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23. Management Denial Syndrome

Management Denial Syndrome

In a previous article at https://rational-understanding.com/2023/09/05/cultural-denial-or-conspiracy-of-silence/, I described the concepts of personal and cultural denial. In summary, denial is a psychological defense mechanism identified by Freud and his daughter. When we encounter a situation that causes us anxiety and about which we can do nothing, then we alleviate our anxiety by denying the existence of its cause.  Cultural denial is a much stronger form. When a group experience anxiety due to a common cause, then they reinforce one another’s denial through the process of socialization, i.e., punishment for mentioning the cause and reward for remaining silent about it.

However, there is another form of denial that is stronger yet. It is a very common organizational pathology that infects management hierarchies. To explain its cause, I must take a step back. The relationship between a junior manager and a senior one is an informal contract, whereby the junior manager supports the senior one in return for delegated power and the benefits of status. There is often much competition for management positions and the senior manager usually controls who will fill them. So, if there is a problem in the organisation, then a junior manager will be reticent to speak truth to power and report it to a senior one for fear of appearing in breach of the informal contract. This creates anxiety that can result in personal denial. That is, whilst we may be aware of the problem, we do not think about it or discuss it and do not realize that others are in the same position. There are, of course, those who do think about the problem but whose primary concern is to navigate it in their personal interest. In the hierarchy, almost all senior managers are junior to a yet more senior one. So, if the problem is reported to them, this affects their own denial, and they can discourage further reports with veiled threats. In this way, denial can infect a whole management hierarchy. The managers may know of the problem but are unwilling to talk about it, and so, it goes unaddressed. Furthermore, the hierarchy is unable to recognise that it suffers from this problem because denial is itself the subject of denial. Ultimately, recognition often only occurs when there is a catastrophe.

The classic example is the Columbia Space Shuttle disaster. A brief description of events leading up to this disaster is given below. However, there are many other more mundane examples, two of which I will also discuss.

The shuttle Columbia was launched in 2003 with seven astronauts aboard. During takeoff, a piece of insulating foam from the external fuel tank was seen to break off and strike the shuttle’s wing. Foam had broken off before and in one instance it dented the casing of one of the solid rocket boosters. However, this was the first time that foam had struck the shuttle. Concerns were raised by a relatively junior member of the NASA team and requests were passed up the line for remote inspection of the shuttle’s wing while it was in space. However, the prevailing view in NASA was that the foam was not sufficiently dense to have caused any significant damage. Three potential remote observations by aircraft, ground telescope and satellite were considered but rejected by the management team. A proposal for an external inspection by the astronauts was also rejected. All would have taken time out of the crew’s very tight schedule of scientific experiments, thereby harming NASA’s reputation. The junior member who raised the concern, when he pressed the matter, was told by his manager not to be “Chicken Little”, i.e., not to raise false concerns. A working group was established to consider the matter but complained that they did not have visual evidence on which to base their work. They were told to do their best without it and concluded that there was no safety concern. The astronauts were informed of the strike but again were told that there were no safety concerns.

As we know, when the shuttle returned to earth it broke up during re-entry with the loss of all seven astronauts. Even then, the denial persisted. Managers claimed that there must have been some other cause. Only when the external accident investigation team fired a similar piece of foam at a mock-up wing, and it punched a large hole was the denial overcome. Many in the management team then recognised their error and there were expressions of “mea culpa”. Others, however, went to ground. It is uncertain whether the lives of the crew could have been saved had the damage been investigated. However, it is clear that management denial prevented any attempt to do so.

More detail is given in the excellent documentary on BBC Iplayer entitled “The Space Shuttle that Fell to Earth” at https://www.bbc.co.uk/iplayer/episodes/m001tts2/the-space-shuttle-that-fell-to-earth.

Recently, I have had dealings with two UK public service organisations, both of which have a communication problem with their customers that impacts seriously on their ability to provide a satisfactory service. In one case there is a lack of feedback on reports from the public about safety concerns. This, of course, discourages them from making such reports in the future, and so, safety issues are probably going unaddressed. In the other example there is a lack of feedback on the progress of maintenance tasks not only to customers but also internally. As a result, costly mistakes are made, tasks go unaddressed, and the administrative costs involved in correcting this is high. Both organisations suffer the same denial syndrome. Although they both have complaints departments, they appear to see their role as one of defending management from criticism. They use various techniques among which are gaslighting, irrational arguments, and word games, i.e., implying one thing whilst actually saying another. It can be very time-consuming and frustrating to obtain the truth, and in so doing one can become labeled as the problem. So strong is the denial that the last-resort is often self-harm by, for example, simply not replying to the customer or asking them to contact an external regulator. Both organisations also employ “improvement managers”. However, whilst they may be aware of the problem and agree with the customer, they are also part of the management hierarchy, have a living to earn, and face the same difficulties in speaking truth to power.

Please, do not take these examples as implying that management hierarchies in the private sector are immune to the problem. Many do in fact suffer from it, although the topic of denial may be different, for example, a bullying, misogynistic, anti-social, or anti-environmental culture.

So, what is the solution to this syndrome? As we have seen from Columbia, a catastrophe will bring recognition. However, we should of course aim to avoid catastrophes. Bypassing the hierarchy, i.e., whistleblowing, is one solution, although it is notable that many organisations are now putting whistleblowing policies in place to control this. Leaving the organisation is another, although this will merely worsen the situation. A form of natural selection will take place in which those who are more susceptible to the syndrome remain, whilst those less susceptible leave. The only real solution is awareness of the problem, which I hope this article will encourage; better management training, including recognition of the syndrome; greater honesty with ourselves, even if this means suffering some anxiety; and greater honesty with others, especially those with power over us. There is a degree of personal risk in the latter and the way that a problem is flagged up will depend on the circumstances. However, it would clearly help to understand the benefits and disbenefits of acknowledgement vs. denial, and to emphasise the benefits of the former and the disbenefits of the latter.

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05. A Summary of Social Systems Theory

A Summary of Social Systems Theory

In this short series of articles, I will summarise the basic principles of Social Systems Theory. Full details are given in previous or subsequent articles.

The fundamental component of society or holon

The term holon was coined by Arthur Koestler in his 1967 book, The Ghost in The Machine. It refers to any entity that can be recognised as a whole in itself and which constitutes part of a larger whole. In social systems theory the fundamental component or holon of society is the organisation, that is, any group of people who work together with a common purpose. Organisations can be of any type and can range in size and extent from an individual, through clubs, businesses, sectors, political parties, governments, nations, and groups of nations, to the global community.

Family relationships between organisations

All organisations form a nested hierarchy. The structural relationships between them are similar to those in a family and the same names can be used. Thus, for example, child organisations are components of a parent one, and parent organisations are components of a grandparent one. Two organisations that are components of the same parent are known as sibling organisations. This nested hierarchy continues upwards until an isolated organisation or the global community is reached.

Every organisation comprises a number of component or child organisations, and this nested hierarchy continues downwards until individual people are reached.

Recursion

Recursion means that similar rules and principles can explain the behaviour of organisations irrespective of their size. Thus, for example, a department in a government agency has a leader, and so too does the entire agency.

The control component

All organisations have a control component, e.g., leadership or management, to co-ordinate their activities. Due to recursion, control components have their own control components until we arrive at the individual person. This creates a leadership or management hierarchy comprising individuals. It is natural to select leaders using a bottom-up process, i.e., followers choose a leader thought to be best qualified to co-ordinate their activities. However, managers are also frequently chosen by a top-down process whereby senior managers select junior ones thought to be best suited to the role.

Needs, satisfiers, and contra-satisfiers

All organisations have needs similar to those of individuals. These needs are prioritised using the same categories for individuals identified by Abraham Maslow and Clayton Alderfer, i.e., ERG or existence, followed by relatedness, in particular family relatedness, followed by growth. These priorities are consistent with the multilevel selection theory of evolution. This holds that we place greatest weight on personal survival and reproduction, followed by that of the community upon which we depend, followed by people more remote.

Satisfiers are those external things that increase the level of satisfaction of our needs, for example, food for hunger, or resources for manufacturing. Both individuals and larger organisations endeavour to gain satisfiers as efficiently as possible. Contra-satisfiers, on the other hand, are those external things that reduce the level of satisfaction of our needs and which we endeavour to avoid.

The applicability of systems science, function, and causality to organisations

All organisations are systems and comprise inputs, processes, and outputs. The fundamental principles of systems science apply to them, therefore.

Causality also applies to organisations. The combination of an input and the process is equivalent to a cause. The combination of the process and an output is equivalent to an effect. An organisation’s processes and outputs are also referred to as its function. Because causality applies to organisations we can, for example, say that a number of necessary causes or inputs are together sufficient for an effect in which the organisation carries out its function of producing outputs.

Matter, energy, or information is transferred from every organisation’s inputs to its outputs. This takes place within the region of space-time defined by the organisation’s process. Thus, the latter provides the overlap in space-time needed for a cause to be related to an effect.

All organisations comprise a group of people who work together with a common purpose. This purpose is also the organisation’s function, and the ability to carry out its function is an organisational need.

The applicability of motivation theory to organisations

All interactions between individuals, organisations, and parts of them comprise an exchange of satisfiers or contra-satisfiers for each other’s needs. These satisfiers and contra-satisfiers also take the form of matter, energy, or information. A satisfier or contra-satisfier received is an input, and one provided is an output. Thus, motivation theory also plays a key role in social systems theory.

The applicability of information theory to organisations

Information passes between organisations and flows within any organisation’s processes. Thus, information theory plays an essential role in social systems theory. Fundamentally, information is organised or structured matter or energy that we recognise due to its recurrence. It can exist “at source”, i.e., as the original structure perceived in the physical universe. It can also be translated into various symbolic forms capable of being transmitted, stored, or remembered. Importantly, information at source is, by definition, always true. However, information acquired in other ways, for example, from another organisation, can be false.

Direct interaction can only take place if two organisations are aware of one another, and for this to be the case, information must pass between them. However, organisations can be aware of one another but not interact. These criteria simplify the web of interactions in a social system.

Culture & interaction style

The ways in which individuals and organisations interact are determined by their culture and interaction style. These topics will be covered in a forthcoming article.

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01. Organisational Pathologies

Organisational Pathologies

The fundamental entity in social systems theory is the organisation. That is, any group of people who work together for a common purpose. An organisation may be an individual, a club or society, a business, a charity, a sector, a nation, or the global community. An organisation can also exist temporarily to carry out a short-term project or it can have a longer-term function. This series of articles discusses the ways in which organisations can fail and ways of avoiding this.

The articles also approach the topic from a systems perspective. Every organisation is also a system. It comprises inputs, processes, and outputs. Everything that is not part of the system is its environment. However, for organisations this terminology translates into that of social science. Processes are the needs of the organisation. Inputs are the satisfiers and contra-satisfiers of those needs. Outputs produced by its processes are the purpose of the organisation. That is, the provision of satisfiers and contra-satisfiers for others.

Figure 1. Systems and organisations compared.

Organisations do, however, have two additional features not held by systems in general.

Firstly, outputs are traded for inputs. That is, satisfiers or contra-satisfiers for others are traded for those required by the organisation. This is what binds us together into society. The word “trade” is used in a very general sense and applies not only to businesses but all organisations. Trade is a fundamental aspect of human nature. Its basis is the search to satisfy human and organisational needs. The term is derived from economics, a branch of social science that focusses on the trade of goods, services, and money. However, many regard economics as a specialised branch of psychology. It does, therefore, provide terminology that can be usefully employed in a more general sense. For example, we trade satisfiers for other “non-economic” needs such as relationships and personal growth. We do so in a way that is no less rational than the trading of goods, services, and money.

Secondly, an essential component of an organisation is its control component, i.e., leadership or management, without which the activities of other components cannot be co-ordinated, and without which an organisation does not exist.

Many factors are necessary but only together are they sufficient for an organisation to function satisfactorily. The organisation must receive its necessary inputs, i.e., the necessary satisfiers for its needs must be present, and any contra-satisfiers absent. The control component must carry out its function satisfactorily. There must also be satisfactory communication between it and the other components. The organisation must operate and maintain its processes satisfactorily. It must deliver its outputs of satisfiers or contra-satisfiers for others. Finally, it must adapt to any changes in its environment which impact on these factors.

This means that there are many more ways for an organisation to fail than succeed. In systems theory the causes of systems failures are known as system pathologies. In social systems theory they are, therefore, referred to as social systems pathologies or organisational pathologies. These pathologies can be categorised according to the aspect of the system in which they occur. They are summarised below.  

The System’s Environment

  • The VUCA World (Volatile, Uncertain, Complex, and Ambiguous)

The Control System

  • Self-interest vs. Collective Interest
  • Leadership Competence
  • The Corrupting Effect of Power
  • Contra-Social Leadership Behaviour
  • Psychopathic Leaders
  • Narcissistic Leaders
  • Dark Empathic Leaders
  • Governance, Culture & Ethical Standards

Instability and Self-maintenance

Adaptation to Environmental Change

Vertical Communication

  • Knowledge of Processes
  • Feedback and Monitoring
  • Misinformation
  • Delayed or Absent Response

Inputs & Outputs

  • Mismanagement of Resources
  • Function & the Identification of Needs
  • Equitable Trade
  • Relationships
  • Protectionism and Blocking

Processes

  • Poor Process Design
  • Process Inflexibility
  • Unregulated Feedback

Multiple Causes

  • Extractive Institutions

The articles that follow will discuss each of these pathologies in turn. They can occur in any organisation irrespective of its size and function. However, the name used to describe the same pathology varies between types of organisation. The articles will, therefore, describe the effect of each pathology on a range of organisations of different types, from a small club to a nation.