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- A-— -m—wﬁm—‘Muﬁ‘ﬁ-ﬂ—a’

ORGANIZATIONS, INDIVIDUALS, AND LEARNING: A CASE STUDY OF A
NEW ORGANIZATION AND ITS LEADERS

By

Camilla J. Zawacki

A DISSERTATION

Submitted to
Michigan State University
in partial fulﬁllment of the requirements
for the degree of

DOCTOR OF PHILOSOPHY

. Department of Educational Administration

1997

ABSTRACT

ORGANIZATIONS, INDIVIDUALS, AND LEARNING: A CASE STUDY OF A
NEW ORGANIZATION AND ITS LEADERS

By
Camilla J. Zawacki

Ways of understanding organizational development are enhanced through career
analysis. This is a study about organizational learning and development that considers
both organizations and individuals. The case study methodology was used to study ways
of learning, but it seems incomplete once career issues are placed alongside the
organizational issues. Organizational learning ideas produced from a career study become
complementary to the case study and provide new ways of thinking about learning and
development in the organizational domain.

This study is about organizations and their development in contemporary times.
Today, organizational research often considers how to create desired changes within a
rapidly changing environment. Though many variables may be considered when
attempting to understand and control necessary changes, individuals, as eﬂ‘ective change
agents, are often questioned. Rather than individuals, the work of groups, teams or the
entire organization are considered primary vessels for delivering change.

An heuristic ﬁ'arnework is applied to a multi-disciplinary study of one young,
contemporary organization, created primarily to solve a complex, important problem —
rising health care costs. The ﬁ'arnework not only produces two studies about
organizational learning — a case study and a career biography - but also creates a third set

of ideas by contrasting the two studies.

0 First, a complementary, more expansive way of understanding organizational change
emerges when career issues are attached to an organizational analysis.

0 Second, the career analysis suggests that ways of learning for the organization,
considered signiﬁcant in the case study, may not recur or will be adapted as careers
mature.

0 Third, unlike the organizational analysis, the career analysis isolates times when an
individual’s ambivalence toward an organization may impact upon the organization’s
development.

When ideas ﬁom the two separate analyses are contrasted, the inﬂuence of an
individual upon an organization’s development appears signiﬁcant. The organizational
case study observes that past achievements are ways of learning which aid the
organization’s future development. But, the career analysis suggests that both the past
and future of an organization, at least in part, hinge upon the career development of
individual organizational members. A study about organizational learning should include
not only organizational features, but career considerations, as well. A study that includes
career issues will enrich and draw out new ways of understanding development and

change in the organizational domain.

 

ACKNOWLEDGEMENTS

The time required to complete this study would not have been available to me
without the support and encouragement of several people. I learned the meaning of the
saying, “Patience is a virtue.” My husband, Dave, has always been a very patient person.
I am grateful that he was able to extend his limit during this very long process. I am
thankful he never once grew too impatient and never questioned (only encouraged) my
reasons for having to do this. Similarly, yet differently, my advisor, Steve, also never
grew impatient with my eﬂ'orts. He saw me through several periods of haste that
sometimes required going back to review and rethink. Also from him, I learned the true
meaning of always putting student needs ﬁrst. From these two individuals, I have learned
and personally experienced the virtues of patience; I hope to exemplify this quality in the

future toward others.

TABLE OF CONTENTS

LIST OF TABLES ............................................................................... vii

LIST OF GRAPHS ............................................................................... viii

CHAPTER 1

ORGANIZATIONS, INDIVIDUALS, AND CHANGE ..................................... 1
Organizational Research: Limited Attention to Individuals ............................. 4
Historical and Signiﬁcant Changes in Organizational Research ....................... 10
Leadership Concepts Attend to Organizational Views ................................... 38 .
Conclusion: Integrating Career Ideas into Organizational Research ................... 42

CHAPTER 2

ORGANIZATIONS, INDIVIDUALS, AND LEARNING ................................. 50
What is organizational learning and how is it studied? ................................. 52
Organizational Learning Topics ........................................................... 62
Organizational Analysis Framework: Elements of Learning ........................... 76
Conclusion: A Framework for Studying Organizational Learning ..................... 97

CHAPTER 3

ORGANIZATIONAL LEARNING: A CASE STUDY .................................... 100
Qualitative Case Study Research .......................................................... 102
Introducing A New Organization: Learning to Solve Problems ....................... 113
A Case Study: Signiﬁcant Organizational Outcomes ................................... 121
Interpreting Organizational Events as Learning ......................................... 152

CHAPTER 4

ORGANIZATIONAL LEARNING: A CAREER BIOGRAPHY ........................ 178
Career Analysis Models .................................................................... 180
Related Leadership Principles ............................................................. 198
Narrative Biography ........................................................................ 208
A Career Biography: One Leader’s Story About Learning ............................ 218

CHAPTER 5

CONCLUSION: CONTRASTING VIEWS OF LEARNING ............................. 259
Findings from a Case Study - Ways the Organization Learns ......................... 262
Findings ﬁ'om a Career Biography - Ways the Leader Learns ......................... 266
Findings from Parallel Analyses: Different Views of Learning ....................... 269

Reﬂections .................................................................................... 295

Recommendations ........................................................................... 298
APPENDICES .................................................................................... 299
BIBLIOGRAPHY ........................... 335

vi

LIST OF TABLES

Table 1.1 - Changes in Organizational Research ....................................... 11
Table 2.1 - Senge’s Five Learning Disciplines ......................................... 56
Table 2.2 - Learning Categories ................. 82
Table 3.1 - Learning Categories .......................................................... 153
Table 3.2 - Event #1 - Designing and using a new database .......................... 157
Table 3.3 - Event #2 - Publicly supporting proposed hospital merger ............... 162
Table 3.4 - Event #3 - Securing direct purchasing contracts with area hospitals .. .168
Table 4.1 - Career Models ................................................................. 184
Table 4.2 - Characteristics of Four Stage Career Model .............................. 190
Table 4.3 - Learning Categories .......................................................... 193
Table 4.4 - Rost’s Fom' Elements of Leadership ....................................... 206
Table 4.5 - Learning Categories .......................................................... 249
Table B.1 - HC 2000 Organization ....................................................... 310
Table C.l - Sixty-year Chronology of Health Care Industry in United States

and Michigan .................................................................. 322

vii

LIST OF GRAPHS

Graph 3.1 - Health Care Pricing Philosophy of HC 2000 ............................ 144

viii

Chapter 1

ORGANIZATIONS, INDIVIDUALS, AND CHANGE

I recently met with a German senior manager. ‘In Germany,’ he said,
‘our organizations are largely run by engineers. Such people think of the
organization as a machine, something that can be designed, measured, and
controlled — managed, in other words. It worked well for us in the past, when
our organizations typically produced emcient machines of one sort or another.
In the future, however, we can see that organizations will be very diﬁ‘erent,
much more like networks than machines. Our brains tell us this,’ he went on,
‘but our hearts are still with the machines. Unless we can change the way we
think and talk about organizations, we will stumble and fall.’

What he said was true not just of German organizations, but of those in
many other countries. Our models of organizations, and the way we talk of
them, has hardly changed for a century. They were thought of as pieces of
engineering, ﬂawed pieces, maybe, but capable of perfectibility, of precision,
of full eﬂiciency. The very word management, with its origins in the running
of the household or some say, of army mule trains, implies control backed by
power and authority, which is perhaps why it is a word that is much disliked
by professional and volunteer groups that value autonomy highly.

The newly emerging language of organizations is very different. The
talk today is of ‘adhocracy,’ of federalism, of alliances, teams, empowerment,
and room for initiative. The key words are options, not plans; the possible
rather than the perfect; involvement instead of obedience. This is the language
of politics, not of engineering; of leadership, not management. . . . Soon we
will see political theory take its rightful place as a core course in our business
schools. It will be a recognition, at long last, that organizations are
‘ communities of individuals, not arrays of human resources. . . .

The new organizations are dispersed. Workers are employed in many
diﬂ‘erent oﬁces and locations, wear different hats, and do not necessarily owe
all their loyalty to one organization. . . . More and more, the organization is a
‘box of contracts’ rather than a home for life for all its people. A virtual
organization is one that you do not necessarily see, certainly not all together
in one place, but that nevertheless delivers the goods.

Virtuality means managing people you cannot see and cannot control in
any detail. This kind of management by remote control can only work when
trust goes in both directions. Trust, like authority, has to be earned, tested,
and if necessary, withdrawn. . . . In response to the requirements of trust,

1

organizations areng to regroup themselves into semi-permanent task
forces in which the members know and understand each other well.
The leadership of these groups is not of the old-fashioned ‘follow-me’

type. You could call it a distributed leadership. (Charles Handy, 1996)

Introduction
Charles Handy, noted economist, describes a need today for thinking and talking
about organizations differently. The way in which we view organizations today has
changed considerably from when we began studying them early in this century.
Organizations and their development have been studied extensively for most of this
century. Today, this ﬁeld of study -- organizational analysis — is changing dramatically
from the ﬁrst “scientiﬁc” studies conducted early in the century. This ﬁeld offers rich
contextual ideas, multidisciplinary perspectives, and is still an emerging ﬁeld. Hardy,
along with many other organizational researchers, believe this body of research continues
to be limited and of questionable value, as aﬁeld of study that effectively informs
practice. (Jacques, 1991, Drucker, 1993, Nonaki and .Takeuchi, 1995, Bennis, 1996)
New contemporary research ideas about organizations and their effectiveness,

include ideas about: empowerment, team-based management, participative decision
making and organizational learning, to name just a few. Organizations have grown in
prominence in our society and organizational research continues to develop as a way of
informing practice. Organizational research is intended to increase our understanding of
this important social phenomenon - organizations -- and to prescribe ways of improving
them. While Handy urges us to begin thinking and talking about organizations in new
ways, an historical review of the organizational literature reveals that this ﬁeld already

has changed and continues to evolve in many new ways.

This chapter begins with a general overview of the ﬁeld of organizational research
and how it has changed. Some changes both in thought and practice have been quite
dramatic. Three signiﬁcant shifts in the ﬁeld are particularly noteworthy, and therefore
are extensively described in this ﬁrst chapter. First, a review of the Human Relations
View and Socio-Technical View describes how we have altered our way of thinking
about and studying organizations, today. Included alongside this discussion of changing
research trends, is information about how these changed views affect our ways of
thinking about and studying individuals and their inﬂuence upon organizations. The
discussion centers around how organizational research has expanded and now
incorporates many facets of study, but the importance of the. individual seems diminutive
in comparison.

Organizational analysis is thought to inform practice. But the role of the
individual toward inﬂuencing and otherwise affecting organizations, ’seems relatively
insigniﬁcant in organizational studies. (Barnes, 1976; Farce, Monge and Russell, 1979;
Kast, Fremont and Rosenweig, 1985; Huber, 1990) As new ways are, taken to continue to
improve this ﬁeld of study, introducing or including the individual in more signiﬁcant
ways in organizational analysis, seems prudent. This study devises an organizing
framework that integrates individual (career) issues into an organizational analysis.
Though this is not a common way of studying organizations, information derived from
the individual analysis complements and expands the other information taken from a
traditional organizational analysis. This chapter begins with an overview of how the
ﬁeld of organizational research is still changing and discusses how information about

individuals is mostly absent from the literature.

ORGANIZATIONAL RESEARCH: LIMITED ATTENTION TO INDIVIDUALS

Even though research ideas have changed in signiﬁcant ways, many of us still
think about organizations as machines that become more efﬁcient, just as Handy
suggests. Organizational literature regularly contains contradictions and criticism of this
classical view of organizations. For example, research often describes organizations as
dynamic human and social entities, rendering them diﬁicult and complex to study.
Organizational behaviors are seen as networks and systems, also very complex. Even as
the research (and practice) has expanded to incorporate many new ways of thinking about
and studying organizations, this ﬁeld of study is still considered limited and narrow.
(Morgan, 1986, Bolman and Deal, 1991 , Scott, 1992)

The early scientiﬁc, or classical, view of organizations was a closed, narrow view
of organizations. According to this view, individuals were something to optimize for
greater efﬁciency. Around the 1950’s, organizational studies adopted a more humanistic
approach The ﬁeld grew broader, more open, and now considers organizations complex.
Even though new and complex ideas proliferate in the ﬁeld, most seem to diminish the
importance of the individual in the organization. Organizational studies emphasize and
place high value on factors such as: formal structure, functional design, communication
systems, hierarchical controls, and other orderly (mechanistic) systems. Many
descriptions of organimtions, portray the individual, as having a negligible inﬂuence on
an organization in relation to such other factors. While many new and important
organizational thoughts are regularly discovered, individual inﬂuences upon
organizations have grown more limited except when issues of creativity, or

entrepreneurialism are considered. Individuals are considered when the concept of

leadership is explored, but though closely related, that is a separate ﬁeld of study. When
individuals are considered, the omniscient view of the organization prevails. Even
though organizations are the subject of the research, to almost always characterize the
organization as supreme, and basically ignoring when or if individuals may hold equal or
even greater power, remains a question about this ﬁeld of research.

In the organizational literature, the success and future of organizations is generally
described in terms of organizational abilities, rather than individual abilities. Many
aspects of organizations are isolated and analyzed in an effort to better understand this ’
very powerful force in society, individuals being one of these, occasionally . Ability
based on organizational structure, hierarchy, communication, decision making processes,
and problem solving approaches are scrutinized and analyzed in an effort to increase
organizational eﬂ‘ectiveness. Handy describes that organizational structures are changing
into virtual states. He describes that organizational activities today are about what is
possible rather than what is actual. Thus, the potential of the organization is thought to
be limitless and certainly seems to exceed that of the individual, except when there might
be the possibility that a hero is present. (Though encouraging leaders to be heroes is
discouraged, today.) Current thinking suggests that organizational potential should not
reside within just one individual or a few. Thus, the perceived role of an individual
within an organization is relatively insigniﬁcant, (or discomaged), when compared to
structural, formal, and procedural organizational features.

In addition to an emphasis on structural/functional features, another reason
individuals have not been elevated in importance as an organizational inﬂuence, is the

determination that most organizations need to change dramatically. While technology

has been an impetus for change in the last decade, individuals are considered major
deterrents to change. In fact, research suggests that people resist change, most any type
of change, and most any time. The type of changes needed in organizations are thought
immense, ranging from communication systems, control systems, formal and informal
activities, to resolving conﬂict, changing behaviors and devising new problem solving
techniques. Individual efforts are often seen as resistant to needed change and sometimes
even antagonistic. (Huey, 1993) Yet while the individuals in organizations may resist
change (and are viewed as the problem), they are also considered critical to the solution.
But rather than individually, team-based leadership and group efforts are more often
advocated as ways of reducing individual resistance and arriving at solutions.

Also due to technological advancements, organizational problem solving is now
considered very complex. Though eﬁ'ective leadership is considered helpful in
organizational problems solving, group activities, such as, participative decision making,
team management, continuous quality improvement teams and reengineering groups, are
thought most eﬂ'ective in handling complex technological problems. Handy calls the
emerging leadership, “distributed leadership,” and others describe the new form of
leadership as transformational. (Rost, 1991) Leaders are expected to inspire change and
transform a workforce, while simultaneously sharing, or relinquishing their power and
authority. Internal conﬂicts that these emerging concepts cause are sometimes
discouraging to leaders. And just as the organizational literature calls for new ideas about
organizational development, leadership literature describes a leadership void in today’s

organizations. (Drucker, 1995, Gardner, 1995)

According to the 'literatme, leaders need to become more collaborative,
cooperative and participative. The power and authority of individual leaders is to be
relinquished through shared, collective, facilitative activities. An emphasis on
democratic organizational processes, the need to guide continuous change, and encourage
participative management has promoted the valuing of groups, not individuals, (and
especially not leaders) in this dynamic environment. Thus the importance of the
individual leader though still considered critical, is overshadowed by the prominence of
groups and teams. Leaders, though important, must share their status and authority with
many others.

Organizational analysis is expansive, and grows every day. Today this ﬁeld
includes a widening range of factors, considered important to ideas about organizational
development, i.e., change. Organizational studies isolate structural, ﬁmctional, and
procedural features and stress the need to rely on organimtional abilities, not individual
abilities. Analysis of change and development will sometimes describe the individual as a
serious deterrent. The emphasis on shared, or group, efforts is favored over individual
eﬁ‘orts. Leaders are expected to inspire, while giving up some of their control and power.
Finally, as individuals are encouraged to assimilate into groups, to adopt shared views,
and to facilitate change collaboratively, the unique abilities of one individual and
individual eﬂ‘orts that contribute to an organization - such ideas are being ignored and
lost. (Kast, Fremont and Rosenweig, 1985)

In what ways are individuals able to inﬂuence today’s complex, dynamic
organizations? Can individuals control the actions of organizations, even though

organizations are large or unwielding? As individuals pursue their careers in

organizational settings, in what ways are organizations affected? Do career plusuits
hinder or hamper organizational development? This study suggests that individual
inﬂuences upon organizations are signiﬁcant and thus warrant greater consideration
within the organizational research ﬁeld.
Career Analysis in contrast

Organizational research suggests that individual needs and goals must be
assimilated into organimtional goals, if success for the organization is to be achieved. If
individual goals are different from organizational goals and still plusued within the
organization, organizational research suggests that such behaviors will not serve the
interests of the organization. This view seems parochial. V

Before suggesting some alternative thinking, an introduction of career
development concepts helps shape a contrast between career development research and
organizational research. Career studies emphasize that individuals should seek out and
create developmental experiences, primarily to enhance their individual careers. Career
literature suggests that careers are developed in two primary ways. First, careers develop
by using and practicing already developed skills and knowledge, (in organizations and
elsewhere). Second, careers can advance through new developmental experiences.
(Super, 1984) Practicing already possessed skills and seeking new experiences are
career-directed behaviors carried out in organizational settings. These concepts, that
include self-initiated and self-directed behaviors, are of particular interest in this study.

Career motivated behaviors are designed, selected, and developed to enhance
existing individual abilities. Individuals make choices and decisions about what activities

and experiences to engage in, and decisions about how careers will be pursued. Career

 

research suggests that these choices should be made to enhance the career. Individuals
will pursue their work in certain ways and seek new types of experiences, within
organizations, to meet individual needs. How do career motivated behaviors inﬂuence
organizational activities? How do career pursuits affect organizational outcomes? For
the most part, neither ﬁeld of research is very concerned with these questions.

While organizational studies pay attention to meeting organizational needs, career
studies pay attention to meeting individual needs. If both sets of nwds are not
compatible, what happens? If the two sets of needs actually conﬂict, which ones are
pursued? When? Why? Both ﬁelds of study acknowledge the need to establish
compatible goals and the literature often suggests ways to try do so; but this may not
always be possible. In the presence of competing goals between organizations and
individuals, career development concepts suggest that individual career needs will often
be pursued. In contrast, organizational studies suggest that when individual and
organizational goals are incompatible, individuals will (should) give precedence to
organizational priorities. From the organizational perspective, what happens when career
needs are pursued over organizational needs?

Finally, the career literature suggests, that when situations pose a signiﬁth
career risk, the decision to proceed toward this threat, is unlikely. Instead, individuals
will alter their actions in ways they would expect to avoid the risk and have the greatest
chance of success. Sometimes, individuals will repeat actions that were effective in the
past. How does this avoidance or alteration in actions, career-motivated, aﬂ‘ect an
organization? How are organizations shaped and structured diﬁ‘erently when an

individual either tries to avoid a potential career disaster, or pursues certain activities

 

10

because, in the past, they brought career success? This study looks at individual career
development actions and their inﬂuence on organizations. One way in which career
concepts can be related to organizational development is devised. An organizing
framework facilitates observations about organizational development factors and career
development, and relates the two.

The next part of the chapter, describes three changes to the ﬁeld of organizational
research, none particularly supportive of individual inﬂuences. As these changes are
reviewed, the diminutive view of an individual and his/her career perspective is noted.
Though the ﬁeld has changed signiﬁcantly, especially during the last half of the century,
more changes are still thought necessary. Possibly introducing the individual factor into
the research should become one of these improvements. This next section identiﬁes
certain dimensions of three historically signiﬁcant research views: 1) Early Classical
view of organizations expanded; 2) Human Relations view adds human and behavioral
concepts; 3) Socio-technical oﬁem a compelling view about the need for change. After
reviewing these, their eﬂ‘ects upon leadership views are reviewed. The ﬁnal section of
this chapter sets forth ideas about why career factors have not been, but should be,
considered more extensively in this expanding and lacking ﬁeld.

HISTORICAL AND SIGNIFICANT CHANGES IN ORGANIZATIONAL
RESEARCH

Three views have expanded the ﬁeld of organizational research during this

century. Appropriately, the subject of the organization remains central to the analysis,

but the importance of the individual as a signiﬁcant factor of organizations seems to have

 

ll

diminished. As organizations are viewed more complexly and ﬂour new disciplinary
vantage points, individuals have grown less important.

The following table identiﬁes three views of organizations, that both practitioners
and researchers identify. This section reviews each of these views, in two primary ways.
First, as organizations have changed, so too has the way in which we study them. Next,
the inﬂuence of the individual upon the organization, both in practice and in study has
been altered, but not increased, according to these views. Today, there is considerable
doubt about how much individual efforts do affect organizations. The design of related
studies perpetuates this doubt. (Roethlisberger, 1968)

CHANGES IN ORGANIZATIONAL RESEARCH

 

 

 

 

 

 

Table 1.1 ,

Time Period Organizational Research Changes

1920’s Classical view - Mechanistic, scientiﬁc studies to improve
organizational efﬁciency

1950’s Human Relations view - open, socialization, and cultural
themes establish contingency view of organizations

1970’s Socio-technical view - Changing and adapting organizations
due to technological advancements

 

Charles Handy, who was quoted at the beginning of this chapter, implores us to
begin to think and talk about organizations in new ways. Yet, the ways in which we think
and talk about organizations since eighty years ago, has already changed dramatically.

As our views of organizations evolves, the factor of career pursuits has either been
considered less signiﬁcant than other factors, like organizational structure, or has been
portrayed as an undesirable feature of organizations, not worthy of study. Though

organizational researchers admit that career-related activities may, sometimes, be an

 

12

important organizational consideration, many argue that factors such as structure,
hierarchy, authority, communication systems, process and procedure should take
precedence. (Daft, 1995) This study suggests that career issues deserve more prominence
in the organizational literature, especially given the changing nature of organizations.

Today, organizations are a dominant force in society and upon individual lives.
Organizations inﬂuence people in many profound ways. But recently, the value and
contribution of organizations upon individual lives has increasingly come under scrutiny,
and criticism of organizations has accelerated. (Victor and Stephens, 1994) During the
last few decades, organizations have changed. Studies during that same time suggest that
the functionality of organizations is shrinking in many ways. (Peters, 1987, Mintzberg,
1989, Quinn, 1992, Drucker, 1991) Organizations are changing, and they continue to
inﬂuence our lives in profound ways. At the same time, many people are growing very
wary of the eﬁ‘ects organizations upon not only on our lives but also in society. (Drucker,
1991)

This section looks at how organizational analysis has expanded during this century.
Ways in which organizations inﬂuence individuals and conversely, the inﬂuence of
individuals on organizations is considered. In this way, we begin this study about how
individuals are thought to pursue their goals within organizational settings.

Organizational analysis began soon after the industrial revolution and changes in
analysis closely parallel changes in organizations, or vice versa. Organizational analysis
contains applied theoretical concepts to help inform organizational practice. At times,
organizational practice informs organizational analysis. Though careers are routinely

carried out within organizations, the eﬁ‘ects of career development activities upon the

l3

organization are generally not a part of analyses known as organizational analysis. In this
section, as organizational research ideas are presented, the effects of needed change and
the limited ways in which career concepts are associated are included. Later in the
chapter, the merit in expanding career concepts to this expanding ﬁeld are offered.
Early Classical View

Soon after the onset of the industrial revolution, Max Weber set forth a classical
bureaucratic model for organizations. Weber is recognized as having developed the single
most powerful theory of organizations, and his “ideal” type of bureaucracy was and still

is a starting point for many organizational analyses. (Myers, 1996))

Weber’s bureaucratic organization is a rational model of a closed system. Weber
considered the “human” dimension of organizations as one way of meeting an
organizational objective. Weber stressed the need for impersonal relationships and a
clear distinction between private lives and “ofﬁcial” lives for members of organizations.
He ascribed to highly-mechanized, formal organizational structures, where specialization
and diﬂ‘erentiatiou of tasks prevailed Normalized task speciﬁcations, formal rules,
formal spans of control, and role differentiation created a mechanistic view that theorists
continue, today, to study extensively. Many of Webers’ ideas, and other economic and
bureaucratic ideas, though seriously questioned, have not been totally rejected. (Farce,
Monte & Russell, 1977) I

Up to the middle of the century, most organizational theory suggested that tightly-
controlled, non human, organizational structures were “best” for achieving overall

efﬁciency; and that a high degree of specialization among workers was most effective.

14

The scientiﬁc management of organizations was thought to result in achieving high
outputs, standardized products and proﬁt maximization. The total organization was
viewed as an emcient machine, including its “human” dimensions. As this view was
widely embraced, other theorists began recognizing that individual workers within the
scientiﬁc management schematic had sometimes-intense feelings of boredom and stress.
Thus, some organizational studies began to suggest that the classical theory was too

narrow and uninformed. (Greenberg and Baron, 1990).

The Hawthorne Studies, generally considered very gnscientiﬁc, are credited with
beginning to recognize the importance of human behavior in organizations. As these
concepts began being explored, research objectives and research methods remained
rational and mechanistic. The human dimension was studied to determine ways people
could operate most efﬁciently, thus the economic model persisted. Tasks were assigned
according to individual skills and abilities and organizational roles were formal and well-
established. Centering around organizational needs, individual careers might be extended
through formal training. Such training was intended primarily to maximize
organizational efﬁciency. Early research on the human dimension of the organization

therefore, remained rational, technical and economic. (Greenberg and Baron, 1990)

Continuing with this brief review of the classical view of organizations and how
individuals were viewed, ways in which organizational analysis ﬁrst dealt with the
subject of career development is pertinent. Careers were still largely thought to be
determined by social and economic class. Some careers developed around functional

specialties but these were deﬁned by and tightly controlled to meet organizational needs.

15

Thus, the omniscient organizational machine controlled career development Conversely,
an individual’s inﬂuence upon the machine was of little interest and was thought to exist

as a part of formal authoritarian designs.

As the machine metaphor was expanded to incorporate the human relations model
of organizations, eventually a more open, ﬂexible, systems views of organizations
emerged. Along with this change, the effect of individuals upon organizations has

become more notable, and organizational views more multi-disciplinary.
Human Relations View

The human relations view of organizations demonstrates the importance of
organizations on lives and to society. This view began in the early 1950’s and continues
to evolve today. But, often the human relations view of organizations become only
supplemental to the classical view.

The shape and scope of organizational analyses changed dramatically when social and
behavioral scientists began studying organizations. Organizations began being studied as
open, not closed, systems. They were viewed as communities of individuals who adapt to
the world of work, often through social, and political, processes. As early as the 1960’s,
cultural properties were associated with organizations, including the concepts of morals
and ethics. Therefore within the human relations view, three sets of ideas have emerged
in signiﬁcant ways. These have aﬁ’ected the way in which organizations are studied and
described. The three sets of ideas are: open systems, socialization processes, and cultural

dimensions. Before covering each of these, a general description of the human relations

 

16

view is provided. Perspectives about change and individuals inﬂuencing organizations
are included.

A general description. Since mid-century, the mechanical, rational, non human view
of organizations has been gradually eroded by the human relations view. Though
organizational emciency still remains an important goal of organizational studies, new
themes have emerged from the social, behavioral, and psychological analyses about
organizations. Ways of motivating, inspiring, organizing, and cultivating relationships
among organizational members has surfaced in the literature. Even with this change, no
signiﬁcant body of knowledge has replaced Weber’s classical bureaucratic model of
organizations. (Bennis, 1994)

Organizations are studied by many disciplines, including psychology, sociology,
anthropology, political science, economics and history. Social and human dimensions of
organizations, called human relations models, became an important part of this area of
study around the 1970’s, often pushing the bureaucratic model to the background, (but
“Gt replacing it). One of the most famous, the Harvard Human Relations Theory of
Organizations still studied organizations from a Weberian viewpoint. Essentially, this
model regarded organizations as social systems with two major flmctions: producing a
Pmduct (a formal achievement), and the function of creating and distributing satisfaction
amOng the individual members of the organization (group-needs satisfaction). Elton
Marc’s Hawthorne studies established that social and environmental factors aﬂected
°rganizations (and organizational performance). Together, researchers begin paying
more attention to informal features of organizations, especially human relationships. The

Harvard Human Relations Theory minimized the importance of formal rules and

l7

emphasized that many patterns of human interaction were not represented on a
organization’s formal hierarchical chart Thus, informal activities were thought
signiﬁcant when attempting to understand organizations in more comprehensive ways.

(Farce, Monte & Russell, 1977)

The human relations model heightened awareness about human interaction in
organizations and identiﬁed the value in studying both the desirable and undesirable
forms of human interactions. For example, persuasion, inﬂuence, coercion, and control
became a part of organizational analysis. Both the beneﬁts and potential drawbacks of
such behaviors were often explored. (McGregor, 1985)

For some, studies of organizations are considered fundamental and rudimentary, and
serve as warnings that organizational analysis is inadequate and limited. (Bennis, 1994,
Drucker, 1993). In this study, the effects of career deve10pment upon organizational
activities, or the effects of individual efforts upon organizations, represents a change to
the research. Placing a higher value on knowing about career intentions, motives and
actions related to career development, and the eﬁ‘ect of these upon organizations, is the
main purpose of this study.

Human Relations Themes. Before discussing the incorporation of career
deve10pment issues into organizational research, three major themes within the human
relations view, are described. The last view in this ﬁeld — a socio-technical view —
completes the review of this area of research. As each set of ideas is covered, the

Signiﬁcance of the individual is also considered.

 

18

#1: Organizations as open systems. The study of behavioral and social features of
organizations has extended the organizational body of knowledge, but no single, well-
formed way of thinking about organizations has emerged. Organizational research, even
from the systems perspective, does not sufﬁciently explain, nor inform practice, in
important and valuable ways. (Bennis, Parikh and Lssem, 1994) For example,
contemporary studies identify and recommend that organizations need to become less
formal and will beneﬁt ﬁ'om more complex communication networks. This open view
advocates organizations that are dynamic, adaptable, ﬂexible, and quickly responsive to
extemal environmental inﬂuences. The open view suggests that decision making
approaches should vary and adapt depending on each set of circumstances. This way of
thinking about organizations is sometimes called the contingency view.

Unlike Weber’s highly structured organizational model, the open view, or
contingency view, suggests that when one organizational design is applied to two
different organizations, results or outcomes will be different. (Myers, 1996) While the
open view has expanded by studying a great variety of organizational features, the result
also has been that organizational studies are less able to predict, or generalize about, how
and When certain factors produce desired organizational results. Many prominent
°rganizational researchers suggest that the value and beneﬁt derived ﬁ'om organizational
Studies should be heavily scrutinized, questioned and challenged. (Drucker, 1994)

The open systems perspective has helped establish the importance of
“demanding lmique situations and different circumstances. Contemporary studies have
“Wed past being concerned about individual needs and motives, and instead study the

uniqueness of organizations. The organization is often regarded as a separate and

19

independent force - apart ﬁ'om its individuals members. Scott refers to organizations as
“the subject” and as something that dominants and is very prominent in our lives. This
perspective advances our thinking to the point where meeting organizational needs is
thought to sustain an organization, and meeting the individual needs of organizational

members is not necessarily signiﬁcant as organizational success is studied.

The open view has led some researchers to believe that we should understand
organizations as a single, separate unit of analysis. A holographic metaphor aptly
describes the philosophy behind this idea Bennis sees the universe of organizations as
one gigantic hologram. In the realm of time, space, things and events that are separate
and discrete, organizations, not its parts, is one entity and undivided. “The part is in the
Whole and the whole is in each part.” (Bennis, 1993.) Similarly, Morgan applies the
holographic view to organizations in this way: “(T')he the parts reﬂect the nature of the
whole, since they take their speciﬁc shape at any one time in relation to the contingencies

and problems arising in the total situation.” (Morgan, 1986)

Organizational studies emphasize the parts as well as the whole. One stream of
literature emphasizes the separateness of “process,” “system,” and “outcomes,” which
also diminishes the signiﬁcance of individual members and their actions upon
Organizations. Birnbaum developed the concept of “organized anarchies.” He concluded
that “decisions of the system are a consequence produced by the system, intended by no
one and decisively controlled by no one.” He suggested that this is why some
orgallimtions are counterintuitive. Thus, he suggests that the organization is a machine

(or h“man-like entity) that is sometimes out-of-control. (Birnbaum, 1991)

20

Birnbaum believes that organizational behaviors are no longer a process where
thinking precedes action, where action serves a purpose, nor a place where purpose is
related to consistent goals. Similarly, Pfeffer (1982) studied how the outcomes ﬁ'om
organizations were not controlled by organizational participants, but instead were
determined by the resources produced from organizational structures and procedures.
This type of thinking guides the inquiry of organizations, and the study of practice, today.
This type of thinking diminishes the role of the individual within and upon the
organimtion. The open view expanded our understanding of organizations considerably,

but has stiﬂed thinking about the importance of individuals in this societal phenomenon.

As careers are pursued, individuals may try to diminish or control the power that
organizations. Making career decisions may mean that organizations are simply an
envuonment in which to carry out individual career activities. Some research suggests
that organizations are a source of ills besetting our society. They are sometimes viewed as
a Power source that only aids the “elite,” or are a way to perpetuating class structure.
Organizations are socialized units in a larger environment, according to the open view.
Organizations are controlling forces, rather than forces to be controlled. (Scott, 1992)
This. much of the organizational literature suggests that career development should be

reStl‘ioted and controlled by the organization.

#2: Socialization processes. Just as the open systems view has increased the
perceived power of organizations over individuals, studies about communities, group
a'“iVities and other social activities have done the same. Unlike the rational (classical)

View Of organizations, the social view of organizations proclaims the signiﬁcance of the

21

emotional, political, social and other u_npredictable aspects of organizations, all caused by
humans. The power of the organization, not only as the collective power of its members,
but as a social system, has become an intriguing way of studying organizations - one that
has gathered pace in the last two decades.

Today, organizations are viewed as systems or networks of interrelationships.
Team and group activities are a series of interconnected processes. Viewing
organimtions as societies, or as social constructions, connotes that individuals are not
self-contained imits. Individuals derive their identiﬁes ﬁ'om both relating to and
distinguishing themselves ﬁom others in various groups. The risk of individuals is not to
appear too individualistic or they might be perceived as manipulative, as seeking
obedience or being closed to the ideas of others. As groups have become a key
organizational mechanism, individualism is perceived as a form of separateness and, thus,
unhealthy for the organization. (Again, this thinking is altered when considering
innovation and creativity needs of the organization.) The socialized view of
organizations suggests that an individual cannot perform assigned work eﬂ‘ectively, or
fulﬁl] Organizational responsibilities without ﬁrst establishing on-going, working
relationships with others. (Schein, 1970, Taylor and Hobday, 1992) I

Career theorist, Edgar Schein, studied group relationships and their eﬂ'ectiveness
in the early 1970’s. He recognized that groups were important to self-deve10pment, as
was our need for afﬁliation and self-achralizing. Groups build one’s self-esteem, provide
an Opportunity to test reality, develop a sense of security and are often very stimulating
from more mundane job responsibilities. Yet, the effectiveness of group efforts over

individual efforts was still very much in doubt in that era; At ﬁrst when Schein

 

 

22

recognized the inﬂuence of groups upon career development, he concluded: "‘A great
deal of research has been devoted to the question of whether the group or isolated
individuals, whose work can be pooled, is the more eﬂecﬁve problem-solving instrument.
No deﬁnitive answer has yet been reached, but some key variables have been identiﬁed
and some myths have been exploded.” (Schein, 1970)

Since then, early negative perceptions about groups have been balanced with the
contributions to the organization ﬁ'om group (team) efforts. Eﬁecﬁve organizational
small-group models have grown both in practice and analysis. Continuous quality
improvement, or quality circles, were one of the ﬁrst to become favored, though,
questions still abound about youps. Do they produce more conservative decisions? Are
groups slower and ineﬁcient? Do groups stimulate or stiﬂe creativity? Are groups less
prone to err in judgment than individuals, or are they really better informed than
individuals? Though the eﬂecﬁveness of groups is widely debated, their growth within
organizations has been phenomenal in recent years. (Taylor and Hobday, 1992)

The most signiﬁcant outcome from this growth has been the recognition that
groups will develop peculiarities. Also, there is a realization that not all situations nor
Pmblems within organizations should be handled by groups. Sometimes individual
efforts are better. It seems that those times when individual eﬂ'orts are best, however,
have grown less common. Factors like the type of task, environmental diﬂ‘erences, the
his“? Of groups, and available leadership available, all applied to group activities,
infOTms ways of designing and implementing organizational solutions and change.

By the 1990’s many organizations had moved, at least in part, to team-based

Structures. In 1970, Schein predicted quite the opposite, “So much emphasis is given to

 

23

challenging each individual and so little emphasis in given to collective eﬁ‘ort, since
individual contributions are too diﬂicult to judge. Groups are not likely to be encouraged
to develop.” Yet Schein’s concerns about the inability to recognize individual
contributions sometimes accompany the investigation of organizational groups.

As American companies began developing more global views, Japanese
management, organized around small socially-inﬂuenced groups, was emulated in the
United States. Though our country’s history began with rich examples of individualism,
groups were thought to generate an esprit de corps, empower employees, and improve
communications within and outside organizations. Today, synergy and empowerment is
thought to produce positive attitudes among employees. A desire to achieve a
cooperative spirit, an emphasis on mutual gains and eﬁ‘orts to achieve group objectives,
are favored. Ideas that promote the collective nature of individuals within groups, also
reduces the valuing and recognition of individual solitary eﬂ'orts. (Leavitt and Bahrami,
1988)

Groups, like organizations, require the integration of personal needs into
organizational needs. If individuals resist group efforts or seem to favor personal
intereSts, either inside our outside a group setting, they risk being accused of dogmatism
and infringement upon others. Individuals pursuing personal interests put the
orgo‘llization at risk. (Elﬁ'ey, 1982) An emphasis on personal aspiration and personal
imam has been replaced with an emphasis on the human need to amliate. Still some
mob favors groups, cautiously, since groups may produce too much conformity, have
closed or single-minded views or can perpetuate nepotism. Yet, the ability of groups to

promote, mutual gain, a cooperative spirit, integrate efforts, and produce harmony among

 

24

organizational members is highly sought through group activities. Inter and intra
organizational groups, available in a vast quantity of shapes and sizes, have now become
standard to organizational designs. (F iol, 1994)

Eﬂ‘orts to create shared ﬁ'ameworks and develop a consensus, while still
recognizing individual differences - is the challenge of the 90’s. Joint efforts, harmony
and cooperative approaches are considered important organizational objectives. An
organimtion’s ability to sustain group processes that produces desired results is
sometimes characterized as collective learning. The socialized theme within the human
relations view has expanded this ﬁeld to consider ideas about learning, but mainly ﬁorn
the group or organizational perspective. The role of individual learning appears related,
but secondary.

Finally on the subject of socialization, group decision making may be thought of
as an aggregation of individuals’ meanings, but this is often disputed in contemporary
research because of the complex nature of most organizations. “Group thinking does not
equal the sum of its individual parts.” (Fiol, 1994) Instead, the prevailing thinking
comes ﬁom the organizational viewpoint, and discourages separateness and
individualism. In 1994, Bennis expresses the present-day balancing act between
individual efforts and group efforts, in this case ﬁ'orn the leadership perspective:

You cannot do truly good work, fulﬁll your function of eﬂ‘ectively
organizing the task of your groups, unless you yourselves connect with

your group members on the basis of reciprocation. . . . People join a

company as individuals for a variety of personal reasons, each with his

own objectives and aspirations. They have to be integrated into the work-

team that knows its tasks and the reasons behind them. It devolves upon

you to articulate the corporate aims. . . . As a new-paradigm manager,

whatever your position in the hierarchy, you remain open to being
inﬂuenced, if you want to inﬂuence. Otherwise, you revert to the old

25

outrnoded command - obedience syndrome, or your inﬂuencing become

simply manipulating techniques, neither of which works well in the

emerging business world.” (Bennis, 1994)

Individuals are thought to gain a sense of identity and achieve success primarily as a
member of diﬂ‘erent groups. The problem that Schein identiﬁed — the diﬂ'rculty in
judging individual contributions — remains a dilemma to this way of thinking and
studying organizations. (Victor and Stephens, 1994)

The human relations view values human contributions to organizations, and the
upshot of the social view of organizations is an increase in our understanding
relationships and interconnectedness among individuals. Yet, the emphasis on the worth
of individual effort has been substituted for the collective eﬁoﬂs of aﬂiliating individuals
striving toward a shared purpose. Analysis of the human dimension of organizations has
created a more comprehensive and informed view, than the classical view. Organizations
viewed as Open, social systems have been extremely helpful. A third important stream of
research has also come out of this human relations view - organizational cultures.

#3:. Organizational cultures. The third large body of research, originating from
the human relations view, has further expanded our understanding of organizations as
social and human phenomena. Organizations are now thought to contain cultural
dimensions. Closely related are the ethical and moral dimensions of organizations. Not
only has the human relations view led us to understand organizations as Open systems and
a series of interrelated social activities, organizations as an embodiment of a culture, or

several cultures, is now a widely accepted view.

26

Ideas about corporate, or organizational, cultures began in the early 1980’s.
Research by Deal and Kennedy (1982), provided an extensive discussion about the nature
of culture, the types of culture and ways of managing culture. The Administrative
Science Quarterly, in 1983, prepared a special edition devoted entirely to issues of
organizational cultures. A variety of perspectives and studies about cultural features of
organizations were considered in that edition. Initially, little was known about how they
formed, or about ways of discovering speciﬁc features of a culture. Studies asked, “How
do organizational cultures?” Though little was known or understood, the importance of

culture upon organizational activities grew.

Organizational cultures are shared beliefs, attitudes, values and expectations
among organizational members. Early founders of organizations are generally thought to
create an organization’s culture, and organizational members are thought to have a role in
sustaining it. As time passes since an organization was formed, an individual’s ability to
change the organizational cultures becomes more diﬁcult. (Daft, 1995) Norms that
govern behaviors in organizations are studied as corporate philosophies, formal
procedures and rules, communication systems, reward systems - all things that reinforce
certain behaviors and sustain culture. Researchers now recognize that an organization
does not have just one culture, but many subcultures. Researchers believe that by
studying features of the primary culture, we learn more about managing change. (Bolman

and Deal, 1992)

Morgan’s metaphorical view of organizations, offers an interesting view of

organizational cultures ﬁom an open systems perspective:

27

Organization rests in the system of meaning. It does not depend
on the existence of bureaucratic structures or rules. . . . A culture metaphor
. .points to a way of organizing through shared norms, values, ideas and
beliefs and thus shared visions and directions for future development. . . .
Through the political metaphor, we see how it may be possible to organize

around the interplay of competing interests, forging unity through
negotiation, wheeling and dealing, or perhaps even through raw coercion.

.These examples serve to illustrate the point that our thinking about
organizations inﬂuences how we organize. We can overcome familiar
problems by learning to see and understand organizations in new ways, so
that new courses of action emerge. (Morgan, 1986)

Uniﬁed actions based on shared values, according to this culturally-constructed
view of organizations, is also tied to ethical and moral concepts that aﬂ‘ect organizations.
Organizational studies about culture seek answers to questions about the responsibility of
organizations, to both its members and to society. These studies seek to understand ways
that organizational ethics contribute to organizational successes. Ethical and moral
studies are a relatively new contribution to the ﬁeld of organizational analysis. (Beck,

1992, Bennis, 1994)

Acknowledging the existence of organizational cultures challenges the notion that
organizations consist of only narrow economic goals, centered around the production of
goods or services. The socialized view of organizations creates a complex view of how
organizations reach desired levels of efﬁciency and proﬁt. The cultural view deﬁnes
organizations as powerful social, political, and economic forces that need to assume their
“proper” place in society. Furthermore, studies suggest that organizational cultures,
including subcultures, morals, and ethics, have not been given enough attention by

organimtional theorists. These concepts are thought to be a signiﬁcant part of

28

understanding how organizations develop and change, and thus are very important factors

to consider in many organizational studies. (Bennis, 1994)

There is no such thing as a “good organization” in any absolute
sense. Always it is relative; and an organization that is good in one
context or under one criterion may be bad under another. (W. Ross
Ashby, 1970)

As organizational cultural values were becoming prominent featrn'es of
organizations, the view of the individual, again, was devalued. The ethical and moral
dimensions of organizations, in some studies, challenged the notion that organizations are
motivated only by purely economic motives. Some organizations were being judged
according to moral ethical values. Research suggested that organizational goals and
initiatives are, and should be judged by much larger constituencies, and thus
organizational responsibility has been broadened beyond economic motives. All this

thinking about the organizational values, supersedes individual values.

Though individual morals and personal ethics are considered in this cultural view,
studies suggest that individuals will/should conform their personal values to
organizational values, and adopt the ethics and morals of the organization. The literature
implies that if individuals cannot assimilate into the organization’s culture, then they are
more likely to move to another organization rather than try to change it. If an individual
tries to change the culture of an organization, such changes are identiﬁed as slow, tedious

and often unsuccessful. (Aubrey and Cohen, 1995)

Organizational analysis has expanded our understanding of organizations in new
and interesting ways, especially through various human relations views. The open

systems concept, socialimtion and cultural considerations sometimes contradict the

29

classical rational view, but more often become supplemental to the original view of
organizations. Whether a study examines morals, motives, justice or the ethics of caring,
organimtional hierarchy and formal structures are assumed present and desired. As
discussed above, an emphasis on open systems, social groups and organizational cultures
all seemto diminishthe sensethatindividuals are, orcanbe, animportant inﬂuence upon
organizations. Organizational analysis has changed signiﬁcantly in many ways, but

continues to suggest that individuals succumb to the power of the organization.

In contrast, the career perspective realizes that individuals bring knowledge, skills
and experience, that has been learned over a lifetime, to organizations. Individuals use
these abilities to develop their careers within organizations. They may be inﬂuenced by
the social, political or cultural elements of the organization, but individuals are told that
to enhance their careers they should make choices that eﬂ‘ectively capitalize on their
present set of skills and abilities in new situations. Interacting with others in well-
understood, historically eﬂ‘ective ways, and to cast their moral and ethical values upon
decisions are important career activities. The importance of individual actions based on
lifelong experiences and knowledge acquired in the past, is a part of career deve10pment.
Such actions are also a part of organizational development and should not be ignored or
discounted in the organimtional literature. Individual career-motivated activities
inﬂuence organizations, but the ways are uncertain. More studies that reveal how

individuals inﬂuence organimtions are needed.

One ﬁnal area of research about organizations, that has signiﬁcantly altered our

view of organizations, is the socio-technical view. Technological advancements have

 

30

thrust organizations into rapid, turbulent times. Technology has creates a state of “ﬂux”
in organizations and sometimes caused organizations to spiral out of control. Though
changing demographics and a global marketplace, have also created new challenges for
organizations, technology has placed many business enterprises in compromising and
threatened positions. Technological change also raises questions about the value of
individuals, especially in relation to acquired past knowledge that may not help with new
problems posed by new technology. An explanation of how and why organizations
change continues to baﬁle. As technology calls for “new” knowledge, individual abilities
to acquire this new knowledge (i.e., their ability to learn) is being considered Of even
greater interest for this study is when the concept of organizational learning is considered
in organizational research. (This will become more clear in chapter two.) But ﬁrst, a third
shift in organizational research, both major and current, - the socio-technical view --
considers the diminishing role of the individual in organizations.
Soda-Technical View

In addition to the human relations views altering ways we think and talk about .
organizations since the classical view was expressed, now the socio-technical view of
organizations has accelerated the rate of change in our thinking. Organizations struggle
to keep pace with rapid technological advancements and organizational research struggles
to identify the important factors of technological change. Technology has created an
imperative for change. Organizational research has documented many ways that

technology and the resulting need resulting change is problematic. The ability of an

31

organization to respond appropriately, effectively, and quickly, seizing a technological

advantage, is one of the most pervasive challenges for organizations.

Early in the 1970’s, the rate of technical progress was just beginning to escalate.
The importance of individuals to the organizations was immediately threatened with this
kind of progress. As this same time, the organizational ﬁeld of study was expanding by
to investigating the human dimensions of organizations. The open, organic view widened
the boundaries and set forth a wide-range of organizational inﬂuences and offered out for
study complex, systems of organizations, all ideas rendering individuals as only one of
many organizational inﬂuences. Technical progress accelerated change and the organic
view of organizations seemed better equipped, than the mechanistic view, at determining
how to keep pace with the rapidly changing technology. The organic view, alongside the
reath of technical changes, identiﬁed ways that technical progress, in many cases,
threatened to render certain jobs obsolete, particularly some jobs performed by
individuals. Thus, technical progress, from its early beginning, was seen as an
independent power to which individuals (and organizations) must respond. (Dalton and

Lawrence, 1970)

As social and behavioral considerations provided new insights into organizations,
Alfred Toﬂ'ler, a world renowned scholar and social critic, came forth with several radical
ideas for the 1970 era. His book was called, “Futme Shock.” He viewed organizations
ﬂour a systems perspective and made ominous predictions about how technology would
drastically change organizations and the lives of the individuals within them. Toﬂler

described an emerging, super-industrial, world ﬁlled with temporary organizations and a

 

32

world where people were overwhelmed by change. He examined “the death of
permanence.” He described how computers would force upon us a “knowledge and
information age.” Speciﬁcally, he described that technology would challenge and
eliminate the need for many jobs. Toﬂler’s solution to the threat of technology, was for
individuals to acquire new knowledge and become good learners. The need for everyone

to learn was now imperative, according to Toﬂler. (1970)

Within this stream of research questions are not strictly about human dimensions,
as in the human relations ‘view, but some studies ask what the impact of technology is
upon humans. Fear, doubt, and insecurities held by organizational members are
mCOgnized and studied as a part of organizational research. (Argyris, 1957; Blau, 1987;
Elfrey, 1982) Toﬁler described technology as a great engine with a mighty accelerator,
and he saw individuals (especially with technical knowledge), as the fuel to run the

engine. People needed to learn new ways and acquire new knowledge.

However in practice, studies revealed that people were clinging to the status quo
a11d were resistant to change. (Baron, 1990; Drucker, 1994; Handy, 1996) Psychological
Web described how people became ﬁlled with self-doubt in the face of change.
Uncertainties abounded among organizational members. Even organizationally,
teChnological change meant losing or relinquishing control to one part of the
e1lvironment. As more and more technological change was seen on the horizon,
individuals (and organizations) were threatened. It seemed that new ways of achieving

snecess were being identiﬁed. Along with the new ways, many careers, industries and

Ol‘ganizational types were becoming obsolete. (Merlyn and Parkinson, 1994)

 

33

These times are often referred to as the Information and Technology Age, which

has replaced the Industrial Age. For over 10,000 years, the rate of discovering knowledge

about ourselves and the universe has be spiraling upward. The future is predicted to be
just like the period after the invention of writing and books, when there was a signiﬁcant
jump in knowledge. So, too, since the invention of the computer, is another signiﬁcant
leap in knowledge forecast. “With its (computers) unprecedented power for analysis and
dissemination of extremely varied kinds of data in unbelievable quantities and at mind-
Staggering speeds, computers have become a major force behind the latest acceleration in
knowledge-acquisition. . . . Knowledge is change - and accelerating knowledge

acquisition - fueling the great engine of technology, means accelerating change.”
(TOfﬂer, 1970)

Toﬂler coined the phrase “ad-hoeracy.” He described the breakdown of
bllr'eaucracy and the arrival of a new organizational system that would produce dramatic
charlges, including ominous predictions for individuals in organizations. These predicted

charrges are those that Handy says are now a reality:

One of the most persistent myths about the ﬁrture envisions man as
a helpless cog in some vast organizational machine. In this nightmarish
projection, each man is ﬂow into a narrow, unchanging niche in a rabbit-
warren bureaucracy. The walls of the niche squeeze the individuality out
of him, smash his personality and compel him, in effect to conform or die.
since organizations appear to be growing larger and more powerful all the
time, the future, according to this view, threatens to turn us all into that
most contemptible of creatures, spineless an faceless, the organization
man. (T ofﬂer, 1970)

Twenty years after Toﬂ'ler’s Future Shock, organizations have experienced

dramatic change. Both implied and real threats to the security of organizational members

34

has resulted. Organizational theorists continue to consider how humans can be ‘ t” into
technologically-rim organizations. The ad-hoc groups, temporary teams, throw-away
organimtions that Toﬁler predicted in 1970, have become a reality. Research describes
how technology drains the authority and power of the people of organizations. Research
also conﬁrms that temporary, ad-hoc groups inspire, adapt and engage in creative
problem-solving. Virtual organizations, like the ones Handy described, (see quote at
beginning of chapter), are more and more prevalent; and peOple of organizations are

dispersed and detached. (Kilmann, 1996)

The socio-technical view suggests that technology may dismantle bureaucratic
Organizations and maybe all organizations, as we now think of them. The role of the
individual in virtual organizations is uncertain and considered more complex than ever.
Stlldies about knowledge possessed and shared by individuals is an expanding stream of
thought in this view of organizations. (See chapter two.) Already power relationships
haVe changed from vertical to horizontal, or becoming knowledge-based. (Nonaki and
Takeuchi, 1995) Organizational members are viewed as residents and creators of
1Knowledge, but so too are organizations seen as receptors of knowledge that is something
to be converted into organizational power and authority! Complex variables and web-like
1"P-Iationships uniquely created within organizations are based on a wide range of factors,

including individuals. Thus, technology has pushed organizational analysis to extend
itself even further to consider new environments and new horizons than ever considered

by the human relations view. (Drucker and Falmer, 1993)

 

35

Not only are the shapes of organizations changing, but individual behaviors called

for in organizations are dynamically different The 1970’s research view of technical
progress sought ways to tmderstand how to continue to control and design functional
diﬂemnﬂaﬁom specialization, structured tasks, and formal delegation activities in
organizations. (Dalton and Lawrence, 1970) By the 1990’s, individual entrepreneurial,
creative and competitive eﬁ‘orts are sought; but are still shaped arormd organimtional
needs. Ways to reduce rigid, bureaucratic organizational structures are desired, while
retaining control. Organizational analysts study and write about technological change
“Sing terms like, “frightening speed,” “rapid,” “unforeseen,” “unpredictable,” “chaos,”
and “crisis.” The bureaucratic model of organizations, still voraciously studied and
Sometimes emulated, is now considered “inadequate,” and a big part of “the problem”. ~
(Huey, 1993; ___, Chief Executive, 1995) Finally, individual efforts that produce
changes to the structures of organizations, and other bureaucratic features, seem inﬁnite

and are being considered. Leaders are especially burdened with facilitating change.

The bureaucratic and scientiﬁc view of organizations established stable,
cinitialized, decision-making processes. This view created formal gradations of power
and authority, and structured functional organizational designs. As technology has
Prompted change, ways of breaking down these rigid well-established structures have
l>ecorne paramount. Contemporary views still value formal bureaucratic organizational
W as stable, secure, and predictable environments, but there is recognition that
OI‘ganizations must restructure themselves into exploratory, creative, revolutionary and

dynamic environments. Removing the discord between what organizations are and what

36

they should become is a cm'rent challenge for leaders. Knowledgeable, ﬂexible,
adaptable leaders are highly desired. But the risks to leaders’ careers, ﬁ'om these types of
behaviors, have been recorded in the research. Before considering how closely leadership
concepts parallel organizational concepts, a few ﬁnal observations are made about the

socio-technical view of organizations and ways that individuals are gaining prominence.

As we near the end of this century, most “traditional” organizational structures
have been challenged. Organizing by function, formal communication structures
Operating according to hierarchy, and distinct job speciﬁcations still exist - but are often
Viewed as deterrents to change. Formalities and other rigidities are thought to decrease

an organization’s ability to change quickly. (Peters, 1987) These barriers to
organizational success are broken down, through concepts of “reengineering” and
“continuous quality improvement.” New ways of operating are needed. And the wisdom
0f past activities, based on past experiences, oﬁen seem outmoded, according to the
sOcio-technical view. The need to change because of new technology, creates some doubt
that what individuals have come to know and understand over the course of their lives, is
of less value than new knowledge to be learned and applied in the future Some theorists
b<=1ieve the ability of the organization to acquire new knowledge, must begin with

individuals. (Aubrey and Cohen, 1995; Nonaki and Takeuchi, 1995) .

The socio-technical view of organizations promoteshopen and informal lines of
communication, ﬂatter bureaucracies, cross-functional matrices, ﬂexible and adaptable
Work ﬂow processes, for example. Not only are the less-traditional, less bureaucratic and

110m mechanical organizational factors sought, but ﬂuid, dynamic, variable and unique

 

37

ways are preferred. As noted above, individuals, and especially leaders, are needed to
control these “hard-to-control” organizations, to predict what is nearly impossible to

predict and to manage what is diﬁ‘rcult to manage.

For three decades, organizational theorists have been suggesting that
organizational members need to embrace and encourage change. Individuals, not just
groups, can create change. Both research and practice conﬁrm that changing times create
unpredictable and uncontrollable situations, that people often resist. (Novelli & Taylor,

1 993) Entrepreneurial and creative activities are encouraged and experimental ways are
Supported. Trial and error activities are encouraged. Action learning is advocated. But

new types of individual (and group) activities are put into practice, the promised security
0f eXperimentation and testing, is often more rhetoric than reality. Individuals, and their

careers, are being put at risk. (Slade, 1994)

Handy suggests that the way we think and talk about organizations must change.
We now think very diﬂ‘erently about organizations than in the past Even the language of
Organizations has changed dramatically. Terms used to describe organizations used to
include: stable, predictable, and controllable; these have been replaced with
uansformational, radical, revolutionary and chaotic. As members of organizations pursue
their careers within organizations, they engage in dialogue, collaborate, partner, facilitate
Communication, inﬂuence others and are inﬂuenced by others, rather than directing,

controlling and authorizing organizational activities as in the past.

Technological advancements have prompted thinking that people in organizations

are both the problem and the solution. As organizational structures become more dynamic

 

38

and, thus, more uncontrollable, individuals are expected to inspire and create . . . and

control. But technology continues to alter the environment rapidly, often rendering new
ideas obsolete or ineﬁ‘ective long before they have had time to be fully implemented As
individual entrepreneurial efforts are carried out, they often fail. Organizations cannot
exist for long from failures, and thus the search for predictability and control of outcomes

continues.

Before considering'the aspect of incorporating career issues into organizational
research, the close relationship between the organizational studies and the leadership
Studies is important to note. In chapter four,‘career development issues are also oﬂ'ered in

contrast to both areas of research.

LEADERSHIP CONCEPTS ATTEND TO ORGANIZATIONAL VIEWS .
A close relationship exists between the evolution of organizational research and
changed views of leadership. Chapter four describes how leadership theories inform
career development concepts, in limited ways. This section highlights how
Organizational views correlate with contemporary views of effective leadership, thus are
IIllltually informing. As this chapter points out, individual efforts in organizations seem
to have diminished in importance, at the same time that other important (and human)
features are being added to the research, e.g., technology, group activities and
Organizational cultures. At the same time organizational aspects have been changing,
leadership challenges have also been escalating.
New and changing organizational issues have not been restricted to organizational

analysis. As organizational studies have widened in scope, ideas about leadership have

 

39

also become more complex. The classical view of leadership, parallels the classical view

of organizations. This view suggests that leaders direct, control, and generally, Operate in
a highly formal, autocratic manner. Weber’s classical view depersonalized organizational
Operations and sought to eliminate, or reduce as much as possible, the inﬂuence of
unreliable human judgments and emotions. Similarly, the now-outdated classical
leadership view advocated the need to expunge the emotions of employees (and leaders)
and to eliminate as much human interference in operations. Giving direct orders and
tightly controlling all situations was the leadership norm.

As the human relations view looked at the realities of human emotions, feelings,
attitudes and beliefs in the work place, leadership approaches ﬁrst became less autocratic
a11d more democratic. Further, effective leadership concepts, as early as the mid century
and continuing today, recognize the need for leaders to be empathetic and to positively
support subordinates. Also the need for humans to aﬁiliate into groups was being
understood and encouraged, leaders were participating and collaborating, not direcu'ng
and controlling.

One early human relations model, was tied to leadership concepts. McGregor’s
Theory Y model placed an emphasis on individualism and self-actualization. Also, the

Likert System IV model stressed organizational ﬂexibility and adaptation. Likert also
researched issues of morale and productivity, but was unable to ﬁnd a strong correlation
between the two. These ways of thinking about organizations inﬂuenced leadership
Views. These and other similar views maintain that there is essentially no conﬂict
between individual human needs and organizational needs, at least none that cannot be

resolved. The leader is to be a facilitator in this theoretical no-conﬂict environment.

40

Leaders are agents who create and sustain paths toward mutual satisfaction. (Bennis,
l 994) Thus, both leadership views, the classical and human relations, seem naive and
limited, much like organizational research.

Unlike organizational research, though, leadership studies have considered not
only the organization but also the individual. This research explains that strong,
conﬁdent, hard-driving managers have been replaced with empathetic listeners and
coaches. (Rost, 1991) Individual attributes of this later type were favored. And as
individuals carried out leadership responsibilities, individual career needs versus
Organizational needs were being considered. In his 1957, Personality and Organization,
Chris Argyris concluded that individual needs and organizational needs were basically
incompatible. According to his views, the individual develops along a continuum of time
and experience toward “self-actualization.” The organization creates task specialization,
a chain of command, unity of direction, spans of control and other repressive and

resuictive conditions for the individual. “The picture we get ﬁ'om Argyris is that of an
ol‘ganizational behemoth slowly but surely bringing down the individual’s need for
growth and actualization.” (Bennis, 1993)

Contemporary views of leadership still seek optimization between organizational
goals and individual goals, but in more collaborative ways than the dictatorial classical
View. Research suggests that simultaneous optimization is not usually feasible and that
there must always be accommodation and a relinquishing of at least some objectives on
both sides. (Elﬁ'ey, ' 1982) Contemporary organizational views acknowledge the need to
Strive for individual satisfaction and motivation, but never by sacriﬁcing organizational

eﬁ‘ectiveness. Leadership studies combine issues about becoming an organizational

 

41

change agent and a facilitator of others pursuing organizational goals. Issues about self-
control and meeting individual needs are included. (Rost, 1991) While the organizational
literature assumes that leaders create, implement and assess activities to meet the needs of
the organization, with regard to individual needs or preferences, leadership studies
consider aspects of both. But leadership studies still suggest that organizational
preferences and needs take precedence over individuals.

Now as questions are raised about the role of the individual, and about career
pursuits within organizations, a new way of informing organizational thinking is not
likely to result by an emphasis on leadership, since the two streams of thought parallel
each other. Leadership concepts do add individual considerations to the studies, but not to
the extent of career studies. The evolution of organizational research has also inﬂuenced
and changed our views about what constitutes effective leadership. Both forms of
research continue to be reality-centered, but continue to emphasize meeting
organizational needs while ignoring meeting individual career needs. As these behavioral
and social views expanded research, plus the imperative to change from technological
advancements, both areas of study face a serious dilemma:

Conventional wisdom began faltering when a number of changes

in our society began to affect the basic character of human organizations.

I am referring here to changes in scale, and complexity in modern

organizations, to the rate of technological change, the rise of trade

unionism, the growth of the human sciences, the separation of property

from power, the inﬂux of professionals into large-scale organizations, the

increase of the general educational level and aspirations of workers, and a

shift in the value systems of the world community toward

humanitarianism, science and democracy. . . . In short managers were

basing their predictions on incomplete and skewed data, a mechanistic and

depersonalized view of man, and late Victorian, Darwinian ideals of
Empire. The last three decades of research and practice in the behavioral

42

science has been one long casualty list of threatened assumptions and
myopic views on the human side of the enterprise. (Bennis, 1993)

Finally, the absence of strong leadership in many organizations today is regularly
noted in the literature. (Gardner, 1995) Given the decreased emphasis on individual
leadership considerations, this is not surprising. Leaders are still expected to produce
desired organizational results, but face many situations that limit or restrict them.
Becoming less dictatorial and more democratic has limited leaders’ abilities to control
outcomes. (Rost, 1991) Individual leadership efforts have been diluted by team structures
and new technological operations. (Bennis, 1995, Myer, 1996)

Thus, career development activities of leaders, carried out within organizations, is
yet another reality that warrants study ﬁ'om the organizational perspective. Career issues
may be a part of leaders activities, as they attempt to control or inﬂuence organizational
outcomes. What happens when organization needs threaten the development of a leader’s
career? If individual inﬂuences upon organizations have diminished, in what ways and to
what extent does an individual prevail? The next section begins to examine reasons why
career issues may have been ignored in organizational studies; and suggests potential
beneﬁts from incorporating career information into organizational research.

INTEGRATING CAREER IDEAS INTO ORGANIZATIONAL RESEARCH

This chapter highlights organizational research changes in the past and present.

Even though this ﬁeld has changed in several important ways, individual careers and their
development have generally not been a part of this area of study. Actually, individual
considerations have diminished or been ignored as important organizational factors.

Important factors being studied usually include organizational design, communication

43

systems, formal and informal procedures, culture, and technology. While organizational
studies have expanded extensively, researchers continue to call for improvements and
additions to this ﬁeld. The beneﬁts from integrating career issues into this area of
research are generally described below and discussed in greater detail in the next chapter.

The inﬂuence of career deve10pment activities upon organizations could begin
with the contemporary socio-technical view. According to this view, careers in the
future are likely to advance through possessing and acquiring new forms of technical
knowledge. Thus, knowledge is an important factor in organizations, today. (Drucker,
1991) In contrast, the discussion could begin with an historical age/stage view, that
identiﬁes how careers advance by accumulating and assimilating many lifelong
experiences. Diﬂ‘erent career stages produce different levels of individual eﬂ‘ectiveness
when carrying out tasks and responsibilities. These diﬂerent levels of ability, based on
career stages, can ultimately eﬁ‘ect the success of the organization. (Super, 1957, Super,
1984) First, there is a more basic question to consider. Why have organizational studies
seemingly ignored and sometimes negatively perceived issues about career development?
Individuals Inﬂuence Organizations

First, organizational research suggests that individual goals and organizational
goals should be mutual and simultaneously optimized The reality that this is always
possible seems unlikely. Organizational analysis suggests that individuals should make
trade-oﬂ‘s, compromise, adapt, adjust, and integrate their goals with those of the
organization. The organizational attitude toward career development, creates a sinking
feeling that the organization is, and should be, the controlling factor in one’s career

development decisions.

44

In contrast, career theorists caution against relinquishing control of our careers to
others, especially to organizations. No matter how well-intentioned an organization may
seem, e.g., having extensive employee development programs, individuals are advised
never to abdicate career planning and career decisions to anyone else. (Dalton, 1986,
Elfrey, 1984, Schein, 1985) Career analysis promotes self-assessing behaviors, the
recognition of self-perceived abilities and values self-directed behaviors. The
independent pursuit of careers, many times carried out within organizations, means
seizing opporttmities and making choices for the sake of a career. Self-motivated
behaviors are at the heart of career development concepts. Thus, one reason why career
issues are not regularly incorporated into organizational analysis may be that such career
development views, would diminish the power of the organization.

Another explanation may stem from the reality that career development within
btn'eaucratic organizations means rising through the ranks over time. Omitting career
considerations may be because careers span many years and many organizations. In other
words, attention to a career over time might create the image that a “contract” exists
between the employee and the organization. The implied contract would be based on the
individual providing expertise and competence and on carrying out orders. In exchange,
one’s career is seemed and developed through monetary rewards and other forms of
status provided by the organization. This idea of a contract creates a liability for the
organization, thus may explain the absence of career ideas from organizational studies.
(Pedler, 1994)

Finally, and in contrast to the career perspective, the human dimension of

organizations is often viewed as just another set of physical assets of the organization.

45

This “non-enlightened” view oﬁ‘ers a perception that organizations have the responsibility
of developing these human assets. Thus, employee training and other formal
development programs, are not planned around personal career desires, but rather around
ways of enhancing and improving the organization. Giving greater attention to career
issues could create a contradiction. All three of these explanations (stated above) suggest
' weak rationale for payinglittle attention to the role of the individual when studying
organizational development.
Career Issues Inform Organizational Change

Sometimes organizations provide programs that link formal training with career
interests; but the realities of favoritism and nepotism within bureaucracies often destroys
any allusions that formal training guarantees career advancement. Altemately,
individuals who allocate organizational resources for their own personal self-
development risk being accused of elitistism or disloyalty to the organization. (Zalnick,
Dalton, and Barnes, 1970) Thus, at least on the surface, both individuals and
organimtional descriptions of development activities may be linked to careers, and
individual activities, but will more often be politically characterized as ways of meeting
organizational needs.

Organizational-sponsored career planning has been reduced in recent years.
(Senge, 1994; Schein, 1995) Large organizations, in particular, sometimes have the
resources to provide extensive career development suppOrt. Programs that include self-
appraisals, and promote a linkage between individual and organizational interests have
not been totally absent from organizations, but also not prevalent. While some

organizations support career planning and attest to its importance, other organizations

46

take no formal action nor provide formal programs to help advance individual’s careers.
More often in organizations, individuals are expected to carry out their own career
planning. Individuals are not readily encouraged in their career pursuits. Most pmsuits
are to take place outside and after performing the work of the organization, which is
considered primary. The result, often recognized in career studies, is that pe0ple spend
less time thinking about their careers than about choosing a house or selecting an
automobile. People just trust their careers to luck and put off self-development, often to
their own peril. Few individuals, it seems, recognize that career planning is a lifelong
activity and a continuing personal responsibility. (Blﬁ'y, 1984)

Careers may evolve without design, and the encouragement from organizations
varies. Nonetheless, some career-motivated activities are carried out in'organizations. To
what extent and how, is unclear and this study attempts to reveal more about this
nebulous area. This chapter describes how organizational research has changed
dramatically and suggests that this research will, and should, continue to evolve. First,
when scientiﬁc views suggested that human emotions within organizations were
undesirable and should be expunged ﬁom organizations, shortly aﬁer studies of human
emotions began. Then when formalized organizational structures were advocated for all
organizations, the existence and power behind informal organimtional activities surfaced
as needing to be studied. And now, as technical progress and technological
advancements increasingly favor organizational systems over individual eﬂ'orts, attention
to the importance of individuals learning has been sparked. Career considerations are

related to studies about organizational learning.

47

Both contemporary research and practice promote the organizational need for
knowledge and information. This may diminish the importance of the individual further
I by devaluing individual knowledgelearned in the past, through career and other life
experiences, over organizational knowledge. Some research on knowledge within
organizations asks about how already-possessed, individually-held knowledge, which is
sometimes called embedded knowledge. Embedded knowledge within individuals is
thought to inﬂuence organizational planning and organizational activities. Embedded
knowledge is something that some individuals, and not others, can leverage across
diﬁ‘erent areas of the organization. Some past knowledge is applied successfully to
changing conditions and helps an organization meet new needs. Individuals, who possess
the ability to use already-acquired knowledge in a variety of circumstances, are thought
very likely to succeed in this information and technology age. (Drucker, 1995, Myers,
1996) In this way, more attention to individuals in organizations is beginning.

Career experiences that produce transferable capabilities to new organizational
challenges are important, but not well understood, nor easily identiﬁable. Research about
the eﬂ'ects of technology suggests a need for core capabilities, or know-how, that resides
with the pe0ple of the organization. “The organization can thus be characterized as a
montage of individual capabilities and informal networks and relationships, rather than a
series of predetermined roles and positions and formal hierarchical relationships. . . .
Thus, despite the inherent difﬁculties, many organizations try to make their employees
more versatile by putting them through diﬁ‘erent experiences and rotating them through
various assignments.” (Bahrami, 1996) Studies about ways in which already-possessed

knowledge, gained from past experiences, and applied to future problems, is becoming a

48

critical part of organizational research today. The integration of career issues with these
ideas about knowledge is possible and informative.

Career development is about utilizing one’s current abilities, seeking out new
challenges and gaining new experiences. The importance of learning from experience, is
not a new concept to the ﬁeld of career research; but is a new way of studying
organizations. Organizational research of the 1990s has exploded in the direction of
exploring ideas about learning and knowledge, acquired in the past and applied in the
futtn‘e. Individual knowledge and learning concepts are considered “critical” featmes of
contemporary organizations. Questions about knowledge acquired through past
experience and ways of learning developed over the course of one’s career, (and life), are
more and more often included in organizational studies. (Mabey and Iles, 1996)

Along with this trend, one drawback in studying the eﬂ‘ects of individual career-
motivated behaviors on organizations, is the emphasis on group eﬂ‘orts. As noted earlier,
organizations are trying to become more ﬂexible and adaptable. T cam-based decision
processes are being established, and then pools of shared competencies created The
eﬁ‘ects of individual behaviors on the organization, have become even more diﬁcult to
diﬂ‘erentiate in these team-based environments. Individual contributions to team
decisions are difﬁcult to assess. The value of career-motivated actions, based on self-
perceived abilities, and acquired through past experiences, may become even more
dispersed and diluted as the ﬁequency of team-based decision making processes
increases.

In addition, the existing capabilities of individual organizational members,

utilized at appropriate (future) times, could potentially become more valuable to increase

49

in highly dispersed, (virtual) organizations. Individuals are more separate ﬁom groups,
and are able to be connected through technology. Individual activities may become more
isolated Until then, group or team decisions, even in virtual organizations, make it
diﬁcult to isolate and study individual contributions and inﬂuences upon organizations.

The next chapter examines an emerging organizational research concept —
organizational learning. This research theme, sometimes tied closely to technological
change ideas, is creating a growing interest in the study of knowledge and learning in
organizations. Individual abilities and individual actions are considered in studies about
the role of knowledge in organizations. But the study of learning and knowledge within
organizations, and according to organizational research, continues to emphasize actions
that support organizational objectives, rather than career objectives. The next chapter
examines how the concept of organizational learning includes ideas about individuals,
unlike some other research subjects. All organizing framework about learning is
developed, plus a way of integrating career issues into organizational analysis is
established. This analytical ﬁ'amework is used to study an organization and its leaders, in
chapters three and four. The ﬁnal chapter of this analysis considers the beneﬁts of having
considered career-motivated behaviors alongside other organizational factors. The
beneﬁts include ﬁnding new ways of understanding organizational activities and

organizational successes, stemming from individual career pursuits.

Chapter 2
ORGANIZATIONS, INDIVIDUALS, AND LEARNING

Introduction

There is an increasing level of interest around the subject of learning, both in
organizations and by researchers. Like many other subjects related to organizational
development, studies about learning mainly focus on lmderstanding organizational
development, not individual development. Though organizational research does not
totally exclude individual development issues, such issues are treated in limited ways.
Learning informs organizational practice, by better lmderstanding how problem solving,
decision making and organizational designs relate to ideas about learning. Also, some .
studies about organizational looming consider individuals - how and what they learn. As
the subject of learning is applied to organizations, a shift has begun toward having more
emphasis on individuals as important features of organizational development.

Organizational research on the subject of learning continues to expand rapidly.
Many ways of studying learning and closely related ideas are considered in the
organizational context. Knowledge, acquired and applied in the organimtional setting,
represents one important stream of research on this subject. The transference and
integration of information and knowledge is another. Not only the ability of the
organization to acquire, create, transfer and integrate knowledge is studied; but research

on individual abilities that are transferred and create knowledge within organizations, i.e.,

50

51

to learn, is also included in some organizational research. Research on organizational
learning has many components, and in relation to this study, individuals are becoming an
important consideration to this subject area. Thus, the subject of organizational learning
has been selected as the subject for this study that is about organizations and individuals.
(Nonaki and Takeuchi, 1995)

Organizational learning represents an area of research that is both timely and one
that focuses not only on organizations, but individuals as well. Since this study takes up
the question of individual inﬂuences upon contemporary organizations, shaping ideas
around the subject of organizational learning is appropriate. Questions about how
individuals relate to the subject of organizational learning are examined? There is a focus
on the organimtion, and its development, plus the relationship of individuals and their
development within organizations. Typically, studies about organizational learning are
about organizational development, not individual development; but studies about
organizational learning often incorporate information about individual learning.
Organimtional learning is a subject that includes ideas about both organizational
development and individual development, and thus is the subject of this study.

Research on organizational learning centers around issues of development. And,
individual learning, in relation to organizational development, is considered among many
studies on the subject. A study about organizational learning may, in fact, study the
development of both organizations and individuals. This chapter reviews the scope of
current research on the subject of organizational learning — which mainly focuses on
organizational development. Sometimes ideas about individual development are a part of

this type of research, and such instances are of special interest. This review of research

52

on organizational learning, also points out how our thinking about organizations has
moved even ﬁn'ther ﬁ'om the historical classical view of organizations.

This chapter ﬁrst reviews the concept of organizational learning, generally
presented in organizational research; plus a working deﬁnition is provided Ways in
which this subject is currently studied are described. Once this review is completed, an
organizing framework is developed to guide two studies about organizational learning.
The ﬁ'amework incorporates many concepts related to the subject of organizational
learning, both for individuals and organizations.

Beginning with an heuristic framework, speciﬁc elements associated with
organizational development, establishes a discovery process about organizational learning
for the organization. Eventually (in chapter four), individual career elements are .
developed using the same framework. This framework is used to produce, ﬁrst, a case
study of a particular organization, (chapter three), then a career biography of one leader
(chapter four). The two studies, similarly constructed, allows the integration of two sets
of ideas produced through separate- analyses, to occur. Findings from the two studies,
plus additional ﬁndings when the two analyses are integrated, are presented in chapter
ﬁve. Generally, this study conﬁrms the importance of incorporating individual career
development issues into studies about organizational development.

WHAT IS ORGANIZATIONAL LEARNING AND HOW IS IT STUDIED?

Selecting the subject of organizational learning is a way of considering individual
inﬂuences upon organizational development, but other inﬂuences must also be
considered. Factors commonly included in analyses of organizational learning have been

selected To aid this selection of various organizational inﬂuences, two deﬁnitions are

53

ﬁrst discussed. In organizational research, deﬁnitions of organizational learning and
deﬁnitions a learning organization can be distinguished. A working deﬁnition of each is
provided below. Learning in an organizational context is about development and
research about learning involves the concept of knowledge. Thus, after deﬁning both
terms, three types of themes within organizational learning studies, are discussed.
Organizational learning studies may investigate: 1) ideas about knowledge in relation to
organizational development (its acquisition and transference); 2) problem solving in
relation to knowledge concepts; or, 3) organizational structures that encourage the use of
knowledge. These three analytical approaches are readily found within the research about
organizational learning. Essentially, studies about learning in organizational contexts are
about development — organizational development. Open systems views establish
analytical ﬁameworks that consider a great number of factors in relation to learning.
Thus, studies about organizational learning often intend to inform our thinking about how
organizations solve problems, create change and develop. After reviewing the following
deﬁnitions, more of these research ideas are discussed as a way of demonstrating how the
individual is considered within this subject area.
Organizational Learning: A Working Deﬁnition

The subject of learning within the organizational context, is usually referred to as
“organizational learning.” The term, “learning organization,” is relatively new to the
organimtional ﬁeld of study. Peter Senge is credited with coining these terms, but he
does not attempt to separate his ideas about learning as they relate to individuals versus
organizations. He sees individuals and organizations as integral to organizational

learning. The following deﬁnitions establish a distinction between organizational issues

54

and individual issues. This distinction is helpful for constructing this study. These two
deﬁnitions are offered as an initial way of thinking about individual learning in relation to
organizational development:

A teaming organization can be described from a systems, i.e., holistic,
perspective. An organization is a discrete entity that establishes a way of organizing
activities and outcomes, in order to develop and change, organizationally. A learning
organimtion does not simply change for the sake of change, nor does it grow just to
become bigger. A learning organization engages in progressive and developmental
change.

Organizational teaming can be associated with speciﬁc organizational activities
and outcomes that produce change and are most often directed, initiated and carried out
by individual organizational members.

These two deﬁnitions helps create a distinction between organizational learning,
individual learning, and organizational development. They devise a particular way of
studying learning in an organimtional setting that pays attention to individuals as one
factor to be considered in relation to organizational development. An analysis of various
organizational activities and outcomes, and associated factors, represents an analysis
about a learning organization. Individually-initiated activities and outcomes that
inﬂuence organizational development are also a part of organizational learning. This
distinction is central to this study about organizational learning and attempts to isolate
certain individual developmental factors and draw some relation of these to

organizational development.

 

55

Initial Learning Concepts Attached to Organizations

Before three different analytical approaches to studying learning are discussed, a
general review about the evolution of this subject in the organizational research ﬁeld
serves is helpful. Peter Senge, in his book, The Fl'ﬁh Discipline, considered individual
and organizational inﬂuences, together, in relation to organizational learning. Given the
general absence (neglect) of studying individuals in organizational research, this I
inclusion represented a new trend. (See chapter one.) Activities and outcomes carried out
by individuals versus organizational activities and outcomes have both become forms of
learning to be studied. In this way the role of the individual in organizations has been
elevated in this type of study. Featuring individuals, and their learning, means that
individuals’ abilities to inﬂuence organizations is being considered. Studies about
learning in organizations is a relatively recent trend, thus many conceptualimtions are
still being carved out ﬁ'om the masses of available data

Many ways of studying organizational learning prevail at the present time. This
subject has inspired new approaches and new ways of thinking about and studying
organizational development. Though, the studies have no empirical foundation, some
researchers believe that studies about learning and knowledge may bring about a new
theory of organizations. The term, Learning Organimtion, was popularized by Peter
Senge in his 1990 book entitled, “The Fifth Discipline.” Since then, the concept of
learning organizations is ﬁequently considered in organizational research. As the subject
is exploding, Senge’s concepts are widely cited, ideas that apply not only basic
management principles, but also adult learning concepts. Organizational researchers use

many iterations of Senge’s ﬁve disciplines to inform their studies. (Chawla and Renesch,

 

56

1995) Therefore, a brief description of Senge’s concepts are presented to conclude this
general overview of the subject of organizational learning. Once the general learning
concepts are reviewed, (according to Senge’s ﬁ'amework), three prominent branches of
study are discussed. Together, this information lays the groundwork for creating an
organizing ﬁ-amework around the subject of organizational learning to be used in this
study.
Senge’s Disciplines of Learning

Peter Senge, in his 1990 book, “The Fifth Discipline,” describes successful
learning organizations, as composed of two types of learning: adaptive learning and
generative learning. He suggests that organizations not only need to cope and respond to
the changing environment (adaptive learning), but must seek ways to expand capabilities
into the futme, (generative learning). In 1990, Senge’s ﬁve disciplines became important
principles thought essential for organizations to successfully create a total learning
environment. They are:

SENGE’ FIVE LEARNING DISCIPLINES

 

 

 

 

 

 

Table 2.1

First Building Shared Vision The practice of unearthing shared “pictures of
the future” that foster genuine commitment

Second Personal Mastery The skill of continually clarifying and
deepening our personal vision

Third Mental Models The ability to unearth our internal pictures of
the world, to scrutinize them, and to make them
open to the inﬂuence of others

Fourth Team Learning The capacity to “think together” which is gained
by mastering the practice of dialogue and
discussion

Fifth Systems Thinking The discipline that integrates others, fusing
them into a coherent body of theory and
practice.

 

 

 

Taken ﬁom The Fifth Discipline by Peter Senge

 

57

Several helpful ideas about learning in organizations emerge ﬁ'om this framework.
First, Senge’s principles are reminders of the dichotomy between thinking about
organizations where individual learning takes place versus ways in which organizations
develop, i.e., learn. Senge helps examine autonomy and authority of individuals in
organizations, and recognizes that individual organizational members are learners, (#2 -
Personal Mastery and #3 - Mental Models). But the organization, operating as a whole
unit, is also considered a single learning entity. (#1 - Shared Visions, #4 - Team
Learning). Thus Sengeis ﬁ'amework considers both individual and organimtional (group)
learning. He combines both types of learning to create his ﬁfth discipline, systems

One additional observation about Senge’s principles, is to consider how his model
shiﬁs from the historical view of learning. All too often, the concept of learning within
organizational settings was limited to ideas about formal training, or formal development
activities. Senge’s ﬁve disciplines, provides a construct to analyze learning that is not
formally planned and canied out. Senge studies adaptive learning and generative
learning. Adapn've learning, according to Senge, is responding to changing environments
and generative learning is expanding capabilities. Both can happening informally. Both
happen in day-to-day experiences, develop over time, and in unplanned ways. Senge
believes these non formal ways of learning are an important part of organizational
development and thus critical to the success of organizations. Senge’s ﬁ'amework
inspired others to begin thinking about and studying learning that occurs not only in
formal training programs and suggests that learning through non formal means is

important to organizational development. (Senge, 1990)

 

58

Before Senge’s work, several predecessors also studied learning in organizations.
Argyis (Harvard) & Schon (MIT) wrote extensively on single loop learning, and double
loop learning. Single loop learning refers to a continuous cycle of actions and feedback
and is much like Senge’s view of adaptive learning, while double loop learning is more
complex and involves conceptualizing and analyzing. Today, many terms are being
created to recognize that learning exists in organizations in a great variety of forms.
Terms like strategic learning and action learning are becoming common. In this study, the
term organizational learning is used to refer to all variations of the same idea.

In contrast to organizational learning, the idea of a learning organization, a term
created by Senge in 1990, is more abstract. In 1994, Senge wrote, “There is no such
thing as a learning organization.” (Senge, Creating Quality Communities, 1994) He
explains that the phrase “a learning organization” is a double-edged sword and he has
grown cautious about striving to become a learning organization He believes the
concept of a learning organization is both empowering and tranquilizing:

Learning organizations are spaces for generative conversations and
concerted action. . . . Learning organizations embody new capabilities.

But a learning organization must be grounded in a culture based on

transcendent human values of love, wonder, humility and compassion; a

set of practices for generative conversation and coordinated action; and a
capacity to see and work with the ﬂow of life as a system. (Senge, 1994,

p.1 1)

Senge explains that organizational learning is about a system of learning, and is a
better way of understanding problem solving and decision making. Being a learning
organization suggests that an organizational condition exists. (1994) Understanding

learning from a systems perspective increases our understanding of dynamic

59

developmental organizational changes that are produced and sustained As organizations
recognize the need to engage in continuous change, (see chapter 1), the idea of
organizational learning is more appropriate to study than learning organizations. Studies
that seek to understand continuous and future changes based from learning, are more
informing, according to Senge. Studies about organizational learning are studies about
systems of change and systems of learning. (Senge, 1990; Senge, 1994)
Borrowing from Adult Learning Theory

Before exploring the three prominent ways of studying organizational
learning, certain similarities to general adult learning concepts should be identiﬁed
Consistent with Senge and others, the ﬁeld of adult learning also identiﬁes and values
learning that is not formal. In fact, adult learning theories are commonly built around
three main types of learning: formal, informal and non formal. (Merriam and
Cimningham, 1989). Adult learning research can, and sometimes does, inform
organizational research For example, adult learning principles are applied to
organimtions in these types of ways. Successful formal adult learning programs, in
organizations and elsewhere, need to account for and accommodate individual adult
peculiarities. Informal learning is considered a lifelong process by which adults inform
themselves about life and its possibilities. Verner calls this accidental or natural learning
and views its importance in organizational settings. (1964) Non formal learning is shaped
around organized adult education, and is something that happens outside the established
formal education system - outside the purview of schools and universities. Thus, learning
concepts hour the ﬁeld of adult education, applied to organizational studies, often

investigate all three types of learning. Through formal development, as well as day-to-day

60

activities, adult learners should be recognized for their uniqueness, for possessing
diﬁ‘erent competencies, and with individual needs and unique preferences. As
organizational learning is studied, an interest in the individualistic nature of learning, is

consistent with adult learning concepts.

This growing interest in studying learning beyond the classrooms, means that
studies are about unorganized, episodic, exponentially-based or unique experiences.
(Bennis, 1993) Interest in informal and non formal learning includes attention to lifelong
learning, and learning across the life span, which also is appearing in some organizational
studies. (Quinn, 1992; Reber, 1993) Educational biographies are a way of considering
not only formal, but other forms of learning. Biographies of leaders have been common,
but studying learning biographically is less common. In this regard, it is important to
note that career research has for a long time recognized that career development is based
on a variety of life experiences, and is not just a result of formal educational experiences.
Studies about developing careers pay attention not only to formal educational preparation,
but also to other learning experiences garnered from families, communities, role models,
mentors, health factors, and other age or stage-related life experiences. Such informal
learning experiences are important to one’s career development Now studies of this type
(about learning) are sometimes considered critical to understanding and explaining
organizational development (Rodwin and Schon, 1994
The Economic View of Learning

Before turning to three ways of thinking about organizational learning, a word of

caution is oﬂ‘ered about research that places a great deal of emphasis on non formal and

 

61

individual factors. There exists the concern that “useful” results will not be forthcoming
from studies about organizational learning. These concerns are economically derived.
Individual development in organizations, especially through formal training programs, is
based on an economic model. Usually, formal training and employee development
programs are designed to beneﬁt many employees, not just one. Also, training programs
are designed to “teach” new skills and expand understanding about areas important to the
organization. For example, training designed around decision making and problem
solving abilities often featm'e common systems and procedures for groups, rather than
individuals. Thus, for now, organizational learning is thought of as a way of increasing
an awareness and understanding about organizations, than as a way of designing a
speciﬁc design or educational/training model eventually to be applied to organizations.
This economic concern about studying organizational learning in relation to
organizational development limits interest in the subject, for some. However, a growing
interest in the subject by researchers, and some practitioners, is still happening. How
long this interest will remain among major research enterprises, remains to be seen.
(Bowles and Gintis, 1986, Fiol, 1994)

This study is about individual inﬂuences on organizations and the study will be
carried out as a study about organizational learning, both organizationally and
individually. Among the many subjects covered in organizational research,
organimtional learning is receiving attention for many reasons already given. For this
study, the interest in learning has led to an increasing interest in individual inﬂuences
upon organizational development. Organizational learning includes ideas about non

formal and informal learning, which is admittedly more diﬂicult to identify, predict,

62

control, and thus study, than formal learning experiences. Learning that is accidental,
episodic, or natural is studied as a way of understanding individual inﬂuences. The
working deﬁnition of organizational learning, provided above, suggests that an
investigation of individual activities will produce information about organizational
activities and outcomes. Also, many organizational studies are taking a systems view of
learning, that considers both organizational and individual aspects related to
organimtional development. Sometimes basic adult learning concepts are included and
emphasize the importance of individualism and uniqueness as another way of
understanding organizational learning. Before devising a ﬁ'amework for studying
organimtional learning that can incorporate individual inﬂuences, a more detailed review
follows about studies on the subject organizational learning, that consider the concept of
knowledge.
ORGANIZATIONAL LEARNING TOPICS

Studies in the 90’s about organizational learning, often capture ideas about
problem solving and decision making, including environmental and social considerations.
Many times, ideas are constructed around the concept of knowledge — its acquisition and
transference. This approach pays close attention to individual inﬂuences upon the
organization and thus is helpful to constructing this analysis.
Studies about Knowledge

Applying the concept of learning to organizations has stimulated research on the
subject matter of knowledge as it relates to the organizational setting. “Knowledge has
also beglm to gain a new wave of attention in recent years. Not only socio-economic

theorists such as Peter Drucker and Alvin Toﬁler call for our attention to the importance

63

of knowledge as management resource and power, but also an increasing number of
scholars in the ﬁelds of industrial organization, technology management, management
strategy and organization theory have begun to theorize about management knowledge.”
(Nonaka and Takeuchi, 1995) How is knowledge constructed in an organization? How
is knowledge that resides in individual organizational members transferred to others and
informing to organizations? These and other questions are sparking a new analytical
dimension in the organizational literature. A dimension that is bringing new insights I
about individual inﬂuences in organizations. _

As Tofﬂer advised, an interest in knowledge within the organization setting has
become central to some organizational studies. Along with this addition to the ﬁeld has
come an increased interest in the individual. As knowledge becomes a unit of analysis,
cognitive and behavioral aspects of both organizations and individuals are examined.
Personal, embedded ways of knowing are considered alongside dynamic, interactive
processes and systems. Though attention continues to be given to the organization and its
structure, processes, boundaries and culture (on how these relate to knowledge), the
individual is thought of as an important factor integral to information about knowledge
creation and transference in organizations. (N onaka and Takeuchi, 1995)

There is no epistemological foundation for studies about organizational learning
and knowledge. Yet understanding learning in the organizational setting is a way of
becoming better informed about organizational change and development. Studies about
knowledge seem to focus on two forms, sometimes called tacit and explicit. Other

researchers consider action learning and implied learning, while others examine closed

and open systems of learning. (cites, multiple) As noted above, Senge suggested two

54

forms of learning—adaptive and generative. Organizationally, he saw adaptive as a
coping form of learning and generative as a creative form. Similarly, Nonaka and
Takeuchi study what they call knowledge creation. They study explicit knowledge as
something that exists in organizations in the form of a template that can be communicated
to others and can inform future actions. But also, they examine the importance of tacit
knowledge that is more intuitive, personal and subjective, considered equally important to
organizational development.

Furthermore, Nonaka and Takeuchi, believe that tacit knowledge can be converted
to explicit knowledge:

For tacit knowledge to be communicated and shared within the
organization, it has to be converted into words and numbers that anyone

can lmderstand. It is precisely dming the time this conversion takes place

—ﬁ'om tacit to explicit, . . ., back again into tacit — that organizational

knowledge is created. . . . Although Western managers have been more

accustomed to dealing with explicit knowledge, the recognition of tacit

knowledge and its importance has a number of crucially relevant

implications. First it gives rise to a whole different view of the

organization - not as a machine for processing information but as a living

organism. . . . Highly subjective insights, intuitions, and hunches are an

integral part of knowledge. Knowledge also embraces ideals, values, and

emotions, as well as images and symbols. These soﬁ and qualitative

elements are crucial to understanding the Japanese view of knowledge and

should be applied to the Western world. (1995)

This way of thinking about knowledge places the individual in the center of
importance to the organization. “We mentioned that this interaction between tacit and
explicit knowledge is performed by an individual, not by the organization, itself. We
repeatedly emphasize that the organization cannot create knowledge devoid of
individuals. . . . In the Western methodology, the interaction between tacit knowledge and

explicit knowledge tends to take place mainly at the individual level, with a few

65

individuals playing a critical role. ” (N onaka and Takeuchi 1995) Thus, this way of
understanding more about organizations and learning, identiﬁes and elevates the
inﬂuence of individuals on organizations.

It is also important to note that such studies about knowledge remain multi-
dimensional. Issues of socialization, culture, morality and technology continue to be
important factors in this type of research. A diﬂ'erence in this research about knowledge
and learning, important to this study, is the emphasis on the importance of the individual.
Senge observes that the 1990’s may rally an interest in developing individual leaders who
can develop organizations. He suggests, “ (O)rganizational development and (a new sort
of) management development may be reconnected. . . . I believe that this new sort of
management development will focus on the particular roles, skills, and tools for leaders in
learning organizations.” (Senge, 1994)

Unlike past trends, (See chapter 1), organizational research about learning (and
knowledge) is heightening the prominence of individuals in the study of organizations.
Isolating the individual as a key factor, is especially prominent in research about problem
solving and decision making activities. Details presented below, on this trend, is another
example of how organimtional research now elevates the individual as an important
organimtional development factor.

Studies about Problem Solving

While Nonaka and Takeuchi study how individuals learn to transform tacit
knowledge into explicit knowledge, views of the implicit nature of knowledge as ways of
problem solving is equally engaging. The work of Nisbett (1991) over a decade ago

made a distinction between explicit knowledge - something that we thought we used to

66

make decisions and control choices - and implicit knowledge 4 that we actually use.
Langer, (1989), at Harvard, observed situations where people appeared to be acting
according to explicit knowledge (consciously developed knowledge), but were really
drawing from implicit knowledge systems about which they had little awareness. Reber
offers an interesting view about studying knowledge. He states that sometimes people
can be observed making choices and solving problems of interesting complexity, but
rational logical elements are missing. (Reber, 1993) The conclusions ﬁom such studies,
is that unconscious, nonrational, and unverbalized forms of knowledge aﬂ‘ect
organizations.

In the 1950’s, less rational or unexplained behaviors were thought .to result ﬁnm
operant conditioning. Contemporary research instead views such behaviors as the
cognitive unconscious, originating from experience and becoming habitual over time.
“Aspects of . . . implicit learning and implicit memory have become the focus of truly
intense empirical and theoretical interest.” (Reber, 1993) Studies about organizational
' decisions and choices now include an interest in how individuals develop the capacity to
control complex environments. (Berry and Broadbent, 1987) Also resulting ﬁ'om this
new wave of research, is the possibility that implicit and tacit knowledge may not be
isolated peculiarities of individuals, but something generalimble. (Reber, 1993)

The heuristic value of this area of research comes from the discovery of
information about flmction, adaptation and individual diﬂ‘erences. Learning in the
absence of eﬂ‘orts to [learn is now a part of organizational research Organizational
investigations focus on problem solving and decision making, and ideas about individual

learning are signiﬁcant. Polanyi (1966) deﬁned tacit knowledge as “knowing more than

67

we can tell.” He viewed this knowledge as largely inarticulable and primarily seen
through individual actions rather than explanations of what the individual knows. Reber
(1989) argues that implicit learning is an lmconscious process. Schon (1983) speaks of
“knowing-in-action,” and Wagner (1987) developed a model of tacit knowledge deﬁning
it as “practical know-how.”

Stemberg and Wagner’s conclusions (1985) from three separate experiments on
the role of tacit knowledge in practical pmsuits, captures the essence of current thinking
about knowledge in relation to organizational development: “A comprehensive theory of
intellectual competence in real-world pursuits will, in our judgment, encompass general
aptitudes, knowledge that is directly taught in school settings, and tacit knowledge, that is
usually unverbalized and not explicitly taught, in managing oneself, others and one’s
career.”

Studying tacit knowledge within the world of work, suggests that individuals
make decisions and take actions to solve problems due in part to something they cannot
fully explain in terms of why and how they know a particular action is correct. Wagner’s
model of tacit knowledge considers practical know-how acquired through experiences,
without direct instruction, and from observing others. Isenberg observed that managers
frequently came up with plans about what to do without complete information nor a
thorough analysis. He believed, like Wagner, that managers use their experience, rather
thananalyzing situationsinamorepedestrianmanner,tointcrpret, inferandbegin
planning actions. He called this “conditional reasoning” and concluded that more
experienced managers will act and plan actions based on experience, rather than

verbalize, obtain more information, or analyn situations fully. Thus, studies like these

68

often conclude that to understand more about knowledge in relation to organizational
development, that the amount and type of past experience is important. Also how well
one learns ﬁom past experiences and applies this knowledge, is what really matters.
(Wagner, 1 987)

Studies about learning in relation to problem solving are, therefore, very
encom'aging. The role of the individual engaged in problem solving activities, ﬁom a
learning perspective, suggests that individuals produce change and aﬂ‘ect organizational
activities in signiﬁcant ways, and that their work is often based on past experiences.

Decision making and problem solving studies also examine current and potential
competencies of individuals. Such investigations study the transference or adaptation of
competencies and knowledge. (F iol, 1994, Wagner, 1991, Slade, 1994) Wagner
describes how one way of understanding more about ability, or competency, is to study
how individuals break down apparently complex systems into relatively manageable
subsystems — as a way of making decisions to solve problems. Wagner’s discussion
includes both organizational and individual perspectives, consistent with other studies
about organizational learning. He proposes that not all systems can be'broken down into
independent and interacting categories, but that many can and should be. However, he
points out that just studying the categories does not tell anything about how the categories
come together to solve problems - which he calls a “control system”. Useful studies, by
humanistic standards, according to Wagner, would produce a description of problem-
solving strategies that could be used to solve a particular class of problems. He does note

that attempting to account for strategies as scientiﬁc evidence is problematic. Thus, if the

69

goal from describing performance (or outcomes) is to be able to describe universal
problem-solving strategies, the need for theory is even more imperative.

To this end, Wagner suggests that the best way to study organizations is to study
forms of learning. “When people learn to execute problem-solving methods associated
with a particular goal, a general way of achieving that goal may not have much
generalizability.” (Wagner, 1991) But, Wagner does believe that a problem solving
method associated with a particular goal, is transferable by that individual or individual
entity, to another goal. When concrete and useful conclusions are sought,
(generalizeable), studying the activities associated with goal achievement is preferred.
“Instead of trying to ﬁnd out what behaviors are common over a large set of complex
problem-solving behaviors, why not examine how people learn to adjust their own
behavior to a complex environment. . . . Studies about how we acquire complex
problem-solving skills may be more generalizable than descriptions of the limited number
of problem-solving situations that we can study.” (Wagner, 1991)

Therefore, ideas about learning in relation to complex problem solving is a part of
studying organizational learning. Rather than studying performance, results or goal
achievement, as in the past, studying learning is more worthwhile. (V oss and Wagner,
1991). As organizational research seeks out new ways of isolating information about
organizational change, development, problem solving and goal achievement, Wagner’s
opinions about the best ways to study organizations is thoughtful:

Essentially, we cannot have a science of complex problem solving,
simply because all complex problems have local solutions. I think that

this is the case. However, I do think that we can develop a scientiﬁc

understanding of how pe0ple learn to deal with complexity. The reason is
that the principles of learning may be general, whereas the result of

70

learning is speciﬁc to the situation in which the learning takes place.

Expert-novice contrasts are a start, but only a start. We need to look at the

process of moving ﬁom novice to expert. This will require some long,

slow studies. (Wagner, p. 395)

Researchers are continuing to call for new ways of studying organizations.
Organizational learning concepts have introduced dramatically different ideas about
organizations, that moves the thinking further away ﬁom the classical, rational view.
Organizational learning views, according to the concept of tacit and explicit knowledge,
suggest that individuals may behave in ways they cannot always explain, but not
necessarily in ways detrimental to the organization or having no basis. Unexplainable
knowledge that produces action over reﬂection, based on experience and observation,
also is considered dynamic. Understanding this next conceptualization of organizational
learning calls for lmderstanding more about organizational designs that support learning.
Studies about Organizational Design

As ideas about knowledge take shape in the organizational research, issues related
to organizational design and organizational structures are included. Organimtional shape
and structure are considered critical to enhancing learning activities, especially those that
require innovation and creativity. Research about organizational design in relation to
organizational learning (and knowledge), is the ﬁnal example of several prominent views
within organizational learning research. These views inform the ﬁ-amework developed
for conducting this study on organizational learning, and is presented in the last section of
this chapter. Organizational design is especially signiﬁcant to this study for reasons noted

below.

71

As new knowledge-intensive relationships arise in organizations, and are studied,
organizational structural considerations often arise. (Badaracco, 1991, Kanter, 1994,
Kilmann, 1996) The design of organizations is radically changing and this seems to be in
response to the “crisis” caused by the Knowledge and Information Age. This crisis is a
failure to be able to manage and control a critical organizational resource - knowledge.
Organizational design issues confront problems like the effective exchange of
information, speed and eﬁciency of such transference, and increasing capacity — all
economic-based considerations. Knowledge and organizational learning, thus, are an
economic resource that organizations are attempting to better utilize to maximum
capacity, according to this stream of research.

Some studies assume a ﬁxed level of knowledge and focus attention on
methodologies for sharing, transferring, and linking this ﬁxed resource. Researchers,
including Nanaki and Takeuchi, consider ways to increase capacity of knowledge. Some
studies consider a combination of both. Scenarios, though, about knowledge and learning
in the organizational setting recognize and consider ideas about the individual. Here the
individual is a metaphorical receptacle of this resource and do possess control over it.
Not surprisingly, studies about organizational design consider how organizations can
extract this control ﬁ'om individuals, and integrate it into organizational structln'cs and
processes. But to do this, analysis starts with the individual.

“The opportunity set conﬁonting an individual or an organization is a flmction of
the individual’s knowledge.” (Jensen and Meckling, 1995). Given the realimtion that

knowledge is an important organizational resource, and that a primary source of

72

knowledge resides within individuals, then the goal is to discover ways to both expand
this resource and use of it through eﬂ‘ective organizational design.
The limited capacity of the human mind and the costs of producing

and transferring knowledge mean that knowledge relevant to all decisions

can never be located in a single individual or body of experts. Thus, if

knowledge valuable to a particular decision is to be used in making that

decision, there must be a system for assigning decision rights to

individuals who have the knowledge and abilities or who can acquire or

produce them at low cost. In addition, self-interest on the part of the

individual decision-makers means that a control system is required to

motivate individuals to use their speciﬁc knowledge and decision rights

pr0perly.” (Jensen and Meckling, 1995)

The design of organizational systems rests, in part, on the formal assignment of
decision rights to individuals with appropriate knowledge and abilities. Thus, radically
new types of organizations are not designed around controlling inputs and outputs. The
virtual organization that Charles Handy referred to, is one such design. Strategic
alliances and partnerships, plus other collective arrangements are appearing among
formerly competitive entities. Those most successful, ﬁnd that collaboration and
cooperation increase joint eﬁciencies. Research suggests that such collaborative groups
are sustained through long term, rather than short term views. Finally, these “new,”
“experimen ,” organizational designs will force a cultm'al change in many executives.
These ways of examining the control and use of knowledge by individuals and as part of
an organizational structure is research that favors extending c00perative relationships.
This is achieved through ﬂuid, dynamic organizational designs and is a design that is too
powerful to ignore. (Jarello and Stevenson, 1991, Kanter, 1994)

Open, dynamic designs. Problems that organizations face today, are complex, ill-

deﬁned, system-wide and require long term solutions. Contingency or collateral

73

organizations, i.e., partnerships and alliances, are often considered more effective
problem solving organizations than traditional organizational models. Creating a space
that is conducive to creative problem solving is yet another challenge that knowledge and
learning studies consider. Organizations that are dynamic, ﬂexible, and can reinvent
themselves support a widearray of expertise and information, ﬁrst and foremost held by
individuals. Studies are beginning to advocate non-bmeaucratic, informal organizations
as the best opportunity for achieving co-existence between a ﬁrm’s direction and
maximum individual autonomy. (Peters and Waterman, 1982)

In the past task forces, committees, and other project teams have been thought
conducive to solving well-deﬁned problems. But they are not as eﬂ‘ective with problems
arising ﬁom larger, more complex forces, such as pursuing international markets,
developing new technologies and motivating a highly diverse workforce. Strategic
planning, management information systems, and organizational development programs,
are complex, ill-deﬁned problems. The ﬂuid, ﬂexible organizational design utilizing
these ad-hoc, contingency groups, helps utilize the knowledge of individuals and
promotes the exchange of this critical resource to solving major, complex organizational
problems.

As this new organizational design is tested, structln'ed, (or really unstructlued), as
ways of promoting knowledge transference, goals are to move away from the valuing of
the individual (and individual knowledge) and toward the importance of knowledge to the
organization. The goal in such design analysis is to ultimately shape organizations as the
primary receptacle of this collective resource — knowledge. For now at least, the

individual power and individual control over this resource is undeniable and challenging

74

to study. In a recent essay about knowledge in relation to the organizational structure, the
trade-oﬁ‘ between information and agency helps explain the continuing need for
organizational issues to take precedence over individual issues, even though the
inﬂuencing role of the individual in the organization is clearly enhanced:

The assignment and enforcement of decision rights in
organizations are a matter for organizational policy and practice, not
voluntary exchange among agents. Decision rights are partitioned out to
individuals and organizational units by rules established by top level
management. The limitations of his or her own mental communication
abilities makes it impossible for a CEO to gather the requisite information
to make every detailed decision personally. . . . In delegating authority to
maximum survival (my note: whose sm'vival?), the CEO wants to partition
the decision rights out among agents in the organization so as to maximize
aggregate value. . . . Because they are ultimately self-interested, the agent
to whom the CEO delegates authority have objective flmctions that
diverge from his or her own. The costs resulting from such conﬂicts of
interest in cooperative behavior are common called “agency costs.”
Because agency costs inevitably result from the delegation of decision
rights, the CEO must devise a control system (a set of rules) that fosters
desirable behavior. (Jensen and Meckling, 1995)

Even though a “control system,” or organizational design based on knowledge, is
radically diﬂ‘erent than the bureaucratic, hierarchical design, the design is intended to
serve the same purpose as the historical forms. Individuals, as a knowledge resource, are
a signiﬁcant factor, to be controlled and predicted, through contemporary organizational
design. The goal of organizational design strategies, in contemporary times, to structure
and control knowledge, suggests an attempt to manage the unmanageable. Knowledge
workers in cyberspace, to be controlled and organized, is considered a major challenge.
Studies of design continue to investigate, much like the industrial age, machine-to-
machine, and machine-to-human issues. As formal authority, planned processes and

predicted outcomes remain central to studies about contemporary organizational design,

75

individuals - their knowledge and learning capacity - are recognized as important. Even
though the goal is to ﬁnd a way of controlling and extracting this resource ﬁom the
individual to the organization. (O’Hara-Devereaux and Johansen, 1994)

One ﬁnal observation is helpful about shifting research perceptions, as the subject
of learning is explored further. The name of organizational problems keeps changing.
Organimtions that are designed to perform day-to-day activities and produce well-deﬁned
products or services are not considered capable of solving complex, dynamic problems.
The on-going cycle of sensing the problem, deﬁning it, deriving solutions, and
implementing solutions is the foundation of collateral collaborative organizations.
Though the concept is relatively new to designers, (bearing only a slight resemblance to
matrice organizations and quality of worklife designs), the risk of having increasingly-
dispersed assets and being more open to opportunism are being outweighed by the
beneﬁts of a committment to continual learning for the sake of technological and
organizational innovation. (Killman, 1996 and Devereaux and Johansen, 1994)

As organizations change in this knowledge and information age, the inﬂuence of
the individual upon organizational outcomes has grown in importance. Without
organizational controls, through structure, procedure, or policy (or some yet-to—be-
devised way), unchecked individual inﬂuences upon the organization seem risky.
Organizational analysis on learning and knowledge are conducive to studies about the
individual, as one factor, among many, important to organizations. Studies about
individuals is thought to help increase the understanding of contemporary organizational
operations. (and problem solving) This study, therefore, has chosen to study the activities

of an organization in relation to concepts related to learning and development This

76

study examines an organization that is new and designed in an open, dynamic way. As
ideas about virtual organizational structures evolve, this study can contribute to
information about this type of design.

Now that the subject of learning (and knowledge) in the organizational setting has
been reviewed, including ways organizational research has adjusted to the subject of
learning, a framework for conducting an organizational analysis about learning is now
developed. Just'as some research takes up the subject of learning and knowledge by
paying attention to individual inﬂuences, so too, will this study. This ﬁ-amework is
shaped around ideas of co-development within an organization - the development of the
organization and individual development. Though the organizational literature suggests
this is desirable, it does not readily address both ideas, as noted above and in chapter one.

ORGANIZATIONAL ANALYSIS FRAMEWORK: ELEMENTS OF LEARNING

Here, the ﬁeld of organizational research has been critiqued from the perspective
of attention it gives to individuals as important organizational factors. Recognizing that
the organization is, and should be, of primary importance to this area of study. There
remains a puzzling observation that individuals, as important inﬂuencing factors are
relatively ignored in the literature. At the very least, individuals are viewed equally
alongside other inﬂuencing factors such as design, formal hierarchy, and decision
processes. Though speculation as to reasons why diminutive attention is given to
individuals in relation to other inﬂuences, given the changing nature of organizational
analysis especially with the inclusion of ideas about learning, such past reasons may not

be important.

77

Organizational studies consider immeasurable factors that have proformd
inﬂuence on organizations. Studies identify factors like economics, politics and
technology that diminish the omniscient view of organizations, and the possibility exists
that focusing on the individual, could fmther reduce the controllability and powerfulness
of organizations. But the reason is not likely so simple. Yet, as the literature expands to
incorporate the concept of learning, individuals are being considered as more important to
organizations, thus altering several past patterns of “new” research. (see chapter one)
Speciﬁcally, this study not only attempts to study the inﬂuence of individuals on
organizations, but also whether a duality exists between the development of the
organization and the development of an individual.

This study begins by considering the features of organizations that suggest the
potential for learning - for individuals and organizations? Also, how does learning for
the organization relate to learning for the individual? In what ways do organizational
development activities and individual development activities correlate?

The following “categories” are used to construct a way of looking at learning in a
_ collaborative organization. While some studies about learning examine problem solving,
decision making or structure, these categories are set forth, heuristically, to identify many
possible “ways of learning” within the organizational domain. A great number of '
diﬂ‘erent categories or other conﬁgurations for analysis could have been selected; but
these are holistic and provide an open view of organizations. The four categories have
been selected for the following reasons.

The fan categories applied to the construction of this study about organizational

learning are: Activities, Outcomes, Environment and Values. These categories are

78

intended to accommodate a great variety of organizational inﬂuences. By attempting to
discover more about learning within organizations, these categories can accommodate a
wide range of ideas generally found throughout organizational research. As stated earlier,
there is a common perception that the organizational ﬁeld has not adequately informed
practice and that many new methodological approaches are needed, thus are often in their
infancies. This study is experimental in this sense even though the “standard” case study
methodology is utilized; but heuristic categories guide the analysis creating a more open
formn.

The four categories will be represented as follows: Activities represent behaviors
and happenings that go on within an organization, including problem solving and
decision making activities. Outcomes represent results, products, services, outputs or
other achievements proceeding ﬁom organizational activities or even those that are
lmexplained or accidental. Environmental considerations represent both controllable
and uncontrollable forces that affect the organization, and include political, social,
cultural and economic types. They may be internal or external to the organization.
Finally, values derive from social, ethical, moral and cultural experiences and can be
observed through words and actions. These four categories, are multi-dimensional and
multi-perspeetive. They attempt to guide the analysis that will cover a wide gamut of
ideas about an organimtion’s development. O

Next, within each of the four categories, one descriptive element (characteristic) is
selected ﬁrst from among the many elements associated with contemporary
organizational development ideas. Those that pay particular attention to learning and

development are selected (The same is true when the career elements are applied to the

79

four categories in chapter four.) Four organizational elements and four career elements
create a relationship between contemporary organizational development and career
development in a contemporary organization. The ﬁrst set of four is taken ﬁom the
research ideas associated with organizational learning, especially as they relate to
organizational development The second set of four is taken ﬁ'om research ideas
associated with career development. The ﬁrst four elements guide a case study of a
small, young, dynamic organization that has been designed as a collaborative problem
solving organization. (The organization’s name is HC 2000.) This case study is presented
in the next chapter, chapter three. Then in chapter four, four other elements, according to
the same four categories (activities, outcomes, environment and values) have been
selected from the career literature. These are thought to be closely related and primary
theoretical career development ideas.

The main result of this ﬁ'amework is to incorporate career ideas into an
. organintional analysis. This is intended as a way of discovering information about the
relationship of individual learning to organizational development Both organizational '
factors and individual factors are identiﬁed according to the model currently being
described In this last section of the chapter, the ﬁlm organizational elements are related
to concepts of learning. There reasons for selection should become clear. Ideas about
learning and knowledge, in relation to organizations, have been the primary factors in the
selection. Also, the organization to be studied has a contemporary non-traditional design;
thus the elements take this fact into account.

In summary, the categories attempt to create a heuristic ﬁamework about learning,

and the organizational elements are a way of isolating a few critical factors to guide close

80

scrutiny of an organization. The framework guides a study that is organimtionally-
focused but factor-speciﬁc. First organizational factors, later individual factors, are
identiﬁed and studied according to the same four categories.

Leaning Categories applied to the Organization

Categories identiﬁed as learning categories are designed around ways of thinking
commonly associated with organizational development, in particular organizational
learning. Given the organization to be studied is an example of the newer collaborative
type, the more contemporary organizational issues that are considered ways of promoting
learning, are now selected and referred to as organizational elements. Ideas associated
with the challenge of organizational change accompanies this thinking. As chapter one
described, the traditional, more bureaucratic views (classical view) depicts organimtions
as rational, planned, and predictable. Human relations and socialization ideas, are guided
by systems and contingency thinking, and include studies about organizations as complex
communities composed of cultures, values, informal activities and more. Among these
various ways of thinking about organizations, the eﬂ‘ect of technology upon organimtions
cannot be diminished.

Thus far in this chapter, ways of studying organizational learning have been
described. These include creating a learning organization, application of knowledge plus
problem solving and decision making through knowledge. Thinking about learning as
both adaptive and generative, plus non formal learning that is accidental, episodic and
natural are encompassed in studies about learning, and in the following framework.
Finally, an eﬂ‘ort is made to favor new and alternative ideas, that contrast more

historical/traditional thinking about organizational effectiveness, i.e., the classical view.

81

Given this wide set of considerations, only four elements have been selected to
speciﬁcally study. These guide the case study of a contemporary organization.

These elements are not considered the four “basics,” nor the four “essenti ” to
organizational learning. Many of these ideas set forth below, bear a strong resemblance
to ideas presented in a 1994 book by Bennis, Parikh and Lessem, Beyond Leadership:
Balancing Economics, Ethics and Ecology. While this book contained a great number of
thoughts on the subject of organizational analysis, learning and development, the intent of
this work was to promote something atypical, ﬁ'om other organizational work Bennis
describes that his book focuses on managing in a new paradigm, a global paradigm. “The
focus of the book is on personal development, group synergy, organizational learning and
sustainable development, that leads to a balancing of economies with ethics and ecology.”
(Bennis, 1994) This book, similar to the intent of this study, is simultaneously broad and
speciﬁc. Given our comparable goals, plus seeking to study organizations according to p
the new paradigmatic view, I cite this work more extensively than some others.

General Organizational Elements associated with Learning

Elements selected in the ﬁrst three categories, (Activities, Outcomes,
Environment), are strong opposites to the bureaucratic model, and yet a familiar part of
contemporary organizations and contemporary organizational analysis. The element
selected for the fourth learning category (values) is a signiﬁcant and historical way of
thinking about organizations from a behavioral and social perspective. This too strays
from the economic model of organizations. Yet, the organizational elements, selected for
study, are recognized ways of studying organizational development, particularly in

relation to studying change.

82

 

 

 

LEARNING CATEGORIES
Table 2.2
Category ACTIVITIES OUTCOMES ENVIRONMENT VALUES
Ill/ll/I/I/llllll/Il/Il/
Element
ORGANIZATION Excitement for Aﬁinity for Encourage and Favoring

discontinuous complexity to integrate work into community-

 

 

 

 

and non-linear achieve multi-layered based values
activities outcomes environments over proﬁt
motives

 

The ﬁrst element in the ﬁrst learning category is a contradiction to having linear
predictable activities. Some literature points out that learning (and new ideas) are “best”
carried out through non-linear, discontinuous processes. (Huey, 1993, Bennis, 1993) The
premise that organizational learning is happening within chaos and confusion has been
recorded in organizations; and the notion among some research that maybe we need not
strive to “return” to a less confusing environment is compelling. Nevertheless,
organizational activities that still go forward in the face of discontinuity and non-linear
activities are of interest in this study.

The second characteristic discourages our propensity to draw boxes, circles and
arrows as a means of “explaining” organizational systems and activities that produce
desired outcomes. Most researchers would agree that these graphical representations of
organizations are helpful, but tend to oversimplify the “picture” of organizations. Rather
than striving to simplify organizations, maybe those organizational outcomes with an

aﬁ'inilyfor complexity, are informing about learning. In this second category, an

 

83

intriguing set of ideas examines simplifying or complicating aspects of diﬂ'erent
organizational outcomes along with ideas of futm'e development.

The third category is derived from the open view of organizations, plus is
consistent with the human relations way of thinking about organizations. Issues of
communication and authority, according to open views and human relations models,
suggest that organizations have become ﬂatter, and contain fewer formal levels of

authority. This is often advocated to improve communication and the ﬂow of
I information, and is supposed to make possible easier and faster access to information (via
technology). The ﬂatter organization, still creates an interlocking maze of
interrelationships, formal and informal, planned and unplanned in organizations. But this
ﬂatter organization is considered better equipped to respond to outside environmental
inﬂuences, no matter how varied, dynamic and often unforeseen. In contrast, the third
element selected is to study when multi-layered dimensions of organizations, are present.
Rather than striving to reduce environmental layers, times when an organization
submerges itself in additional multiple layers, internally or externally, is of interest.
Understanding more about these times may enhance our view of learning.

The environmental category has become signiﬁcant in the age of technological
advancements. So while theories may portray layers of other organizations and groups as
barriers and less desirable, their presence and accessibility has increased. A preference
for multi-layered dimensions of organizations, seems to challenge certain notions about
good communication and clear lines of authority. This study looks at whether that

assessment is accurate. In addition to the ﬁrst three learning categories be speciﬁed

84

according to certain organizational elements that relate to-learning, a fourth category
provides an even wider lens through which to study organizational learning.

The fourth category isolates a social view of organimtion - values, morals and
ethics. The concept of values is another factor considered in organizational analysis, that
is gaining stature. As mentioned in chapter one, behavioral and social constructs about
values are more recent developments in research. The literature suggests that
organimtions should hold a community view of themselves, and promote community-
based values. Such value systems are also sometimes considered sustenance for
organizational learning and development. (Bennis, 1994)

Before greater details of these elements are provided, how they will be used in the
case study is important to introduce. This design is not intended to be a totally discrete set
of organizational learning features. They are considered helpful in the investigation of a
particular organization — one that has a contemporary design. Also, this framework does
not attempt to explain fully the concept of organizational learning. By selecting certain
elements, certain features of organizations can be particularized, and speciﬁc ways of
thinking about organizational learning in this organization can be achieved. Later, these
categories are extended to career development cdncepts. This creates a way of integrating
two amlyses that reveal information about organizational development and individual
development. As mentioned in this chapter and the last, this is an experimental research
methodology. Finding ways of incorporating individuals as important factors in

organizational analysis is both timely and potentially valuable.

85

Selected Organizational Elements of Learning

Organizational learning is sometimes considered away of sustaining individual
performance improvements. But more often, organizational learning is viewed as
something more than just improved individual performance. Organizational learning, so
the research suggests, should also provide enduring change in both the thinking and
behavior of the organization. What might we observe about organizations to suggest that
this type of ongoing development (of the organization) is happening? Bennis explains
that, “(E)very organization is a subsystem of a larger system. Internal deve10pment is
always inﬂuenced by outside concepts, values and motives which are the parameters
aﬁ‘ecting the system.” (Bennis, 1995) Senge recommends anticipatory learning that is
both participative and future-oriented (Senge, 1994) Charles Handy, philosopher and
author of “The Age of Unreason,” believes that a learning organization constantly
reinvents itself. He looks to the leaders, not to be clear sighted prophets or commanders,
but designers of responsive organizations that adapt reﬂexively to change. “Instead of
having a clear vision of where the company wants to end up, the leader has to create an
understanding of what the organization is about, and that’s much more diﬁcult. . . .
Ultimately, the CEO will spend more time designing organizations than directing them.”
(Handy, 1995) With this introduction inmind about organizational learning, four
organizational elements, that study certain important organizational factors, are now
interpreted. ’

A better understanding about organizational learning, ﬁ'om the organizational
perspective, will be attempted according to these speciﬁc organizational features: 1)

Activities that discontinuous processes and non-linear; 2) Outcomes that favor greater

86

complexities, 3) The addition and acceptance of multi-layered environments, and, 4)
Community-based values favored over pure proﬁt motives. Each is now examined.
Discontinuous, non-linear activities. Many cautiously consider development
that comes from discontinuity. There is a very real fear that discontinuous means
unpredictable and uncontrollable, leading to chaos and confusion, thus is undesirable.
For business leaders disjointed activities may signal the strong possibility of
organizational disintegration or dissolution. Bennis acknowledges that the possibility of
entropy for organizations exists. “In the social ﬁeld, involution in development (the
decline of a civilization or of a ﬁrm) can rim parallel with the evolution of a new structure
(e.g., the rise of a new civilization (or new ﬁrm).” (Bennis, 1994.) Similarly, Charles
Handy describes how an organization going about reinventing itself, admittedly faces the
reality of discontinuous changes. (Handy, 1996) Organizations, engaging or even
‘ advocating discontinuity, risk “creative destruction” which is how some organizations die
and new ones arise.
Warren Bennis, in his 1994 book, “Beyond Leadership,” describes learning
organizations as more than a simple process of change or growth. According to Bennis,
_ the idea of change when applied to organizations, suggests that nothing is static and we
should ask if the changes are by chance or by design. Ifwe consider growth of
organizations, we simply would be examining a quantitative increase in size. But, Bennis
believes that a learning organization must be developmental. A developmental
organization, and developmental features of an organization, according to Bennis, are

signals that learning is going on. Therefore, organizational learning as a developmental

87

concept includes change and growth, but should include more . . . something more
dynamic and progressive.

Bennis takes a look ﬁom three diﬂ'erent dimensions to help describe what he
would characterize as developmental features of an organization. His
strucnnal/ﬁmctional analysis, which supports the economic and rational view of
organizations, suggests that development is “structural growth that follows phases.”
Bennis states that, “Organizational structures will pass through phases as crisis, after crisis
are faced An organization may begin with growth of a system (quantitative increase), but
this changes to differentiation (subsystem formation), then hierarchization (governing
systems), and eventually tointegration (more complex and specialized subsystems)”
Bennis characterizes these as one of way of thinking about organizational development,
and to accept that at times this view may not always seem orderly or continuous.

The second perspective is biological. Bennis describes the process of
development as growth, accompanied by diﬂ‘erentiation and maturation, (changes in
structure as organisms grow older). Thus, development is also progressive change over a
span of time, which also is not likely to be smooth and continuous. A socialized look at
organizations, also, considers the maturing process in relation to organizational
deve10pment. Mature or “adult” social organizations are those that rise above mere
survival tactics, and become groups of individuals who work together with on jointly
accepted objectives. Either way of looking at development, structurally or biologically,
includes, says Bennis, the need to recognize and sometimes favor activities that involve

the unknown and the unpredictable.

88

The element of surprise. Related to having the potential for organizational '
learning (in addition to development coming ﬁ'om non-linearity and discontinuity), is the
element of surprise. From a systems perspective, when developmental and progressive
(dynamic) activities can be identiﬁed in an organization, the likelihood for sm'prise is
increased. In the world of business, most surprises are not welcomed. Many eﬂ‘orts go
into predicting and anticipating so that there will be very few surprises.

Kenneth Boulding, a well-respected economist has written throughout the entire
century on social economics. He begins an essay, written in 1995, by discussing how
knowledge and technology are creating a very uncertain future. These social systems,
according to Boulding, are evolutionary in character, and create the property of
irreversible surprise. Unlike mechanical systems that have virtually no surprises and
biological systems that are at least partially predictable to greater or lesser degrees (like
normal aging) or equilibrium/control systems that are created as an attempt to control
outcomes with a fair degree of success - Boulding, instead, discusses development as an
evolutionary system (in which he places a system of learning). In this view, everything
is hindsight with practically no predictive power at all. He promotes the study of
development as evolutionary, even though it is unpredictable:

The growth of knowledge is one of the most persistent and

signiﬁcant movements in the history of man, and one might almost say, in

the history of the universe. . . . Of the various processes we have

identiﬁed as permitting prediction, the growth of knowledge is least like a

mechanical process and most like an evolutionary process. Mechanical

projections oftrends in growth rates in a system as complex as this are to

be treated with utmost reserve, though the concept of rate of growth of

knowledge that has some stability at least in short periods, is by no means

absurd. . . . The growth of knowledge, however has been a subject of

many interruptions and even reversals, and it would be very unwise to
predictthatjustbecauseknowledgehasbeengrowingatacertainratein

89

the past, it will continue to grow at the same rate in the future. We could

say pretty safely, however, that the probability of growth is greater than

that of decline and that of acceleration is greater than that of deceleration.

(Boulding, l 995)

Thus, Boulding argues that the growth of knowledge closely parallels an
evolutionary process. Also, he believes that the growth of knowledge is at an
accelerating rate, making prediction difﬁcult. New knowledge is subject to interruptions
and even reversals, and is transmitted to others in very unpredictable (surprising) ways.
However, the growth of knowledge may follow a pattern, and may relate closely to the
life pattern. We should hope, says Boulding, that knowledge increases with age, but even
that can and should be questioned.

This view of evolutionary development, including Stu-prises, is taking place within
a system of interrelated subsystems. Where one subsystem ends as another begins is not
easy to study or explain. (Boulding, 1995) The growth of knowledge then, as a part of
discontinuous and unpredictable activities, has and will upset the traditional hierarchiel
view of organizations. In this way and for these reasons, an excitement for discontinuous
non-linear activities are considered in relation to learning and organizational
development.

Aﬁnity for Complex Outcomes. Another way of thinking about organizational
learning is to consider outcomes in relation to complexities. Bennis argues that
organizational learning creates an aﬂ'mity for complexity. Dynamic and overlapping
systems are readily recognized as interwoven problems, which are complex, not simple,
as the bureaucratic view might suggest As stated earlier, learning is related to problem

solving and decision making. As desired outcomes are examined - more complex

90

outcomes, rather than less — these are thought to generate new knowledge, more
information, greater understandings, and recognize the existence of varied perceptions.
(cite)

Another feature of complexity in relation to outcomes, relates to role and task
complexities. These are distinctive observable features of organizations. As tasks
become greater in number, more varied, with a rapid rate of change and more
interweaving of new variables, such tasks are considered more complex. (Bennis, 1994)
Recognition of such complexities, are identiﬁable and can be considered while an
organization strives toward certain outcomes.

Part of studying the role of complexity as a part of achieving certain outcomes,
should also consider the cognitive capacity, actual and potential, of individual
organizational members. A leadership role, for instance, may be carried out simply or
complexly, and will partly depend on the ability of the individual leader. Similarly, the
role of groups and organizations develops from the complexity of their tasks and are
dependent on the cognitive capacity of the group or organization. There will be unequal
distribution of abilities and skills among group members; plus membership will not be
static, rigid or unchangeable. So in studying organizational learning in relation to
outcomes, another consideration becomes how the-group, organization, gag the single
entity, inﬂuences actual outcomes. (Schein, '1970)

Group dynamics is another way of deﬁning this category. The classical view
depicts groups as very slow and often inemcient. This concern is aggravated as the
complexity of work increases. (F iol, 1994) Some case evidence has shown that if a group

is composed of members who trust one another and have learned to work well together,

91

then the group can actually work more quickly and e‘ﬁciently to produce results, than any
one member, alone, can produce. This is because the group can more rapidly gather and
process complex information necessary for some decisions. This is an example of having
an aﬁnity for complex outcomes.

Also a group can become more creative than individuals because of the mutual
stimulation members can provide to one another. However, studies suggest that this
again proves true mostly when trust is present. Examples of how trust becomes crucial
include, when a non-evaluative climate exists, the decision-making structure is
appropriate to the task, or when enough time is given to explore unusual ideas.
Additional complex considerations include the gathering of a wide range of information
or requiring a complex evaluation of the consequences of various alternatives before
attempting outcomes. A ﬁnal consideration about complex outcomes, is to recognize that
in a group setting, errors of judgment are more likely to be identiﬁed before action is
taken than if an individual is attempting to think through all the alternatives, singularly.
(Schein, 1970). So both overlapping systems, and how individuals and groups deal with
complexities as certain outcomes are achieved, potentially oﬂ‘er interesting scenarios
associated with organizational learning. '

Before turning to the last two categories, two additional features of analysis must
be noted. First, all categories need to consider organizational design For example, group
decision-making designs are, by their very nature, seemingly more complex than 9
individual decision making designs. Second, the introduction ofthe human element into
any analysis automatically increases its apparent complexity and the reduces the

likelihood of predictability. (Bennis, 1994) Unlike highly mechanized processes, we must

92

move beyond rational considerations and recognize that the work of human beings is not
always rational and is “naturally” complex. Some of the work of humans can be seen as
artistic in form. Other work of humans may be more systematic and practical. Business
leaders are noted for their emphasis on the bottom line and for their propensity for action
over reﬂection. Business problems do not appear in predictable completely formulated
ways. In the same way, problem-solving techniques are unpredictable and not
generalizable. Yet, examining attitudes and behaviors that are not always linear and
planned, plus completed tasks that feature complexity, can facilitate the developmental
view about learning that is not immediately transparent about organizations. In the case
analysis, (chapter 3) ideas about organizational learning are investigated by paying
particular attention to complex outcomes, as well as, unplanned, discontinuous, non-
linear activities, including surprises.

These ﬁrst two categories are closely depicted in the following paraphrase taken
ﬁ'orn Wagner’s view of managerial problem solving:

Problem solving is a web of interrelated groups and individuals in

organizations and is said to produce convoluted actions. The cycles of

problem formulation, reformulation and solution-seeking are a recmsive

phenomenon. Custom made solutions are put together, bit by bit, by

managers who are guided only by a vague notion of some ideal solution,

and who often do not know what the ultimate solutions will look like until

is has been completely crafted together. . . . Much managerial competence

appears as action that is nearly spontaneous and based more on intuition

than on rationality.” (Wagner, 1991)

Thus, these ﬁrst two elements about organizational learning are selected

according to the above thinking. The next two elements have also been selected to

support this way of thinking about learning.

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Environmental Layers: Barriers or Protection. A third element to consider in
the case analysis looks toward evidence when an organization recognizes and deals with
more environmental layers, rather than less. Both internal and external layers are
considered. Examples of internal layers are usually thought of functionally or
hierarchically. External layers may be other organizations, groups, or individuals that
interact with organizations. Both types of environments are easy to identify and can be
inﬁnite. Both internal and external layers are forces with power and inﬂuence that may
shift in favor of or against an organization. Groups of individuals and teams form layers '
that come and go in organizations; internal layers may be molded, shaped, reshaped and
may disintegrate or may be ignored. Some environmental layers, internal and external,
are ad hoc or temporary, but still impact the organization in signiﬁcant ways. Other
organizational layers are well-established and deeply ingrained in the organization’s
paradigm. No one is ever certain which structures, or layers, are more essential or
preferred. (Gibson, Ivancevich and Donnelly, 1982) This study considers this dilemma.

From a social perspective, the organization, itself, is a layer within the
community-at-large. The organization being studied is a new layer in society.
Organizations like this are gaining in popularity, and are special ways of solving complex
problems by groups, e.g., , coalitions, consortiums, alliances, partnerships. These
organizations form a new layer among other organizations, yet are advocated as eﬂ'ective
ways to solve problems. Hierarchy and control gets pushed into a back seat position as
shared knowledge and understanding move forward in importance. (See previous section

on problem solving.)

94

Teams, special interest groups or problem-solving organizations are considered
community-based, environmental layers. Labor unions and trade associations are good
examples of why such groups or teams are important to the analysis. Labor lmions
started out to meet a single need, but created a new layer in the environment. They have
become multi-layered, multi-faceted and powerful economic, social and political forces in
our society. Today, coalitions and consortiums often start out with one purpose or goal
and may disband upon achieving the desired objective; or they may extend their existence
by identifying new needs. (Bennis, 1994). In either event, their potential signiﬁcance in
organizational studies is being realized.

Whether additional layers are internal, external, permanent or ad-hoc, they
represent a situation that poses new set of issues to organizations, issues important to
understanding learning. Additional layers to a decision making process can be viewed as
interfering with sometimes already cumbersome , multi-layered processes and thus are
discouraged. But decision making across boundaries is usually thought to produce better,
higher quality decisions and results in new improved actions. (Taylor and Hobday, 1993)
Collaborative groups (business/ civic/social) join together leaders ﬁ'om various
organizations as agents for a speciﬁc purpose. Groups that organize for the purpose of
creating a productive partnership intend to offers mutual beneﬁts to all members, and
seems to recognizes that individual efforts would be less eﬂ‘ective. Many examples of
such organizations match this description. They include: consortiums of business
sponsors, producers or competitors to promote a particular industy, (e.g., promote high
tech, milk producers); integrated campaigns to strengthen a community, (chamber of

commerce advisory boards, city clean-up campaigns); agents to eliminate duplication and

95

increase eﬂiciency, without sacriﬁcing autonomy, (health care providers); partnerships to
examine complex problems, (welfare reform, job training). The common thread among
these groups is the identiﬁcation of a mutual problem, the desire for a mutual solution
and a high degree of dependence on individual leader’s abilities to eﬂ‘ectively guide a
process. They are adding to and working through multi-layered environments.

A multi-layered environment, by its very nature, depends on creating a common,
shared understanding. Most realize the need to learn how to create a future together,
through joint problem solving ventures. Some organizational activities may operate
within a single environment, while other activities may be carried out in multi-layered
environments. Examining the engaging ideas of nonlinear, discontinuous activities, and
aﬁnities toward complex outcome, are incomplete. Organizational environments,
internal and external present additional considerations and choices necessary for
investigating ideas about learning. The ﬁnal category, values, isolates the increasingly
important value of community. Research about organizational learning touts the
necessity of moving beyond short-term proﬁt motives to long-term community-based
values.

Community values sustain learning. The fourth organizational element to be
considered is favoring community-based values over proﬁt motives. All too often, leaders
and organizations argue that while community based values are nice, if the organization
doesn’t pay attention to making a proﬁt, nothing else will matter. Bennis (1995) argues
that an organization with a single-minded emphasis on proﬁt maximization will not be a
developing organization and is less likely to sustain itself in the global marketplace.

Deming, who established organizational principles (and credited with helping the

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Japanese industry achieve world-class standards of quality), was equally convinced that
adhering to a strict system of rewards is a major evil to which many organizations have
fallen victim. Senge describes seven learning disabilities, that together, suggest purely
competitive attitudes. These learning disabilities include having a win-lose attitude,
which prevents learning organizations from becoming a reality. (AED F ormdation)
Therefore, research suggests that a major deterrent to learning and organizational
development is when pure economic purposes are held onto much too dearly, or
persistently dominate an organization’s thinking. Organizations that Operate ﬁ'om the
premise that its survival is solely dependent on generating a proﬁt, will not necessarily
develop to their fullest potential. (Blankstein, 1992)

Bennis argues that if leaders place a single-minded emphasis on proﬁt and
personal gain then at the very least social learning is reduced; and individual learning is
encumbered. He believes that gaining should not be emphasized, instead contributing (in
order to gain) should be stressed. Proﬁt, like happiness, popularity and self-fulﬁllment, is
best gained indirectly, says Bennis. He argues that if Customers realize you are less
interested in them than in extracting their money, they will not conﬁde in you. For
employees, if they are regarded as mere instruments of a leader’s purpose, they will not
risk revealing their genuine needs or trust you with their most creative abilities. In short,
you will learn less, until you reconcile others’ welfare with your own needs, in order for
both to gain. Rather than measuring organizational success by proﬁt, Bennis favors
measrning market share, which is built on market relationships which he believes is a

better indicator of success. “Market share reﬂects the mutuality of suppliers and

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customers, and places an emphasis on what has been put into relationships; where proﬁt
measm'es what has been taken out.” (Bennis, 1994).

Another concept attached to the category of values comes ﬁ'om Senge’s ﬁve
disciplines. Senge is very certain that organizational values focused on proﬁts will
disable its ability to create a learning environment and also cripples the organization in
other ways. (Senge, 1990) Senge suggests that if individuals in an organization are
centered upon themselves, and see others as “the enemy that must be beaten,” then the
beneﬁts of learning and a progressive nature that can be gained ﬁom learning will never
be realized. He believes that when an organization seeks to understand and meet the
9 needs of its customers and its employees, but possesses an “I am” myopia, and “they as
the enemy” attitude, that the organization is conditioned to see life as a series of cause
and eﬁea events. He believes that such an organization’s chances for survival in these
rapidly changing times are slim. (Senge, 1990)

A FRAMEWORK FOR STUDYING ORGANIZATIONAL LEARNING

Four organizational elements described above, help discover more about learning.
These elements challenge certain premises behind the rational bureaucratic model of
organizations. They feature contemporary views of organizational development and
learning. Rather than examining linear and rational activities, simpliﬁed outcomes,
limited environments, and economic motives, as ways of understanding a learning
environment, these four categories feature learning in quite opposite ways. How might
discontinuous activities, complex outcomes, multiplying layers, and community-based

values contribute to organizational learning?

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The organizational analysis, using this ﬁ'amework and the above-described
elements as a guide, is shaped within the traditional case analysis format and presented in
the next chapter. Once this analysis is completed, a biographical career analysis of a
leader (of the same organization) is developed according to this same original ﬁ'amework.
(See chapter four) For that study, career development elements, not organizational
development elements, are selected for study. Thus, the four categories of activities,
outcomes, environment and values are extended beyond organizational considerations, to
career issues. Though the analyses are separate, the, framework provides the opportunity
to compare and contrast the organizational ideas with ideas about an individual’s career
development, as a part of an organization’s development. (See chapter ﬁve.)

The ﬁrst chapter introduced historical and emerging ideas associated with
organizational research and took note of the diminishing role of individuals. This chapter
isolated ideas about organizational development and learning, according to the emerging
contemporary view, in part attributed to the “drastically new” conditions caused by
technological innovation. Included in this chapter has been a description of the ways in
which organizational learning is studied, namely learning as a feature of problem solving
within new organizational structures. Also ideas often studied about knowledge,
possessed and shared, were described. Using working deﬁnitions of a learning
organization and organizational learning, a way of overlapping the role of the
organization and the role of the individual, with regard to the subject of organizational
learning, is possible.

Finally, this last section concentrated on describing an heuristic framework to

reveal particular ideas about learning in the organizational domain. Speciﬁc aspects of

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each category (i.e., activities, outcomes, environment, values), increase attention to
contemporary ideas about learning in organizations. Four speciﬁc elements associated
with each of the four categories, will guide the investigation of a contemporary
organization whose primary purpose is to engage in problem solving. The four-part
model is consistent with an open systems view of analysis. Though not designed to
produce a comprehensive model of learning, new ways of describing learning in
organizations, plus a way of relating ideas about individual learning to organizational
development is the primary objective of this study.

This framework becomes a theoretical core to this study about learning. A study
about learning within a new, young organization is now presented; there is a special
regard for its development. Details about certain achievements and a history of the
organization’s activities are portrayed in a case analysis format in the next chapter.
Through case analysis, certain signals about learning for this organization are associated
with changes, in the past and in relation to current goals. Has the organization deve10ped
and progressed since it began three years ago? How does the organization engage in
learning? Is the organization maturing and changing in ways that will sustain its future?
Using these types of questions to guide the inquiry, information about organizational

learning and development, and other contributing factors are now presented.

Chapter 3
ORGANIZATIONAL LEARNING: A CASE STUDY
Introduction
The concept of the learning organization is an illusive concept. The leaders of
one organization, called HC 2000, think the concept of a learning organization is directly
related to the learning of individual organizational members. The literatm'e on
organizational analysis combines and yet distinguishes ideas about learning for the
organization and learning for the individual. Either and both ways ofthinking about
organizational learning suggests the need for investigation.

' Chapters one and two explore ways in which organizational analysis explores
ideas about learning in the organizational context. Research about organizational change
and organizational development, from the perspective of learning, is carried out in a
variety of disciplines and with an overwhelming number of purposes. Research
containing cultural and social constructions, plus systems views of organizations enriches
the view of learning within organizations. New knowledge, new understanding, and new
ways of thinking about the nature and importance of organizational learning is just ’
emerging in the organizational literature.

This chapter explores the concept of organizational learning through the case
study inquiry method. This method effectively accommodates systems thinking and

readily illuminates cultural and social ideas about a particular case. The case analysis is

100

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guided by four broad learning categories applied to an organization, plus four isolated
elements about organizations have been deemed especially relevant to ideas about
learning. (See chapter two)

The organization selected for this study is called HC 2000. This is a small
organization, started in 1993. Today, the need for it to be a learning organization seems.
essential to its survival. The organization was selected for this study for several reasons,
one being its contemporary design. This organization is a business coalition, with
representatives ﬁ'om various businesses all doing business in the same region of the
country. This organization was formed to address the problems of health care -— a
common problem to all employers in the local area, as well as a national concern. This
organization was founded as a local solution to a national problem. HC 2000’s mission is
to provide solutions to the problem of rising health care costs, while maintaining or
improving the quality of care, in one local area. HC 2000 leaders do not list
organizational learning as an organizational goal, but achieving its mission and purpose
readily depends on the successful development of this organization. At the present time,
the case subject, HC 2000, proudly reports several events - considered its most
signiﬁcant organizational accomplishments to date — which are considered forms of
organizational development in this analysis.

Before carrying out the case analysis, the ﬁrst section explains reasons for using
the case study method to study organizational learning and considers how this
organization, HC 2000, is a good case subject. Then a brief introduction of HC 2000 is
provided. The concluding sections contain the case study, which has been developed

around the framework presented in the last chapter.

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This chapter studies one particular organization (HC 2000), through a qualitative
case analysis approach, to develop a better understanding about organizational learning.
Thinking and analysis is guided by the organization’s activities, outcomes, environmental
characteristics and values, i.e., the four broad categories selected here as one way of
studying learning in organizations. Evidence of progressive and developmental changes
for this organization are of special interest to this study.

QUALITATIVE CASE STUDY RESEARCH
Introduction

Selecting a suitable research design and using it eﬁ‘ectively entails a variety of
considerations. The appropriate design should derive ﬁ'om the nature of the study and the
subject being researched. The subject of this study — organizational learning - lends itself
to the case study research method. The reasons for selecting this method are described
below. The challenge of deﬁning and describing exactly what is case study research is
ﬁrst mentioned, followed with the rationale for selecting this method. Aﬁerward, ways in
which a case study is responsibly conducted, according to Robert Stake, are discussed in
relation to this analysis. There are a wide range of considerations about case studies
versus other methods; and those considered for this study precede the analysis.

The ﬁnal two sections of this chapter contain the case study. A thick description
of three signiﬁcant organizational events HC 2000, (the case subject), is followed with an
interpretation of the events. The interpretation is organized around the four learning
categories developed in Chapter two. The case study method is a vehicle for discovering
both descriptive and interpretive details about an organization and a good way of

featuring details about the concept of organizational learning.

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Deﬁning Case Study Research

A well known authority on case study research, Sharan Merriam, admits there is
no. consensus on what constitutes a case study or how one actually goes about doing this
type of research. (Merriam, p. 5, 1988) This methodology can be distinguished ﬁ'om
other research methods, such as historical, psychological, or survey research; but case
study research can also, draw from theories and concepts in other disciplines. While case
study research can be quantitative or qualitative, the following discussion focuses only on
the qualitative case study method of research.

Regardless of which discipline(s) research might draw from, Merriam deﬁnes
qualitative case studies as: “an intensive, holistic description and analysis of a single
entity, phenomenon, or social unit.” Case studies are: particularistic, heuristic, and
inductive. Stake, another well-known authority on case studies, tells how this form of
research is usually favored by constructivists. “They (constructivists) believe that
knowledge is socially constructed.” Plus, Stake reminds us that case study research
actually assists readers in the construction of knowledge. Therefore, qualitative case
L study research is about a subject or problem and investigates a particular phenomenon or
social entity. Case studies can heighten or extend the range of understanding about a
particular subject. (Stake, 1995) The speciﬁc reasons for selecting a case study to study
organizational learning, are now provided. 0
Case Study Research about Organizational Learning

A research design is a plan for assembling, organizing and integrating
information. (Merriam, 1988) When developing the research plan, Merriam emphasizes

the importance of considering the nature of the research question and the desired end

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product. A case study is best when research seeks answers about “how” and “why,”
rather than “what” and “how many.”

In addition to the above considerations, the orientation to theory should also be
part of selecting the research design. (Stake, 1995) Qualitative case studies attempt to
build theory, not create new theory. Case studies are descriptions and interpretations that
are used to inform or provide more insight into theory. Therefore, a case study not only
helps the reader understand particulars of a case better, but also becomes a theoretical
research instrument.

This research study is primarily interested in the subject of organizational
learning. (Reasons are presented in Chapters 1 & 2) How, why and when does
organizational learning appear in organizations? Using the case study approach can help
develop a better understanding about learning that is carried out in organizational
settings. The case study describes events, particular behaviors, and situations. It is a way
of looking at the phenomenon of organizational learning in a natural and complex setting
- an organizational setting. Interpretations are based on organizational details, presented
in the case, and on theoretical constructs, presented in the last chapter. Organizational
features (details) and its processes (behaviors and actions) are studied as potential
learning experiences and related to organizational change and deve10pment.

Questions like these are considered with this design: What are the ways in which
the organization changes? Has learning accompanied the changes? Finally, the case study
can give attention to factors relating to either the organization and individual

organizational members, as appropriate.

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Another reason for choosing the case study research method, has been to provide
a mechanism for scrutinizing selected organizational features that accompany
organizational actions and change. This methodology makes it possible to study a
particular issue or idea in its natural and complex state. Here, the subject of
organizational learning for HC 2000 is considered a part of the organization’s
achievements and other developmental aspects. Also, this methodology makes it possible
to build on theory. Therefore, this case is both intrinsic — providing a better
lmderstanding of this particular learning organization - and instrumental - providing
insight into the issues and theory related to organizational learning.

As an intrinsic case study, understanding more about organizational learning is
done by looking at speciﬁc ways in which the HC 2000 organization has changed.
Reﬂective observations about several changes and various experiences of the
organization are included. For example, ways that HC 2000 organizational members
have been responsive to new ideas and new inﬂuences, demonstrated adaptive behaviors,
and new ways of coming up with solutions are featured. The case study accommodates
this type of discovery process about organizational learning.

As an instrumental case study, systems and contingency models of organizational
theory are considered. Speciﬁcally, organizational events are characterized according to
four learning categories (and organizational elements associated with learning concepts)
derived from organizational systems thinking. (See Chapter 2) The case study method,
which is considered a holistic method of research, accommodates systems thinking.
Organizational theories examine organizational behaviors, and their interrelationships;

researchers seek ways of knowing more about organizational abilities and outcomes. As

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discussed in Chapter one, organizational theories, including bureaucratic and humanistic
types, often center around issues of commrmication, motivation, culture and ethics, as
well as structure, hierarchy, formal and informal characteristics. Research that examines
organizational behavior and relates actions, language, values, cultln'e, moral or ethical
questions, and more, can help inform existing organizational theories. These research
considerations and areas of interest to organization theorists, can all be incorporated into
a case study analysis. And ﬁnally, this method accommodates a variety of perspectives.

The subject of this research, the desired end product, and the orientation to theory
have all been considered when selecting the case study method. The subject is
organizational learning, and the desired end product is to comprehensively understand
more about how and why organizations learn. .The theoretical orientation is to advance
our thinking about organizational theory, especially as it relates to organizational
learning. The case study research method achieves all these objectives. Before
presenting the case analysis, the strengths and limits, plus preliminary choices that shaped
the analysis are ﬁrst oﬁ'ered.
Advantages and Limitations of Case Study

The case study is a rich, holistic account of a phenomenon. Selecting this
research method means a conclusion has been drawn that the strengths of this
methodology outweigh the weaknesses. Nevertheless, both are important to identify.
The case study was selected because it seemed most appropriate for providing the type of
information sought - a richer, deeper understanding about organizational learning.

A case study, an applied study, accommodates multiple variables that potentially

vary in importance. The variables are anchored in real-life situations. The case study

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allows for an investigation of a complex social unit, which aptly describes business
organizations. Case studies can advance a knowledge base, both by illuminating
experiences and possibly offering new theoretical thinking for readers to consider.
Within organizations, problem solving activities are an important activity, especially now
when organizations know they must often change, adapt to new problems, and are
developmentally changing. By illuminating the experiences of a few leaders, in one
organization, readers may gain new insights and understanding about their own problem
solving experiences in their own organizations. These many strengths are signiﬁcant and
outweigh the limits of the case methodology.

The limits of case study are numerous. For this study the limits are considered
minimal. First, rich, thick descriptions and analyses take time to produce and to
eventually offer one display about learning. Though this is one case, general
organizational and leadership views have been incorporated into the study. Also,
sometimes when highlighting or featuring a particular event or perception, its importance
is oversimpliﬁed or exaggerated in cases. Plus the investigator has monopolistic control
over the selection and presentation of the information. Since, the case study method has
no strict or universal guidelines and the investigator may be insensitive or partial to
certain parts of the case, the integrity of the study can often be questioned. The
development of this analysis has considered two sets of perceptions/opinions — those of
several HC 2000 leaders and my own. The attitudes of several, not just one, have been
used to determine which organizational events to highlight and also several leader’s

voices have been incorporated into the text. This has served as a check and balance, and

108

reduces the likelihood of mistakenly overemphasizing irrelevant 0r Imimportant
organizational events.

To balance concerns about case analysis, Robert Stake identiﬁes six
responsibilities that he believes, if carried out, strengthen any case analysis. These
responsibilities are listed below, along with a description of how this study addresses
them. But realistically, as Merriam points out, the investigator is still left to rely heavily
upon his or her instincts and abilities when doing this type of research.

Responsibilities of Case Research (Robert Stake, 1995)

Carrying out a research effort in a responsible manner is an important part of
determining the value of the study’s conclusions or observations. In the forn'teenth
chapter of the “Qualitative Research Handbook,” Robert Stake provides a summary list of
important considerations (responsibilities) that every researcher should consider when
engaging in qualitative inquiry through the case study method. He identiﬁes six major
conceptual responsibilities for the qualitative case researcher to follow. These are listed
below, along with a discussion on how they were applied to this ease:

I. Boundlng' the &, mtualtmg' ' the object of study - Louis Smith is
credited with coining the term, “bormded system,” (1978); both Stake and Merriam call
this step the identiﬁcation of the lmit of analysis. The subject of organizational learning,
has been studied within a set of organizational activities, over a period of time. Problem
solving and changes produced by organizational members became the initial way of
boundingthe systemtobe studied. The unittobestudied, the bolmded system, isan
organization called HC 2000. This organization has both a purpose and a mission

involving complex problem solving. This is a speciﬁc setting, and set of activities, where

109

leaders are working to reform the health care industry. The boundaries of this
organization are very clear in the minds of the organizational participants and to any
observers. Internal to the organization are several groups that make up the organizational
system. External to HC 2000, the health care industry and other local external entities are
easily separated and relationships can be identiﬁed with the organization. Thus, the object
of study is speciﬁc and bounded. HC 2000, and its activities, can be conceptualized
according to distinct organizational behaviors surrounding various problem solving
activities.

2. Select phenomena theme or issues (research ggeg’og) to M’ — The
phenomenon, organizational learning, comes from contemporary research about
organizations. As noted in Chapter 2, this phenomenon is often associated with.
organizational change and development through decision making and problem solving.
These activities may or may not be “ways of learning,” but if they are, then the eﬂ‘ects of
learning should contribute to the organization in some remarkable way. The
organization, one would hope, should experience progressive and developmental change
if organizational learning is taking place. Focusing on certain processes, related to
problem solving activities, is a way of discovering more about how some things happen
and how and why decisions are made within organizations. Equally important to
increasing the depth of our understanding about organizational learning, is to attach
meaning to organizational processes by asking how people make sense of their
experiences; and how they interpret these experiences. Both organizational processes and
meanings, that are attached by its members to organizational changes, are featured in this

case study.

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. 3. Seek mttems ef data 19 develep the issues - Organizational learning, as
deﬁned in Chapter two, can be associated with speciﬁc organizational activities,
outcomes, changes, as well as many other factors directed, initiated and carried out by
organizational members. The behaviors and actions of the HC 2000 organization, and its
, members, are organized around three signiﬁcant organizational achievements. Selecting
the data set from within the organization was non-probabilistic, which is the method of
choice for qualitative case studies. (Merriam, 1988) The selection process was
purposeful (Patton, 1980), so that only behaviors and activities related to the three
signiﬁcant organizational events were chosen for study. (Additional supporting
information is included in the Appendix.) The information selected was considered
representative and informative about organization’s achievements. Included are details
about numerous situations, various participants’ actions, their perceptions, diﬂ‘erent
related incidents, and phases of processes, all leading up to or following a speciﬁc
organizational achievement. In addition, patterns associated with organizational
activities, outcomes, and changes were developed according to organizational learning
constructs -- the organizational learning categories -- developed in Chapter two.

4- W- The data was
selected and structured around three key organizational achievements. The data selected
comes ﬁ'om three different sources and helps identify different ways organintional
learning can be studied. The data for this case analysis is primarily based on the
information collected during private one-on-one interviews with seven board members of
HC 2000. (See appendix) After being given a deﬁnition of organizational learning

related to leadership, the leaders were each asked to discuss organizational learning in

111

relation to the HC 2000 organization. Information collected from the interviews served
as one set of data to analyze. The second source of data comes from personal
observations at various organizational meetings, taking place over a recent eight month
period, (September, 1996 through April, 1997). The meetings were opportunities to
observe, relate to, and extend the information that had been collected ﬁ'om the leaders’
interviews. The third source of data comes ﬁom 30 written documents and
approximately 10 informal conversations held with various organizational members, (not
formal interviews). The written documents consist of company correspondence (sent and
received by HC 2000), promotional materials, plus media accounts about the organization
and happenings in the local health care industry. The informal conversations were
opportlmities to ask questions of individuals, following meetings being observed
Questions were asked of the HC 2000 President(s) and other organizational members
(committee members) as a way of gaining a more complete tmderstanding of
circumstances observed at the meetings. These threetypes of data overlap and aid the
interpretation process. The triangulation method reduces misinterpretation and increases
validity. (Stake, l 992)

5. Selm' g alternative interpregtioes t9 mue - This responsibility was
accomplished in two ways. Direct quotes depicting the perceptions and opinions of the
leaders interviewed are distinctively placed in the study. Their voices are presented in
italics, where my voice is not. Sources of various written information included in the
case, are identiﬁed and dated. Another way of considering the possibility of alternative
interpretations, has been to look at the organizational activities ﬁ‘om the perspective of

career development, rather than just as organizational development. This is accomplished

112

in Chapter 4, and becomes a signiﬁcant alternative interpretation of organizational events.
Chapter four presents a career biography of one HC 2000 leader, particularly focusing on
his HC 2000 experiences. Thus, alternative interpretations are represented and additional
voices are provided (italicized) in this case study. In Chapter four oﬁ’ers an additional
interpretation about organizational learning from a career development perspective.

6. Developing assemons o; generalizatipns about the case - The interpretation
of several signiﬁcant organizational events, their eﬁ‘ect on organizational activities or
organizational changes, are presented in this last section of this chapter. Several
assertions are made about HC 2000 experiences and whether they seem to' be '
accompanied by learning. Leaders were asked to described organimtional experiences in
' relation to their leadership views, and to consider when their experiences seemed to be
learning or non learning experiences. These varying viewpoints, along with an
application of data to the four learning categories, are the bases for making assertions and
generalizations about organizational learning.

Concluding Comments about Using the Case Method

One organization presented as a case may typify other organizations, but in many
ways it probably does not. This case study is about a collaborative organization engaged
in problem solving. Many of the experiences associated with the organizational activities
of HC 2000 may be similar to other organizations; but they are also lmique to this setting
and these participants. Such concerns about generalizability are not primary to this study.
While some attention to building theory (organizational learning theory) is given, this
study features the particular and the unique. This is carried out to deepen our

understanding and create new ways of thinking about organizational learning.

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What goes on at the meetings, in discussions, and is considered an accurate
representation of HC 2000 leaders’ perceptions, in many ways may be typical. at other
organizations. Simultaneously, the more atypical and unique parts of this case, are
equally important. Stake reminds us that, “(o)ﬁen it is better to learn a lot from an
atypical case than a little from a magniﬁcently typical case. (Stake, p. 243, 1995) The
reader is left to draw conclusions based on their past experiences; but the value in a case
study is the opportunity to look at both the common and the particular. Our
V understanding about organizational learning can be advanced from considering both.

This organization, HC 2000, was selected because it is an example of the new
type of organizations often recommended for producing learning environments. The
learning categories have been deﬁned according to elements particularly associated with .
enhancing learning. This case, therefore, may not be typical but may offer some excellent
examples of organizational learning.

Details about HC 2000 experiences and activities associated with three important
organization events for HC 2000, are identiﬁed next. (Section 4) The leaders voices are
presented in italics. Following the descriptive information of the organization, ways of
explaining and thinking about organizational learning are interpreted according to the
particular conceptual ﬁamework conveyed in Chapter 2. First, some general details about

HC 2000 are provided. (Additional details are included in the appendix.)

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INTRODUCING A NEW ORGANIZATION: LEARNING TO SOLVE
PROBLEMS

Introduction

A learning organization engages in progressive and developmental change. The
mission and purpose of HC 2000 suggests it may to be a learning organization, or at least
is an organization that encourages learning. The mission of HC 2000 is, “to create a
community agenda on healthcare representing the interests of employers by achieving
cost containment and cost reduction, while preserving and improving the quality of care
delivered.” HC 2000 was formed to bring about change in an industry that most agree
needs changing. As HC 2000 attempts to carry out its work of achieving cost
containment/reduction and preserving quality of care, it seeks change in a large complex
industry. Of particular interest: As HC 2000 attempts to bring about change in a
complex industry, is it becoming progressively and deve10pmentally more eﬁ’ective as an
organization? Is HC 2000 engaged in organizational learning?
Why Organization was Famed

Business solutions come in many forms. In this case, a group of business leaders
in one community have approached the problem of health care reform by joining forces.
A group of leaders from various organizations formed a coalition as a business solution to
a troubling and growing. business problem common to them all: the need to optimize
health care.

Health care costs have escalated for over ten years. One reason for this is thought
due to mismanagement of the industry. Business leaders believe their companies are

paying for inefﬁciencies in the health care industry, and thus are victims of cost shitting.

115

(See glossary of terms in appendix.) HC 2000 was formed to try to change this pattern -
by reducing inefﬁciency and to contain or reduce costs. These leaders, believe they know
something about reducing costs, plus know about the difﬁculties in achieving real
savings. Becoming more efﬁcient is something they constantly must do in their own
organizations. They believe health care providers should be doing the same.

HC 2000 promotional literature describes six ways of reaching its goals:

1. Negotiate standard prices with providers

2. Establish a provider/employer Health Management Information System

3. Work with providers to eliminate unnecessary utilization

4. Identify measure to reduce malpractice costs

5. Identify measures to reduce administrative costs

6. Collaborate with existing community organizations to improve cost-
eﬁ‘ective healthcare delivery '

Now aﬁer nearly four years in existence, the organization has achieved several
successes. Four of the above six approaches have been taken. (1,2,5,& 6) These
achievements, though modest in actual results, are considered signiﬁcant beginnings.
Leaders of HC 2000 consider its achievements crucial in deﬁning the future of the
organization. These achievements are indicators that the organization has made progress
toward its goals and will persevere in creating change in the industry. Thus, the
organizational achievements are featured and studied in detail here. The main question is:
In what ways have signiﬁcant events for HC 2000 been organizational learning
experiences?

Who Formed HC 2000?

Creating this new organization was systematically carried out by one leader, Jerry.

He was the CEO of the largest employer in the local area. He envisioned this new

116

organization and shared his thinking with other leaders as he recruited them to become a
part of this new organization. He wrote a position paper (a ﬁve page document) that
explains the type of role he intended this organization to take in the local health care
industry. Here is a poignant excerpt ﬁ'om that paper:

Employers should join forces to establish a competitive

“counterbalance” to hospitals and physicians. We have excellent hospital

leaders and excellent physicians in the (local) area. We can and should be

proud of them and the jobs they do. At the same time, we should

recognize that they must make decisions and take actions that are in the

best interests of their own organizations. We do the same. HC 2000 is

needed to provide better competitive balance — to stimulate hospitals and

physicians to respond to the needs of employers and to optimize health

care resources at the community level.

Jerry identiﬁed a serious business problem, i.e., rising health care costs; then
consulted other organizational leaders about what to do to improve the situation, i.e.
problem solve. He studied what was happening in other communities and wrote about
the problem (i.e., position paper). Finally, he formed HC 2000, a business coalition, as a
new way of solving this critical and complex problem.

Not long after Jerry recruited leaders as members of the board of directors, he was
placed in the awkward position of having to leave the organization. He was taking
another CEO position at different company in another community. This quick succession
in leadership for HC 2000, and the loss of its visionary leader, seems to have set the
organization back, at least temporarily. Second, third and fourth chairs have been
appointed in as many years. However, they all have retained the original purpose and

mission of the organization.

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The Organizational Design

HC 2000 is a coalition-based organization, with a membership structure. Its
internal design is somewhat traditional (i.e., bureaucratic), but instead of functional
departments, various ﬁmctional committees were created. HC 2000 is a small business
coalition, with few assets. (See appendix) This relatively young organization has a
President, a Board of Directors and three “technical” committees. Its size and
composition of highly expert leaders lends itself to effective problem solving.

The President, a paid consultant, is the primary interface between the other two
organizational layers, i.e., the committees and the board of directors. Occasionally, a
committee chair attends a board meeting to discuss current committee activities, but
mostly the President relays summary information about committee activities to the Board
members. Conversely, a Board member (usually the Chair) may attend a committee
meeting. But, there is very little interaction or overlap between the three organizational
groups.

The President, is the only paid member of HC 2000 and he is contracted
consultant. Counting all members of the Board and the committees, (the essential core of
the organization), there are twenty people involved in carrying out HC 2000 activities. »
All twenty are employed elsewhere at other local businesses, and thus are “volunteering”
their time to HC 2000.

One board member depicts the organizational membership in this way: Board
members represent a variety of sizes and types of companies. Sometimes we had crossed

purposes on some things, as diverse a group as we are. A couple of companies

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represented by board members are local, some are national or regional. So sometimes
there will be conﬂicts.
The External Environment

HC 2000 was formed to contain/reduce the cost of health care, at least locally. To
do this, HC 2000 has immersed itself in the local health care industry, in at least six
different ways and intends to change many parts of the industry. (See mission above) In
contrast to having few internal bureaucratic layers, HC 2000 must, therefore, carry out its
work in an environment that has many powerful external layers or groups, (both formal
and informal), and an environment known to be complex, confusing and changing.

HC 2000 intends to. interact with providers and suppliers of health care, initially
hospitals and physicians are targeted. In addition to the hospitals and the physicians, there
are also laboratories, medical equipment suppliers, ambulatory companies, to name a few,
that the organization is beginning to be in contact with. Though HC 2000 does not plan to
deal directly with HMOs, PPOs, PPOMs, Third Party Administrators, Blue Cross and
Blue shield, and other insurance companies, these organizations all represent additional
bureaucracies (layers) in the external environment. (See glossary of terms in appendix.)
They, too, are signiﬁcant to the industry and thus important to HC 2000. This latter
group may, in fact, someday feel threatened by what HC 2000 is attempting to do.

1 HC 2000 leaders, during their interviews, described the type of organization and
organizational activities that HC 2000 engages in, particularly in relation to its external
environment. Issues of pricing and proﬁt were central to their discussions; plus a
recognized need to ﬁnd new ways for HC 2000 to reduce health care prices . . . something

that the organization has not yet achieved — at least directly.

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One board member offered this somewhat vague description of how the
organization works through the forceful external environment: We are paying “X”, they
are paying “Y. ” Over ﬁve years we would like to have “X” and “Y” come together. We
know we can ’t do that overnight but lets take steps to make it come together. To plan and
to have someone show us how. We are making slow residual progress and not seeking
radical change. . . . I think the big thing was getting of the ground The next milestone
was negotiating contracts with the hospitals. Some, including the hospitals, probably
thought that was never going to happen.

Summary of Initial Formative Period

The purpose of forming HC 2000 was clear - to optimize health care in the local
area, by optimizing cost and quality. The leadership of the organization was unstable
during its ﬁrst year of operation, (See Chapter 4); thus very few results were achieved
toward its purpose during that ﬁrst year. After the third chair was appointed, speciﬁc and
signiﬁcant events occurred which are the focus of this study. Today, the organization
remains structured much like it began, but the identiﬁcation of new avenues and new
pursuits are the main foci of all organizational members.

The third board chair recently completed his tenure and stepped down. He plans
to remain active in the organization and, thus, assumed the role of vice chair. The fourth
chair, in as many years, assumed the top duties of the HC 2000 organization beginning in
late Fall, 1996, (This was in the middle of the period of study.) This new chair has been
with HC 2000 since its inception. He admits that he will now have to learn more about
HC 2000 and plans to be a diﬁ'erent type of chair. I plan to provide a somewhat diﬂcrent

form of leadership than John did John was a more hands-on leader than I intend to be.

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The HC 2000 organization now takes credit for several successful ”results” or
“achievements.” These are studied in detail in the following case analysis. Along with
these accomplishments, the prospect of leadership stability seems higher than the past.
The organizational leaders are hopeful about HC 2000’s future but speciﬁc results or
desired outcomes are still vague. All leaders are very clear about what the organization
has been able to achieve so far. There are essentially three signiﬁcant outcomes, that the
leaders, interviewed, all seem well aware of and identify as the successes, to date, of HC
2000. These soocalled successes suggest to the leaders that HC 2000 has become a good

long term problem solving idea; one still worth pursuing. Thus, these achievements are
central to the following case analysis for the following reasons.
Experiences Culminate into Outcomes: A Case Study of Achievements

The HC 2000 organization was selected for study because is involved a group of
leaders engaged in collaborative problem solving activities. These organization is dealing
with complex problems, with no obvious solutions. As information was gathered about
the leaders and the organization, plus details about their organizational activities, it
became clear that their experiences mostly centered around three particular eﬁ‘orts. The
leaders describe these as organizational successes or accomplishments. These three
historical events are described as a culmination of the collective leadership activities by
the leaders included in this study. These events are studied in relation to learning.

As this analysis took shape, it soon became obvious that the collective efforts of
the leaders could be depicted (and organized) around certain events attached to this
organization, i.e., organizational accomplishments. Thus, the following case study is

organized around three particular events directly related to the HC 2000 organization.

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Each event is distinct and deﬁnable. By organizing details about the leaders’ activities
and perceptions of these speciﬁc outcomes, a record of the culmination of experiences
associated with each speciﬁc outcome, is informative. Using speciﬁc events, and
analyzing these events as learning experiences, provides a type of critical-incident
account that guides the interpretive analysis. Thus, the following case study is organized
according to three distinct events that the leaders all identiﬁed as important parts of their
leadership activities with HC 2000, and as very important events that insured the future of
the organization.

A CASE STUDY: SIGNIFICANT ORGANIZATIONAL OUTCOMES
Introduction

Signiﬁcant events of HC 2000 are the outcomes or considered successes of this
small, young organization. The events are a result of problem solving efforts carried out
by organizational members. Viewed as successes, the events are important to both the
organization and its members. For the organization, these events represent progress
toward achieving its organizational objectives: optimizing health care. For
organizational members, the events are the results of their efforts intended to contribute to
the organization, but may also be efforts that contribute to their careers.

The events selected were consistently identiﬁed by HC 2000 members as the most
signiﬁcant achievements of the organization, thus far in the company’s history. The three
events are: (1) creating a new historical database of actual charges at all four local
hospitals; (2) offering public support for a controversial merger proposed between the
hivo largest local hospitals; (3) seeming purchasing agreements with all four hospitals

containing identical pricing schedules.

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Details of these three events are provided in this section. The next section, looks
at the same three events in relation to organizational learning. The data is organized
around these events to help increase our understanding about whether and how the three .
events may have produced learning opportunities, both for organizational members who
carried out the work and for the organization, itself. Thus, details about .what took place
in relation to each event are pertinent. Also, details of the events are based on the
perceptions of organizational participants, written documents and personal observations.
This study isolates the “actual” by describing many details. By applying the ideas behind
the four learning categories theoretical concepts are applied. Together, an interpretation
about organizational learning is meaningful.

Before interpreting the events as learning experiences, selected historical activities
and member attitudes about these organizational events are isolated and scrutinized. The
descriptions are intended to illustrate particular experiences. These experiences may
contain important learning dimensions, for the organization, especially when considering
its future, plus learning for' individual organizational members. Each event is described
in four ways: (1) Why the event was deemed necessary by the organization; (2) How the
event is signiﬁcant to the organization; (3) Speciﬁc details about the work and
experiences associated with the event; and, (4) The potential future value the event now
holds for the organization.

Event #1: Creating a new database: Knowing actual hospital charges

Identifying the need. The ﬁrst event, considered here, began to unfold early in

the organization’s history, (1993-94), but these activities did not culminate into organized

actions until 1995, two years later. This event is the creation of a new data base which

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contains actual hospital charges at all four area hospitals. This information has and
continues to prove useful for a variety of decisions being made about health care reform.
HC 2000 is credited with the creation of this very unique database; both hospital
personnel and physicians are trying to access the information. The hospitals providing the
information continue to consider it conﬁdential and thus information that HC 2000 can '
not divulge.

Many believe that this database is a ﬁrst of its kind. If the cost of health care is to
be contained or reduced, an important ﬁrst step has been to identify actual prices of goods?
and services. Most who have tried to do this in the past, found that charges, costs or
reimbursement rates (which could all be different for the same service) often contained
different variables, meaning different services may have been assigned to one procedure.
For example, the reported charge for an appendectomy ﬁ'om one provider might include
' laboratory fees; another reported charge for the same service (an appendectomy) might
not HC 2000 has created a database of “actual” hospital charges at the four area
hospitals, that contain the same variables, e.g., physicians fees, laboratory costs, medical
equipment, etc. This data is collected quarterly and individual reports are produced for
each of the four hospitals, plus a combined report for HC 2000. The four hospitals and
HC 2000 pay $1000 per quarter for this service. HC 2000 designed and now coordinates
this information system through its Data and Quality Committee. Everyone agrees that
the availability of accurate comparative charge data (ﬁ'om hospital providers) was a
signiﬁcant ﬁrst step toward health care cost containment.

Why signiﬁcant. Organizational members agree that the potential this new data

offers as a health care reform measure, has not been fully realized. The database has

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already helped produce one HC 2000 achievement (Event #3 ). While the need for
“actual” and “comparable” charge information seems obvious, organizational members
are still searching for additional ways to capitalize on the information as a problem
solving tool related to rising health care costs.

The information is considered very powerful, but its uses and applications, to
date, have been limited. Data collected over time will render the value of this historical
database even more valuable in the future. As more historical information is collected,
even greater knowledge about rate changes over a longer time will help measure change.
The need for this information is unequivocal and it is seen as a good starting point. HC
2000 anticipates the information from the database will launch the organization toward
becoming an important participant in many health care reform activities; but no one
seems to know the shape this will take.

Indirectly beneﬁcial to the HC 2000, is the intended use of this information by the
hospitals. The members of the Data and Quality Committee, all hospital professionals,
designed the database. They agree that this information should help them be better able to
“zero in on” certain procedures that contain higher charges at their own hospitals, than at
“competitor” hospitals. Committee members admit that their ability to capitalize on this
information so far, as a problem solving tool for each of their respective hospitals, has
been limited. Details of the work that led to the creation of this database is given below.

The work and experience around of the event. Activities leading up to
creating a new database of actual hospital charges was carried out by one committee, the

Data and Quality Committee. Making effective use of the information, as a problem

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solving solution, for HC 2000 was carried out by another committee, the Negotiating
Committee. The Board of Directors has only a tertiary understanding of the database.

More details about how the database has been used by members of HC 2000 is
also part 'of the description of the third event. This is because as contract negotiations
were breaking down between the Negotiating Committee and the hospital administrators,
the board intervened and wanted to know more about the data used to set the contract
prices. (See more detailed explanation in event #3 - securing purchasing contracts.)

The two HC 2000 committees have found the database uSeful in signiﬁcantly
diﬁ‘erent ways. One committee designed the database and maintains it; while the other
committee compared the data, and used adjusted values to develop a new pricing
schedule in hospital purchasing contracts. Committee members, of both committees,
were observed demonstrating a thorough understanding of the data and the information
being reported. Others reading the reports, ﬁnd the information complex and diﬂicult to
understand.

Creating the database was the ﬁrst problem-solving step that HC 2000 oﬁicially
canied out after its formation. The work was completely and unilaterally carried out by
the Data and Quality Committee. Board members refer to this as a technical committee.
And its members are peer representatives ﬁ'om each of the four area hospitals. At each of
their respective hospitals, the committee members are responsible for monitoring hospital
costs and improving the quality of health care. They were recruited by HC 2000 because
of their technical knowledge about health care costs and quality, in hospital settings.

Hospital charges represent a major portion of health care costs to employers.

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The database is viewed, especially by committee members, as a “ﬁrst of its kin .”
There is enthusiasm around the table of the Data and Quality Committee meetings.
Committee members say they have never had such good data It is accurate and
comparable. Variables that make up one charge are based on the same factors. Variables
include items like, laboratory fees, medical equipment, physician services and length of
stay. Now, the committee members/hospital quality administrators really know if their
hospital is charging less or more for the same service. With this database, they can
compare apples to apples, not apples to oranges.

'Up until now, other data and reports, would be ﬁ'om other regions of the country,
for different populations, or contained different factors. Now, for the ﬁrst time, these
hospital professionals can identify differences in charges for the ﬁfty most common
inpatient hospital procedures, (DRGs), performed at all four hospitals in the same local
area serving the same populations. The goal in creating this database was not solely to
become the basis for contracts between employers and the hospitals. The goal was also
for these representatives to determine which procedures have higher charges and thus
should be investigated. \Vrth this information, the hospitals were to begin asking why
there is a diﬁ‘erence between their own charges and the other hospitals. Though the
committee members are excited to have the data, as they attempt to make effective use of
the data at each of their hospitals, their spirits seem dampened. Though they have been
receiving this information for over a year, they admit that ways of making use of it in
ways that actually reduce their Operating costs, have alluded them. At each of the four
respective hospitals, these personnel don’t seem to know where to begin or have

encountered barriers as they set out to facilitate change.

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In the meantime, the Negotiating Committee of HC 2000 has already made
important use of this information and is moving swiftly toward another. After the ﬁrst
four quarters of information had been collected, (1994), the database was used to create
standard (lower) prices for the hospital services. Identical prices, based on this actual
charge information, were negotiated with all four hospitals. Everyone agrees, these
purchasing contracts are the major accomplishment of HC 2000, to date. (Event #3)

The contracts are intended to stimulate hospitals to reduce their costs. Because of
the contacts, all area hospitals must now charge identical prices for the same ﬁfty
inpatient services, at least to BC 2000 members. HC 2000 members represent over
100,000 lives, which is a signiﬁcant customer base to the hospitals. These contacts are
the third signiﬁcant event highlighted in this study, and thus are discussed in more detail
later. The database was the necessary groundwork that was laid for achieving the
organization’s primary goal -reducing health care costs. But the database, according to
the Data and Quality Committee members, was developed as a tool to be used primarily
by the hospital. If tue, then this achievement has alluded them.

Future organizational value. The database is a ﬁrst step toward standardizing
prices among providers, which HC 2000 leaders agree is one of the most signiﬁcant
problems with health care, today. Here is one board member’s view about the way prices
are established in the health care industy: There are too many dzﬁtrent rates for the
same services in the. health care industry which is ridiculous. Knowing the diﬁ‘erences in
charges between providers will help develop a more consistent rate stucture.

For the Negotiating Committee, three year pricing agreements with the hospitals

is deemed a signiﬁcant organizational success. As the committee takes up its next set of

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activities, negotiating standard rates with individual physicians, the information contained
in the database (which includes physicians charges) is likely to prove valuable. Again, as
the Negotiating Committee has started to discuss details of contactual arrangements with
local physicians groups, the existence of this database has become a curious subject.
Everyone wants to see it; but for now it is considered conﬁdential information! HC 2000
plans to continue to support the maintenance, development and use of this database as a
valuable information system, both for the hospitals and for the organization. This is
evidence that HC 2000 is working developmentally with providers to help eliminate
unnecessary costs and reduce prices.

How this data will help decision makers, at HC 2000 and at the hospitals, carry
out effective health care reform measures is unknown and undeﬁned, but still thought
possible. The Data and Quality Committee continues to meet monthly but still struggles
with the question of conﬁdentially of the information versus the value in sharing it among
themselves. (To date, each hospital only receives its own charge information; HC 2000
receives an aggregate of all charges.) At committee meetings, the President of HC 2000
has suggested that if they share among themselves they can use the information to point
with He explains, they should select a few procedures where their charges are
signiﬁcantly higher than all other local hospitals. Drill the data down and try to discover
where the biggest dilﬂrence are. Discuss details about the procedures with the other
hospital personnel. Then determine if the diﬂrential is for a good reason The President
conﬁrms that one good reason why charges may be higher might be that their hospital is
performing this procedure only just a high risk group. This type of investigation of

charges helps drill down to those that cannot be explained.

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This approach, or another, has not been taken by the data and quality committee.
They believe the information still leaves gaps and too many unknowns; thus. openly
sharing it among themselves is risky. They admit they are having diﬂiculty capitalizing
on this information. They admit they need to ﬁnd a better way to use the information to
inform cost cutting stategies. They currently are focused on new ways of reporting the
data, but still in a blinded manner. (Other hospital data are kept conﬁdential.) How they
will use the information, ultimately at their respective hospitals, remains obscrn'e.

The committee members decided early in the design phase, that the information
would be blinded to protect each of the hospitals. Today, they receive reports that report
the lowest charges being charged in the area, but they do not lmow which of the four
hospitals is charging the lowest rate. (Intriguing to most board members is that HC 2000
receives the information unblinded and thus knows the four diﬂ‘erent charges at each of
the four hospitals.) Committee members think unblinding the information will help them
know who to talk to, at which hospital, as a way of becoming more emcient. Druing the
recent six month period and alter several meetings, they have been unable to resolve their
concerns about unblinding the data. They fear that if they unblind this information it may
get into the wrong hands, (namely, the media), which they believe could prove
devastating to their organizations. They are stiﬂed as a committee.

HC 2000 organizational members describe the importance of this event, (the
database) as something that was needed and helpful to both their members, (ptn'chasers)
and could be helpful to all four hospitals, (providers). This database is evidence that HC
2000 is tuly committed to engaging in health care reform measures that involve more

than forcing a lowering of prices. Though the database has not become an effective way

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of helping the hospitals reduce their costs; the HC 2000 contacts have forced the
hospitals to lower some of their charges.

The signiﬁcance and result of this activity - creating a database base of new
charge information — in relation to organizational learning, is provided in the last section
of this chapter. How has the problem solving event of creating a “ﬁrst-time ever” data set
of valuable information, been a learning experience for organizational members and the
total organization? Before pursuing this question, two other events also considered
important and developmental to HC 2000 are ﬁrst described.

Event #2: HC 2000 Publicly Supports Controversial Proposed Hospital Merger

Identifying aneed. At about the same time the Data and Quality committee was
actively engaged in designing a new database, the Board of Directors was considering .
whether the recent announcement about merging the two largest hospitals in the area,
(described as a way to reduce health care costs), offered a timely opportunity for the HC
2000 organization. The board chair, at the time, had this perception: Going along with
the merger turned out to be a brilliant strategy.

The board chair describes the experiences surrounding seeming board approval to
support the proposed (and contoversial) hospital merger, as a growing experience for HC
2000. He also believes this activity gave him some valuable deve10pmental leadership
experience. (See Chapter 4) Other board members agree “that supporting the merger
increased the organization’s visibility in the community, but also its perceived power
base. Supporting the merger was just another way HC 2000 thought it could
aﬁ'ect/reduce health care costs;, but this act encompassed several unforeseen and

challenging results.

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Why signiﬁcant. The board knew that offering public support of the merger
would not directly or necessarily reduce health care costs for HC 2000 members; but
considered as a business decision, the merger oﬂ‘ered the potential of reducing costs for
everyone in the community. Offering organizational support to other health care
providers who are attempting to ﬁnd ways of reducing costs, is consistent with the
mission of HC 2000. Not foreseen however, was that by oﬂ‘ering public support, HC
2000 wOuld became involved in a controversial commrmity issue and legal proceedings.
Also, the media was actively reporting opposition for the merger, describing that the
merger would create a all-powerful, unwielding organization. The Federal Trade
Commission agreed with this view and decided to challenge the merger on the grounds
that it would create a monopoly in the local community. Thus, HC 2000 took a less
popular stance, one that enamored itself with the hospitals. While Board members are
careful to point out that supporting the merger was not a quid-pro-quo, its public support
of the proposed merger did eventually create a positive relationship between HC 2000
and the two hospitals. Finally, the leaders told stories about tense discussions among
themselves and with others, as the decision to endorse the merger was taking place.

‘ One board member, who is also a board member at one of the hospitals planning
to merge, oﬂ‘ers this perspective about the board’s endorsement: There was some
controversy on. the board whether to support the merger. I think that came out of perhaps
personal priorities within the organization. But my joy in seeing the support (for the
merger) come out of that group was . . . well just take a look at the We of health care

costs. The merger is an opportunity, even by conservative economists ’ estimates, even in

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the ﬁrst ﬁve years, to reduce costs. Whether or not HC 2000 had supported it, I support
itandthinkitisright. '

Another board member told why he supported the merger, though notes his own
distinct preferences: I have always believed in the merger of hospitals and wanted HC
2000 to be up ﬁont and forward in taking a positive position We supported the merger
upon the assumption that this reaﬂ‘irmed our commitment to cost reduction . . over 150
million dollars in three years. I really wanted to see an overall community hospital
where all hospitals would partake in it together. It is horrible to think that a trustee
would say that this was in the interest of the hospital not in the interest of the community.
sz vision is to have an overall board and I will work hard for that to come out of the
merger.

Though the endorsement has been questioned and challenged, HC 2000 leaders
still think this event has created for the organization an even greater ability to advance its
goals of eventually reducing health care costs.

The work and experience around the event. On September 20, 1994, HC 2000
passed the following resolution which was distibuted to its members and to the public.

RESOLUTION OF BLODGETT/BUTTERWORTH MERGER
BACKGROUND INFORMATION: There has been stong

community expression and concern about the duplication of services,

facilities and technology by area hospitals. The Kent County Area Health

Care Facilities Study (I-Iillman Commission) reported that there is an

estimated half billion dollars in requests for proposed hospital facility

constuction projects and new technology. The demand for new facilities

and technology is created by the desire of hospitals to remain competitive,

develOp cutting-edge programs, recruit physicians and be seen as

providing the latest in health care technology and service. This

competition has had the eﬁ‘ect of creating excess capacity and duplication
of services addition costs to the delivery of health care in this community.

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RESOLUTION: HC 2000 endorses the Blodgett/Butterworth
discussions to become a merged and/or more collaborative as a means of
eliminating duplication of programs, services and investments. This
would enable the two organizations to develop a synergistic partnership
that has the potential to increase the quality and efﬁciency of health
services to the community.

This resolution was approved at the September 20, 1994 meeting
of the HC 2000 Board of Directors. '

It took several months and several meetings for the board to agree to this
resolution. Every member of the board interviewed, agreed that no one totally supported
the merger, unconditionally. Also, board members tried to agree on what conditions or
limits should be attached to the resolution, but none could be reached. Yet even without
total agreement, the board proceeded to pass the above resolution. They say this was an
important way to help reduce health care costs.

Acton leading to other actions. With a diversity of opinion and thinking, the
board was still able to agree that the merger, in principle, should be supported. The board
members recognized that diﬁ‘erent members held diﬁerent perceptions about what the
merger might mean. Having a large, potentially dominant, health care provider could
create a monopoly, which could turn out to be bad for the community. But most often
business mergers mean savings, so board members thought. They supported it and then
decided to get closer to the merger plans, as a way of ensuring it would become a
positive, not negative, outcome for the community.

Aﬁerdecidingtosupportthemerger,boardmemberssﬁllhadmanyrmanswered
questions. Some board members proceeded to challenge the merger plans in speciﬁc
ways. The HC 2000 board asked the two hospital CEOs to provide a written response to

certain questions (that sm'faced during the discussions that preceded passing the above

134

resolution); and they invited the two hospital CEOs to attend a future board meeting of
HC 2000, to respond to these questions, in person. Over ten questions were posed in a
lengthy correspondence sent from HC 2000 to the two hospital CEOs. These three
questions are representative:
1. The two hospitals already maintain signiﬁcant cash reserves and annual
surpluses. With the eﬁiciencies promised through the merger, couldn’t the

merged corporation offer a price rollback?
2. How will prices be contolled after the seven years, considering the fact that

the merged corporation will have the dominate position in the market and the
key high tech services?

3. In a news article it was stated that the merged corporation would provide
“qualiﬁed” plans, and “equalized” prices. What is the deﬁnition of
“qualiﬁed?” Who will make sure that legitimate competitor will have access
to the pricing?

While the board supported the principle behind the merger, members proceeded to
study the issue and investigate what the merger might really mean with regard to
prices/costs. The board encomaged discussions on the subject and sought answers to
speciﬁc questions like those above. Very unexpectedly, HC 2000 then became involved
in the merger in other ways. The Chair of HC 2000 (as the organization’s representative)

was asked to testify before the US. Distict Court of Appeals, as part of the FTC
challenge to the proposed merger. The position of HC 2000, and its motives for
supporting the merger, were scrutinized and challenged by the judge. The judge’s
opinion, coming over a year alter the testimony was taken, (available in January, 1997),
resulted in a ruling that allowed the FTC challenge to continue in the courts. Several
quotes tom the HC 2000 Chair are included in the judge’s opinion. He questioned HC

2000’s motives:

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“Business, especially small business, is leery of a health monolith.
Eventually the board of HC 2000 voted to support the merger, but this
support was sustained only as the result of the hospitals’ agreement to
make certain immediate pricing concessions — concessions that may have
satisﬁed a majority of the HC 2000 board but do not necessarily satisfy the
majority of the organization’s membership, which was never polled to
determine its view of the merger and which remains divided. . . . Mr. K
(chair of the HC 2000 board) conceded that he “would have opposed the
merger if we were not able to contact, yes. Ironically, HC 2000’s ability
to secure pricing concessions torn Butterworth was a function of its
ability to threaten to do business with Blodgett; health care purchasers
dissatisﬁed with Butterworth’s post—merger pricing or performance will
have not such Option.” (Page 13-14)

The judge’s opinion goes on to identify that the HC 2000 attitude is not
necessarily consistent with other business perspectives:

As Mr. K . . . stated at the hearing, “Certainly competition does
not work in health care. And, “I don’t think competition has served to
decrease cost at all; if anything, it has worked the opposite direction in
healthcare.” By contast, Mr. S . . ., Chairman of the Grand Rapids
Chamber of Commerce, opposed the merger because “the ﬁee market is
the best container of prices in the long run” and “the merger would create

too big of an entity that would have too much power which would not be
in the long term, best interests of the community and particularly small

employers.” (page 14)

. The decision to support the merger created questions about HC 2000’s motives.
Board members steadfastly maintain that they supported the merger because it oﬁ‘ered the
prospect of bringing down health care costs for everyone, and was not done as a quid-pro-
quo. The merger would, in theory, reduce duplication of services and provide greater
eﬁciencies through greater quantities of services. Board members saw the beneﬁts
outweighing the risks, though recognized that the power of this very large health care
entity would have to be monitored and kept in-check. Also, the board did not intend to

just endorse the merger and then walk away ﬁ'orn it. The board intended to become one of

136

the watch-dogs of the new health care system in the area. Today, HC 2000 is busy
investigating additional ways of integrating itself in the merger activities. Mainly, they
are tying to secure board seats on the new boards of the merged entity.

Future organizational value. After these subsequent experiences ﬁom
supporting the merger, HC 2000 still stands behind its decision. Though the judge
disagreed with the HC 2000 view, in his January, 1997 opinion, where he declares that
“neither the courts, nor defendants eﬁciencies discussion shows that the merger would
beneﬁt competition and hence consumers.” Thus, the injunction by the Federal Trade
Commission to ty to stop the merger was allowed to go forward in the com system. But
an interesting twist of events, announced just three months alter the judges opinion,
represents a fairly bold step for the hospitals. They plan to proceed with the merger and
not wait for a court ruling. (Some speculate this is because they expect to prevail.) They
say the court process could take years. If a ﬁnal ruling declares the merger a violation of
antitust laws, they will then take whatever steps are necessary to split the two entities.

HC 2000 board members were well aware of the hospitals’ plans to move
forward. HC 2000 has asked to have a representative on the board of the merged
organization. They made the request as an organization that represents the interests of
both business and community groups. They plan to monitor, not rubber stamp,
organizational activities. Announced in the spring of 1997, there will be two HC 2000
board members sitting on the board of this new health entity (the merged hospitals).
Though they will primarily represent their own respective organizations, they have
indicated a commitment to HC 2000 to serve its interests representative also. Also, the

vice chair (former chair) of HC 2000 has been appointed to the ﬁnancial advisory board

137

of the new health system, speciﬁcally as a HC 2000 representative. All three'HC 2000
members, who will be on the new boards of the merged entity, have pledged (at several
HC 2000 board meetings) that neither employer needs nor hospital needs will take
precedence over community needs. They plan to engage in leadership responsibilities
that will shape this new (very large) health provider tour a community perspective.
Thus, HC 2000 is continuing to remain close to the merger activities and to oﬁ’er
business and community perspectives to the decision making processes. Board members
see this as a future problem solving activity that HC 2000 will continue to pursue.
Though this activity may not directly aﬁ‘ect the prices members are paying for health
care, at least for now, this work may produce lowered health care costs and improved
quality, . . . achieving in this way, a primary goal of HC 2000.
In the 1996 annual report, the immediate past chair describes how this event is
important to the future of HC 2000:
As the probability of a Butterworth/Blodgett merger increases, the
role of HC 2000 becomes even more urgent. We must continue to provide
a signiﬁcant voice in the development of this new organization as it
evolves. Our continued participation will serve to secure the two
hospitals ' initial pledge to ﬁeeze prices for three years and eliminate cost
shiﬁing between payers. .
In the next few months HC 2000 will expand its community
partnerships to render an even greater impact on the quality and cost of
health care in our community. It will take all of us, actively working
together, to add to our past accomplishments.
The new president of HC 2000 reiterates (in his statement in the same annual
report) how this type of community involvement is important to HC 2000:
If value is our mission, then partnership is our method . . . In this

emerging system, providers are accountable for delivering value to all
purchasers in the community. We are more than employers uniting to

138

better serve our business interests. Rather, our interests are better served

by holding providers accountable for delivering higher value to every

child, man and woman in our community.

Endorsing the merger (the second signiﬁcant organizational event) has created
new opportunities and new directions for BC 2000. It also presented an interesting turn
of events and rmforeseen experiences for HC 2000. HC 2000 members look back upon
all the questions that went into their decisions, and view this eVent as very successful and
beneﬁcial to HC 2000. The challenges included tying to negotiate contacts with the
hospitals while endorsing their merger plans. The judge, and others, questioned, whether
this endorsement was a quid-pro-quo. Was HC 2000 offering support in return for
getting new direct purchasing contacts? Board members say there were no stings
attached to their support. They do admit the endorsement created a dialogue and positive
relationship with the hospitals, which certainly didn’t hurt their negotiations.

The creation of a new data base brought new information to the organization’s
’ decision making processes. Supporting the proposed hospital merger enhanced the
visibility and perceived authority of HC 2000 in the health care industy. These two
events probably laid the groundwork to help HC 2000 achieve its most signiﬁcant
achievement to date: seeming standard purchasing contacts with all four hospitals. All
three of these events and their signiﬁcance to organizational learning. are presented in the
next section. Next, a description about the need for, importance of the activities
surrounding securing direct purchasing contacts, is provided. These contacts contain

identical prices for all four hospitals, and are the only event (of these three) that directly

139

reduces some members’ health care costs. Thus, this event is viewed, by most, as the
most important achievement in the history of the organization.
Event #3: Purchasing Contracts with hospitals: Savings to organizational members

Identifying a need. Securing purchasing contacts with all four area hospitals is
the most signiﬁcant outcome for HC 2000 and was accomplished in the spring of 1996.
These contacts m even_tuall_y reduce the cost of health care for HC 2000 members. The
hospitals have agreed to gradually lower charges to HC 2000 members, over the next
three years — charges for ﬁfty inpatient procedures (DRGs). The gradually declining
charge amounts are identical at all four hospitals. The contacts cover over 70% of all
inpatient procedures provided by the hospitals. HC 2000 has managed to seem identical
contactual arrangements at all four hospitals, which many believe has never been done
before and is an eﬁ‘ective solution for several reasons.

First, in the health care purchasing dimension of the industy, these contacts are
considered a “new” type of health care contact, i.e., a direct pm'chasing contact with
providers. These contacts help reduce the need for third party administators or
insurance companies to administer billing and payment collection process. This
elimination of the “middle-man” potentially reduces costs even beyond what the
gradually declining pricing schedule provides. (Currently the contacts create an
additional, not substitute billing process.) Also, having identical prices and contacts
with all four hospitals, creates a scenario that encourages hospitals to compete on quality,
not price or eligibility. These contacts are a relatively recent success for HC 2000 the

organization; thus organizational members are still speculative, but hopeful, about the

14o

beneﬁts it can bring the organization’s members. This achievement has come four years
after the organization formed.

Why signiﬁcant. These contacts are an eﬁ‘ort not only to reduce costs but to
change the industy. The chair of the Negotiating Committee succinctly describes these
agreements, in the 1996 annual report:

In 1996, HC 2000 reached a signiﬁcant milestone by securing
contactual agreements for a ﬁxed fee schedule with all four acute care

hospitals. These contacts guarantee standard pricing for 50 inpatient

admission categories, those which account for an estimated 75% of all

inpatient charges.

The Negotiating Committee is a highly motivated group of people with one
primary pmpose: to purchase health care at a lower cost for their companies (and HC
2000 members). The contacts are a ﬁrst direct step in that direction. But, these contacts
are also designed in such a way that they should help guarantee (or improve) the quality
of care. This is how they believe such to be tue:

HC 2000 represents a large customers base (100,000+ lives). By year three,
(1999), the contacts force the hospitals to charge some of the lowest rates ever charged
for the ﬁfty most common procedures performed at their hospitals. HC 2000 members
believe that hospitals must operate at lower rates, and will have to cut costs to do so. No
longer will they have other payers to shift costs onto. In the past, hospitals (and other
providers) would simply shift the cost to other payers when one customer (or payer)
demanded/negotiated lower prices. Now there is no major payer left to cost shift to, since

the business payers were the remaining purchaser of services not controlled by federal

mandates or insurance rules. Medicaid and Medicare rates are set by the government;

141

large insurers like Blue Cross Blue Shield have the power to contact at low prices. In the
past, businesses, self-insmed companies or smaller insurance companies, (many who
represented HC 2000 member companies) ended up paying the higher (cost shifted) rates.
With these contacts, the hospitals now have no groups to shift their costs (higher prices)
onto. HC 2000 members believe hospitals are now forced into the position of having to
reduce costs (in three years) or they are likely to ﬁnd themselves in serious ﬁnancial
touble.

The contacts may force lower charges, but given the identical/standardized rates,
the preservation or enhancement of quality of care is possible. Now some charges are the
same at all four hospitals. This means that those covered by the contacts (employees and
their families), can now select a hospital for reasons other than price. The rate charged
for a particular procedure at one hospital is now equal to what the other three hospitals
can charge, at least for ﬁfty inpatient procedures. Given this fact, these contacts
hopefully create the eﬂ‘ect that patents (and physicians) will select the hospitals
providing the best service. These identical pricing agreements among “competing”
providers, are supposed to be an incentive for hospitals to preserve and improve the
quality of their care while reducing costs. Designing a cost cutting stategy that considers
quality of care, was clearly one of the objectives of HC 2000. HC 2000 describes this
eventasagoodway ofopt'mizing healthcare-seeking highestqualitycareatthe lowest
possible cost.

The work and experience around the event. Most every HC 2000 member
agrees that the pmehasing contacts are an important milestone for HC 2000. Paving the

way for accomplishing this feat, was the database created by the Data and Quality

142

Committee. (See event #1 of this study.) Because of the new database, the Negotiating
Committee had the necessary information to create, with great conﬁdence, a fair pricing
schedule, for all hospitals.

The Chair of the Data and Quality Committee chair describes the committee’s
contibution to the organization and to the community, in the 1996 annual report:

In 1996, the development and implementation of a common

database for comparing inpatient information proceeded in earnest. One

ﬁrllyearofdatahasbeencollected,providingasubstantialbaseof '

information for tacking the key price, quality and performance indicators

of our four acute care hospitals. . . . With this system, and in partnership

with the hospitals, HC 2000 has eﬁ‘ectively developed the foundation for a

comparative analysis system uncommon in the nation. The beneﬁts to the

community will be immense.

It is important to note that these contacts do not contain the lowest prices in the
marketplace. The Negotiating Committee says they approached their work as partners in
the community. Once HC 2000 had one year of actual data on hospital charges, available
in early 1995, the Negotiating Committee began designing the direct purchasing
contacts. The Negotiating Committee is made up of ﬁve beneﬁts administators from
ﬁve large businesses in the local community. These committee members are experts in
purchasing health care for their companies, just as the Data and Quality Committee
members are experts on hospital quality and cost saving initiatives. Negotiating
Committee members are responsible for tying to bring down the cost of health care in
each of their respective companies. Actually, their work at HC 2000 can be considered
closely related to their company responsibilities. (Thus, they take their work at HC 2000

very seriously and as a part of their job responsibilities. Also, they are anxious to be

143

successful at HC 2000 or back at their primary companies, since they are the individuals
responsible for signiﬁcantly reducing company health care costs!)

While the Data and Quality Committee seemed to produce this new database in an
orderly and fairly predictable way, the activities of the Negotiating Committee have not
been steady nor predictable. The pricing schedule was developed by committee members.
In their ﬁrst attempt at negotiating contacts with several hospitals, the committee found
themselves “shut out” by the hospitals. The hospitals refused to negotiate with them;
then (temporarily), the HC 2000 Board of Directors withdrew its endorsement/approval
for the committee to proceed with negotiations. Before looking at these unanticipated
diﬁculties, that were eventually overcome, details about the contacts and the pricing
schedule are warranted.

Warme- Turning asaintothe 1996 annual report.
details of the agreements are as follows:

0 ﬁxed prices for three years

- billing at the negotiated price, eliminating the cost of a third
party ”PM“

o ability to coordinate contacts with existing PPO arrangements

0 improved process evaluation and hospital eﬁiciencies

The prices were determined torn four quarters of actual charges, at the four area
hospitals. The pricing philosophy was established by the organization’s founder and is

depicted graphically below:

144

HEALTH CARE PRICING PHILOSOPHY OF HC 2000

Graph 3.1

DRG Price‘ Neg Price
Hospital A 200 100
Hospital B 75 100
Hospital C 155 100
Hospital D 85 100

'Hypothetical example of varying amounts for one procedure (DRG)

 

COMMUNITY-BASED PRICING MODEL

5200
$180
8180
3140
“20 —DRG Price']
3:: +Neg Price '

 

    

l Hospital A Hospital B Hospital c Hospital D

 

The graph shows how the method of pricing could actually set a higher price for
some hospitals! Negotiating Committee members have recognized there are “winner(s),”
i.e., hospital(s) might ﬁnd that a contacted price (of the ﬁﬁy) might be higher than what
they charged in the past. Committee members say that the winner(s) shiﬁed between all
fort hospitals depending on which DRG considered. In other words, there did not appear
to be any one hospital that was consistently charging the lowest prices for all ﬁﬁy DRGs.
(This is described by HC .2000 leaders as another form of price shifting, i.e., setting prices
not necessarily based on direct costs.) The contact prices, in all cases, never set a rate

below the lowest rate being charged. The four hospital rates were adjusted according to

145

diﬁ’erentials in the number of times the procedures were performed at each hospital and
other severity factors identiﬁed, such as average age. The contacted prices were ’set at an
“adjusted average” point. (see graph) Thus the standardized prices were never below the

. lowest rate charged (from among the four hospitals) and might be above some rates
already being charged.

These are three year contacts with} prices gradually declining each year. Multi-
year contacts are well known in business and industy. This gives suﬁcient time to the
suppliers (in this case, the hospitals) time to implement and realize actual savings. This
idea, as many members describe it, is exactly what happens in their own businesses. For
example, many of these leaders represent companies who are suppliers to other
companies. When their “customers” demand lower prices (or else they will buy from
someone else), the companies often negotiate contacts that reduces prices over a period
3 of time. Then they have to get costs out of their systems. Either you deliver your product
or service at the lower price, and still make a proﬁt, or you will not stay in business. HC
2000 leaders applied this experience to the hospitals by demanding lower prices in three
years; thus giving the hospitals time to ﬁgure out how to get costs out of their system.

One board member remembers this about setting the contact rates: We were
trying to lower health care costs and yet ensure survival and success of all of the health
care providers. Those were the goals. Mainly - fair pricing (and not less pricing or
worst pricing than what other people out there had) — over a three year period so that by
the end of the three years we had done a job (of getting prices) very close to other

discounters.

146

Failed negotiations with the hospitals. After the contacts were designed, the
committee members secured authorization tom the Board of Directors to begin
negotiating these contacts with the area hospitals. The board instucted them to maintain
the position that identical prices would be agreed to for a_ll_ hospitals. The board believed
that if HC 2000 attempted to negotiate the best price possible with each hospital,
separately, resulting in diﬂ’erent prices at diﬁ'erent hospitals, they would not achieve the
goal of preserving quality while bringing down costs. Identical prices meant that people
covered by the HC 2000 contacts would not steer their business from one hospital to
another on the basis of price. This non-price competitive environment should force the
hospitals to compete on quality and service, hopefully improving both.

After two initial meetings, between HC 2000 representatives and hospital
representatives, unexpected turmoil arose. First, the hospital administators were
refusing, very politely,.to negotiate anything with BC 2000. Also, it seems that one HC
2000 board member, who is also a member of a hospital board, was conﬁonted by a
hospital ﬁnancial oﬁicer. He was told that HC 2000 was tying to “cripple” the hospital
by demanding extremely low prices!

As the story goes, this board member was taken by surprise with the negative
reaction coming tom the hospital administator. Initially the board member accepted the
hospital administator’s assessment that the prices were too low and agreed to stop HC
2000 ﬁom proceeding. The board member contacted the chair of the HC 2000 board and
suggested the board rethink its position about the contacts, and the prices.

Several board members remember this time and describe it as a very interesting

(and educational?) time in the organization’s history: Our discussions and negotiation

147

processes were a diﬂ'erence inform rather than in substance. Most of the (board)
members wanted to make sure what was happening. H. (the board member who was
approached by the hospital ﬁnancial oﬁicer) is a very non-conﬁontational We of person
and there was a certain amount of conﬁontation in the negotiation of the hospital
contracts. He didn ’t like that. Another board member is a very strong supporter of “X”
hospital and i think he found diﬂiculty with the idea that Xhospital found the HC 2000
negotiations uncomfortable. If he hadn ’t retired I think he might have quit the board
because of that philosophical disagreement. 1 have a great deal of respect for him and I
like him and I understand

The discussions at board meetings were tense. The HC 2000 President, at the
time, depicted times when the organization was in jeopardy. If the board could not agree
to this type of problem solving approach, then the organization’s ability to reduce health
care costs, was in jeopardy so the President believed He thought that HC 2000 needed
to pressure providers into reducing their prices, which in turn pressured them into
creatingrealcost savingmeasures. These contacts were admittedlyanewconceptanda
ﬁrst attempt at tying to carry out it’s mission. The organization’s futtue rested in the
hands of the board of directors. Whether or not they would allow the Negotiating
Committee to proceed was a critical part of the organization’s futme.

Another consideration, beside the need to reduce costs, was the fact that several,
not just one, HC 2000 board members were also members of the various local hospital
boards. Was their membership in HC 2000 a conﬂict of interest? As HC 2000 tied to.
aﬁ‘cct hospital pricing, would that mean that board members would have to chose

between serving on the board of the hospital or HC 2000? Even today, there is still no

148 '

agreement on this question. The decision to pursue the hospital contacts eventually
caused two board members to resign ﬁ'om HC 2000, because they believed their hospital
board positions was a conﬂict of interest; they chose the hospitals over HC 2000. One
board member resigned from the hospital board to remain with HC 2000; and three board
members continue serving on two boards -HC 2000 and a local hospital board.

Eventually, the board did “authorize” and “help” the Negotiating Committee with
their negotiations. One board member’s recollection of the discussions about this decision
to procwd is a telling commentary about what occurred: We had tons of meetings about
it. We would meet individually with people who were strongly} one way or another. We
allowed disagreement to occur at the board and recognized we wouldn ’t necessarily all
agree. But eventually we got everyone to see that there was a way of dealing with the
hospitals. . . . I think the reason we got the contracts, though, was we came on very hard
with the hospitals, dealing with them exactly as we said we would We would say, “We
want to partner and collaborate. We are not trying to hold anyboay hostage here. What
we are trying to do is get the best price for our companies and these are prices that in no
case are they less than the reimbursement that you are now getting from Blue Cross Blue
Shield Medicare, Medicaid or another discounter operating in the marketplace. You
should not object to this, or else you should stop giving those discounts to somebody else.
That became kind-of our theme. We worked very slowly with the hospitals. It. took us a
good year!

Future organizational value. HC 2000 now has this important organizational
success that it can and has held up to its members (and prospective members)... HC

2000 seemed standardized (identical) purchasing agreements with all four hospitals that

149

creates a consistent (and sometimes lowered) pricing schedule for its members. (Some
believe this is a “ﬁrst” in the industy anywhere in the county.) From this experience,
HC 2000 now looks to pursuing similar contactual arrangements with physicians. They
believe the problem solving method has merit and application in other arenas.

The hospitals were the ﬁrst type of provider “targeted” by HC 2000; the
physicians are their next. From among the many diﬂ'erent types of health care providers,
the hospitals were selected ﬁrst because there was only a total of four. The physicians are
next because they are viewed as Q most important part of the health care cost/quality
equation. The Negotiating Committee believes that costs in relation to quality should
ultimately be determined by the physicians in consultation with the patients. The current
pricing system-does not allow this to happen; even the doctors agree. Too often what is
covered by insurance dictates what a physician will do. HC 2000 plans to help change
this, at least locally.

There are other types of providers besides hospitals and physicians, e.g., ,
laboratories, medical equipment suppliers, and pharmaceuticals. Providers number in the
hundreds or thousands, just in the local area. For example, there are over ﬁfty testing
labs in the area, hrmdreds of pharmacies, and thousands of physicians in the local area.
The Negotiating Committee members determined that the hospitals were a manageable
group of providers with which to start, (and gain experience). HC 2000 wanted to see
what was involved with intervening and attempting to bring down the price of health care
by dealing directly with the provider rather than negotiating with through insm'ance
providers. This is called direct purchasing. Now, they are engaged in discussions about

direct purchasing with six area physician groups. By most estimates, these groups

150

represent about half of all physicians in the area. The remaining physicians, not
represented by these organized groups, remain independent service providers.

The Negotiating Committee is hard at work in 1997, ﬁgming out how to apply the
direct purchasing concept to physicians. Local physician groups say they are very
receptive to working with HC 2000. Many questions surround the shape and substance
that contactual arrangement might take between HC 2000 and physicians; but both
parties have already met several times and all have expressed a desire to work together on
this common problem. To date, the six physician groups are separate organimtions but
some have overlapping membership. HC 2000 plans to bring representatives of all six
organizations to the same table to collaborate and problem solve. Everyone believes that
whatever the outcome, this has the potential to cause a dramatic shift in the health care
industy, as it exists today.

An interesting footnote to this approach is that over the course of initial
conversations with the physician groups, excitement surrounds the increased awareness
that HC 2000 has collected actual hospital charge information on all four hospitals. (This
includes their own (physician) charges, which they say they have never seen in
comparison to the other physicians.) They are anxious to get this information, but for
now HC 2000 considers it conﬁdential and, thus, not available.

Before interpreting these three events in relation to organizational learning, (next
section), a few ﬁnal observations about the organization are presented.

HC 2000’: Historical and Developmental Events
HC 2000 has been operating for over four years. Cpinions about future prospects

of the organization, have ﬂuctuated during the six months while conducting this study.

151

Yet, in spite of unstable leadership, public criticism and being shunned by certain
community organizations (hospitals), the organization has survived.

There are three signiﬁcant events for the organization. First, HC 2000 can take
credit for facilitating the creation of a new database that brings new and potentially useful
information to the table for making decisions about reducing health care costs. Second,
HC 2000 has attempted to provide a business perspective to help inform and guide a
major community event - the possible merger of the two largest area hospitals. The third
signiﬁcant event is most signiﬁcant for this business coalition. The acquisition of signed
contactual agreements between all four hospitals that establishes identical prices among
them and attempts to lower some health care costs while creating an incentive to improve
quality.

These events surround many leadership and organizational activities that are now
looked at interpretively. These three events are now studied to determine how, if and why
learning opportunities may have been present for organimtional members Ed. the
organization Have circumstances surrounding these events stengthened the organimtion
andin so doing, createdabetter, stonger future? Havetheseexperiencesbeen
developmental experiences for the organization? Such considerations, and other details
about particular events and experiences, related” to organizational learning are now
provided. These considerations are discussed according to the four learning categories,
and organizational learning elements, presented in chapter two. It seems that HC 2000 is

learning how to succeed.

152

INTERPRETING ORGANIZATIONAL EVENTS AS LEARNING
Introduction

HC 2000 was created for the purpose of learning how to solve a complex
problem. For those creating this organization HC 2000 was viewed as addressing a
national problem with a local solution. No local solution(s) were speciﬁed at the time the
organimtion formed; yet leaders believed that viable, signiﬁcant solutions were possible
at the local level, and a coalition group could identify them better than individual
cOmpanies. -

Since it’s formation, HC 2000 has implemented several processes intended to
move closer to optimizing health care, locally. A thick description of each of these
events is formd in the previous section. Now these events and experiences are considered
in relation to organizational learning. Did organizational experiences, attached to
implementing important organizational activities, become learning experiences? To
answer this question, ﬁrst the four learning categories, which have been inspired by
organizational theory and organizational research, as possible features of organizational
learning, are reviewed below. Then, these categories are applied to the organizational
experiences, just presented. In this way, featrues of organizational learning are
considered.

Four Learning Categories to Study Organizational Learning

As described in Chapter 2, the conceptual framework developed in this study

(referred to as learning categories) guide the interpretive portion of this case analysis.

They are:

153

LEARNING CATEGORIES

Table 3.1

 

CATEGORY/ ACTIVITY OUTCOME ENVIRONMENT VALUE

 

 

UNIT
ORGANIZATION Excitement for Afﬁnity for Encouragement or Favoring
discontinuous complexity to integration into community-
and non-linear achieve the multi-layered based values
activities outcomes environments over proﬁt
motives

 

 

 

 

 

Framing the organizational data, as described in Table 3.1, helps facilitate our
understanding about organizational learning. The statements from the leaders,
information from the written documents and the investigator’s observations are all
included in this interpretive section. Which activities have been discontinuous non-
linear, unplanned? Have these activities lead to organizational development? New
knowledge? New actions? New solutions? How have organizational members
responded to interruptions, reversed behaviors, and other unpredictable events? These
types of questions are attached to this ﬁrst category.

. A second area of interpretation looks for complex outcomes. Did organizational
members shy away from or avoid complex information in their problem solving activities
or in shaping an outcome? Did they attempt to problem solve by simplifying. parts of the
problem? Ifnot, how have they integrated complexities into their actions? Have they
beneﬁted from doing so? In what ways?

The third category, considers whether there were dynamic or overlapping systems
in which to carry out their organizational work. Have either internal or external layers,

e.g., groups or organizations, been important to both activities and outcomes? Activities

 

154

that involved other groups, other than the ones directly responsible, could be readily
identiﬁed. If the board was taking up the questions and the work, how and when did the
committees or outside organizations become part of the work? Did the work become
stiﬂed or extended when it was carried beyond the initiating group? Did additional
bureaucratic layers enhance learning opportunities?

Finally, the fourth category guides the analysis to ask when, or if, community-
based values were part of these important organizational events. What motives or values
could be recognized and associated with the events? Did a social perspective seem to
create new understandings or bring forth new ideas and directions? As Bennis points out,
if leaders place a single-minded emphasis on proﬁt and personal gain then social learning
is reduced and so too, individual learning is encumbered.

This section studies the data and looks for examples of experiences that were: (1)
discontinuous, or non-linear; (2) favored more complex outcomes; (3) integrated
identiﬁable hierarchical or organimtional layers; (4) and contained amrmations of
community based values.

. This ﬁ'amework guides the analysis about when, how and whether HC 2000
organizational experiences and outcomes, have involved organizational learning. In this
way, can we gain a better understanding about the meaning and value ofparticular
organizational experiences? Can certain theoretical eonstucts about organimtional
learning help inform our understanding? How, if and why does organizational learning
take place in the workplace, at least as a part of the HC 2000 organimtional experiences?

Though generalizations about organizational learning are not attempted here, the case of

155

BC 2000, is used as a “proving ground” for applying certain organizational learning
concepts.
An Interpretation about HC 2000 as a Learning Organization

Before performing a close inspection of several activities according to the
learning categories, a reminder about the purpose of HC 2000 is ﬁ'uitful. HC 2000 was
formed to deal with a very complex problem — to optimize health care. This business
solution, via a new organization, was considered one way of atempting to manage a
complex national problem, at the local level. Members of HC 2000 soon discovered that
in the absence of having known solutions, dealing with this problem and creating new
solutions, even at the local level, was ﬁlled with uncertainty and many pitfalls.
Organizational members were really not surprised about this - that the work proceeded in
tmexpected ways. They all began to realize there was a lot to learn to succeed.

This study is less concerned with how much the organization has learned about
the health care industy and more concerned about whether the organization has become
more eﬁ’ective and better at being an organization. What learning has taken place that
has contibuted to future organizational success? Solutions are being pursued by BC 2000
from an inﬁnite number of choices. Everyone seems to know that the leaders and the
organization still have a lot to learn before being signiﬁcantly successful. Such solutions
are viewed in the long term.

Several leaders oﬂ‘ered interesting perceptions about the organization: The
interesting part was that we got a group of companies together with an initial notion that
we should get enough heads together, plus to gather enough volume to gain some kind of

buying leverage. What became apparent was there was a much more subtle relationship

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to be worked out with the hospitals. There were diﬂ’erent levels of understanding among
the board members, who were people on hospital boards, about what hospitals charge
and what goes into making up their costs. I would say that the thing that popped up right
away was the challenge of ﬁnding the approach that was up ﬁont and clear enough
abOut what we were trying to do. We can ’t even get at the data. We need a system to do
that. Then there was the stage where we needed to understand how do hospitals work?
And how are they working with healthcare coverage providers? What are the
distinctions between the HMO ’s and the straight coverage and how is that the costs are
shared? Originally, we wanted to put some good heads to the issue of ﬁguring this out.

Another board member describes HC 2000 in this way: I think 1 am trying to
describe the uncontrollable dynamics in the very uncomfortable situation that we are in.
We are reacting to an unstructured dilemma and we need some new ideas. . . . We need to
continue to accumulate a database which becomes more valuable with the more data that
they have. The. longevity of the data. accumulating the data is doing the right thing.
Also we need to encourage the medical community to use more intelligent ways to brow
what the doctors and the hospitals practices are. . . . Frankly, I don 't think the health
care industry is any more guilty of being ill—structured or more complex than any other
industry. Its large, complex, and rapiﬂy changing which requires great amounts of
research and learning. But so too are other industries. The challenge to HC 2000 is to
grow it and even become a regional organization. I truly think the ﬁtture of this area is
regionally.

And ﬁnally, another board member sees the development of HC 2000 in this way:

We are creating a space that is a work environment; that ’s a whole lot diﬂ’erent than

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saying I ’m charging this team up over the hill and I’m the point guy. We are creating the
right environment. It ’s not about knowing what to do, its about creating an environment
where people have the ﬁeedom to try something and to fail, and try again. And to have
positive interpersonal working relationships that create a sense of propose about why we
need to do this.

' Thus, HC 2000 needs to be a learning organization.
Interpretation of Events
Event #1: A new database: New information for decision makers

Creating a database of actual hospital charges provided new, valuable information
. that a variety of decision makers consider important as they attempted to reform health
care.

Weretheprocessesusedtocreatethedatabase,orexperiences gainedfromusing
it, educational? Was creating the database a collective learning process for the
organization? Was using the database, as a problem solving tool, helpful in future
organizational activities? To answer questions like these, the experiences and outcomes
are examined in relation to the four organizational learning categories (intoduced in

Chapter 2, and brieﬂy described above).

 

 

 

 

 

 

Table 3.2
Event #1 - Designing & using a new database
ORGANIZATIONAL LEARNING CATEGORIES
ACTIVITY OUTCOME ENVIRONMENT VALUES
Discontinuous Aﬁnity for Multi-layered Community Values
Processes Complexity environment
' Designers: no Designers: no Designers: no Designers: probably no

Users: yes Users: yes Users: yes Users: yes

 

 

 

 

 

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Activities: Discontinuous processes. Based on interview data primarily, the
development and design of the database was a linear, well-planned activity carried out by
the Data and Quality Committee. The variables used in the database were readily
available to the committee. Software options were investigated and committee members
found only one that met their needs. The costs of software and information services was
shared ﬁve ways, between the four hospital representatives and HC 2000. Quarterly
reports would be received. This design phase took about six months.

The Negotiating Committee, on the other hand, unexpectedly, found they had to
repeatedly justify how they used the data to both HC 2000 Board members and the
hospitals. At ﬁrst, the Board initially approved the Negotiating Committee proposal with
little contoversy and then hospitals would not even discuss the possibility of direct
contacting. Later, questions prompted more questions and new concerns for everyone
concerned. Committee and Board members admit that this process took much longer
than expected and had several sm'prising turn of events.

Outcomes: Amnity for complexity. The graphs, tables and charts produced
from the new database identify numerous variables (e.g., length of hospital stay,
pharmaceuticals, physician charges, medical supplies, etc.). Fifty different procedures are
reported, DRG’s, in a form similar to standard billing classiﬁcations. The data is .
aggregated, and severity-adjusted according to variables, such as number of deaths per
procedure and number of procedures performed. For the Data and Quality Committee
members, this information is readily understood, but seen as complex. They admit that

for others, not as close to the data, would require explanation. They believe that by using

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the many variables, though, the data is more accurate and more useful, especially to
themselves. And this was their primary objective.

The Negotiating Committee used the data to guide pricing decisions. Today, they
cannot recall exactly how the adjustments were calculated, and admit to a limited
understanding about £1 the variables. They feel conﬁdent, though, that the adjusted data
constituted a solid base for setting new prices and that the data will be helpful in their
future work. For HC 2000 to have this type of data, according to most members, has put
the organization in an enviable position. No one else has this type of comparative data . ..
not even the hospitals.

Environment: Multi-layered dimensions. The Data and Quality Committee
members contolled the entire design process and planned around meeting their own
needs. They are now responsible for maintaining and improving the database, and
modifying the reports they receive. HC 2000 (the director) can and has requested
different reports. There does not appear to have been any intervention by others, nor
considerations made about other potential users of the information, dtuing the design and
development phases. The Data and Quality Committee did not work in a multi-layered
environment and continues to work in relative isolation.

In late 1996, the Data and Quality Committee learned that the database had been
used for establishing contracts at their hospitals. They seemed shocked and surprised at
this news. They had not known (nor intended) that HC 2000 would use the information
for this purpose (although the President says they were told). Even so, they continue to
try to utilize the information for its intended purpose - to reduce costs at their hospital

settings — but, alas, unsuccessfully.

160

In the meantime, the Negotiating Committee used the database, developed a new
concept toward health care pricing, and secured three year signed agreements with the
hospitals. Next they plan to use the data to help negotiate new prices with physicians in
the area. Their work was challenged by two layers — internally, by the HC 2000 board of
directors, and externally, by the hospitals. They learned from their experiences in ways
that stimulated them to proceed with future contacting eﬁ‘orts. These experiences have
given them the knowledge and conﬁdence to proceed toward additional solutions. The
Negotiating Committee is actively working on a new approach, while the Data and
Quality Committee continues to work toward their original (unrealized) goal
Optimized health care at their respective hospitals.

Values: Community values. While this was a cooperative process between
committee members, who represent the fort area hospitals, it now appears that the work
was carried out mainly for individual purposes. (Individual hospitals, that is.) Some
committee members continue to work toward sharing the comparative data at each of
their respective hospitals. They still do not focus on hOw the data might beneﬁt HC 2000.
They do not hold a community perspective about their task, only an individual
organizational perspective.

The Negotiating Committee used the information to create a commrmity pricing
schedule (identical prices at all four hospitals). The contacts they produced contain lower
prices, but fair prices, for the whole community. The accuracy of the data facilitated their
success. Having this community perspective seems to have produced learning.

Overall interpretation about organizational learning from this event. None of

the four features of learning appear to have been present or signiﬁcant dming the time

161

that the database was being designed by the Data and Quality Committee. In contast, all
learning dimensions help explain features of learning for the Negotiating Committee in
relation to this event. .

It is interesting to observe that today the Data and Quality Committee, after three
meetings in four months, continues to stuggle with how to report the information and
how it might be used. Is this because their experiences dming the design phase were not
learning experiences? The Negotiating Committee, in the same four months, has
contacted six physician groups and discovered that direct contactual arrangements with
physicians in the area is not only possible, but very likely. This is information they did
not have at the onset of this study. New contacts and new partnerships are on the
horizon for HC 2000. Will these next efforts be facilitated from their previous learning
experiences? It seems that for some members of the organization, this event has been a
valuable learning experience that is stimulating new actions for the organization.

Does this suggest that the absence of learning in the design phase and its presence
during the utilization phase, means the absence and presence of organizational learning,
respectively? Have certain types of experiences led to learning, and in their absence
learning has not happened? Before considering this question ﬁu'ther, some offering
additional interpretations related the second and third events are ﬁrst organized in this
same way, similar to the ﬁrst interpretive section.

Event #2: HC 2000 Publicly Oﬂ'ers Support of Controversial Proposed Hospital
Merger
Supporting the merger has led to a series of additional activities, all considered by

the leaders to be important and developmental for HC 2000, and sometimes for

162

themselves. Supporting the merger was one way HC 2000 thought it might achieve its
objectives - to lower healthcare costs. Supporting the merger has also become a

developmental opportunity for the organization.

 

 

 

 

 

 

Table 3.3
Event #2 - Publicly supporting proposed hospital merger
ORGANIZATIONAL LEARNING CATEGORIES
ACTIVITY OUTCOME , ENVIRONMENT VALUES
Discontinuous Aﬁnity for Multi-layered Community
Processes Complexity environment Values
Yes Yes Yes Yes

 

 

 

 

Activities: Learning through discontinuity. For the board to oﬁcially support
the merger, many discussions took place, both formally and informally. Concerns and
conﬂicting opinions surfaced in these discussions. Board members seemed to value these
discussions, and beneﬁt. from them. Their descriptions best characterize the type of
learning environment created: We reacted to the merger. We were in the midtﬂe of a
very dynamic situation. Our leader was gone and not everyone was willing to express
their opinions. I was interested that there were a lot of positions about whether the
collaboration between the hospitals would produce more eﬁiciency. There is the
aynamics of the doctors relationships with the hospitals and acquiring the latest
technology. I wanted to inﬂuence and advise on the issue.

Another board member shares this insight about related activities: The
personalities of the board members and their fantastic variation in intensity of support
for HC 2000 have been a little bit of a problem. John (board chair) is a good decision

maker and good at getting consensus of the board He has been the most inspirational,

 

163

' taking a steaay course and keeping HC 2000ﬁ'om going off the deep end . . . I am
impressed with John 's ability to guide discussions and carry out the work in the
background

Another board member oﬂ’ered this perspective about learning: I think I ’ve
learned ﬁom just watching and listening to other members on the board consider a point.
I try to come to a conclusion quickly on a point to bounce my conclusion of of someboa)l ‘
who is about to speak. The danger is that sometimes you are not listening to what you
ought to be listening to, while you are formulating your conclusions. So it goes both
ways. . Taking time to listen and consider more input before acting, is important.

Finally one important value from this experience is summed up by another board
member: Just watching a guy who has created a business, “How can you'not learn
something? ” Every time E. speaks, its kind of like big wisdom You know every time he
opens his mouth it will be something that is heavily studied. . . a considered opinion I
like the interaction of the people on the board It ’s a luxury that you don ’t have a
bottom-line issue always to consider.

It is clear that the leaders valued these discussions, though they were disjointed,
disorganized, unplanned and often disagreements. The leaders think these discussions
helped them learn more about the diverse thinking that exists among them. They are a
better board, more eﬂ'ective, because of this experience. Also important is that no one
suggested the need for anyone to change their views. They just wanted to reach some

agreement — to support the merger or not. By passing the resolution, agreement in

principle was accompanied by disagreement. This experience prompted further action,

164

which has also beneﬁted the organization These discussions clariﬁed questions,
stemming ﬁ'om a complex issue, and the board continues to learn.

Outcomes: Learning from complexity. No one could predict with certainty that
the merger would be good for the community, or if it would really reduce health care
costs. There is continuing disagreement on that point among board members. Business
mergers can save money. But could this principle be applied to health care/hospitals, and
to public, non-proﬁt organizations? They weren’t sure. While they agreed to endorse the
merger, they decided they nwded more information and to get more closely involved.
Predicting the outcome of this merger was too complex to support it and then walk away.
They began asking thought-provoking questions of the hospital administators. They
challenged decisions and assumptions. They inspired the hospitals to develop their plans
more fully. When the hospitals responded to questions posed by the board, in their
response they admit, “our ‘position paper,’ (is) a document signiﬁcantly inspired by your
letter and questions.” The hospital CEOs say they, “welcome(d) the opportunity to
clarify such critical questions regarding our merger plan.” (Letter of August 30, 1995'
from both presidents of two hospitals planning to merge.) The questions, position paper
and eventual meeting between the hospital leaders and the HC 2000 board members, were
learning experiences. New understandings evolved among all involved. Embracing the
complexities surrounding the proposed merger, fueled additional HC 2000 board actions,
and is now viewed as developmental for the organization.

Environment: Learning within a multi-layered environment. HC 2000
immersed itself into an external environment, when it chose to support a contoversial,

heavily—criticized, merger proposal. The board decided this was an opportunity for HC

165

2000; while others might have concluded that the action might be too risky or
unimportant to the organization. As a part of the contoversy, would new barriers
interfere with the organization? Though this concern was not a deterrent to action, this
action did unexpectedly thrust them into another environment (layer) - the federal com't
system - which has created additional unexpected (learning?) experiences.

The FTC challenge to the merger, and HC 2000’s public support of it, caused the
board chair to be asked to testify before the US. District Court of Appeals. The chair
admits that this caused him to become even more articulate about why a merger would be
good for the community. This experience along with creating a working relationship with
the hospitals, have become opportunities for the organization and the leaders to learn.

HC 2000 encouraged more thinking about the merger, for themselves and the hospital
representatives. Furthermore, the board believes they inspired the hospitals to plan for a ‘
new board (of the merged entity) that contained community representatives. (Thus they
aﬂ‘ected the learning of others. Supporting the merger, created a positive relationship with
the hospitals, something that also proved valuable to HC 2000 and has probably helped
produce the organization’s greatest achievement (see event #3). Working in a multi-
layered environment challenged the organization, but apparently made it better and
stonger for carrying out future work.

Values: Learning through community values. The decision to support the
merger created questions about HC 2000’s motives. Though, board members saw the
beneﬁts outweighing the risks, they were not surprised that their motives would be
questioned. Quietly, almost obscurely, they proceeded to get involved in merger plans.

They want to make sure things go the right way, for the community. Discussions among

166

themselves, with the hospital administators, and in court, required the board members to
become very clear about their motives behind this support. Though challenged, their
Opinion and decision has remained unchanged for these two years — the merger should be
good for the community. They hope to ensure beneﬁts to the community by becoming
actively involved in merger decisions and with the new entity. This event has become an
important activity for HC 2000; plus has stengthen its role (and visibility) in the
community.

Overall observations about organizational learning in relation to event.
Many organizational experiences attached to this important event of HC 2000 have
contained all four learning categories. The discussions were discontinuous and ﬁlled
with dissenting Opinions. The board used this as an opportunity to understand more
about a complex problem and did not attempt to simplify it. The organization was thrust
into other environments, which meant it was open to, and received, public criticism. And
now the organization defends its actions on the grounds that it did something important
not only for. HC 2000, but for the community.

The Data and Quality Committee, continues to stuggle. They fear future actions
will cause unpredictable results (category #1); or that the complex data will be
misunderstood, (category #2); or will fall into the wrong hands (category #3), and they
view their work as important only to themselves, (category #4). On the other hand, the
Board of Directors has canied out their work immersed in at least these four areas of
learning. The board has become better; and organizational members believe HC 2000 is

in a stonger position than when it ﬁrst began. These board experiences seem to have

167

provided learning that has led to progressive and developmental change for the
organization.

A board member oﬁ'ers this commentary about the event and its eﬁ‘ect on the
organization: HC 2000 is in about as good a shape that you would expect at this time.
We needed to support the merger which made HC 2000 even stronger. I was generally in
favor of the merger and think it is a good thing for the community. I ’m concerned about
its execution and promises made. I like the judge ’s decision to hold them to their
community commitment, making it a condition of the merger.

Event #3: Purchasing Contracts with hospitals: Beneﬁts to members and to
organization

The purchasing contacts are the ﬁrst achievement (and the only One of the three)
that may actually produce a reduction in health care costs and thus savings for
organizational members! Even that is not certain. These contacts are designed not only
to bring down the rates charged by the hospitals, but to provide the incentive for them to
reduce costs and maintain quality, i.e., to optimize health care. Actual savings will not be
realized, probably, until 1999; but the concept of direct purchasing is now a problem
solving model that the organization is continuing to experiment with other providers,
namely physicians. These past experiences are now contributing to new problem solving
endeavors. Applying the four learning categories to these experiences reveals, as did the
second event, that the experiences seem pertinent to all four organizational learning

elements of this study.

168

Table 3.4

 

Event #3 - Securing direct purchasing contracts with area hospitals

 

ORGANIZATIONAL LEARNING CATEGORIES

 

 

 

 

ACTIVITY OUTCOME ENVIRONMENT VALUES
Discontinuous Aﬂinity for Multi-layered Community
Processes Complexity environment Values

Yes + Yes Yes Yes

 

 

 

 

Activities: Learning through unforeseen and discontinuous events. The
overriding perception among organizational members about the activities associated with
securing the contacts was that the process took much longer than expected. The
Negotiating Committee work started and stopped several times, before ending
successfully with signed contacts at all four hospitals. The work became contoversial
and political, plus included stessful moments of discontinuity for the organization.

Our discussions were a kind of consensus approach There are a number of
things that people said that I don ’t agree with, but some would abstain ﬁom voting ‘
because of some other interest. They would say, “I am going to take myself out of this
vote. ” People showed themselves as people with integrity.

Another interesting (and contrasting) perception about events of this achievement
is: I also serve on the hospital board and because I am on one side I am sure people '
would say it is a conﬂict of interest. On the hospital side I sit there and we decide how to
make money. If you look at the long run, though there is no question but that hospitals
. have to change. Instead of measuring healthcare with the number of beds or the
occupancy rate, health care is diversiﬁed and a community issue, which I think is good

and that ’s how I approached the discussions.

 

169

Everyone remembered these discussions and the anxieties that were a part of the
decision to establish the direct contacts. There was confusion and dissent among
organizational members, but still the work proceeded.

Outcomes: An amnity for complexity. Discussions smrounding the decision
whether to negotiate contacts or not, generated feelings that there was a lot more
information needed: I would say the thing that popped up right away was the challenge
of finding the approach that was clear enough about what we were doing but wasn ’t
going to shut someone down I thought the conversations had application to my customer
service thinking. We needed to understand how hospitals work This experience has
been one of those experiences where you resist being seen as “these guys coming in and
telling us how to run our hospital. ” We really came out with an agreement, but there is a
sense of disconnectedness. You can ’t explain the cause and eﬂ'ect clearly to people.

Another board member recognized the complexity of the situation this way: I
brow some of the people on the board think I have more information than others. I
served on the Governor 's commission on health care for ﬁve years and was in charge of
our health care programs here for a while. . . . There were different levels of
understanding about what hospitals costs and charges are based on.

And ﬁnally another remembers this about how complex the information was:
Trying to understand DRGs, I guess, was one big challenge. Trying to understand what
somebody charges for something became important to HC 2000 and we tried to make
sense out of the numbers. But if you look at the numbers, you find that the same
identiﬁed procedure at one hospital may charge $4000 and the other one would charge

$9000. You just brow that something isn ’t right. Another frustration is trying to see

170

what the value of something was. What we did brow is that there are too many big
members with too much power, trying to wield that power just for economic development.
That is wrong!

Fully understanding the pricing information in the contacts, or the basis of the
hospital charges was never achieved among most all board members Yet even without a
thorough understanding, the contacts (the outcome) have become a great achievement
fer the organization. The board allowed the process to go forward even without a full
understanding.

Environment: Beneﬁts of a multi-layered environment. The Negotiating
Committee received approval, initially, tom the board of directors to negotiate the
contacts. Not long after, the committee began interacting externally, with hospital
administators. Not long after that emotions were high and questions about this solution
were raised, both internally and externally. Thus, the work was carried out in a multi-
layered environment. The processes slowed, even halted for several months, while
everyone reconsidered the next steps.

It was stressjﬁil as much time as we spent on the process. I think we would
typically schedule a meetings for seven or eight times a year. It was very interesting that
a number of time people did not show up for meetings and even called at the last minute
to cancel. It is a small board and if we lost two people we lost a quorum Sometimes we
might have quorum but we would be talking about an issue that I blow was a concern for
one person who was not there. So we canceled the meeting and tried to reschedule it.
They would all tell you this (getting hospital contacts) was serious and important but

that wasn ’t always demonstrated in commitment.

171

Eventually, the board gave the committee permission to proceed and several board
members agreed to participate in the negotiations. The leaders described how these
experiences were beneﬁcial and educational. I came to blow several people that I didn 't
blow before and people who really brow their stuﬂr in their areas. You were never sure if
you brew what the key issues were and there was lots of ambiguity. I learned a lot but
don ’t feel that I have been particularly eﬁ'ective with my inﬂuence. I shared some
biowledge unique to our company and maybe added a little bit but not much. This is an
example of walking into a subject that I brew little or nothing about; so its been almost
total learning. I think I ’ve learned ﬁom just watching and listening to other members on
the board consider a point. . . . I have had an, “Oh! I didn ’t see it that way ” type of
experience.

In addition, a better understanding about the strength of organizational design
resulted ﬁ'om this experience: One of the smart things Jerry (the founder of HC 2000)
did was require CEOs as board members. To be on the board you have to be a CEO or
Chair of a company. That allowed when the going got rough, the ability to go into the
hospitals and meet face-to-face on a equitable level with the same group of people. It
created a peer-to-peer setting and we were taken much more seriously as a result of that.
Although we expected all the work to be done at the Negotiating Committee, the bottom
line was there was no way they could pull it oﬁ.‘ That probably wasn ’t a real expectation
of this venture.

Dealing with both external and internal environmental layers, then, was a distinct
part ofthis event. Though this may have slowed the process, in theend, it is viewed as a

positive learning opportunity that is developmental for the organization.

172

Values: Developing from community values. First, HC 2000’s original mission
statement is revisited: To create a community agenda on health care, representing the
interests of employers by achieving cost containment and costreduction while preserving
and improving the quality of care delivered

Next consider that although the organization’s mission continues to be to create a
community-based agenda, most leaders described HC 2000 as an organization that would
reduce their health care costs. They joined the organization mainly for proﬁt/cost
reasons, not to serve the community. The purchasing contacts became an opportunity for
board members (and other organizational members) to establish that HC 2000 was
engaging in activities that considered community needs, not just their personal business
interests. Today, this is viewed as a stong point about the HC 2000 organization and a
reason for continued involvement.

When the hospitals alleged that the contacts contained prices that were
considered very low, this became the opportmity for BC 2000 leaders to be site they
couldtustthe HC 2000 membersbyverifyingthatthepriceswerefair. Alsoby
requiring the same prices at all four, the hospitals could not compete on price, and thus
created the incentive for the hospitals to maintain high quality service, while cutting
costs. Thus the contacts made evident how HC 2000 has made progress toward it
community mission.

One board member voiced his values about health care and about the HC 2000
organization; plus he admitted that when he ﬁrst joined the organization, he did not have
the knowledge to make such a statement at that time. Thus he has learned from his

experience. The industry has more pluses than minuses, and there are things within the

173

health care system that are troubling me. But mainly we (HC 2000) ought to guarantee
every living American access to health care -- quality and aﬂordable health care.

Overall observations about organizational learning in relation to event: Once

again, experiences surrounding this event contain elements of all four learning categories.
~i Members of the organization believe the contacts have stengthened the future of HC
2000. The organization has created, and tested, a problem solving model that will next be
modiﬁed and applied to future activities and different providers. The leaders behave they
have learned ﬁ-om using this direct pmchasing model, enough to utilize it as part of their
next organizational stategy.

HC 2000 now plans to directly purchase services from physicians. They will have
the physicians help devise a pricing schedule, just as the hospital representatives (Data
and Quality Committee) had participated in the hospital pricing scheme. Though details
are still be ‘worlred out,” members of the organization are proceeding swiftly to create a
stategy. HC 2000 leaders feel even better equipped to succeed in future problem solving
efforts. The complexity of the work and tmknown challenges are formidable as HC 2000
as they begin working with the physicians (groups); but no one is hesitating. The
organization has learned from this ﬁrst experience in ways that they guides them to create
futtue successes.

One board member has several ways of valuing this past experience and the HC
2000 organization: The hospital organizations are clearly very dtﬂ'erent than how we run
traditional businesses. The difference is perspective. Health care administrators think of
themselves as hotels and the key is occupancy. Business people, on the other hand who

are paying the health care cost, want to see the hotel vacant. We don ’t want anybody

174

getting sick or anybody in there which is a combination of quality and preventative care.
These are two opposing views about the role of hospitals. We are looking at evolutionary
change. I mean more continuous improvement models, small incremental changes, not

_ necessarily any dramatic moments.

Another point learned from this experience is the difference between large and
small organizations. This accomplishment now provides lower costs, that may be
especially appealing to smaller businesses. (Smaller business have historically had to pay
even “higher” rates for health care coverage because they had less bargaining power than
larger payers.) As health care costs have risen dramatically, small businesses have been
hit the hardest, some believe. HC 2000 is a membership organization that does not put
small businesses at a disadvantage. This is an important organizational feature, according
to most board members: Its important to have the costs (membership fees) be kept very
very low. If that ever started to get out of hcmd I would object. It is now very reasonable
to be a member, about $3. 00 per employee. That ’s to the organization ’s credit. We don ’t
need another bureaucracy in health care!

‘ Similarly: I think HC 2000 has a reasonable size membership, with a number of
important companies (large companies), but small ones, too. There is a sense of common
propose on the board for both large and small companies, though there are diﬂ'erences
on how you go about doing it.

Finally, this event prompted one board member to describe the future of health
care and the role of HC 2000: In Grand Rapids there are thirty two or thirty six different
ways of getting paid by the hospitals. There is not a uniform system and that ’s

ridiculous! We should have one system everybody conforms to. We would save hundreds

175

of thousands of dollars. The variance in health care costs is ridiculous. I think we (HC
2000) can be a signiﬁcant inﬂuence in getting a uniformin to all of us on the pay scale.
We are not there, but we made progress. We still have a long way to go.

It seems that a variety of new problem solving ideas have emerged ﬁ'om these past
experiences.
Concluding Observations about HC 2000 as a Learning Organization

The case study method has been used to examine three organizational events and
associated experiences in detail. These events have been related to ideas about
organizational learning according to an organizing framework developed in chapter two.
Have these events provided experiences that were organizational learning experiences?
Has organizational learning paved the way for future organizational successes?
Descriptions of the organizational experiences have been provided tom the
organization’s perspective. The last section presents certain details about the Organization
alongside four learning categories, and several elements selected from contemporary
organizational literattue about organizational learning. (See Chapter 2) Interpretations
about the events and experiences, as learning opportunities, have now been provided.

The details described and related to the elements of learning extends our
understanding about organizational learning in a particular organizational setting — a
setting where leaders have engaged in new forms of problem solving and created viable
solutions. It seems that the problem solving activities in HC 2000, have been .
accompanied by orgmimtonal learning. Maybe organizational learning has helped shape
the problem solving activities? Or maybe learning through past activities is shaping

future activities and solutions?

176'

Analyzing actual events and related leadership perceptions about these events, and
applying them to a theoretical ﬁamework about organizational learning, is informative.
Experiencescontaincenainelementsthatseemtobelearningexperiences . ..
developmental experiences that will beneﬁt the organization in the future. Also, studying
those experiences that contast more taditional ideas about effective organizational
designs and activities has been valuable. This method of analysis, suggests that formal,
stuctured, and planned activities may not always be essential for organizational success.
Learning categories were selected because they were diﬂ‘erent from or atypical tom the
types of experiences that-are typically advocated in the (common) bureaucratic
organizational model. These contemporary organizational learning elements have been
present in most of the HC 2000 achievements.

In fact, these nontaditional types of experiences may have facilitated, or at least
accompanied, some learning and organizational development. While one group did not
have experiences deemed, in this study, as ways of learning, other groups and other
experiences demonstrated the possibility of learning. Fmther, the group (Data and
Quality Committee) that seemed devoid of these learning-type experiences today seems
more uncertain about their future direction than those other HC 2000 groups (Negotiating
Committee and Board of Directors) who did seem to engage in the type of experiences
associated with learning.

One can argue that depending on the individuals, the particular sets of
experiences, and differences in the type of work . . . then diﬁ'erent results should be
expected. But an argument can also be made that this organization is designed to be

conducive to problem solving. Why would two out of three be able to succeed and a third

177

having more limited results? The presence and absence of learning experiences and
diﬂ’erences in success, suggests that information about tansferring knowledge to multiple
situations is diﬁicult to isolate and will vary even in one organizational stucture. One
hope is that this study will stimulate an greater interest in understanding how past
knowledge accumulates through prior experiences and is tansferred to future
organizational activities.

To further explore ideas about learning in relation to organizational development,
this study now takes up the issue of organizational learning in relation to career
development In the next chapter, one organizational member, the third board chair, is
studied in relation to these same fort learning elements. (Chapter 4) This leader’s
perceptions about his leadership experiences at HC 2000 (as learning experiences) are
contasted with his other leadership experiences in other organimtions. This career
perspective supplements the case study about organizational learning, presented in this
chapter. The ﬁnal chapter considers both the organizational perspective and the career
perspective in relation to understanding more about organizational learning. The ﬁfth
chapter integrates thetwo studies — the case study and the career study. In this way ideas
about individual inﬂuences upon an organization are considered. First, the importance of
the inﬂuence of one individual, in relation to particular organizational events, is revealed

in the following career analysis.

Chapter 4

ORGANIZATIONAL LEARNING: A CAREER BIOGRAPHY

Introduction: Expanding the Case Analysis

A socially-constucted view of organizations will sometimes depict a dialectic
relationship between two phenomena - organizations and individuals. (See chapter one) A
working deﬁnition of organizational learning, can delineate both dynamics:
Organizational learning can be associated with spgciﬁc grganizatignﬂ activities.
Ms, changes, as well as many other factors Why
gram 'onal members. (See chapter two) In chapter three, the case study took a close
look at the organization phenomenon - its activities, outcomes, and developmental
changes. Now, this chapter takes a close look at individuals in relation to organimtional
learning by studying organizational members directing, initiating and carrying their
work.

In this chapter, the career analysis ofa leader is presented. The career subject is
the Chair of the Board of Directors for the HC 2000 organization . . . the organization
studied in the previous chapter. In this chapter, the focus shifts away tom the
organization and toward one leader and his career. Wagner argues that studying
organizational learning is much more important than simply studying problem solving
activities. It is helpful to brieﬂy revisit hisargument, that was presented in detail in

Chaptertwo. Wagnerstatesthatwhenconcreteandﬁse ”resultsﬁomstudiesare

178

179

sought, studies about learning, not just the problem solving activities and goals” achieved,
are necessary. Wagner admits that, “(W)hen people learn to execute problem-solving
methods associated with a particular goal, there may not a generalizable way of
achieving that goal.” But, if we are to gain a better understanding of organizmions and
learning, problem solving methods associated with a particular goal hold various forms of
tansferability for individuals. (Wagner, 1991) Thus, Wagner suggests that studies
should consider the tansferability of activities and achievements. This can be done by
studying ways when an individual tansfers knowledge, over the course of a career.

Careers are studied and analyzed in a variety of ways; and a study about a leader’s
career presents its own peculiarities. By attempting to understand more about
organizational learning, the information in this chapter is now organized around career
development concepts, and considers, in limited ways, some contemporary leadership
principles. The four heuristic learning categories (activities, outcomes, environment, and
values),used in the case study, are now applied to career concepts. After reviewing
several common, historically-derived, career models, the framework for study is
expanded to include career elements to guide this next part of the study. While the four
organizational elements (applied in the case study) are based on contemporary
organizational ideas, the four selected career elements feature long-standing views about
diﬂ‘erent career development concepts. .

Also, a focus derived tom the working deﬁnitions of organizational learning.
(See chapter two) Learning for individuals organizing, directing and carrying out the
work of an organization is considered. The tansference of knowledge learned ﬁ'om one

experience to another, in the form of problem solving endeavors, are of special interest in

180

this career analysis. How does a leader use what he/she has learned from one experience,
for another? How do certain life experiences tanslate into career activities? How is
experience used to advance a career? The career biographical story reviews particular
experiences according to same four learning categories ﬁrst discussed in chapter two; and
this analysis considers bOth career elements and leadership principles. Thus as this
chapter shifts the focus away from the organization and toward an individual leader,
another dimension of organizational learning is revealed.

Just as one organization was studied, (case study) one leader and his career is now
studied. This chapter begins with a review of career analysis principles and describes
several career models. Several contemporary leadership principles are related to general
career issues, mainly because this is an analysis of an organizational leader. A brief
discussion about narrative biography sets the stage for the analysis. Then, the next
section of the chapter presents a career analysis, which for this purpose is called a career
biography. The last part reviews the leader’s career story in relation to the four learning
categories devised earlier in the chapter. Both the career biography and the review of
learning, include organizational considerations. Mainly, though, career issues are
emphasized in this part of the study, without ignoring organizational issues. As for the
case analysis, this career study is intended to be a stand-alone study.

CAREER ANALYSIS MODELS
Introduction

Careers are composed of lifelong experiences. To study a career is to study one

portion of an individual’s life, often a very signiﬁcant portion. While some careers are

carried out independently outside organizations, most are not. Organizations are potential

181

places where careers develop, and thus oﬂ‘er learning opportunities for individuals.
Organizational learning is now studied as a part of career development concepts.

Career analysis, as a way of understanding organizational learning, can ‘
compliment organizational analysis centering on learning. The deﬁnition of
organizational learning, as set forth in chapter two, considers not only organimtiohal
activities, outcomes and changes as a part of organizational learning, (see chapter three),
but the deﬁnition also deﬁnes the concept relevant to individuals who direct, initiate and
carry them out. As individuals carry out their work within and around organizations, they
are pursuing their careers. First this is a study about career development within an
organization; but the study also relates certain career considerations to features of
organizational development.

As discussed later in this section, most career studies do recognize both
organizational and leadership features when conducting a career analysis. To achieve this
same type of content, the following career biography represents both career and
organizational ideas. But mainly, the career biography takes a slice out of one’s life - the
career portion - describes it and tells how it changes over time.

Before providing the career biography, both historical and other common
components of career analysis are reviewed. This information helps shape the following
analysis including aspects of organizational development. Thus, part of this career
biography asks, “What aspects of organizational activities, outcomes, environmental
aspects, and values seem related to the process of developing one’s career within an

organimtion?”

182

The biographical approach to studying a career is used here and the reasons are
presented just prior to the analysis. In addition to studying a career, the biography of an
HC 2000 leader, is also intended to provide additional insight into the development of
HC 2000. To this end, the analytical ﬁamework developed in chapter two and utilized in
chapter three is extended to include career concepts. The career biography, thus, can be
integrated, (compared and contrasted) to the organizational analysis. Findings discovered
ﬁ'om this integration process are presented in the ﬁnal chapter.

To begin, though, traditional career concepts are applied to the same heuristic
categories used in the organizational analysis; activities, outcomes, environment and
values. Just as a case analysis contains a variety of considerations, (see chapter three) so
too does this study about the career of a leader contain a variety of considerations. After
reviewing classical career themes, a cross-section of ideas were and organized around the
fun learning categories: activities, outcomes, environmental inﬂuences, and values.
Theoretical Models of Career Analysis

For the past forty years, career theories and models have not changed radically.

An individual’s career is studied during the course of a lifetime, often according certain
stages or ages. Careers are also studied according to a multitude of inﬂuences, which are
experienced prior to and during the career years. The importance of the multitude of
inﬂuences upon a career, and over the course of a career, changes. Four signiﬁcant ways
of studying inﬂuences upon careers are now reviewed. After this, a career analysis model
(and guide for studying a career), is presented as one useful way of thinking about this
study of organizational learning. The four career models are: age and stage models,

individual diﬂ‘erences model, self-concept models and signiﬁcant event analysis.

183

Age and Stage Structured Views. A review of career stages, in relation to

' organizational distinctions, often provides a ﬁ'amework for carrying out a career analysis.
(Young and Borgen, 1990) One of the earliest career models, developed by Super in
1957, was a stage-structured, life span model. Super studied careers according to ﬁve life
stages, which he also considered age related. (See table 4.1) Many stage-structured
models have evolved from Super’s model, and maturational factors, such as
organizational tenure, position tenure, and age are, therefore, used when study developing
careers in these ways. (Greenberg and Baron, 1990)

Career maturity concepts in relation to organizational considerations, such as
hierarchy, and position tenure, continue to emerge. More and more life factors are being
considered as a part of career analysis, including not only career education, but sex,
socioeconomic status, health, and ethnicity, to name just a few. But most studies -
continue to be guided by certain age or stage considerations. Therefore, as maturation is
studied according to various ages or stages, a great variety of career inﬂuences, constantly
changing, are also studied. (Young and Borgen, 1990)

Individual diﬂerences model from multiple inﬂuences. Another way of
studying diﬁ‘erent inﬂuences upon careers is to consider unique and individual inﬂuences
that occur during career maturation. This is often called the “individual differences
model.” For example, Super states that a commitment to work is directly related to career
maturity and believes this has important implications for career development theorists
and practitioners. Yet, Super believes that knowing how important work is to an
individual, at different stages and ages, is another important inﬂuence upon a career.

(Super, 1984)

184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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185

In the 70’s and 80’s, Schein continued to expand the individual diﬂ‘erences view
by examining cultural factors and their inﬂuence on career patterns. Cultural factors
include societal, occupational and even organizational cultures which he thought became
* important inﬂuences upon the development of a career, but in varying degrees. (see table
4.1) Schein said, “Both managers and career researchers must become more familiar with
these cultural and social inﬂuences,” and described them in this way: .

Countries and organizations differ in the degree to which they

specify explicitly the external career paths that are to be followed by

members of a given occupation. The kinds of motives and ambitions that

are considered legitimate for pursuit of careers and the degree of prestige

, that is attached to diﬂ'erent paths should be considered. Organimtion

cultures will reﬂect, in part, the broader society cultures, and in a sense

mediate between the larger culture and the occupational structm'e

experienced by the individual. These differences strongly inﬂuence the

way people feel about their careers, the kind of motivation that is

considered to be appropriate for a career, how successful people will feel,

and even how explicitly they experience having a career. Individual

reactions, what we have called the ‘internal career’, are, therefore, a joint

outcome of broad society forces, speciﬁc occupational or organizational
forces, and each person’s own experience. (1985)

Career theorists take a holistic approach to career analysis. (Miller and Form,
1951, Schein, 197 8) Studies focus on various inﬂuences ﬁom many life roles, e.g., at
work, at home, and in the community. (I-Iovet, 1990) Careers are studied according to the
interrelationships among both personal and professional inﬂuences, and all are viewed
along a continuum of time and matmity. This view advances the idea that each person
possesses his/her unique set of inﬂuences and life experiences, over time, which produces
diﬁerent individualized career outcomes. Also by the mid-80’s, career theories were

extended even flu-ther to ideas of self-perception and self-actualization.

186

Self-concept models based on self-perceived abilities. Super’s model of
vocational development centers around ideas of self-concept and ways that individuals test
this personal view against reality. Both vary according to various life stages. In 1978,
Schein expanded the stage-structured construct, by developing what he called “career
anchors.” He, like Super, studied self-perceived talents and motives of “career
incumbents.” He used ﬁve career anchors to explain how careers are constrained,
stabilized, and integrated into organizations. The anchors are: l) autonomy and
independence, 2) technical-functional competence, 3) managerial competence, 4) security
and stability, and 5) creativity. Career changes were studied according the diﬁ‘erent
“anchors,” plus the aﬂ‘ects of time and maturity. Schein believes that these anchors were
based on individuals’ self-concepts and their self-perceived abilities, which would change
over time.

Signiﬁcant events model. Finally, another view of careerdevelopment
recognizes the inﬂuence of signiﬁcant events upon careers. According to this model,
careers develop and change from conscious and Imconscious, formal and informal events.
Formal training and other “educational” moments, will guide many conscious career
choices. Also, a great variety of important events aﬂ‘ect careers, with some inﬂuential
events occurring prior actual career years. Finally, events which are considered lucky or
unlucky, paths that just happen to be crossed, and even unconscious reactions occur that
continuously affect the formation of careers and are contained in this model.

The Miller and Form life span model of careers suggests that a series of social
adjustments caused primarily by culture aﬁ‘ect careers in signiﬁcant ways. They study ﬁve

periods of the life span, and search within each for both stable and unstable career patterns.

187

These ﬁve patterns are: 1) Preparation, 2) Initiation, 3) Trial, 4) Stability, 5) Retirement.
They conclude that though much of a person’s career development is determined largely at
birth, and depends a lot on the social class into which a person is born, but events of all
kinds, planned and unplanned, throughout life will inﬂuence the course of a career. (see
table 4.1)

Most career models use a life span approach. This helps to examine a great
variety of event types over the course of a live and in relation to a career. A life span
approach, regardless if it is stage and age structured or a signiﬁcant events model, or other
models, canlookatone setofexperiences andaskifthesearepartofapatternorasetof
general responses in relation to career activities. Regardless of the career model, a life
span study also helps recognize the uniqueness of individual lives in relation to career
development theories.

Thus, within the ﬁeld of career analysis, there are a great variety of models. The
above models represent the most common that have evolved during the last half of this
century. Career studies incorporate a great variety of topics and seek to understand their
relative importance to career development. As described above, studies often look at
careers according to factors of maturity and stages. These ideas are often combined with
ideas about a great variety of personal and professional inﬂuences over a lifetime, and in
relation to careers. Some events, planned and unexpected, become signiﬁcant, and aﬂ‘ect
self-perceived abilities. Thus all, or some, factors are included, and considered, in career
studies, resulting in a great variance of factOrs being examined in relation to career

development.

188

Keeping in mind that this study not only seeks information about an individual’s
career but also the inﬂuence an individual has upon an organization, the integrated model,
discussed next, provides useful ideas. This study asks, “How has a career aﬁ'ected an
organization?” By centering ideas around the concept of organizational learning, both
organizational development and individual development are considered. The integrated
model, described below, also informs the heuristic ﬁ'amework developed, in this and
previous chapters, for these purposes.

An integrated model of careers and organizations. One ﬁnal approach used to
study careers, that has a special bearing upon this study, is now considered. Career studies
often can be grouped according to two types of constructions - individual models or
organizational models. Both types — individual and organizational - consider the
interaction between the two, but in very diﬂ‘erent ways.

This career analysis, is shaped around ideas related to organizational learning, and
thus Mpts to consider the interaction between the organization and the individual.
What sort of organizational inﬂuences have had a bearing on a leader’s career? Plus, how
has the leader aﬁ‘ected the organization? To help shape the analysis, a closer look at one
study that speciﬁcally sets out to examine the relationship between individuals (their
careers) and organizations is now reviewed. This is a four stage integrated model that is
designed around thinking simultaneously about both organimtional development and
career development. Several ideas developed in this model become useful when the
learning categories (activities, outcomes, environment, and values) are applied to career

concepts.

189

Individual career models have always appeared alongside contrasting
organizational models. Dill, Hilton & Reitman, in 1962, studied career development
according to a series of interactions between individuals and organizations. These
interactions included: individual decisions and actions, feedback, individual responses to
feedback, new decisions and actions. By 1978, Schein, incorporated this “individual to
organizatio ” thinking into a three dimensional “cone,” which identiﬁed reciprocal
inﬂuences according to three types of boundaries: hierarchical, radial (external-internal
features) and circumference boundaries (across functions). Schein hypothesized that
organizations aﬁect individuals just before and during boundary changes and the
individual affects the organization when no bormdary changes occur. But in 1986,
Dalton and Thompson presented a dramatic shift in this thinking, which is more
representative of how career studies have shifted away ﬁ'om organizational
developmental theories. (See Chapter one) A close look at the Four Stage Career Model
is now provided to demonstrate one way of incorporating a great variety of factors,
organizational and individual, into a career analysis. A

Four Stage Career Model. Emerging from a 1986 study by Dalton and
Thompson, the following four stage model was developed. This model is stage
structured and considers performance issues of both the individual and the organization.
At each of the four career stages (see table below), activities, relationships, between
individuals and organizations are changing; also each stage calls for caping with new
psychological issues that organizations will pose to its members and will affect their

career maturation process. The hypothesis behind this model establishes a strong and

190

dominant role of organizations in career development, which also is somewhat negative
ﬂour a career development perspective.

Dalton and Thompson originally suggested that each of the four stages represent
clusters of ﬁmctions that are progressively more highly valued by organizations.
Characteristics associated with each stage include features of the type of work,
independence of action, organizational expectations and features of learning. The
following table (4.2) summarizes the four stage career model. According to the model,
the importance of the organization to a career, increases with age and experience.
Similarly, the importance of a career to an organization increases with age and
experience. Thus as a career matures, and tenm'e increases With an organimtion, the
mutual inﬂuences also increase. (Thompson, Baker and Smallwood, (1988)

CHARACTERISTICS OF FOUR STAGE CAREER MODEL

 

 

 

 

 

The Four-Stage Career Model
Table 4.2
Stage I Stage II
*Works under Wu of more senior ‘Goes into depth inbne problem or
professional . technical area
*Work is never entirely his or her own ‘Assumes responsibility for a deﬁnable
I"Lacks experience and status in organizations portion of project, process or clients
*Is expected to do routine work I"Develops credibility
*Is expected to take initiative *relies less on supervisor
*Increases conﬁdence and ability

Stage III Stage IV
1'Involved in his our hear own work enough to ‘Provides direction for organization by
make signiﬁcant contribution, but begins highlighting opportunities and dangers
working in more than one area *Manages the process by which
*Greater breadth of skills and application of decisions are made
*Stimulates others through ideas and *Exercises power to initiative action of
information _ others and inﬂuence outcomes
*Involved in developing others, as leader, *Represents the organimtion in many
mentor or formal supervisor ways .
*Deals with outside to beneﬁt others *Sponsors promising individuals

 

 

 

191

Individuals versus Organizations, According to this model, the ﬁrst two stages
are learning periods for the individuals, who make only limited contributions to
organizations. It isn’t until stages HI and IV that an individual begins to make a
signiﬁcant contribution to the organization. Prior to that, individual career development
will take priority over the needs of the organization, according to this view. Dalton and
Thompson, in 1986, described how careers can plateau in any stage. But if a career
reaches stages III or IV, the knowledge and initiative by individuals are usually more
important to organizations, even more important than to their own careers. They believe
thisisbecause atstagesIIIandIVthecareerhas,orisaboutto,plateau.

An additional hypothesis behind this model, equally interesting for this study, is
the belief that at all stages, individual needs should always be emphasized over
organizational needs. throughout an entire career, even in the later half, individuals '
should always strive to change their own situations and engage in roles they personally
desire. Individual inﬂuences based on personal desires should take precedence over
organimtional needs, according to this model. The authors do admit that this is _
sometimes difﬁcult to accomplish. Dalton and Thompson, describe that the
entrepreneurial spirit, found among self-employed and independent contractors, is a
healthy attitude even when employed by organizations. Entrepreneurial attitudes help
counteract a pervasive problem in our society — the domination by organizations. “We
have a pervasive ambivalence toward organizations. We need to recognize that
organizations are dangerous!” (Dalton, ”Thompson, 1986)

This four stage model, as well the other career models previously reviewed, now

help shape this singular career analysis. The four stage model incorporates both

192

organizational and individual considerations, just as the following career biography in
this chapter. This model, like other career models, also incorporates ideas about stages
and maturity, individual diﬁ‘erences based on multiple inﬂuences, and signiﬁcant events
over the course of a lifetime. As appropriate, many diﬁ‘erent types of inﬂuences,
considered in career studies, are considered here in the career analysis of one HC 2000
leader.

First the four learning categories are extended to incorporate a career model that
guides the career biography. The theme of this career study is organizational learning, so
not surprisingly the interaction between the leader and the organization, in relation to
both a developing career and. a developing organization is important. (See working
deﬁnitions of organizational learning in chapter two.)

Four Learning Categories Extended to Career Analysis

Career analysis for the past several decades has emphasized stages, ages and
diﬂ‘erent inﬂuences, and relationships. These features for career analysis are now
considered alongside the learning categories develOped in chapter two. The categories
were ﬁrst developed as a way of looking at organizational learning concepts in relation to
organimtional development and then were applied in a case study analysis of HC 2000.
(chapter 3). These categories are now developed around certain career analysis concepts,
reviewed above, and facilitate the development of a biographical career study of one HC
2000 leader. (presented at the end of this chapter).

The four broad learning categories are: activities, outcomes, environment and
values. Descriptions about each of these in relation to career concepts are now presented.

Organizing historically-derived, common career ideas according to the four categories,

193

creates an heuristic ﬁ'arnework for investigating individual inﬂuences upon an

organization and in relation to one’s career development. (See Table 4.3 below.) Also,

this construct creates a relationship between two sets of information - organizational

development and career development. After reviewing the ﬁ'amework, a short discussion

about leadership principles is included. Since this biographical study is about an

organizational leader, certain views about the role of leaders in organizations is helpful.

Thus, the career analysis, in this chapter, accents particular leadership ideas, but primarily

centers around organizational and career development.

 

 

 

 

LEARNING CATEGORIES

Table 4.3

CATEGORY ACTIVITY OUTCOME ENVIRONMENT VALUES

l/l/l/l/l/llll//////////ll/Il/Il/

ELEMENTS

ORGANIZATION Excitement Aﬂ'mity for Encouragement or Favoring
for complexity to integration into community
discontinuous achieve the multi-layered -based
and non-linear outcomes environments values over
activities proﬁt

motives

CAREERS Self-concept Maturation, Personal & Individual
& perceived with gains & professional needs vs.
abilities losses, growth worlds Organizatio
changing & decline nal needs
through self-
direction

 

 

 

 

 

Each learning category is now described in relation to career development

concepts, not just organizational development concepts. The following information refers

to the above chart, and describes how each learning category has been constructed around

ideas found in career models and according to career theories. Just as the categories

guided the discussion in the case analysis, they do the same in the following career

biography.

 

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Activities based on changing self-concept. Just as organizational activities may
be discontinuous and non-linear, career activities shift and change due to one’s self-
concept. As described earlier, careers are often studied from the vantage point of self- .
directed activities. And self-directed activities are thought to stem, at least partly, ﬁom
one’s self-concepts and perceived abilities which are continually tested against reality.
These activities change over time and over the course of a career.

Career theories suggest that, over the course of a career, a leader engages in
learning activities, in part, because of his/her self-concept and perceived abilities.
(Greenberg and Baron, 1990) As leaders engage in organizational activities, their
experiences may be viewed as valuable learning experiences that may aﬁ‘ect the leader’s
career and may alter the leader’s self-concept and perceived abilities. Organizational
activities that become learning experiences, over the course of a career, might include
formal and informal educational opportunities. But all experiences and work carried out
within an organization, may provide learning and cause a change in one’s self-concept.
Additional experiences outside organizations, e.g., health, family, community, age, socio-
economic factors, etc., also become learning experiences for leaders that inﬂuence one’s
self-concept and, ultimately, the career. Activities become life experiences, that alter a
leader’s self-concept and perceived abilities, which in turn aﬂ‘ect future career activities.

Studying self-directed activities, based on a leader’s changing self-concept and
perceived abilities, can increase our understanding about organizational learning.
Information about self-directed activities, therefore, guides this career analysis. Self-
directed activities, testing perceived abilities, and how these change over time, are

isolated to help study organizational learning, as it relates to one leader’s career.

195

Career outcomes: gains and losses. Just as complex organizational outcomes
may pave the future of an organization, outcomes shape a career’s future. (Blau, 1987)
As individuals mature, they experience a variety of outcomes, both within organizations
and elsewhere. Most careers include periods of both growth and decline, gains and
losses, all thought of as career outcomes. Careers are not usually a series of incremental
and sequential improvements. Simultaneous growth and decline, a shifting balance
between career and personal lives, a myriad of interventions (personal and occupational),
all produce an inﬁnite variety of career outcomes.

By studying different historical periods of a life, various types of outcomes may
isolate certain learning periods that affect a career. Times when careers grow or decline,
or leadership experiences that produce gains or losses, can be times of learning.
Important to note, also, is that learning can be associated with both desirable and less
desirable outcomes; and, thus, both types may be marked with organizational learning.
Career choices made throughout the course of a career may be for a variety of reasons and
in anticipation of a variety of outcomes. The four stage model suggests that only in the
later stages of a career will choices be made that are directed at the development of an
organization, rather than the deve10pment of a career.

Personal and professional environments: Multi-layered environments have
been associatedwith organizational learning for the organization. These organizational
layers are found both inside and outside organizations. A career analysis considers both
personal and professional worlds, i.e., multiple environments- During the course of a
career, leaders maneuver through both contexts, (personal and professional

environments), having a variety of eﬁ‘ects on a career. This maneuvering may take the

l96
form of inner thoughts, or relationships with colleagues, family members and ﬁiends.
Environmental inﬂuences to a career also include organizational, school and community
experiences, health concerns (for self and others), and more. Environmental factors, such
as personal achievements, educational opportunities and economic barriers toward
achieving personal and professional goals, will also aﬂ‘ect careers. A leader responds to,
and manipulates, through a maze of personal and professional life experiences. From
studying both environments, each containing a multitude of experiences, learning in
relation to a career can be discovered. Learning experiences for leaders thus stem ﬁ'om
their experiences with both their personal and professional worlds. As appropriate,
personal and professional environmental inﬂuences are considered in this career analysis.
This is consistent with most career models that recognize the importance and
apprOpriateness of the many inﬂuences, personal and professional, to career development.
(Blau, 1987)

Individual and organizational values: What is the relationship or connectivity
between individual values and organizational values? Bennis argues that organizations
must place an importance on values that extends beyond a proﬁt motive. He believes
organizations must value communities as they carry out the work or organizations. In
recommending this, Bennis suggests that organizations will not only be helping
commrmities, but their organimtions as well. (1994) (See Chapter 2) Yet, when values
are considered in relation to a career studies, we discover a clear dichotomy. Both ideas
associated with valuing what is important for an individual career versus valuing what is
important for an organization are taken up in this category. Unlike organizational

thinking that encourages pm'suits that will achieve more than what the organization

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needs, (community support) a career development perspective, suggests that career needs
should be valued, ahead of organizational nwds.

Career models recognize the interaction of organizational values and individual
values. But, Thompson and Dalton, and other researchers, believe that individual life
choices should ﬁrst and foremost be carried out to meet individual career needs, rather
than organizational needs. As noted earlier, they do recognize that by the third and fourth
career stages, (of a four stage model), individuals may ﬁnd it easier to do both. (See table
4.3) Pursuing opportunities to advance one’s own career needs may include seeking
ways to gain more abilities, talents, skills and knowledge useful to one’s career. New
experiences provide learning opportunities that could develop both the organization and
career. The values category seeks ways knowing more about meeting individual career
needs and organization needs. This fourth learning category, thus, examines the
dichotomy between individual career models and organizational development models.

Each learning category has now been extended to career development concepts.
These ideas have been selected because they are common ways of studying careers. They
have been shaped around the same broad learning categories as the organimtional
analysis. As one leader’s career history, including examples of activities, outcomes, plus
consideration of environmental inﬂuences and values, all in relation to one’s career
development can now be canied out. Also, certain organizational factors can be related
to career information according to the learning categories. In this way both
organizational development and career development are considered simultaneously.
Once the career story is told, an analysis of particular career experiences, in relation to

each learning category is provided. The last chapter continues with the objective of

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examining ways that career-related information relates to an organization’s development.
Chapter ﬁve asks if career considerations are informing to an organizational analysis.

A biographical method of analysis has been selected to study a career, since
careers are ﬁlled with lifelong experiences. Also, a career biography becomes another
way of considering the concept of organizational learning - in this case, the relation of
organizational learning to career development. Now that career concepts have been
organized similar to the organizational concepts, a few guiding principles about
leadership seem useful before proceeding with the career biography. The career
biography is about a leader, thus certain leadership principles and how they also have
changed in recent times need identiﬁcation. These become supplemental to the career
ideas just examined.

RELATED LEADERSHIP PRINCIPLES
Introduction

The career story of an HC 2000 leader, which follows in the next section,
considers the career development of one leader. As this leader’s career is scrutinized,
information about both his career and his relationship to HC 2000 is portrayed. In the
previous section, career development concepts, for all types of careers, were shaped ’
around four broad learning categories. Before proceeding with the career biography of a
leader, ﬁrst career issues are related to changing leadership principles. These principles
also help guide the career analysis in ways outlined below.

Changing views of leadership. Chapter one pointed out that many new
challenges face most leaders, today. The complexity and type .of challenges within

organizations and for leaders are rapidly changing and even escalating into serious

199

problems. Technological advancements are a main cause of this. Leadership analysis not
only recognizes the diﬂiculties that leaders face in the Information/Knowledge age, but
some studies suggest there is a serious shortage of effective leaders in today’s
organizations. (Gardner, 1995; Bennis, 1992) As chapter one noted, leaders haVe lost
some of their formal authority to these emerging organizational changes. Team and other
group eﬂ‘orts, social and cultural views of organizations, plus new operations controlled
by technological innovations have diluted leadership authority in today’s organizations. I
Rather than directing and controlling, leaders are told to be coaches, facilitators and
collaborators. What has not changed is the view that leaders are still important to
organizations. 1

Mutual goals. Leadership analysis considers not only individual leaders roles in
organizations, but also leadership as a career. Leadership development concepts suggest
that leaders perform an important role, today - that of change agent. Leaders careers
often hinge on their ability to guide group processes and group decisions. Also,
leadership principles continue to assume there can be simultaneous Optimization between
meeting individual needs and organizational needs. Bennis believes that leaders are
agents who create and sustain paths toward mutual satisfaction. (1994) And though
changes in leadership principles parallel changing views of organization, (see chapter
one), ways that leaders careers develop in also changing in these dynamic organizational
environments. Thus, ways in which leaders achieve mutuality between organizational
needs and career needs is also different.

Open design supports individual. Not only have rapid changes in organizations

and new ways of pursing leadership careers emerged, as chapter two pointed out, the new

200

organizational structures cause leaders to perform their responsibilities differently. This
study is about a contemporary organization, that is structured in an open, ﬂexible form.
The organization has been designed around an ill-deﬁned, complex, evolving problem —
the need for health care reform. This less-bureaucratic design has only a skeleton
hierarchical structure, and is intended to enhance the ability of many individuals to
engage in eﬁ‘ective problem solving activities. (See chapter two) All members. of the HC
2000, not necessarily the formal or highest ranking leaders, are encouraged to utilize their
knowledge and to inﬂuence organizational activities, in this type of design. Given this
open design, leaders should be change agents. The career view suggests that leaders must
ﬁnd ways of achieving a harmonious co-existence between an organization’s direction
and maximized individual autonomy. This open, ﬂexible organization seeks to sustain
problem solving, ﬁom both individual knowledge held by its members and the collective
use of this knowledge for organizational purposes. Thus this organizational design
represents an important consideration when studying a leader’s career development.

As several leadership ideas are related to career concepts, the contemporary
design of the organization (in which this leader is studied) cannot be overlooked.
Individual inﬂuence on an organization, i.e., the eventual purpose of constructing this
career analysis, is related to the organizational design. Many factors may inﬂuence
individuals in an inﬁnite number of ways, (too many to study atone time). The intent
here is produce a career study of one leader that includes ideas about his inﬂuence on an
organization. By selecting one of the “formal” and “higher ranking” leaders, one could
argue that his inﬂuence upon the organization is likely to be greater than most others in

the organization, given his formal position of authority. (The career biography is about

201

the Chair of the Board of Directors.) This may be true, but in balance, HC 2000’s open,
malleable design, is considered a design conducive to being inﬂuences by many. This
design is thought to encourage the involvement and participation of many, and reduces
formal, authoritative, directive control by any individual. Thus, this organization is
supposed to be responsive to the inﬂuence of many organizational members, not just
those with rank or formal authority. The formal leaders, according to contemporary
leadership and organizational views, are to guide and encourage multiple inﬂuencing
activities carried out by all organizational members. This group-based design, as
suggested in chapter one, may actually dilute the formal authority and ability of the
“higher level” leaders. I

In either case, (having more or less ability to inﬂuence an organization), a career
study about a leader ﬁrst warrants some discussion about how leadership principles are
related to career development concepts. This section brieﬂy accomplishes this by taking
up leadership ideas in two different ways - how the views have changed and examining a
contemporary deﬁnition of leadership. Both help explain how simultaneously achieving,
individual and organizational goals is thought possible in today’s times. These two
aspects of leadership concepts, enrich the career concepts presented in the last section,
that are applied to the career analysis in the next section.

Transformative Leadership

Career theory describes many ways that careers develop and change over tinie.
The pursuit of a leadership career contains particular and peculiar features. Technology

has aﬂ'ected the careers of many individuals, including contemporary leaders. Leaders

202

ﬁnd their career development often hinges on their ability to solve more complex
problems. The environment in which a leader carries out his or her work is often
depicted as “changing with ﬁightening speed,” “rapid, unforeseen results,”
“Impredictable,” and “chaotic.” In this dynamic environment, leaders of bureaucratic
organizations are discovering that former ways of carrying out leadership activities, (that
were very effective in the past), are no longer sufﬁcient. As leaders seek new ways to
solve new problems, they sometimes ﬁnd they must engage in new leadership behaviors.
Past views of leadership, like past views of bureaucratic organizations, are
criticized as too rigid, too dictatorial and inﬂexible. Many leadership models are
considered limited and restrictive, today. (Rost, 1991) Joseph Rost in his 1991 book, “
Leadership in the Twenty-ﬁrst Century,” provides a rich history and a comprehensive
critique of past leadership models. He notes that ideas about ‘leaders as change agents’
dominate our thinking today about eﬁ‘ective leadership. These views are often referred to
as a transformative view of leadership. Rost’s deﬁnition of leadership, which follows in
the next section, offers a contemporary view about transformative leadership. Unlike past
models that depicted leaders as “possessors” of the knowledge needed to solve problems,
transformation models of leadership characterize leaders as facilitators, collaborators and
“seekers” and “ oducers” of needed knowledge. This new leadership view encourages
leaders to ﬁnd ways of utilizing the knowledge that others possess, as well as their own.
The extraction of knowledge, collectively held and needed to solve complex problems,
has become an important part of leadership activities. From this has followed the that ’

leaders must create learning environments within organizations - a place where there is

203

continuous learning. One feature of this view, ﬁem a career deve10pment perspective,
considers individual abilities to produce changes that transform the workplace.

Business leaders are to be “rooted” in the ﬁlture and always ready for rapid
change. Leadership principles have changed and are expected to continue to evolve in
this dynamic environment. Yet, many leadership studies suggest that a post-industrial
view of leadership is rarely practiced. “T 00 many leaders still think, act, control, and
decide on the basis of an industrialized leadership paradigm, which advocates control
through consistency, order, structure, planning and predicting. The element of change is
not accommodated in these leadership views. The industrial paradigm is not seen as
rooted in the ﬁrture nor able to support rapid changes.” (Rost, 1991) Rost also believes
that leaders need to go against the familiar and face up to future challenges in new ways.
Finally, Rost concludes that both thought and practice about leadership still operate

according to the industrial beliefs.

Thus while leadership views may be evolving, the practice of leadership may not
be changing in similar ways. Career development concepts help reveal the possibility of
a dichotomy between practice and theory. The career models, described in the last
section (i.e., age and stage structured, individual differences, self-concept, and signiﬁcant
events), derive ﬁ'om “learning-through-experience” views. As leaders are expected to
inspire new actions and facilitate new ways of problem solving, they recognize how
threatening these new “leadership requirements” are upon their own personal career
deve10pment. Required past abilities of leaders to create structure, produce consistent

and coherent plans, and to coordinate eﬂ‘orts must now be converted. Leaders must be

204

able to substitute these with being ﬂexible, being able to encourage (not direct) others and

to support unstructured and incongruent ideas.

This emerging leadership concept (transformative view) promotes ideas of
learning, for the leader and for others. As career development become central to this
analysis, concepts of adult learning, particularly transformative learning, are related to
these leadership views. This further exposes the challenges that leaders face today in
their own career deve10pment pursuits. Transformative learning, according to adult
learning principles, deals with times with adults face complex challenges and ill-deﬁned

problems.

Jack Mezirow studies transformative learning according to both process and
content Essentially, Mezirow says that adults engage in transformative learning when
they develop the capacity to understand how their experiences become knowledge for
diﬂerent future actions. This view, can be applied (related) to the above changing view
of leadership. This adult learning view suggests that leaders must ﬁrst try to understand
their capacity for successfully using past experiences to guide futme actions. (Mezirow,
1991) This thinking is consistent with career development concepts. Today, careers in
leadership develop according to one’s self-concept of self-perceived abilities,
accumulating through experience. Leaders engaged in transformative learning, thus,
would develop the capacity to garner knowledge gained ﬁ'om past experiences to develop

better ways of applying this knowledge eﬂ‘ectively to future situations of varying types.

Changing leadership views suggest that careers develop through transformative

learning by an individual leader and by encouraging this type of learning in others. This

205

feature of contemporary career development for leaders can be more fully explained by
considering a contemporary deﬁnition of leadership, presented below. And though there
is not one widely-accepted deﬁnition of leadership, a contemporary deﬁnition
accommodates this new way of thinking about leadership. Actually, Rost (1991) believes
that since the phenomenon of leadership is so complex, having a variety of deﬁnitions is
actually informative. Using one deﬁnition, that supposedly considers both former and
new views of leadership is helpful to this careers study. As the contemporary deﬁnition
is considered, it should be noted that traditional views of leadership, will identify
transformative leadership as a concept of morality. But contemporary views suggest that
transformative leadership should be studied not just morally, but behaviorally as well.
The following discussion about leadership in relation to career development ideas

considers both.

A contemporary deﬁnition of leadership. A deﬁnition of leadership in
contemporary times and to inform a career study, need to attend to both individual and
organizational perspectives. The following deﬁnition is taken from Rost’s 1991 book,
“Leadership in the Twenty-ﬁrst century” which is the formdation of his entire discussion
about past, present and future leadership concepts. He believes his deﬁnition of
leadership considers the accumulation of thinking ﬁom the past several decades, plus
new leadership features. This deﬁnition is used as an eﬁ‘ective way of considering

leadership ideas to inform this career analysis. Rost, deﬁnes leadership in this way:

Leadership is an inﬂuence rglgtionship among 1 ader Il wer who

intend real chanm that reﬂect their mutual mes. (Rost, 1993)

206

The above deﬁnition contains four themes (underlined) that are discussed below.
The following table highlights each of Rost’s four themes. The following discussion
considers how this way of thinking is related to both organizational development and
career development.
ROST’S FOUR ELEMENTS OF LEADERSHIP

From “Leadership for the Twenty-ﬁrst Century” (1991)
Table 4.4

 

LEADERSHIP THEME DESCRIPTION

 

Inﬂuence relationships *Inﬂuence relationship is multi-direetional
*Inﬂuence behaviors are noncoercive

 

Leaders and followers *The followers are active

*There must be more than one followers, and there
is typically more than one leader

* The relationship is inherently unequal

 

Intending real change *Purposefully desiring real change
*Substantive and transforming changes

‘To intend changes does not mean change is
actually produced

*Several changes are intended

 

 

Developing mutual purposes ‘Mutuality is forged in noncoercive inﬂuence
relationship

*Develop purposes, not goals

*Intended changes reﬂect, not realize, their purposes
‘Mutual purposes become common purposes

 

 

This deﬁnition is helpful for shaping this career analysis. Given the emphasis on
organizational learning, Rost’s deﬁnition oﬂ‘ers a systems view of leadership with
contemporary considerations about organizational change and development. For example,
this deﬁnition considers that leaders may intend results that are not always produced
This deﬁnition suggests that a career analysis should pay attention not only to results and
outcomes, but also to the intentions and purposeful behaviors of leaders. Thus, this

deﬁnition enriches the career concepts, provided in the previous section.

 

207

Careers issues have been organized around four broad learning categories,
(therefore, extending and connecting to the previous organizational analysis). (See table
4.3) The ﬁrst learning category, gtivities, applied to career concepts emphasizes how
self-concept and self perceived abilities will change through self-directed activities.
Rost’s leadership deﬁnition suggests that some self-directed activities may shift to being
less controlling and more inﬂuencing types of behaviors among leaders. And that ways
of inﬂuencing may change with experience; thus producing new perceptions about
abilities. Second, this deﬁnition also suggests that career mg may develop, not just
ﬁom realized gains and losses, but also ﬁom intentions. The third learning category,
Wm ﬁom a career perspective considers both personal and
professionals worlds. The leadership deﬁnition suggests that both leader and follower
roles, for the individual and in relation to others should be examined as a part of a
leader’s career. The fourth learning category, m, in relation to careers features the
possibility of conﬂict and blending of individual and organizational values. This
deﬁnition emphasizes the importance of establishing a mutuality between the two.
Contrasting values that seem to originate ﬁ'om individual values versus organizational
values may reveal interesting factors about a leader’s career development. Thus, as a
study of a leader’s career is organized around forn' widely-accepted career features (self-
concept, matmation, multiple environments, and individual versus organizational needs),
contemporary leadership ideas are important to consider and incorporate into this
analysis.

Leadership ideas are essential to the study of a leader’s career. Leadership studies

include both organizational and individual considerations. Therefore, the next section

208

describes how a narrative biography format can accommodate both career development
and organizational development issues.

By way of review, four learning categories were ﬁrst constructed around
contemporary organizational literature about development, change, and learning.
Organizational elements were constructed around ideas that readily contrasted deeply-
ingrained bureaucratic and industrialized ways of thinking about organizational
development. In this chapter, these same learning categories were extended to career
concepts. Then these historically-derived career concepts have been extended further by
considering a contemporary view of leadership. Now a career biography is constructed
about a leader. Features of this analytical format are ﬁrst presented; followed by the
biography. Given the above foundation behind the construction of this career analysis,
reasons why this format is compatible with the goals of this study are now presented.

NARRATIVE BIOGRAPHY
Introduction

Narrative inquiry is increasingly being used for studies about educational
(learning) experiences. (Connelly, 1990) A narrative biographical analysis is a
reconstruction of lifelong experiences, in this case, experiences important to the study of
a career. Narrative helps describe the phenomenon of a career and a narrative biography
(career biography) is an exploratory method of inquiry. In this case, one leader’s career is
studied. John is a leader of the organization that was studied and analyzed in the last
chapter. John is the immediate past Chair of the organization’s Board of Directors. He
was selected for this career study for reasons provided earlier. Admittedly, an analysis of

other leaders could be equally revealing about the dynamics of learning.

209

By using narrative biography, John’s personal, social and professional stories can
be retold. This format also accommodates the desire to place a special accent on learning.
In this case, the leader’s story is primarily a compilation of personal reﬂections upon
one’s own learning experiences. John believes that certain experiences have been
valuable to his career, (past, present, and future), and have enhanced his leadership
abilities. The second purpose is to tell a story in relation to theoretical ideas, about
careers, leadership and organizations. Thus, the emerging story, told in narrative form,
discovers both particularized and generalized elements about a career. The story
highlights ways that one leader thinks about various career experiences and how he
transfers this knowledge to other experiences, activities, and ways of thinking. Also,
these experiences are shaped around four learning concepts based on theoretical views of
careers and leadership. (See table 4.3) The narrative biographical form supports these
various forms of inforrrlation.

The reasons for selecting a narrative biographical form, for a career analysis are
described below. Also certain relevant methodological considerations are identiﬁed. A
brief description of the biographical method, its advantages and disadvantages, are
presented. Also in this section, the biographical methodology is introduced in relation to
its construction around a career study. Career concepts along with contemporary
leadership principles guide the narrative biography that lmfolds in story form, about one
leader’s career. The goal of the career biography, here, is similar to the goal of the case
method — to provide a rich, thick description about organizational learning in relation to

one leader’s career.

210

The biographical method: Deﬁned and described. Biography is a written
account of individual lives, or a written record of a life. Louis Smith, in the chapter on
biographical method from the Hanﬁook of Qualitative Research, (1994), admits there is
a real contention about whether biography is both personal and general. Michael Erben
writes about the problem of writing lives ﬁ'om a social perspective. He, too, describes
that biography is a concern to sociologists, but behaves it should be considered an
eﬂ‘ective way of understanding the interaction between life experiences and history.
Erben goes on to explain that, “Biography attempts to render the illusive self as the
allusive self, in its intriguing spiraling journey between the unique experience of the
individual and the general experience of groups.” (Erben, 1993) Thus, while biography,
asaresearchmethod, hasatensionbetweenthe personal andgeneral, Erbenexplains that,
“biographies are intriguing cultural documents.” .

Why career biography? The main reason for selecting biography stems ﬁ'om its
instrumentality in studies about education and learning. Leaders’ organizational activities
and experiences are inextricably bound to their careers. Biography is a way of providing
anaccent onlearning through the many details ofthe life and careerofaleader. A
second reason for selecting biography is its experimental nature in this type of research.
As noted in Chapters one and two, organizational research actively calls for new and
innovative methods of analysis. As with any methodology, there are advantages and
limits which for the biographical method are brieﬂy stated below. Then the process of
“doing” biography in relation'to this career analysis is provided. The format is
considered an appropriate complement to the case study methodology, utilized in the

previous chapter.

211

Advantages and Limitations of Biography

Paralleling the advantages of using a case study methodology, biography also
draws ﬁ'om multidisciplinary theories and concepts. Biography can even be thought of as
a type of case study method, in the sense that it is “an intensive, holistic descriptive
analysis of a single entity,” . . . a life. In this study, biography is a method for providing a
deepanalysis ofacareer,justlikethecasestudyhasbeenusedasamethodtoprovidea
deep analysis of an organimtion. (Chapter 3)

Admittedly, biography is messy and loaded with criticism as a research method.
But on the positive side, Smith prefers to view biography as a creative, experimental
method of reﬂective inquiry. He emphasizes in the Hanﬁook on Qualitative Research,
that biography has the potential of becoming a way of talking across disciplinary
boundaries. Biography oﬁem several advantages to this study, as did the case study
method. Biography can acknowledge and emphasize or de-emphasize diﬂemnt life
inﬂuences depending on its theme. Biography can describe the complexities of particular
experiences. Also, this method of inquiry is holistic and multidisciplinary in both content
and interpretation, thus supports multiple perspectives. Finally, biography is selective
and can oﬁ‘er the opportunity to accent selected life experiences. These advantages, are
carried into this study, serve to enhance and extend another “way of knowing,” about
organizational learning.

The disadvantages include standard criticisms of qualitative research Biography
is sometimes thought to be ﬁctionalized data. For instance, a biographer may become too
committed to his/her own role in the inquiry process. (Smith, 1994) Guba and Lincoln

(1989) reject the idea that biography should be generalizable; instead they suggest that

212

biographical inquiry offer qualities of transferability. Most critics of biography agree that
biography, like case study (and other qualitative methods), relies heavily upon the
researcher’s judgment about meaning. Rather than viewing this fact as a disadvantage,
Connelly describes biography as a “burrowing” process.

The reconstruction of a life story is reﬂective. Biography, according to Smith,
therefore, is not logic in use, but reconstructed logic. This career biography is grounded
in this thinking. Organizational leaders, asked to reﬂect upon their career experiences
within a particular organization and over the course of their lives, reconstruct their
thinking about their experiences. Leaders’ reﬂections, along with those of the researcher,
create the opportunity to reconstruct, study and reﬂect on certain career and
organizational experiences (to burrow). In this way, new ideas about organimtional
learning, both for the individual and the organization, unravel through a biographical
career story.

The Process of Doing Biography

In preparing to conduct a biographical analysis, certain procedural decisions were
made. These decisions have been organized around Smith’s six considerations, presented
in his account of, “Doing biography,” in the HMook of Qualitative Research. The
“craft of biography,” as Smith calls it, involves (at least) six considerations: (1) Selecting
a subject, (2) Creating and/or using an archive, (3) Finding and developing one’s theme,
(4) Finding the “ﬁgure under the carpet, (5) The form and shape, and, (6) The context and
writing. Smith suggests that these are ways of reducing the various problems often
associated with this kind of research, “problems (that) demand more of creativity than

technical or rule-governed problem solving.” (Smith 1994) As each consideration is

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presented, ﬁrstthe theoretical consideratiOns are noted, then how these ideas were applied
to this particular biographical analysis are identiﬁed.

1. Selecting the Subject - Most biographical work is about a hero or heroine, and
the subject may be recognizable to large populations; but some subjects are only
recognizable in smaller populations. Part of selecting the subject usually involves the
researcher’s personal issues or particular yearnings. Smith points out, though, that
selecting an individual to be the subject is usually vague and ambiguous.

Selecting the subject of this career biography, as a way of identifying individual
inﬂuences on an organization, was quite straightforward. The case analysis-(Chapter 3)
studies three signiﬁcant organizational events of the HC 2000 organization. As it turns
out,therewasone BoardChairduringtheentiretimethatallthreeevents occurred. His
name is John. Thus, studying the experiences of the “top ranking leader” of the
organization, at the time the signiﬁcant organizational events occurred, helps create a
more substantial relationship between the organizational analysis and the career analysis.

2. Create and/or use an Archive - Finding the data is an empirical exercise,
according to Smith. Pools of data will be found in both likely and lmlikely places.
Connelly identiﬁes many important data sources for biographers, such as ﬁeld notes,
interview transcripts, others’ observations, story telling, letter writing, autobiographical
writing, newsletters, etc.

Several sources of data have been collected for this study. An initial two hour
interview with John was conducted according to a protocol designed around career
development and organizational learning theories. (See appendix A) Following the initial

interview, several informal interviews with John were held after various meetings being

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observed. Field notes were collected at meetings, where John was observed ﬁrst in his
role as the Board Chair and later in his subsequent role as Vice Chair. (His term ended
two months after beginning the study.) Written records, memos and other company
documents, many authored by John, provided more data. Finally, descriptions and
opinions about John as a leader were given by other organizational leaders during their
interviews. This also provided (unexpectedly) valuable information to contrast with
John’s perceptions about his leadership in HC 2000. Thus, as Smith suggests, important
data has come ﬂour a great variety ofplaces.

3. Finding and Developing One’s Theme - This is called the plot, the slant or
the perspective. (Bowen 1968). Whatever theme is selected, the goal is to highlight
certain issues and make decisions about what to feature in a life story. Connelly notes
. that when developing the theme for a biography, one problem is always deciding how far
into the past and into the future is far enough? Also, deciding which community spheres
or what depth of social data, is critical. Finally, Smith reminds us that even after the
theme has been identiﬁed, the process of writing the “life” can transform the original
theme.

John’s views and opinions about his own experiences, related to learning and to
his career, primarily guided the selection of the information for this analysis. After being
asked to describe his career, John was then asked to compare and contrast other aspects of
his career to his HC 2000 experiences. (See interview protocol in appendix.) Thus, this
biographical career analysis comes ﬁ-om the information that John identiﬁed as important
to his career in relation to his own ideas about organizational learning. The theme,

organizational learning, is initially presented in the context of how John views his own

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learning. Then later, his views are considered in relation to theoretical concepts about
learning, i.e., learning categories model presented in chapter two.

4. Finding “the ﬁgure under the carpet” - Smith describes ‘the ﬁgure under the
carpet’ as the way a biographical analysis'is constructed. A biographer needsto search
beyond overt behaviors and the facade of the subject, toward the underlying life myth and
the untold story. In doing so, the question of truth - whose truth - will surface.
Connelly advises the biographer to engage in mutual storytelling. “The researcher needs
to be aware of constructing a relationship in which both voices are heard.” (Connelly,

1 990)

In this career story, John’s voice dominates. His opinions and perceptions about
his career, organizational learning, his HC 2000 experiences, and the importance of all
threetohimasaleaderandinhiscareer,arecentraltothe story. Commentsand
perceptions, oﬁ'ered by other leaders about John, are also shared to provide ideas that
conﬁrm and contrast. Finally, some personal interpretation, developed throughout the
analysis of the entire HC 2000 organization, are woven into the career story. Searching
for the truth is of less importance than attempting to create what Connelly calls, “a
construction and reconstruction of a personal and social story.” (Connelly, 1990) This
biography tells a story about organizational learning, as one leader would like it depicted.
The “ﬁgure under the carpet,” is revealed as the leader’s ideas, reﬂections and actions are
contrasted with other leaders’ perceptions and considerations. 1

5. Form and Shape -- Smith describes ﬁve forms of biography along a
continuum: objective, scholarly-historical, artistic/scholarly, narrative, and ﬁctional

biography. (Smith, 1994) Connelly describes biographical forms as writing which “may

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be written in a demonstration mode or an inductive mode; the former adopting more
standard social scientiﬁc forms and the latter Opening up all sorts of possibilities . . .”
(Connelly, 1990) Shades of distinctions along the continuum are inﬁnite, each becoming
a way of bringing into view the individual under study through the eyes of the researcher.

This study is prepared in the scholarly-historical form, but uses a narrative style.
There is heavy emphasis on factual events and the chronology of events; plus recollection
of past dialogue, discussion, and interaction relies on individual memories. These are
most likely ﬁlled with omissions of some details and are bound up in political and social
restraints. Thus, both the data and its interpretation rely heavily on outcomes, results or
consistent recollections about past meetings or activities. In addition, historical events
about the subject’s career are merely selective highlights or examples intended to oﬁ‘er
interesting, thought-provoking information about the career. John was asked to recall and
comment on his career experiences according to constructs of collaboration and
organizational learning. Therefore, above all, John’s story about learning is about to be
retold.

6. Context and Writing — Smith stresses that a life does not exist in isolation
and the biographer must make decisions in keeping with the idea of totality. Connelly
‘ helps guide this consideration by suggesting a rule of thumb: “Avoid making
generalizations and concentrate on the event.” (A process he calls “burrowing”.)
(Connelly, 1990) As Guba and Lincoln point out, the issues for biography, as with all
qualitative research, are less tied to issues of validity and reliability, and more with

transferability.

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The context of this biography is the leader and his career. The intention was to be
sensitive and appreciative of the subject’s life and his entire career while balancing a
central story around the HC 2000 organization Every eﬂ‘ort has been made to tell the
career story, as John told it. .His voice is presented in italics. Others’ voices, including
the researcher, are not. Observations, personal interjections, conﬁrmations and questions
are added to his story. In this way, accentuating the theme of organizational learning is
threaded throughout his career story.

The process of “doing” this biography was described above. The process of doing
biography is reﬂective, and can be called reﬂection-in-action. (Schon, 1983) Similar to
the ways that a case analysis relates historical situations, so, too, does biography. Just as
the case analysis, provides an event-structured description of an organization, the
following career biography seeks out the essence of a leader’s experiences in relation
these same events. Through all this, the career story does not completely ignore other
interesting and important life experiences related to John’s career development.

The Biographical Method: An Overview

The above description about biography as a method of inquiry, in many ways
parallels the case study method of inquiry. A case study provides an in-depth analysis of
a single organization; the narrative biographical analysis, provides an in-depth analysis of
a single leader’s career. Historical, social, and environmental inﬂuences are incorporated '
into both studies. Both provide a vehicle for searching out, ﬁ'om among the vast
assortment, a few ideas, thoughts and activities to draw attention to featmes of learning in

an organizational setting.

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The next several pages recount and retell part of a leader’s career. The leader,
John, has held a signiﬁcant role in the HC 2000 organization. Direct quotes ﬁom John
are presented in italics. In this retelling of his career and learning experiences,
occasional interpretative comments have been added to draw special attention to the
research subject - organizational learning. The following leader’s story is separated into
three main periods: (1) pre-career and early career experiences, (2) career development
leadership experiences before HC 2000, and (3) career development leadership
experiences within HC 2000. The biography has a particular accent on organizational
learning. Also, the story is told, mainly according to John’s perceptions and with his own
words. Following this biography with an accent, John’s views of leadership, learning and
HC 2000 are summarized, again mostly in his own words. Then, the ﬁnal section of the
analysis is organized around the four career elements organized around learning
categories. This section organizes John’s experiences and ideas according to this
ﬁamework for the purpose of studying more extensively, organizational learning. This is
one leader’s story about organizational learning, which includes lifelong experiences and
an interpretive section. John’s experiences with one organization are featured and related
to the same organization that was the subject of the case study in Chapter three.

A CAREER BIOGRAPHY: A LEADER’S STORY ABOUT LEARNING
Introduction

Careers are carried out over the course of adult lives. Careers result from a
variety of experiences that can be marked by calculated moves and adventurous bormds
of activities. There are painful questionings and gainful insights, from both victories and

retreats. Sometimes with ﬁerce resistance and other times with courageous acceptance,

219

personal and professional road blocks and unexpected opportlmities present themselves to
a career. Sometimes events that meet individual needs, may be accompanied by
organizational beneﬁts, but not always. There are blusts of experiences, like winning a
contest, gaining public recognition, the death of a family member, or contracting a serious
illness that can signiﬁcantly alter a career. So, too, can steady inﬂuences during one’s
lifetime aﬁ‘ect a career. Career development is continuous and encircling. No outward
change in one's present occupation or cmrent lifestyle may occm', but inner thoughts and
new determinations may be forming from certain life experiences. Given such a wealth
of information relevant to the study of a career, a biographical analysis readily and
eﬁ‘ectively helps portray a career as an interesting array of life experiences.

This career story, biographically recounted, is about a leader. This story is an
historical, social, behavioral analysis that examines a few developmental, maturational
and. inﬂuential events ﬁ'om one leader’s career experiences. A career biography
(presented in this section) is about just one leader; but threaded throughout the story are
others’ interpretations about this leader’s learning experiences over the course of his
career. Thus, while writing this analysis, and telling this career story, an additional
challenge was selecting those times when the leader’s career changed or became
enhanced after certain experiences.

Theparticularcareer, abouttobe studied, isaboutanimportantleadertotheHC
2000 organization. His entire career and its overall development is of main importance to
the story, but also the leader’s eﬂ‘ect upon the organization is integral to this career story.
As a leader pursues a career, he or she has a hand in producing certain organizational

outcomes. These outcomes not only affect the organization, but the career, as well.

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It is important to keep in mind that the previous chapter studied the development
of a particular organization, while this chapter studies the development of particular
leader (within that same organization). Admittedly neither analysis can avoid .
incorporating information about both forms of development, since they are closely linked.
Some background information on this leader and the reasons for selecting him as the
subject are ﬁrst identiﬁed. The career biography follows. After telling the leader’s story,
several observations are made according to the biographical analysis in relation to the
learning categories.

The Subject :The Chair of the HC 2000 Board of Directors

The Board Chair of HC 2000 having the longest tenure in that position, was
selected for this biographical analysis. There were several additional reasons for selecting
John Not only does he have the longest tenure, but he was the board chair during the
entire time that the three signiﬁcant organizational events, examined in the case study,
occurred. (Chapter 3). Also, during the seven separate interviews with other board
members, John clearly was seen as having been the most involved in HC 2000 activities,
though was not necessarily considered responsible for producing the three outcomes.
This is not surprising, nor inappropriate, given the design of the organization.
Admittedly, being the Board Chair, suggests that the level of involvement and inﬂuence
may be more extensive than other Board members or organizational members. (see
chapter two discussion about HC 2000’s design.) And since part of this study is about
how an individual inﬂuences an organization, the selection of the Board chair is a
legitimate concern that the ﬁndings may not be very transferable to other leaders. John

may have had more opportunity (and ability) to affect the organimtion, due to his formal

221

role as chair; but given the organization’s small size and creative pm'pose, HC 2000
supposedly supports and encourages a high level of inﬂuence from aﬂ its members.
Formal barriers are mostly absent in this organization. John may simply have been the
vehicle that moved the accomplishments of others forward.

Another reason for selecting John’s career to analyze was that, during his
interview, he identiﬁed what he considered valuable learning experiences ﬁom his HC
2000 activities, and most other leaders (interviewed) jrulged their HC 2000 experiences as
less signiﬁcant in their overall learning experiences. Again, the reason may be due to the
demands from being the board chair. John felt the organization had provided him several
speciﬁc and important learning experiences. Most other board members, viewed their
HC 2000 experiences as pretty apical board experiences. There may be several reasons
for this diﬁ‘erence among all potential subjects. Three of the other six board members
interviewed, had just joined the board within the last year and had only attended one or
two meetings. The other three have been, and still are, very actively involved in other
community boards, much more so than with HC 2000. And ﬁnally, most anticipated that
John’s experiences were more extensive. All the leaders (interviewed) pointed out that
by assuming the responsibilities of board chair, this automatically increased one’s level of
involvement well above that of simply being a board member.

There is one other contrast worth noting between John and other board members;
one that may explain the perceived differences among the leaders regarding learning
experiences from their HC 2000 experiences. John is not yet forty years old. All other

board members, interviewed are over ﬁfty-ﬁve years of age. If careers average thirty

222

years, then the other board members have had twice as much time pursuing their careers
(and having learning experiences) than John.

As Smith suggested, in his chapter about “doing” biography, (1994), the process
of selecting a subject is somewhat arbitrary. John was selected because there was more
data, related to the HC 2000 organization and to experiences viewed as developmental.
Again, John ’s words are presented in italics.

A Career Biography: One Leader’s Story About Learning
Introduction

John is a ﬁiendly man, small in stature, with slightly graying hair; he readily
smiles back at you, when you smile at him. He has a quiet demeanor, sometimes. For
those who come to know John, here or elsewhere, his career might seem like one to
emulate. Actually, since we don’t know the “end” of his Career story, at ﬁrst the
historical details of his leadership career seem very mundane.

John is college educated, became a corporate accountant after college, was
mentored by a corporate CEO to become a chief ﬁnancial oﬁicer, and now is CEO of his
own company. He’s in the automotive supply business, which is part of an industry that
has had very tumultuous times throughout the last decade. It appears, today, that John’s
company holds a secure and successful place in a fairly volatile industry. John is
respected in the community, though not as well known as other board members; and he
ﬁnds time from his busy life as a CEO, to enjoy his children.

What makes this career story more surprising and unusual than some others, is
that John is only 36 years old. John is a very yormg CEO. As a member of the HC 2000

Board, composed only of CEO’s, John is considerably younger than the rest. Most other

223

board members are nearing or have surpassed the age of 60. Most other board members
view themselves in their ﬁnal career stages. So while John is asking himself, “What
next,” other board members are reﬂecting upon past successes. John isn’t nearing the
end of his career, but instead views himself right in the middle of it!

i Not surprisingly, while the other board members have long lists of community
activities, John has done considerably less of this type of work. His list of community
activities is much shorter than the other board members. Interestingly, the President of 1
HC 2000 (consultant) believes that John has been “hand-picked” by the other, more
senior CEO’s, to follow in their “commrmity leadership” footsteps. Thus, some believe
that John is being “groom ” to take over some of their community service roles, as
several prepare for retirement.

Yet, John’s service to the HC 2000 organization, an organization with a
commlmity-based agenda, signiﬁcantly exceeds that of other board members. He has
been the Chair of the Board dming a very active period of the organization’s history. His
involvement, at least in the amount of time spent, is many times greater than any other
board member. Everyone admits this openly. This is not surprising since he has been the
Board Chair and, in that role, has been expected to give more time that other board
members. Before describing John’s experiences with the HC 2000 organimtion, some
history of John’s pre-career and early career years is helpful to this career analysis. John
was asked to reﬂect on those years and to identify times, events and people that he

remembers as learning experiences, and thus developmental to his career.

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Pre-career and Early Career Years

John bought his own company at age 28 and has grown it into a multi-million
dollar enterprise in just eight years. His company is considered ﬁnancially healthy in an
industry, that has been and still is volatile and very competitive. He admits to having
lived through threatening times, some of the most critical occurring just after he
purchased the company.

John is considered a young CEO. Most people don’t achieve this level in their
careersuntil muchlaterinlife, ifatall. Heisapparentlyaleaderwhoisbeing
“groomed” by older, CEO’s, but no one is sure why. Why was John “selected” to be
mentored, in this exclusive club of CEO/Community leaders? What is special about John
that caught the attention of other community leaders? Unfortunately, this never becomes
clear in this investigation.

Before we look more at John’s career today, a brief look at John’s earlier life
reveals nothing very remarkable, nothing very unusual, nor outstanding. His childhood
sounds average and drab. There were no awards nor recognition of any particular talents.
When asked to describe childhood and adolescent experiences, and people that inﬂuenced
him, he remembers one person — his father. His conversations with his father as a youth,
were helpful in shaping his adult years as a leader

Certainly one person my father was very signiﬁcant in my career. My father
was a very successﬁd person who worked in business. He worked for other people, which
is probably one of the reasons why I am not doing that, because he wasn ’t necessarily
happy in that aspect of his career. In terms of business, I get the mq'ority of my insights

ﬁom Iearningﬁ'om my father. He was very good about bringing stuﬂr home and bringing

225

the knowledge to the dinner table. You know we had regular discussions. I never
realized what I was picking up when he was doing that. It was an amazing amount of
information! And my father was a very giving person of his time. He was always active
in local government on a volunteer basis - planning commissions, city council where we
resided and. those types of things. So community service was certainly something I picked

up as a value ﬁ'om him.

Though John apparently grew up in a stable family environment and was
“exposed” early to thinking about leadership, the idea of being a leader never really took
shape until his college years, according to John This again may not seem unusual since
many don’t really know or decide on a career until either entering college or during initial
college years, or later. Again, John’s career choices within his life course seem typical.
In fact, college years are often intended to help individuals shape their career plans and it
seems that this is consistent with the time in John’s life, when he began making
consciously shaping his ﬁrst career decisions.

A long pause followed a question about identifying a turning point or signiﬁcant
event that took place before his career years or early in it. Finally, he answered by
remembering a time, during college, that was a “clue” about his future as a leader. He
realized, in college, that he not only liked being a leader, but also might be good at it.
This is John’s description of a major turning point prior to his career years that he
believes signiﬁcantly inﬂuenced his career:

This was my ﬁrst taste of leadership when I was student government president

at the University Of Detroit. It started of as an appointed position replacing someone

226

who had resigned and then being elected eventually to the position. It turned out to be
very, very interesting work and a very, very good experience in terms of trying to work
with a great variety of folks. University of Detroit was a unique campus. While this kid
grew up in a very white suburb, Detroit had a 35% to 40% population of Aﬁican
American students. Typically they would live in and around the campus, where the white
students were typically commuters coming in ﬁom the suburbs. So you really had two
universities, at least in terms of what they like to do. Student government was involved in
student activities, as one of our goals. .

My ﬁrst work was, ‘How do you bring two very different peoples together? ’ In
some cases there was a lot of racism that existed, probably on both sides. I ’m clearly
aware that there were more racists on the white side than the black side, but my election
was done mostly by African Americans because the commuters were less active and less
involved in the school. So I was elected to the job, but was having to work with a very
split group. I think we had a signiﬁcant effect and I think we did a lot of good things to
try to heal the divide. We did a lot of interesting joint activities that had never been done
before at the school. What used to be either white events or black events, like bringing a
rock band into town that was not going to be acceptable to the Aﬁ'ican Americans. So
what we would do was bring two groups of entertainment, sometimes going on
simultaneously. Sometimes we would mix and match. It just seemed to me with a very
limited budget that to do an activity that worked with half the crowd didn ’t make a lot of
sense.

This was a very interesting experience. I got an incredible amount of self-

conﬁdence from it. When I came out of college at a young age (20), I was extremely

227

cocky. I got a lot of self-conﬁdence from my ability to influence that group of people and
really to do leadership. I certainly was not an academic star and I got a lot more
pleasure and self-esteem out of performing in that type of role than I did you know,

doing something more academic. I received a number of awards~ that the school gives out
- kind of like the leader-scholar thing - and I was always thinking they had to probably
really stretch in order to get the scholar part in there for me.

In contrast to not having a clear direction in his pre-career years, today John
describes how his career depends on always having a clear vision. I think the two critical
things about leadership is, one - having a vision, and two - the ability to communicate
that vision. Everything else is style and I think that all kinds of styles would be eﬁective.
John doesn’t mention that his father had a vision, and admits to not having a vision while
in college or even just after. He certainly doesn’t suggest that he set out at the beginning
ofhiscareertobecomeaCEO. Insteadhisstoryrevealsthathiscareerpathhasbeen,
and maybe continues to be, rather vague. Yet, he believes that Visioning has become
critical to his leadership success, past and future.

When asked, John could offer no other tin-ning points or signiﬁcant events that he
feltshapedhis early careeryears. Infathhereseemsto benothing particularly
remarkable dming his pre-career or very early career years that he could attribute to his
“faster than normal” rise to the top of an organization. His leadership experiences during
college, simply seemed to conﬁrm that John might enjoy and be good at being a leader.
His father provided a forum of some stimulating discussion and thought about leadership,

and John’s college years, seemed to give him an opportunity to practice some of his

228

leadership skills. Today, he suggests that his career has been successful because he has
taken advantage of opportrmities as they presented themselves.
John’s Career Development from Several Leadership Experiences

Learning from another leader. After college, John went to work for a small
manufactrning company as an accountant and later as its chief ﬁnancial ofﬁcer. His saw
hisfuture, starttotake shapepartly becauseofwhathe learned ﬁ'omJoe. Joe wasrny
bossﬁom I 982 to I 988, until I bought this business. He was brilliant in a lot of very
interesting ways; he had a very interesting leadership style. He was supportive of you as
an individual; he gave you almost complete authority within the area you were
responsible without much oversight at all. I took the job working for Joe when I was 23.

This laissez-faire trusting style, that John highly respected and thrived under, also
became Joe’s demise. John learned that, too. John admits, as do most leaders, that he
made lots ofmistakes duringthe earlypartofhis career, butthathe learnedalotﬁ'om
these mistakes! I made some pretty serious mistakes; but the interesting thing about
those mistakes was, if you came to Joe and pointed it out, there was nothing ever said
about it again. I think he recognized that each person was doing their best and as long
as you were up-ﬁ'ont with him about the mistake, he ﬁgured you had learned from the
experience. And so that was a very positive experience from that standpoint. After
oﬁ'ering this testimonial about having learned a lot from Joe, described as a great role
model as a leader, John’s next comments are sm'prising.

John completes his description of Joe as one of the best leaders he can think of, by
saying: But, Joe was also one of the worst managers I have ever worked for. John goes

on to explain how it is possible for Joe to be both the best and the worst leader he has

229

met: Joe wasn ’t real judicious and he didn ’t manage the organizational leaders. He
would have other people in his organization that were not necessarily as competent as
maybe I was, (as I look back) and he would give them the same rope he would give me.
This actually caused great conflict between his managers because you were constantly
working to bail out another person We never ever met as a group to talk about the
organizational problems. Joe didn ’t like conﬁontational type stuﬁr so he tended to talk to
people one-on-one. We never talked about strategic direction and it was really
management by lobbying. You would go and make your case and the other person whose
area that might be affected would not necessarily be there and usually wasn ’t.

I do have a lot to be thanlgﬁtlﬁ'om him as an individual, but this was clearly not
the most positive (leadership) style. He did certainly aﬂ’ect the way in which I manage.
Anytime I have a problem, I take the exact opposite approach today in terms of managing
organizations (than Joe). The minute somebody comes to my oﬁice to tell me about
something that is going wrong, I make sure that I gather up all the people that are
involved and bring them in and say, ‘OK, let ’s sit down and talk about it. ’ In this way you
don ’t get into this, he said - she said type of stuﬂ In some ways it was a positive
experience that I got ﬁom Joe, but that ’s one of the reasons I still believe that his
organization eventually failed There was no management organization During the six
years I was there the company went ﬁom an $18 million tool shop to over $150 million.
Five years aﬂer I left the company, it went into bankruptcy. ”

John’s story becomes very convincing story. This experience offers something
more about John’s concept of eﬁ‘ective leadership. This is a subtle way of suggesting that

John views himselfas a leader who can be trusted. John has sharedhis views about some

230

of the complexities of leadership, by recognizing that Joe was both a good and weak
leader. Through his experiences with another leader, John learned early in his career that
one leadership style, that worked for him, certainly didn’t always work for everyone, nor
for the company. This perception of learning demonstrates John’s ambivalence about
modeling both positive and negative leadership abilities. It seems that John has
developed an understanding about his own positive and negative leadership attributes.

Learning through formal training. Today, John emphasizes how “having a
vision” is an important part of his leadership activities. John admits that the vision behind
HC 2000 was not his, but rather the vision of another leader whom be highly respected
He retained another leaders vision for HC 2000 organization as he carried out his work
Either way, the importance of having a vision to guide leadership activities remains high
on John’s list of important leadership qualities. Research often talks about the
importance of setting goals and creating visions. But it is unlikely, that John came to this
conclusion (about valuing Visioning processes) from any management literature or
come.

As we explore more about his leadership experiences, John is candid about his
views of learning, from others and from certain experiences. When asked about formal
education and training that enhanced his leadership abilities and his career, John is
abrupt, (almost seems waiting for a reaction): Quite ﬁankly I have kind of an almost
negative response to education, particularly as it relates to leadership! I think we develop
our leadership abilities ﬁom learning ﬁom the experiences that people encounter in our
lifetime, not ﬁom formal education. John sees no value in formal training, at least with

regard to becoming an effective organizational leader! He has taken an extreme position.

231

If a line representing a continuum was drawn, with one end representing learning ﬁom
actual experiences and the other end representing learning ﬁom formal training, John
would place his learning at the far end with learning only from actual leadership
experiences. ’

Actually, the other CEOs, (interviewed), also would pick a point along a learning
continuum somewhere closer to actual experiences. Many mentioned the possibility that '
maybe one or two seminars or educational retreats had “some limited value” and
contributed “some” to their abilities as leaders. Most, though, eagerly ranked actual
experiences, good and bad, and learning ﬁom others, as ways they best learned about
leadership and which they believe have been signiﬁcant contributions to their own career
development. More sharply, John wouldn’t credit even one formal educational or
training experience as contributing to his leadership and his career.

The reason he holds this extremely negative position is curious: I have come to
the conclusion that you cannot teach leadership. I think, however, that leadership can be
learned It just can ’t be taught. And there is a big diﬁ’erence between learning about
leadership and being taught leadership. Couple this view with his conﬁdence that he is a
better leader today than ten years ago, one can conclude that he believes his success as a
leader is due to his ability to learn from experience, not from someone trying to teach him
about leadership. This perception, certainly, suggests that John’s ability to reﬂect on and
transfer new knowledge from his various experiences to future activities, has been crucial
to his career development. One can conclude that John pays close attention to what he ,
learns ﬁ'om his experiences with others, maybe more so than being “taught” new facts or

information at formal educational seminars or workshops.

232

John shared a few additional insights. in this extreme view, which explains a
distinction he makes between teaching and learning. John seems to have a very narrow
view of what he considers the “teaching” of leadership. As he continues to think about
how he learns, he enthusiastically describes what he learned ﬁom two management
consultants (and makes a distinction in what they tried, but failed to, teach him). I
brought in some people who work with a management style which is known as the
Deming style. This was very helpﬁd for us as an organization - to crystallize some
general thoughts about how we are and to make sure that our workforce remains
empowered We created a culture which is what’s important in our organization.
Empowerment becomes natural; otherwise we might rely too much on the activities of
one or two people and then the organization can ’t continue to grow. We worked with
this group for two to three years and continue to work with them. This was a bottoms-up
planning process so that now all things are very natural parts of the way we run our
business. ’

John goes on to describe why he thinks many pe0ple learn much more from
having had the experience, rather than being taught about it. He discusses traditional
learning, versus nontraditional, and his understanding about diﬁ’erent types of learners.
He describes how he supports the Myers-Briggs assessment tool that was provided to
ALL his company employees, and also seems surprised that I have heard of the tests. The
people who work here were not particularly successﬁrl academically and have dwerent
learning styles. This assessment tool has become a very important tool for our
organization. We use tactile-type training, which is a much-more hands on type of

training. He attributes valuing this type of training to the current success of his

233
organization. Given his industry, automotive parts production, improved and adapted
skills of his workforce were necessary because of many technological changes in the
industry. It (hands-on training) allowed them (employees) to think of themselves
differently. ' Non-traditional learners typically don ’t do well academically and that tends
to make them fearful and even perform worse in an academic setting. These are the kids
who weren ’t going onto college. We went after them diferently than in a traditional
academic setting.

Deming leadership concepts and Myers-Briggs tests are formal and widely
respected leadership development ideas. John believes that the results ﬁ'om those training
activities, have contributed to his own leadership development. Though he sees these as
informal learning experiences, not formal teaching experiences. Finally, he said, I
somewhat jokingly: Maybe good leaders are born, not made (taught)?

Self-perceived abilities: conﬁrmed and practiced. Career development
concepts include studying self-perceived abilities. One of John’s most signiﬁcant
abilities, that he talked repeatedly about in cm interview, and observed at several
diﬁ'erent meetings, are his abilities as an effective negotiator. This aptly describes John’s
self-perception: I’m a systems thinker. I take the big picture approach That doesn ’t
mean I don ’t get into the details. I say, “Here is what I think Here is what we are trying
to accomplish. Here ’s how I think we can accomplish it. ” And I am much better at
arguing the case orally, than I would be to put it in writing. ” John recognized his
negotiating skills back in his college leadership role. Today, he values this skill and

know that he regularly uses it.

234

John believes his {own career has been enhanced by his negotiation skills. There is
also another ability that he believes others attach to him, but that he modestly denies.
Intelligence. He stresses that you don’t have to be intelligent to be a good negotiator. He
does not see himself as intelligent. Yet, he confessed, several times, that many others
probably see him as possessing that ability - intelligence. When you are sitting in a
room and people are trying to work something out in terms of a problem. Either you can
come up with a solution or can present something that makes sense to people. I think
they react to that and say, “ Wow. That is really a good idea. ” And that gives the
impression that you are much smarter than you really are. . . . I was at a high school
reunion the other day, my 20th year reunion, and people were telling me “Boy, you were
always so smart. ” I thought, “Gee you must have never seen the grades I had 3.0 when
I graduated barely. ” I think I still have this reputation for being very cerebral, which I
don ’t know where that comes from because I don ’t look at myself that way. I think that I
would be characterized as extremely intelligent and I ﬁnd that very ﬁtnny.

John describes additional abilities that he believes are important to his career
development. I certainly think I learn very well ﬁom situations because I am very very
sensitive, particularly when I am in a group. I am sensitive to what direction we are
going. And you lmow I can sit and listen to a discussion and oﬂenﬁnd a solution even
though there might be divergent points. What is it that will get people to where both
think that they are going in the right direction? You do that I think by pulling people
back and saying, “ UK What is it that we are all trying to accomplish ” I would certainly

put that as one of my strengths.

235

Finally, John offers interesting reﬂections about himself. I don ’t think I would be
considered warm and caring because that is not a side that pe0ple typically see. I 'm not
sure that I ’m always seen as trustworthy, interestingly enough. I think others think that I
have some other motive. I deﬁnitely think that of pe0ple who trust me, I would be very
well liked and if they don ’t trust me, I would be unliked Trust is a real interesting one,
because I think that I try hard for people to know exactly where I stand on something, but
they are not really sure whether to trust me.

John adds one more strength to his list: I think humor would probably come up. I
am very good at using humor to lighten up tense situations, poke a little ﬁm at myself or
even the other people that are there, and get them to lighten up.

Unlike other board members, John didn’t mention any technical knowledge,
special memory or recall abilities, or admit to having any particular capacity for
communicating information to others, except as noted above in the form of negotiating.
However, at several board meetings, board members often acknowledged that John’s
knowledge of health care (consistently viewed as a complex subject) was much more
extensive then their own. He is recognized as one of a few board members with a “very
good understanding” of the health care industry. During discussions, John’s comments
gave the impression that, in fact, he did know and understood many details about the '
industry. He engaged in conversations, “intellectually,” about aspects of health care
pricing in relation to government regulations, hospital practices, and physician’s roles in
the marketplace. He discussed the politics of health care, nationally and at the state level.
At meetings, he built convincing ideas about the similarities and diﬁ’erences in measuring

quality within his own industry and in the health care industry. No other board members

236

were quite as eloquent. And ﬁnally, during the other interviews of several board
members, they graciously acknowledged that John’s leadership contributions to HC 2000
have been signiﬁcant and the primary factor leading to the organization’s increased status
in the local community. Several board members noted that board decisions would
probably not have happened at all, if John hadn’t provided the type of leadership needed,
especially as conﬂicts arose.

Signiﬁcant career event. John was asked to consider his entire career, and select
atimethatposedaseriousthreatto hisﬁrture. He selectedanddescribedatime,thathe
believed his negotiating skills had provided the solution for overcoming the serious .
threat, which proved he thought had secured his company’s ﬁrture: Soon after becoming
CEO (of his company), GM, which was 76% of our business, asked for substantial price
concessions ﬁom us. They threatened to take their business elsewhere if we would not
agree to their demands. We could have lost the business and so it sticlm out in my mind
as a serious threat. I still remember it and still think about it at times. I went into
negotiation mode which is certainly one of my better modes. At times, it got tense. I
think we gave them more (concessions) than what we needed to because I didn ’t brow
how much they were bluﬂing. Did they really have somebody else to do it and for less
(supply the products)? Ultimately the test is whether you keep the business or not. We
did give them a reduction; although we didn ’t give them what they wanted In
retrospect, I think there was nobody who could have possibly done it for what we were
doing it. We kept their business but that was certainly a very scary time because GM was

such a big part of our business. A lot of lives were eating oﬁr that work

237

Admittedly John’s career contains many more inﬂuences than those mentioned in
. this study. Though limited, these descriptions are offered as a sample of information
about the people, training, situations and self-perceptions that John shared during our two a
hour interview. These thoughts, along with the following ones about his HC 2000
experiences, provides more detail about a career and personal perceptions about learning
over its cause.

' Career Development through the HC 2000 Organization .

Joining the organization. John acknowledges that when HC 2000 was formed, a '
vision had been already created by the organization’s formder. John retained this vision
and helped shape it into action and achievement for the organization. Along the way, at
times, he described his experiences with the HC 2000 organization as very challenging
and times of learning. His negotiating abilities, a self-described strength he brought to
the organization, have proven helpful in his HC 2000 activities. Also, he believes that
several experiences/interactions with other HC 2000 leaders 2000 and as he canied out
his responsibilities as Chair were valuable learning experiences.

John’s original reason for becoming a member of the healthcare board is very
straightforward. I joined because Jerry asked me to join, not because I had any interest
in healthcare. Jerry is on my board and you brow, it ’s like, “You scratch my back and
I’ll scratch yours. ’ But also, I said ‘Hey, Jerry, if this is important to you, then I '11 do
it. "

John’s interest in the organization was out of loyalty to another leader, not to
solve a problem, achieve a particular purpose or the change the healthcare industry. After

Jerry left, and after a short nine month tenure by another chair, John was chosen to

238

becamethethirdboard chair. Hewasthethirdchairintheﬁrsttwo yearsofthe
organization’s inception.

When John took over the “top” leadership position, HC 2000 had barely begun to
ﬁrnction as an organization. Now, two years later, at a recent annual meeting, John stood
before a small group of cOalition members, and proudly announced several signiﬁcant
accomplishments of HC 2000, achieved dming his tenure as Chair. He and others
describe the ﬁnancial health and ﬁrm prospects for HC 2000, as much more signiﬁcant
now than when the organization began. He, and many others, predict that the
organization will become a major “player” in the industry and become an important
impetus that constructs needed changes in community healthcare reform.

The case study thoroughly describes the role of HC 2000. It was formed to
provide a voice and a solution to the problem of rising health care costs; and members Of
this business coalition, look to the leaders of the company to achieve these goals. (See
appendix and Chapter 3 description of HC 2000) Today, John’s description of why HC
2000 is a good solution to a serious problem is consistent: Jerry started it (HC 2000) as
a purchasing cooperative but quickly decided that he needed to move it to a community
model because there was some resistance. I think this community has an operating style,
particularly in the business community, which is particularly collaborative. There. is an
amazing amount of cooperation among businesses which is very unique. So you have
ﬁiends that are on the boards of these hospitals and then you have the purchasing
cooperative and you don ’t really want to do battle. Yet, we ’ve got to ﬁx the problem of
rising healthcare costs. So I think we kind of mudtﬂed around really that ﬁrst year of

trying to develop policy, etc. Then Jerry leﬁ.

239

So we actually had a period of time that the organization in my mind almost fell
apart. It was when I ﬁrst took over as chair. What happened was the hospitals had
decided that, in this vacuum of Jerry leaving, they might be able to disband us. So we
had some very key membership resignations and the influence of Jerry was no longer
there. We had gone out and tried to get a contract for lab services at the hospitals and
we did it differently than the way Jerry had proposed that we operate. That was one of
my ﬁrst acts. We tried to deal with just one. Then we said ‘Nope, we ’re not going to do
it that way. We are going back to the way we originally planned ' Jerry had been very
public about the way in which he was going to hande the hospitals. I said ‘We have. to
stay with the way in which we formed and on that basis is how we will proceed ’

Learning to lead leaders. John took over as leader of this very new
organization. He probably didn’t intend, necessarily, that he would extend his leadership
abilities by agreeing to become a leader of leaders; but maybe he did. Now today, he
highly values this career experience. He thinks his HC 2000 experience has provided a
valuable learning opportunity for him. Today, he laughs at his foolishness - believing he
could actually lead leaders. John says he was “persuaded” to take over the role of Board
Chair, composed of CEOs, who represent much larger companies. All other board
members are older and better known in the community, than John. There seems to be
little doubt about being “qualiﬁed” for membership on the board; and any concerns he
might have had about possessing limited knowledge about health care is now
overshadowed by the realization that leading these other leaders proved to be the greater

challenge. As it turns out his limited experience as a “leader of leaders,” though, has not

240

become his demise, but instead an opportunity for frnther developing his leadership
abilities. In turn, he values these experiences as beneﬁcial to his career.

John’s comments suggest that learning how to carry out speciﬁc organizational
activities in an industry he knew little about, were minor when compared to what he
needed to learn about being a leader of leaders. Though John considers one of his
strengths as being able to bring people together around divergent points, he admits that
getting the board to do this, on several occasions, was like trying to herd the cats, which
he “laughingly admits is impossible

John reﬂected on his experiences as the Board Chair, composed entirely of CEOs:
I had to recognize that I was leading leaders and I ’m not sure that is possible without a
collaborative process. I don ’t think so, because if you are not willing to work with that
group of people - the type that says, “Hey, if you won ’t listen to me or take my thoughts
into consideration and I can ’t somehow inﬂuence the process by my activity, then I ’m out
of here. ” I guess I never really reﬂected on the experiences in terms of what have I
learned ﬁom it, but clearly I ’ve learned some things in terms of dealing with that group
of people in that type of setting, in getting to where we had to get.

Here is his account of a time when he feels he was successful at herding the cats.
It was very interesting how we agreed to the merger. We started with some in favor and
others adamantly opposed So we agreed that we had to condition our approval. As we
sat around the table there was so much disagreement over what those conditions were.
What we did was if we could not get unanimous support for a condition, we crossed it
out. What we ended up with, interesting enough and somewhat accidentally, was an

unconditional support for the concept of the merger - not the merger, but the concept of

241

the merger. What we ended up with in our public release statement was unconditional
support, which was much stronger in support than we actually were. We sent a letter to
the hospitals indicating the ten or so conditions which turned out to be a way of cleaning
up some of our concerns by working with the hospitals. The outcome was somewhat
accidental. I remember watching it happen in a meeting and not even reﬂecting on it
until mierwards. We ended up with no conditions and that was the worst thing we could
have done. I mean, you brow, we certainly should have had those conditions somewhere
in there, even though we didn ’t have the answer for them! The merger became something
we could agree to under certain conditions. The only thing was we couldn ’t agree to was
m those certain conditions were. ”

Our reward was getting everyone (all board members) to support the merger and
to support the concept of what we were going to do with the hospitals. That was the
reward and that was an extremely ﬁustrating process. You brow the only way you could
do it was to make sure that everyone understood what we were trying to accomplish and
that we did have commonality around that. This was something that we deﬁnitely had to
keep reernphasizing. We were after lowering health care costs and yet ensuring the
survival and success of all the health care providers. Fair pricing and not less or worst
pricing than what other people out there had And moving over three years to having
pricing very close to other discounters. "

Learning through negotiating. John describes a time that his negotiation
prowess proved critical to the HC 2000 organization. He considers this another valuable
learning experience. He depicted it as an . . . unplanned but brilliant strategy. No other

organization was coming out in favor of the two hospitals merging (which was being

242

challenged by the Federal Trade Commission). So we came out in support of the merger,
but still didn ’t get our purchasing contracts with them. We started meeting with the
hospital boards, and we said “Look, we are the only persons out there supporting you in
favor of the merger and if you will not negotiate with us in good faith, how can we
continue to be supportive of this merged organization, where you will increase your
market clout. Yet now you reﬁise to negotiate with us in good faith ” That ’s when they
agreed to sign the contract and it all happened very quickly after that. It seems that
John’s negotiation skills were critical to this organizational activity

John does not take credit for the idea of supporting the merger, but is credited by
the other board members as being reSponsible for getting the board to reach an agreement
on this issue. Also John is credited, by others, with developing a working relationship
between each hospital and HC 2000 (purchasing contracts). It seems that his negotiating
skills served him well both times, as he inﬂuenced the board members to support the
merger or reach a consensus and negotiated with very powerful, initially reluctant,
hospital administrators.

Learning from being involved. Finally, John described how one of his basic
leadership principles Were transferred to his HC 2000 experiences - having and
communicating a vision. John recalls what was involved in getting the board to agree to
proceed with negotiating the hospital contracts: We eventually got support out of the
board and it was done collaboratively. We listened We had tons of meetings. We would
meet individually with people who were strongly one way or another. We allowed
disagreement to occur and recognized that we wouldn ’t necessarily all agree. Eventually

we got everyone to see that there was a way of dealing with this issue (the hospitals).

243

After a very long year, one of the things - as we reﬂected on it - what this group of people
did was eventually come together and see the vision, even if they didn ’t agree on
everything! .

By that I mean we agreed to deal with all four (hospitals). Deal with them
equitably. Deal with them in a way that it shouldn ’t hinder any one oftheir abilities to '
survive. You brow typically purchasing cooperatives start to steer their business (and
patients). We have basically taken a ‘no steerage ’ pledge which made it more diﬁ‘icult to
negotiate, but was very critical I think to maintaining our organizational vision I think
this was the reason we got the contracts. We also came at the hospitals very hard with
statements like, “We are a partner and are really trying to collaborate. We are not
trying to hold anybody hostage here. What we are trying to do is get the best price for
our companies and these are prices that in no case are less than the reimbursement you
are now getting ﬁom Blue Cross-Blue Shield Medicare or Medicaid Therefore, you
should not object to this or else you should stop giving those discounts to somebody
else. ” That became our theme and we worked through that very slowly with the
hospitals. We wrote up a timetable on when to have a contract and be ready to go. It
took us a good year.

John has beneﬁted, (and learned), he believes, because he got actively involved in
organizational activities. Certainly John recognizes his way of learning is not necessarily
by simply making direct observations, but by being actively involved and engaged in
activities. I sat on a hospital board for four or ﬁve years and I brew just a smidgen of
what I now understand about healthcare and how it operates. Although the same people

are sitting on those hospital boards, they clearly don ’t operate as strong, because the

244'

browledge and understanding reside and remain in the hands of the administrators. We
are probably a much stronger board than any hospital board in terms of being much
more active. We had to listen and to get consensus ﬁom our group if we were going to
go forward and march down the road Where the (hospital) administrators can bullshit
the board members to a certain extent because of their control of the browledge. I would
do things dlﬂ'erently if I was on a hospital board today!”

Reﬂections about Career Learning Experiences

John’s reﬂections about his leadership experiences with the HC 2000 organization
over the last two years depict a sense that this is a small success story, not only for
himself but also, for the organization. Most board members interviewed indicated that the
work and time involved in being a HC 2000 board member has either been “pretty
typical” or even “less than” with some of their other boards. John indicated that his work
forHC 2000 has beenfargreaterthanheexpectedand muchmorethanhis other
“vollmteer” roles. Along With this signiﬁcant level of involvement, he agreed that some
of his HC 2000 experiences have been learning experiences, that can be characterized as
contributing to, not detracting from, his career.

John came to HC 2000 with several self-directed, perceived leadership traits and
abilities. First, he describes his negotiation skills as one of his strongest modes and also
suggests that being able to bring diverse views together and his use humor are already-
possessed abilities. Also, he describes how he learns ﬂour a good debate. I think one of
the things that I use in situations, and that I am very good at, is using humor to lighten up
tense situations. I poke a little ﬁln at myself or even the other people that are there, to get

them to lighten up. . . . Also, most people blow I don ’t have much tolerance for a lot of

245

chit-chat, but I love a good agument. I have never leaned so much as when I am in a
good agument. I think that is a great way of leaning. Sometimes I will ask a question
and alreaay brow the answer or think I brow the answer, just to see how somebody else
will answer it. A good way to stat a conversation is to maybe get into a little bit of
debate with them. I deﬁnitely lean that way.

His other leadership ability, which John characterizes as critically important for
him is having a vision. He breaks this down in two steps: I think the two critical things
about leadership is, one - having a vision, and two - the ability to communicate that
vision Everything else is style and I think that all kinds of styles would be eﬂective. John
explained: The key to leadership is creating a vision for the people about what direction
to go in and why. And being able to communicate that in a way that people understand it
and ae willing to do that. Obviously if you have to put a ﬁre out, you have to be more
direct. I ’m not sure that I even credit commanding and controlling styles as being
leadership.

John’s ability to “communicate that vision for people to understand what direction
to go in and why,” he sums up in another way: I am very very sensitive paticulaly, when
I am in a group. I am sensitive to what direction we ae going. And you brow I can sit
and listen to a discussion and often ﬁnd a solution even though there might be divergent
points. What is it that will get people to where both think that they ae going in the right
direction You do that I think by pulling people back and saying, “0K What is it that we
ae all trying to accomplish ” I would certainly put that as one of my strengths.

And ﬁnally, as John thought more about his own leadership, his ideas about being

considered trustworthy kept surfacing. When asked how his employees would

246

characterize him, without any hesitation, he said: They see me as a visionary, but also as
warm and caing. But they brow I push real had Yet when asked how people in the
community would characterize him, he was thoughtful, and said: I don ’t think warn and
caing would come to mind; that is not what they typically see. I think I would be
chaacterized as extremely intelligent. I ’m not sure that I’m always seen as trustworthy,
interestingly enough They think that I have some other motive. Trust is a real
interesting thing. I think it is not unusual for people to brow exactly where I stand on
something and I think it is because I am very clea, that I am not always trusted

Now after four years of involvement with HC 2000, (since the organization’s
inception) and two years as its “top” leader, John was asked to reﬂect on his leadership
experiences at HC 2000, as both learning experiences and as part of his career
development. Two concluding ideas are worth mentioning. First, J ohrl looked ahead to
leadership activities with other boards and how his experiences at HC 2000 will beneﬁt
him. Second, he admits his ﬁ'ustration at trying to “lead leaders.” In both instances, he
describes how he has learned some valuable lessons by being involved with HC 2000 and
would carry out boﬂr activities diﬂ’erently, better, in the futm'e. ’

Here are John's reﬂections about leadership and learning at HC 2000: I think I
would be a lot better at it the next time. I have a much better idea on how to accomplish
it in the ﬂiture if I was faced with a simila situation I think what we did was what I
would call becoming a really good boad It would be interesting to take this style and
some of the things you lean to the hospital boads. I don ’t think hospital boads operate
this way. The whole idea was of how to get this group of very strong willed people to all

go in one direction How do you herd the cats? That was the real difﬁculty in our

247

meetings. I think a lot oftimes we have other community activities with that same group
of people and some did not take as active a role as they might have in the discussion As
a result, what you end up with is a top leadership decision of what ’s going to happen
Some pe0ple don ’t stay involved as a result because it 's not going in the direction they
want it to go, but certainly something can be leaned ﬁom this experience. . . . It really
is an ongoing development process. I mean I think its amazing the kind of stuﬂr that you
lean ﬁ'om paticipating. You brow, I think, I ery'oy community service because it was a
value given to me by my paents. But some of the most interesting things that I do relates
to this work Patially its the vaiety and being different. That ’s a good pat of it.

It seems worth asking something more about John’s'dilemma of not always being
viewed as trustworthy. It seems that maybe his HC 2000 experiences, have not provided
much learning for him in this regard. John still puzzles over why more people don’t trust
him. He learned early in his career, by watching another leader put the same amount of
trust into everyone and, yet, this was seemingly a part of his demise. Today, John
attaches some valuetobeingtrusted,butisunsrnehowto secureit. So far, his leadership
activities include always being totally open and clea about where I stand. In this way,
he believes others should trust him. Yet, he admits that this openness raises questions
about his motives, at least by some. By openly and clearly stating his views, he may be
viewed as intelligent, but not necessarily trustworthy. He is continuing to search for
ways that others will more readily instill their trust in him.

Finally on this question of learning more about gaining trust, the only data that
alluded to the issue in relation to his HC 2000 experiences, was described as his

ﬁ'ustration during some board discussions where he felt some members had not been

248

totally open and honest about their individual positions: It was real ﬁustrating. . . .
How do you get this group of very strong willed people to all go in one direction How
do you herd the cats? This is a difﬁculty in these kinds of meetings. When people don ’t’
take as active a role in the discussion, and as a result what you end up with is just a top
leadership decision of what 's going to happen, or the direction to go in Then some
people don ’t stay involved as a result because it ’s not going in the direction they want it
to go. I certainly say that this is something I leaned leading this Boad This interview
was being conducted at the time John was stepping down ﬁom the Chair position, but
agreeing to remain “active” as the Vice Chair. His reﬂections about futm'e learning in the
HC 2000 domain are certain to change as his role changes.
Observations from the Research: Career Learning Experiences

The four learning categories as related to career issues have guided this career
story. More directly, the learning categories, as applied to 0m thinking about career
development through organizational learning, have informed the analysis in more speciﬁc
ways. (see Table 4.3) In this career analysis, selected career elements of each learning
category have represented particular career research concepts. In addition, some
consideration of how these career aspects have affected the development of HC 2000 are
mentioned. More about this dual relation is provided in the ﬁnal chapter.

The four career elements are now summarized according particular factors in
John’s career. (The table, ﬁom previous section, is reprinted here to help guide the

reader.)

249

 

 

 

 

LEARNING CATEGORIES

Table 4.5

CATEGORY ACTIVITY OUTCOME ENVIRONMENT VALUES

I//ll////////////I/////I/////I///

ELEMENTS

ORGANIZATION Excitement Amnity for Encomagement or Favoring
for complexity to integration into community-
discontinuous achieve the multi-layered based values
and non-linear outcomes environments over proﬁt
activities . motives

CAREERS Self-concept Maturation, Personal & Individual .
& perceived with gains & professional needs vs.
abilities losses, growth worlds Organimtio
changing & decline nal needs
through self-
direction

 

 

 

 

 

Activities: Self-directed activities based on perceived abilities are thought to

direct certain career activities. These activities carried out in an organizational setting are

of interest to this study. Individual abilities (and self-perceptions) are both reinforced,

modiﬁed, and improved, through practicing familiar activities. First, John has had the

opportlmity to practice and improve his abilities at negotiating through many career

experiences, including his HC 2000 experiences. He recognizes that the value he attaches

to his “negotiating” skills and seems to try to engage in that type of activity whenever

possible. In this way he reinforces and extends his abilities. This type of activity is

clearly a group, not solitary, activity. He recognizes his career successes from being a

good negotiator. The contemporary deﬁnition of leadership suggests the importance of

inﬂuencing and creating inﬂuencing relationships. John’s negotiation activities are

clearly one way of inﬂuencing. His ability to inﬂuence other leaders, has been enhanced

by HC 2000 experiences. He believes he will be better at leading leaders when the next

opportunity presents itself. While he describes how his ability to negotiate has enhanced

 

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his career earlier, his HC 2000 experiences have become additional developmental
experiences for his career.

What does this tell us about the development of the organization? The most
signiﬁcant outcome of HC 2000 has been the creation of the purchasing contracts. (See
Chapter three) This important outcome is a direct result of negotiating with each of the
four hospitals. Have John’s self-perceived abilities aﬂ‘ected the direction and
achievements of an organization? The probability of this seems high

John’s career has developed, in part, because he is good at negotiating. From'his
college years on, he found he was “good at it.” As he provided eﬁ’ective leadership to an
organization, consistent with the organization’s mission, and serving its needs, he was
utilizing abilities developed over his career. The fact that the HC 2000 organization’s
strongest achievement is closely tied to John’s strongest ability, does not seem totally
coincidental.

One other type of activity related both to John’s self-perception and to
organizational needs should be discussed. John found himself challenged in new
developmental ways as he tried to negotiate with, or inﬂuence, other leaders. John admits
his foolishness in thinking he could actually lead leaders, and describes the process as
herding the cats. This suggests that John found he was taking some risk to his career as
he tried to apply his skills to a new set of people. His successful HC 2000 experience,
including learning how to herd the cats, has not only brought the organimtion some level
ofsuccess with problem solving, but he sees this as a gain/win for his career future.

Outcomes: As acareer matures, gains and losses, periods of growth and decline,

may all accompany maturation. Career choices are made for a lot of reasons, but

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generally not to intentionally produce a loss or period of decline to one’s career. Leaders
may intend to produce certain outcomes, that may never become realized. Most likely,
John was partly making a career choice when he agreed tojoin the HC 2000 board. He
made another career decision when he agreed to chair the board two years later. Both
intending to advance, not depress, his career (as a commtmity leader).

John explains that when he agreed to chair the board ofHC 2000, he saw the need
to resign as a member of a local hospital board; other board members with dual
memberships have not been compelled to do the same. Though John described this
choice as a potential conﬂict of interest, most likely he also saw a greater career
opportunity in chairing the HC 2000 board, an opporttmity to create a working
relationship with other CEOs/peers whom he had not worked with much up to this point
in his career. He has now made a third career choice by not seeking a second term,
(though several board members urged him to do so). He has chosen to remain active in
HC 2000, agreeing to become vice chair. (I observed that board meetings don’t begin
until John arrives, even if he is late.) Most likely John realized that all three decisions
had the potential of enhancing his career or he would not have chosen them. Although at
no time in his interview did he suggest that these decisions were made for career reasons.
Instead he described his involvement in HC 2000 as being “drafted” by other leaders.

John’s initial involvement in HC 2000 was described as helping out another
leader. You scratch my back and I ’ll scratch yours. He admitted to not knowing or
understanding much about the “problems of health care.” But as a board member he
would not be expected, alone, to produce actual change. Chances are that when he joined

the organization, he did not have any particular solution or outcome in mind, nor think

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that he held any special expertise that would be particularly helpful to the organization.
In fact, he viewed turning down the request to join the board as possibly be detrimental to
his career. ’

Possibly he also saw this as a potential career opportunity; one he pursued by
being directly involved and eventually developing certain intentions/hopes of producing a
success for HC 2000. His community status could be elevated and the opportunity to
work alongside other highly respected community leaders, more senior than himself,
could be positive to his career. It seems that he joined the organization thinking he
might not be of much help to the organization, but certainly would not hurt it. He joined
the organization because it made good sense for his career.

Therefore, John made a choice that might positively aﬁ‘ect his career. Initially, his
lack of knowledge about health care was precluded by this factor. Any concern he might
have had about not being able, or lacking the necessary knowledge, to produce health
care reform outcomes, does not seem to be much of a factor, initially. The potential
outcomes for the organization, seem secondary to career considerations.

It seems that throughout his career, John has made many positive career choices.
(He could not identify any events that had become serious threats to his career which may .
explain his fast rising career.) Earlier in his life, (pre career information), we learned that
his father taught him to value community service. Along with this and the leadership
principle, of intending change, helps explain why John would agree to participate, and
eventually lead, this organization to which he felt no loyalty. As a leader, his intentions

were to enhance his career, and this was not potentially a liability to the organization.

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Thus, making this career choice to join the HC 2000 organization and to
eventually lead the community-based organization, had the potential of beneﬁting both
the organization and his career, and posed fewer risks than if he did not agree to join the
board. If the career growth prospect had not been a part of the HC 2000 organizational
experience, would John have still agreed to join the organization? This seems tmlikely, if
it posed a signiﬁcant threat to his career. Also, the leaderShip principles help us
' recognize that when he decided/agreed to be more involved his intentions were possibly
to help the organization, though uncertain how this might happen. Later as a leader in the
organization he took a career risk; but as a leader of leaders he seized an Opportunity for
additional career development. After two years as the board chair, the career outcomes
may be exactly as he intended? Also the organizational outcomes, that he is identiﬁed
with, have brought him respect by other board members.

It seems that John can rightquy take some credit for these ﬁrst initial
achievements of HC 2000. Other leaders credited him with these accomplishments.
More importantly, John’s career decision to join and lead the HC 2000 has enhanced his
career through increased status as a community leader and having now worked effectively
with a group of highly respected community leaders.

Environment: Careers are inﬂuenced by both professional and personal ,
environments. These change as a career matures. The importance of personal versus
professional environments also shifts as a career matures. John’s career today has been
guided by past personal inﬂuences and professional ones. John participated in HC 2000
activities, partly because his father demonstrated the value of community service,

(personal). This pre-career inﬂuence has guided John to include experiences like the HC

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2000 experience, as part of his career choices. Also, John’s diﬁ'erent professional
environments, ﬁrst as a corporate CEO and now as a community leader, are also
important to his career. John readily acknowledged that both personal and professional
environments, from the past and present experiences, have led to his career development.

The leadership principle associated with environmental considerations, includes
relationships with leaders and followers. Though John did not, believe he ever acts like a
follower, he does believe his experience with other HC 2000 leaders helped him learn
how to lead leaders more eﬁ‘ectively; and he values this experience as important to his
career development. He admits that if he were in a'similar situation in the future (with
leaders), he would do it diﬂerently. Finally, as part of his career story, he mentioned that
other professional environments, as a former hospital board member, provided him only a
fraction of the knowledge he now has obtained about health care pricing because of his
HC 2000 experience. Thus he has learned more about the role of providing leadership to
health-related entities.

One ﬁnal professional environment that is career related, and was part of his HC
2000 experiences, was testifying before a circuit judge. He identiﬁed that his experience
of testifying before the circuit judge, regarding the merger, had clariﬁed his thinking and
understanding about why it made sense to support the merger and improved his
understanding about health care. Now he attributes this way of learning as stemming
from being involved Supporting the merger increased the presence of HC 2000 in the
community and developed a better working relationship with the community hospitals.

These were learning and career building experiences, as well. Again, chances are smaller

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that if testifying posed a signiﬁcant career risk to John, he would not have agreed to do it
Through his career-motivated actions, he has affected the organization’s development.

John’s career activities, examined in the context of several personal and
professional environments, have aﬂ‘ected the organization. As John gains more
experience from various environments and associates them with his organizational roles,
not only has his career beneﬁted, but so too may the organization. In this case, John’s
personal, pre career environments and other professional environments, have aﬁ'ected his
career and an organization. This type of learning ﬁ'om different environments, is likely to
affect one or several organizations over the course of his career. Thus, several
environmental inﬂuences to a career, also seem important to an organization. .

Values: Career development issues recognize that as a career unfolds, individual
needs are to be valued over organizational needs. Career models, as organizational
models, consider ways to produce complimentary goals. Times when there may be some
conﬂictbetween the two sets of goals, though there may be an ambivalence, ways of
resolving or making adjustments are considered. Career models also seek to explain how
an ambivalence between the two sets of goals may affect career development. John did
not provide individually-centered career goals, but instead described his desire to produce
success for both his automotive supply company and for HC 2000. Yet, John’s HC 2000
experience seems to have provided some career development and possibly met privately-
held individual career needs, (e.g., increased community status, enhanced peer
relationships). John has facilitated the HCZOOO organization in meeting its needs, (i.e.,
reducing health care costs and becoming a viable organization). Both individual and

_ organizational needs have been met during the last two years of John’s career endeavors.

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Thus, these circumstances do not seem to present a situation where the two sets of goals
are in conﬂict.

Recently John completed his term as Chair of the Board and chose not to continue
in that role. (This was early in the study period.) When John announced he would not
continue in the role of Chair, initially no other board member would agree to assume the
role of chair. John was asked to reconsider but he adamantly refused. It was a period of
over a month before another board member could be “persuaded” to become the next
chair. John reduced his role, and involvement, with the HC 2000, which is not
necessarily in the organization’s best interests. Possibly John has found other
Opportlmities that meet his individual needs better than HC 2000 would, prospectively.
Thus, as the career models suggest, John’s career development needs (individual needs)
seem to have taken precedence over organizational needs. Unlike two years ago when his
individual needs could be met jointly with meeting organizational needs, today,
something in relation to his career (or possibly the organization) has changed. John has
not abandoned the organization, but by choosing to reduce his involvement while the
organization could still beneﬁt ﬁom his accumulated experiences, he has not put
organizational needs ahead of his own career needs.

As a leader, and according to leadership principles, creating mutual pmposes, may
have been accomplished by him remaining in a leadership role for HC 2000 rather then
leaving altogether. The career analysis helps us lmderstand that while John was
providing signiﬁcant leadership to the HC 2000 organization, he most likely was
achieving mutual purposes. Organizationally, he helped everyone arrive at the

knowledge that HC 2000 must remain a community organization, and not be guided

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strictly by low cost solutions. Personally, be conﬁrmed what his father taught him - the
value of providing community-based leadership. He admits that he is probably now
better at leading leaders, but has chosen not to carry out this activity in HC 2000 in the
future. His career needs, whatever they may be now, likely, are taking precedence over
the HC 2000 organizational needs.

Though John may be personally motivated to step-down, the dilemma that this
may be a continuing organizational problem — higher than desired turnover of HC 2000
leaders - the cause may really be due to the nature of the organization. HC 2000 is a
volunteer organization serving many constituencies, but the leaders must ﬁrst be loyal to
their primary companies (the company they are the CEO). Yet, if most chose not to
remain for extended periods of time in leadership positions, this analysis suggests that
one ofthe mainreasonswillbeto avoidathreattotheircareer, orthatHC 2000 doesnot
offer a career opportunity. At least for two years, HC 2000 provided a learning
opportunity, plus enhancements to John’s career.
Conclusion

Now John’s career story has been told, plus several observations made about
learning and features of John’s career development. Certain aspects of his career have
been considered and isolated alongside ideas of organizational learning and career
development. Some interesting contrasts between chapters three and four can now be
oﬂ‘ered. The two chapters offer two different perspectives about learning within one
organization — organizational achievements and a developing career. In some ways the
two studies are complementary analyses, and in other ways, dissenting. Mainly, the

integration of career issues into an organizational analysis reveals additional and

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seemingly important ways of thinking about organizational learning. The separate
ﬁndings from each analysis — the organizational case study and the career biography —
are reviewed in the next and ﬁnal chapter. More signiﬁcantly, contrasting the two studies
creates a third set of ideas about organizational learning.

The heuristic framework used to develop speciﬁc learning categories was ﬁrst
shaped around an organization view, then around career concepts. The framework
produces a way of integrating two sets of ideas about learning. The overall objective has
been to understand more about how an individual and his career development may
inﬂuence an organization. Organizational learning, both for the organization and the
individual, have been considered. Now a relationship between the diﬂ'erent ways of
viewing learning - organiZationally and individually - is described in chapter ﬁve.
Findings from integrating the two separate studies are highlighted. These ﬁndings
strongly suggest that a career biography provides new, important ideas that supplement

an organizational analysis in signiﬁcant ways.

Chapter 5

ORGANIZATIONS AND INDIVIDUALS: CONTRASTING VIEWS OF
LEARNING

In what way is learning a part of organizational change? . . . Not change for the
sake of change, but change that is developmental and progressive. Learning, both as a
part of the organization’s development and the development of a leader, has been studied.
The term organizational learning has come to mean several things from parallel studies.
about learning and development. An organization becoming poised and ready to take on
new ways of problem solving has been considered in relation to learning. A willingness
to experiment and seek out change, even in the face of unknowns, has been one way of
thinking about organizational learning. By deﬁning and using the term, organizational
learning, this study has collected and described a great variety of ideas, associated with
the concept of learning within an organizational setting.

Following the construction of an analytical ﬁ'amework, the organized actions of
an organization became the starting point for this analysis about learning. Moving
backward ﬁ'om organized actions, many ideas about learning in relation to the
experiences that led to certain outcomes, were described. The parallel study asked,
“What were some of the organizational (i.e., collective) activities that provided a way of
thinking about learning — in an organizational setting?” And, “What factors seemed like

features of learning and were relevant to organizational outcomes (i.e., successes)?”

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“How did environmental inﬂuences enter into the organized actions and provide
opportrmities to learn?” Finally, “How did values, of the organization and individual
leaders, inﬂuence the organization?” By conducting two parallel analyses, both
organizational issues and career issues were considered in relation to these types of
questions. This chapter now explores how one study informs the other.

First, an organization has been studied as a distinct entity. Has learning beneﬁted
the organization? In what ways? Then, organizational circumstances in relation to an
individual leader and his career development, has also been studied. Even though a
similar analytical framework was used for the two studies, the information about learning
revealed in the organizational analysis is diﬁ‘erent from the information compiled in the
career analysis. This analysis does not attempt to prescribe which type of experiences
should always be considered learning experiences, nor doesit suggest what learning is
best for an organization or for an individual. This study does offer an irregular
description about organizational learning, such that both individual and organizational
learning is considered together. Essentially, the career study produces an alternate,
supplemental and complementary view about learning complements the organizational
analysis.

This study ﬁrst examines organizational experiences as learning experiences.
Ways in which features of different experiences coincide with certain ways of thinking
about organizational learning (according to certain organizational research concepts tied
to learning concepts), have been identiﬁed. The organizational analysis features the more
contemporary, less traditional, less bureaucratic ways of thinking about organizational

development and learning. Also, the intent has been to focus on non formal learning

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experiences. Finally, the information in the organizational analysis stems from thinking
about organizational learning as a part of organizational change . . . change that is
developmental and progressive. This approach is consistent with other research about
organizational learning that equates learning in the organizational domain to problem
solving and the pursuit of new knowledge. (See chapter two)

In contrast, the career analysis included traditional research concepts about career
development, including stage structured views, differences due to multiple inﬂuences,
signiﬁcant events and the integration of careers into organizations. (See chapter four)
The career biography studied lifelong experiences that inﬂuenced a leader’s career. Ways
in which self-perceived abilities are initiated as part of his leadership activities, plus his
values, career losses and gains were considered in relation to organizational learning
concepts. The traditional views of career development, according to career theories,
guide the development of the career biography.

_ First, this chapter reviews the “effects” of learning discovered in the case analysis.
(Chapter three) Then the “effects” of learning for the leader, identiﬁed in the career
biography, are restated ﬁ'om chapter four. The balance of this chapter contrasts the two
ways of thinking about learning - the organizational view and the career view.
Diﬁ’erences between what was featured as organizational learning from the organizational
perspective versus the career perspective are highlighted.

The distinctions are very revealing and suggest that organizational analysis,
without career considerations, is limited. By creating a dual analysis of the organization
and a career, information about learning is more comprehensive and offers more

meaningful details about development in the organizational domain. Also, by adding a

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career analysis to an organizational analySis, the observations and interpretations from the
organizational analysis seem limited and possibly misleading. After discussing these
ﬁndings in more detail, the ﬁnal two sections of this chapter (and this study) include
reﬂections and recommendations for future study.

FINDINGS FROM A CASE STUDY - WAYS THE ORGANIZATION LEARN S

The “effects” of learning recorded in this study, about the HC 2000 organization,
have been tied to either past or future organizational accomplishments. An investigation
into past achievements, considered progressive and developmental improvements for the
organization, reveal interesting ideas about organizational learning.

The organizational case study identiﬁed some problem solving times when
unplanned events occurred, and other times when there was an absence of a complete
understanding about the health care issues. Yet in both instances, problem solving actions
proceeded. Some turmoil and dissent resulted. Eventually though, the organization took
several actions in a conﬁdent and determined fashion; actions that today are considered
organizational successes. For instance, experiences associated with making a decision to
publicly support a controversial proposed hospital merger and the decision to proceed
with negotiating new types of direct purchasing contracts with the hospitals, provided _
several interesting ways of thinking about organizational learning. These were:

- Reaching a consensus without ﬁrll agreement created a mutual and continuing
desire to obtain more information, to understand more of the details and eventually
created additional new solutions/actions. (Supporting merger, then continued eﬂ‘orts to

understand implications of this action.)

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0' Striving to simplify the use of complex information seemed to limit future
actions. But maintaining and using complex information to create new solutions, even
when it was not fully grasped nor understood by some leaders of the organization,
provided a spark that led to additional dialogue and continued efforts toward more actions
and acquiring more knowledge. The challenges experienced from using complex
information, provided a base of conﬁdence and resulted in a more intense conﬁrmation of
a solution. This increased conﬁdence and support, now inspires future plans for future
similar solutions. (Direct contracting with hospitals; hopes for direct contracting with
physicians)

0 Immersing certain problem solving activities into new and diﬂ‘erent
environments, stimulated thinking from alternate perspectives. Though this immersion
caused new problems and challenges for the organization, the net effect was that the
organization learned more about its viability as a community-based, problem solving
organization. (Supporting merger ﬁrst, then hospitals challenging direct contracts)

0 Acting on stated values of the organization, i.e., community-based values,
guided certain problem solving activities in very speciﬁc ways. These values inﬂuenced
the leaders and helped them consider their solutions more carefully and thoughtfully.
Conﬁrming the organization’s community values ensured that not only the organizational
purposes were being served, but seemed to guarantee that the needs of the community
were truly considered in each organizational action. Challenges to certain motives by
outside inﬂuences created more dialogue, more discussion, leading to clearer visions and

additional ﬁrture actions. (Defending merger in court.)

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Explaining and understanding organizational learning according to organizational
outcomes, is described as ways of learning that inform new and future directions for HC
2000. For example in its earlier stages of development, HC 2000 dismissed the
feasibility of addressing the problem of rising health care costs by negotiating directly
with physicians. Contracting with. individual physicians was considered too great a task
because of the dispersed and independent ways the physicians are organized. Instead,
with just four local hospitals, actions to control the health care costs originating tom the
hospitals was considered a more viable solution. The ability to secure hospital contracts
proved tenuous at times, but, according to this study, provided developmental learning
opportunities. This learning has progresses the organization to the point where it now
feels ready to pmsue the more challenging solution of aﬂ’ecting health care costs that
originate from the physicians, which admittedly is a much more complex task.

Now after four years, most members of HC 2000 are extremely conﬁdent that the
HC 2000 organization is capable of devising a way to contact directly with local
physicians. Committee members have now learned that the local physician’s
organizations are willing to discuss direct contacting. Though most organizational
members admit the uncertainty of outcomes from this approach, everyone still is very
willing to ty. The committee has learned that many physicians do see a need for health
care reform measures and cost containment. Given this similarity in goals, HC 2000
members now eager to engage in more reform efforts that involve the physicians. The
problem solving approach, rejected four years ago, is conﬁdently being pursued. Learning

activities from past related experiences may be one explanation for this change. The

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learning has been such that a successful problem solving approach from the past is being
adapted to the physicians.

Finally, the organizational study suggests that this conﬁdence toward similar
solutions, is because HC 2000 has not had smooth sailing in the past. Actually, this study
about learning suggests that because of certain difﬁculties, not in spite of them, the
organization seems better equipped to pursue more uncharted territories with some
familiar landmarks. In the last two years, the organization’s motives have been
challenged (merger support); decisions have been threatened in areas where only limited
understanding about the complexities of pricing and costing concepts existed (hospitals
challenging initial efforts to enter into purchasing contacts). Also, stong internal
disagreements have existed around prOposed actions (hospital contracts and
merger).Emerging from this is not despair, but rather, organizational members who are
more loyal and more enthused about the potential of HC 2000. These problems have all
been “worked through.” These experiences have taken considerable time and required a
high degree of commitnent by many organizational members. The four somewhat
tumultuous years have moved the organization one notch closer to the reality of reducing
health care costs. So, why have these limited successes, ﬁlled with disruptions and
problems, inspired, not discouraged, future efforts toward better solutions? The
organizational model offers some insight, but the career analysis helps consider these
questions from a new perspective.

Before reviewing ideas about learning from the career perspective, ﬁrture problem
solving plans from HC 2000 are worthy of mention. As negotiations with physicians are

beginning, one considered approach is to establish more informal partnering activities.

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Ways of establishing formal contactual arrangements between the employers and
physicians are being considered, and favored. The few models (similar contactual
agreements) known about across the county, (there are few) are being reviewed. Thus,
there are many unknowns in this approach. And most committee and board members
expect some conﬂict between the physicians and the businesses as they attempt to work
toward mutual solutions. Regardless, past (learning) experiences of HC 2000 have
provided new ideas and new ways of understanding that are anticipated to sustain this
effort and continue to achieve more effective health care reform. Past “learning”
experiences have increased the level of conﬁdence for this organization, inspiring them to
push toward more change, even in the face of many unknowns and possible conﬂicts.
According to the case study, the organization seems to have learned developmentally and
progressively partly from complexities, discontinuity, and conﬂict. The organization has
learned in ways that will tansfer to future efforts seeking greater successes.

In contast, the career analysis reveals that these same experiences (studied tom
the organizational perspective) have really been a part of learning for one leader of the
organization. More importantly, rather than the dynamics of the organization being
cental to the process, the career analysis suggests that one leader’s knowledge and
learning has produced these organizational and is at least partially responsible for them.

FINDINGS FROM A CAREER BIOGRAPHY - WAYS THE LEADER LEARN S

The career biography revealed that learning by one leader is viewed differently
than what the learning by the organization. If viewed within the context of his entire
career, John has learned through his HC 2000 experiences by reinforcing and practicing

his self-perceived abilities. John highly values learning ﬁom direct experience and has

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found his HC 2000 leadership role offered new developmental experiences. John values
learning from experience more than other ways of learning. Thus, the ﬁrst-hand HC 2000
experiences have affected his career in challenging ways and in ways John highly values.
John believes he has learned important lessons about effective leadership; the HC 2000
experiences have enhanced his career. In particular, John values the experience of
leading other leaders. He also values the learning he gained from being highly involved
in the organizational activities. John started out tackling a problem that he knew little
about, and now recognizes that he has become more expert in the subject of health care
reform. (In fact, he tackled a problem that he admittedly cared little about, at ﬁrst.) The
career biography revealed these types of career beneﬁts, including features of learning,
for John:

0 By leading leaders, John has improved an ability he already values in himself
as a leader - the ability to get a group to come together ﬁ'om diverse opinions and help
them-reach some agreement. John learned that the way he carries out this leadership
activity among other leaders, (rather than followers), needed to be signiﬁcantly adjusted
from his past ways. Though he attempted to use his negotiating abilities in this
organizational setting, he discovered that these self-perceived stengths were signiﬁcantly
less effective, at ﬁrst, in this setting of all leaders. John admits he stumbled through some i
of these initial experiences, and now believes he is more poised and ready to provide
leadership to other groups of leaders in the future. Thus, John believes he learned from
the experience of leading leaders. He learned how leaders have and hold onto their views

— that they all want seriously considered, not ignored, nor forgotten. John has now

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learned ways he can move a group with stongly-held, diverse opinions and provide
leadership that results in action, even if disagreements persist. Thus, John believes he
stengthened his leadership abilities through his HC 2000 leadership role.

0 John values his direct involvement in the activities of HC 2000 as additional
opportlmities to learn. Negotiating with the hospitals, providing testimony to a circuit
court judge, convincing the board to support the hospital merger - are all experiences he
has directly led even though much of the critical information was new and something he
initially knew little about. He recognizes that his “technical” knowledge about health
care has increased from these experiences, and he now uses this knowledge to guide his
thinking and actions in new ways. From this new level of understanding about the
industy, he can help guide the future of HC 2000. His involvement has increased his
commitnent to the organization and in helping fulﬁll its purpose. His experiences with
this community-based organization aﬁirmed his previously held leadership belief, that
having a vision is essential to being an eﬂ‘ective leader. Through learning, he now has a
clear vision about the future of HC 2000.

0 Finally after this HC 2000 learning experience, John ponders the question of
his image in the community. The career biography described one of John’s current
dilemmas — he believes he is not always viewed as a person to tust. The HC 2000
experiences did offer any new ways of thinking or understanding for John in this self;
identiﬁed career development need. John continues to seek ways of understanding why
he is not sometimes tusted by some. He is perplexed about why some seem to tust him

and others do not. Most likely a future experience will provide a way of learning such

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that John will know how to more readily gain others tust. John wants to learn how to
garner others’ tust and is looking toward other experiences for this.

John’s learning experiences over the course of his career and within HC 2000
have been mostly ﬁlled with wins and gains. He provided no examples of losses or set
backs, thus far in his career. Coupled with this, John’s overall sense that he learns most
effectively ﬁom personal experiences, rather than through study or reﬂection, is
demonstated in several ways. His HC 2000 experiences offered him some srnprising
insights into his self-professed abilities, speciﬁcally his negotiating abilities and his
ability to help groups reach a consensus that results in organized action. Thus, as John
considers his experiences at HC 2000 within the context of his overall career
development, there have been rewarding and developmental experiences, i.e., small wins
and gains in his overall career development.

Given these two sets of ideas about development and learning (organizational and
. individual), the next section offers a contast between them. by contrasting the
organizational analysis with the career analysis new and signiﬁcant considerations
surface, including new considerations about learning. This contrast extends both studies
and our understanding about the concept of organizational learning.

FINDINGS FROM PARALLEL ANALYSES - DIFFERENT VIEWS OF
LEARNING

When career issues are incorporated into an organizational analysis, a new set of
ideas are exposed. This supplemental way of studying organizations -- incorporating a
career perspective -- produces alternate and possibly contadictory conclusions. A

comparison between the two studies, also, reveals the importance of integrating career

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ideas into an organizational study. As more ways of understanding organizational
learning and change are pursued, career issues should not be ignored. This study
demonstates that when career issues are considered, (alongside an organizational
analysis), new ideas emerge. Career issues produce “additional” and important ways of
thinking about organizational development.

In this study, the organization has been viewed as a distinct entity, with power and
inﬂuence, and with the potential to learn and develop. By adding a career analysis, the
information collected from a taditional case study grows dim and appears overshadowed
by certain fundamental career concepts. . By integrating and comparing the conclusions
and observations from the two studies, (organizational case analysis and career
biography), three signiﬁcant ﬁndings are identiﬁed. Career development issues inform
the organizational analysis. Information about how career decisions affect organizational
achievements are noted. Thus, an enriched understanding of organizational learning
results when career issues are added to organizational considerations.

Here are three additional ﬁndings produced when comparing the two studies:

0 A complementary understanding of organizational change emerges when
career ideas are attached to an organizational analysis. The organizational analysis
examines ideas about learning in relation to change. The case study format, used here, is a
widely-accepted methodology for conducting organizational analysis. The potential
beneﬁts and drawbacks for an organization engaged in learning, and as a way of problem
solving, have been included in the case analysis. How changes and solutions were

shaped, implemented, evaluated and sometimes adjusted, have been identiﬁed and

27]

studied. In contast, the career analysis, i.e., a career biography, provides new and
complementary ideas about change in this organization. The career analysis describes-
additional reasons, outside those presented in the case study, regarding why a particular
organizational change may have been preferred or selected over another. The career
analysis reveals the potential effectiveness of certain organizational change initiatives,
when the skills, abilities, and talents of an individual organizational member are
considered. As organizational changes and solutions are studied, these changes seem '
partially rooted in decisions surrounding individual career development.

0 A career analysis suggests that important ways of learning in an
organization, may be adapted or even may not recur, as a career matures. The
organizational analysis identiﬁed particular ways of learning, that were a part of
organizational achievements. Ways of learning that supported and sustained
organizational change were identiﬁed in the organizational analysis; such ways of
learning were deemed potentially effective ways of learning that could support future
organizational changes. In contast, the career analysis exposed the possibility that these
past ways of learning, may not recur or may change form, as a career matures and
develops. Thus, the career analysis suggests the possibility that past ways of learning
within an organization may not recur because of one’s developing career. While the
organizational analysis suggests that successful past ways of learning should be
considered as potential ways of achieving future successes, the career analysis suggests
that individual learning experiences produce new knowledge that, in turn, alters future

behaviors. These new, adapted behaviors will change the shape of the organizational

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activities. Thus, in the absence of a career analysis, the organizational analysis may
elevate and value learning that would be applied to ﬁnite problem solving activities, in a
form that may not recur as an individual learns and adapts.

0 Career analysis identiﬁes the importance of an individual’s ambivalence
upon organizational development. Unlike organizational analysis, career analysis
identiﬁes how certain career experiences create a judicious ambivalence, or a sense of
balance between organizational needs and individual career needs. Other career
experiences create times of conﬂict, or a wavering between obedience or rebellion toward
an organization, often due to the incompatibility of career and organizational needs. Both
types of conditions create an ambivalence that affects not only career development, but
also organizational development. A career analysis, integrated into an organizational
analysis, provides a way of examining how individual ambivalence is conditional and
relates to organizational development.

All three ﬁndings suggest a heightened value in expanding organizational: research
to include career issues. These ﬁndings are now described in greater detail:

#1 - Organizational change ideas are complemented when career issues are
considered. As noted earlier, organizations recognize the need to change, continuously.
Studies that attempt to understand organizational learning have produced new ways of
thinking about and planning for organizational change. The concept of organizational
change, often featured in contemporary organizational research, is multi-disciplinary.
Organizational studies attempt to lmderstand more about different types of changes, why

and how they came to be, and ways they can be improved. A career analysis reveals

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additional ideas that can be associated with organizational change. This study
demonstrates how career considerations augment original observations about learning in
relation to change, tom the organizational perspective. Additional, new, and valuable
insights into the concept of organizational change are found in the career analysis. In the .
absence of career considerations, interpretation and understanding of learning seems
restricted.

By way of example, features of learning associated with one organizational
change initiative, were described in the case analysis very differently than in the career
analysis. The HC 2000 case study described a problem-solving activity, i.e., community-
based purchasing contacts, and described associated learning" experiences. Learning
through this change initiative, in certain ways, was identiﬁed as developmental for the
organization. HC 2000 initiated a change by creating a purchasing contact that
contained community-based prices. This type of change, is now viewed as an eﬂ‘ective
change model for the organization, and guides future change efforts of the organization.
The organizational analysis identiﬁed how the value behind this change initiative --
creating community-based pricing, not necessarily lowest prices — was educational and
developmental for HC 2000. The case study suggested that this type of change initiative
reinforced how important it would be for HC 2000 to continue to place community needs
ahead of seeking lowest possible costs or higher proﬁts. Both the organizational and
leadership literature conﬁrm that values stemming beyond a pure proﬁt motive are more
sustaining and long lasting; thus are often a part of development and learning.

Furthermore, the organizational analysis revealed how this type of developmental

learning accompanied the change initiative. The organization was founded on

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community-based values, and, when one solution was initially pursued, retaining this
value was seriously challenged. (Each hospital wanted to retain individual competitive
. pricing schedules, that would not reﬂect the “best” community prices.) Through
discussion and study (and learning), the organization ﬁrmly established that this founding
principle must not be abandoned. The organization seemed stengthened by this
experience, and seemed to have learned that the community agenda, rather than a proﬁt
agenda, would sustain the ﬁrture of the organization. Therefore according to the case
study, seeking a solution in the form of community-priced purchasing contacts was a
developmental experience for the organization. Knowing the importance of retaining and
acting in accordance with community values, as solutions are “worked out,” has been
learned through this experience. Such knowledge guides futme organizational activities.

Furthermore, the case analysis demonstated that when this value was challenged,
another opportunity for organizational learning resulted. This change initiative was
initially challenged by the hospital administators, who alleged that the prices were not
reasonable and would create signiﬁcant ﬁnancial difﬁculties for their businesses. HC
2000 considered abandoning the initiative. Other solutions could have been pursued. The
organizational analysis suggested that because the initiative included community values,
it provided the impetus for understanding why this was an effective change initiative and
one that should be pursued. Thus, when the change initiative (solution) was seriously
challenged and at risk of becoming a failed solution, learning associated with community
values was conﬁrmed and thought signiﬁcant for future organizational development.

In contast, the career analysis offered a diﬁ‘erent explanation of why this type of

change initiative, even when in jeopardy, was retained and pursued by the organization.

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This type of change initiative tapped into John’s stengths. John’s career is laden with
using negotiations as a way of problem solving. This was another reason why the
organization should retain this type of change initiative, not just because they were
seeking community pricing. A determination that there was a greater likelihood for
success because of John’s already developed negotiation skills was identiﬁed in the
career study.

The career analysis implies that one type of change initiative is retained because it
utilizes the existing abilities and stengths of an organizational member. The career
analysis also suggests that as individual abilities change, the type of change initiative is
likely to change in accordance with new sets of individual abilities. For instance, if a
different leader had been chairing the HC 2000 board, at the time when the decision to
negotiate contacts with the hospitals was challenged, this initiative might have been
abandoned or not pursued. A diﬂemnt leader, or group of leaders, may have thought that
alternative solutions could have been more feasible. And, (according to the career study),
this would have been based on other types of abilities held by different leaders.

This point is not mere speculation. Comments from several other board members
conﬁrm this opinion. Two board members, when describing HC 2000 activities,
described how two other board members viewed the purchasing contacts as too
confrontational. They surmised that when HC 2000 decided to proceed and negotiate
contacts with the hospitals, this decision probably caused the eventual resignations of
two board members.

Therefore, the type of change initiative carried out by HC 2000, is very

compatible with John’s abilities, according to the career analysis. Even when this

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initiative was challenged, the career analysis suggests that John would work to retain this
type of problem solving approach, over any other, because he knows his likelihood for
success is greater. John knows he is likely to successfully initiate a change through a
process of “negotiations” more so than another way. According to his career experiences,
it seems that John would often pursue a negotiation-type of approach. Not surprisingly, ,
John would want to pursue a change initiative that would utilize his existing stengths.

Given the multitude of ways HC 2000 could have tied to initiate change, or
engage in problem solving activities, the decision to negotiate a community-based pricing
schedule may stem from holding certain organizational values, (as the organizational
analysis suggests); but another reason for engaging in this type of change initiative is
possibly because John believed this was how he could successfully lead the organization,
(as the career analysis suggests). Each explanation is helpful; both explanations enhance
our understanding of organizational learning.

One additional contast demonstates how a career analysis oﬂ‘ers additional
information about deve10pment in relation to organizational change. The nature of health
care reform is complex and reasons associated with rising health care costs are ill-
deﬁned. A great variety of problem solving approaches are feasible. Reasons why HC
2000 has pursued certain ways, and not others, are explored through the career analysis.
What if there had been a different board chair when the hospitals balked at the purchasing
contacts? What if the other chair possessed diﬂ‘erent skills, which is very likely. What if
the “other” chair had developed stong analytical skills in the past, either through
experience or formal education and was adept at knowing how to analyzing complex

pricing and cost information. Or what if the “other” chair was knowledgeable in

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organizational assessment? The possibility exists that instead of holding onto the idea of
negotiating purchasing contacts with the hospitals, as originally planned and later
challenged, HC 2000 might have abandoned this one and opted for a different change
initiative.

The organization might have more aggressively pursued developing the
information database to provide a better assessment tool for the hospitals. Through this
approach, HC 2000 could have “encouraged” more effective cost cutting strategies and
pursued passing these cost reductions on to the payers. A different leader with experience
and ability in assessment, information management, or cost reduction strategies might
have abandoned the idea of negotiating contacts and favored the development of an
information database to better assess how and where to reduce costs.

Quite a different scenario is produced about learning and development in relation
to change initiatives, when career development is considered. Alternate types of .
initiatives could also produce learning that informs future organizational activities. To
suggest that the contacts were the best (and only) possible solution for HC 2000, is not
reasonable, given the complex nature of the problem. But, given the existing set of skills
and abilities among the organization’s leader at the time, the likelihood of pursing certain
types of activities are more readily explained. The case study suggests that learning
through community-based values produces effective change. The career analysis states
that development through practicing already-possessed abilities is likely. Both ideas
produce signiﬁcantly different sketches of organizational learning in relation to the same
event. And both are valuable contributions to understanding learning in the

organizational domain.

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The career analysis suggests that certain organizational values may or may not be
retained by an organization. Individuals pursuing their careers may have more contol
over resulting activities (and values) than an organizational analysis suggests. For
instance, the career study suggests that the type of change initiative might be quite
diﬂerent, given a different leader. If instead of pursuing purchasing contacts, developing
a tool to assess costs might have been developed; and the emphasis on meeting
community needs might have been abandoned by HC 2000. As each of the four hospitals
reduce their costs at different rates, the amount of savings they might pass on to
purchasers would be different, (and possibly competitive). This could have placed HC
2000 in a more competitive mode where each provider competed on price, based on their
own level of cost savings The community-based values may not have prevailed with this
organization if this type of change initiative had been pursued.

Finally, the career analysis suggests the possibility that the type of change may be
diﬂ‘erent due to differing individual abilities. A new assessment tool to cut costs, created,
ﬁom a new information database containing accurate charge information, might have
immediately produced signiﬁcant savings through cost cutting stategies. The savings
might have lowered the charges even more than the community-pricing schedule did.
Thus, a different leader with different abilities might have guided the organization toward
a totally different type of change initiative, which when studied organizationally might
have produced better results. The career analysis shifts the thinking away tom the
concept of organizational values, and more toward studying individual skills and abilities,
regularly carried out in organizations. By utilizing existing skills, more learning

opportunities might produce more effective forms of organizational development.

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Adding the career perspective to an analysis of organizational change and seeking
reasons about why one type of change initiative versus another type has been selected,
produces different ideas about learning. A career analysis shows how the change
initiative depends, at least in part, on the abilities of the leaders or ways they prefer to
carry out their work. This means that initiatives will change quite signiﬁcantly as
individual organizational members change. Self-perceived stengths and preferred modes
of operation among individuals become critical to organizational change initiatives.
Problem solving initiatives may be more successful if career issues are incorporated into
organizational decision making processes. As individuals are encouraged to assess their
stengths and abilities, accumulated over the course of their careers, and overtly consider
how these can be incorporated into organizational solutions, the development of ~
organizations may be enhanced.

Ways that learning relates to aspects of organizational development have been of
particular interest in both the case study and career biography. The case study identiﬁes
processes and activities that seem to contibute to successful organizational
achievements. Ways that organizational activities have been shaped in the past, is
considered important to understanding learning that will inform ﬁrtme work. The career
analysis, instead, recognizes that careers mature. As experience provides learning, new
ways of pursing career-related activities result. Thus, the career analysis suggests that
past activities may not be repeated in the same way because learning produces new
knowledge and abilities; thus informs change.

This idea is contadictory to the organizational analysis. As organizations engage

in successful processes that produce desired results, applying the same or similar

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processes to future activities is advised. The second ﬁnding continues this thought and
suggests that as careers mature, certain organizational activities will not be repeated nor
be as desirable.

#2 - A maturing career alters the ways of learning for an organization. The
organization is cental to, and dominants, our thinking about organizational learning. In
the case study, particular ways of learning were described around a socially-constucted
analytical framework. This framework examined activities, outcomes, environments and
values. In the case analysis, several ways of learning were associated with the same
organizational achievements, considered developmental in the organizational case study.
After attaching a career analysis to the organizational study, certain ideas from the case
study, identiﬁed as important ways of learning, seem less important and possibly
insigniﬁcant in relation to future organizational pursuits.

Before considering career issues alongside organizational factors, the case study
identiﬁed certain ways of learning that could be associated with particular organizational
achievements. For example, several ways this organization had learned and developed
were associated with HC 2000’s decision to support the contoversial hospital merger
proposed for the local area One way of learning, according to the case study, was
described as follows: Even after a decision has been made, future investigation and
inquiry into features of the decision were educational and developmental in unanticipated
ways. The case study revealed that after several discusSions about whether the
organization should or should not support the hospital merger, the decision was made to

publicly support it, though uncertainties persisted. After these discussions and the

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decision, additional information was sought by organizational members. This resulted in
additional learning that produced new forms of organizational development.

First, the complexity of predicting what might happen if a merger was to take
place, denotes that this was an ill-deﬁned problem. Then, the admission by board
members that they possessed limited knowledge about the health care industy caused
uncertainty. Finally, there was continuing discussion about the quality of the decision,
even after a formal consensus had been reached. Thus, this decision led the organization
into new forms of inquiry, which in turn led to additional and valuable learning
opportunities according to the organizational analysis. Essentially, the organizational
analysis portayed how the decision making process created an awareness and
understanding of a problem, and without total agreement nor a full understanding,
additional study became a very effective part of the decision making activity (and
learning for the future). The case study suggested that this way of learning actually
facilitated additional and lmforeseen organizational development activities, and future
similar ways of learning were desirable for this organization that would be dealing with
many other ill-deﬁned problems.

According to the organizational analysis, learning through subsequent inquiry
after a decision has been made, can be developmental for an organization. Study about
the merger continued even after deciding to support it; more concerns were raised and
additional follow-up discussions created even more questions. According to the
organizational analysis, the learning and development resulting tom the board taking a
position on the merger in the face of dissent, was developmental and beneﬁcial to the HC

2000 organization in positive unforeseen ways. And ultimately, this way of learning

 

 

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produced another organizational achievement which was to seek a voice for HC 2000 on
the new hospital board (merged entity).

Ways of learning that produced additional and unforeseen organizational
successes, spilled out from supporting an idea (merger) that was only vaguely understood.
This action even created learning outside the organization, i.e., among the hospital
administators. They admitted that the board’s questions about speciﬁc aspects of the
merger plans, and subsequent discussions, stengthened their own planning and
development processes. Thus, the decision to support the merger, (even without a ﬁlll
grasp of the resulting effects), was followed with additional discussion, inquiry and
analysis. In turn, new knowledge was created to aid future problem solving activities for
this organization.

The case analysis studied how the process of engaging in further investigations
even after a decision had been made, created additional new ways of learning. This idea
about learning, revealed in the case’analysis, examined how reaching a consensus even
when dissenting opinions persist is a developmental process. But this assessment of
organizational learning, created from an organizational analysis, starts to look very
diﬂ‘erent once a career story is placed alongside the same event.

Unlike the organizational analysis, the career analysis paid attention to self-
perceived abilities and ways that an individual leader will practice and test one’s abilities '
against reality. Abilities, already-possessed, are both reinforced and modiﬁed through
experience. In this case, John has had many past career experiences that presented
opportunities to hone his “negotiation skills” and to “help individuals with diverse ideas

to agree.” This same event, according to the career biography, was viewed as important

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to John’s learning and career development. John led discussions around a contoversial
issue, and lead the group to eventually support the merger in the face of contoversy.
John tells how this process provided new experiences and produced new abilities for
himself. John had to learn how to lead leaders, which he ﬁrst found to be a new career
challenge. He recognized, later, that this experience has improved his abilities. He
knows he will be better in the future at “leading leaders.” He even reveals that the
decision to support the merger without attaching any conditions was probably not the best
way to proceed.

Thus, the career biography considers that this set of follow-up activities, valued in
the organizational study, are likely to change, in the future. In the future, when John
attempts to lead leaders to reach a consensus on some other contoversial issue, the need
for future investigative (i.e., learning) activities may go away or be less necessary. If
John is better at guiding a dialogue that produces more complete knowledge, and leads
the group toward a better-informed decision, then subsequent learning activities may not
be needed in ﬁrture instances. Thus, what the organizational analysis depicts as an
eﬂective learning activity (post-discussions and follow-up), may not be needed if the
original decision making process is more effective.

Though the organizational study suggests that this type of follow up and
continued studied may be beneﬁcial learning opportunities and thus to be undertaken in
the future, the career study proposes that as a career matures and new abilities accumulate
from diﬂ‘erent experiences, new and improved ways of carrying out organizational
activities are likely. (John admitted he would do things a lot differently based on what he

learned from this experience.) While the organizational analysis guides us to look for

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learning through follow up activities, the career study guides us to investigate more about
how one type of experience informs and alters future activities. This is to say that, as I
John’s ability to lead a discussion among leaders with dissenting opinions improves,
carrying out further investigations (or even the presence of dissenting opinions after a
decision) may not occur. John may develop new ways of facilitating decision making
processes that will provide a richer and fuller understanding of the issue, prior to making
some decisions. The career issues, thus, contadict certain ideas about learning produced
in the case study. Other ways of learning, portayed through a career study, should alter
our thinking about the ways of learning discovered in the case study.

In a more general sense, career maturity should often improve individual
performance and thus should be a desired organizational feature. Career maturity is part
of understanding organizational learning. Problem solving methods that lead to stonger
and better decisions are desired by organizations. Though there appears to be a
contadiction between the two analyses, it seems more likely that both types of learning
are important ways of learning that ultimately aﬂ‘ect organizational achievements. Thus,
the parallel analyses inform each other. In this case, now that John is better at leading
leaders, he may also recognize that engaging in follow-up investigations, even after
certain solutions or decisions have been made, remains important to an organization’s
development. Also, he may have learned that even when dissenting opinions persist, the
value in planning future inquiries outweigh the beneﬁts of tying to reach a full consensus
initially. Either way, both analyses inform our ways of thinking about learning.

There are numerous ways of describing learning associated with organizational

achievements. Without adding the career issues, the organizational study may be

285

inaccurate, or, at least, incomplete. For HC 2000, future contoversies that are important
to an organization, may not be handled through follow up inquiries. The reasons for this
altered approach may not be clear if only a taditional organizational analysis is
conducted. The maturing of a career - that produces more effective organizational
activities — is one aspect of organizational learning that should not be overlooked. Thus,
incorporating a career analysis into an organizational development study seems
imperative, maybe essential. Without a career analysis, certain features of organizational
learning are elevated in importance and possibly over valued; the career analysis suggests
that the carrying out, and modiﬁcation of one’s self-perceived abilities in new settings
and in new ways will not only enhance a career, but will improve the organization.

A third ﬁnding, derived from contasting the two studies, suggests that
organizational analyses, without career considerations, tend to overlook times when an
individual’s ambivalence may either stengthen or deter an organization’s success. The
third ﬁnding from this study identiﬁes how varying ambivalent attitudes toward
organizations, in relation to career development, can signiﬁcantly inﬂuence an
organization’s development, but not necessarily in detimental ways.

#3 Individual ambivalence aﬁ‘ects an organization’s development.
Organizational analysis does not usually identify nor consider when career conﬂicts
might affect organizations. Organizational analysis assumes that any conﬂicts will
ultimately be resolved in the organization’s favor, or that an individual pursuing his or
her career will make the wow personal adjustment, to reso1ve any conﬂict between
organizational need and career needs. In contast, career analysis typically identiﬁes

shifting periods where these two sets of needs (organizational and individual)

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simultaneously conﬂict. As the individual works toward a desired state of judicious
ambivalence not only is the career affected, but so too is the organization. A career
analysis, integrated into an organizational analysis, can reveal more about times of
ambivalence toward organizations. This dual perspective not only studies a career
dilemma, but also considers its impact on an organization.

Organizational analysis, carried out within a human relations framework,
recognizes the value of people to the organization. For instance, contemporary
organizational studies take up social issues about organizational cultures; but these
studies tend to examine how individuals learn to become part of an existing culture. If
they ty to inﬂuence or change an organization’s culture, this is usually thought to be a
long arduous process, that has limited potential. Leadership issues recognize the need for
servicing both organizational and personal needs. But, both sets of ideas fail to recognize
that when the organizations pose signiﬁcant threats or deterrents to an individual’s career,
the individual will usually respond in ways most favorable (or secure) for their careers.
These responses may be directed at saving, salvaging, or advancing a career; but
whatever the response, it will be a part of organizational actions.

Actions stemming ﬁom conﬂicting goals, may seek to balance career interests and
organizational interests. But career-motivated actions may create actions that move away
ﬁ'om obedience and toward a form of rebellion, possibly a rebellion toward the
organization. Rebellious career initiatives, intending to preserve or enhance a career,
could cause serious consequences for the organization. A career analysis, placed in
relation to organizational development, begins to inform this type of thinking that is

critical to an organization’s development.

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An organizational study, that includes career considerations, helps recognize how
career decisions may produce both a compatibility and an incompatibility between the
individual career needs and organizational needs. While career choices may intend to
restore a judicious ambivalence, other choices may be for different reasons. At HC 2000,
the existence of a congruent ﬁt between organizational and individual needs is not clear
in either analysis of the organization. Also, the contemporary design of the organization,
does not help in such determination. As individuals in HC 2000 are encouraged, through
the organization’s design, to generate new ideas and produce creative solutions, whether
this is a threat or an opportunity to individual careers is not clear. There is continued
enthusiasm for the organizational activities, even though measurable tangible reductions
in health care costs have not been realized. Possibly the opportunity to experiment and
test new ideas in this organization are less imposing than if tied out in their primary
organizations. Also, given the voluntary nature of the membership, if the organization.
posed a signiﬁcant career threat, an individual could easily disassociate with HC 2000
without making a signiﬁcant career change. Given these two factors, members of HC
2000 are more likely to view their work in this organization as an opportunity, rather than
a threat, to their careers.

The case study of HC 2000, does not reveal much about any conﬂict that may
exist between the goals of the organization and the goals of individuals. The career
analysis reveals that the organizational nwds and John’s career needs at least for a while
were compatible. John, as Chair of the Board, seemed to achieve a desired judicious
ambivalence between his career needs and the organizational needs. As suggested earlier,

this may have changed since he did not choose to continue as Chair, even though his

288

knowledge and experience would most likely have been very beneﬁcial to the
organization.

In contast to John’s career needs, other board members (interviewed) implied that
the HC 2000 experiences were not signiﬁcantly different ﬁ'om other board experiences
they have had with other “community” organizations. Though most admitted that the
goals of the organization - to reduce company health care costs - were extemely
important to their companies. This fact can be borne out by studying features of their
limited involvement with the HC 2000. All six of the remaining board members
interviewed, confessed they had not been able to devote much time to HC 2000; though
the importance/potential of this organization could be very consequential to their
respective organizations. All six leaders admitted they were unable to attend all or even
most board meetings, and none suggested that this would be changing in the future.
Three board meetings took place during the course of the study, and attendance was poor
at each. Only ﬁve or six members, of the (now) ten member board were present. Each
time the ﬁve or six attending were different. Also, the leaders decided at the stategic
planning session (that only four board members attended, and three other board members
sent representatives), that they would, no longer meet bi-monthly. Board meetings are
now semi-annual, and executive board meetings composed of only the Chair, Vice Chair,
and HC 2000 Director, would be bi-monthly. This behavior suggests that these leaders
have chosen not to make the HC 2000 activities a signiﬁcant part of their careers. These
decisions, (choices), have a signiﬁcant aﬁect upon the organization. By limiting their
involvement in the organization, they are favoring career choices, over organizational

needs.

 

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To support this contention, ﬁrst, the interviews with the other board members
revealed that most do not plan to actively participate in ﬁrture HC 2000 activities. They
will continue to support the organization by remaining afﬁliated with it. Also, one board
member allocated “free” ofﬁce space at his corporate headquarters, so that the HC 2000
organization would have a physical presence in the community. All board members
agreed this would enhance the organization’s perceived stature. Also, two other board
members have “asked” several knowledgeable staﬂ members ﬁ'om their organizations to
chair the HC 2000 committees and provide whatever additional staﬁng resources the
committees determine are needed. But a fourth board member, from the banking
industy, (and the newest member), admitted he has joined HC 2000 to keep a watchful
eye on how this “business cooperative” procwds, and simply to learn how the
organization was planning to involve itself in future hospital merger activities. He noted
that the hospitals are important bank clients. A ﬁfth board member, admits he is nearing
retirement and thus suspending many of his past community activities, including his role
on the board. The last (sixth) board member, interviewed, said he would ﬁnish the
remainder of his term, and then resign. (He has not attended one meeting dining year.)
He admitted that HC 2000 is attempting to carry out a very important service to the
community. Yet since his organization had only one hundred employees, reducing health
care costs at his company is not as important for him as pursuing some other community
issue. He added that there were several other “community” endeavors he preferred to
support. Given the circumstances of the remaining board members interviewed,
satisfying both career needs and needs of their primary organizations seems to be taking

precedence over the needs of HC 2000. If any of these six individuals were to become

290

more actively involved in the HC 2000 organization, they would very likely begin to
affect the organization in signiﬁcant ways.

Knowing more about career considerations, as a way of assessing the organization
and its development, seems helpful. If an individual holds ambivalent feelings toward the
organizational needs in relation to career needs, some characterization of these feelings
can be very important to an organization’s deve10pment. At HC 2000, career-related
needs or desired among board members is limiting their involvement with the
organization, while other organizational members also operating in ways that may favor
their careers. For instance, the data and quality committee members may be discovering
that the HC 2000 organizational goals and their individual career goals are incompatible.
If career information about the committee had been gathered, an additional explanation
about the committee’s general lack of success may be better understood.

The organizational analysis describes the committee’s limited progress as partly
due to the absence of learning opportunities . . . at least of the type identiﬁed in this
study. The committee failed to increase the usefulness of the information database that
they created; and yet they profess an interest in wanting to utilize it more fully as a cost
cutting tool at their hospitals. The organizational analysis suggests that past experiences
did not contain learning opportunities, at least of the type studied, that might have
facilitated more success in this regard. In contast, the negotiating committee did make
signiﬁcant progress and engaged in learning experiences, according to the organizational
analysis. These learning experiences seem to be an impetus behind futme potential

SUCCCSSCS.

29]

If the analysis had intoduced career considerations about committee members,
the possibility of compatible and incompatible goals (career and organizational) might
provide another explanation. Possibly the individual data and quality committee members
are hesitant to proceed in the direction that HC 2000 wants them to proceed, because such
actions pose threats to their own careers. If committee members proceed to create an
information database, that historically has been conﬁdential, some outcomes are unknown
from this step and these unknowns may seem threatening to their careers. A career study
might explain their reluctance, or eXplain more about the absence of progress. A career
analysis (of the committee members) might reveal that ﬁnding new ways through the use
of a new database to reduce hospital costs may require diﬂemnt skills and abilities of the
individuals, such that they fear failure. This would be a new type of task that they would
be expected to carry out in their respective organizations. The fear of failure may
preclude the need for both the hospital organizations and HC 2000 to begin being able to
make cost comparisons. In the absence of a career analysis of the committee members,
the organizational explanation about why this committee has not been more successful is
probably incomplete.

Unlike organizational analysis, career analysis provides the opportunity to .
consider aspects of ambivalence that an individual may hold about an organization.
Career analysis exposes when and how ambivalence toward the organization, may aﬁ‘ect
the organization. Career analysis looks at the maturity of careers, and career choices
made from a variety of inﬂuences over the course of a career. These factors, important to
understanding career development, also seem important to understanding organizational

development. New explanations about why certain directions within organization are

-.H ~—- 1-

292

pursued, or not, emerge when career issues are considered. Integrating career
considerations into important organizational ideas potentially increases the level of
understanding about organizational achievements, as well as ideas associated with
learning. Organizational analysis rarely considers career ideas in this way.

Before offering concluding thoughts, there are two other considerations that
further demonstate the value of adding career development ideas to an organizational
development analysis. These become suggestions for future studies, that would
’ potentially substantiate or refute the above three ﬁndings.

Career models anticipate organizational outcomes. The four stage career
model (presented in chapter four) attempts to integrate ideas about the individual and
organization, just as this last chapter has done. Through this type of integrated model,
only those individuals in stages III or IV are thought likely to aﬁ‘ect the organization in
signiﬁcant ways. This model suggests that the individuals who will primarily engage in
activities and pursue developmental outcomes for the organization, over personal career
needs, are those individuals who have already matured and advanced in their careers
(stage III and IV). Individuals in the earlier stages of their careers, with fewer
developmental experiences, (stages I and II), will center their work around personal
individual development. This model, therefore, suggests that only after organizational
members acquire more experience, authority and responsibility, will they engage in
organizational activities that are a direct beneﬁt to the organization. However, this study
disputed this model. Even those board members (clearly in later career stages — ID or IV),
are making career choices over organizational choices. Thus, choices make to meet

organizational needs, versus career needs, may not be related to career stages.

293

Regardless, integrating career issues into an organizational study is possible and offers a
more comprehensive and complete way of studying organizations.

Industry considerations. This study did not collect information about the career
stages of the data and quality committee members. What is known, though, is that health
care reform is in its infancy. Few members of the health care industy have successfully
managed to create effective and sustained cost containment stategies. (See appendix)
Few examples of measuring the quality of health care are available. Such work is in its
infancy. Thus even if career issues associated with accumulated experiences and self-
perceived abilities had been identiﬁed, the needs of the health care industry may pose ‘
career threats to many individuals attempting to design new stategies. As noted earlier,
this organizational design may be one of the best opportunities for reducing this career
threat. If the committees are able to test and experiment in ways that do not require major
business changes or cause the hospitals or physicians to alter their activities, then
successful cost cutting approaches may result. A career analysis may reveal that this
organizational design, especially in this industy, is very conducive to producing eﬂ'ective
outcomes. Thus the conditions and characteristics of a particular industy is likely to be
an important factor in any study of organizational learning and development.

I Organizational loyalty or career development. Another possible way of
studying careers as a part of organizational development, is to build a closer relationship
between careers and motivation. An organizational analysis, might describe conﬂict
between the organization and the individual as the absence of worker loyalty or a lack of
motivation. Career concepts could suggest something quite different. Careers develop

when an individual can test self-perceived abilities against reality. In this way,

294

individuals develop their careers by practicing and modifying valued skills. They seek to
gain new knowledge from experiences. Careers mature. Individuals make career choices
based on multiple inﬂuences, and will pursue certain activities (make career choices)
based on those that offer the greatest likelihood of success and thus are most likely to aid
one’s career. Though new challenges may be inviting, if they seriously threaten or may
inﬁinge upon the security of an individual’s career, a decision to take on new challenges
may be avoided. (Thus, one reason why people are often perceived as resistant to
change.) Rather than believing individuals, who are acting certain ways or not taking
certain actions, are disloyal or lack motivation, individuals may simply be pursing their
careers in ways that produce a sense of security. These ways, though, may be of concern
for the organization if choices to retain a status quo interfere with needed changes.
Career decisions need to be more openly considered to understand motivation and
organizational loyalty. .

Career choices. Finally, if career issues really do inform organizational analyses,
a study of career choices could be related or associated directly with an organization’s
development. The career biography noted that, at ﬁrst, John’s career choice to become
chair of the HC 2000 organization did not seem to pose threats; in fact John most likely
say this as a career opportunity. His career choice deﬁnitely inﬂuenced the organization.
The career threat that he identiﬁed from his past, was outside his realm of contol, (a
large customer demanding lower prices for his company product); this suggests that he
ﬁnds ways of avoiding career threats and is astute at seizing career opportunities. John’s
unusually fast rise to the level of CEO has never fully been explained even in the career

analysis. However, maybe his career is laden with calculated decisions and choices that

295

have always resulted in career successes and he constucts ways of making his career
needs compatible with organizational needs. If there are times of ambivalence, he has
learned how to make career choices within an organization that do not negatively reﬂect
on the organization.

Career analysis is a way of understanding more about the role of career
development in organizations. Organizations can enhance or sustain careers. But careers
are affecting organizations in unknown and unstudied ways. Organizational learning is a
part of organizational development and should be better understood. Critical information
about career issues may surface along with organizational considerations as more studies
about learning in the organizational domain are carried out. The two forms of analysis —
organizational case study and career biographical analysis - together created a more
comprehensive understanding about organizational learning for the HC 2000
organization. The two analyses also provided ideas about career development within HC
2000. Given that some career information seems to extend the information, often
collected, the following reﬂections about organizational research as a way of informing
practice seem appropriate.

REFLECTIONS

Conceptualizations derived from organizational analysis and related literature is
often considered and applied to organizational situations. Ways of organizing and
carrying out organizational work is? often guided by theory. Yet, over the course of my
career, all too often, it seemed that organizational conceptualizations did not provide
much real value when attempting to use the information to guide actual practice; nor was

it very helpful when compared to the realities of organizations. Human relations models

296

enhanced the ideas contained in classical theory, and began to offer more “complex”
views about this phenomenon -- organizations. Human relations factors seemed to
“explain” some reasons why theory deviated ﬁom reality. By intoducing the human
element is intoduced, predictability is reduced. But, when actual practice still deviated
ﬁ'om human relations models, continuing doubts about the value of organizational
analysis resurfaced. Finally, contingency theories oﬁ’ered very useful excuses about how
theory and analysis did not really tell the whole story, nor have much generalizable,
predictive value.

I have stood before groups of leaders who want “why” explanations and “what to
do” information, so they can be able to predict outcomes from future actions. They
wanted cause and effect answers. Too often, after some discussion of theory and models,
a contast with what really might happen, caused me to feebly admit that most outcomes
really cannot be predicted, and, in fact, are likely to be inconsistent with theoretical
models. It seems there are just too many variables that aﬁect outcomes. How many times
did I respond to leaders, “It depends!”

If organizational theory does not help explain, nor mirror reality, then of what use
is it? Before beginning this study, I had already reached one signiﬁcant conclusion about
the usefulness of organizational analysis and theory to inform practice, a conclusion that
had evolved from several doctoral courses. This conclusion came ﬁ'om learning about the
power of stories. Stories may be based on actual experiences and can be framed
according to certain theoretical ways of thinking. Not a case analysis, (though there is a
resemblance), but stories ﬁlled with thoughts, emotions, opinions, history, — all carefully

constucted - as a way of informing practitioners. I came to believe that stories could be

297

a very powerful learning tool within the organizational domain . . . maybe more useful
than theoretical models.

I came to understand that a story may be informative and instructive, and what
can be learned and carried away by the reader could be individualized into practice. Such
application varies depending on the listener/reader, but nevertheless stories can inform
practice. I became convinced that a story, once told, will hold special meaning for each
individual and may add new insights into a person’s life. Personal insights gained from
stories are very likely retained and sometimes applied. For now, it seems okay that what
is actually thought about, learned, or applied to “real life” is highly individualized. The
important ﬁrst step, here, has been to learn how to tap into this resource - stories -- as a
way of providing more insight and understanding about what we can learn through study
and practice.

This study has been directed toward that goal. In what ways can stories help
inform organizational analysis and actual practice? Stories that are ﬁlled with details
about life experiences, but are told in such a way that they have a relationship to
organizational activities, has been the objective. Stories about most careers usually means
that a career story will be about organizations. Thus, this study has been one attempt to
coordinate the development of a career story within an organizational analysis
ﬁamework

The importance of a career upon the organization has been the focal point. This is
diﬂ‘erent than valuing people within the organization or recognizing their differences.
This is also diﬂ‘erent than recognizing and effectively utilizing the “human” resources of

an organization. Both of these ideas are already a part of organizational analysis. This is

298

a study about organizational development and the question asked here is whether career
information is useful to understanding this complex phenomenon -- organizations.

I believe this attempt to integrate parallel analyses, (of an organization and then a
career), elevates the value of career information in organizational analysis. There seems
to be little doubt, from this study, that as organizational activities, outcomes,
environmental features and values are studied, in relation to organizational development,
that some attention to the career development of organizational members should not be
omitted. But in organizational analysis, this is too often the case.

Thus, this study suggests there should be new ways of incorporating career stories
into organizational analysis. Recommendations on how this might be accomplished .
follows.

RECOMMENDATIONS

Questions about why careers are not regularly considered alongside organizational
studies have guided the following two recommendations: First, better accepted ways of
isolating and featuring career issues within organizational studies are needed. Next,
issues around differences in career maturity and organizational members’ needs should be
viewed beyond the scope of personal developmental issues and be added to other
organizational considerations.

First, we must ﬁnd ways of incorporating career issues into organizational
features. Too often career issues are the “hidden” agenda among organizational
members, especially when considering organizational development needs. When career
development needs are identiﬁed alongside organizational development needs, openly

and as a part of organizational problem solving, individuals run the risk of being judged

299

incompetent, unqualiﬁed or even disloyal. If an organizational member announces that a
certain organizational action is desired because it will enhance or stengthen some
personal ability, his/her motives are questioned. We are supposed to engage in certain
actions, and in certain ways that are considered best for the organization. What we don’t
admit is that we will take up certain actions within an organization because they are good
for our own career development. Also, we will avoid those actions that seem too risky, at
least for now, to our careers. By providing some legitimacy for career considerations as a
part of organizational development, more information about their interaction with
organizational decision making and problem solving activities can be informing.

A second advantage for incorporating career issues into organizational analysis is
that learning needs become more clear. Right now individual learning needs are held
onto closely, not openly discussed, and only carefully and selectively revealed within the
organizational setting. If circumstances present themselves, such as through an effective
performance appraisal system, an individual might identify training and experience
needed and desired for personal career development. Otherwise, individuals are not
encomaged to incorporate particular personal developmental needs or desired areas of
learning, within in discussions about meeting organizational needs. By coordinating and
legitimizing these two ideas - career development needs and organizational development
needs - the possibility of understanding more about organizational learning is enhanced.

This second recommendation suggests that career maturity issues need to become
a part of organizational analysis. The maturing process for a career not only needs to be
couched in terms of personal development considerations, but should also be considered

alongside other organizational development ideas. Personal development issues should

300

be more highly valued as a way of stiving to meet organizational needs. This study
suggests that this is already the reality, but not readily talked about or admitted! If a
person is forced to chose between an important organizational action that would
deﬁnitely restrict his/her career, or an important career action that might restict an
organization, common sense tells us that people are more likely to ﬁnd a way of doing
what is best for their careers, especially, when forced to chose or unable to ﬁnd a
compromise.

More and more often we read about how workers today are not as loyal to
organizations, as in the past. If we come to understand, value, appreciate and support
career development, as a part of organizational development, then career choices and
organizational direction might become more closely related. By considering both the
organization and individual careers, beneﬁts to both forms of development are more
likely. Many leaders modestly suggest that their career successes has mostly been due to
“luck.” This recommendation is just one way of saying that we need to learn how to
place the right people, in the right places, at the right time - to improve their “luck.”

The two recommendations, described above, are not insurmountable. There are a
great variety of methodologies for conducting organizational analyses. Also, there is a
continuing call for new and better ways of studying organizations and their deve pment.
Embedding career stories within the ﬁamework of organizational studies may provide
important new insights into our organizations — how they learn and develop. Career
development is a signiﬁcant part of an organization’s activities and deserves more

attention in our studies about organizational development and learning.

APPENDICES

APPENDIX A - INTERVIEW PROTOCOL

APPENDIX B - ORGANIZATIONAL DESCRIPTION - HC 2000

APPENDIX C - DESCRIPTION & ACHIEVEMENTS OF COMMITTEES

APPENDIX D - THE HEALTH CARE INDUSTRY AND CURRENT
REFORM MEASURES

APPENDIX E - GLOSSARY OF HEALTH CARE TERMS

APPENDIX F - BIBLIOGRAPHICAL SOURCES FOR APPENDICES

APPENDIX A

APPENDIX A

INTERVIEW PROTOCOL

INTRODUCTION (to be read to interviewees)

As you know, I am a graduate student at MSU in the College Of Education. I am
doing research for my dissertation which is about collaborative leadership especially as it
relates to adult learning & adult development.

As a member Ofthe Healthcare 2000 Board ofDirectors, you are engaging in a
leadership activity which is addressing a problem that is considered a very complex
dilemma . . . the problem of health care cost containment while (at the same time)
improving the quality of health care - in this case for West Michigan residents.

The pmpose of this interview is to collect information about your leadership
experiences as a member Ofthe Healthcare 2000 board. We will examine to what extent
you consider the activities of the board to be collaborative and possibly a form of
learning for you.

(SHOW CARD WITH COLLABORATION DEFINITION.) Before we begin, I
think it helpful to share a short deﬁnition of collaboration. One deﬁnition I like is:
“Collaboration can be thought of as a collective learning process one which involves
developing enough consensus arormd diverse interpretations for organized action to
result.” (Baltes). Later on, I will ask you what you think of this deﬁnition.

Duringthisinterview,wewilllookatprocessesthathaveledtheboardtoward
reaching some type Of consensus.

The questions are grouped in three categories. The ﬁrst two categories serve as a
backdrop to my analysis about the Healthcare 2000 board activities. I hope we can spend
about 30 minutes ontheﬁrsttwo sections. Thelastcategory-Ihopewewillhaveat
least an born- to discuss - which is the main subject of my study. The three categories are:
1. General information about your career history
2. Your Opinion about Leadership concepts
And the main subject of this interview:

3. Your perceptions about collaboration & collective learning in relation to your

Healthcare 2000 board experiences.

301

302

PART 1. PERSONAL CAREER HISTORY

Throughout the comse of one's life, many events and people Shape a career. A
career results ﬁ'om many inﬂuencing forces which are conscious and unconscious, formal
and informal. Time does not permit us to examine all inﬂuences that you might consider
signiﬁcant to your career. Instead, I am seeking a representative sample of some key

events in your career that relate to my study.

 

 

 

 

 

QUESTIONS NOTES/PROBES/
EXAMPLES

WORK & SCHOOL EXPERIENCES

1. Brieﬂy list the most signiﬁcant positions you have Analysis guided by:

held during your career. Describe the type of work you Super - self concept & tests

performed for some of the jobs, and those you consider against reality

the more important ones to your overall career. Dill, etc. - Career
development is due to
interactions between
individual and organizations

2. In addition to your past positions, what post-secondary

education, seminars, taining, and/or workshops do you

believe inﬂuenced your career? If any?

Describe some of these formal educational experiences

and how they affected your career. ,

INTERACTIONS - RELATIONSHIPS Related to career
development

 

3. Give an example Of one or two people who had a
Signiﬁcant eﬁ‘ect on your career. What kinds of things
did this person do to enhance your career?

 

4. Give an example Of l or 2 experiences that made a

For example, taking on a

 

 

signiﬁcant impression on you and your self-image as a speciﬁc role in the

leader. éwé ¢¢ community, or a book you
read, a speaker you listened
to, a hobby

COGNITIVE FEATURES

5. AS an adult, what subiects have interested you? What Formal and informal

kinds of things have you done to learn more about these
subjects?

learning: curiosities,
hobbies, reading preferences,
ways you to learn more about

something.

 

 

6. Describe at least one event in your life that posed a
serious threat or challenge to your career success as a
leader. How did you respond and what did you learn
from it? Does the event still inﬂuence your leadership
activities? How? '

 

 

 

 

303

 

 

7. Describe what you believe is your best way of
learning. For example, do you learn, retain and apply
new knowledge best because of your - your memory &
recall abilities, or information processing skills, or your
intelligence, or problem solving abilities, or some other
way that you think you learn the best ?

 

Maybe ask them to describe
collaboration?

Characteristics of how you
learn?

Which type of learn comes
easiest to you?

 

PART II.

COMMON FEATURES OF LEADERSHIP

Now that you have described some information about your career, lets brieﬂy
look at interactions with others, both in organizations and in the community.

 

QUESTIONS

NOTES/PROBES/
EXAMPLES

 

TRAITS/DESCRIPTORS

 

1. Within (your company) (Meijer, Steelcase, Old Kent,

Gardner - Leading Minds

 

 

 

Autocam, etc.), how do you believe employees would theorizes that leaders are tied

characterize you as a leader? What adjectives might they to their audiences; they seek

use to describe you? a relation between the stories
they tell and taits they
embody, and want to have
power through choice of
peOple rather than brute
force. .

2. Within the GR community and among colleagues

outside your company, how might others describe you as

a leader? What adjectives might they use to describe

you?

How is different or the same as your leadership within

(your company)?

3. Who else or what other groups of people are important ?customers?

to you in your leadership role and how might they ?govemment leaders?

describe you? ?family members?

LEADERSHIP DEFINITION

 

 

4. How do you deﬁne leadership? What do you consider
the most important features of good leadership?

 

 

 

 

304

 

5. We hear a lot today about Organizational Learning,
whichis usually deﬁned as an organization's ability to
learn and adapt. Organizational learning is thought to be
highly dependent upon the individual members abilities
to learn and adapt. Thus, leaders who are successful at
setting new directions for their organizations, are often
thought to be those who are eﬂ‘ective learners as well
as people who are able to eﬁ‘ectively act upon their new
knowledge. And how do you believe organizational
learning is related to individual learning? If at all.

Question seeks importance
they attach to both
organizational learning ,
concept (textbook) and their
behaviors & attitude that
they believe supports their
learning

 

6. GIVE CARD WITH LEADERSHIP DEFINITION.

Rost & Transformational

 

 

 

(including yourself) play in such different outcomes?

Along these same lines of thinking about "Leadership" Leadership Theory
concepts - In the 90's, Leadership is sometimes deﬁned give them a card with
as follows: "Leadership is an inﬂuence relationship deﬁnition typed on it and 4
among leaders and followers who intend real changes that key words rmderlined
reﬂect their mutual pmposes." There are 4 key phrases in
this deﬁnition (underlined) that I would like you to
consider: Inﬂuence Relationship, Leaders & Followers,
Real Change, and Mutual Pmpose.
I want you to apply these four ideas to yourself & your
behavior particularly in group settings (including HC

. 2000 board?) Also, to provide any examples that Tie these questions more to
describes the importance you attach to the ideas and to collaboration features?
tell me how you would rate the importance Of each
concept to leadership success, in general.
7. First - Inﬂuence Relationship - As a leader, please Changing opinions of others,
give an example of when an "Inﬂuence relationship” (as adjusting other thinking
opposed to another type Of relationship - like directing or persuasion versus new
contolling) is important; plus tell me how important you knowledge
believe the idea Of inﬂuence is in leadership situations.
8. Next - the roles of leaders & followers - As a leader, Examples
what are your expectations about followers? Do you ever Ranked as important
ﬁnd yourself in the role of a follower? If so, please consideration?
describe this.
9. Intending real change - Why do you think some Examples
organizations are able to produce "real change" and Ranked as important
others are not? What role do individual leaders consideration?

 

 

9. Mutual purposes - How do you think shared .
purposes come about? Please give some examples of
when members Of a group have moved tom diverse
goals or even conﬂicting purposes to shared goals and

Purpose.

 

 

 

305

PART III. COLLABORATION (Collective Learning & Adaptation)

Your work and thoughts about the Health Care 2000 board will be our focus for
the remainder Of this interview. Collaboration is currently being touted as a notable

beneﬁt to companies.

"A well-developed ability to create and sustain ﬁ'uitful
collaborations gives companies a Signiﬁcant competitive leg

up."(Kanter, 1994 I-IBR).

Also, the process of collaboration is thought to amplify the importance Of leadership

abilities, not reduce them, as some have suggested.

I believe, the activities Of the Health Care 2000 board can be thought Of as a
process of collaboration. Leadership theorists state that one of the compelling reasons to
use the process of collaboration is when facing a problem or goal that has competing
forces. HC 2000 states it's mission as "providing high quality health care to West
Michigan and at the same time to contain and/or reduce health care costs. These have the

potential of being competing forces.

As a member Of the HC 2000 board, I am interested in the challenges you have
faced and anticipate facing in the future. Also, I hope to look at your experiences with
HC 2000 in relation to the leadership deﬁnition that we just examined (inﬂuencing,
followers, real change, mutual purposes) and the idea Of collaboration (collective

 

 

 

 

learning).
QUESTIONS NOTES/PROBESIEXAMPLES
* HISTORY & OVERALL (GENERAL) '
THOUGHTS
‘ 1. When did you become a member of the HC Probe for diﬂ‘erences between Jerry
2000 board? Why did you decide to be a Myers initiative versus today??
member? *similarities/differences in cultural &
Why do you continue to be member? And, how philosophical beliefs?
long do you plan to remain a member? Why? complementary stategic intent?
(competitive model in health care?)
2. Please describe some Of the "highlights," Context & outcomes ﬁorn
stages or plateaus that the HC 2000 organization collaboration
' has experienced since its inception or, at least, system-wide needs? ' .
since beginning your association with the board. broad ranging implications?
Have you been involved in other "organizations" crises? (Bass, Avioli, p.34)

or groups that flmction similar to this board?
Name them. In what ways are they similar?
Different? '

 

 

*?comprehensive planning

 

 

306

 

3. Describe the extent of your involvement with
this board.

Such as the amount of time, preparation, and
other efforts your membership has required. . .
Is this different than what you expected before
you joined the board? Why?

percentage of time vs. anticipated
Importance of relationships vs.

dealing with substantive issues?

 

 

4. Describe some Of the challenges, rewards,
ﬁ'ustations, etc., for you, (as a member Of this
board). Were some of your experiences more
muggy challenging - than professional?
Please describe?

Examples: ambiguities, lack of information,
conﬂicting information,

 

Cognitive values, mission & culture -
tadeoffs, ambiguities, consensus on
one dimension and not on others?
Challenges, rewards, successes,
ﬁ'ustations

 

 

DECISION MAKING PROCESSES OF
BOARD

 

5. Giventhattherearereallynoprescribed .
solutions to lowering health care costs while still
maintaining quality service, describe some of the
most signiﬁcant decisions that have been made
bytheHC 2000 board, thatwereintendedto
contol healthcare costs and/or ensrue quality
service? Describe how the board has arrived at
some of these decisions.

Would you characterize most board meetings as
a negotiation process among members or series

Suggestions? Decisions board has

made or discussed

l.Support of merger Of two hospitals

2. Hospital purchasing contacts

3. "new" information database about
health care costs -

4. Certiﬁcate Of Need (Alliance for

Health) - all capital expenditures have .

to be approved by a group?

Type of exchanges that have gone on

among board members (negotiation

vs. discussions)Stages of

collaboration: explore needs of all

 

of discussions, or something else? board members ﬁnd common ground
(solutions/ideas) & improve
relationships among members

6. Generally, how would you describe the Give & Take '

decision making process by the Healthcare 2000
board?

How has consensus been achieved on certain
issues?

(Process, type of dialogue, etc.)

One person takes lead & contols & is
then supported?

 

 

7. In retospect, which decisions do you believe
have been better than others?

Which decisions have you most agreed with?
Most Disagree with? (or had concerns about)?

 

 

 

 

307

 

8. Individual leaders are sometimes called upon
, to provide inspiration, creative ideas, and
encouragement to Others. What examples can
you give when other HC 2000 board members
were inspirational, creative or encouraging in
ways that helped the board reach a consensus?
What examples can you give when you believe
you "turned" or inﬂuenced a decision - i.e.,
actions that inspired, were creative or provided
encouragement?

From a need for more knowledge?
Inspirational comments?
Compelling reasons presented?

Outside inﬂuences - not ﬁ'om board
members??? (legislation?, community
activities?)

 

 

RE: LEADERSHIP DEFINITION

 

9. If leadership is a process involving an
exchange between leaders and followers (noting
that those roles do shift), can you contast times
when you felt more like a leader versus other
times When you would assume a more follower-
type of role with the HC2000 board ?

Seek indicators of collaboration
Inﬂuencing examples &
learning/teaching experiences?
contol versus nurture?

give and take processes?

 

10. How would you describe the activity of
"inﬂuencing" as it relates to the HC 2000 board
activities. Who or what have been primary
"inﬂuencing" forces affecting the board's
decisions and actions? Why do you think these
forces or people were inﬂuential?

Local considerations versus generic
industry (health care issues???

 

11. RE: Mutual purpose - If sometimes your
goals or purpose were sometimes different than
other board members, how have you
responded/reacted or dealt with this? If there
was no difference in your goals and other
members of the board, why do you think this is?

co—Opting?
responses to public/press?

 

 

12. Real Change - Recognizing that the results
of many decisions and actions are not fully
known for several years, what changes do you
believe have come about (or will come about) as
a result Of Healthcare 2000 board actions?

 

 

 

308

 

LEARNING & ADAPT ATING CONCEPTS

 

13. I am really interested in whether your experiences as
a member Ofthe HC 2000 board has produced any
change for you as a leader? To pursue this question, we
will consider the idea of "adaptive competency." GIVE
CARD ON ADAPTIVE COMPETENCY.

Adaptive compgtengy refers to an individual's learning
capacity and their ability to respond (with resilience) to
challenges arising from one's body, mind and/or
environment - or the ability to change. One researcher
(Baltes) refers to adaptive competency as "increasing the
range of functioning Of a given person in response to an
ill-stuctured dilemma."

The problems Sin-rounding health care issues are ill-
stuctured and tuly a dilemma. Thus, the following

’ questions are about the producing real change - within
ourselves and when we see a need to adapt -

First, has there been any new or Signiﬁcant
learning for you because of your experiences as a HC
2000 board member?

Why?

Either: How has this learning changed you, even
in some small way - or does an experience have the
potential to change you?

Or: Iflittle or no learning has occurred through
HC 2000, what other group experience has caused you to
adapt or change in some way? Please brieﬂy describe.

Start thinking about after
learning, how does the
learning tanslate into
changed behaviors '

 

13. What part ofyour board experiences have been more
routine or common experiences (i.e., similar to other
board or leadership experiences)? What part have been
unique? TO what do you attribute these differences?

 

14. In contast, what are some core leadership behaviors
that you believe you always use regardless of the setting
and problem before you?

 

 

15. Please describe any other thoughts you have about
your experiences with the HC 2000 board - anything that
you think is important for me to consider.

 

 

 

309

 

FINAL QUESTIONS

 

lNTRODUCTION: In responding to these ﬁnal few
questions, I would like you to, again, consider your entire
. leadership career. You may want to select one or two

signiﬁcant events that aﬂected you, in some way, as a
leader. (Pause) '

 

1. Can you think Of any major events (historical, social,
religious, physical, family-related, etc.) that occurred in
your lifetime and that you believe contributed to your
ability as a leader? Please give several examples.

 

 

 

 

2. Were there any turning points in your career as a looking for resiliency &
leader? What caused them? How did they aﬂ‘ect your attitude

career? Redundant question?

3. In what ways do you see yom'self as a "source" of looking for contast from
knowledge, or does knowledge come to you ﬁ'0m outside inner stengths versus outer
yoruself? Please explain. support/detiments '

4. One ﬁnal question: DO the drawbacks of group
Which of the two ways do you believe has been your best eﬁ‘orts outweigh the beneﬁts
way of learning & speciﬁcally how you best have learned - in their Opinion

to adapt or change yourself to meet leadership challenges
- DO you best learn through collaboration with others?
OR

Do you best learn through your own individual thinking
and processing abilities?

. . . Asked diﬂ'erently, "Have you adapted and changed as
a leader more as a result of collaborating with others, or
from solitary study and reﬂection?” Why do you
conclude this?

 

 

 

APPENDIX B

APPENDIX B
ORGANIZATIONAL DESCRIPTION - HC 2000
The following information presents information about a speciﬁc local
organization that is attempting to change the health care industy. Its stucture,
formation, and intended role in the industry are described.
Organization Name: HC 2000 ’

Incorporation date: 1993
Organization Type: Non-proﬁt Michigan Corporation

Description: Coalition of area employers

Assets (9/30/96) $88,241

Revenue: Membership Fees, based per employee rates
Income (9/30/96) $14,436 '
Organimtional Stucture:

President - Paid consultant
Board of Directors - Nine volunteer CEO’s of member companies
Committees: (all volunteer)

 

 

 

 

 

 

 

 

 

Table A.1
HC 2000 COMMITTEE COMPOSITION
Negotiating Committee 6 member business representatives
Data & Quality Committee 20 business & hospital professionals &
, physicians
Health Information Implementation 9 member subgroup Of Data & Quality
Committee Committee
HIS Provider Advisory Group Committee 9 member subgroup of Data & Quality .
Committee
M.E.D.I Steering Committee 14 member companies’ Beneﬁts
L Administators
M.E.D.I. Provider Advisory Committee 24 hospital administrators & physicians
Medical Technical Subcommittee 30 business & hospital professionals
& physicians

 

 

Note: Many committee members serve on multiple committees. In some cases the
business representatives are also providers of health care support services, such as
ambulatory or laboratory service companies.
Organization Members:
Sustainers - full voting rights, 75+ companies, representing 100,000+ lives
Colleagues - no voting rights, 18 companies

310

 

311

Mission Statement: To create a community agenda on health care, representing the
interests of employers by achieving cost containment and cost
reduction while preserving and improving the quality of care
delivered.

THE FORMATION OF HC 2000

The reason for forming the HC 2000 organization was described in a “position
paper,” written March, 1993, by the President and CEO (Jerry) of the largest employer in
this mid-westem community. (This international company is a Fortune 500 company and
hasitsheadquartersinthe local area.) Thepaperwaswrittenanddistibutedto selected
area business leaders. The position paper described that “for the past eighteen months a
coalition group of four large employers in the local community have been meeting and
addressing healthcare issues. -. . . The group had been engaging in cooperative eﬁ'orts
with the four area hospitals and a number of physicians.”

The author of the paper goes on to describe the need for this organization as a
direct response to the nation’s medical bill rising by another 11% in 1992, four times the
overall inﬂation rate and three thes the growth in the economy. He notes: “Healthcare in
the United States now conSumes almost 14% of our gross national product. That’s a
higher percentage than any other developed county in the worl ” The position paper
states that other communities are tying to bring these escalating costs under contol. He
also addresses this question, “Isn’t national healthcare reform on the way?” And
concludes that even if it is, and even though the healthcare costs in his locale compare

favorably with other communities throughout the county, “they (healthcare prices) are

312

still too high and the rate of increase is unacceptable.” The solution to this national
problem is a local one, says Jerry.

Jerry concludes that emplOyerS must join forces to establish a competitive
“counterbalance” to hospitals and physicians. “We should recognize that they (hospitals
and physicians) must make decisions and take actions that are in the best interests of their
own organizations. We do the same. This new organization is needed to provide better
competitive balance - to stimulate hospitals and physicians to respond to the needs of
employers and to optimize healthcare resources at the community leve .”

With this inauspicious organizational beginning, that involved many of the largest
employers in one local area (CEOS), HC 2000 was incorporated in 1993.

ROLE OF HC 2000 IN HEALTH CARE INDUSTRY

HC 2000 is an organization described by both its members and by community
members. as a purchasing cooperative. To many people, this organimtion is another
managed care entity, which in the health care industy carries a negative connotation.
However, the crnrent leaders of HC 2000 describe the organization as ‘ﬁmique” and
“something new,” and if they are managed care, they Oﬁ‘er a new and better type.

There are three main entities in the health care industy: the providers, the
pmchasers (payers) and the users of health care. For each type of entity there are many
varieties of organizations. The health care industy is considered a very complex
industry. Providers primarily consistof physicians and hospitals, but providers also
includes nurses, home care providers, ambulatory services, laboratories, pharmacies,
medical equipment suppliers, etc. The pln'chasers or payers are predominantly private

insurance companies, Medicare and Medicaid, but also include HMOS, agents or

313

representatives of payers, employers who are self-insmed, PPOMS and Preferred Provider
Organizations (PPO). The consumers or users of health care are primarily the individual
patents (those who are sick), but also includes individuals who are well and seek out
health care services to both maintain their health and prevent future health problems.

HC 2000 considers itself a purchaser of health care. It sees itself as a unique
pmehaser because Of the desire to purchase health care directly from providers, not
through an insurance company or an HMO, which is more typical for purchasers of health
care. The best explanation of how HC 2000 views itself as diﬁ‘erent ﬁ'om other
purchasers is to note their overall long term goal, which is: HC 2000 wants to retlnn the
physician and the patient to the center of the pricing stucture of health care. Another
generally held opinion by most HC 2000 leaders is that the organimtion was started
because insurance companies, I-IMO’S, and other pluchasing agents have too much
contol over prices in the industy and currently add no value to the system.

Recently, a board member was quoted in HC 2000’s 1996 annual report as saying,
“The wide range of costs and prices for the same service was immediately surprising.”
The cmrent President of HC 2000 describes the organization as being driven by “value,”

which he deﬁnes as quality over cost. The President is quoted from the same annual
. report: “We are striving to have the highest quality health care delivered at the best price -
which is not necessarily the lowest price.” Unlike other all other purchasers, HC 2000
has established a goal to “negotiate standard prices with providers.” Thus, the goal of
creating a community-based pricing stucture, is believed to set this organization apart

from all other purchasing organizations or managed care entities.

314

The result Of this goal (community-based pricing) has led the organization to
follow two main principles in their decision making processes: eliminate cost shifting
and no steerage. Both of these elements in the health care industy are widely practiced
and generally accepted. Cost shifting is a descriptor for charging diﬁ'erent prices to
diﬁ‘erent groups. For example, Medicare pays hospitals less than commercial insurers are
paying hospitals for the same services. PPOs are charged less than small indemnity
insm'ers. Thus cost shifting is considered price discrimination. Steerage is the process of
steering toward or preferring one provider over another. HC 2000 believes that with
standard prices for all providers, they will have to compete on quality and service, which
means that quality and service should inrprove. Standard pricing means that the
consumer will steer their business for reasons other than coverage or cost. Part of the
challenge for HC 2000, is to ﬁnd ways to establish a fair market price for each of the
various health care services. Most opinions circulating at meetings and in reports on the

industy suggest that standardizing prices based on costs is probably impossible.

APPENDIX C

APPENDIX C
DESCRIPTION & ACHIEVEMENTS OF COMMITTEES
Introduction

At the top of the organizational chart of HC 2000, if there was one, is a Board of
Directors. Several committees and advisory groups form the rest of the organization.
There is one paid staff member, the President, who is a consultant splitting his time
. between this coalition and another similar group in a neighboring community. Each
group Of leaders (committee) is separated by ﬁmction and expertise. Responsibilities are
not clearly deﬁned, and there areno written operating procedures. There seem to be no
rules or regulations to limit any grOUps activities. Each group seems autonomous.

Since the organization’s beginning in 1993 until the fall of 1996, the Board of
directors met bi-monthly. In the fall of 1996, the Board decided to meet less often (semi-
annually), with a smaller executive group meeting bi-monthly. Along with this decision,
the Board gave more autonomy to the committees and the (new) President. For example,
the negotiating committee, all volunteers from member companies, have been told to
proceed to seek ways to lower costs and secure better values ﬁom any health providers
they deem necessary. Who and what type ofagreements to pursue was left to the
discretion of the committee. Final approval of any formal agreements would require
Board approval. I

The action of giving the committees more autonomy, I believe, was taken because
Of the Board’s satisfaction with all committee activities to date. However, it could be due
to a lowered interest in the organization’s activities or a sentiment that the organintion

was not effective and thus not worthy of their time. The following information describes

315

316

each committee and the type Of activities they have engaged in during the last three years.
The results of their work is also described The ﬁnal section describes the pricing
concept that HC 2000 has used in the past with the hospitals and plans to continue
ascribing to in the future.

Negotiating Committee

Description: This cOmmittee is composed Of six business leaders, each from a
different employer in the local community. Their responsibilities at their respective
companies range from ﬁnancial and accormting administaﬁon to human resources and
ﬁinge beneﬁt planning and administaﬁon. The committee is charged with the authority
to negotiate pricing contacts with the diﬂ‘erent providers of health care. Though they
seek ﬁnal approval of contractual agreements ﬁ'om HC 2000’s CEO Board of Directors,
they have the autonomy to develop and negotiate contacts.

Achievements to date: The most signiﬁcant achievement of this committee was
accomplished in Spring of 1996. Contactual agreements for a ﬁxed fee schedule with all
four acute care hospitals in the area were reached. The chair of the committee, who is the
Chief Financial Oﬂicer for a major grocery business in the area, refers to these
contactual agreements as. a signiﬁcant milestone for the organization and its members.
“The contacts guarantee standard pricing for 50 inpatient admission categories, those
which account for an estimated 75% of all inpatient charges. The agreements include:
ﬁxed prices for three years; billing at the negotiated price which eliminates the cost of a
third party repricer; and the ability to coordinate contact with existing PPO
arrangements. As a result of the pricing agreements, there is an improved process

evaluation and hospital efﬁciencies.

317

Data & Quality Committee

Description: Given the large number of products and services in the health care
industy, comparison data that could be used to help determine “fair prices” and “good
value” is extemely limited in this industy. This committee is charged with deﬁning and
interpreting information in ways that will ultimately beneﬁt the entire community.

Achievements to date: Information provided by this committee was the primary
source used for establishing actual prices used by the negotiating committee for the
pricing contacts described above. The chair of this committee, a Professor of Economics
at a local private college, described it as an earnest effort to collect data that became a
substantial base Of information for tacking the key price, quality and performance
indicators of the four acute care hospitals in the area. In the 1996 annual report, he
describes the resulting achievement Of the committee’s work: “We’ve made it possible to
ﬁnally achieve a fair, standard rate for the whole community.”
ME.D.I Steering Committee

Description: This is a community leadership group that receives assistance from
HC 2000 and other business coalitions in surrounding communities. Their purpose is to
identify measures to reduce administative costs related to health care for the payers.

Achievements to date: In 1994 the committee piloted one of the nation’s ﬁrst
privately flmded Community Health Information Networks (cum). The goal was to
take cost out Of the claims tansaction process and improve turnaround time for payment.
A paperless system for claims processing between several local employers and one local
hospital was the ﬁrst attempt to take a electonic data interchange concept from the

drawing board to implementation.

318

M.E.D.I. is planning to extend its eﬁ‘orts to include data collection and the ability
to electronically transfer imaging, lab results and clinical records between health care
providers. These initiatives have the potential to improve the quality of healthcare and
reduce administrative costs. This group has not met dming the period this study has been
carried out.

Pricing Concept for Hospital Contracts & Future Contracts

The Data and Quality Committee started the processes that could lead to this
pricing concept. This committee met with representatives of all four hospitals, and are
representatives of the hospitals themselves, and designed a system of collecting “charge”
information on the most common in-patient procedures, (i.e., services) that the hospitals
provided. This is referred to as the 50 DRGs (Diagnosis Related Group) that make up
over 7 5% of all the in-patient hospitals services. (This group of ﬁfty procedures was
identiﬁed by the hospitals, but guided by a mid-west regional information database I
service.)

Using the DRG coding system is not without its problems, but advisory members
and members of the committee agreed it was the only standard coding system available.
(This classiﬁcation system was created in the 1980’s by Medicare for a more consistent
payment system.) For examme, one DRG (#143) represents the charges for a patient
admitted with chest pain. Another DRG (#370) is a cesarean section and DRG (# 372) is
a vaginal delivery without complications. DRG (#72) is bronchitis and asthma for ages
18—69 without complications and DRG (#98) is bronchitis and asthma for ages 0-17. The

advantage to using DRGs is that the same group of procedures will be used by all four

319

hospitals for each DRG. This makes cross comparisons possible between the hospitals;
or as they say, “They are able to compare apples to apples.”

In 1993, HC 2000 created the Data and Quality committee which included
representatives from all four hospitals, both administrators and physicians (Chief of
Staﬁ). Committee discussions centered arormd the need to begin collecting charge
information for the purpose of determining where there might be excess costs that could
be removed. The hospitals agreed to provide this information and now pay $100 per I
month (to a computer service) to receive quarterly summaries about their own charges, as
compared to severity-adjusted charges in the mid-west. They do not receive information
about the other hospitals in the local area, only their own information! four hospitals.
(The idea of sharing this information among their “competitors” is still unsettling ,to the
committee members,~i.e., hospital representatives.) HC 2000 receives information on all
four hospitals.

Using twelve months of charge information from all four hospitals, HC 2000
analyzed the rates by DRG. From the actual charges at the four local hospitals, compared
to regional charges and to each other, (and the data was severity-adjusted), an “average”
or “fair” price was established. (See graph on Community-based Pricing Model - Chapter
3.) The prices that HC 2000 proceeded to negotiate were not the lowest prices, but a fair
price as determined by past charges among all hospitals. The contracts also included a
three year sliding scale for those hospitals charging above the negotiated price, to allow a
more gradual movement toward the desired rate. Those hospitals that were currently
charging below the negotiated price could either continue to charge their lower price or

move up to the negotiated price. As might be expected, depending on the DRG, a

320

hospital may be agreeing to bring down a charge for one DRG, but is also able to raise
their price for another DRG. ‘

Given this model, the negotiating committee proceeded to initiate conversations
with each of the hospitals to establish a three year pricing contract. Negotiations lasted
over twelve months; with several unexpected detours. Committee members admit there
were times when they felt they would not accomplish what they set out.

Plans are underway to apply this same approach to several local physician groups,

which are thought to represent the at least half of all physicians in the area.

APPENDIX D

APPENDIX D
THE HEALTH CARE INDUSTRY AND CURRENT REFORM MEASURES

Introduction

The health care industry has received signiﬁcant attention, especially during the
last ﬁve to ten years. This is mainly due to rapidly rising costs in the industry. What the
future holds for this industry is precarious and the stakeholders in the industry (and there
are many) are unsure about the fallout from any reform measures. Predictions of what is
likely to happen, are thwarted because currently there are many experimental and trial
reform measures with unforeseen consequences. Certain health carereform measures
being initiated by businesses are of special interest to this study. What are they? What
has been their eﬂ‘ect so far on controlling the rising costs? And what strategies are on the
horizon by businesses? More speciﬁcally, what have other similar organizations ,
generally referred to as business alliances, set out to do and accomplished? What are the
future prospects for this type of organization?

.A chronological look at the health care industry is a good way to begin to my to
conceptualize this industry.

CHRONOLOGY OF HEALTH CARE INDUSTRY

Prepaid health care coverage is provided to many workers in the United States.
The following chronology highlights a 60 year history that began by hospitals oﬁ‘ering a
monthly fee for health care coverage for workers. The story of the industry is still being
written and many believe that signiﬁcant changes are on the horizon. Who would have
guessed that such a simple beginning (prepaid health care), would have led to the multi-

tiered, heavily bureaucratized, complex network that exists today.

321

322

The health care industry has been characterized as a dysfunctional and
disorganized system. Needed reform measm'es usually center around the need for greater
integration coordination among the numerous health care entities. It is likely that reform
1 measures will result in the demise of some organizations operating in this industry, but
reform actions appear to be giving rise to new organizations, as well. The prospect that
the industry will be less complex is very unlikely.

Health care is a national problem, but most believe that the best solutions will be
local. Health care is an economic, social and political issue. Below, several major
national events are identiﬁed. Many signiﬁcant health care events appeared at diﬁ‘erent
time in diﬁ‘erent parts of our country. This chronology features both major national and
Michigan events, since Michigan is the state where the HC 2000 organization, the subject
organization, operates. Similar patterns of events were occurring at approximately the

same times, in most other states.

 

 

Table D.l
YEAR EVENT
1929 First prepgd mm gage covgge offered to workm: Baylor University

Hospital in Texas develops prepaid health care coverage for group of Texas
school teachers. For a small monthly fee they were guaranteed health care, and
the hospital was assured of payment for services to subscribers.

 

1938 First maid hospital services in Michigan: Detroit District Hospital Council
forms an association (Michigan Society for Group Hospitalization) to provide
prepaid hospital services; and Michigan State Medical Society begins work on a
medical prepayment plan to reimburse physicians.

 

 

1939 B gm ing of ystem to ac_cept reimbursement as full merit: Employees of
John Hancock Mutual Life Insurance Company can prepay at a rate of $1.90

per month, for he and his family to have 21 days of hospital care in a semi-
private room. Participating hospitals agree to accept reimbursement as payment
in full for care.

Md health ﬂ plans legalized as non-proﬁt and ﬂ exempt Qtities:
‘Michigan Public Acts 108 and 109 or 1939 become law. Governor Dickenson
is quotes as saying: “I signed these bills with much satisfaction because they
form the foundation of a new service which will afford to families of moderate
income the assurance of adequate medical attention and hospitalization. Under

 

 

 

323

 

present conditions, the very poor

and the very rich are looked after. The poor are provided for through relief
agencies and Special apprOpriations for the care of the indigent. The rich have
not trouble meeting the fees of the specialists.”

*PA 108 and 109 establish that prepaid health care plans are nonproﬁt and tax
exempt; they are called charitable and benevolent in the laws are community-
based hospitals, to justify the tax exemption.

 

1940 Simiﬁcant membership gmwth for pregid health care: Michigan Society for
Group Hospitalization announce enrollment of 175,000 subscribers in 350

employee groups, including Michigan Consolidated Gas Company, Detroit
Bank, Federal Reserve Bank, Socony-Vacuum Oil Company and Ford Motor
Company joins soon after.

This association begins using the Blue Cross symbol with the seal of the
American Hospital Association superimposed, (a blue cross & blue shield).
Physicians accept reimbursement as payment in full for services to members
with family income not exceeding $2500, which applies to 90 percent of the
members. The remaining 10 percent could be charged slightly higher fees, with
the difference to be paid by the subscriber.

 

1945-1950 Continued gppwth of maid health care: Blue Cross and Blue Shield, formerly
Michigan Society for Group Hospitalization, starts community enrollment
program and individual contracts are marketed. .

 

. 1958 Multiple reimbursement levels: Due to rising incomes, Blue Shield establishes
three income ceilings - $2,500, $5,000, $7,500 - each with different
reimbursement levels and subscription rates.

 

 

1959 Senior Citizen coverage: BCBS markets contracts for individual senior citizens.
1962 Health care mding guals 5.4% of gmss domestic product

New Guarantees for catastrophic illnesses: Master medical coverage is
introduced to guarantee payments for catastrophic and long-term illnesses

 

1964 Qutrol of plans shifts from hospitals and physicians to customers: Blue Cross

shifts majority control from hospital and physician representatives. Customers
(businesses) and subscribers now hold 52 percent of the seats.

 

1966 Administration of Medicare and Medicaid changed: Blue Shield selected by
US. Department of Health, Education and Welfare to administer Medicare Part
B (physician services) and Medicare Part A (hospital care) in Michigan and to
administer Medicaid, the federal-state health insurance plan for the needy.
(later this responsibility was turned over to the state of Michigan)

 

1968 Shift from income based fee schedules to “customgy & reasgnable” fﬂ: To
- eliminate the need for constant upward adjustment of income ceilings, Blue

Shield introduces a “variable fee” reimbursement. BCBS pays physicians what
is considered “customary and reasonable” based on a prevailing range of fees
charged by doctors of the same qualiﬁcations in the same geographic area. In
return the participating physician accepts the reimbursement as full payment for
services to members.

 

1970-72 Health care sting Quals 7.5% of grpss domesp'p Mum
More controls shifted to consumers: Blue Shield board of directors, follows

Blue Cross actions, and restructures its board of directors, giving customer-
subscribers 52% control. Decision making authority is shifted to the consumer.

 

 

 

1975 Inmpratipp of insurance providers: Michigan Blue Cross and Michigan Blue

 

 

 

324

 

Shield form a single corporation, and increase majority control of 59% to its
customers and subscribers.

I

 

1976

The start of managed care grpups (@031: Blue Care Network of Southeast
Michigan, Michigan’s ﬁrst health maintenance organization (HMO) is formed
by BCBS

 

1979-1983

Additional Blue Care Networks are established across the state

 

1980-82

Health care smuding equals 10.3% of gmss domestic product: According to a
report by Families USA, a nonproﬁt health care advocacy organization, the

average family spent $1,742 on health care this year.

 

' 1985

Insurance commies no longer tax exempt: PA 350 declared legal and replace
PA 108 and 109. PA 350 eliminates federal tax exemptions for BCBS plans.

They are declared “stock, property and casualty insurance companies.”

 

1989

Capitation plans, rather than fee for services, begin: BCBS starts offering
hospitals a new reimbursement contract that replaces cost-based, global

payment system with a ﬁxed-payment—per-case system; eventually all
community hospitals agree to participate.

 

1990

Alternate managed care gmups developing: Physicians and other health care
providers are offered a new participating agreement that includes a simpliﬁed
payment schedule and an advisory committees composed of physicians. Eight
out of ten physicians in the state accept the participation plan.

*A PPO (Preferred Provider Option) is offered to individual, non group
subscribers for the ﬁrst time.

 

1992

Health care din uals 1. %of d 'c ' d ub the
in 1972)

Preventive hglth care emptied: care BCBS begins sponsoring free preventive
health care for children and continuing medical education for physicians

 

1990

A mrted 56% increase in health car-e cost for the avegge family since l9§Qz
According to a report by Families USA, a nonproﬁt health care advocacy

origranization, the average family in the US spent $4,000 on health care this year.

 

1994

Health care costs fell fcﬁn'st time in ﬁve years.

Clinton’s Health Care Plan announced and immediately is dpgmed:
BCBS buys the Accident Fund, a worker’s compensation insurance company,

which is the largest “privatization” in American history.

 

1995

Man ed care llans which include reventive care such ofﬁce vis' we -
baby care and immunizations, are offered

*Integrated health management is identiﬁed as a concept of assisting people
who are well to stay well, identifying those at risk for health problems and
reducing the risk through lifestyle changes and managing the care of the
chronically or seriously ill persons

 

 

1996

 

National bills proposed on Medicare reform, health msurance tax deductions,
and malpractice regulations

 

 

This chronology identiﬁes 60 years of growth resulting in a very large and

complex industry. Private and public groups have aﬁ‘ected the changes, as have national

325

and state governments. Health care in our country has become a major expense and most
recently is an expense that has been growing out of control. There is little doubt in most
people’s opinions that the “system” is broken and needs ﬁxing. Just how to “ﬁx” this
large and complex entity of society, while not creating new (more serious problems) is
the question being considered by many.
CURRENT ISSUES OF THE INDUSTRY

Rising costs and ineﬁiciencies in the health care industry are at the heart of all
other concerns. The quality of health care, generally, is considered some of the best in
the world. But the questions seem to focus on why does the cost of this high quality care
keep going up? There are many reasons why the costs are going up. Most often
identiﬁed are: technology, aging population, litigation, unnecessary or inappropriate care
and a growing uninsured or underinsured population. In addition, pressure on providers
and government to pass costs along to businesses is a veriﬁable reality (cost shifting).
Major economic issues tend to deal with cost containment in a multiered system,
decisions of allocation (who pays), and labor market eﬂ’ects from different ways of
ﬁnancing health care coverage. Social issues confront questions about the uninsrn'ed,
Mom of choice and quality care. Finally, and most pertinent to this study, business
issues deal with cost, quality unknowns and consumer attitudes. (Conference board, .
1995)

Health care costs actually fell in 1994, but rose again in 1995 and 1996 However,
the rise was slower (single-digit increases), than several years earlier (double-digit
increases). Cost containment strategies seem to be working, but long term strategies are

' still being identiﬁed. As government proposes to cut government health spending,

326

especially for Medicare and Medicaid, businesses are anticipating that hospitals and
doctors (the providers) will demand that employers pay a even greater share of total
health care costs. See charts on: “The Nation’s Health dollar: 1994; Where It Came From
and Where It Went”

During the 90’s, a national health care system proposed by Clinton was quickly
rejected. The generally acknowledged need for universal health care is stymied by
questions about who should pay for it and how much should it cost? Criticism of the
various stakeholders in the industry abound. Hospitals are known to cost shift, e.g.,
giving deep discormts to those with the most leverage, only to pass that diﬁ‘erence along
to another payer. With a well-ingrained third party pay system, the insurance companies
and I-IMO’s are making out pretty well these days. They havefound ways to hold costs
down, but seem to be holding some of that savings in their own reserve, rather than
passing the savings along to the payers. The identiﬁable costcutting measrn'es are too
numeroustolist Mostpeoplearguethatcostcuttinghasreallybecostshiﬁingandthe
removing excesses in the form of administrative overhead, or better utilization of services
is much less frequent than the easy method of cost shitting. So what is the business’
response to this national problem?

A 1996 ﬁont page headline in the Wall Street Journal, states: Firms Cut Health
Costs, Cover Fewer Workers. Though squeezing the excess cost out of the health system
is censidered most desirable, fears abound that some cost containment measures are also
reducing quality of care. This article identiﬁes what businesses are doing. “Not only are
employers shifting more costs to. their workers, they simply are covering fewer workers.

At last count, medium-size and large employers provided health insurance to 82% of their

327

full-time, permanent workers; as recently as 1989, they covered 92%. . . . the folks least

likely to have insurance are the ones whose wages have been falling. High-school

graduates are twice as likely to lack health insurance as people with bachelor’s degrees.:”

(WSJ, 1996) Businesses, in their vigor to reform health care appear to be contributing to

anevengreaterdanger. . . accesstocareandgreaternumbersofuninsmedinoursociety.
FUTURE PREDICTIONS ABOUT INDUSTRY

Reform measures are inﬁnite and certain. Several seem to dominate the literature. '
First, returning the direct provider (the physicians) and consumer (patient) to the center of ,
the cost structure is often recommended. “Individuals need to be more involved in the
costs,thetruecostsofprovidinghealthcareandmanaginghisowncosts,managinghis
own health” (Subcommittee hearing, p. 39) Appropriate care, not excess care, should be
determined by the physician and the patient. A system that supports this notion of
quality, plus incentives for prevention is generally considered a long term strategy toward
greater health care value. Techniques that include measm'es of customer satisfaction and
outcomes are thought to encourage that type of system. ‘

Risks associated with any reform measm'es are also being considered. Cost
reductions have been achieved through emciencies in medical management and
administration, but there are excess costs through excess use and excess capacity. As
processes of delivering care are “reengineered” the risks will be shared. Business leaders
are convinced that just as they are able to reduce unnecessary capacity, improve
eﬁciencies that lead to cost savings, that quality of care can be improved and the

consumerwillbebetteroﬁ‘thantheyaretoday.

328

BUSINESS ALLIANCES
One health care reform strategy

One response to the concern of health care costs, and most pertinent to this study,
is the formation of business alliances. (The New York Times, in 1995, describes this
type of response as scarce.) These are employer-led community-based reform measures
that are market driven, sometimes referred to as a “managed competition mode .”
Businesses are creating strategic alliances and partnerships primarily with the providers
and consumers. They are also, as pm'chasers, seeking consistent measm'es to evaluate
quality and service.

One feature of the alliances is to have joint working committees of employers and
providers who intend to reduce administrative costs and complexity in the health care
system. Another activity by these groups, are quality initiatives that include data
collection and analysis. For example, ﬁ-om employee surveys, the business alliances are
preparing consumer report cards that assign grades to health system features on: health
plan coverage, quality of service delivered compared to costs, satisfaction with physician
and hospital care, and promotion of preventive health services. These activities seem
fairly common to the few business alliances groups that have formed in the United States.

A few principles also guide these business groups, at the present First, those who
deliver care are the ones who should manage it. This means shifting the current power
base from third party cartels, to the physicians. Next, valid comparative information on
cost and quality, about consumer satisfaction and provider outcomes is a prerequisite to
improvement. This data must include strong operational deﬁnitions to evaluate

performance and needs to be shared, not boarded. And ﬁnally, enhanced customer

329

responsibility that is achieved by creating more user-friendly information will promote
better quality decisions. These alliances believe they can improve the current system, in
these ways, through competitive purchasing initiatives.

Future Goals of Business Alliances

The Conference Board is a global business membership organization that enables
senior executives from all industries to explore and exchange ideas that impact business
policy and practice. In 1995, executives at The Conference Boards’ Inter-Council
Symposium examined the role of employers in purchasing value in health care. Business
leaders identiﬁed their overall goal as creating new incentives for fostering improvement
in the performance of the health system, to encourage employees to be more responsible
for their health and their use of health care, and to use information to deﬁne the “product”
it pmchases. Not surprisingly, they identiﬁed health care reform measures from a
business perspective.

Business alliances believe that by creating partnerships and new information,
much like they have had to do in their own businesses, that health care costs can be
contained and become more aﬂordable for more people. In addition, they believe that
health care delivery can be improved. Prevention programs will empower employees to
become more responsible for their health and use of health care. Business alliances are
applying a competitive model, with an allowance for “human” considerations, to the
health care industry, using the knowledge they have about competition within their own
industries. But to carry out their objective within this competitive framework, they will
strive toward a more integrated health care delivery system. In addition, businesses need

to develop the skills and knowledge to support innovations in both purchasing and

330

delivering health care. As purchasers they will put pressure on health plans and providers
to restructure, to eliminate excess capacity, adjust physician mix to better meet the needs
of enrollees, and to reengineer processes of delivering care. When the symposium
concluded, information management was identiﬁed as the ﬁrst and foremost source for

achieving desired performance. (The Conference Board, 1995)

APPENDIX E

APPENDIX E
GLOSSARY OF HEALTH CARE TERMINOLOGY

BUSINESS COALITION/ALLIAN CE - Productive partnerships or strategic alliances
made up of diverse industries to pool their economic interests and create more leverage in
the marketplace. The partners have shared incentives, focus on local market relationships
and allow for a variety of products and ﬁnancing options.

CAPITATION- As one form of managed care, capitation means “payment by the h ”
which means the provider (hospital or physician) receives lump sum payments to care for
a certain number of patients. If many of the patients are healthy and do not show up for.
care, then the provider receives payment for doing nothing. If many of them fall sick,
then the provider may work many long hours for the same pay. Though variations exist,
this is a simple concept. Sometimes the lump sum includes laboratory services, others do
not; some have bonus and incentive systems. There is also risk-adjusted capitation,
which is more complex, where rates are based on the health risk of the population. This
concept has been the principal mode of paying general practitioners for the past 50 years
in the United Kingdom’s National Health Service. In the US. this has become a high-
risk, high-stakes proposition in some health care markets. Ethical issues are surfacing in
prevalent medical journals because this payment system sometimes rewards providers for
less care.

CONSUMERS - The user and/or purchaser of a good or service; in the case of healthcare
the user and the purchaser may be diﬁ‘erent people. Generally, since the 1960’s US.
consumers have been more discerning and because they have more choices, producers
have to woo them.

COST SHIFTING - Charging diﬁ‘erent prices to diﬂ‘erent groups. Dynamic cost shitting
is behavior and occurs when providers raise prices to one group of payers because
another group of payers is now paying less.

DRG (Diagnosis-related group) - Classiﬁcations of diagnoses in which patients
demonstrate similar resoru'ce consumption and length of stay patterns. The systems was
developed in the early 1980’s for the federal government to standardize payment of
Medicare and Medicaid claims. Currently there are over 400 DRG’s and the descriptions
of some plus addition of new DRG’s is on-going. One DRG has a unique number and
name and represents a combination of activities canied out within a hospital or clinic, by
a physician, and includes medical supplies and testing services needed for the procedure.
An example would be the charge associated with a cardiovascular disease.

FEE FOR SERVICE - A method of reimbursing providers based on charges for the

services actually provided to patients, as contrasted with capitation payments, fee
schedules, per diem payments, etc.

331

332

GATEKEEPER - The primary care provider responsible for managing medical
treatment rendered to an enrollee of a health plan. Alternatively, this term has been use to
describe third party monitoring of care to avoid excessive costs by allowing only

appropriate and necessary care to be rendered.

HEALTH MAINTENANCE ORGANIZATION (HMO) - A health care delivery
system that provides comprehensive health services to an enrolled p0pulation frequently
for a pre-paid, ﬁxed (capitated) payment, although other payment arrangements can be
made. ‘

INDIVIDUAL PRACTICE ASSOCIATION (IPA) MODEL HMO - An organization
that contracts with individual health care professionals to provide services in their own
oﬂice for enrollees of the HMO.

MANAGED CARE- An-y form of health plan that initiates selective contacting
between providers, employers and /or insurers to channel employees/patients to a
speciﬁed set of cost-eﬁ‘ective providers (a provider network).

M.E.D.I. (Medical Electronic Data Interchange) - A community health information
network started as a pilot program in 1994. The network includes regional employers and
was created to provide a cost-efﬁcient mechanism to electonically tansfer healthcare
claims, payments and clinical information.

MULTI-OPTION PLAN - A health beneﬁt plan developed by a single carrier that offers
employees the opportunity to choose tan a range of health beneﬁt plans. Employees
have ﬁnancial incentives to use the most cost-eﬁ’ective plans.

NETWORK - A group of providers that mutually contract with carriers or employers to
provide health care services to participants in a speciﬁed managed care plan. the contract
determines the payment method and rates, utilization contols and target utilization rates
by plan participants.

POINT-OF-SERVICE PLAN (POS) - a health beneﬁt plan through which several
diﬂ‘erent types of insurance coverage are available. Rather than choosing one plan for the
duration of a contact period the employee chooses the insurance plan and provider at the
time health care services are sought.

PREFERRED PROVIDER ORGANIZATION (PPO) - Selective contacting
agreement with a speciﬁed network of health care providers at reduced or negotiated
payment rates. In exchange for reduced rates, providers frequently receive expedited
claims payments and/or a reasonably predictable market share.

PRIMARY CARE - basic or general health care offered at the time a patient seeks
treatment.

333

PROVIDER - Any health care facility or professional licensed to provide one or more
health care services to patients.

PURCHASING COOPERATIVE - A membership partnership used to make group
purchases and, by doing so, attempting to lower the costs for the members, i.e., quantity
purchasing. According to a Harris Survey conducted in 1996, there were four distinct
types of group pitchasers: local business groups on health, chambers of commerce,
tade/membership associations and state govemments/large municipalities. The survey
concluded that group purchasers play only a modest role in their local markets and are not
as inﬂuential as they expect they will become. They provide services to their members,
other than reducing healthcare costs; monitoring laws, gathering pricing and quality
information, lobbying state legislatures are the most common.

QUALITY OF CARE - One of the most disputed and least clear cut health care
concepts, with universal standards still in its infancy. Sophisticated measm'es are not
commonly used, nor widely accepted . Quality generally includes the appropriateness and
medical necessity of care provided, the appropriateness of the provider who renders care,
the clinical expertise of the provider and the condition of the physical plant in which
services are provided. Sources of quality information include: patient fwdback, price,
reputation of providers, outcomes, mortality and morbidity rates, complicating
conditions, general health of patients. Few purchasers are designing their own quality
measmes from raw data, although according to the Harris Survey, one in three say they
arelikelytodosointhefuture.

RISK SHARING - The process of establishing ﬁnancial arrangements, utilization
contols and other mechanism to share the ﬁnancial risk of providing care among
providers, payers and users.

SEVERITY ADJUSTED RATES - Information that reﬂects the type of population in
terms of the severity of illness is used to minimize the differences among patients. The
information is adjusted to be able to compare the outcomes between healthcare services.
The intent is for providers to use the severity-adjusted information to analyze and reduce
the variation in care and resource consumption for similar patients with similar

. conditions. Variance factors that aﬂ‘ect the outcomes from health services (including the
charges) include age, general or overall health of the patient, history of past health
conditions, length of stay, complicating factors.

STEERAGE - Initiating actions that are likely to cause business to move toward one
provider and away from another. Reasons for wanting to steer business are numerous.

UTILIZATION REVIEW - An independent determination of whether health care
services are appropriate and medically necessary on a prospective, concurrent, and/or
retospective basis to ensure that appropriate and necessary health care services are
provided.

APPENDIX F

APPENDIX F
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