d now  i n Chapter 1 have  been somewhat a m p l i f i e d by the subsequent d i s c u s s i o n of  i l l u s t r a t i v e cases. organizations  I t i s now  four  i m p o r t a n t to note t h a t a l t h o u g h  which have been c o n s i d e r e d  the  are t e c h n o l o g i c a l l y q u i t e  d i f f e r e n t , c e r t a i n d e c i s i o n making themes have been r e c u r r e n t . T h i s suggests tthd; p o s s i b i l i t y o f now  o f f e r i n g c e r t a i n general  and  i n t e r - r e l a t e d p r o p o s a l s about o r g a n i z a t i o n a l d e c i s i o n making p r o c e s s e s which l e n d c o n c e p t u a l u n i t y to the examples s t u d i e d which w i l l a l s o have a n a l y t i c u t i l i t y w i t h r e s p e c t d e c i s i o n p r o c e s s e s y e t to be c o n s i d e r e d Proposal  i n the  and  to o r g a n i z a t i o n a l  future.  One  " D e f i n i t i o n s o f Problems", "Formation o f G o a l s " , " I n f o r m a t i o n G a t h e r i n g P r o c e s s e s and "Executive  Choice and  the Development of  Expectations",  the R e d e f i n i t i o n o f D e c i s i o n s " may  be  seen  as i d e n t i f i a b l e u n i t s s e q u e n t i a l l y arranged on the temporal continuum of o r g a n i z a t i o n a l d e c i s i o n making.  Inasmuch as any  them may  be areas f o r the e x p r e s s i o n  of o r g a n i z a t i o n  they may  be s a i d to form, singlyA;." o r i n c o m b i n a t i o n , the  i c a l d i m e n s i o n o f o r g a n i z a t i o n a l d e c i s i o n making. p o l i t i c a l " a r e a s " may 1) and  be d i s c e r n e d  of  politics, polit-  Thus the major  i n each c a s e :  the d e f i n i t i o n o f the problem, f o r m a t i o n  of- g o a l s  d e c i s i o n a l r e d e f i n i t i o n a s p e c t s o f the E l t o n case. 2)  the d e c i s i o n a l r e d e f i n i t i o n a s p e c t of the N o r t h l a n d s  3)  the f o r m a t i o n  case. o f g o a l s and  executive  choice  aspects  o f the Gresham c a s e . 4) "X"  case.  the d e c i s i o n a l r e d e f i n i t i o n a s p e c t s o f the U n i v e r s i t y  Proposal  Two  I t i s proposed  t h a t a more r e a l i s t i c account o f o r g a n i -  z a t i o n a l d e c i s i o n making p r o c e s s e s w i l l r e s u l t i f these u n i t s a l o n g the temporal continuum  are viewed as b e i n g h i g h l y v a r i a b l e .  A major cause o f such v a r i a t i o n s , i t i s argued h e r e , i s the o p e r a t i o n o f d i f f e r e n t i a l and changing p o l i t i c a l f o r c e s and i n t e r e s t s w i t h i n the o r g a n i z a t i o n .  T h i s would enable one, f o r  example, to a v o i d c e r t a i n d i f f i c u l t i e s ( r e f e r r e d to i n Chapter pages 13 and 14) i m p l i c i t i n e s s e n t i a l l y r a t i o n a l i s t i c  1,  concep-  t i o n s o f o r g a n i z a t i o n a l g o a l s , s e a r c h and c h o i c e . Thus, f o r example, the cases p r e s e n t e d here q u e s t i o n the v i e w o f o r g a n i z a t i o n s as h a v i n g a s e t o f w e l l a r t i c u l a t e d  a  p r i o r i g o a l s i n terms o f which they approach the s o l u t i o n o f t h e i r problems.  R a t h e r , i n every case c o n s i d e r e d h e r e , g o a l s  have emerged as a consequence o f problems. p o s s i b l e to i d e n t i f y d i f f e r e n t i a l g o a l  I t has a l s o been  sets with d i f f e r e n t i a l  p o l i t i c a l i n t e r e s t s , p a r t i c u l a r l y i n the E l t o n , N o r t h l a n d s Gresham c a s e s .  and  F u r t h e r to t h i s , the r o l e o f o t h e r o r g a n i z a t i o n s  i n the environment  has been r e f l e c t e d i n the g o a l f o r m a t i o n p r o c e s s  i n terms o f o r g a n i z a t i o n a l l e a r n i n g and o r g a n i z a t i o n a l  aspiration  level. S i m i l a r l i m i t a t i o n s to r a t i o n a l i t y have been observed i n c o n n e c t i o n w i t h o r g a n i z a t i o n a l s e a r c h and the development o f e x p e c t a t i o n s , p a r t i c u l a r l y i n the E l t o n , N o r t h l a n d s and U n i v e r s i t y "X" c a s e s . lified  The c o n c e p t i o n o f e x e c u t i v e c h o i c e has a l s o been amp-  t h r o u g h the i n t r o d u c t i o n o f the p o l i t i c a l d i m a n s i o n  which  has been e x e m p l i f i e d by the p r o c e s s e s o f r e d e f i n i t i o n i n the E l t o n , N o r t h l a n d s and U n i v e r s i t y "X" cases and by the r o l e o f the E x e c u t i v e Committee i n the Gresham c a s e .  107.  Proposal  Three  The e v i d e n c e from a l l f o u r cases s t r o n g l y suggests t h a t the p o l i t i c a l d i m e n s i o n d i r e c t l y a f f e c t s the t e m p o r a l d i m e n s i o n o f o r g a n i z a t i o n a l d e c i s i o n making.  F o r example, the t e m p o r a l e x t e n -  s i v e n e s s o f the g o a l f o r m a t i o n p r o c e s s i n b o t h the E l t o n and Gresham cases was a d i r e c t consequence o f the o p e r a t i o n o f d i f f e r e n t i a t e d " p o l i t i c a l " i n t e r e s t s w i t h i n b o t h these o r g a n i z a t i o n s . Ways i n which the t e m p o r a l d i m e n s i o n o f d e c i s i o n making might a f f e c t o r g a n i z a t i o n a l p o l i t i c s have o n l y been s l i g h t l y e x p l o r e d i n the p r e s e n t r e s e a r c h .  I t might be suggested, however, t h a t the  s c a r c i t y o f t e m p o r a l r e s o u r c e s i n the N o r t h l a n d s case d i d have an e f f e c t on the p o l i t i c a l d i m e n s i o n o f t h a t d e c i s i o n .  The  role  o f the t e m p o r a l d i m e n s i o n i n t h i s c o n n e c t i o n w i l l r e q u i r e to be 1 f u r t h e r examined i n l a t e r developments  o f the c o n c e p t u a l scheme.  S i n c e the " a r e n a s " o f o r g a n i z a t i o n p o l i t i c s ( d e f i n i t i o n s o f problems, f o r m a t i o n o f g o a l s e t c . ) have been seen to be t i a l l y arranged on the t e m p o r a l d i m e n s i o n , i t may  sequen-  become  a n a l y t i c a l l y p o s s i b l e to p r e d i c t p o l i t i c a l developments  in a  d e c i s i o n a l p r o c e s s through a c o n s i d e r a t i o n o f those p a t t e r n s which have emerged a l o n g the t e m p o r a l d i m e n s i o n .  A study o f the  t e m p o r a l d i m e n s i o n o f an o r g a n i z a t i o n a l d e c i s i o n may way"  " p o i n t the  to p o l i t i c a l a s p e c t s o f such d e c i s i o n s which might o t h e r w i s e  he o v e r l o o k e d o r c o n c e a l e d . P r o p o s a l Four The f i n a l p r o p o s a l to be o f f e r e d h e r e r e l a t e s to the. 1 The book :,t Man, Time and S o c i e t y by W i l b e r t E. Moore p r e s e n t s an i n t e r e s t i n g d i s c u s s i o n o f the r o l e o f the t e m p o r a l v i s - a - v i s a number o f areas o f human a c t i v i t y .  u t i l i t y o f d e f i n i n g o r g a n i z a t i o n s as c o a l i t i o n s i n the study o r g a n i z a t i o n a l d e c i s i o n making.  Firstly,  the c o a l i t i o n d e f i n i t i o n  w i t h i t s i m p l i c a t i o n s o f s u b - u n i t s , b a r g a i n i n g and for  scarce resources  understandable  i n f o r m s and r e n d e r s  competition  s u b s t a n t i a l l y more  the o p e r a t i o n o f the p o l i t i c a l d i m e n s i o n a t  p o i n t i n o r g a n i z a t i o n a l d e c i s i o n making.  of  any  I t has, f o r example,  been p o s s i b l e to r e c o g n i z e the o p e r a t i o n o f d i f f e r e n t i a l i n t e r e s t s i n each o f the cases r e p o r t e d . has  allowed the s u s p e n s i o n  Secondly, the c o a l i t i o n d e f i n i t i o n  o f the a r b i t r a r y temporal and  func-  t i o n a l b o u n d a r i e s of the o r g a n i z a t i o n at c r u c i a l p o i n t s on temporal d i m e n s i o n i n o r d e r to a s s e s s , as p a r t o f the  the  political  d i m e n s i o n , the s i g n i f i c a n t impingement o f e n t i t i e s w h i c h would g e n e r a l l y be regarded  as b e i n g o u t s i d e the sphere o f the o r g a n i -  zation i n question. The g e n e r a l p r o p o s a l s about o r g a n i z a t i o n a l d e c i s i o n making which ha\re been d e r i v e d from the a p p l i c a t i o n o f the scheme o r model p r e s e n t e d  i n Chapter 1 are i n t e n d e d  conceptual as o r i e n t a t i o n s  to be employed i n f u r t h e r r e s e a r c h and are c e r t a i n l y not statements of any k i n d .  final  Perhaps what the model most u r g e n t l y  r e q u i r e s i s to be employed many more times i n f i e l d s t u d i e s o f other organizations.  As such d a t a i s gathered  b o t h the c o n c e p t u a l r e f i n e m e n t o f hypotheses which may  i t will  permit  o f the model and the f o r m u l a t i o n  be r i g o r o u s l y t e s t e d .  I n w o r k i n g toward  these g o a l s , I would agree w i t h M a r i o n Levy's o b s e r v a t i o n t h a t , " i f one r e f u s e s to proceed w i t h a system of a n a l y s i s u n t i l he i s sure o f i t s t e n a b i l i t y , one i s r e f u s i n g to s e t up t o o l s f o r a  task u n t i l the task i t s e l f i s already' accomplished."  2  2 Marion J . Levy, "Some Problems f o r a U n i f i e d Theory o f Human Nature", E.A. T i r y a k i a n , S o c i o l o g i c a l Theory, Values and S o c i o c u l t u r a l Change, The Free P r e s s , Glencoe, 1963, p.14.  LITERATURE CITED B l i s h e n , B.R., "The C o n s t r u c t i o n and Use o f an Occupational C l a s s S c a l e " , Canadian S o c i e t y , Toronto, The MacMillan Company o f Canada L i m i t e d , 1961. Brown, W., E x p l o r a t i o n i n Management, New York, John Wiley and Sons, I960. Burns, Tom, " M i c r o p o l i t i c s : Mechanisms o f I n s t i t u t i o n a l Change", A d m i n i s t r a t i v e Science Q u a r t e r l y , V o l . VI, 1961-62. Chamberlain, N., Management i n Motion, New Haven, Labor and Management Center, Y a l e U n i v e r s i t y , 1950. Cyert, R.M., H.A. Simon, and D.B. Trow, "Observation o f a Business D e c i s i o n " , J o u r n a l o f Business,XXIX (October 1956). Cyert, R.M., W.R. D i l l , and J.G. March, "The l o l e o f E x p e c t a t i o n s i n Business D e c i s i o n Making", A d m i n i s t r a t i v e Science Q u a r t e r l y , V o l . I l l , (December 1958). Cyert, R.M., and J.G. March, A B e h a v i o r a l Theory o f the Firm, P r e n t i c e H a l l , New J e r s e y , 1963. Cyert, R.M., and J.G. March, "A B e h a v i o r a l Theory o f O r g a n i z a t i o n a l O b j e c t i v e s " , Modern O r g a n i z a t i o n Theory, ed. M. H a i r e , New York, Wiley, 1959. Harvey, E., "Some I m p l i c a t i o n s o f T e c h n i c a l and Supervisory Change i n a Government Water A u t h o r i t y " , Unpublished paper, 1963. Harvey, E., " C o n f l i c t and Pharmacy: Some I m p l i c a t i o n s o f I n t e r n a l D i f f e r e n t i a t i o n " , Unpublished paper, 1963. Hornosty, R.W., Unpublished r e s e a r c h , 1963. Jaques, E l l i o t t , The Changing C u l t u r e o f a F a c t o r y , New York, Dryden Press, 1952. Levy, Marion J,., "Some Problems f o r a U n i f i e d Theory o f Human Nature", S o c i o l o g i c a l Theory, Values, and C u l t u r a l Change, Free P r e s s , 19637 ' . March, J.G., "The Business F i n n as a P o l i t i c a l J o u r n a l o f P o l i t i c s , V o l . 24, 1962. March, J.G., and H.A. Simon, O r g a n i z a t i o n s , 1958.  Coalition",  New York, Wiley,  Melman, S., D e c i s i o n Making and P r o d u c t i v i t y , Oxford, B a s i l B l a c k w e l l , 1958. Moore, ¥il"bert E., Man, and Sons, 1963.  Time and S o c i e t y , New York, John Wiley  Thorner, I . , "Pharmacy: The F u n c t i o n a l S i g n i f i c a n c e o f an I n s t i t u t i o n a l Pattern , S o c i a l F o r c e s , XX; 1941-4-2. 1  

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