Professional Documents
Culture Documents
Christian T. Lystbæk
Aarhus University
Birk Centerpark, 15
DK-7400 Herning
christianl@hih.au.dk
1
Introduction
rationality within management. Many critics have made clear that this conception of
rationality is reductionist, but the critique often dismisses rationality altogether as the failed
project of the Enlightenment. My paper will argue that rationality should be seriously engaged
with as a concept, but that such a serious engagement will illuminate rationality as a multi-
faceted concept. This conception allows us to engage with rationality in a theoretical fruitful
and ethically engaged manner that challenges us to see rationality as a form of activity or
labor.
Management and managers are important in today´s world because what they do has impact
“The emergence of management in this [the 20th] century may have been a pivotal
1973:1)
Thus, according to Drucker, the 20th century witnessed a management boom that changed
society permanently. Management has become a familiar and legitimate social practice, a
position of status supported by institutional and social norms that gave managers the right to
hire, fire, give orders, control and evaluate the efficiency and productivity of the performance
of others in the interest of profit or providing service for the common good.
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Along with the management boom came the professionalization of management and the
growth of management and organization studies. The first MBA was offered by Harvard
Business School in 1910. In 1923, the American Management Association was established,
followed by the British Institute of Management in 1947. The second part of the 20th century
saw the more widespread emergence of Business Schools offering courses leading to
certificates, diplomas, masters and ph.D.s. Hence, today, studies of management are seen as
But (and here comes the point), there is general consensus that an instrumental conception of
rationality dominates management studies, that is, a conception that pinpoints rational
planning, prediction and control in management. For example, Cassell & Lee (2011) states, in
Ann Cunliffe states that management studies (in research and study programs) have been
dominated by rational models, which have defined the characteristics of managerial functions,
activities, roles and competencies in rationalistic terms. She describe this as the ideology of
Managerialism, that is “a kind of systemic logic, […] a way of doing and being in
organizations which has the ultimate goal of enhancing efficiency through control.” (Cunliffe,
2009:17)
This logic or ideology can be identified in the vast proportion of prescriptive models of
managerial work and activities, according to which rational planning, prediction and control is
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the basis of managerial power and legitimacy. There is general agreement that it dominates
management textbooks and curricula. Gill & Johnson (2010:4) states that this “orthodoxy
and management practitioners alike. They, or rather we, all want to be, or at least appear to be,
rational and right: We want to be in the lead of things in the sense of having the right answers
Throughout the history of management studies, though, and especially in the second part of
the 20th century, a series of management studies have criticized the dominant view of
management. Studies of what managers actually do – e.g. from Carlson´s (1951) study of
suggesting instead that managerial work is subject to uncertainty, and that management
activities are fragmented and involve making choices within constraints and conflicting
values.
In the following, I will describe these two “movements”, managerialism and its critics, as two
management studies and the critique as “the second wave”, since it grew out and continues to
grow out of a critique of managerialism and its instrumental conception of rationality. But it
should be noticed that in this strange sea, the first wave continues to roll even as the second
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I will go on to propose that the (managerialistic) first wave of management studies is good for
addressing the Question of Rigor in management, that is, the question: How to do things
right? But it seems to ignore the Question of Relevance in management, that is, the question:
How to do the right things? Correspondingly, the second (critical) wave of management
studies is good for addressing the Question of relevance that it inherited from the first wave,
but it replaces the Question of Relevance with the Question of Rigor, thus leaving or
This distinction between doing things right and doing the right things, that is, between rigor
and relevance, is made by Bennis and Nanus to distinguish between managers and leaders:
"Managers are people who do things right, and leaders are people who do the right things."
(Benni & Nanus, 1985:7) However, we should not find it appropriate to differentiate between
two distinct activities in this way. It does not make sense to aspire to do things right with no
regard to the content of whatever it is one is doing (whether it is the right things), nor does not
make sense to aspire to do the right things right with no regard to the way one is doing this
(whether one is doing things right). Doing things right and doing the right things are, rather,
inter-related questions of mutual importance. It does not make sense to prefer one from the
other, that is, to do the right things, but not doing them right, or to do things right, but not the
right things. This dichotomy might be appealing (for polemic purposes), but it is false.
As such, this paper will point toward a Third Wave of management studies, addressing the
question (or quest) whether the fundamental tension between Rigor and Relevance can ever
be resolved? And if it cannot be resolved, how can it best be approached? The answers to
these questions are central to management studies, both academic and practical.
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But let me begin with a few more words on these “waves” in management studies.
The first wave in management studies: Managerialism – old and new (NPM)
The first wave of management studies is dominated by managerialism, that is, the idea (or
ideology) that management is about enhancing efficiency through control, thus privileging the
logic of technical rationality and systematic rigor in terms of rational planning, prediction and
control. Today, many people believe that this conception of management is a precondition for
protects us from chaos and inefficiency by guaranteeing that organizations, people and
This ideology of managerialism is in itself predicted on a very large story about organizational
and social progress. Management studies (in their modern form – the ancient and medieval
“roots” is another story) began with the work of early organizational and administrative
theories, both academic and practitioners, who were concerned about bringing the logic of
technical rationality and systematic rigor in terms of rational planning, prediction and control
into management. This concern has been carried on as the main trend within management
studies throughout the 20th and into the 21st century, but with a steady expansion in the scope
In the first part of the last century, management was thought to be essentially the function of
controlling the performance of tasks in order to produce the goods and services of the
organization. Thus, management was conceived as the efficient organization of the work
tasks. But, in the following decades, a series of management studies showed (e.g. the famous
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Hawthorne Studies) that performance is dependent upon not only the organization of the work
tasks but also the roles and relationships, including the social and psychological work
environment. Thus, business psychology was born as a management discipline stating that
management is not only a technical function of controlling tasks, but a social and
psychological function of controlling roles and relationships as well. Then, in the following
decades, further management studies pinpointed the importance of continued learning and
development for task performance, and business Human Resource Management (HRM) and
communication, and, the history repeats itself, this became a management function and
organizational values, missions and visions, and this (according to the measurement of
management tools and trends made by Bain & Company) has become a main management
Insert figure 1.
The 20th century, then, witnessed a steady expansion in the scope of management issues, that
organizations – from control of tasks and production processes through relationships and
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learning processes, and cultural and communication processes to, finally but probably not
Because this orthodoxy of management control is so dominant and strong, we often take it for
learning, human capital, etc. we often take it for granted that communication, learning,
knowledge, innovation, etc. can and should be managed in the sense of being object of
rational planning, prediction and control. This assumption can be identified in the vast
rational planning, prediction and control is the basis of managerial power and legitimacy.
Debate in the field, then, is predominantly debate within this meta-theoretical assumption,
namely debate over the means suggested to achieve control. Following Hoyle & Wallace
(2005:69f), we can identify two “ideal types” of this paradigm depending upon whether the
control mechanism is suggested to be direct or indirect. They label the two ideal types “neo-
Insert table 1.
Neo-Taylorism opts for channeling agency and delimiting its boundaries through overt, direct
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to do what to achieve specified outcomes. The aim is minimally to secure behavioral
compliance.
Culture management is most subtle, opting for indirect control through a mix of overt and
covert mechanisms. These are designed to align the beliefs and values of teachers with those
of their leaders and managers and to bring them, in turn, into line with those of policy-makers.
The aim here is the most ambitious. They will be motivated voluntarily to channel their
agency among the required lines with full commitment to the spirit of the enterprise. When
this is couched in a “humanistic” language stressing the creation and control of a learning
organization, underpinned by a strong organizational culture which reflects shared values and
through a HRM staff development program this sounds innocuous. But when one remembers
that we are talking about human beings the flavor changes. To talk of controlling not only
innovation, etc. is to talk of corporations controlling the very identities and mental functioning
of human beings. At this point, there is nothing left of the worker as a human being that falls
Thus, each ideal type reflects a different combination of forms and mechanisms of control:
Underpinning the hyperactivity of managerialism, the constant creation of new tools for
organizing work, is an ideology, which hold that not only can all aspects of organizational life
be controlled, but that they should be controlled. This ideology of managerialism demands
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that a specific problem is dealt with by means of strategic planning and application of a
According to several scholars, e.g. before mentioned Ann Cunliffe (2009), Hoyle & Wallace
(2005), this managerialistic ideology seem to have taken on a life of its own in government
services, education, health care, and other public sector organizations throughout Europe,
Australia and North America. New managerialism, or New Public Management (NPM) as it is
often called, is associated with importing practices commonplace in the private sector into the
public sector, particularly the imposition of a powerful management body with a market
orientation and business practice that overrides professional skills and knowledge as a means
texts on New Public Management can be condensed something like: Public service
a strong organizational culture which reflects shared values and is expressed through a clear
which gives unified direction to their synergistic and continuous improvement efforts.
This summary constitutes the touchstone of NPM, yielding key concepts such as
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There is a strong body of work within this tradition and I in no way deny its value. But many
textbooks are over-simplifying the issues they address. And even when contributors are well
aware of the complexities of improvement, some readers, including teachers of leadership and
Today, alongside the gains of rational planning and control, there is plenty evidence of
problems. Here is just one indicative example: Successive Danish Governments have
generated an extensive series of policies aimed at transforming Danish public service (health
care, school education) as part of a wider strategy to reform or to “modernize” all the public
sector, but this have not led to anticipated levels of improvement and success. On the contrary,
management has been to overload chronically the managers and front-line practitioners
charged with responsibility for implementing the multiplicity of innovations entailed in these
policies.
management is not what you, or we, often think (Mintzberg et al. eds. 2010). This critique
states that managerialism put to much emphasis on the Question of Rigor, but seems to
marginalize the Question of Relevance in the sense that it focuses on strategic planning and
the monitoring and controlling of the plans whereas it does not give much notice to the ways
the plans relates to what people in the organization are actually doing nor does it give notice
to the conflicts and complexities that managers and experts often experience.
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The second wave in management studies: Complexity
The First Wave began to roll into shallow academic waters in the 1960´s, with the studies of
Sune Carlson, Henry Mintzberg and others. These studies have contradicted the rationalistic
view of management, suggesting instead that managerial work is subject to uncertainty and
ambiguity.
For example, already Carlson, in 1951, suggested that management should not be considered
“The work of managing directors in large firms is so varied and so hard to grasp.
It is also different from many other kinds of intellectual work in that it is more a
(Carlson, 1951:109)
Despite 100 years of management theories and techniques, managing is still a difficult and
fraught process. Why is managing so difficult? The quick and easy answer is, because
managers are like the rest of us – human and fallible. The more complex and difficult answer
is, because people are not the coherent and malleable cluster of well-defined characteristics,
fixed intentions and predictable actions that conventional management theories assume.
To exemplify the point about the poor correspondence between management theory and prac-
tice, let me quote a frustrated manager from the book Real Managers:
“We all went through the B-schools when we were young and the professors had all the
was so clean and precise. The problems in the accounting and quantitative courses
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always had logical answers. Even the principles of management and policy courses had
structure and form, citing the five functions a manager performs or the three steps of
strategic planning. The same is true of the management development programs I have
attended over the years. The trainer has all the answers to my problems – one, two,
three. But I’m here to tell you it really isn’t like that. My day consists of running from
one meeting to the next, fielding questions from my internal staff and outsiders, trying
couple of people, and keeping my ever higher in-basket from toppling down on top of
me. In fact, I feel guilty that I’m not doing the things that the management educators,
trainers, and the things I read say I should be doing. When I come out of one of these
sessions, or after reading the latest management treatise, I’m eager to do it. Then the
first phone call from an irate customer, or a new project with a rush deadline, falls on
As this story pinpoint, and what has been shown in the Second Wave of studies, is that
Why do efforts to improve the quality of public service via organizational leadership and
management make matters worse in some respect as well as better? The goals of public
organizations, such as health care organizations or educational organizations, are both diverse
interests of control and accountability, has made life difficult for managers and practitioners.
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Managerialism diverts practitioners from their core task of providing and promoting public
constraining the very public service activity they are there to provide and facilitate. There
exists in public organizations endemic ambiguities that can neither be “managed away” nor
dissolved through a shared culture. Managers and front-line practitioners will live with these
Martin Parker provocatively states that management has become both a civilizing process and
a new civic religion: Even if we don´t share the faith in today´s management, we often seem
to believe that the answer is `better management´ and not something else altogether. (Parker,
2004:2) But, according to Parker, managerialism, that is, the generalized ideology of
management, is both limiting and problematic. Management is not always the saviour, but
He reminds us that our ideas and conceptions of management have developed from the
mundane meaning of managing to do something (“today, I managed to get out of bed”, “last
month I managed to write this paper”, etc.) to the elitist view of management as a dominant
social institution and an instrument of control. In many pre-industrial societies it would make
no sense to disentangle something called “management” from the everyday skills through
which life was lived. We have some hint of this when we talk about managing in the wide
sense of “coping with” or “handling” a particular state of affairs. The etymology of the word
“management” reflects this. It seems to be derived from the italian mano, that means “hand”,
and its expansion into maneggiarre, or manége, the activity of handling and training horses
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carried out by the maneggio. From this very specific form of manual control, the word
expands into a general activity of training and handling people too. Later developments of the
word into ménage (household or housekeeping) and the verb ménager (to economize). So, an
intimate technology of the body grows to become a technology of the household, and
Viewing management as work practices often shifts the attention from formal management
managers as the primary data for theorizing about management. Management or “managing”,
as some writers in this wave prefer to talk about (fx. Parker, 2004), is inseparable from
ordinary human activity. Thus, management is embedded within and inseparable from
particular activities and practices. Rather than regarding management as a distinct body of
knowledge and expertise that people can have and apply, as an applied science, these writers
suggest that management is better regarded as something that people do, as an art or a craft.
work is seen as a craft that requires experience, skill, and artistry. Instead of evaluating
management techniques according to their internal logic and systematic qualities, the practice
perspective is interested in how widespread certain management practices are, how they are
This reminds us of what it is that managers do when they manage: they solve problems, they
control and discipline workers, they make things efficient, they might even make things more
humane. They do so by representing and intervening: making activities and actions knowable
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by producing signs and texts (organization charts, job descriptions, product specifications,
Thus, the second wave of management studies have made clear that that the dominant
critique brings important insights into current discussions regarding management in general
and New Public Management in particular. But the critique often dismisses rationality
altogether as the failed project of the Enlightenment. But to be against planning and control
clear that this conception of rationality is reductionist, but the critique often dismisses
In the final part of the paper I will argue that rationality should be seriously engaged with as a
concept, but that such a serious engagement will illuminate rationality as a multi-faceted
concept.
This conception allows us to engage with rationality in a theoretical fruitful and ethically
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New Public Management in Denmark does not represents a uniform, uni-linear and
monolithic concept of technical rationality. Nor does management in general. Thus, rather
different forms of management exhibit their own distinctive and non-reducible forms of
organized rationality. They do not necessarily follow the same path, towards the same end.
Rather, they often have non-uniform trajectories, not entirely unrelated to their rather differing
purposes and the ethos framing them. Thus, they have to be described and understood in their
own terms, rather than being “assimilated” into a meta-theory of rationality. And furthermore,
the tensions between these forms of organized rationality need to be outlined and appreciated.
As a methodological framework of analysis, the paper argues that what has been suggested as
the “The Stacey Matrix” (Brenda Zimmerman, following Stacey, 2000) might guide
management students in dealing or coping with, and in this broad sense “managing” the risk
studies. This framework suggests that the tasks and issues of management can be more or less
close to certainty and more or less close to agreement. Only when the issues are close to
certainty and close to agreement, can managers use instrumental techniques of linear planning
and control. This is sound management practice for issues and decisions that fall in this area.
But when issues are not close to certainty or close to agreement, other forms of management
are called for. Fx. when issues have a high degree of agreement, but not much certainty as to
the effects of particular initiatives to create the desired outcome, technical monitoring against
a preset plan will properly not work. In such circumstances, a strong focus on shared missions
or vision may substitute for this kind of monitoring. Thus, the goal is to head towards an
agreed upon future state even though the specific paths cannot be predetermined. Other issues
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have a high degree of certainty about how outcomes are created, but equally have a high
degree of disagreement about which outcomes are desirable. Thus, neither plans nor shared
mission are likely to work in such circumstances. Instead, politics become more important in
the sense that negotiation, coalition building, and compromise may be necessary in order to
deal with the situation. Situations where there are very high levels of uncertainty and
disagreement. Stacey denominates this the zone of complexity. In this zone of complexity the
traditional management approaches are not very effective, but it is the zone of high creativity,
innovation, and breaking with the past to create new modes of operating.
Insert figure 2
Following The Stacey Matrix, what determines the form of management is to what extent the
tasks and issues of the management are more or less close to certainty and more or less close
to agreement. But the level of certainty and agreement can themselves be contested, and thus,
object of uncertainty and disagreement. As they are, I will argue, in the case of New Public
Management in Denmark.
Thus, New Public Management in Denmark, and management in general, can be analyzed as
an inherently contestable concept and practice. Hence, The Stacey Matrix offers a
methodological framework of analysis that helps student to move beyond simple dichotomies
different forms of management to exhibit their own distinctive and non-reducible forms of
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organized rationality as well as appreciating the tensions between them. Following this
problems, with an inherent risk of not being adequate or of creating new problems.
therefore contestable. In other words: it is not always predictable and controllable. This means
that the more ways managers have of viewing the world and of exploring possibilities, the
better able they will be to manage in responsive and responsible ways. Managing is relational
and reflexive. This means that instead of taking a realist view of organizations as fixed
entities, we have a dialectical relationship with our social world: we shape and are shaped by
our experiences as we talk and interact with others. Managing relationally is about dialogue,
not monologue, seeing conversations as crucial ways of figuring out between us what needs to
be done, without having neither too much not to little faith in management in terms of rational
The Stacey Matrix provides a methodological framework for analyzing how different forms
of rigor is relevant in different situations and circumstances. This allows an analysis of how
different forms of management exhibit their own distinctive and non-reducible forms of
organized rationality, thus allowing for considerations on both rigor and relevance, and,
responsible ways.
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References
Bennis, Warren and Nanus, Burt. Leaders. 1985. The Strategies for Taking Charge. Harper
Cassell & Lee. 2011. Introduction. In Cassell & Lee (eds). 2011 Challenges and Controversies
Cunliffe, A. 2009. A very short, fairly interesting and reasonably cheap book about
management. London:Sage
Drucker, P. 1973. Management: Task, Responsibilities, Practices. New York: Harper & Row
Gill & Johnson. 2010. Research Methods for Managers. London: Sage (4th ed.)
Lather, P. 2004. This IS Your Father´s Paradigm. Government Intrusion and the Case of
Luthans, F., R.M. Hodgetts and S.A. Rosenkrantz. 1988. Real Managers. Cambridge:
Ballanger
Mintzberg, H. 1973. The Nature of Managerial Work. New York: Harper & Row
Mintzberg, H, B. Ahlstrand and J. Lampel (eds). 2010. Management. It isn´t what you think.
Canada: Person
Stewart, R. 1967. Managers and Their Jobs: A Study of the Similarities and Differences in the
Way Managers Spend Their Time. Basingstoke. The MacMillan Press, 1988
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Figure 1.
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Tabel 1. Two ideal types of managerialism
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Figure 2. The Stacy Matrix
agreement management
Complexity
certainty certainty
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