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Aktouf, Omar - Management and Theories of Organizations
Aktouf, Omar - Management and Theories of Organizations
The author would like to express his gratitude to Professors Didier Van den Hove, Richard
D6rY, Allain Joly, and Thierry Pcmchani for reading and commenting on this text, as well as to
Andr^ Cyr for his editorial assistance with the final version of this article.
408 Academy of Management Review July
A quick glance at the most influential managerial writings since the end
of the 1970s clearly shows that theory is turning in circles within the tradi-
tional framework of utilitarian functionalism and neoclassical economic
thought (e.g., Burrell & Morgan, 1979; Caill6, 1989; Chanlat & S^guin, 1987;
Etzioni, 1989; Perrow, 1986). Japan's sweeping conquest of world markets
seems mainly responsible for the debates heralding this era of management
theory (Lee, 1980; Ouchi, 1981; Pascale & Athos, 1981; Peters & Waterman,
1982).
1992 Aktouf 409
cams had rendered more and more dull and meaningless. An eloquent
example of this are the hundreds of posts defined as suitable for the men-
tally and physically handicapped by Henry Ford, I, and his organizational
engineers in setting up the assembly line for the Model T, especially since
the logic at work was that "a portion of a man would be paid a portion of
salary" (Toffler, 1980: 71; Sievers, 1986a).
With the economic success of the Japanese (and also, though on differ-
ent bases, the Germans and Swedes), other concepts and factors of success
began to surface. The objectives are no longer to make products faster and
faster at the lowest cost but to produce them better, more "creatively," and
more reliably. The era of quality has been extended to the business firm;
now, all employees must be active and intelligent paTticipants. Yet tradi-
tional management is not prepared for this change. And, in a more serious
vein, management lacks the conceptual and theoretical means to grasp the
magnitude of coming upheavals. Straitjacketed in traditional theory, solidly
anchored in functionalism and the ideology of consensus, many manage-
ment theorists cannot see that such dramatic shifts in the factors of success
require an equally dramatic shift in management philcsophy and in the
conception of work and the worker. There can be no common measure
between the employee who is expected to "do more faster and faster" in
passive obedience and the employee from whom management expects
constant initiative and creativity. We may even wonder if the latter em-
ployee can be "managed" at all. Yet we have witnessed a proliferation of
new "how tos": how to construct a "good corporate culture," how to "man-
age symbols," how to generate and distribute "good values," how to create
"champions" and other "skunkworks" (term used by Peters [1987] to mean
the kind of hero/champion who is bold and maverick enough to be a stan-
dard bearer for the passion of excellence).
However, we have yet to see all the members of Western business firms
miraculously stand as one in an organization imbued with dialogue, en-
thusiasm, complicity, and mutualism. No sweeping analysis is needed to
realize the cruel lack of an adequate theoretical framework. For almost a
century, functional-consensus theories have been masking the welter of
conflicts and contradictions undermining both the discipline and practice of
management.
Before engaging in a more direct analysis of this conceptual mask and
of certain theoretical discrepancies between the problems posed and the
solutions proposed, I would like the reader to take a closer look at the main
themes and actors appearing in the quest for a more humanized firm.
If there is, in fact, a major point of convergence for the many streams of
this quest, it would be the central importance of the human person or per-
sonal attitudes and behavior at work. No matter the trend or topic: corporate
culture (Deal & Kennedy, 1982; Ouchi, 1981; Peters & Waterman, 1982);
actualization of human intelligence and resources (Crozier, 1989; Peters &
Austin, 1985; Waterman, 1987); total quality and the revival of the work ethic
1992 Aitouf 411
(Burr, 1984; Juran & Gryna, 1980; Mintzberg, 1989; Peters & Austin, 1985); the
workplace as a place for dialogue and sharing (DePree, 1989; Peters, 1987;
Peters & Austin, 1985; Weitzman, 1984); or the recent discussion of the mis-
deeds of most Western managers, tainted as they are with economism,
shortsightedness, utilitarianism, and mechanistic technicism (Etzioni, 1989;
Mine, 1990; Mintzberg, 1989), what stands out most clearly is a persistent call
to put the human element first. But what human element? Are we speaking
in terms of a holistic vision of humankind, or of a fragmentary perception of
one of its aspects? Not one of these writings mentions the concern for a
"global theory of humankind." Who is this person that we want to actualize,
liberate, and acculturate? To whom do we want to restore meaning in the
workplace? With whom do we want to share? Is it the person we no longer
want to treat like an instrument of short-term profits? This person is, in fact,
constantly implied; he/she is considered a given. (As Nord [1974] rightly
pointed out, Maslow [1954, 1969] and Argyris [1957] are almost the only
mainstream writers on management to show any real concern for a "non-
industrial" definition of the "Man." But they are scarcely ever mentioned.) It
is as if we need only call on this person and tell him or her that we
earnestly want him or her to embrace the right culture and symbols, to join
the team, and become a champion. It is as if there were no need to have a
clearer idea of the reasons, events, and circumstances that might bring
about such a metamorphosis. Cbviously, such clarity can be gained only if
we are wiUing to take the point of view of the employee who is, after all. the
"human element" that these theories want to promote. Thus, it is necessary
to construct a vision of the person other than that conveyed by the theoret-
ical framework to be overcome.
There is a clear need to abandon management based on authority, on
an order imposed by the organization, on the successive waves of scientism
that have invaded the field (e.g.. Taylorism, behavioral sciences, decision
making, management information systems, office systems, and robotics).
The solution is to open the way for managerial practices that will permit
development of the employee's desire to belong and to use his or her intel-
ligence to serve the firm.
Such practices will never be conceived unless radical questions are
asked about what, until now. has apparently been the major stumbling
block: the conception (and treatment) of the worker as an instrument of
production, as some sori of "needs-driven mechanism." as a rational and
avid maximizer of profits, as a resource to be exploited and monitored, as a
cost to be controlled and minimized.
For example, advocates of theories of renewal and second wind give
no thought to a theory of the person which, if joined to a new theory of the
organization, might facilitate the advent of an empioyee who is wiUing to
adopt corporate goals. This is where such theories fall short. Hence, it now
seems imperative to find a transition from a form of management in which
the employee is seen as a passive cog, to one in which he or she becomes
412 Academy of Managemenf Review JiUy
apparently MandBm and Kbri Marx. However, it is riot easy to find one's
way, clearly cpid simply, through whaX counti^js Mandan Kihools and al-
legiances have statai or l ^ d on humanism. Therefore, I must add a iaw
essential Aeoretical precautiors.
Based on several well-known spedaliste on the subject (Calvez, 1970;
Fromm, 1961,-Gramsci, i971;Heilbroner. 1970, 1980; Koiakow^, 1968, 1978;
Lucaks, 1971)—while not minimizing the nuances and sometimes major
differenoBS between them—I can at least justify the decision to consider the
work of Maix as a whole, the so-cxallad "mature" works {especially Capital)
being framed by and rooted in early works (particularly the Manuscripts of
1844). I c^ree with Kolakowski that "all Marx's critical writings (the 1844
Manuscripts; Misery of Pbilosopby from 1847; Wori, Salary an?J Capita/ from
1849; Grundisse from 1857-1858; ContribuWon to the Critic of Political-
Economy from 1859 and, finally. Capital) are just so many more and more
refined versions of a single Une of thought" (1987: 376). But Kolakowski also
added that although "it is a fact that Marxian terminology and expression
changed between 1844 and 1867," the driving unity of Marx's thought can be
found in the unrelenting search for tha conditions dehumanizing man and
for possible w a ^ of restoring more human conditions (1987: 377).
I am inclined to beUeve—espedaUy in light of Grundisse—that Capital
can be considered, at various (more structural) levels, as tha and of the
quest that was begun with the Manuscripts, a quest initially more normative
and anthropological:
"the right man at the right plctce" is ov^, and the tkne has come fcs" the
employee who knaws how (and is allowed) to think, to react, to modify, and
so on. The time has cxime for the err^Dloyee to do more than tbe job requires
(e^jeciaily qualitatively).
This is tiie type of environment that the much sought-after firm will
build, because such a firm can result only through the combined eSorts of
individuals who are driven by the desire to axiperate, and this cooperation
will be expressed through freedom of speech, greater autonomy, equity,
and conviviality of all members. Such a firm will need all the synergy
available from most—if not all—of the minds compcssing it (including those
of its employes) in order to improve its ability to invent original solutions,
the sole nraponse to the complexity that is recognized as caie of the major
challenges facing today's mcmagers (Atlan, 1985; Morgan, 19^; Varela,
1980).
The list could be expanded. But the elements already enumerated
clearly show that there is a call for nothing less than a new type of employe
and new work relations, firms, and management as well.
Th« employee. The idea of conceiving an adequate theoretical frcane-
work suitable to this renewed concern for meaningful work, creativity, part-
nership, interest and accountability, dialogue, initiative, personal commit-
ment, and so on must first be tempered by an understanding of what has
stood in the way of all these ideas for nearly three centuries. Yet, the theory
ol alienated work, if e^imined, is incontestably the deepest and richest
framework for understanding how to correct the dead end of productivity in
traditional industry. Restoring the meaning of work and allowing the ap-
propriation-commitment sought by corporate culture and total quality de-
pends on nothing less than putting an end to the following four estrange-
ments of alienated work recorded in Marxtet tradition: (a) estnangement
from the product—the employee has no control over the procera, the rea-
sons, the clients, the profits; (b) estrangement from the act of work—a break
perfected by Taylorism where employees are rediKsd to mus::nilar or men-
tal stores of energy who accomplish tc^ks that are never their own but
always dictated aikl imposed by bosses, assembly-line speed, machines,
corporate goals, and strategies; (c) estrangement from nature—working
hours make time an artificial, saleable product, as opposed to ihe natural
time of tiie seasons, the cycle of day and night, and th© biological clock,
siibstituting ihe satisfaction of natural needs with these dictated by mcaiey
and capital, to the detriment of nature itself; (d) Mtrangement from the
humon element—workers are estranged kam iheir essence as generic be-
ings with the free will to create their own surroundings arKl themselves, and
they are put in ciwiflict with OSIOTS who use and esploit th^n and who
then^elv^ ai^ alieruxted by tb» laws of cxipital.
All these phenomena must be undei^ood "V^aen the role of the meaning
of work in stimijilating worirais' mc^tvotion and interest ^ discussed, be-
cause it is ^aeae phraiomena that have rxdsbed industri<d work oi its mean-
ii^. Hestoiiiig meaning to w<xk wHl mean ti^ managem must accept—
after almcfflt a century of management aimed at negorting or mceking it—
1992 A^ouf 419
the fact that aUenation from work is at the very heart of the problem erf the
worker's commitment and motivatksn (Braverman, 1974; Dejours, 19K);
Pagdsetal., 1984; Pfeffer, 1979; Sievers, 1986a,b).
Almcffit all the authors of contemporary management best-sellers agree
that facilitating the development of a new type of employee means &e
evolution of a new kind of firm. Wheth^ it is caUed exceUent or third type or
open, it would still be a firm in which relations and the rules of the game wUl
have changed radically. To rephrase Orgogozo and Serieyx (1989), it is now
really imperative to envision something other than reliMitless attempts to
influfflice and change (essentially) only employee behavior, while almost
evCTything else remains the same. It has now become rracessary to cl-uange
the rules and the very nature of the power and control that trciditions per-
petuate in our organizations. After all, what eke is being asked if not th©
^tablishment of working conditions that will awaken in the employee the
desire to cooperate, to create? Because such a change must be a lived
experience and it can neither be contrived nor commanded, there is only
one possible solution: Workers must experience tiieir relation to thMr work
as a real, rather than a formal, appropriation. What they do in the firm must
be experienced as a real extension of themselves, as an occasion for self-
expr^ion as well as for the pursuit and satisfaction of personal desires and
interests that converge with those of the firm. Thus, the firm would b®;ome
a place for partnership and dialogue, a workplace no longer run on the
intenfflve use of work force.
Surprisingly enough, this new trend seems to encompass one of Marx's
most cherished principles: aJboiifion of wages. Whether explicitly or not,
many authors are advocating this principle, most often with reference to
Japanese forms of remuneration (largely tied to corporate profits). TMs m the
case for Weit2man at the MassachusMits Institute of Technology (1984); for
Peters (1987), who calls for profit sharing as part of remuneration; for Perrow
(1979), who writes that control and coercion will be the only ways (more
costly than profitable) to obtain maximum productivity as long as th© salary
system is the rule; for Etchego^n (1990), who feels that salaries turn em-
ployees into mercenaries working in soultess enterprtees (the "mercencny"
element is seen here as an obstacle to individual commitment—a person no
longer satisfied with doing what is asked, who has neitiier interest rK3r
"soul").
At the present time, strong American and European trends are b^ng
shaped that will demand that an oiganizatlon become a plqce where the
employee can feel and act as a thinking, speaking, cmd qu^tioning suk^»ct
(Crozier, 1989; Dejours, 1980; Girin, 1990; Morgan. 1986; Sainsaulieu, 19B3).
This would he the i ^ o e where the emi^oyee could find his c? l^r essential
ovaikibility, interest, and creativity. In otlm words,ti::^3eare fee cwKiitUjns
for the cKlvent of vital worir (subjective and creative work, ccrpaide ci <xm-
stant adaptation and innovation), whicii Marx recogiuzod as the main char-
acteristic of humanity and which h& daplaced se^ng rs^^aoed by dead,
ossdEed wOTk—that of machines, obiecti^ working ccKviiUo]:^, moodmum
profits, and repetition.
420 Academy of Mcmagemenf Review July
Unlike Michel (1989), I will not take the risk of talking about the "free
man," for feat would suppo^ ihs existence of individuals with absolutely
free will—rational, infoimed, untrammelled lords of their own destinies.
This can, from all evidence, never be the case, because all choice is a
matter of limited rationalities. Nevertheless, the quest for a more human firm
must include a person who is, relatively speaking, more autonomous, less
managed, and somewhat more powerful. Such a quest is perhaps a step
toward understanding the meaning of being, of projecte, and of desire,
which were invoked by Sartre (1948, 1966), Dejours (1980, 1990), and Evans-
Pritchard (1950). The latternotion, in particular, as I previoiisly noted, shows
that human beings are creatures ruled by reasons. It must be admitted that
workers in present-day firms are given few reasons to want to be cooper-
ative and creative (or even simply interested in their work). Evans-Pritchard
also explained why recent theori^ of motivation fail: In these, human be-
ings are viewed much the same as organisms ("termites," according to
Herzberg, 1980), ruled by quasi-instinctive impulses or external stimuli.
Therefore, the present-day behavioral sciences of organisms must be re-
placed by a theory that advocate that people must find by themselves and
for themselves reasons for working with more creaHvify than what is pres-
ently being asked of them.
How can researchers hope for such change, unless they question their
own premises? Such radicalism would, for example, require looking be-
yond the behavior of Japanese, Swedish, and German employees, not, of
course, to lump together the political or social systems, working conditions,
or culture of these three countries; of interest here is that they are constantly
cited as examples of performance and productivity in the search to find the
reasons motivating their performance (recsons linked to job content, rela-
tions with management, national social policies, redistribution of national
wealth, and job satisfaction). They also must give up the frantic search for
some super prescription of esoteric management practice behind such per-
formance.
Similarly, this same radicalism would lead theorists to ask "why" the
employee of the traditional Western firm is so little motivated and not "how"
to motiTCrte that person at ail costs. Raising the question in this way, as
Sievers (1986a,b) has done, is to question the very meaning of work.
It is, I think, not hard to see that the traditional (functional-pragmatic)
conceptual framework of management does not work we)l vrith such ques-
tions. Besides, management has always rejected such questions as being
outeide of its sphere, considering them, at best, a subject for philosophy, or
some more or less subversive or left-wir^ sociology.
Is there any hope in finding an answer to the question: Why is the
W^tem employee so uninter^ted, unmotivated, and uncommitted when
compared to employees of other countri^? without asking the croroUary
questicm: How has the W^tem world gotten into this situation? The answers
to these questions obviously require some historical inv^rt^atian, that is, a
r^ntegration of the diachrony that has been evacuated by managerial
19^ Aktoui 421
e ^ , autoncHny, free will, and desires. It Is cdso a difiicult path, strewn with
traps, contnidicUons, and numerous hsrxas of leidstance, oftrai d^iply rcx>ted
in the unconscious, like those psychic prisons Morgan (1^6} mentioned, or
the ti^u^ons of immortality with delusions of grandeiir r^ermd to by Sie-
vers (19^b) and Kets de Vries and Miller (1984).
To borrow V. De Gaulejac's words (in a presentation b ^ m the Work!
Congress of Sociology, Madrid, July 9-14, 1990), 'Today it is as if the 'new
managements' were trying to transform the psytdiic driv^ feeding the in-
dividual's narcissism into added work and an additional source of relative
surplus value." Max Pagds (1984) spoke about seeking to fi^e Hi© ideal of self
with the ideal of the organization. This fusing would, in fact, require other
approaches and theories with regard both to management and cffganiza-
tions. This is what Peters and Waterman and other corporate-culture apos-
tles have begun to piopose. But they have acted as if employees were
credulous, naive, and bereft of culture and vcdues, waiting for heroic lecKl-
ers to instruct them. This whole approach fe part of tiie refusal to make any
analysis in terms of conflict of interests and class confhct. However, it re-
mains a fact that, led by Ouchi, Petere and Waterman, Mintzberg, and so
on, the correct questions are finally being asked, though answers are not
necessarily being sought outside of the usual functional-cOTisereual frame-
work.
Therefore, the new approaches remain inoperative and many organi-
zations are still at a dead end, as many succe^ful marKigement writers
bitterly point out (e.g., Etzioni, 1989r Mintzberg, 1989). This point is precisely
where the neo-Marxist radical-humanistic framework comes in, for it offers
more suitable paths of reflection and understanding. "Hiis framework
shows, notably, that the continued increase of relative profit is no longer
compatible with work that is as unilaterally managed and overexploited as
it continues to be in the still mainly Tayiorian firms of the West One of the
centuries-old contradictions of labor relations must be confronted; ihe con-
flicting Inter^ts of capital and labor. To recognize th^ contradiction is to lay
the groundwork for promoting labor to a position of active "co-
management" with capital. Th^ is basically what Taylor and Fayol weiB
seeking, as they spoke of ending the war or making peace between cqpital
and labor. This is also what current gurus of the new manag©n^nt advo-
cate. (Archier and Serieyx, 1984; Crozier, 1989; DePree, 1^9; Weitzman,
1984; and Peteis and Austin, 1985, all talk about sharing profits, dialogue,
and community.) But haw many bosses, especially in North America, woukl
be wiUing to admit tiiat it is not only necessary but cdso Just and tegittoate
to shcffe ihe firm's pro&ts with the employees? While mat losing sigrfit of the
fact that profit sharing is not in itself sufficient, or syiKjnynKii^ with a chtrn^
m the nature of p o w ^ or with d^cdiencdion, ot even ^ass with an &ad to
ej^loitaticHi, tt surely can be tertnod more equikdsle.
There is anofeer pOTticularly dratructive conticKlicticHi thtri consists in
wanting change wiihout really <dKingi^g- anytiUng, In wanting to l e w ^ -
tionize without a revcduticffi. (the term revolution is, for &axrapA&, us&i by
424 Academy of Management Review July
Peters [1987] and Crozier [1989] to refer to the change that must tote place
in maiKigenient today.) From corporate culture to management by syinbols;
from champions of the product to total quality, the aim is to change only one
thing: tiie behavior of employees, with no thought that the context must c^so
he dianged. In this case, employees are constantly being acculturated by
self-cultured leaders, motivated by self-motivated leaders, and mobilized
by self-mobilized managers.
However, though Marx's radical humanism may present an inescap-
able theoretical framework for constructing the know-how and bases of
change suitable to today's managerial problems, the fact remains that
clinging to the traditional Marxist theory of action (which consists in power
changing place or hands) has proven, from the verdict of history, to be just
as much of a dead end. How then can the transition to more cooperative
and vital work still be made? It can be made by moving toward a form of
organization where candor, symmetry, equity, and sharing would provide
the grounds for humanizing the firm. As Galbraith (1958, 1987) and Heil-
broner (1980) reminded us many years after Schumpeter (1942), whereas the
capitalist industrial order has enjoyed and still enjoys enormous and unde-
niable success, it must also face the equally enormous difficulties that are
the counterpart of its succ^s. This counterpart is now seriously threatening
its survival. Paradoxically, it seems that the much sought after solution may
come through elements stemming from critical and Marxist theories.
Without moving toward any form of "dictatorship by the proletariat" or
any suppre^iion of private property, there still seems to be an inevitable
need to put aside complacent iunctional-consensual traditions. There are
already concrete examples to follow in North America, quite aside from the
already traditionally known models of Japan, Sweden, and Germany.
Ccsnpleteiy innovative forms of organization and management (heterodox,
original, making almost a clean break with the most time-honored Westem
managerial traditions) are appearing and are proving to be much more
dynamic and successful than one could have hopjed under current circum-
stances. These examples transform total failure or stagnation into kisting
success. I will mention only two. The first is that of an American firm, the
lohnsonville Sausage Company, which was described in a recent article in
Harvard Business Review: "How I Learned to Let My Workers Lead." In this
article, the author (Stayer, 1993) explained how his company managed to
CEcom^plish a radical turnaround by sharing information with employees at
all levels and by in^ralving them in all major decisions.
The second example is that of a Quebec pulp and paper multinational.
Cascades Inc., which I have studied over the past five years. I will dwell on
th^ example in greater detail because it has not been previously reported
in English-language publications. Cascades was started from scratch by
three brothers and their father in a smaE country town in eastern Quebec.
In 1963, they bought an abandoned p\ilp and paper mill. By 1989, their
business had close to a $1 billion tunrover. This ^»ctacular success in-
1992 Aktout 4^
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Oxoat Aktoof received his Ph.D. fiDm the Ecole d ^ Hautes Etudes Commercicdes, the
business feiculty of the University cA Montreal, where he is an associate professcH* d
management. His reseordi interests Include organizational culture, project manage-
ment, critical research on management theory and practice, aa well as symboUmn and
the discursive a^)ect of management.