. . _ _. V, . A J . . , . ....:.ft......,.¢r 35.53:“; . 1 . V . , V. .4. 0.5.. . , . , .. . a . _ , , , .1? gu‘Efaflva . . . . 3.. _ 1 .v $. . ._ V V _ .. W 1 35.4ng y; .::»L Degree of Phi PERSONAL CORRELATES 0? 65mm Macaw STATE :UNIVERSS ZATIONAL MGDE-RNITY; M; REZA VAGHEH 1973‘ .W c... m W, F. nu m. m m m T...‘ a m WK :8 m N..N A M e h t r; m. m fin .. . Jar... 5v. 1.1....p- |\\|\\H\|\““INHWHWM\“IHINWHHI 3 12930 A. e... LIBRARY ' M c1 igan Sts re UI.‘ 1VC‘1' (3.1:), ”6:3 1"." ‘W'W v 3' ’ moms MAB & SEN S BOOK BINDER: EM ABSTRACT PERSONAL CORRELATES OF ORGANIZATIONAL MODERNITY: AN INVESTIGATION OF THE IRANIAN APPLIANCE INDUSTRY BY M. Reza Vaghefi The main purpose of the present study was to examine the relationship between individual and organizational modernity in the Iranian appliance industry. An additional purpose was to generate information regarding the individual firms within this industry and the people who manage them. Individual modernity was defined in terms of the Rokeach Dogmatism Scale: the lower the score, the less dogmatic or closed minded the individual, hence the less traditional or more modern the individual. This follows from a model of traditionalism-modernism according to which closed mindedness defines the traditional end of belief systems and Open mindedness the modern end. Organizational modernity was defined in terms of 17 criteria adopted ad hoc for the present study, but reflecting the work of Max weber on bureaucracy and rationalization, as well as other literature on organization and economic development. The 17 criteria may be classified under the following five headings: (1) Plant Evaluation (technology of the production units, safety standards M. Reza Vaghefi application, maintenance cost system and records); (2) Manpower System (skilled manpower evaluation, employees financing policy, apprenticeship scheme application, systematic on-the-job training); (3) Organization (delegation of authority, committee system, "standard operating procedures", consultative decision-making, computers in decision-making, information flow); (4) Management Sales Policy (credit sales, sales promotion); and (5) Innovational Policy (frequency of model change, research and development). It was hypothesized that there would be positive correlation between the two modernities, or negative correlation between organizational modernity and managerial dogmatism—-i.e., that the more modern managers (lower dogmatism scores) would be in the more modern firms, or that the more modern firms would be staffed by the more modern managers. Three questionnaires were administered to 105 managers drawn from 13 of the 15 appliance manufacturing firms in Iran. The first questionnaire dealt with the managers-- their ethnic, religious, socioeconomic and educational backgrounds, their motives for entering private business, their perception of their role in Iranian society, and their perception of the proper business-government relationship .for their industry. M. Reza Vaghefi The second questionnaire dealt with the firms-— physical facilities, personnel practices, decision-making process, sales policy, and research and deve10pment. The third questionnaire was the Rokeach Dogmatism Scale, translated for Iranian use. The main findings are as follows: (1) Contrary to the hypothesis, there is a low but significant positive correlation between organizational modernity and managerial dogmatism--hence, inverse correlation between the two modernities. The more modern firms showed a slight tendency to be managed by the more traditional men. (2) There is inverse correlation between managers' education and dogmatism: the more educated managers are less dogmatic or more open minded than the less educated managers. (3) Relatively few of the managers had been educated abroad; and the modernizing impact of these managers was small. (4) Engineers are less dogmatic or more open minded than other managers; and among the engineers, those who studied abroad are the most open minded. (5) Class mobility is low within the sample; only three percent of the 105 managers had fathers who were either workers or peasants. (6) Most of the firms are family-owned—and-managed. M. Reza Vaghefi (7) Government-business relations are perceived by the managers in two ways: (a) the role of the government is to protect the firm from foreign competition and labor unrest; and (b) the role of the firm is to politically support the government. (8) There is very little industry organization; e.g., there is no trade press, reliable information is scarce, secrecy with respect to all aspects of operations is the norm . PERSONAL CORRELATES OF ORGANIZATIONAL MODERNITY: AN INVESTIGATION OF THE IRANIAN APPLIANCE INDUSTRY By I fl. . '. f“ ..o-" MC'Reza Vaghefi A THESIS Submitted to Michigan State University in partial fulfillment of the requirement for the degree of DOCTOR OF PHILOSOPHY Department of Management 1973 gy‘ DEDICATION This work is dedicated to my wife for her undiminished support, patience, and understanding of my objectives. ii ACKNOWLEDGEMENTS Since early 1969 when the initial conception of this research emerged, I often doubted it would ever reach the stage which it finally has. That it has is due to the help and encouragement of many people and institutions appropriate to mention on this occasion. Dr. Harold wein has been the Chairman of my disserta- tion committee. Working with him has been a rich and rewarding experience for me. His sparks of thought and generous consultations have provided fine intellectual stimulation and excitement, and thus I would like to express my deep appreciation to him. Dr. Dalton McFarland as my academic advisor and committee member has been a perpetual source of sympathy and insights. Dr. Stanley Stark never hesitated to encourage and help me with this work as well as on other occasions. Dr. Stark's valuable critical comments have rendered further depth in this work. To both of these men I am grateful. My appreciation goes to Professor Milton Rokeach formerly of the Psychology Department of Michigan State University for permitting me to use his Dogmatism Scale. iii I would like to express my sincere thanks to Dr. Thomas A. Graves, Jr., and Dr. Harry S. Knudsen, both formerly of the Stanford Graduate School of Business, for their initial encouragement and support for me to enter the doctoral program at Michigan State University. I am also appreciative of the support and encouragement availed me by Dr. Alfred L. Seeyle, former Dean of the Graduate School of Business at this university. My thanks are also due to Dr. F. Akbari, former Dean of the School of Business, University of Tehran, whose support of my research minimized many problems. I am also grateful to many Iranian managers who generously gave of their time thus making this study possible. My appreciation also goes to the National Iranian Oil Company management who provided partial support for my education throughout the years. My sincere thanks go to Ramon Aldag to whom I am greatly indebted for the time and effort which he provided me during the final stage of my research. My greatest appreciation goes to my wife, Dr. Simin D. Vaghefi, whose undiminished support and patience have endowed me with the courage to pursue this work to this end. To her I have dedicated my work. iv Chapter HHHHHHH H O O O O O O O \lO‘U‘IhUNH H H NNl-‘H H qmwmuunmnw NH H NNNNNNNNN MN II H mmUIU‘IUI-thH wNI" wwwwwwuwu 0000000.. U o \I TABLE OF CONTENTS INTRODUCTION Definition of the Problem of Modernization Modernization Causality Modern Individual Modern Organization Modern Society The Purpose of the Study The Organization of the Study RESEARCH DESIGN AND METHODOLOGY Statement of the Problem The Problems of Research in a Traditional Society Top Management Attitude Other Managers' Attitudes Research Design and Instruments Managers' Profile: Questionnaire I Description of Questionnaire I Managerial Adaptability: Questionnaire II Description of Questionnaire II Functional Description and Interpretation Dogmatism Scale: Questionnaire III Summary FINDINGS: THE MANAGERS Definition of a ”Manager" Managers' Socioeconomic Background Education of Fathers Religious Background Mobility Within the Firm Managing Directors Middle and Lower Management Age of Manager Managers' Reasons for Pursuing a Business Career and Their Conception of Their Role in Iranian Society Manager's Conception of the Role of the Iranian Government and Related to Their Industry 38 38 38 41 43 45 45 48 53 58 U70" 0101 o o IbU NH VII \lflxl O O 0 WNH Role of the Iranian Government for the Economy as a Whole Summary FINDINGS: THE ORGANIZATIONS Historical Background State of the Art Intra-Industry Comparison of Plant Tech- nology, High Talent, and Skilled Manpower as Conceived by the Managers Organizational Design, Employment Prac- tices and Labor Relations Committees and Planning Employment Practices Labor Relations Internal Managerial Policies External Managerial Policies Marketing Policies Information Flow Frequency of Model Change and Innovation Summary FINDINGS: THE MODERNITY OF THE ORGANIZA- TIONS Determination of Organizational Modernity Quantification of Organizational Modernity Criteria weighting the Criteria of Modernity Organizational Modernity Matrix Summary FINDINGS: MANAGERIAL DOGMATISM AND ORGANIZATIONAL MODERNITY Relationship Between Dogmatism Scale and Organizational Modernity Regression Analysis Correlation Between Ordinal Individual Items and the 1? Organizational Modernity Factors Scores Summary SUMMARY AND CONCLUSION Summary Limitations of the Study Suggestions for Future Research REFERENCES vi 62 65 67 67 68 72 77 77 81 83 85 88 90 92 94 95 95 96 98 100 102 103 103 103 108 111 112 112 117 118 120 Table 10 11 12 13 14 LIST OF TABLES, Composition of Positions in the Industry The Socioeconomic Background of the Managers Years of Education of Manager's Fathers Religious Beliefs of Managers Legal Form, Number of Employees, and Date of Establishment of 13 Appliance Firms as of June, 1970 Economic Mobility of Managers Within Firm Age of Managing Directors and Mean of Managers' Age The Most Important Motivating Factors to Enter Private Business Managers' Conception of Their Role in Society Managers' Conception of Iranian Government Role as Related to this Industry Managers' Conception of Iranian Government Role as Related to the Economy Importance of Economic Functions of Government as Perceived by Appliance Industry Managers Maintenance Cost Due to Failure of Impor- tant Machines and Years Such Data were Collected 40 42 44 47 50 52 54 57 59 63 66 71 Intraindustry Comparison of Plant Technology, High Talent, and Skilled Personnel as Perceived by Managers vii 74 Table 15 16 17 18 19' 20 21 22 23 24 25 26 Degree of Use of Organizational Tools and Concepts Managers' Perception of Authority for Employment and WOrkers'Conflict Resolution Managers' Conception of Union Activity Firms' Marketing Policies Product Innovation and Development Organizational Modernity Criteria - Quantified Organizations' Modernity Scores Managers' Dogmatism Scores and Mean Dogmatism Score for Each Firm Mean Dogmatism Scores and Total Organiza- tional Modernity Score for Each Firm Regression Analysis with Organizational Modernity and Managerial Dogmatism Means of Firms Correlation Matrix I Between Individual Ordinal Characteristics and Organizational Modernity Criteria Regression Run with Managerial Dogmatism as Dependent Variable viii 82 84 89 93 101 102 104 105 106 107 110 Appendix LIST OF APPENDICES Questionnaire Number 1 Used In Studying the Profile of Iranian Managerial Staff in the Electrical Appliance Industry Questionnaire Number 2 Used in Studying Organization and Administration in the Iranian Electrical Appliance Industry Dogmatism Scale Products of the Appliance Industry Under Study Persian Translation of Dogmatism Scale ix 123 133 144 148 149 CHAPTER I INTRODUCTION 1.1 Definition of the Problem of Modernization In order to achieve socioeconomic progress in a developing society, it is important that modern technology, which is Western in genesis and has evolved over the past three centuries, be imported and applied. Modern technol- ogy requires not only the instrumentalities of technology and pure science as a body of knowledge and a dominant institution but also a social and psychosocial structure at least compatible with, if not reinforcing of, the drive towards better technology and scientific inquiry. Developing societies, however, usually have an institutional apparatus and value system which are either indifferent, incompatible, or hostile to, modernization. A process of modification, adaptation and reform of many social institutions and values is necessary in order for these societies to benefit appreciably from the introduction of science and technology. People and organizations must also restructure their modes of behavior in productive processes so that the full productivity of modernization can be obtained. The transfer of science and technology from modern to pre-modern societies is really a process of social change within the developing society and not solely the physical importation of equipment and scientific- technical manpower, useful as these are in the modernization process. In order to study and analyze the process of moderni- zation it should be possible to distinguish a "modern man“ from one who is not; a "modern organization" from one which is not; and a "modern society” from one which is not. The model of modern man adopted is that of Inkeles (in Weiner, 1966). The model of modern organization adopted for analysis is that of Max Weber as complemented by contri- butions from current organizational and behavioral science. A traditional society in the sense used by weber is taken as an example of a non—modern society. 1.2 Modernization Causality The necessary preconditions for economic development and modernization have provided a long-lasting subject for two groups of social scientists. One group is composed of development economists, the other of sociologists. The economic orientation tends to see value beliefs as deriv- atives from economic factors. Most sociological analysis, on the other hand, following in the tradition of Max Weber in the famous, "Protestant Ethic” essay, have placed major emphasis on the independent role and effects of values in fostering economic development (Lipset, p. 77). This tradition tends to emphasize the dominant value system of the society within which industrial development takes place. It is argued that unless the value system that prevails is such as to bestow social approval upon the role played by the entrepreneurs, they cannot succeed, and modern industrial development will not occur or at the very best will be hopelessly retarded.1 In this view, a drastic change in the value system of a society is a necessary precondition for industrialization to be achieved. The view receives some support from the prevailing attitude in some advanced countries of Europe and North America. These societies tend to cherish, and reward, economic success. They often make idols of their successful businessmen. Societies in which generals and civic leaders of the first rank retire into top business positions without any loss of prestige will easily draw capable and ambitious men into industry and business. If, on the other hand, the best talent may lose respect- ability by entering business, it is much less likely to, and thus much retardation may occur in the business of the economic system. The reason for the low status of business depends upon the particular history and religious beliefs of each underdeveloped country. In Iran, for example, business is not an attractive alternative to talented men of Iranian origin and Islamic religion. Alcoholic beverages 1Alexander Gerschnkron, Continuity in History (Cam- bridge, Mass.: Harvard University Press, 1968), p. 134. 2Johannes Hirschmeir, The Origin o£_Meiji Entrepreneurs (Cambridge, Mass.: Harvard University Press, I964T, p. 4. and interest are banned in orthodox Islamic practice. As a consequence, the brewery industry in Iran is dominated by Armenian Iranians, who are Christians, and the small scale money market by Jewish money lenders. These two industries dominated by men of non-Islamic orientation are clear examples of the effect of religious doctrines on economic activity. However, though interest paid to the money lender is “usury," interest charged by the bank is legitimate, apparently because it has the status of a government institution. 1.3 Modern Individual Rokeach's model of "open-minded" man was adopted as a definition of a modern individual--on the basis of the rationale provided by Stark,3 which runs as follows: 1. There is some evidence that members of more traditional (”conservative," "fundamentalist,” "orthodox") religious groups are more dogmatic than members of more modern (”liberal,” ”progressive," "reform") religious groups.4 3S. Stark and Y. Kugel, "Toward An Anthropology of Dogmatism: Maladjustment, Modernization and Martin Luther King,” Psychological Reports 27(1970):291-309. 4M. Rokeach, The OpenJ Mind and Closed Mind (New York: Basic Books, 1960); R. H. Bohr,T Dogmatism and Age of Vocational Choice in Two Religious Orders," Journal for the Scientific Study of Religions 7(1968): 282- 283; Susan K. Gilmore,f Personality Differences Between High and Low Dogmatism Groups of Pentecostal Believers," Journal for the Scientific Study of Religions 8(1969):161-164. 2. There is some evidence that people unfavorably oriented to "modernistic" treatment of “traditional" authorities--e.g., irreverent treatment of military leaders—- are more dogmatic than people who are favorably oriented.5 3. There is some evidence that Catholic Church members unfavorably oriented to modernizing ("updating") change in religious liturgy, e.g., English language, lay participa- tion, are more dogmatic than members who are favorably oriented.6 4. There is some evidence that dogmatism and fatalism are positively correlated, and fatalism is often a part of the definition of traditionalism.7 Kahl says that ”almost all observers have stressed this component (fatalism vs. activism) as central to the contrast between the rural and the industrial value-systems."8 5. According to Rokeach, his Scale's primary purpose is to measure "openness or closedness of belief systems," and he adds, ”Because of the way we have defined open and 5M. F. Rosenman, "Dogmatism and the Movie 'Dr. Strange- love',” Psychological Reports 20(1967):942. 6G. J. DiRenzo, "The Role of Personality in Liturgical Change," Worship 41(1967):348-363. 7E. Rogers, Modernization Among‘Peasants: The Impact of Communication (New York? Holt, Rinehart & Winston, 1969), p. 285. 8Joseph A. Kahl, The Measurement of Modernism (Austin: The University of Texas Press, 1968), p. 18. closed. . . the scale should also serve to measure general 9 For Rokeach, authoritarianism and general intolerance." then, a high scorer on his scale may be described not only as generally "dogmatic," but also as generally ”authoritar- ian,“ "closed minded“ or "intolerant." And this is expressed not only by Rokeach. According to a recent review of the dogmatism scale literature: Dogmatism has been a fruitful concept, particularly as a generalized theory of authoritarianism. Research has demonstrated. . .that this authoritarianism is basically independent of ideological content.10 The significance of this identity of "dogmatism“ and I'authoritarianism" is that some students of social change include I"authoritarianism" in their definition of ”traditionalism," or in their instrument for measuring it.“ _ What are the specific implications of negative scores on the Dogmatism Scale? The ”low dogmatic" should exhibit more readiness to accept differences of opinion than the "high dogmatic," and this should prevail where attitudes, 9op. cit., pp. 71-72. 10Ralph B. Vacchiano, Paul S. Strauss and L. Hochman, ”The Open Mind and Closed Mind: A Review of Dogmatism," Psychological Bulletin 71(1969), p. 269. 11See, e.g,, L. W. Doob, "Scales for Assaying Psycho- logical Modernization in Africa," Public Opinion Quarterly 31(1967):419-420; J. A. Kahl, The Measurement of Modernism (Austin: University of Texas, 19681: p. 33; R. C. Williamson, ”Social Class and Orientation to Change,” Social Forces 46(1968):326. beliefs, values, and differences in action and behavior of people are matters of discussion. The "low dogmatic" should be more ready to judge ideas on their own merits and qualifications, rather than on their personal, historical, and hierarchical sources and connections. Likewise, they should be more ready to pass judgment on individuals' own accomplishments, achievements, and per- formance rather than on the ascribed characteristics of the individuals concerned. The "low dogmatic" should be more adaptable to new circumstances and creative ideas and this should equally apply to the creative ideas of those in a different environment, such as in Rogers' definition of innovativeness--"the degree to which an individual is earlier than others in his social system to adopt new ideas."12 For Rogers, "adapting to new technological ideas is certainly the heart of the modernization process."13 In recent years, a new version of "modern man" has gained significance in the literature on modernization-- the version of Inkeles.14 According to Inkeles, an individual is modern when he exhibits: readiness for new experiences and . . . openness to innovation and change . . . (2) he has a disposition 12op. cit., p. 12. l31bid., p. 13. 14Alex Inkeles, "The Modernization of Man," in Modernization, ed. by Myron Weiner (New York: Basic Books, Inc., 1966). to form or hold opinions over a large number of the problems and issues that arise not only in his immediate environment but also outside of it . . . also . . . his orientation to the opinion realms is more democratic . . . (3) he is oriented to the present or the future, rather than to the past . . . accepts fixed hours . . . schedules his time . . . (4) is oriented toward planning and organizing and believes in it as a way of handling life . . . (S) . . . believes that man can learn . . . to dominate his environment in order to advance his own purposes and goals, rather than being dominated entirely by that environment, (6) . . . in calculability . . . the modern man is one who has more confidence that his world is calculable. (7) . . . modern man . . . has more awareness of the dignity of others and more disposition to show respect for them . . . (8) the modern man has more faith in science and technology. . . (9) . . . modern man is a great believer in . . . distributive justice . . . he believig that rewards should be according to contribution. As to relationship between the Rokeach and Inkeles models, there is empirical evidence that they are signif- icantly correlated.16 Therefore, it is assumed in this study that Rokeach's Dogmatism Scale has the power to reveal modernity of thinking, as does the Overall Modernity Scale of Inkeles. 1.4 Modern Organization Organization as such is neither a traditional nor a modern phenomenon; it is as old as man himself. But what distinguishes a "modern" from a ”traditional" organization? 151bid., pp. 141—144. 16M. Kugel, "Communalism, Individualism, and Psycho- logical Modernity: A Comparison of Kibbutz and Moshav Members on the Overall Modernity and Dogmatism Scales,“ (Unpublished doctoral dissertation, Michigan State Univer- sity, East Lansing, Michigan, 1970), p. 41. The essentials of a modern bureaucracy as stated by weber (and it is the weberian model of modern organization that is used as a paradigm) primarily rest on the concept of authority: The purest type of exercise of legal authority . . . is that which employs a bureaucratic administrative staff . . . the whole administrative staff under the supreme authority then consists, in the purest type, of individual officials who are appointed and function according to the following criteria: (1) they are personally free and subject to authority only with respect to their impersonal official obligation, (2) they are organized in a clearly defined hierarchy of offices, (3) each office has a clearly defined sphere of competence in the legal sense, (4) the office is filled by a free contractual relationship; thus in principle, there is free selection, (5) candidates are selected on the basis of technical qualification . . . (6) they are remunerated by fixed salaries . . . the salary scale is primarily graded according to rank in the hierarchy . . . (7) the office is treated as the sole, or at least the primary, occupation of the incumbent, (8) it constitutes a career . . . (9) the official works entirely separately from the ownership of means of administration and without appropriation of his position, (10) he is subject to strict and systematic discipline and control in the conduct of the office.17 Furthermore, "the purely bureaucratic type of administrative organization . . . is . . . capable of attaining the highest degree of efficiency and . . . it is superior to any other form in precision, in stability, and in its reliability. It thus makes possible a particularly high degree of calculability of results for the heads of organization and for those acting in relation to it . . . 17Max Weber, "The Essentials of Bureaucratic Organiza- tion: An Ideal-Type Construction,” in Reader in Egreauc- racy, ed. by Robert K. Merton, et al. (New York: The Free Press, 1952), pp. 21-22. 10 and in the scope of its operations . . . is formally capable of application of all kinds of administrative tasks . . . . The primary source of superiority of bureaucratic administration lies in the role of technical knowledge which, through development of modern technology and business methods in the production of goods . . . has become completely indispensable.18 From such considerations as the foregoing, from know- ledge of business operations in general, and from knowledge of the Iranian appliance industry in particular, the following 17 criteria of organizational modernity were derived and weighted: ORGANIZATIONAL MODERNITY CRITERIA AND WEIGHTS ASSIGNED TO EACH CRITERION Weights I. PLANT EVALUATION 1. Technology of the Production Units 2. Safety Standards Application 3. Maintenance Cost System and Records who) II. MANPOWER SYSTEM 4. Skilled Manpower Evaluation 5. Employees Financing Policy 6. Apprenticeship Scheme Application 7. Systematic on-the-job Training WNNLD III. ORGANIZATION 8. Delegation of Authority 5 9. Usability of Committee System as a Tool of Modern Management 5 181bid., p. 17. 11 Weights 10. Availability and Application of ”Standard Operating Procedures“ 5 ll. Consultation Prior to Decision Making 4 12. Utilizing Computer for Decision Making 3 13. External and Internal Information Flow 4 IV. MANAGEMENT SALES POLICY 14. Degree of Credit Sales 5 15. Degree of Sales Promotion 5 V. INNOVATIONAL POLICY 16. Frequency of Model Change 5 17. Research and DevelOpment 5 The 17 criteria are grouped into five classes. The first attempts to evaluate the newness of the production units in the organization, their safety and regular mainte- nance. The second covers management of human resources. The third is related to the essence of a modern organization and has the greatest weight of all the criteria used for measuring organizational modernity. The fourth and fifth classes include practices found only in modern managerial policy, i.e., the areas relating to sales product innovation and planned research and develOp- ment. lst Criterion: Technology of the Production Units. The firms under study were established in different years. Some older ones renovated their plants and equipment. Some others felt no need to renovate. As some managers indicated, there was no need for them to renovate; they could operate satisfactorily with older equipment. However, the desire 12 for profit maximization as contrasted to satisfactory profit is a distinctly modern attitude, and particularly in Iran where the greater investment in such equipment to yield lower costs goes counter to the general desire to maximize liquidity, and thus avoid heavy fixed costs. The criterion of modernity was assigned a maximum weight of 3. 2nd Criterion: Safety Standards. The recognition of safety provisions in industry is common in modern industrial organization, and uncommon in industry in underdeveloped economics. The economic benefits of reducing industrial accidents requires managerial sophistication, particularly in undeveloped countries where labor is plentiful and safety laws where they exist are poorly enforced. Safety factors here include installation of fire extinguishers, safety hats for employees, safety glasses, machine guards and adherence to other safety standards. It was assigned a maximum weight of 4. 3rd Criterion: Maintenance-Cost System and Records. This factor was assigned a maximum weight of 5. It involves a number of important aspects of modern organiza- tion. It shows management belief in proper utilization of assets; it indicates management determination in detecting problems as early as possible and it involves appreciation of the non-obvious economics of running a business. Furthermore, it involves the training of specialized maintenance employees, itself a modern practice. 13 Since a good maintenance policy implies a preventive policy rather than a remedial one, it involves recognition of the importance of planning in industrial operations. 4th Criterion: Skilled Manpower Evaluation. In a developing society like Iran, skilled manpower is very important and scarce. If the firms make a special attempt to train and keep such skilled manpower, it indicates their desire both to produce high quality goods and to minimize costs. A high weight of 5 was assigned to this criterion. 5th Criterion: Employees Financing Policy. This criterion was assigned a relatively low weight of 2. It pertains to such activities as loans for employees and financing their education, etc. This practice is common in traditional societies deriving from patrimonial organization in which the master would provide many additional benefits to his servants. However the financing of education is a modern attitude. 6th Criterion: Apprenticeship Scheme. This criterion also received relatively little weight (2) because apprenticeship is an old practice of handicraft days. However where apprenticeship was part of a wider employee training program it is considered a modern practice. 7th Criterion: Systematic on-thejjob Trainigg. Although firms could recruit desirable workers through a process of hiring and firing, their willingness to bear the 14 cost of providing new workers with an opportunity to learn on the job, represents a recognition of the hidden costs of such a practice. This criterion differs from the preceding one in that apprenticeship scheme refers to a situation whereby a firm establishes a vocational program for unskilled young men to learn specific specialized skills, for later application on the job. Systematic on- the-job training, on the other hand, refers to a period between 2 to 6 months where the young workers actually engaged in production jobs are provided a chance to learn on the job through instruction provided by the firm, which supplements whatever skills they have. A.maximum weight of 3 was assigned to this criterion. 8th Criterion: Delegation of Authority. This refers to delegation of authority with regard to employment. Employment in traditional societies is typically the province of the master who not only wishes to satisfy himself as to competence but desires also personal loyalty. Hence, a firm in which the top manager (usually the owner in Iranian electrical appliance industry) had installed procedures whereby subordinate managers could exercise the function of hiring or dismissing employees in their supervision represents a break with traditional practice. Therefore a maximum.weight of 5 was assigned to this factor. 9th Criterion: Using Committee System. This criterion refers to use of committees in the management of 15 an enterprise--a very important criterion of modernity, hence given a maximum weight of 5. If a firm used the committee system, such a firm utilized the specialized talents available in decision situations, so it was rated high on this factor. Most of the firms under study are closely held and usually the decision of the top manager is final. But if the top manager had installed a policy whereby the available specialized talent representing the various departments in his organization was used to recommend solutions that organization would be rated accordingly. However a committee system composed of relatives or cronies having no relevant functional responsibility was not considered to satisfy this criterion. 10th Criterion: Standard Operating Procedure. This criterion is a very important aspect of modernity in that it aids proper solution of routine problems without demand- ing the time of higher management. It represents a recognition of analysis of the firm's problems by distin- guishing policy questions, from operating ones, by introducing standardized procedures and thus reducing uncertainty of response and is an essential ingredient of bureaucracy. Therefore it is assigned a maximum of 5 weight. 11th Criterion: Consultation Prior to Decision Making. If managers at different levels of organization were con- sulted by top management then this was considered modern 16 organizational behavior, and therefore the firm was rated accordingly. The factor was weighted only slightly less (4) than the three preceding factors. 12th Criterion: Utilizing Computer. With due con- sideration to the importance of this new management tool, and also with understanding of the nature of the business under study, it was judged that a maximum weight of 3 would appropriately measure the modernity of an organization as far as the use of computer was concerned. 13th Criterion: Information Flow. Free information flow, internal as well as external to the firm is an attribute of modern business organization and is given a high rating (4). Secrecy is a typical characteristic of business practice in underdeveloped countries. The free flow of information to relevant managerial personnel is contrary to this practice. It reveals an understanding that a modern organization requires representation and participation of numerous personnel for proper decision making. Criteria 14, 15, 16, and 17 received the highest weight (5). All are very important for a modern firm. The recognition that sales must be actively develOped by the firm and that credit is an important tool is a distinctively modern attitude. The rule of "caveat emptor" which entails cash transactions is an ancient policy. The promotion of sales through advertising and other means is a trait of modern business as well. Model changes also 17 constitute a recognition of the need to develop and promote sales, rather than the traditional small merchant attitude of passively awaiting customers. Research and development, even on a small scale is also a modern practice reflecting the awareness of the ability of a producer to stimulate and form customer demand, through style and product innovation. 1.5 Modern Society The possible inter-relationships between "individual modernity", "organizational modernity“ and "societal modernity” is exhibited in the following diagram. INDIVIDUAL 4. I: ORGANIZATION \ SOCIETY It is conceived that an individual affects the degree of modernity of an organization, and in turn is affected by the degree of organizational modernity and both affect and are affected by the degree of modernity of the society they function in. The external environment (i.e., the society) of the modern man (in the Rokeach sense) and modern organization (in the Weberian sense) "may be summarized by reference to a series of key terms such as urbanization, education, mass communication, industriali- zation, and politicization. These terms signify that in 18 contrast to his forebears living in the traditional order of his society, the modern man is less likely to be a farmer and is more likely to be employed in large and complex productive enterprises based on intensive use of 19 The modern man will power and advanced technologies.” live in a city or some other form of urban conglomeration. It should be noted that the Iranian appliance industry is located in Tehran, the largest Iranian city; only one of the total of 13 firms is located elsewhere. As the above diagram shows, it is possible (in principle) to achieve modernization by significantly changing any of the components, viz, the individual, the industrial and other organizations within which he works, and the basic institutions and values of the wider society. Marxist type revolutions have operated on a society by radically altering its basic class structure. In Iran the path towards modernization has focused on the modes of production, relying implicitly on the assumption that modern methods of production will gradually change the organization, the individual and ultimately the society. The strategy of the Iranian Government encourages industrialization relying upon the pursuit of wealth as a motive, attempting to create attitudes favorable to private enterprise, and protecting Iranian industry from foreign 19op. cit., Inkeles, p. 139. 19 competition with high tariffs, quotas, and direct and indirect subsidies. Class struggle a concomitant of industrialization is discouraged and the Communist Party is outlawed. Unions are discouraged from acquiring socialist economic or political objectives. The objective is a mixed economy, some sectors such as petroleum being public and others private. It is hoped that free enter- prise in the American sense can flourish with government encouragement in such a mixed economy in which ”five year" industrialization plans are formulated by government but are expected to be implemented by both the public and private sectors. 1.6 The Purpose of the Study The main purpose of the study is to explore the relationship between organizational and individual manage— rial modernity in the Iranian appliance industry. To do this, questionnaires were designed to test the following hypothesis: A negative correlation exists between managerial scores on the Dogmatism Scale and organizational scores on modernization measures. In addition, the questionnaires were designed to reveal facts about the managers, their organizations and their environment insofar as they might bear upon the problem of modernization. To provide such information is a secondary purpose of the study. It should be noted that the influence of societal structure, and beliefs as these 20 influence individual modernity and organizational modernity is not specifically treated. 1.7 The Organization of the Study The study is organized in the following manner: In the first chapter the concept of modernity is introduced, and the relevance of the concept to individuals and organizations as well as to society is spelled out. In the second chapter, the methodology of the research is discussed and some of the problems encountered by the researcher are briefly analyzed. In the third chapter managers are described in socioeconomic and religious terms. Other characteristics such as age, education, and so forth are set forth. Also treated in this chapter are the managers' view of their roles as managers in relation to Iranian society, their conception of the government's proper role towards their firm and to the economy at large. The bearing of these attitudes on modernity is discussed. In the fourth chapter some of the practices of the organizations under study will be thoroughly discussed and the modern aspects of these practices will be analyzed. In the fifth chapter the criteria which define the modernity of an organization will be applied. In the sixth chapter the findings of the research will be brought together and further analysis will provide 21 some statistical interpretation of the findings of the research. In the seventh chapter are the summary and conclusion, as well as discussion of the limitations of the research and suggestions for further research. CHAPTER II RESEARCH DESIGN AND METHODOLOGY 2.1 Statement of the Problem The problem is to learn whether and how the modernity of individual managers is associated with the modernity of their firms. 2.2 The Problems of Research in a Traditional Society Research is an endeavor for uncovering new information about a phenomenon. It is a process of careful and systematic investigation in some fields of human know- ledge. Therefore, in order to provide possibilities for a systematic and careful investigation, the existence of some conditions is desirable and that of others is necessary. To be successful, scientific research requires a climate conducive to free inquiry. The concept has to be valued and conceived as a valuable process for advancement of human knowledge. It requires a sense of dedication on the part of the researcher as well as on the part of the other cooperating individuals who are the subjects of the scientific inquiry. It is also fundamental that scientific research be understood by the subjects, not necessarily in terms of 22 23 its essence but at least of its purpose. A lack of understanding will thwart effective or willing participation on the part of subjects of the research. Even if the above two types of conditions are ful- filled, if a general sense of mistrust prevails in the society, the researcher, in all likelihood, will find his task extremely difficult, if not indeed impossible. There must be some degree of consistency between the goals of the researcher, the organization in which he is conducting research, and the society in which they both work. There should be some consistency in the motives of the researcher and of the organizations which are involved in the research. If this consistency does not exist, it has to be established in order to provide the necessary climate for research. Scientific research does not receive high priority in Iranian society. Newness, if it entails rigorous discipline for its achievement, is not much appreciated. The most common act is imitation, rather than initiation, innovativeness, and novelty. This is especially true in the business community. There it is not only novelty which is unappreciated; openness and publicness are avoided as much as possible. 2.3 Top Management Attitude There are a total of fifteen firms in Iran engaged in manufacturing appliance items. Initial formal approach 24 proved that two firms were uncooperative. They refused to even respond to the request for participation in the research. Fortunately, they constituted a very small proportion of the total industry. There remained thirteen firms which, judging from the initial response from the top managers, would allow further contacts to be made. But resistance had yet to be faced. Although the 13 top managers were willing to be interviewed and even to be asked some sensitive questions about certain of their rights and prerogatives, most resisted the idea of their subordinate managers also being interviewed. Some thought it outrageous. How could one even conceive of putting the same questions that he puts to the most important man in the firm to the manager far below him? This was the most sensitive stage of the research. The researcher feared that nothing could be accomplished. But then it was conceived that such research should have some mutual interest and understanding. This point was emphasized and managers were thoroughly briefed on their educational and social responsibility and on the fact that findings of the research would be put at their disposal with the stipulation of complete anonymity on their part. The whole strategy was designed to minimize the suspicion which the Iranian managers-owners have about anyone who is not thoroughly known by them. This lack of trust and confidence shapes their outlook and external relation. It seems that the only agency which receives 25 reliable data from these firms about their production is the Central Bank of Iran and that is for calculation of the GNP. In every case before the slightest contact was made, arrangements were made so that a personal conversation with the manager of each firm was carried out either by a high ranking member of the Chamber of Industry and Mines, or by an official of the School of business where the present researcher was on the faculty. Additionally, the researcher had established some previous academic contact with some of these firms so subsequent contact was easier to make. 2.4 Other Managers' Attitudes In contrast to the attitudes of top managers in each firm, the attitude of lower managers varied from indiffer- ence to excitement about their involvement in this research. Most of them were cooperative to the degree that if work pressure kept them from using company time for the interview--which took an average of one hour and a half-~they met the researcher at their residences, leisure hours, etc. Therefore, the major block to be surmounted was the top manager. 2.5 Research Design and Instruments As indicated above (p. 19), a secondary goal of the present research was to provide information regarding managers, their organizations and their environment 26 insofar as it might bear upon the problem of moderniza- tion. While there are many sources which emphasize the historical and literary aspects of the Iranian society and culture, such sources are merely homiletics.* There are scarcely any empirical studies done on any aspect of Iranian industry and economic growth. Inspection of the literature failed to reveal any prior empirical research on the present subject matter and particularly with respect to the fundamental hypothesis of this thesis. What is available, in scattered form, is primarily data on the general nature of the economy usually provided by the official government agencies. One can hardly come across an objective report about the actual performance of the economy, or an industry or any specific sector or sub- sector. This situation--i.e., the lack of objective empirical information--provided a real challenge to the researcher. Before a thorough description of the questionnaire is made, it would be useful to record the sources of the data. The sources of data for this research were the managers in the industry. They include the top manager in every firm and managers at all levels down to the functional managers such as sales managers, production *Exception is made of Norman Jacobs' The Sociology prevelopment: Iran as an Asian Case Study (New York: Frederick Praeger, 1967). 27 managers, service managers, etc. In other words, all of the people in management positions were individual subjects of this research. Accordingly, the questionnaires were addressed first to the top manager and then to the second level men in the organizational hierarchy and then to third level managers. In very rare cases, the research went beyond the third level and if it did, it was simply because of the large size of the firm or due to over-centralization of authority and power. 2.51 Manager's Profile: Questionnaire I (Appendix 1) The first questionnaire explored the profile of managers: their educational background, socioeconomic status, and mobility patterns; their motivation to enter or to be in business and their conception of alternatives before them. An area of significant interest was managers' perception of the firm, what they thought of criteria of success and the like. Of equal interest was the managers' conception of the Iranian government's role in society as well as its relation to business. It will be appropriate to provide a brief description of the above questionnaire. 2.511 Description of Questionnaire I Section One - This section asks for personal data, such as age, sex and marital status. 28 Section Two - In this section the educational back- ground of managers was the subject. Questions as to where the manager received his education and in which field were posed. The manager was also asked whether he continued to participate in specialized courses and, if so, the number of such programs he participated in. Further questions as to his capability to communicate in other than his native language were raised, whether he received part or all of his education abroad, and the source of payment for his education. Section Three - This section was concerned with the socioeconomic, ethnic, and religious background of the managers. Section Four - This section obtains information about the founders of the firm and their family relationship to the present owner or managing director. It also obtains information about political and professional affiliations and previous work history of the managing director or owner. Section Five - In this section an attempt was made to probe the motivation of managers in entering private enterprise rather than, say, government service. The strength of motivation was rated by the subjects. Section Six - This section is concerned with the manager's perception of what the firm is, how success- fully it operates, compared to competing firms, definition of "success" and factors he believes influenced it. 29 Section Seven - This section covers the perception of the manager as to his role as a manager. It also asks for his views as to the provision of employment for Iranian workers. Section Eight - This section covers the views of man- agers concerning the role of the Iranian government with respect to his industry, to the economy at large, and to the provision of social services such as medical care and education. Section Nine - This section is concerned with attitudes of the managers toward their workforce, covering rights of hiring and firing, provision of accident, old age, sickness and disability insurance, and who should pay the costs thereof. 2.52 Managerial Adaptability: Questionnaire II (Appendix 2) This questionnaire, which deals primarily with the internal aspects of the firm, has been designed in nine sections in order to avail the researcher of all informa- tion needed for testing the organizational modernity aspect of the hypothesis. This questionnaire provides for ranking responses, and descriptive responses. As a precaution, some of the questions which were more than "yes or no" were provided with an open-end option. This policy later on proved useful since many managers did not agree with what had been provided as a possible response, and therefore had a choice of their own. The following section provides a description of Questionnaire II. I 30 2.521 Description of Questionnaire II Section One - This section requested information about the background of the individual firm, e.g., the date the firm was established, the form of ownership. Also asked was whether, during the period between the date of establishment and the date of this interview, there had been any change in the composition of ownership such as from proprietorship to corporation; and if so, what had caused it. Additional items concerned number of employees and the range of products, again between the firm's inception and the interview date. Section Two - Questions here pertain to some aspects of the structure of the industry. These questions were meant to determine whether the managers of different firms were aware of the state of well-being of their ’competitors. Questions such as maintenance c03t and cost due to down-time of the machines in each firm were raised to see if different firms differed in their attempt to evaluate the cost of maintenance services or breakdowns. Section Three - An attempt was made here to probe the manager's awareness of the quality of competing firms' plants and equipment. Additional information was acquired about the nature and standards of plant and equipment safety. Section Four - This section sought to (a) categorize and enumerate the managerial and technical staff in each firm, (b) learn how many of these managers had received 31 advanced education, and (c) explore managers' awareness of the quality of their counterparts in various firms. Section Five - This section was comprised of questions related to activity of labor unions (if any) in the firms, installation and operationality of fringe benefits pro— grams, and existence of plans to finance educational programs for employees, staff and labor. Additional questions concerned hiring practices for staff and skilled personnel. Together with questions about the nature and locus of authority for employment, managers were asked questions to see if they all had perceived hiring practices similarly. In order to see if modern tools and concepts of management were utilized, questions required the respondents to state whether or not staff services were available to top management and if there were standard operations procedures available so that managers and operating personnel could conduct their daily tasks without too much reference to upper managers for instruction on every aspect of their work. Section Six - This section sought to learn whether (a) managers in different levels considered or practiced such concepts as participative management, (b) consulta- tion before a decision was made and (c) open avenues of communication with subordinates existed. Section Seven - Since technology was considered to be very important in this industry, a question was raised about the existence of expatriates; that is, if skilled 32 personnel from industrially advanced countries were employed in the relevant firm, or if the firm had made any use of indigenous engineering and management consulting services. Section Eight - Marketing was the subject of this section. The marketing and sales function has a very important place in modern business. Therefore it was important to find out if the appliance manufacturing firms in a traditional society had a special place and consideration for these functions. The section includes questions related to comparability of the production and the sales functions, since in an affluent society where products are plentiful, the sales function receives greater attention whereas in an underdeveloped economy greater weight in the organization is given to the production function. Some questions about this perception of the sales and production function therefore seemed justified. Section Nine - This section was designed to provide some clues to the nature of the information flow system. It includes questions about visits to trade fairs, use of consultants from other advanced countries, and, if such technical services were employed, in which field they were used. The questions on information flow were raised in relation to both internal-to-the-firm and external-to- the-firm flows. The former inquired about such mechanisms as the reporting system, including cost, sales, production 33 and employment, as well as utilization of computer from simple to advanced form. The latter covered the flow of information within and outside the framework of the firms and the significance of such information in terms of its functional utility. Section Ten - This section raised questions about product development and innovation; specifically, whether the firms had engaged their resources in innovation and developing new products and, if so, how many high-level personnel were assigned to do the job. Section Eleven - Because research and development is an important arm of the modern manufacturing firm, two questions dealt with this activity. Probably a small firm can do without it, but what happens to the large firm which does not have large R & D expenditure? Although research indicates that large firms spend a lesser proportion of their budgets on R & D than medium size firms, it would nevertheless be significant to observe if the same pattern is followed in the Iranian appliance industry. 2.6 Functional Description and Interpretation In this section an attempt is made to see if there are trends, occupational-wise, in the industry which would render some degree of modernity to the industry at large. All together, there were 25 different positions. The number of incumbents in each position ranged from one to thirteen, the latter being the managing directors in these 34 firms. They are the equivalent of the top executive in a comparable U. S. company. The most significant aspect of the “Position Composi- tion Table" (Table l) is the number of jobs which usually appear in an advanced economy. Such positions are "market research analyst," "in charge of computer," "Research and Development Manager," are important enough to render a firm some score of modernity. It should be noted that some of these functions seem to represent the personal image of the top executive officer rather than the total firm or the industry. For instance, the only firm which had a position for computer supervision was headed by a highly educated man with a universal outlook. The same manager has been expanding his firm during the last decade to the extent that now he is at the top of a highly diversified, and successful conglomerate, of which appliances are just one line of products. Generally, the composition of occupation in the industry is consistent with the degree of organizational modernity of the firms, as shall be seen in Chapter V. 2.7 Dogmatism Scale: Questionnaire III (Appendix 3) The third questionnaire was Rokeach's Dogmatism Scale, Form B. The two previous questionnaires were administered in English; but because some of the statements in the Dogmatism Scale needed specific interpretation, the whole 35 m H H I I H I H H I H H H H Hosanna mOHmm a mmmflflmfim .MH 5 H H H I I I I H I I H H H ucmucsoooé MOHSU .NH m H I H I I I H H H I H H H HouoouHa ucmfimusooum .HH m I H H I I I I I H I I, H H Mommas: m0H>Hom a Houucou wuHHmso .oH m I _ I H I H I I I H I I H H pmmm maHummchcm .m a I H H H I H H H I I H I I ummmcmz HcmHm .m OH H H H H H H I H I I H N H HowomuHo GOHuospoum .h H I I I I I I I I I I I H I mGOHumuomo HOW HOflOOHflQ oflmmd .0 m I I I I I I I I I H I H I .pmmo mo uouomuHo .m m I I I I H I H I I I I H I mmHmm mom .a.: susmma .e a H H I I I I I H H H I H H muHmmma HmoHcaoms pom .o.2 summon .m NH H H H H I H H H H H H H H .o.z pap cmsuHmno .m H I I I I I I I H I I I I I whmom MO GMEHHMfiU .H mcoHuHmom Hmuoa mH NH HH OH m m a m m H m , m H msuHm mo .02 .muumsocH on» cH chHuHmom mo coHuHmomsoo .H oHnma 36 voH m m m m b m m m h m m mH HH HEBOB m I I I I I H I I I H I H I Hmmmcmz 00H>umm HMUHccomB .mm H I I H I I I I I I I I I I HomH>t¢ HMOchowa .vm H I I I I H I I I I I I I I amount: Homnoum .mm H I I I I H I I I I I I I I HOmH>p¢ HmmmH .NN N I I I I I I H I I I H I I Hoodoo: monocouchz .Hm m I H I I H I I H I I I I I Mommas: HMHosmch .om Housmeou mo omuoao sH .mH H I I I I I I I I H I I I I H I I I I I I I I I I I H I Hommcmz mcHumxumz .mH N I I I I I I I I I I H H I Mommas: coHuannumHa .5H m I I I I I I I I I I I H H ummHmam nonmomom umxnmz .mH a I I I I I I H I H I I H H ummmcmz o a m .mH m I I H I I H H I I I H H H HouomuHo cOHpmuuchHEod .vH mcoHuHmom HmuOB MH NH HH 0H m m h m m v m N H mEHHm mo .02 Ho.ucoov H OHQMB 37 scale was translated into Persian, the native language of the managers (See Appendix 5). A colleague was asked to translate the Persian version into English so that if there were inaccuracies in the Persian version they could be corrected at the early stage. The Dogmatism Scale presents the subject with forty statements, each to be responded to as follows: Statement Extent of Agreement 1. In this complicated world of Agree very much ours the only way we can know Agree on the whole what's going on is to rely on Agree a little leaders or experts who can be Disagree a little trusted. Disagree on the whole Disagree very much Each item is scored by allocating points to the extent of agreement or disagreement indicated by the subject as follows: Agree very much 3 points Agree on the whole 2 points Agree a little 1 point Disagree a little -1 point Disagree on the whole -2 points Disagree very much -3 points The total scale score is then determined by summing the points assigned to each response. Summagy In this chapter, the problem of doing the research was discussed and the instruments used in the research process were described. The following chapter will present findings on the managerial profile and socioeconomic background of the managers. CHAPTER III FINDINGS: THE MANAGERS Appendix 1 contains the questionnaire used to obtain information on the Iranian managers employed in the appliance industry. One hundred and five subjects were interviewed, though not all answered each of the questions. The questionnaire has nine sections which were briefly described in the preceding chapter. 3.1 Definition of a "Manager" In this study a manager is one who participates in the daily decision making process in the firm and who contributes to the total management of the enterprise by adding his specialized knowledge. Additionally, he can make such decisions as are required for normal operation of the firm and does so according to the authority granted him by the top manager in the firm. In order to ascertain that no one without managerial authority and responsibility was included in this research, every manager's position and managerial standing was cleared with the top manager in each firm. 3.2 Managers' Socioeconomic Background One hundred managers responded to the question on the occupation of his father. This is tabulated in Table 2. 38 39 Table 2 shows 97% of the managers had parents who were either in business as merchants, or were in some profession or employed by government. Only 3% came from either the working class or were farmers. Thus, it is apparent that if these statistics are representative, business as an occupation in Iran is virtually closed to those of peasant or working class origin. These two strata of the Iranian population are of course the over- whelming bulk of the Iranian population. This fact is all the more noteworthy considering that the first Reza Shah started his "modernization" program almost one-half century ago, and his son the present King has been engaged in far more vigorous attempts to modernize during the past 10 years.1 1Although the present Shah Mohammad Reza Pahlavi assumed leadership of the country in 1941 (upon abdication of his father, the late Reza Shah Pahlavi), his early efforts to introduce socioeconomic reforms were impeded by powerful groups, especially the landlords, the aristocracy and the eclesiasticals. The last twenty years have wit- nessed a more determined effort. The Shah began in 1962 on a vast modernization drive aimed at total transformation of primarily an agrarian society. The landlords were deprived of their long-held privileges due to extensive land reform. The aristocracy were deprived of many seats of power through a referendum which changed the electoral laws. The power of the clergy was sharply reduced as a result of the secularization of many of their functions. The government appropriated their rich endowments and eliminated their quasi legal and educational functions. To this list should be added the most successful movement in improving the general population's literacy, the instrument of which was the literacy corps now scattered throughout the nation and in remotest rural areas. The Shah should be given full credit for this movement; indeed at times he staked his personal life. 40 .coHummoooo ngcmnmm HHonu Hmm>mu on uoc wouuommum mummmcmfi meow onsmomn some m30H> Ipmch Ho Hones: Hmuou was nouns so: mmop Hmuou map Han» pmuoc mn pHsoam pH. «00H m m m m b w h . 5H HH HfiBOB fl‘r-INmr-Ir-IMI—I (\f‘o r-I 000000 I H H N r-Ir-I I-I VIM I I I I moons .mH puoHpamg .HH I H I I ummHum .OH cmHoHuHHom .m Honomma .m Hugues pmHHme . I I I I HmEhmm chmxob m omhonEm ucmfisno>ow I-I I—II-I I Houooo Homchcm Hmonmo moouom poshm uoflmz Ame .ssHpmz Hus HHmEm HHV unannouoz .H I H «IIIH I w IFIIH N cu H IHI rIrq N Hmuomr MH NH OH .mummmsmz on» coHummsooo Hmucmnmm suHucmpH sums mo panoumxomm UHEOGOUMIOHoom one .N oHnMB 41 As would be expected, those whose fathers were mer- chants would constitute the largest single group from whom managers are chosen. However, the next largest group come from fathers who were in government, either in civilian or military capacity. These constituted 31% of the total, almost equal to the merchant class. The significance of this is that the role of government is so overwhelming in Iran, that such a background gives desired "connections" to government influence—-an ”influence" which in Iran is necessary for the success of business operations. As noted by Jacobs, a shrewd Iranian businessman seeks out a coalition with an influential . . . political patron who will be in a position to go to others to move things along in the right direction, or that actor attempts to influence directly the individual official(s) responsible formally for the decision-making process that affects his economic interests, whether those individuals be judges or lowly pol1cemen on the beat. 3.3 Education of Fathers Table 3 shows the education of the father of the manager. Thirty-one percent of the fathers had some education above high school. Though the table classifies all this as ”college," it should be noted that only engineering, medicine, and law would correspond to an American classification. Military and teacher's colleges are not equivalent to a four-year U. S. college background. 2Norman Jacobs, The Sociology of Develppment: Iran as an Asian Case Study_(New York: Praeger Publishers, I967), p. 129. 42 mam _dmm mucopcommom mo Honfisz Hmuoa mll wll omoHHoo m.umnomoa Hm H H 3mH HQ oH 0H HHMUHpsz uouooa HO 5 h mcHHmmsHmcm Hm s a ssocmom sumHHHHz Hm cOHumosom momHHoo m Hm Hm Hoosum anm a Hfioummm HmcoHuHomuav H H wmoHomna m 5H hH QOHuoosom mumeHHm N mH mH muMHOHHHHH H Awe muampcommwm aoHumospm mo msumum .Humwmumo omnucoouomlI mo Honfisz .mnosumm m.uommcs2 mo soHumosom mo mummy .m oHnua 43 High school education was achieved by 32% of the fathers, primary education was achieved by 17%, and 19% were illiterate. Referring back to Table 1, one can see that all the illiterates and those of primary education (which constitutes 36% of the fathers) were either merchants or government employees, since armed forces officers, engineers, doctors, teachers, and judges all have educa- tion beyond primary grades. Thus, though parent occupation in business or profession or government seems to be necessary for a managerial position, it is not necessary that fathers needed literacy or education beyond the primary grades to achieve a position as a merchant or government employee. 3.4 Religious Backggound Table 4 shows the religious background of those managers. As would be expected in a society in which Islam accounts for about 95% of the population, the great majority of managers are of the Moslem faith--all of the Shiate branch. The next largest group is Jewish (17%), which is vastly greater than the proportion of this faith, which is about 1% of the Iranian population. The appliance industry is concentrated in Tehran and so is the Jewish population or Iran; hence it is unlikely that this proportion is representative of Iranian managers throughout the country. 44 .cmHH cH conHHmH m mm UoNHcmoomu uoc mH poom mHmnmm« mOH m m m m b m m m h m m mH HH Hoa scams .1. .nnoHo meoosH umann ou acoso>oe memo: H+v "muoz 50 vH N+ o o o o o m+ o o o H+ 5+ H+ uumHnm Houoa 8H s m r m H. m r H. H. H. m NH HH savanna: H33. o . I I I I I I I I I I I I I uoon o>onu on o I I I I I I I I I I I I I HosoHIuomm: nonumaoo no 36H> no o m m H w m h s b n m 5H m oHooHa IuousH no 66H» m I H I N H I H I I I I H N oHpoHeIuommn us Humans: mo H I I I I I I I H I I I I I HoQQSIuomms usumum oHsocoom .3: o I I I I I I I I I I I I I Hoon NH N I I I I I m I I I H w I HosoHIuomms xuo3 no 3 v r m H S m m H. H. m .1 NH 3 8832 32:33 23 m I H I N H I I I I I I I H oHovHalummms an Mommas! mo H I I I I I I I H I I I I I HommsIuomms nauoum OHEocoom Hmuoa HmN omm omH om mcH on com oooH vMH «hN omm oohH O¢vH noomoHoam mo Honesz NH NH HH 3 a r N S m 4 m N H $3.83 an: .EHHE :Hnqu summons: mo muHHHnoz oHaocoom .m oHnua 51 6, and Firm Three, 1 out of 9 managers. Eight of the 13 firms showed no movement, including Firm Six with 1,000 employees, and the only firm in which a manager reported himself in the upper-upper category. No patterns of mobility seem to be revealed by size of firm. The largest firm has the highest mobility, but Firm Seven with only 300 employees is almost equally high, and Firm Six with 1,000 employees shows no shift, and in Firm One only 1 out of 11 employees showed movement. 3.53 Age of Managers Table 7 compares the age of the managing director and the mean of the other managers' ages in the firm. It also brings together information on the legal form of the firm. As the table shows, the top manager is younger than the average manager in his firm in Firms Six, Eight and Nine. In these firms the average age of the other managers is also lower than the average of the thirteen firms. Inter- estingly, these three firms show no shifts of managers over the period of their employment into a higher income class. Firm Six was in existence 16 years, Firm Eight 6 years, and Firm Nine 10 years--old enough, i.e., for shifts to have occurred. The three firms employed 20 managers. This suggests that significant income mobility appears to be associated with age of managers. This is a traditional attitude compared to income mobility of modern societies which depends more on position and duties. 52 chmHOHwHHooum u sum: was HmHanocuHmm u rm: HcoHumHomHoo rug "ouoz MN MW coo: mw Hm MN mme HHva m mH mv mm mm mmmH Hommv v NH we no Hm vaH Hova m HH HH mv Hm mmmH Homv mH oH am 5m 0 NmmH HmOHV HH m mm mm 0 emmH Homv NH m mw mm 0 mmmH Hoomv m b Hv mm 0 HmmH HQOOHV m o mm mm 0 vomH vaHV 0H m «w mv Hm vmmH HHNNV N v «v Nm m homH Hommv w m Hv em 0 mmmH Hooth H N mm «H U mmmH Hoeva N H omd m.ummmsmz om< m.uouomHHo Show ucofianHnmumm xcmm huHucmoH mo coo: mchmsoz HomoH mo sumo n.8uHm muHm EHHE .mm¢ .mnommcmz mo cow: was muouooHHo mchmcmz mo 0mm .5 mHnme 53 3.6 Managers' ReasonS‘fgg Pursuing a Businessgareer‘and Their Conception of Their Role in Iranian Society Managers were asked to classify their reasons for pursuing business as a career (Table 8). These answers fell into four broad classes as follows: (a) They wished to be self-independent, insofar as this was possible. (b) They wished to gain some sense of self-achievement. (c) They wished to make a "good income," which for some meant as high as possible, and for all meant income which would put them into the upper-middle or higher class. (d) They wished to help Iranian society. All managers were asked to rank-order these reasons, (most important a rating of l and least important a rating of 4). Not all managers answered this question. Of the 106 managers, 101 rated the income motive, 90 the self- achievement motive, 89 the self-independence motive, and only 21 the social motive (help to society). Table 8 shows the responses of the managers and their rating by firms. The ratings are not mutually exclusive. The most interesting result in Table 8 is the fact that the social motive is mentioned as a motive by only 21 of the 101 managers who responded, and of these 18 gave it the lowest importance. It is well-known that underdeveloped societies have little sense of national pride; family, village, ethnic and religious groups are typically more important. However, given the long and great tradition 54 .muouomm OHMHooam ou ocHocommoH mummmcme HmsoH>HUcH mo Hmnfidz ”mm .Houomm HMHsoHuHmm mHnu ou monomuum Hmmmcma HmooH>Hch was» NHHHOHHQ on» mcHumoHocH mcHumm ”4m NH H I H I I I N H I I N N N N N I I N I I I I I I I I I H N I I I I I I I I I I I I I I N HNumHoom on mHmmv I I I I I I I I I I I I I I H m>Huoz HmHoom .N I I I I I I I I I I I I I I V NH I H I I I N N H H H H N H N NN H N N N N I H N H N I N N N HN N H N H N N N N N N N N N H m>Huoz macocH .N I I I I I I I I I I I I I I w as H N N I H N N N N I N HH N N NN I H H I H N N N N H N N N N m>Huoz N H o I N H H I H I H H o o H moampcmmmchINHmN .N I I I I I I I I I I I I I I Q HH I I H I I H H H H I N N H N «N N H N I H N N N N H N N N N m>Huoz NS H N N H N H N N N N N NH N H ucmso>oHnoa .H HHBON mm mm mm mm mm mm mm mm mm mm mm mm mm «m muouomm NH NH HH oH N N N N N v N N H NHHucmpH suHm .mmwchsm mum>HHm Hmucm on muouomm mcHum>Huoz ucmuuomEH umoz one .m oHnme 55 of Persia, together with the fact that both the first and current Shah of the ruling dynasty have been attempting to arouse Iranian patriotism and national pride for almost half a century, the extremely low showing of social motives as a reason for pursuing a career is striking. The interpretation may be that business should be confined to its own objectives. The economic development of a society and the improvement of the well-being of the masses is not part of responsibility of the prevailing business organizations. Business is simply a matter for each person. How one earns his living, and how well, is not a national concern. Business is simply not viewed as being concerned with public goals. Most managers rated the income motive as the most important (51), followed by the self-achievement motive (45). Self-independence was rated as the highest import- ance by only (8) managers. Of these four were non-Moslem (three Jewish and one Bahaie). In a predominantly Moslem society, those of non-Moslem faith can achieve self— independence only through ownership of property and particularly business property and through the professions. High government posts, either civil or military, are effectively closed to them. One further comment is in order. Of the (21) managers who rated the social motive as of some importance, (11) were managers of the two largest firms (employment of 1,700 and 1,500 approximately). The other firms--Six, Three, Seven and Eleven—-are also 56 among the largest, having employment of 1,000, 350, 300, and 160, respectively. The interpretation for this response is that as the firms grow larger, they find it incumbent to play a more active role in the society, the growth of which will have an impact on their own business. Table 9--the managers' conception of their role in society--is very similar to Table 8, and may be viewed as another aspect of the same question. A person's reasons for entering an occupation cannot be too much at variance with his role in society--since what a person does as a vocation is really his social role, or at least an important social role he plays in addition to others which he may believe he performs. Thus, Table 8 shows that 100 managers believed that one of their social roles was to provide an income for their family; of these, 89 believe it the most important role he played in society. This is certainly consistent with traditional family obligation. In contrast, only 12 managers out of 85 managers who men- tioned this item rated "contributing to the industrialization of the country" as of highest importance. Only one manager, a member of the largest firm, rated providing jobs for people as the most important social role, and 12 rated it as of average importance. Only 60 managers mentioned this item as a social role in society. Of the 12 managers who rated "industrialization" of highest priority, only 2 were members of the two largest firms. However, 37 of 69 57 .muouomm UHMHoQO on msHocommmu mummmsms HmsoH>HosH mo Honfisz "mm .Houomm HMHHOHuHmm on» 0» nomuum mnommcma HmsoH>Hch pony NuHHOHHm on» mcHumoHocH mcHumm "Hm NH H v N o N H N N N H N N N N NH 0 o o H o N H H H o o N N N mHNomN pom H o o o o o o o o I o o H I H NnoH mpH>ouN 09 N o o o o o H H o H o o o H N Nuuasou was No NN N N N o N N N N N N N NH N N aoHumNHHNHuuNsch NH H H H H H N H o H H o o N H 0» muanuuaoo 09 N o o o o o H o o o o o o H N N H H H H o H H o H H o o H N NHHENN NH: pom NN N N N H N N N N N H N NH N H msoocH mpH>ouN 09 H4909 mm mm mm mm mm mm mm mm mm mm mm mm mm mm Nuouomm NH NH HH NH N N N N N N N N H NuHucmpH suHN .wuoHoom CH wHom HHmna mo coHumoosou .mummmcmz .m OHQMB 58 managers who rated this as 2 (in a three point rating scale) were members of the four largest firms. It seems reasonable that managers of the largest firms would rate contributing to industrialization of the country as an important social role, since such a role is consistent with their belief that as a firm grows larger it is thereby helping the industrialization of Iran. The managers of the smaller firms are heavily oriented to family obligations as their social role even more than the managers of the larger firms. The responses in Tables 8 and 9, though crude, seem to provide evidence that the dominant view of the managers concerning their vocation as business executives is that it is primarily a private matter; that obligation to pro- vide jobs for others is of very little importance to them. Unlike the Calvinist business view of the 17th and 18th centuries, they do not conceive of their success in business as doing "God's Work"--nor does their success carry with it connotations of obligation to people outside their own personal and family circles. 3.7 Mapager's Conception of the Role of the Iranian Government and Related to Their Industry Table 10 summarizes the responses of the managers to questions eliciting their views as to the prOper role of the Iranian government as related to their industry and firm. The managers were asked to rate on a four point scale (1 most important, 4 least important) four functions 59 .muouomm OHHHommm on mchcommmH mummmcmfi HmsoH>Hch mo umnasz "mm .uouosm HmHsoHpumm chu on monomuum “mousse HNDUH>Hch umnu NuHHoHHm on» mcHHNOHoGH mcHumm "Hm Hm HdBOB w I I I I H I H N H I I I H N mm N m m I H H m N N I I HH m m xno3 mo NN N N N H I N N N H N N N N N :oHumsumHN unm>mum N I H I H H I I I H I H H H H oHsonm ucmacuo>ow .N Nm HdBoe NH H H H I H H N m N I H N H N N I I I I I I H H I I I I I m mEHHm Mom mm>HusoocH N H H I I H I H H H I I H I N Numumaoz our HNHo m I H I H N I I I I I I H I H Icmch mo conH>oum .m mN HdBOB N I H I I H I I I I I I H H N mm I N N H H N N I m I N N N m Nm H N N H H H m N N I I oH H N mocmumHmmm HMOchomu m H I I I N I I m H I I I I H «0 conH>oum .N 00H Adeoe I I I I I I I I I I I I I I V N I I I H H I I I I I I I I m NH H H I H m I I I N I H N N N coHuHummEoo cmHoHom mm m N m H I m m m m N m NH m H Eoum comuomuoum .H muouomm Hfiaoa mm mm mm mm mm mm mm mm mm mm mm mm mm «m NH NH HH 0H m m N m m N m N H NuHucmoH mEHHm .NuumspsH mHnu on omHMHmm mm mHom unoEcHo>oo GMHCMHH mo coHumoocoo .mnmmmcmz .OH mHnt 60 of government which preliminary discussion by the writer with the managers revealed as those most frequently mentioned. As Table 10 shows, protection from foreign competition is overwhelmingly the most important function which the managers conceive for their government. Eighty-five managers rated this as l; the next highest function (prevention of work disruption) received only 7 number 1 ratings. The latter function means two things to the managers: prevention of strikes, and maintenance of political and social stability, the lack of which would lead to work disruption. Protection from foreign competition received 100 responses; work disruption received 91 responses. The latter, as the table shows, was the second most important function. Provision of technical assistance was the third most important function, being mentioned by 79 managers. Provision for financial assistance was the least important, being mentioned by only 32 managers, and receiving a rating of most important by only 5 managers. The lack of interest by managers in financial assist- ance and incentives from government may be viewed as consistent with the classical entrepreneur who rejected government involvement in business. But the "laissez- faire, laissez-passer" attitude is, of course, not subscribed to by the managers since they strenously insist on protection from foreign competition. It is more likely 61 that they reject government financial assistance because this involves putting the government camel's nose under the tent. That is, money from the government means involve- ment of government officials, which means possible new pressures, coercion, expensive payoffs, information which could form the basis of higher income and business taxes, and so forth. At the bottom, such an attitude reflects distrust in the enforcement of laws and the honesty of government officials, an attitude not without foundation in Iran. Table 10 shows the responses by firms. These are of some interest when associated with characteristics of the firm such as size, religious affiliation of the managers and dogmatism scores. We defer discussion of the latter factor to Chapter VI. All firms other than Firm Nine rated protection from foreign competition as a most impor- tant government activity bearing on their firm. Of the seven managers of Firm Nine interviewed, none rated this as most important and only three rated it as ”2” in importance. On the other hand, two of its managers rated technical assistance as "l", and three others gave it ratings of ”2", "3', and "4". Two of its managers also rated financial assistance as most important (only five managers in total so rated this item). Firm Nine is a "Jewish" firm, that is, its managing director and other managers are Jewish. It is, however, one of the smallest firms (105 employees) and has the highest dogmatism score 62 ("close-minded" or “traditional“) of the thirteen firms tested. Its managing director, however, is a very ”open- minded" or low_dogmatic man on the Rokeach scale. Firm Six is an almost polar case from Firm Nine. It is the third largest firm (1,000 employees), ten times the size of Firm Nine. It is a wholly “Moslem" firm, and it has the highest negative dogmatism score (the most open-minded, non-traditional, modern of the thirteen firms). But like Firm Nine, its managers rated technical assistance of highest ("1" rating) and very high (”2" rating) importance. Like Firm Nine, its managers also rated financial assist- ance (rating of "2", "3", and ”4") as important. Of the four items on the government role, only "technical assistance" and "government financial assistance and financial incentives,“ can be construed as reflecting modern attitudes, since the other two items are both very old functions of government. Firm Six's "modern” conception is consistent with the very high negative dogmatism score; Firm Nine's conception is not. However, it is possible in view of the modernity of its top manager, that the other executives of Firm Nine are dominated by his attitude in these matters. 3.8 Rple of the Iranian Government for the Economy as a Whole Table 11 summarizes the functions of the Iranian Government related to the economy of Iran which the managers viewed as important. Their ratings are on a four 63 .mnouomm UHNHommm ou mcHosommou muwmmcme Hm9©H>HpGH mo HmnEsz "mm .uouomm HNHsoHuHmm mHnu o» mosowuum Hommcme HmsoH>HocH use» NuHHOHHQ on» mcHumoHocH mcHumm "Hm NN HNBOB mm I N I I I H a N I N N m I N Hm N H N I H N I H N N m w m m mmmchom cH m I I H H N I I I m I I I H N GOHuMHOmO muH uHEHH N I I I H I I I I I I I I H H UHsosm ucmficum>oo .m NH Adaoa HH H N H I H H m I I I H H I N N H I I H I I I I I I I I I m NuHusomm I I I I I I I I I I I I I I N HmHoom ou coHu I I I I I I I I I I I I I I H IonHHucoo ucoEch>ow .N Na Adsoa m I I I I H I H I I I I m I N an I m H N N H N N I N N m N m ommouocH NN N I N I N N N N N N N N N N umoo pmHNHuNcha scum N N I I I I I I I I I I I I H coHucmumnd unsecum>ow .m MOH HdBOB I I I I I I I I I I I I I I V I I I I I I I I I I I I I I N NHHHHnmuN m N I I H I I I I I H I I H N HNOHuHHom pom mm N m m H N m m m N N m mH OH H UHEocoom mo conH>oum .N mm HNBOB mH H I I I H I I I H I H N N N NH I I H I N I N N I I N N I N NmHuHcsuuommo NN I N I I H N N N I I N N I N ucmsNoHNsm I I I I I I I I I I I I I I H mo sonH>oum .H HdBoe mm mm mm mm mm mm mm mm mm mm mm. mm mm mm Houoom mH NH HH oH, m m N m m N m m H NuHucooH EMHE .NEocoom on» 0» touoHom mm mHom usoEcum>ow coHcmuH mo coHummocou .mnmmmsmz .HH mHnma 64 point scale. The table differs from Table 10 in two respects. It relates to the economy as a whole and not to the appliance industry; and the functions of government are different other than factor two of Table 11 and factor four of Table 10, which are very close. Table 11 summarizes the responses in order of importance of the factors as perceived by the managers. "Provision of economic and political stability" is consistent with "government action to prevent work disrup- tion“ (factor 4 of Table 10). This is an attitude common to both traditional and modern organization because a business firm depends on economic and political stability for future planning. In Iran abstention from cost increases (factor 3, Table 11) means not raising taxes on business and not raising prices of government products (the government owns many industrial enterprises--textiles, petroleum products, cement, steel). Limitation of business operations by government (factor 5, Table 11) means that government should not enter into industrial operations. These views are also common to business enterprise in both modern and non-modern societies which are not com- pletely socialist. Only the provision of employment Opportunities, and government responsibility for social security of workers and peasants, can be viewed as specifically modern views of advanced industrial countries. These two functions, particularly social security, are clearly rated of lesser importance than the second and 65 third factors in Table 11, as summary Table 12 shows. It will be recalled that these managers in rating their own roles, rated providing employment as least important (Table 9). It should be noted that provision of employment by the government was rated as important roughly in order of size of firm. Thus, (Table 11) all 18 managers of Firm Two (1,700 employees), the largest firm, rated the provision of employment; 7 of 11 of Firm One (second largest), 9 of 9 of Firm Six, (third largest), 6 of 9 of Firm Three and 9 of 9 of Firm Twelve (the third largest, each with 350 employees, 8 of 9 of Firm Seven (fifth largest), and so forth. Firm Six and Firm Nine, the two polar opposites, are also similar in this regard. In. Firm Nine, though a small firm (105 employees), 4 of 6 managers rated employment as important, though only 1 manager rated it as high as second-~which, however, is the highest rating this function received. Summary In this chapter, the managers' profile was analyzed. Their views about their personal role in the economy as well as that of the role of the government was discussed and the dependence of the industry on government support was subject of analysis. In the fourth chapter, organizational modernity findings are presented. 66 NH o o NH NuHusomN HMHoow ou coHonHuucoo om mm 0 mm ucmENOHmEm mo GOHmH>onm No m N NN omHHmumucm mmochsm ucoacuo>oo mo coHumuHEHH mN Nm N No mmwwmuocH umoo scum coHucmmn< o N NN NNH NHHHHnmuN HNoHuHHoN N UHEocoom mo conH>oum noncommom noncommmm mmmcommmm mmmsommmm mo coHuocsm N N m .02 N .02 H .02 .oz Hmuoe .muommcsz muumsocH mocmHHmmd an wm>Hmouom mm ucmficuo>ou mo mcoHuocsm oHEocoom mo mocmuHomEH .NH mHnme CHAPTER IV FINDINGS: THE ORGANIZATlONS Appendix 2 contains the questionnaire used to obtain information on the organizational modernity of the 13 firms in the Iranian appliance industry. One hundred and five subjects were involved in this interview, but not all answered each question. 4.1 Historical Background of the Firms The date of establishment of these firms has already been reported in Table 5. The two largest firms, namely Firms 1 and 2, reported a change in the nature of their ownership from prOprietorship to corporation.' The change was due to expansion of their operation as revealed by the top managers. A good proportion of the shares of the two stated firms are owned by managers in the top echelon in the two firms with some ownership by lower level manage- ment. It was thought by the top managers that his had produced beneficial results and since the recipients of the shares had exhibited greater effort after they had been offered the shares. As to the change in the number of products produced at first and at the time of interview: most of the firms reported that at the inception their operations were 67 68 limited to two items, but that they gradually expanded to the extent that now they produce from 3 to 8 items and at times produce each item in different models. The average number of items produced by the industry was 5. 4.2 State of the Art Most of the managers were ambivalent about some of the questions in this section. This was especially true of the part which requested their information or response about their firms' "state of the art comparability“ with that of some foreign firms, namely; American, European, and Japanese firms. Most of the managers did not respond. A couple who responded because of their personal observation or visits to these countries, thought that the present state of the art of their respective firms may not be comparable to the present state of art of the firms in those countries because the visits had been done long ago, and as such their judgment may have little bearing on the issue at hand. The other question in this section provided useful ground for dialogue. Almost 98% of the interviews stated that their important equipment was in the production line.1 1There was, however, one exception where the manager stated that he thought that the most important equipment was in their laboratory which tested the materials before letting them go into the production line. But this manager was the only one in that particular firm who responded in that fashion. This individual ranked relatively low on the dogmatism scale. 69 One could draw some interesting conclusions from this observation in that capital, being a scarce factor in the production process in a society like Iran, receives a great deal of care. To the question related to production-— namely, the rank equivalence of production and sales managers--most of the managers stated that they considered the production manager to be on a higher rank than the sales manager.2 This is in contrast to U. S. firms, where, in many instances, sales managers have a much better chance to move up the hierarchy of their respective firms, because of the greater number of challenges in sales than in pro- duction. This notion may to some extent illustrate the degree of industrialization and competition in the related industries. Related to the same question, managers were asked about the age of the most important equipment.‘ More than 80% of the managers in Firms Two, Four, Five, Seven, Ten, and Twelve stated that most equipment in their production system was old; yet they said it was unnecessary to change because the plant could work without investing extra funds in new equipment. Since there is little price competition due to the oligopolistic nature of the industry, and high tariffs on imports eliminates foreign competition, there 2In those cases where the sales manager was judged to be equal, the particular sales manager was one of the major share holders of the firms. Thus the prestige did not derive from the function pg£_§g, but from the ownership privileges. 70 are few incentives to invest in the latest and more advanced equipment. The most critical question in this section was one related to the firms' maintenance cost., One of the most reliable indices of a firm's mastery of modern production technique is a low percentage of down time due to machine failure. The data for this were provided in Questionnaire II, Item 12, which inquired about the "percentage of downtime of equipment due to repair and maintenance or equipment‘ failure.” It further inquired whether the firms kept any records about the maintenance of the machines (the major machines), and if so, for how long such records were kept in order to derive useful information from such data for adOpting maintenance policy decisions and procedures. As may be seen in Table 13, the managements of these firms are not very conscious of maintenance cost; only four firms kept records on downtime of equipment and of these only one kept such records for as long as five years. Five firms did not even hazard a guess as to the percentage of downtime. Eight firms gave answers, but as noted only four firms had records--so the other four answers are estimates based upon casual observation by the managers. It is generally accepted that private firms are most cost-conscious when the degree of competition is intensive among firms. If through "administered-modernization"-- i.e., a modernization process whereby government assumes an 71 .coflumwsv pmuwamu on» usonm mauwm mmmnu an umwx wuo3 monoomn oz« mmumow ca « s s m m s s s m t s s m chA 30m How .m spams . mpuoomm « « oz mm» mow oz mom « mm» a t « mm» £05m mHm .N Hammom on man mafia Ic3oo magnum: « « s m a m s N a « « g o no w mmmum>¢ .H ma NH HH 0H m m h m m e m N a mpuoowm muflucmnH umoo 5.3m .pmuomHHOO who: mama £05m mummw 0cm moswsomz ucwuuomEH mo musaflmm on man umou mocmsmuswmz .MH manna 72 active directing role--the degree of competition is lessened then firms would not be motivated to be more careful about cost. The data as reflected in Table 13 may suggest that cost consciousness is not keen. Perhaps the government's infant industry policy has induced cost laxity through its virtual elimination of foreign competition in the electrical appliance industry. However, the interpretation of Table 13 as indicating cost laxity may be erroneous. It may be more a matter of lack of sophistication in record keeping, in recognition of the importance of hidden costs and the necessity of preventive maintenance--a practice which requires a break with customary maintenance practice. In any event a firm which keeps maintenance records is con- sidered modern in this aspect of its operations. 4.3 Intra-Indusggy_Comparison of Plant Technology, High ’Talent, and Skilled Manpower as éonceivedbythe Managers This section integrates the managers' responses to Items 16, 24 and 27. The other questions in this section will be dealt with briefly (Table 14). Practically all of the firms maintained their own maintenance personnel. This reveals two things. One is that such technical services were considered vital to the day-to-day operation of the firms. The second is that such services were not easily available in the market. 73 This may explain the self-reliance of the firms in maintenance.3 Safety standards were generally below what would be termed acceptable in a western industrial concern. This is true of plant and equipment. The hidden costs of indus- trial accidents are not well recognized. A manager will appear thrifty by refusing to buy modern safety equipment for installation in the plant and use by manpower, because he is unaware of its long-run benefits. Further the relatively low safety standards can exist only because the voluminous safety rules and regulations adopted by the government are poorly enforced so that the direct cost of non-compliance is not large. Table 14 refers to the managers'opinions of the comparability of different plants in the industry and their own plants with respect to technology, high talent personnel and skilled labor. Almost 70% of the managers thought that the technology of their firm was comparable. Though the date of 3It is interesting to note that there are quite a few contracting firms located in the vicinity of Abadan Oil refinery whose major function is over-hauling the refining units in the refinery, because the oil company does not carry such specialized personnel on its own payroll. Of course, the oil industry in the Iranian economy is a highly advanced industry, relatively old compared to the appliance industry, gigantic in size and financial strength and with a large proportion of foreign technicians for whom mainte- nance is a routine function. Many of the maintenance firms obtained their personnel from the oil companies who were eager to have such an indigenous industry. 74 .HmGGOmHmm Ho mmOHocnomu acmHm mo auHHmsv w.HouHu0mEoo mo mumzmcs mH “smocommmm I o HouHummEoo mm poom mm #02 I U HouHummEoo cmnu Hmuumm I m HouHummEoo mm poom md I s .Mbw OH o H H o N H H N N o o o o a cmummsoo NH H H N N m o o N o m m o o 0 mumxHOB mH o o o o o o H H N o o N OH m pmHHme MMI N N N H a N m N N N 0 NH H a mo NuHHmso HHH Mbw HH 0 H H o N H H N N o o H o a pmummaoo mumum mH H H N o m o o N o N e o o O m>HumuuchHfiom mH o o o o o N H H N o o H m m can HMUchoma .MNI m v m N v N w v m m m mH m < m0 huHHmso HH hbH N o o H o o o N H H o H o o a mmoHoanooa mH H H o m m H H o w H o o o U m0 common HH 0 o H o o H o H o o H H N m unmamHaum on m m m I o m v n N v m NH m m can usMHm H Adaoa mH NH HH 0H m m h m m w m N H MHHmuHHU 0>Humummeou NuHucmcmwsnwm .mummmcmz an pm>Hmoumm mm HmcsOmHom poHHme can ucmHma anm .mmOHocnoma uGMHm mo GOmHummEou anamSpsHImuucH .¢H OHQMB 75 establishment of different firms was dissimilar, and hence their equipment was of different age, they achieved equality through renovation and replacement. Some managers were more insistent than others in their opinions. In Firm One, (which also ranked highest on the "Organiza- tional Modernity" scale) 56% of the managers, including the top man in the firm, considered their equipment and plants superior to that of the competing firms; the remaining managers of this firm considered their equipment as good as any other in the industry. Fifteen percent of all the managers interviewed conceded that their firms' plant and equipment was inferior to plants and equipments of the competing firms. Notable in this reaction are Firms Five, Nine and Ten, in which half or more of the managers believed that their technology was inferior to the rest of the industry. These are three of the four smallest firms. The technical knowledgeability of the managers as they conceived it was also the subject of a question. Again, the same pattern, more or less, prevailed: 73% of the managers in Firm One rated their managerial know-how superior to their counterparts in other firms, while 68% of all the managers responded that the managerial capa— bility of their own firm is comparable to the rest of the industry. About 11% could not pass explicit judgments on this question. The greatest diversity of opinion emerged in rating the comparability of skilled labor, such as foremen, 76 technicians, mechanics, welders. In this case, a more segregated response emerged, with Firm One leading in terms of skilled labor. Ten of the eleven managers in Firm One rated their workers superior, to the workers in the other 12 firms. Actually, Firm One was attracting talented men from other firms within or outside the industry to its organization and paid higher salary and other pecuniary benefits. It also sent some of its managers to visit the advanced industrial countries to observe the industrial units in the appliance industry. This same firm.was a regular participant in management development programs sponsored in the country and is well-known for its leader- ship in the industry. Eighteen percent from other firms-- Three, Four, Six, Nine, Ten and Eleven--rated their skilled laborers inferior to those of other firms. The availability of skilled labor is a crucial issue; all top managers in the firms were worried about the inelasticity of supply of this particular factor of produc- tion. A great deal of pirating prevailed in the industry and it was the subject of constant discussion among the managers of different firms. It was such an urgent problem that the big firms in the industry went so far as to train their future technicians. The biggest firm, Number Two, set up a vocational school for training its future manpower as technicians and foremen. Given the size of the problem and the fact that skilled workers are in short supply, the risk in such a program is that once trained,workers may 77 leave for other employers who pay higher wages. This risk is real since many managers believe that worker loyalty to the master, which used to characterize the traditional relationship of the employer and worker, is diminishing. But in the long run, this may well be an effective solution to the acute problem facing the firms in this and many other industries in Iran. 4.4 Organizational Design, Employment Practices and Labor Relations This section reports data summarized in Tables 15 through 17. 4.41 Committees and Planning One would expect that the larger the firm the greater the use of formal committees. By associating the number of committees with the size of the firms as measured by the number of employees, this hypothesis can easily be tested. The data is shown below: Firm No. of Employees No. of Committees 1700 1440 1000 350 350 300 274 251 160 134 105 90 80 HH H omwmwwqumeN NHmomooowoown H 78 I m N N m H I I I I v w m AdBOB H I I I I H I I I I I I I I msHuuxuu: N I I H I H H I I I I, H H H . umHum H I I I I I I I I I I I I H pacem0H0>oo a noummumm h . I H H H H I I I I I H H H mcHuomchsu a GOHuosooum ucHoHHm coHuosvum OUHHA HwGGOmuum mchsmHm omsmm moon In I H I I H I I I I I H PI PI PI H H H HGOfiMO>GH oosnswm 0-4 In 0-1 H I H I H H I I I I I H H I I I I I I I I I I I I I H m>Husooxm «moouuHano HosOHumuomo uHooa HocoHuouchouo Adaoa HmN omm owH om mcH cm can oOOH va vhN omm ochH ova moohonam mo .oz mH NH HH oH a a h w m v m N H uaHHm mumoosoo can mHooa HucoHumuHsumuo no on: no Gunman .mH mHnma 79 The three largest firms have a total of 13 committees; but Firm Six the third largest has none. The three smallest firms have a total of 8 committees; Firm Nine alone having 5, the second largest number of committees in the industry. The three smallest firms have more committees per employee than the three largest. Five firms of thirteen operate without formal committees. Firm One the second largest is exceptional, having 9 committees. It does not have a finance committee, using its executive committee for this function as well. It is the only firm with an executive committee, and in this regard is also unique since it represents the use of consentual action on the most important matters of the firm.which in all the other firms are left to the chief executive. As the above table shows the use of committees is not significantly associated with size--the size firms of 300 or more employees show two firms using no committees; the seven smaller firms show three firms without committees. As Table 15 shows, 7 firms have production and engineering committees, 6 have sales committees and 5 have both personnel and finance committees. As would be expected in an underdeveloped economy where mastery of production is not yet achieved, committees on production and engineering would be the most common. Finance, personnel and sales as basic functions would also be among the most common. However, the specialization of committee function in Firm One is unusual and includes committees 80 found only in the largest firms in advanced industrial countries; viz: investment, long range planning, pricing and research and development. Firm Nine, one of the smallest, is exceptional not only in the number of committees (5) but has apparently specialized its general sales function into sales and marketing, the only firm of the 13 to do so. Firm Six, the third largest is note- worthy in that it operates without committees. It is also unusual among the larger firms in that two of its nine executives believe that it has an inferior staff and infe- rior skilled workers. Perhaps this accounts for its lack of committees. But in Firm Nine, one of the smallest, a third of its managers believe that it is inferior in plant and equipment, staff, and skilled workers (Table 14); but it has five committees. Firm Six is Moslem and Firm Nine is Jewish; Firm Six as is shown later has a staff which is one of the most open minded; Firm Nine has a staff which is one of the most dogmatic. It may be that the lack of formal committees in Firm Six is not a sign of lack of modernity, in the sense of adhering to traditional prac- tices--but a belief by the manager in the more experimental free flow informal organization, for in some other respects Firm Six shows more modern attitudes such as social func- tions of industry, and of government. Most firms engaged in quarterly or shorter range planning for Operational functions, i.e., production and purchasing. Firm One's planning was over a wider range of 81 functions--investment (i.e., equipment and plant) and as noted it had committees on investment and long range planning including sales and products (note also its R & D committee)). Seven of the thirteen firms had manuals of standard Operating procedures, including the three largest firms. 4.42 Employment Practices The managers perceived quite different things regarding employment practices. The footnote next to the number of responses (in Table 16) indicatesthat the top manager in each firm--who either owns the firm totally or has a majority share in it--agreed that for employment of new personnel the functional managers shared his authority. But there is an apparent discrepancy between what the top manager considered the situation to be and what the other interviewees perceived it to be. The discrepancy can be explained: the situation depended on whom was to be employed. For higher positions, the top manager exercised authority and his decision was final; whereas for lower levels, other managers had a great deal to say and they seemed to exercise their authority. But the interesting comment on Table 16 is related to Firms Six, Eight and Eleven. While the authority for employment, no matter whom was to be employed, rested in the top manager, grievance cases were completely referred to the available mechanisms of labor law. In effect, this 82 .owocommwu 0:3 EHHM comm cH mummmcmfi mo Hogans momma :mms mo .02 H on no om an mwmcommmm Hmuoe m m I m NH N m m I NH m I H 5 HH m m I m OH 5 I m m m v I I m m h h m m h m I H m m m H h N m m m I m ¢ N h H m m NH mH NH OH N m m HH m H Hmm mo oz Hmm mo oz Hmm mo oz Hmm mo oz 38H Honda wmuuHEEoo usmemwcmz mummmcmz Hmmmsmz muHucmcH o» uHOmmm Iuonmq o» uuommm Hmcomuocsm mos EHHm umEchmcomz COHHDHOmmm "CH pmumm> ucmawmwm uoHHmsoo mumxnoz you law How zuHHonus< .coHusHOmmm UOHHmcou mumxnoz pom ucmaonmEm How muHHonus< mo coHummonm .muwmmcmz .mH mHnma 83 constituted an attempt to discourage workers from initiating any grievances, or if they did so, to simply divert them to the labor law labyrinth, where the worker would have a great deal of trouble proving his points. This is the general case and has been so for many years.4 4.43 Labor Relations As may be seen in Table 17, 35% of individual managers agreed that unions should be allowed to perform their professional responsibilities, whereas 65%, or the majority of the managers, believed that institutionalization of this function was unnecessary. The three largest firms are more tolerant of unions than the rest of the industry; Firm One is again noteworthy in that 80% of its management believe unions should be permitted; 50% of Firm Six and 43% of Firm Two also share this view. Of the smaller firms only Firm Nine shows a majority in favor of unions--2/3 of its management. On the managers who disagreed with union activity, the following provided specific reasons: - 19% judged that such activity was totally unneces- sary. Most of the data provided by item 29 of the first questionnaire revealed that although in some firms a certain loose federation existed, it had no say in the determination of issues which are 4The situation seems to have changed in the last two years thanks to the awareness and direction from the Shah of Iran who has paid tribute to the working class. This has softened government bureaucracy toward the workers and the latter get some support in such cases. 84 .coumau one can» once o>mm uumomsma Hunuo AN. can .onsommou .oz- “Hana now common 0>Hm on no: nouumumnm mummccms meow HHV omsmoon uncommon soon How «common mo Eda on» Husoo 90: noon noncommmu :02. no Nocmsooum 0:8 "ouoz m ¢ Hm HN NH mm mN I I N I I m H NH I I o N N o N NH I H m H N N H HH I H I I I N I OH I I H H I N v m N I v I I m I N H H v m m h H h I H N v N v ¢ 0 H I m H H w H m H I H I I N N v I I m N N b N N I I OH N N CH h N I I N H H N N H 02 mm» NHHmconmomoum oumuouHHHH ammumucH poumo> 0>HumsumHo Nummmmowcso coHuossm ou omonHc NuHucovH mHsHMEEH mum None No mHooa mum zone who hose on UHsonm mGOHsD mum Nona mEoowm Nona umau w>mHHmn 30% on o N v N N H “as: .02 NH .huH>Huo¢ GOHcD uo :OHumwusou «.Homocdz .NH «Hana 85 commonplace in modern collective bargaining, e.g., wage determination, fringe benefits, holiday, etc. - 21% considered union activity disruptive to the general work process. - 51% were deeply worried about a situation where union members become tools of vested interests. - 4% maintained their antagonism and based it on two prevalent phenomena, one being the high degree of illiteracy among workers and the second being the immaturity of such social organization and the lack of organizing ability on the part of workers. In addition to specific responses to the question about labor union activity, many managers added that management was doing for the workers what any prospective union would do for them. Then why bother about unionization? Surprisingly, among these managers were some who had received their advanced education in the United States. What they had observed, first hand, was what they inter- preted as union encroachment on managerial authority; now they feared similar challenge in their native country. Therefore, a combination of historical events and managerial attitude reinforced by general cultural paternalistic behavior Operates to thwart development and growth of labor unions. 4.5 Internal Managerial Policies This section was related to top managers' decision making behavior, as perceived by the managerial staff in the firms. It reports data from Item 39 of Questionnaire II. 86 Almost all managers agreed that the top managers in the firms consulted their subordinate before issuing administrative orders. As one manager in Firm Two noted, the “top man has really changed during the last few years." He gave two reasons for the change. One was that the business had really expanded during this period and the other was that the work is too complex to be handled personally. Firm Two has added new lines of products. Major decisions connected with them have to receive support from the managers who will have to carry them out. Item 39 relates also to pecuniary motivating policy of the managers. The most prevalent policy was an annual salary increment. This is conventional in nature; there is nothing new in this. However, the compensation policy did not end there. Firms One, Two and Three had a special policy whereby they would compensate, generously, the innovative men in their firm. Cost-saving ideas were among the things which were rewarded. The compensation was not only in monetary terms: shared ownership was considered an even more progressive policy, the same as is done in many American firms. A top-ranking manager who had been generously rewarded for his cost-saving ideas stated that the most important value attached to this was not the monetary value of the shares, but the prestige. Again, it 87 is noted that Firm One was the leading firm in this case and had set the model for this sort of reward system.5 As a tool of the internal communication system, most of the firms had installed a "suggestion system," i.e., a clearly—visible box of some sort for the men to drop in suggestions or even complaints. The effectiveness of this mechanism is in doubt. The fact is that there was no committee to open up the boxes in any of the firms under study. If they ever were opened, it would be by the management; this meant that serious complaints about the managers from the rank-and-file workers against their superiors could be dismissed or not seriously treated. 5A design engineer in one of the firms had proposed a modification on one of the appliance items. This modification would have saved the company, over a lO-year period, more than $10,000. The change in design could be made simply and without much cost. The engineer had gone further in that he had made rough calculations about sales in the next 10 years and had come out with the saving figures. Yet his proposal was neglected and a request to meet with the managing director had been denied him. As a result, he had made arrangements to meet the competing firm, and had offered his ideas. He had been approached to move to the latter and the man was considering seriously the possibility of moving to the competing firm, namely Firm One. The managing director of this firm showed the interviewer a weekly intra-firm publication, a sort of newsletter, that magnified every improvement-oriented move by the employees. It explained what the innovation was and how it would be rewarded and illustrated the picture of the employees who had accomplished something which went from graduating from a sponsored program to college graduation, and successive promotion which had been attributed to the success in such programs. The researcher did not Observe similar activity in other organization subjects of this research. 88 4.6 External Managerial Policies The question in this section was related to the firms which had expatriates on their payroll (Item 40, Questionnaire II). With the exception of Firm.Two which had a number of Japanese engineers for TV assembly, no other firms in the industry employed foreign technicians. The Japanese engineers were there as a part of the joint- venture agreement between Firm Two and the Japanese company for supplying the know-how. The relationship was on a short-run basis and, as such, the firm had not developed sophisticated employee procedures for the few expatriates. 4.7 Marketing Policies Items 41 and 45 provide the data for this section, which are summarized in Table 18. Note that the managers' response to the question about promotion of particular products is unanimous. More than 62% of the managers consider their firms' sales activity extensive whereas the rest consider it moderate: that is, they simply used the standard promotional media and did not heavily adver- tise on TV. But the interesting aspect of the marketing function is that 76% of the respondents indicated that the credit sales policy followed by their firm was extensive and 24% believed it was moderate an even greater proportion than sales promotion. Credit sales is a relatively new 89 N N N N N N N N N N N NH HH HMHOB I I I I I I I I I I I I I I msoz I NN I I I H N I I I I I I NH I mumumcoz I NN N N N N I N N N N N N I HH m>Hmamuxm I mHmm uHcmHO I N N N N N N N N N m NH HH HNHOB I I I I I I I I I I I I I I msoz I NN N I I I N N N I I N H HH I mumumcoz I NN N I N I I I I m N N N N HH m>Hmcmuxm I coHNOEOHm mmHmm I H HNBOB NH NH HH 0H N N N N N N N N H :OHuocsm NuHucmoH msHumxumz EHHN .mmHOHHom NGHummez .wEuHm .NH mHnma 90 instrument of expanding sales particularly in a traditional Moslem country where interest is contrary to religious practice. Sales promotion is also contrary to some managers' thinking in that some believe that if a product is good, it will sell by itself; for example Firm Seven does not promote its product. The firm sells at lower prices than the competing firms, and thus does not feel it expedient to spend on advertising. Others consider sales promotion expenditure a waste of money. This attitude is not necessarily traditional if based on belief that the effect of advertising in increasing sales is not sufficient to justify its cost. Nevertheless there remains a residual of traditional attitudes toward business such as passivity with respect to promotion. For example, the father of one of the managers never moved from his chamber in the Bazaar even when this location had lost its important commercial value in an expanding city like Tehran. Nevertheless the great majority of managers exclusively promote and grant credit in the sale of their appliance. This may be imitation of U. S. and Japanese practice in the electrical appliance industry, in which advertising and installment sales are common . 4.8 Information Flow This section reports data from Items 46, 47 and 48, Questionnaire II. These questions are related to (a) the 91 degree of flow of information as a way of up-dating managers' knowledgeability, (b) internal communication and (c) indirect information which the managers may receive by visiting trade fairs and exhibitions. As a measure of internal control, most firms installed a regular reporting system whereby production and sales were reported. But this internal reporting system was limited to these two functions. Other aspects such as cost analysis, employment, etc., were not usually published regularly for control or information purposes. The computer, which has received a great deal of attention as a means of control, was not used by all firms. Firm Three, a conglomerate with appliance items composing one line of product in its Operation, went to the extent of employing someone to supervise its computer installa- tion and operation. The top manager in this firm is a highly educated and dynamic man. He had a very low score on the dogmatism scale, which indicates his openness to new ideas and concepts. Of the 13 firms, three (One, Two and Three) indicated that they were using the computer for their payroll and inventory management. The rest depended on standard traditional methods. Simple machines for calculation purposes were used by all but one firm (Ten). Item 48 dealt with the flow of information between the firms vis-a-vis the economic framework. The firms were generally aware of their competitors, i.e., who they were, their prices, products and relative size. They were 92 all members of the Chamber of Commerce, Industry and Mines. Some managers were more active in the Chamber affairs than the others, and these were the men who represented the industry in the Chamber which, in turn, influenced govern- ment policy for import quotas and import regulations. It should be noted that imported appliance items are prohibitively taxed, and thus their importing is almost impossible. With the exception of the very well-to-do, few individuals can afford to purchase imported items of this nature. The Chamber of Commerce, Industry and Mines did not supply any professional information. The information con- tained in its weekly Newsletter was limited to such items as visits of foreign trade delegations, annual import quotas, etc., which were easily available through the daily news media. 4.9 Frequency of Model Change and Innovation Table 19 depicts the firms' policy in terms of changing models or engaging in research and development activities. Of 105 managers interviewed, more than 91 responded positively; i.e., there is a function known as product design in all firms but Four and Ten. Further, some firms change their model annually, some bi-annually and still others irregularly. This alone is a significant finding. But even more significant are the data related to number 93 omsdso Hones usmsvuuusH .0 oonoHoqu 002 .n omcuzu H0608 Hassnc .n I I I I I I N I I I I I N acMHOHsnouaI I H I I I I I I I I N NH I whosmHmmaI H N . I I I I H N I I H N N unomchsuI uu0H8H>Huo¢ a a m :H wwmmmsm mOONOHmEm mo .02 auHm I N I I N I N N I I N NH N aH NuHHmcoHunuomo n a m and NH n a o I n o n o o O m m a madman Hove: mo mucosvoum N N N I N N N N N I cH NH NN coHuoaam cmHmmo uoaooum :H Ummmmsm nmmmonEm mo .oz EHHN sH may may no» oz mm» m0» wow wow mow 02 no» mm» mm» :oHuossm cmeoo uosuoum "muouoam HNN ONN ONH oN NOH om NON OOOH NNH NNN ONN OONH NNNH momNonau no umnasz NH NHIILHH (NH m N NI N N N N, N, H NuHusomH sumh .ucoEQOHm>0n can :oHum>oscH uosvoum .NH OHAmB 94 of employees in research and development activity in the firms and in product design. Here again, but with stronger emphasis, firms (Firm One and Two) which engaged in both these functions with relatively large staffs set the pattern for the other firms to follow. When a manager in a relatively big firm was asked why he did not establish a research and development department, he responded that "my firm can ignore such fancy activity; for improving our products, we simply follow what x firm does; we do this by being the first customer of their product where we buy an item and dismantle that item to see what are the new features that the new item has and we simply adopt it; why should we get engaged in an expensive activity while this easy avenue is open to us?" He was asked if he could be sued for doing this. He said that he was aware of legal problems, but thanks to the bureaucracy of the Department of Justice, it would be an expensive experience for the plaintiff. Summary In this chapter the organizational subject of this research were discussed and factors which determine the organizational modernity--which is the subject of the next chapter--were analyzed. CHAPTER V FINDINGS: THE MODERNITY OF THE ORGANIZATIONS 5.1 Determination of Organizational Modernity As described in a previous chapter the following organizational attributes were used as criteria of modernity of a manufacturing organization: I. II. III. IV. PLANT EVALUATION 1. Production Units (Plant and Equipment) 2. Existence and Application of Safety Standards 3. Systematic Maintenance Procedures (including Cost Records and Analysis) MANPOWER SYSTEM 4. Evaluation of Skilled Manpower 5. Employee Financing Policy (Education, Health and so forth) 6. Apprenticeship Programs 7. Systematic on-the-job Training ORGANIZATION 8. Delegation of Authority for Employment 9. Use of Committee System as a Tool of Modern Management 10. Availability and Application of “Standard Operating Procedures" 11. Staff Consultation Prior to Decision Making 12. Utilizing Computer for Decision Making 13. Systematic External and Internal Information Channels MANAGEMENT SALES POLICY 14. Degree of Credit Sales 15. Degree of Sales Promotion 95 96 V . INNOVATI’ONAL‘ POLICY 16. Frequency of Model Change 17. Research and Development The reasons for adopting these 17 criteria in deter- mining the modernity of the organizations were given in the first chapter. Described below is the method used for scaling these factors in order to arrive at a measurement of the degree of modernity of the thirteen firms considered. 5.2 Quantification of Organizational Modernity Criteria For each of the seventeen attributes listed above a ranking was determined by the author by personal observa- tion and by means of the relevant questionnaires. A scale was adopted which ranged from 0 to 3. A brief description of the rating method is as follows: 1. If a firm was totally unaware of the method by which a certain function was carried out according to modern managerial standards and procedures, the firm was considered backward and received a zero rating as related to that particular function. 2. If a firm was aware of the method by which a certain function was carried out according to modern management standards, but did not care to indulge in it or apply it to its firm, the firm was considered non-modern in that particular respect and was rated l for that particular function. 3. If a firm was aware of certain modern management methods and procedures of carrying out a function and made an attempt to utilize that method, but was not totally successful or had not yet totally relied on that method for any of a host of reasons, then the firm received a rating of 2 for that particular function. 4. If a firm was aware of the modern methods and procedures of carrying out certain functions, was actually applying it in the organization and there 97 was a consensus among the managers interviewed that the method was applied successfully without much referral to top management, then the firm was rated 3. Thus for each attribute a firm could range from zero (backward) to 3 (very modern). For instance, take the case of "standard operating procedures" which has been used as one criterion of modernity in organizations. If the interviewees expressed total ignorance about this index and its availability in their related organizations, then the firm was rated "0" and considered "backward" in that particular aspect of the over-all organizational functions. However, if the interviewees expressed knowledge about that function, that is, they were aware of its existence but they were not utilizing it in their firm, they were given a score of l (non-modern). If, on the other hand, it was found that the related organization had compiled a set of procedures in the form of a manual for a particular area such as purchasing which was designed to replace direct instruction from the managerial personnel, then the firm was considered "modern." Whether it received a rating of 2 or 3 depended upon two considerations: the first was the extent to which it avoided managerial intervention--i.e., its completeness in covering routine or normal problems; the second was the extent--that is the number of areas in which ”S.O.P." was being used as production, sales, billing, and so forth. If a firm had S.O.P. in more than 98 one area and they were complete a score of 3 was assigned; otherwise a score of 2. This method of scoring was applied to 17 managerial functions and the total scores were summed to determine the over-all modernity score of the related organization. It should be noted that this summation of the scores implies that each of the seventeen attributes have equal weights. This overall score is referred to as the "unweighted" modernity score. 5.3 Weighting the Criteria of Modernity_ Since different degrees of importance attached to various functions, within each firm it seems reasonable to suppose that a differentially weighted index of moder- nity should be used rather than the one adopted in which each of the 17 criteria have equal weights. Two possibilities exist: the weights might be determined by the substantive importance of a particular criteria with- in each firm or the weights might be determined by their discriminating power. The former requires knowledge in fine detail for each firm. For example, systematic on the job training might be important for large firms but not for small firms. The fact that the latter do not have this practice is no indication of lack of modernity. In short what is "modern" practice would depend not only on the nature of the practice itself but on other circum- stances such as the need for the particular practice as 99 justified by some cost-benefit analysis for the particular firm. The difficulty of weighting each criteria proportion- ately to or as some function of their discriminatory power is that thirteen firms are a very small sample--and may reflect specific needs of a particular firm. For example the use of computers might only be justified for a large firm--or R & D might be so construed. Thus a particular factor might have high discriminatory power but may simply reflect the particular needs of a particular firm. Some idea of the discriminatory power is shown by Table 20 where the number of 3, 0 and 1 ratings are summed for each factor for the 13 firms. Criteria in which many firms obtain a 0 or 1 score are obviously more discrimi- nating than criteria in which all the firms obtain a rating of 2 or 3. Several ad hoc weightings were tried, and the results correlated with the dogmatism score. As Table 24 shows in one case typical of the others, the weighted index was inferior to the unweighted index insofar as dogmatism of the firm used as an independent variable is concerned. Nevertheless the problem of the construction of carefully developed measurement of organizational modernity is one which future research should concentrate on. The present index used in this research is only the beginning. 100 5.4 The Organizational Modernity'Matrix Table 20 presents the scores that each of the 13 firms received on each of the 17 factors defining organizational modernity. Table 21 presents the total organizational modernity score for each firm. With a theoretical range of zero to 51, the organizational modernity scale yielded an actual range of 25 to 51. A score of 51 represents an average factor score of three, hence warrants the overall characterization as "very modern." Firm One, then, emerges not only as the most modern of the 13 firms but the only one that fully warrants the characterization "very modern." Firm Two, with its total modernity score of 45, is not very far behind. At the other end is Firm Ten, with a total modernity score of 25. This averages out at around 1.5, which warrants a characterization mid-way between "non-modern" and "modern”--perhaps ”slightly" or even ”somewhat" modern. Firm Four is almost identical, with its total modernity score of 26. Organizational Modernity Criteria - Quantified. Table 20. 101 No. of O or 1 No. of 3 sexoos Karugepow Iago; gu5fi36T5X56‘ pus uozeasau go Kouenbaza 15 16 17 uoggomo a 88193 go aezbeq ates ggpaxo go 331590 MOIJ uorgemzogux uofieortddv Jegndmoo . pg; thxrgglgeag 9 bugxpw uogsroéir aaggngtnsuoo dOS 3° “OIQEDTIaaV 10 11 12 13 14 smagsfls ea mmo o as Karloqnnv go uotgebetaa . —egg-uo OIJPNQQSASJ bugugezm qo; amaqos m drqsaogguaxdd bugoueuga "’uoggeonpgeaxoxdgg1 uogqenIEAa xenoduew pattrgg_ apoquaw :soo aoueuagulew N spxepuegs Adages H uoggonpoza go 811!fl,§° 93915 z 9.» SEES m ea 55 8 m H E! m 4 25°“ 0mg 0 FIRMS IDENTITY OOH‘OHIDQNHOIDHID HhthMNoommm F: .4 17 Hln0\00\ OG‘I’NIDHH" WVMNM MNM‘NM‘M MMNOOOHHOOHNH MMMNNNONMOHNH mmmmmmMNNHMNM MNMMMMMMNNMMM MMNNNMMMMNNMM MNMNNNNNNHHNN MMMNNOHNMNNNN MMNHMNNNMHOMH MMMONOONMNNMH MMNONHNHMOMMN MMNNMNNNMNNNM MMNNMNNNMNNMM MMNHMMNNMNNMM MNNNNNNNNNNNN MNOOMHHNMNNHO MNNNNNHNNNHNN MNMNNNNNNNNNN HvammhmeHNm HHHH N05 vv GH 00 0-! GO NN ‘N «11' mv IDV' 0° wca 5'4 H0 ('10 HN No. of O or 1 Ratings No. of 3 Ratings 8 18 2 12 1 1 4 102 Table 21. Organizations' Modernity Scores. Unweighted Firms Modernity Scores 51 45 39 26 39 30 29 34 42 10 25 ll 31 12 41 13 34 \oooqmmprH Summary In this chapter organizational modernity findings were reported. In the sixth chapter managerial dogmatism and organizational modernity will be brought together. CHAPTER VI FINDINGS: MANAGERIAL DOGMATISM AND ORGANIZATIONAL MODERNITY Findings about managers and organizations will be brought together here to provide evidence or lack of it for the main hypothesis of the research. 6.1 Relationship Between Dogmatism Scale and Organiza- tional Modernity The individual subject's scores on the Dogmatism Scale as well as the mean of managerial dogmatism scores of the respective firm, appear in Table 22. Table 23 presents the mean dogmatism and total modernity score for each firm. 6.2 Regression Analysis The first analysis to be made here is the determina- tion of a simple regression between total organization modernity scores and the mean dogmatism scores of the firms under study. In this analysis, the organizational modernity score is the dependent variable and the mean of managerial dogmatism scores of the individual firms is the independent variable. The result of the regression analysis is shown in Table 24. As Table 23 shows, the mean dogmatism score of the firm's managers shows positive correlation with 103 E 104 acomnnhmoonnbmoomso aa nu un nn un nn nn nn aa mm mm o hvu mmn m n ma nn un nn nn man omn Nan ma v men can wmn a n man Na nn nn nn nn nu man vmn c «an m n man ann wan man aa nn un nu nu nu nu nu nn nn nn aa . m u amn m n oa nn nn nu nu nn nu m mm o co ha mm mmn ma m nn nn nu un un nn nu nn m n man m ku ma m n m nn nn nn nn nn awn man awn mm can a m n own can b nu nn nn nn mmn amu onn mmu hmn o~n avn mmu mun wmn o nn nn nu un un nu ma mvn u hvn «m m n wvn aan m nn nu nu nn nu nu nn nn N n omn bmn amu men «Nu v nu nu nn nn oa am mm mm man an amu can man Na m we mmn an mmu mwn w~n amn mmu nun man mmu mm mm m n N nn nn mmn mmn ca mNu a man awn ha 5 va mmn can a ma Na aa oa m m n w m v m N a ouoom .o mmmum>< .wsuam .Euam comm How muoom Emaumamoo coo: paw mmuoom Emaumamoa unwound: .NN manna 105 m vm m n ma v av man ma m an man aa aa mm m n oa m «w oa m m vm m n m m mm can b m om «mu m m mm aan m oa mm mmn v m mm ma m N mm m u m a am can a AomunmaGBCDV muwmmcmz mxcmm mmuoom muacumooz mEHam mo mmuoom muaucmoa sham anneaumuacmmno Emaumamoa com: mmuoom .Euam zoom How muoom abacumpoz amGOaDMNasmmuo amuoe tam wuoom Emaumemoo com: .mm magma 106 maumuauu am>ma mo. pm amcoau unmoamacmam umNacmouo uoz mvm.a vmmv.vma vva. mhm. mammm.o omunmamz maumuauu am>ma mo. um amcoau unmoamacmam nouasmmuo uoz mam.~ ommmm.am hma. «as. mmvm~.o omunmamzca mosmoawacmam msam> umwoumuca H u EmaumEmoa mo mannaum> mo am>ma m moaumamnuou unmaoamwmou usmocmmmo mangam .mEHam mo mammz Emaumfimoa amaummmcmz ocm wuacumpoz amcoaumuacmmuo nua3 mamhamcm scammwummm .vm magma Umaamuuozu .am>ma ao. “m unmoamasmam o omaamunosu .aw>ma mo. um unmoamaamam . omaamuuosu .am>ma oa. um ucmoamacmam + 107 ama. mmo.n +Nba. mac. ma oma. mva. mmo. mmo. ma hmo.u Ommm.n moo. +~na.n ma «mma.n «ma. mma.u mao. wa moo.u 0mm~.n mma. «ma.u ma amo.n «mv~.u 0mmN. +wma.n Na mm~.o who. mma. mao. aa @No.o «No. Ommm. woo. oa amo.o Noa.n mmo. omo. m mmo.o amo. «mmm. «mo. m 4mma.o mmo. omo. who. u Oom~.o ovo. mmo. mmo.u m «mo.u mmo.u mma. mma.n m mma.n cmo~.u ohmm. +mma.u v omo.o «am~.u Ommm. *vma.n m mma.o mmo.n amam. hma.u N «~m~.o omo.o mma. moo.n a Emaumfimoa wuam Euam coaumosom mod maumuauu muacnmpoz amcoaumNasmmHo .maumuano hyacumwoz anneaumNacmmHo new moaumaumuomumnu amcaouo amsoa>aosa cmo3uwm H xauumz coaumamuuou .mm manna 108 organizational modernity score: the more dogmatic the firm's managers, the higher the organizational modernity score. However, the relationship is not statistically significant at the .05 level. As the Table 24 shows, the variance in the modernity explained in the unweighted and weighted cases are 19.7% and 14.4% respectively. 6.3 Correlation Between Ordinal Individual Items and the I7 Organizational Modernity Factors Scores In this section numerous interactions will be examined to see the degree to which organizational modernity is explained by "Individual Dogmatism" scores. The analysis here is necessary to uncover some relationship between important individual attributes and each of the 17 factors which were used in measuring total organizational modernity. Relationships between the individual ordinal character- istics and these 17 factors are presented in the simple Correlation Matrix I. The analysis in Table 2 is a multiple regression analysis with managerial scores on "Dogmatism Scale“ ask the dependent variable and five independent variables . including age, education, place of education, nature of 1 educational background, and religion of the individual/: managers. To facilitate the analysis, it was necessary to dichotomize the scores on certain of the independent variables, and therefore, the following breakdown was used: 109 Place of Educational Background ‘Education Religion Engineer = 1 Iran = l Moslem = l Non-Engineer = 2 Elsewhere = 2 Non-Moslem = 2 The multiple regression analysis shows, first of all, that dogmatism increases with age, although the relation- ship is not very significant. It shows also that dogmatism decreases as years of education increase. It is inter- esting to note that dogmatism scores are much lower for managers who studied abroad in contrast to those who studied in Iran, perhaps indicating that exposure to a wider horizon and other cultures tends to increase managers' open-mindedness. The contrast between educational backgrounds of the managers is of interest. If managers have engineering educational backgrounds, they are significantly less dogmatic than managers with an educational background other than engineering. It seems from the present study, although it is limited to one industry, that men with advanced education have a higher propensity to be open-minded (less dogmatic) than do men with less education. In fact "Education has often been identified as perhaps the most important of the influences moving men away from traditionalism toward 110 ooaaounosu .au>ma mo. an unooauaamau uoz “ coamaamm owaamuuozu .am>wa ao. on unmoauasmam » oaoah anneauMUSpm owaamunosu .au>ma mo. an ucuoauacmam . coaunosum no woman vmaamunosu .ao>oa ac. um uauoauacmam pwaamunozu .ao>ma mo. um occoauacmam uoz coaumonpm mo mummy mmd oom.~m » unmoumuca “mmaamaum> acoocwmooca amsoa>aoca mo mmocmoamacmam Aam>oa ac. um unmoamacmamc mam.m msam> m mmv.v~ oumaaumm mo Houum unaccoum mam. u m soaumcaaumuoa mo unmaoammwoo hem. u .m. coaumamuuoo mamauasz Imx mam.mn «x vom.m+ mx acm.man «x av¢~.~n ax hoa.c n omm.~m n amaumemoo "coaumnom om.w~ mo.mn smaumamoo "uswpcmmwo oam.an aao.m mam.mn mmo.n me. mm.a mu noamaamm amn.a mvm.m aoo.m Nam. om. am.a «x cauam anneaumosvu mmm.~n maa.m aaa.man mw~.n «v. m~.a mx coaumusom we woman .ao.~n baa. avq.~n omm.n om.~ m>.qa «x coaumosvm no mummw mmo. mm”. sea. aaa. mm.m ca.o¢ ax oma unmaoauumou Emauoawon ceammmummm saws msam> a mo HOHHH usuaoammooo scandavuuou scauoa>oo manuauc> mumwsmum scammmnomm mamEam puuwcmum coo: ucmvcmmwosa .manmaum> uswccmmmn mu Emaucauon auauomssw: nuaz sax scammwumom .wn mange 111 modernity in developing countries."1 Furthermore, "it turns out that every additional year of school produces three times as much increment in one's modernization score as does a year in the factory."2 Summary This chapter reported results of interrelating organizational modernity criteria, dogmatism scores and managers' ordinally scaled attributes. The following chapter will conclude the study and will elaborate on some of the issues which could be subjects of further research in this area. 1Alex Inkeles, "Making Men Modern: On the Causes and Consequences of Individual Change in Six Developing Countries,“ American Journal of Sociology, 75(1969), p. 212. 21bid., p. 216. CHAPTER VII SUMMARY AND CONCLUSION This chapter is composed of three parts. The first part summarizes the entire study and brings different viewpoints and conclusions together. The second part discusses some limitations of the study, and the third part suggests areas and subjects suitable for future research. 7.1 Summary The main purpose of the research has been to test the following hypothesis: If managers working in an organization are modern by the accepted standards of psychological modernity literature, then the organization that they manage should be modern according to the accepted standards of organizational modernity literature, or more specifically: A negative correlation exists between managerial scores on the Dogmatism Scale and organizational scores on modernization measures. As its measure of individual modernity, the study used Rokeach's Dogmatism Scale (Form E) and applied it to 105 managers drawn from 13 firms representing over 90% of the Iranian appliance industry. The main finding of the study is negative, i.e., the hypothesis fails to receive support. Other findings are as follows: 112 113 1. There is a positive correlation between dogmatism and age; older managers are less opendminded, but this is very weak and not significant at the .05 level. 2. There is a negative correlation between years of education and dogmatism; the more educated a manager, the less dogmatic he is. This is significant at the .01 level. 3. The non-Moslem managers who comprised about 25% of the managerial personnel appear to be more open-minded than the Moslem managers. But this also is merely suggested by the statistical results which are not significant at the .05 level. 4. There is significant correlation between dogmatism and the place of education. Managers who were educated in the West are less dogmatic than those educated in Iran (.05 level). 5. Engineers are less dogmatic than other professionals in the industry (.01 level). Perhaps the most significant positive finding of this research is the correlation of education with more criteria of organizational modernity than any other factor (See Correlation Matrix I) perhaps due to the impact of being educated abroad. It is surprising that only one of the organization modernity criteria shows a significant nega- tive correlation (as would be called for by the hypothesis). This item is degree of credit sales. Only five other negative correlations were found between dogmatism score 114 and modernity criteria, none of which were significant at the .10 level. The remaining 11 factors show positive correlations, three of which were significant (.05 and .01 levels). The dogmatism scale is thus not very significant- ly related to organizational modernity as measured in this research. Education, as measured by the amount, the place and the field is a much better explanatory variable than dogmatism score for the firms modernity rating. Why should education as measured show significant negative correlation with dogmatism score, but the latter show little or posi- tive correlation with the firm's modernity score? The explanation could be that those who have higher education and who go abroad for study have a veneer of modernity and that they are thrown into an organization, when they return, which is imbedded in a basically traditional society. Modernism in the area of thinking cannot break the basic and solid social habits which are traditionally bound.l A contributory factor in this case is that there is no motivation for the managers to change their style. In fact, why should they change when there is no relationship 1Here is an immensely interesting incident which partly clarifies the contradictions between mental frame- work on one hand and actual attitude on the other hand-- not because it represents a general managerial behavior and belief system, which it does not, but because it is illustrative of discrepancy between "modernity" in thinking and ”traditionality" in acting. During an interview with a deputy manager, whose dogmatic score was -21 (relatively modern), several times subordinates entered the room and after greeting asked questions and directives about what 115 between their operations and the profitability of their respective organizations? In this industry, the profit- ability of operations has very little relationship with their modernity. What contributes to profitability is production techniques and equipment and as Table 20 shows all firms received a rating of 2 or 3 in this aspect. This type of technology transfer is a mere imitation of production techniques in the hope of producing and making profit. On the other hand, if there existed a real functional relationship between profitability and other aspects of modernity, traditional views could be overriden. But to the extent that these two phenomena--i.e., organizational modernity and profitability--have no functional relation- ship because of the oligopolistic nature of the industry whiCh is reinforced by the prevailing regulations concerning the entry into the industry by new firms, it is unlikely that traditional views can be overcome. The top manager's main concern is to run the organization and make seemed routine affairs. The interviewer had noticed that the interviewee had failed to respond to subordinates greeting, which is a sin, and cordially asked the reason. The deputy manager responded, politely, that at times he even completely ignores the workers who greeted him not unintentionally, but intentionally--and this he does for the good and welfare of the firm. Because, he thought, it was through such ignoring of the workers that his status was maintained and discipline enforced. It was important to keep some‘distance from.workers in order to wmanage the factory well. 116 a handsome profit. He is traditional when compared with Western style, but he effectively runs the organization. Generally in western economic organizations, it is necessary to be modern and act modern, otherwise the manager may not be effective in his interpersonal relationships with his subordinates. In the Iranian firm, the manager—-despite his thinking and belief system, which is modern-~feels that he should act in a traditional manner or else his orders will not be carried out and his status will be diminished and undermined. Therefore, one explanation for the positive correla- tion between "Organizational Modernity" scores and "Dogmatism" scores may be that the manager could not act completely "modern" because of the drag of the traditional society surrounding his organization and the fear that behaving in a modern manner may undermine his authority and power and thus render him ineffective in running his organization. Thus only where modernity criteria influenced the profitability of the firm would we expect that these practices would over-ride the traditional habits and views which dominate the society. And these profitable aspects of modernity must also be profitable in the traditional society--i.e., capable of being exercised without negative effects, such as social sanctions which might affect sales or attitudes of the labor force. 117 A final note is in order about one of the most important findings, namely, the relationship between educa- tion and "Dogmatism" scores. It seems appropriate to suggest that quite likely an effective weapon for widespread modernization is massive education-~not just veneer, but intensive education and introduction of western science and technology and adaptable cultural elements.2 It seems that the burden of a breakthrough on traditionalism is on education and that it should come in a massive, dedicated and comprehensive form. 7.2 Limitations of the Study The limitations of a study such as this are numerous. One of the most serious is that the sample may not be representative of the managerial class in Iranian society. Managers in this industry have had more exposure to Western views and technology than may be the general case. It.is unlikely that managers in such fields as textiles, carpet weaving or similar activities are as open-minded. Additionally, a relatively large segment of the managers in the appliance industry were educated abroad-- 2In his massive attack on traditionalism in Turkey, Kemal Atta Turk got rid of the church as a bastion of power and influence and as a factor in perpetuating tradition- alism. He changed the Turkish alphabet to Latin to facilitate the literacy process, and he secularized many functions previously performed by the priests. It seems that finally the Shah of Iran is moving in that direction, the instrument of which seems to be literacy Corps and emerging compulsory education. 118 probably higher than in other industries. In fact, it is possible that managers in older industries may be quite dogmatic relative to the appliance industry managers who, in general, tended towards open-mindedness, except, e.g., for managerial personnel in the oil industry in Iran. These managers have had long and fruitful contacts with their Western counterparts primarily because of the require- ment and nature of technology and the degree of sophistication of this technology applied to the oil industry. Therefore, replication of some of this research may produce a different result in a different environment. The results should not be generalized to Iranian society. 7.3 Suggestions for Future Research A society which is experiencing rapid economic growth and is on the threshhold of industrialization can provide many new topics for research. A more fertile ground would be the environmental conditions, the degree of monopolistic structure of the industry, the regulations concerning the granting of licenses to prospective firms, the factors within the business community which tend to perpetuate the oligopolistic nature of the markets, the emerging conglomer- ations in the Iranian industry and business, the coalition between highly influential groups and some traditional business men, the nature of interlocking directorship and the interrelationship of the political and business sectors 119 in an emerging society. All of these could be investigated in terms of the general problem of modernization. REFE RENCE S REFERENCES Avery, Peter. Modern Iran. London: Ernest Benner, 1965. Baldwin, George B. Planningand Development in Iran. Baltimore, Maryland: JOhn Hopkins University Press, 1967. Banini, Amin. The Modernization of Iran. California: Stanford University Press, 1961. Bohr, R. H. "Dogmatism and Age of Vocational Choice in Two Religious Orders." Journal for the Scientific Study of Religion 7(1968):282-283. Boulding, Kenneth E. Beyond Economics: Essays on SocietyL Religion and Ethic. Ann Arbor, Michigan: University of'Michigan Press, 1968. Davey, Neil G. Influences on External Consultants Effec- tiveness in Assisting Organizational Changy. East Lansing: Michigan State University, Bureau of Business and Economics, Graduate School of Business Administration, 1971. Doob, L. W. "Scales for Assaying Psychological Moderniza- tion in Africa." Public Opinion Quarter1y3l(1967): 414-421. Etzioni, Emitai. Modern Organization. Englewood Cliffs, New Jersey: Prentice-Hall, Inc., 1964. Galbraith, John Kenneth. The New Industrial State. Boston, Mass.: Houghton Mifflin Co., 1967. Gerschenkron, Alexander. Continuity in History. Cambridge, Mass.: Harvard University Press, 1968. Gilmore, Susan K. "Personality Differences Between High and Low Dogmatism Groups of Pentecostal Believers." Journal for the Scientific Study of Religion 8(1969): 161-164. Haas, William S. Iran. New York: Columbia University Press, 1946. 120 121 Hagen, E. "On the Theory of Social Change." In P. Kilby (Ed.), Entrepreneurship and Economic Development. New York: McGraw-Hill, 1971. Harman, Harry H. Modern Factor Analysis. Chicago, Illinois: University of Chicago Press, 1967. Hirschmeier, Johannes. The Origin of Meiji Entrepreneur. Cambridge, Mass.: Harvard University Press, 1964. Hoselitz, Bert F. Sociological Aspects of Economic Growth. Illinois: The Free Press of Glencoe, 1960. Inkeles, Alex. "Modernization of Man." Modernization: The Dynamics of Growth, Edited by M. Weiner. New York: Basic Books, 1966. . "Making Men Modern: On the Causes and Conse- quences of Individual Change in Six Developing Countries." American Journal of Sociology 75(1969): 208-225. Jacobs, Norman. The Sociology of Development: Iran as an Asian Case Study. New York: Frederick Praeger, 1967. Kahl, Joseph A. The Measurement of Modernism. Austin, Texas: The University of Texas Press, 1968. Kheel, Theodore. Technological Change and Human Develop- ment. Ithaca, New York: New York State School of Labor and Industrial Relations, 1970. Kilby, Peter. Entrepreneurship and Economic Development. New York: Free Press, 1971. Kugel, Y. "Communalism, Individualism, and Psychological Modernity: A Comparison of Kibbutz and Moshav Members on the Overall Modernity and Dogmatism Scale." Unpublished doctoral dissertation, Michigan State University, East Lansing, Michigan, 1970. Lerner, Daniel. The Passing of the Traditional Society: Modernization in the Middle East. Glencoe, Illinois: 1964. Lewis, W. A. The Theory of Economic Growth. London: Unwin Ltd., 1955. Lipset, Seymour Martin. Revolution and Counter-Revolution. Garden City, N. Y.: Doubleday and Company, Inc., 1970. 122 McClelland, David C. 'The Achieving Society. Princeton, N. J.: Van Norstad Co., 1961. McClelland, David C. Motivating Economic Achievement. New York: The Free Press, 1969. Millikan, Max F. et_gl., Editors. The EmergingNgtions. Boston, Mass.: Little, Brown and Company, 1961. MillSpaugh, A. C. The American Task in Persia. New York: The Century Co., 1925. . Americans in Persia. Washington, D. C.: The Brookings Institution, 1946. Rogers, Everett. Modernization Among Peasants: The Impact of Communication. New York: Holt, Rinehart and Winston, 1969. Rokeach, Milton. The Open Mind and Closed Mind. New York: Basic Books, 1960. Rosenman, M. F. "Dogmatism and the Movie, 'Dr. Strange- love'." Psychological Reports 20(1967):942. Schuessler, Karl. Analyzing Social Data: A Statistical Orientation. Boston, Mass.: Houghton Mifflin Company, 1971. Stark, Stanley and Y. Kugel. "Toward an Anthropology of Dogmatism." Psychological Reports 27(1970):291-309. Vacchiano, R. B., Strauss, P. S. and Hochman, L. "The Open and Closed Mind: A Review of Dogmatism." Psychological Bulletin 71(1969):261-273. weber, Max. The Theory of Social and Economic Or anization. Cambridge, Mass.: Oxford University Press,il950. Williamson, R. C. "Social Class and Orientation to Change." Social Forces 46(1968):317-328. APPENDICES APPENDIX 1 QUESTIONNAIRE NO. 1 USED IN STUDYING THE PROFILE OF IRANIAN MANAGERIAL STAFF IN THE ELECTRICAL APPLIANCE INDUSTRY. II. APPENDIX 1 QUESTIONNAIRE NO. 1 USED IN STUDYING THE PROFILE OF IRANIAN MANAGERIAL STAFF IN THE ELECTRICAL APPLIANCE INDUSTRY. Personal Data 1) How old is He/She 2) Sex: a) Male b) Female 3) Marital Status: 4) a) Married b) Single c) Divorced If (a) t d) No. of children Status of Close Relatives Alive Deceased a) Father b) Mother c) Brother/s d) Sister/s e) Uncle/s f) Aunt/s Educational Background 5) 6) Years at School: a) Up to college b) College If College: Where did you go to college: a) Europe (specify) b) United States of America c) Iran d) Other 123 124 7) What is your Field of Concentration: a) Business (specify) b) Economics c) Social Science (specify) d) Engineering (specify) e) Law f) Mathematics 9) Other 8) Did you continue for Specialized Courses: a) Yes b) No If Yes: 9) How many Fields and Courses: 10) Do you intend to pursue any program in the near future: a) Yes b) No 11) Which foreign language do you know: a) None b) English c) French d) German e) Other (specify) f) Combination of 12) Have you travelled abroad: a) Yes b) No 13) Which country have you been to: a) EurOpean (specify) b) U. S. A. c) Other/s 14) Have you lived abroad: a) Yes b) No If yes: 15) How many years were you there 16) In what capacity: a) As a student on my own account b) As a student on: (1) Government scholarship (2) This company's scholarship (3) Other firm's scholarship (4) Other institution's scholarship 125 17) How frequently do you travel abroad: III. Socio-economic, ethnic and religious background 18) Occupation of the father: a) Small merchant b) Armed forces officer c) Engineer d) Doctor e) Government employee f) Farmer 9) Skilled laborer h) Teacher 1) Politician j) Priest k) Other 19) Years of education of father: 20) What was your socio-economic status when you began working: a) Upper-upper b) Upper-middle c) Middle d) Upper-lower e) Lower 21) What is your socio-economic status now: a) Upper-upper b) Upper-middle c) Middle d) Upper-lower e) Lower 22) What is your religion: a) Islam: (1) Suni (2) Shiate b) Christian (specify) 0) Jewish d) Zoroastrian e) Other 23) How do you consider your religion orientation: a) Strong b) Moderate c) weak 24) Do you consider yourself belonging to a specific Tribe: a) Yes (specify) b) No 126 IV. Mobility Patterns 25) Who founded the firm: a) Myself b) My father c) My brother d) My relative (specify) e) My boss f) Other (specify) 26) Membership in Professional Organizations: a) Engineers Society b) There is no Society for my profession c) Other (specify) 27) Are you active in Politics: a) Yes b) No 28) Employment history a) Began work in same firm in year (1) Title at beginning (2) Title now [If same as (1), Why: I (3) Years offservice b) Began work in other private firms: (1) Competitor of this firm (2) Supplier of this firm (3) Customer of this firm (4) Years of Service c) Began work in government: (1) Government corporation (2) Other agency (specify) (3) Years of service d) Previously self-employed (years) 29) What do you think are the constituents of success: a) Promotion depends on one's personal professional achievements b) Promotion depends on one's education c) Promotion depends on one's (a) and (b) d) Promotion depends on one's relationship w1 the boss e) Other V. Motivation to enter Business 30) Initial motivation as to this particular firm: a) Notice opportunity to establish firm b) Bought the firm 127 c) Inherited the firm d) Other 31) Motives that seem to motivate you most as a businessman: Rate in order of importance to manager as: l, 2, ... - Achievement motive Self independence motive Income - Help to society - Other 32) Additional motivation to continue in this business: a) Why this firm: (1) Excellent secure income opportunity (2) Knowledge of the art (3) Because of great potential growth of firm (4) Have no other alternative as good as this (5) I like it (6) Other b) Had/was in other business and shifted to this 33) Have you considered other careers: a) Such as: (1) In other business (identity) (2) In government (3) Other b) If yes in (a), why did you not follow these other careers: (1) Not enough attractive Opportunity (2) Not as good as my present job (3) Luck (sheer chance of timing and opportunity) (4) Other 34) If you become sick who can handle your job as well as yourself on a long term basis: a) My deputy b) None of the employees in the firm c) Other 35) Do you consider it useful to own more than one firm: a) Yes b) No 36) Do you own other companies: a) Yes b) No VI. 128 If yes: 37) How many companies do you own: a) Partly owned b) Totally owned 38) What is/are the Co/Co.s engaged in as compared to this firm: . a) Producing complementary products b) Supplying the co.'s product and/or retirement c) They are this co.'s customer d) They are a part of a conglomerate e) Other If No to question No. 36: 39) Can you operate more than one firm: a) Yes b) No Perception of the firm 40) How do you consider your firm's success compared to other firms in this industry: a) Very successful b) Moderately successful c) Not successful d) Other 41) What are the criteria according to which you judge as above (rate in order of importance as: l, 2, 3, ...) - Sale - Expansion - Considerable amount of retained earnings - Other 42) What are the constituents of success: (rate in order of importance as: l, 2, 3,...) - Being able to excel and succeed - Considerable amount of profit - Considerable expansion in firm's operations - Other 43) What do you think are reasons for above (question No. 42): (rate in order of importance as: l, 2, 3' no.) a) Internal factors: - Efficient management - Financial strength - Sound employee relations - Other VII. Manager's Conception of his role in Iranian b) 129 External factors: - Constant increase in consumer demand - Aggressive marketing Effective public relations - Government tariff protection - Other Society 44) What do you conceive of your role in society: (rate in order of importance as: l, 2, 3, 45) 46) To provide income for my family To provide jobs for peOple ...) To contribute to the industrialization of the country Other Who do you think should provide employment for people: a) Government b) Private sector c) A reasonable combination of (a) & (b) d) e) If many people are unemployed who do you Unemployed person himself Other primarily responsible for this: a) b) e) d) e) f) Unemployed themselves Government Private sector Foreign competition Political and social institutions Other VIII. Manager's Conception of the Iranian Government 9 ink is Role 47) As related to this induatry: importance as: l, 2, 3, ...) Government should provide protection from foreign competition Government should provide adequate and efficient technical assistance Government should provide financial and monetary incentives for industry to expand Government should prevent disruption of work Other (rate in order of 48) 49) 130 As related to economy: (rate in order of importance as: 1, 2, 3, ...) - Government should provide employment opportunities - Government should provide political and economic stability - Government should abstain from any act that may increase production cost unjustifiably - Government should contribute more funds to W.S.I.O. - Government should limits its operations and let private enterprise do most of operations and provide employment - Other How do you believe should the government provide funds for building hospitals, schools and other social institutions: a) Primarily through income tax b) Primarily through sales tax, and/or customs tariff c) Primarily through reducing military outlay d) Other (specify) Ix. Manager's Conception of Ownership_and Workplace 50) 51) 52) 53) If a man owns a firm, should he have the right to dismiss any employee: a) Yes b) No If yes: Why do you think he has such right: a) Because he provides the necessary means b) Because his judgement is best c) Other (specify) If No to Question No. 50: Why do you think he does not have such right: a) Because it is inhumane b) Because legal framework limits his action c) Because his judgement may be subjective d) Other Do you think all workers should be provided with insurance such as accident, old age, sickness, physical disability, etc.: a) Yes b) No S4) 55) 56) 57) 58) 59) 60) 61) 131 If Yes: Who should defray the cost: a) Government b) Relevant employer c) Worker himself d) A reasonable combination of (l) a & b (2) a & c (3) b & c (4) a, b 8 c e) If (d) who should pay the most f) Other If No to Question No. 53: Why do you think so: When hiring an employee what do you consider most important: . a) His religion b) His relationship to tOp manager c) Whether he has relatives in the firm d) Ability and professional evidence e) Other Do you believe labor unions should be allowed to function: a) Yes b) No Why do you believe they should not be allowed to function: a) They are unnecessary b) They are disruptive c) They become tools of vested interests d) Other Do you believe there should be provisions in labor law for workers to abstain from supplying their services for justifiable reasons: a) Yes b) No If No: Why do you believe there should be no such provision: Do you believe government should encourage competi- tion in industries where it may have positive welfare effect: a) Yes b) No 132 If No: 62) Why do you think so:' 63) Other possible comments: APPENDIX 2 QUESTIONNAIRE NO. 2 USED IN STUDYING ORGANIZATION AND ADMINISTRATION IN THE IRANIAN ELECTRICAL APPLIANCE INDUSTRY APPENDIX 2 QUESTIONNAIRE NO. 2 USED IN STUDYING ORGANIZATION AND ADMINISTRATION IN THE IRANIAN ELECTRICAL APPLIANCE INDUSTRY Date Name of the firm Name of the interviewee Position (Title) of the interviewee I. Background Information 1) When was the firm established 2) Form of Ownership: at inception a) Single proprietorship b) Partnership c) Corporation I ||||§ 3) If ownership form in (2) different, why: a) Expansion b) Other 4) Number of employees of the firm: a) At the beginning b) Now 5) Number of different products produced/producing: a) At the beginning b) Now II. State of the Art 6) How does manager evaluate his plants and equipment compared to American, European, or Japanese firm in same industry: a) As good as theirs b) Better than theirs c) Not as good as theirs d) Other 133 134 7) How does manager evaluate his raw materials com- pared to American, European, or Japanese firms in same industry: a) As good as theirs b) Better than theirs c) Not as good as theirs d) Other |||l 8) State of equipment: a) Identify most important equipment (1) In the production line (2) In transportation (3) Office (4) Other b) Age of the most important equipment 9) What is the origin of the most important equipment: a) Germany b) Japan c) U. K. d) U. s. A. e) Other 10) Maintenance services of the equipment: a) Has much difficulty b) Has little difficulty c) Has no difficulty d) Other 11) How is maintenance of equipment performed: a) Keeps full-time maintenance crew for all electrical and mechanical maintenance which is done routinely according to a time schedule b) Hires maintenance service for normal preventa- tive maintenance c) Hires maintenance when equipment breaks down d) Keeps stock of critical replacement parts e) Buys parts when needed (i.e., machine breaks down) f) Other 12) Maintenance cost and record: a) What is the percentage of down time of equip- ment due to repair and maintenance (i.e, equipment failure) b) Are records kept of maintenance cost by machine: (1) Yes (2) No c) If Yes, for How many years d) Other 13) 14) 135 Process and Plant design: a) Plant design was based upon product and process flow ' ‘ b) Plant was acquired and product flow and layout adjusted to plant c) Other If most important equipment iS/are relatively old why doesn't manager procure better equipment: a) Because of no need for them b) Because of no serious competition c) Because of unavailability of funds d) Other III. State of the Plant Structure 15) 16) 17) Process, plant & product a) How old is plant structure b) How is it maintained: (1) Keeps normal plant maintenance force which does all routine maintenance (2) Hires maintenance service when needed c) Other How does manager rate Company's plant and equip- ment with company's competitors: a) As good as competitor's b) Better than competitor's c) Not as good as competitor's d) Other Plant safety and equipment safety: a) Safety standard well observed b) Safety standard moderately observed c) Safety standard not observed d) Other IV. Administrative & Technical Staff and Skilled Workers 18) 19) 20) 21) Distribution of employees in terms of occupational engagement: a) Number of technical staff (Eng. & Accts.) b) Number of management staff Number of technical and managerial staff with college degrees: a) Technical staff b) Managerial How many years of experience are required of each technical and managerial staff: Number of foremen in the firm: III I .ll .1 Ill‘l II...- II. Iliu‘llulllll'u'n'uu V. 22) 23) 24) 25) 26) 27) 136 How many years of experience required of foremen: "" What is the average length of employment of skilled workers with the firm: In general, how does manager.rate company's technical and administrative staff compared to company's competitors: a) As good as competitor's b) Better than competitor's c) Not as good as competitor's d) Other If (a) and (b) in Question 24, why: a) More training, more experience, more education b) More training, more experience, more education c) Other If (c) in Question No. 24, what is he doing to remedy the situation: a) On the job training b) Evening course c) Other How does manager rate company's skilled workers: a) As good as competitor's b) Better than competitor's c) Not as good as competitor's d) Other Employment Practices 28) Labor practices: a) Is there a union in the firm: (1) Yes (2) No If Yes: b) Is union active: (1) Yes (2) No If No: c) If there is no union, why: 29) 30) 31) 32) 137 General fringe benefits: a) Does he finance employees' education: Yes (1) Staff members (2) Workers (3) Staff and workers b) Discourages workers' continued education: c) Does he have an operative hospitalization scheme: (1) Yes (2) No If No: d) WhY: (1) Workers social insurance takes care of them (2) Employees are self-supporting (3) Other e) Is there an operative loan scheme: (1) Yes (2) No f) Do employees Have a tea-break: (1) Yes (2) No Staff hiring practice: a) Authority for employment vested in: (1) Top manager (2) Functional department (3) Other b) When employing new personneI: (1) Relationship with top manager most important (2) Education and skills of the new employee most important (3) Other Workers grievance solution: a) Labor-management committee resolves conflict b) Labor law resolves conflict c) Other Worker's training program: a) Is there an apprenticeship scheme: (1) Yes (2) No b) Is there a systematic training program for workers: (1) Yes (2) No c) Does management send workers to foreign coun- tries for training purposes: (1) Yes (2) No 33) 34) 35) 138 Organizational design: a) Are there people with organizational titles: (1) Yes (2) No b) Are duties really defined: (1) Yes (2) No _ c) Are there staff assistance to the boss: (1) Yes (2) No d) Are there operational committees: (1) Yes (2) No If Yes: e) What committees are there: (1) Personnel (2) Finance (3) Production (4) Sale (5) Other f) Does committee meet: (1) Regularly (2) As occasions demand Availability of staff assistance: a) Does manager depend on staff assistance: (1) Extensive (2) Moderate (3) Not at all g b) Staff availability to people with organizational title: (1) Extensive (2) Moderate (3) Not at all c) Number of staff aSSistants: d) Staff assistants services used in depart- ments: Organizational structure: a) Are there written "standard operations procedures": (1) Yes (2) No If No: b) How are operations carried out: (1) According to daily instruction from manager (2) According to functional departments authority and responsibility (3) Other VI. 139 36) Crucial subordinate: 37) a) Whom does the manager believe is most important to him: (1) His assistant (2) Other (specify) b) Who is the man in terms of relationship: (1) Brother (2) Other (specify) Are there periodic production plans according to following: a) Weekly b) Monthly c) Quarterly d) Other Internal Managerial Policies 38) Manager's administrative policies: a) Directs and issues orders without consulting subordinates as a general policy b) Consults subordinates before ordering c) Motivates employees to take intiative through: (1) Committee system (2) Pays bonus in addition to salary (3) Annual salary increment (4) Other d) Encourages employees to think and recommend through: (1) Suggestion system (2) Direct communication to top manager (3) Other VII. External Managerial Policies 39) Employment of expatriates: a) Does he employ foreign experts: (1) Yes (2) No If Yes: b) Is employment because of: (l) Partnership (2) Joint venture (3) For technical assistance only (4) Other _____. c) Does he utilize indigenous consultancy services: (1) Yes (2) No d) WhY: 140 VIII. Marketing Policies 40) 41) 42) 43) 44) Sales promotion: a) Extensive sales promotion b) Moderate sales promotion c) No sales promotion Sales management: a) Is there a sales manager (1) Yes (2) No b) What is t0p sales officer's rank in organization: (1) Equal to production manager (2) Below production manager (3) Other c) Does the firm have its own sales force: (1) Yes (2) No If No: d) How sales are made: (1) To commissioners (2) Other Are there sales plans according to the following: a) weekly b) Monthly c) Quarterly d) Other Are there systematic raw material purchasing plans: a) weekly b) Monthly c) Quarterly d) Other Credit sales policies: a) Extensive credit sales b) Moderate credit sales c) Strictly cash sales IX. Information Flow System 45) General information flow: a) Does he attend trade fairs in foreign countries: (1) Yes (2) No b) Does he suEscribe to foreign techno-managerial journals: (1) Yes (2) No 141 If Yes, how many and what country of origin: c) Annual business visits to foreign countries: (1) Yes (2) No d) Does he use foreign consultants: (1) Yes (2) No If Yes: e) Does he have any preference in terms of nationality: (1) Americans (2) British (3) French (4) Japanese (5) Other f) In what area are consultants mostly used: (1) Production (2) Advertising (3) Accounting and Finance (4) Engineering (5) Economics (6) Management (7) Other 46) Internal information flow: a) Regular reporting system: (1) Production (2) Sales (3) Employment (4) Cost analysis (5) Other b) Regular management seminar: c) Does the firm utilize any computer: (1) Yes (2) No If Yes: d) What kind of computer is utilized: (1) Simple desk computer (2) Medium electric computer (3) Advanced electric computer (4) Other 47) External information flow: a) Officer's reports on the state of economy b) Officer's report on the state of industry c) Does firm know who competitors are: (1) Yes (2) No d) Is there a trade association: (1) Yes (2) No X. XI. 49) e) f) a) b) c) d) 142 If Yes: Position of the firm in the trade association: (1) Firm enjoys leading position (2) Other Does trade association supply information: (1) Yes (2) No If Yes: Nature of information: (1) Generally insignificant (2) Technical information (3) Inter-firm non-technical information (4) Other Product Innovation & Development 48) Frequency in model innovation: Is there a formal structure whose function is product design: (1) Yes (2) No If Yes: How many people are active in such unit: How important are they in eyes of manage- ment: Other Does the firm change models: a) Yes b) No If Yes: 50) Frequency in changing model: 51) Does firm discontinue products: (1) Yes (2) No If Yes: 52) How many products have been discontinued: Research and Development Activities 53) Is there an Operational R & D unit in the firm: a) Yes b) NO 143 If Yes: 54) How extensive is it: a) Number of engineers b) Number of designers c) Other 55) Any further comment by the manager: APPENDIX 3 DOGMATISM SCALE one . l) 2) 3) 4) 5) 6) APPENDIX 3 DOGMATISM SCALE The following is a study of what the general public thinks and feels about a number of important social and personal questions. The best answer to each statement below is your personal opinion. we have tried to cover many different and opposing points of view; you may find yourself agreeing strongly with some Of the statements, disagreeing just as strongly with others, and perhaps uncertain about others; whether you agree or disagree with any statement you can be sure that many peOple feel the same as you do. Mark each statement in the left margin according to how much you agree or disagree with it. Please mark every Write +1, +2, +3, or -1, -2, -3, depending on how you feel in each case. +1 I +2 I +3 I agree a little -1 I disagree a little agree on the whole -2 I disagree on the whole agree very much -3 I disagree very much The United States and Russia have just about nothing in common. The highest form of government is a democracy and the highest form of democracy is a government run by those who are most intelligent. Even though freedom of speech for all groups is a worthwhile goal, it is unfortunately necessary to restrict the freedom of certain political groups. It is only natural that a person would have a much better acquaintance with ideas he believes in than with ideas he Opposes. Man on his own is a helpless and miserable creature. Fundamentally the world we live in is a pretty lonesome place. 144 7) 8) 9) 10) ll) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21) 22) 23) 145 Most people just don't give a 'damn' for others. I'd like it if I could find someone who would tell me how to solve my personal problems. It is only natural for a person to be rather fearful of the future. . There is so much to be done and so little time to do it in. Once I get wound up in a heated discussion I just can't stop. In a discussion I often find it necessary to repeat myself several times to make sure I am being understood. In a heated discussion I generally become so absorbed in what I am going to say that I forget to listen to what the others are saying. It is better to be a dead hero than a live coward. While I don't like to admit this even to myself, my secret ambition is to become a great man, like Einstein or Beethoven or Shakespeare. The main thing in life is for a person to want to do something important. 6 If given a chance, I would do something of great benefit to the world. In the history of mankind there has probably been just a handful of great thinkers. There are a number of people I have come to hate because Of the things they stand for. A man who does not believe in some great cause has not really lived. It is only when a person devotes himself to an ideal or cause that life becomes meaningful. Of all the different philosophies which exist in the world there is probably only one which is correct. A person who gets enthusiastic about too many causes is likely to be a pretty "wishy-washy" sort of person. 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 146 To compromise with our political opponents is dangerous because it usually leads to the betrayal of our own side. When it comes to differences of Opinion in religion we must be careful not to compromise with those who believe differently from the way we do. In times like these, a person must be pretty selfish if he considers primarily his own happiness. The worst crime a person could commit is to attack publicly the people who believe in the same things he does. In times like these it is Often necessary to be more on guard against ideas put out by people or groups in one's own camp, than by those in the opposing camp. A group which tolerates too much difference of opinion among its own members cannot exist for long. There are two kinds of peOple in this world; those who are for the truth and those who are against the truth. My blood boils whenever a person stubbornly refuses to admit he's wrong. A person who thinks primarily of his own happiness is beneath contempt. Most Of the ideas which get printed nowadays aren't worth the paper they are printed on. In this complicated world of ours the only way we can know what's going on is to rely on leaders and experts who can be trusted. It is Often desirable to reserve judgment about what's going on until one has had a chance to hear the Opinions Of those one respects. In the long run the best way to live is to pick friends and associates whose tastes and beliefs are the same on one's own. The present is all too Often full Of unhappiness. It is only the future that counts. 147 38) If a man is to accomplish his mission in life, it is sometimes necessary to gamble "all or nothing at all." 39) Unfortunately, a good many people with whom I have discussed important social and moral pro- blems don't really understand what's going on. 40) Most people just don't know what's good for them. APPENDIX 4 PRODUCTS OF THE APPLIANCE INDUSTRY UNDER STUDY 1148 sumo wosuu "mousom .muumsoca on» no mua>auospouo aamum>o may no mayo» ca Oaumaammucs magma: on on Emmm awn» .manommmoom mco haco on» was muumspca on» mo uostoum mnu mo osam> mumuchE on» uomauwu on OomOQQSm mum n0a23 mousmam m>onm on» nosonuad "muoz .0mma .masb .cmunma .smua mo xcom amuucwo may Eoum Omuomaaoo .Aumaooo mm Scamv consawca pom Am>oum moo tam umumwnnumum3 mm nosmv Omumawmp was >03» mnz ma umnu pom How» 0:» mo Hmuumso umuam on» so comma mum3 ohma mom sumo «« manuaam>mss sumo « Emumuavmm omq.mmv.m oma.o~m.q oam.>mo.m nnn nnn nun nnn 0cm oaomm om0.mam.om onv.mam.ma ovo.mm~.m nnn nnn nnn nun :Oama>mame «a0m0.0m~.0 0mm.m0m.h 00m.mmh.m 0m0.~0a.m 00~.0mm.v 00¢.mhm.m 000.0ma.a m>oum moo «000.m0m.ma 0mm.mmv.m 0mm.mav.m 00m.mvm.v 000.0m~.~ 000.00m.a 000.com umaoou omo.mmm.oa omm.oaa.ea onm.avm.aa oam.~mm.n omn.omm.v oos.mqm.m oav.ovm.m umummmnumumz 0mm.aam.mm 0mm.mhm.hm 0mm.0am.~m 0mv.mvm.m~ 0mm.mmm.ma 050.000.a 0mm.00m.m Houmummauwwm posooum 0>ma mmma mmma homa mmma mwma emma Hmmw Ame mqaam n am may wooem mmozo amemaozH mozaaomma use no meoooomm v XHDZWQQQ APPENDIX 5 (PERSIAN TRANSLATION OF DOGMATISM SCALE) APPENDIX 5 (Persian Translation of Dogmatism Scale) Hm?) 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