Lecture 1:Managing people in organizations
MANAGING & MANAGERIALISM
Managing: is about sensemaking and framing => it involves assumptions, values, and practices that
shape how reality is understood
Managerialism: extends management techniques beyond organizations, applying them universally in
work, society, and capitalism, justified by claims of expertise and superior ideology
Management can be seen as:
A practice (what managers do daily)
Organizations as structured, goal-oriented collectives where management occurs
Management involves communication, coordination, and action to achieve organizational
objectives
It also means managing relationships: with stakeholders, employees, suppliers, customers,
communities, and technologies (within and between organizations)
Key point: Management is not a neutral activity
It is not only about efficiency and productivity
It is also a socio-political activity, requiring attention to societal, political, and ethical
responsibilities
SENSEMAKING IN ORGANIZATIONS
Over the past 40 years, organizations have been modelled (what it should be) after lean, efficient,
profit-oriented private sector firms. Top management seeks/strives to create a common frame of
reference so that employees, customers, suppliers, and investors can develop a common
understanding of the organization’s identity and purpose.
This process is known as sensemaking: the process through which individuals and groups give
meaning to something/construct meaning, especially to explain novel, unexpected or confusing events
SENSEMAKING IN A CAPITALIST SYSTEM
=> often revolves around profit orientation; questioning whether it truly makes sense.
Employees may find meaning by identifying with prestigious or “hip” companies
(Apple, Google) -> make sense of you work
However, it is important to challenge corporate narratives:
o Companies may project an appealing image that does not match reality
o Managers’ narratives should also be questioned
Sensemaking is continuous: we constantly reinterpret and revise earlier understandings as new
knowledge, events, and information become available
Meaning is an ongoing construction, where past experiences shape present interpretations (Maitlis &
Christianson, 2014). https://www.youtube.com/watch?v=slx_YF1lP1g
SENSEMAKING – BE CRITICAL Stuff happens: George W. Bush & Donald Rumsfeld and
the Iraq War
,We know where they are [Iraq's weapons of mass destruction]. They're in the area around Tikrit and
Baghdad and east, west, south and north somewhat (Donald Rumsfeld, 2011)
https://www.youtube.com/watch?v=WejYdT3Lof8
https://www.bing.com/videos/riverview/relatedvideo?q=Iraq+war+2003&mid=F1EE0CD026096AF0270
5F1EE0CD026096AF02705&FORM=VIRE 4:10 minutes
Watch President Bush announces the Iraq War https://youtu.be/FuwZSAmZ5G0
SENSEMAKING – BE CRITICAL: THE IRAQ WAR CASE
After 9/11, U.S. leaders reinterpreted threats and constructed new narratives.
Shift in risk perception: Saddam Hussein was reframed as a major threat, even without
evidence of direct ties to 9/11
Narratives constructed:
o Axis of Evil speech framed Iraq, Iran, and North Korea as existential dangers
o Emphasis on preemption: acting before threats materialize
o Cheney (2002): “There is no doubt Saddam has WMDs.”
Constructivist insight:
o War was not inevitable based on facts alone
o It became plausible through shared narratives of danger, identity (“war on terror”), and
moral duty
Outcome: U.S. leaders created a compelling story in which invading Iraq appeared logical and
necessary.
MANAGING IN A COMPLEX WORLD
“One size fits all” management approaches do not work in modern organizations.
Modern managers cannot rely solely on hierarchy or formal roles to guide people.
Management has become more difficult, political, and challenging.
Organizations are complex systems embedded in broader networks and contexts.
Managers need a solid understanding of human and organizational complexity to navigate
these challenges effectively.
SENSEMAKING AND FRAMING IN MANAGEMENT
Managers influence organizational reality (manage) through three processes:
1. Sensemaking: interpreting and understanding events
2. Sensegiving: shaping how others perceive and understand those events
3. Sensebreaking: challenging or dismantling existing interpretations
A key managerial task is framing the roles and actions of others in the organization.
As social and organizational realities change, managers must adapt their sensemaking &
framing
Much of management is discursive: using communication, suggestions, and instructions to
guide actions and achieve objectives
MANAGING AND FRAMING
,Sensemaking is personal but social: while each person constructs their own understanding, it is
influenced by language, concepts, experience, and cues from others. Familiar stories and patterns
also shape interpretation.
Individuals interpret the same cues differently, so people can make very different sense of the
same situation
Effective management requires awareness of these differences and skill in framing shared
understanding
FRAMING
Framing comes from filmmaking: a director selects what to include or exclude in a shot. In
management, framing defines what is relevant, distinguishing between important and unimportant
elements.
Managers constantly differentiate the relevant from the irrelevant to guide
organizational focus
Framing involves creating devices that assign meaning to organizational situations
(Fairhurst, 1993)
Techniques of framing include:
o Metaphors
o Stories and narratives
o Traditions and slogans
o Material artefacts that highlight or contrast organizational issues
FRAMING: SENSE-BREAKING & SENSE-GIVING
Framing is a leadership activity, especially important during organizational change
Leaders mobilize followers using carefully chosen images, symbols, and language
Framing operates through three processes:
1. Sensemaking: interpreting and understanding events
2. Sensegiving: shaping how others perceive and understand those events
3. Sensebreaking: challenging or dismantling existing interpretations
FRAMING THE IPHONE AS A REVOLUTIONARY PRODUCT (e.g. of framing in
practice)
Steve Jobs’ 2007 MacWorld introduction of the iPhone
https://www.youtube.com/watch?v=x7qPAY9JqE4
Jobs framed the iPhone as a revolutionary innovation, shaping public perception through:
Narratives about its uniqueness and transformative impact
Language and imagery emphasizing simplicity, design, and functionality
Symbolic acts (live demonstration, storytelling) that reinforced the product’s significance
This illustrates how leaders use framing to influence sensemaking and mobilize attention around
organizational achievements.
MANAGERIALSIM
Presents management as a universal solution to all organizational and societal problems
It combines management tools with ideology to establish systemic control over
organizations, public institutions, and society
, This process limits decision-making power of:
o Business owners (property rights)
o Workers (organizational-economic influence)
o Civil society (social-political input)
Managerialism justifies its one-dimensional techniques by claiming:
o Superior ideology
o Expert training
o Exclusive managerial knowledge necessary to run organizations and society like
corporations
MANAGERIAL RATIONALITY
Some managers claim decisions can be made purely based on managerial competence, an idea tied
to managerialism.
Is management as in ideology possible? => reality check: management goes beyond financial
capital, it also involves:
o Symbolic capital (reputation)
o Social capital (relationships and networks)
Organizations have professionalized workflows, but are also full of stories, rumors, gossip, and
narratives.
Managerialism functions as an ideology, often linked with economic rationalism and
metaphors
Rationality is bounded: decisions are always contextually and cognitively limited
Organizations & management practices are constantly evolving, & resistance to change is
normal
Perfect knowledge is impossible, so the belief in purely rational management (by ‘rational
managers’) is more a myth than reality
MANAGERIAL RATIONALITY VS. MANAGERIALISM
Managerial rationality (rational approach) Managerialism (framing / ideology)
-Focuses on logical, context-specific decision-making -Treats management as a universal solution to all
using reasoning and data. organizational problems.
-Aims to optimize resources, processes, and -Often ignores unique contexts of different sectors
outcomes. or situations.
-Seeks efficiency, consistency, and predictability within -Overemphasizes management tools and principles,
a particular organizational context. sometimes excluding other perspectives.
-Applies one-size-fits-all approaches across fields
like education, healthcare, and government.
CHANGING PARADIGSM: THE DIGITAL AGE
https://www.ted.com/talks/markus_lorenz_industry_4_0_how_intelligent_machines_will_transform_eve
rything_we_know/up-next &
https://www.ted.com/talks/philip_evans_how_data_will_transform_business/up-next
Globalization: digital technologies and the international division of labour make the economy
increasingly globalized, though pressures to deglobalize exist (trade wars, pandemics, political
responses).