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    Managerial Dilemmas Exploiting paradox for strategic leadership

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    内容提示: Managerial Dilemmas Managerial DilemmasExploiting Paradox for Strategic LeadershipJohn StoreyGraeme SalamanA John Wiley & Sons, Ltd., Publication Published in 2009 by John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (+44) 1243 779777Email (for orders and customer service enquiries): cs-books@wiley.co.ukVisit our Home Page on www.wiley.comCopyright © 2009 John Storey and Graeme SalamanAll Rights Reserved. No part of this publication may be reprod...

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    Managerial Dilemmas Managerial DilemmasExploiting Paradox for Strategic LeadershipJohn StoreyGraeme SalamanA John Wiley & Sons, Ltd., Publication Published in 2009 by John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (+44) 1243 779777Email (for orders and customer service enquiries): cs-books@wiley.co.ukVisit our Home Page on www.wiley.comCopyright © 2009 John Storey and Graeme SalamanAll Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, Saffron House, 6-10 Kirby Street, London EC1N 8TS, UK, without the permission in writing of the Publisher. Requests to the Publisher should be addressed to the Permissions Department, John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England, or emailed to permreq@wiley.co.uk, or faxed to (+44) 1243 770620.Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The Publisher is not associated with any product or vendor mentioned in this book.This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the Publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional should be sought.Other Wiley Editorial Offi cesJohn Wiley & Sons Inc., 111 River Street, Hoboken, NJ 07030, USAJossey-Bass, 989 Market Street, San Francisco, CA 94103-1741, USAWiley-VCH Verlag GmbH, Boschstr. 12, D-69469 Weinheim, GermanyJohn Wiley & Sons Australia Ltd, 42 McDougall Street, Milton, Queensland 4064, AustraliaJohn Wiley & Sons (Asia) Pte Ltd, 2 Clementi Loop #02-01, Jin Xing Distripark, Singapore 129809John Wiley & Sons Canada Ltd, 6045 Freemont Blvd. Mississauga, Ontario, L5R 4J3 CanadaWiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.Library of Congress Cataloging-in-Publication DataStorey, John, 1947– Managerial dilemmas : exploiting paradox for strategic leadership / John Storey, Graeme Salaman. p. cm. Includes bibliographical references and index. ISBN 978-1-4051-6027-8 (cloth) 1. Leadership. 2. Organizational behavior. 3. Strategic planning. 4. Decision making. I. Salaman, Graeme. II. Title. HD57.7.S758 2009 658.4’092–dc22 2009007435British Library Cataloguing in Publication DataA catalogue record for this book is available from the British LibraryISBN 978-1-4051-6027-8Typeset in 11 on 15 Goudy by SNP Best-set Typesetter Ltd., Hong KongPrinted and bound in Great Britain by TJ International Ltd, Padstow, Cornwall Dedication This book is dedicated to Anne, Rebecca and David, Rena, Sophie and Alexandra. ContentsPreface List of case organizations About the authors xiiixviixixPART 1 INTRODUCTION 11 Exploiting dilemmas and paradoxes through a new mode of leadership Meanings of dilemmas and paradox The exploitation of paradox Types Dilemma/paradox 1 : strategy and business models Dilemma/paradox 2: organizational structuring Dilemma/paradox 3: performance and control Dilemma/paradox 4: innovation dilemmas Dilemma/paradox 5: managers’ knowledge Dilemma/paradox 6: organizational change The role of leadership Conclusions Organization of the book 31 21 21 41 71 81 91 920202123272 The nature of dilemma and paradox Dilemma and paradox Experiencing dilemma and paradox 292931 viii C O N TE N TSThe organizational level Visualizing dilemmas The subjectivity of dilemma and paradox Exploiting dilemmas and paradoxes Managing paradoxes Conclusions 333539404344PART 2 THE SIX DILEMMAS AND PARADOXES 473 Dilemmas and paradoxes of strategy Strategy and capability Business and organizational models Strategy and organizational design Two case studies: EngCon and contract cleaning services Case 1 : The engineering consultancy company Case 2: Commercial and industrial cleaning and support services contractors Discussion 49505356586069774 Dilemmas and paradoxes of organizational form and structuring From bureaucracy to market Project management Process management Joint ventures and alliances Strategic outsourcing Supply chain management Networks and virtual organizations Conclusions 8187919397981 011 021 055 Dilemmas and paradoxes of performance management 1 09The meaning and implications of performance management The paradox of control The performance control process The social complexity of the process Types of control Direct supervision Technical controls 1 1 31 1 51 1 61 1 81 1 91 1 91 21 C O N TE N TS ixAdministrative controls Quality and Just-in-Time manufacturing Incentive payments as a form of performance management Self controls and social controls Control and resistance The vicious circle of control Positive responses to controls Reconciling control and autonomy Performance and management systems The wider context Conclusions 1 221 241 251 261 281 291 301 311 311 331 356 Dilemmas and paradoxes of innovation Introduction Innovation issues Business strategy and the management of innovation Barriers and enablers Exploration versus exploitation The role of established cognitive structures and recipes Our fi ndings about managers’ use of theory and the choice between two divergent models Managers’ interpretations of the nature and priority of innovation Different interpretations and their consequences The moral and affective dimensions The illegitimacy of innovation? Analyses of the source of the problem Formal and informal systems Informal systems Organizational cultures Mindsets and values Approaches to innovation: a danger to be controlled or energy to be tapped? Loose/tight The value of searching The role of leadership Conclusions 1 371 381 391 401 411 431 441 461 501 521 531 541 551 571 581 591 621 631 641 651 651 66 x C O N TE N TS7 Dilemmas and paradoxes of managers’ knowledge Fads, fashions and prevailing assumptions Developing strategy: the role of executives’ knowledge and thinking Why are executives’ ideas powerful? Tacit knowledge and explicit knowledge; consensual knowledge and differentiated knowledge Findings about executive managers’ strategic knowledge Type 1 : common unexplored understandings Type 2: divergent, submerged/unexplored confl icts Type 3: negotiated action Type 4: manifest confl ict Conclusions 1 711 741 771 791 801 831 841 871 891 911 928 Dilemmas and paradoxes of organizational change Introduction The nature and sources of change paradoxes The knowledge and role of managers The nature of organizations The objectives of organizational change projects The paradoxes of change processes Why change? The relationship between organizational capacity and organizational strategy Why change? Basic systems Why change? Core competences Why change? The adaptive organization Why change? Strategic capacity Key change problems and solutions Key change problems: organizational capacity to change Key change problems: symptoms and sources Key change problems: changing how we change Key change problems: changing the organization or helping it learn to change? Conclusions 1 951 951 981 9920020120420520820921 121 421 521 521 621 821 9220PART 3 CONCLUSIONS 2239 Implications for leaders of organizations Dilemmas and paradoxes of strategy and of business models 225229 C O N TE N TS xiDilemmas and paradoxes of organizing Dilemmas and paradoxes of performance management Dilemmas of innovation The paradoxes of change Cross-cutting applications and a summary of lessons for leaders 233233234236237References Index 243253 Preface This book is no ordinary textbook on management. We do not seek to cover, summarize and comment upon the vast literatures on the various key mana-gerial themes covered in this volume. Our aim is rather different, namely, to pursue a central theme and a core tension in managerial work and mana-gerial decision making: managerial dilemmas and paradoxes. Our purpose is to speak to practising managers and advanced students of management so that they can refl ect more deeply than is normally encouraged, upon certain underlying currents running through management practice. The book is especially written with the needs of MBA students in mind and for those taking courses in Organizational Behaviour and Strategic Management in particular. We seek to respond to the challenge presented by Chris Argyris ( 1999 : 92): If paradoxes are an important phenomenon for administrators that the prominent theories of administration or organization do not have them as a central focus? What would it require to craft theories where paradox has a prime role? … why is it Duality is a constant strand in management thinking and in thinking about management and organizations. Organizations are thought of as mechanistic or organic, as centralized or decentralized, formal or informal, differentiated and integrated, stable and changing and so on. Business strategies likewise, are typically thought of in terms such as low cost or premium, strategies as xiv PRE FAC Edeliberate or emergent, strategies as fi t versus strategies as stretch and diver-sifi ed or focused strategies. Human resource strategies are conceived of as high trust or low trust. These common ways of depicting management and organizational work as modes of decision making leads us on further to the idea that managers face numerous dilemmas. either/or choices. Conventional wisdom suggests that adept managers fi nd the answer by clever alignment of opportunity, choice and situational context – plus a dash of anticipation of change. In so far as many managerial and organizational issues and problems are not so easily resolvable this leads on to the notion of paradox. ‘ Paradox principles or pulls co - exist – that is they are held in tension simultaneously. To this extent, a paradox is the opposite of a dilemma former is that no absolute either/or choice needs to be made or should be made. There is a further point. The ongoing tensions within the paradoxes provide the impetus for change; any approximation to equilibrium has to be managed. Paradoxical forces therefore provide a dynamism which is excit-ing, promising and positive, and yet also potentially threatening, discomfort-ing and negative. We suggest that, in an age of uncertainty, dilemmas and paradoxes are especially evident and prevalent. The ultimate responsibility of leadership is to make sense of these and to handle them in a competent manner. This, we argue, demands a new mode of leadership. The management of dilemma and paradox is, we contend, the essence of leadership today. Charles Dickens famously illustrated the nature of paradox when describ-ing the time leading up to the French Revolution in his novel Two Cities :‘ Dilemmas ’ suggest a set of ’ exists when seemingly divergent – the idea in the The Tale of It was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair. The word paradox derives from the Greek against or over and ‘ doxos sense (Thompson 1988 meanings appear to be contradictory and yet where there is also a sense that there is a hidden truth entwined within the opposites. We are by no means the fi rst to note the power of paradox. Many others have gone before us on this quest. For example, Charles Handy noted ‘ paradoxos ’ – with ‘ para ’ denoting ’ meaning contrary to received wisdom or common : 131). It is used today to refer to instances where ‘ we PRE FAC E xvhave to learn to use the paradoxes sistencies – as an invitation to fi nd a better way him, Marx and Weber, Gouldner and many other social scientists also placed dialectic, contradiction and paradox at the heart of their philo-sophies. Thus, the purpose of this book is not to promote a new idea but rather to rediscover its import and its applications under contemporary conditions so that we can gain new insights. We draw upon two decades of our collaborative research projects and consultancy in these interrelated aspects of management: strategy, knowl-edge, innovation, organizational forms, performance management and control. During these decades as authors we have worked both together and separately on these themes. Many of the projects were funded by the Eco-nomic & Social Science Research Council and by the Engineering cal Sciences Research Council and more recently by the NHS National Institute for Health Research and the Service Deliver Organization. Other work was funded by corporate clients including Astra Zeneca, John Lewis, Nortel, Waitrose, Rolls Royce, Ernst & The work was conducted mainly in the UK but also in the US, Japan, Germany, India and Ethiopia. As noted, early social scientists placed contradiction and paradox at the heart of their work. But in the latter part of the twentieth century with the rise of management science many of the early lessons were lost. Management writings of the industrial age emphasized order and appeared to recommend the elimination of and resolution of tensions and paradoxes. Contemporary challenges, we suggest, demand a rediscovery of some classic ideas. Our aim is to illustrate the application of such ideas. We are grateful to the numerous managers and directors with whom we have worked. Most have to remain anonymous as that was part of our con-tracting arrangements with them but others we can name. In the later stages of the work we benefi ted from conversations with Sanjeeb Chaudhuri, Managing Director of Retail Banking for CitiBank and Africa; Andreas Raffel, Executive Vice Chairman of NM Rothschild Sons, formerly CEO of Rothschild GmbH; Maurice Dunster Organizational Development Director of JLP; David Day, European Chief Executive of Lightspeed Research – a WPP business; Andy Street, Managing Director of John Lewis and Mark Price, Managing Director of Waitrose. – to balance contradictions and incon-’ (Handy 1994 : 13). Before & Physi- Young, Morgan Stanley and UPS. – Europe, Middle East & List of c ase o rganizations Age Concern Allianz Insurance Group Astra Zeneca PLC Barclays Bank BBC, The Boots Company PLC Citigroup Creda - Hotpoint GDA DHL EasyJet Eni Lasmo Oil PLC Ernst & Young Fujitsu GEC Hewlett - Packard ISS UK Carlisle John Lewis Partnership KV Automation Land Command (Army) LloydsTSB Luton and Dunstable NHS Foundation Trust Milton Keynes Council MITIE Morgan Stanley NatWest Bank Nortel Northampton NHS Trust Oxfam Pfi zer Premier Foods Psion Dacom Rentokil Initial Rolls Royce Sonatest Tensator University College London Hospitals NHS Foundation Trust Waitrose Whitbybird Engineers Willis Insurance Group About the a uthors John Storey at the Open University Business School. He is Chairman of the Involve-ment & Participation Association (IPA) and Non the Land Command Civilian Personnel Management Board. He is an Elected Fellow of the British Academy of Management, a Fellow of the Higher Education Academy and a member of the UK Government ship & Management Panel. He was formerly Principal Research Fellow, Warwick University Business School and Chair of Strategic HRM at the University of Loughborough. He was Editor of the ment Journal 1994 – 2000. He has led a number of major research funded studies. The ESRC, the EPSRC and the NHS have funded his projects on the management of innovation, the evolution of business knowl-edge, strategic human resource management, leadership, board effectiveness, governance and supply chain management. He has written and/or edited 20 books with leading publishers including Blackwell, Edward Elgar, Gower, Wiley, Routledge and Sage. His books include: ment of Human Resources , (Blackwell); (Edward Elgar) Leadership in Organizations Innovation (Blackwell). His latest book is: John Storey, Dave Ulrich and Patrick Wright (2009) Companion to Strategic HRM Routledge. He has extensive consultancy experience at senior management and board level. His most recent consultancy work includes board level (Ph.D., University of Lancaster) is Professor of Management - Executive Director on ’ s Leader-Human Resource Manage-- council Developments in the Manage-The Management of Innovation (Routledge) and Managers of , London/New York, xx ABO U T TH E AU TH O RSwork with John Lewis, Waitrose, the NHS and the Army. He has published around 100 articles in leading journals. Graeme Salaman versity of Leicester with a fi rst class degree in Social Sciences, he took a Ph.D. in Organizational Sociology from the University of Cambridge. After two years at the Institute of Industrial Psychology he joined the Open University. He has written over 60 books and articles in his research areas. Most recent publications include Strategy and Capability Blackwell, 2003; Strategic Human Resource Management Organizations, Routledge, 2000; Decision - Making, agers of Innovation, (with John Storey) Blackwell, 2004. Other recent work includes an analysis of current approaches to leadership and a critique of the Learning Organization thesis in Human Relations Management of Innovation (with John Storey) in ment Studies . He currently holds (with John Storey) a research grant from the Eco-nomic Social Research Council for a study of Knowledge Management. He is a joint grant holder (with John Storey) from the NHS/SDO for a three year study in ‘ Comparative Governance and Comparative Effectiveness is an associate of Ashridge Consulting. He has worked as a consultant or trainer for a number of organizations. Current or recent clients include: Allianz Cornhill, DHL, Willis, John Lewis Partnership, Ernst MicroSystems, British Oxygen, PowerGen, Morgan Stanley, Rolls Royce and The Post Offi ce. He has worked for a number of years as a consultant to the Government of Ethiopia. In that country he is currently working for the Minister of Information – Bereket Simon and capability of the Government’s media and information management systems. (Ph.D., Cambridge University) Graduated from the Uni- (with David Asch) , Blackwell, 1996; Sage, 2000 and The Man- and an analysis of the The Journal of Manage--’ . He & Young, Sun – on improving the strategy INTRODUCTION Part 1 A century ago, Andrew Carnegie had this advice: thoughts, and your capital. The wise man puts all his eggs in one basket and watches the basket. ’ But of course the risk, then and now, is that no matter how attentive and focused you are, the basket you ’ re watching is simply the wrong one. ‘ Concentrate your energies, your (Moyer 2008 ) Knowing which is a crucial set of skills for managers and leaders. It is our contention in this book that the myriad tasks of and demands on management can be reduced to fi ve core essentials and that these broadly can be sequenced as follows. First, managers are charged with setting a sense of direction (for example, having an answer to the question ‘ what business are we in? are charged with shaping and structuring the array of capabilities and resources at their disposal into some shape and form; third, they are charged with maintaining and improving performance; fourth, they are expected to additionally enable innovation; fi fth, they are expected to be able to adapt each and all of the above to meet changes in the environment of the organi-zation such as changing customer and market demands. This set of core managerial roles is a combination of strategic and organizational capabilities. They do not easily fi t within any single discipline or function. Moreover, we argue they are not easily reducible to a set of rational rules. On the contrary, the thesis of this book is that when taken separately and together ‘ basket ’ to watch and how to design, manage and watch it ’ ); second, they 1 Exploiting d ilemmas and a n ew m ode of p aradoxes l eadership t hrough 4 M AN AG E RI AL D I LE M M ASthese tasks and activities are subject to multiple dilemmas and paradoxes which defy conventional prescriptions and rules. Such a contention fl ies in the face of most current management thinking. In general, managers and management theorists in the mainstream busi-ness and management literature over the past 25 years have taken, we maintain, a wrong turning. Guidance, lessons and prescriptions have become increasingly emphatic, increasingly ‘ rational Early social theorists as divergent as Weber, March, Simon, Gouldner and Merton recognized the dysfunctionalities and therefore dangers of order and of formal ‘ rationality ’ and tried to draw attention to the contradictions and paradoxes inherent in organizations and society. However, over the years, these insights often seem to have been lost. The emphasis gradually, but insistently, shifted to order and tidiness. Hence, the early insights have been neglected as formal rationality asserted its dominance during the high indus-trial and late industrial age. However, now this stress. The old rules and strictures no longer seem to make sense. New projects, reforms and reorganizations are launched at an increasingly rapid rate and fail to meet expectations just as frequently. In response, theory ’ , ‘ dynamic capability ’ , the ‘ learning organization other such counter movements offer variable glimpses of this truth. This tension has been accentuated in recent times because of rapid strides in communication technology and global competition the rational model to greater strain and reveal its defi ciencies. For example, Prahalad and Krishnan (2008) show how, in the new business paradigm, products and services are at times inseparable, hardware and software merge, and consumption by users is part of production. Because of the intensity and speed of change, managers have increasingly been exposed to different cycles of reorganization and they fi nd colleagues harder to convince with the latest idea. Multiple initiatives are launched. Projects multiply and their prolifera-tion demands that they be consolidated into ‘ Programme Offi ces ’ . However, the tensions between initiatives and priori-ties still tend to remain. There is growing awareness that the underlying problem is one of multiple logics and inescapable tensions (Eisenstat Ideas such as devolved ‘ strategic business units work ’ , which appear eminently logical when considered in isolation, reveal themselves to be problematical when considered alongside competing logics. Studies of management decision making increasingly reveal organizational ’ and increasingly misleading. ‘ industrial ’ model is under ‘ chaos ’ and a number of – these forces expose ‘ programmes ’ and placed within 2008 or ‘ team-). ’ , ‘ empowerment ’ E XPLO I TI N G D I LE M M AS AN D PARAD OXE S 5problems to be core issues of strategy, organizational form, managing performance, innovat-ing and changing all involve tensions, dilemmas and paradoxes. Managing these tensions becomes the core competency of top managers under the new order. Ideas and solutions can rebound. For example, one of the most suc-cessful corporate growth stories of the past few decades has been that of Hewlett - Packard. That success was usually explained in part at least by refer-ence to the code of values and practices known as we interviewed one of the senior most UK made this point:inherently multi - dimensional. Managerial decisions on the ‘ The HP Way ’ . When - based HP Directors in 1999 he The pocket try hard to value commitment for example and we value loyalty in both directions. ‘ HP Way - sized laminated card. It is very much a values ’ is central to who we are. It ’ s not just a slogan or a list on a - based organization, we However, following a de years later the management team whom they judged had pattern we have found in many other values years. Organizations and management are under increasing pressure to meet multiple, often inconsistent, demands. Increasing technological change, global competition and workforce diversity reveal and intensify paradox. These kinds of disruptions expose tensions within organizations. For example, rising commodity prices or new international competitors raise new ques-tions about sustainability, competitive advantage and core capabilities. Ambiguity fosters multiple, often confl icting interpretations of phenomena. David Day, European Chief executive of Lightspeed, a company within the global WPP Group, gave us an example:- merger and a series of fi nancial problems, a few HP Way ’ was an idea used by employees to castigate a new ‘ betrayed - based organizations in recent ‘ ’ that promise. This is a In today systems, increasingly look across at businesses that are entrepreneurial, ener-getic and innovative and say to themselves those ’ . They bring it in and fi t it into the fi nancial systems of the broader organization. The founders tend to remain for a while and so the business never really gets integrated, they say ‘ Don the founders tend to leave and all of a sudden you are left with something which doesn ’ t deliver any more. That is very common, as the founders, the ’ s climate, many large companies – not just WPP – with large complex ‘ We would like to acquire one of ’ t touch us, we ’ ll deliver ’ . Then 6 M AN AG E RI AL D I LE M M ASentrepreneurs who created the company, decide to leave and the spirit of the business goes with them. Sometimes, trade stances they can be avoided. Seductive prescriptions often turn out to be oversimplifi ed depictions. When we refer in this book to mas ’ therefore, we want to move beyond simplistic conceptualizations and to explore instead the rich territories of paradox, complexity, ambiguity and temporality. Let us take an example from Hewlett Directors explained to us:- offs are required; at other times and in other circum-‘ managerial dilem-- Packard. One of the UK - based If you get a complex system and you add rules to it, it gets more complex. You see if you try to control complexity with structure, it gets worse. So, what HP has is a number of simple rules which are very powerful in the way that they drive things. One of those rules is: ‘ You must come in under on expenses and over on quota. … ’ Um, and if you don fairly soon. So, it ’ s fi scally fairly tight. And, the moment you breaching the simple rules the red fl ags start waving. Thus, in this way we seek to be both tight and loose. ’ t, then the men in grey suits arrive ’ re going near Toyota provides another example. Conventionally, it is thought that there is a necessary trade - off between productivity and innovation. This is refl ected in Abernathy ’ s work on The Productivity Dilemma However, Toyota ’ s phenomenal record in productivity gains as its impressive achievements in innovation have cast doubts on earlier conventional thinking (Liker and Hoseus Shimizu et al. 2008 ). As these studies reveal, there are a number of contradictions ’ at the heart of the Toyota method. Abernathy ’ s analysis of the productivity versus innovation dilemma is important for a further reason. The fundamental lesson to be drawn from his work (supported in meticulous detail by data stretching over decades in the American automobile industry) is that when managers mishandle this dilemma they jeopardize whole fi rms and indeed whole industries. Contrast this with the results of recent investigations behind the success of Toyota. Toyota ’ s unorthodox manufacturing system has enabled it to ‘ make the planet ’ s best automobiles at the lowest cost and to develop new products quickly ’ (Osono et al. 2008 revenue grew 13 - fold – an annual growth rate of 10.1%, and between (Abernathy at the same time 1978 ). 2008 ; MacDuffi e 2008 ; Osono, ‘ radical : 96). Between 1980 and 2006 its E XPLO I TI N G D I LE M M AS AN D PARAD OXE S 71997 191 world organizations in service industries such as hospitals. Detailed study of the Toyota Corporation has revealed that the key to its success is its subtle handling of – and indeed promotion of colleagues observe: ‘ The company succeeds we believe because it creates contradictions and paradoxes in many aspects of organizational life 98). In many areas it deliberately fosters contradictory viewpoints and chal-lenges its managers and employees to fi nd answers which transcend differ-ences rather than settle for compromises. Examples of its paradoxical nature include: it takes big leaps yet is patient and moves slowly; it grows steadily and yet maintains a state of never - satisfi ed and indeed even a degree of paranoia; it has outstandingly effi cient operations and yet seems to use employees time wastefully (for example including large number of people in meetings at which they often do not directly participate); it is frugal and yet spends heavily is selected areas; it maintains a strict hierarchy and yet prompts employees to challenge. In order to foster these ‘ contradictions expansion with complementary forces of integration include the setting of highly stretching and near there is a huge emphasis on experimentation ages all employees to search for improvements by highlighting mistakes and failures. Third, despite its huge emphasis on effi ciency and a standardized system, it also promotes and encourages local customization. These forces of expansion are complemented by forces of integration: the values of the founders are held in high esteem, these values are inculcated; the company is loathe to make any redundancies even in times of economic downturn and even when this policy costs money; Toyota also invests in communication across the board. Thus, the forces of expansion are balanced by the forces of integration in a manner which allows a restless forward momentum. In these and other ways, Toyota exemplifi es the contemporary manifesta-tion of managing with paradox. It can be seen to represent a living embodi-ment of a post - modern, knowledge - seems to have rejected the logics of the industrial age and through its constant experimentation with contradictory forces made a sition to the post - industrial, knowledge age – 2001 it opened 31 new plants around the world (Osono – 2. Moreover, its system has been widely emulated not only by the ’ s leading automobile companies and manufacturing forms, but also by et al. 2008 ): – contradictions. As Osono and ’ (2008: ’ Toyota combines both . Its forces of expansion - impossible goals. Second, – most notably, Toyota encour-forces of based, manufacturing company. It ‘ successful tran- 2008 : xii). Toyota ’ (Osono et al. 8 M AN AG E RI AL D I LE M M ASactively embraced and cultivated contradictions and management through paradox. In their extensive six - year study of Toyota across numerous coun-tries, Osono, Takeuchi and colleagues found that the company thrives on paradoxes; it harnesses opposing propositions to energize itself (2008: xii). Consider some examples of the contradictions: it thinks and acts both globally and locally – it has a Global Knowledge Centre and yet goes to extraordinary lengths to learn from and adapt to local cultures and settings. It combines hard and soft modes of management. It strives for short effi ciency and associated incremental wins while also striving for long step - change gains. It cultivates frugality yet is willing to spend large sums on selected projects. It cultivates stability and yet also a mindset of paranoia. It is characterized by bureaucracy and hierarchy yet fosters a spirit of dissent. It maintains both simple and complex modes of communication. It sets very hard - to - achieve goals yet emphasizes the need for a strong sense of reality. It expects small scale experimentation leaps. The company is constantly restless. Tellingly, the Toyota President, Kaysuaki Watanabe, said: ‘ The two things I fear most are arrogance and contentment ’ (Osono et al. 2008 : 214). He also observed:‘ actually ’ ...

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