Summary of Sociology 110 October 8 1998 Prof Aldrich Ms Davis

Sociology 110 Professor Aldrich & Ms. Davis
October 8^th, 1998, Summary

Review: Networked or Hybrid Organizational Forms
Be able to answer the following questions:
1. What is the difference between markets and hierarchies with regard to organizing transactions between economic units?
a. markets involve relations between autonomous units operating at arms length from one another; hierarchies involve units under one authority structure.
b. they differ in how much access organizations have to the inner workings of others -- in a hierarchy, the owner/top manager has access to everything the subordinate units are doing.
That is not true of market based relations.
2. What is so special about "hybrid" or "networked" forms, compared to markets and hierarchies?
. Give an example.
E.g. Hollywood film production: producers, studios, music producers, agents, etc. all work together on the basis of long-term relations, trust, and loyalty. Work together again & again in the same networked organizational forms.
4. If networked forms are so good, why don't all firms adopt them? What are their liabilities? Under what conditions do they make sense?
The following points are from the viewpoint of the individual organizations involved.
a. In a hybrid network, the freedom of action of individual orgs is limited because they must take into account the overall health of the network. This may stop them from buying cheaper products or working on innovations.
b. In a hybrid, organizations become dependent on each other, and this may lead to disadvantages for some, especially smaller organizations.
c. The networked organizations -- the many that are tied together -- depend on loyalty & trust. It is very hard to sustain such conditions over time. "Free riders," organizations that violate trust, are disloyal, etc. cause problems for the governance of hybrid forms.

The following point is from the viewpoint of the whole society & public policy:
d. In the United States, policy makers are suspicious of anything that looks anti-competitive or collusive. Government officials may see networked organizations as another attempt at monopoly and anti-competitive practices.

Health and Safety and Power of Big Organizations

1. How dangerous is tobacco to the health of the population?

2. Given the attacks that tobacco companies face, how do they get managers to run them? And how do the managers "live with themselves," to use a phrase from the readings?

Rosenblatt’s explanation of how tobacco executives live with themselves.

Psychological defense mechanims: denial leads to justification. Managers can say "It is a choice that smokers make." Plus there are several other justifications, as noted below:

a. Managers say "There is no direct, absolute proof of harm."

b. Managers say "Many people quit; it is not addictive."

They have good jobs that pay well and they are successful.From a self-interested point of view -- as users -- they don't want to give up such jobs.

Managers can also say that their company does good things: charities, grants, donations.

Finally, they can say that the industry is important to the economy.

Sociology 110 explanation of who tobacco executives live with themselves.

Team oriented selection process of new employees. In the selection process they hire people who aren’t radical anti-smokers. Hire people who are from rural areas that grow tobacco-social similarity. People like lawyers and PR professionals like the challenge of representing an unpopular fir m.

Homosocial reproduction (Kanter) - they reinforce among themselves the concept that smokers make their own decisions, freedom. Managers face pressure to be loyal and to conform. Adopt values of the company.

Boundaries & boundary maintaining processes -"It’s Us against The World" Strengthens commitment to the company.

Artifacts & symbols of the strength of the firm's culture (not an explanation, but instead an indicator of the above explanations) -company has ads and ashtrays in New York office-reinforces the positive image of smoking.

Advancement (another version of the homosocial reproduction argument?) -people who have more positive beliefs in the company are more likely to advance than those who are ambivalent about smoking or those who "rock the boat" by pointing out negative aspects of smoking.

These are good jobs-people are loyal to the company who has made them successful and paid them so well. You take opposition to the company personally.

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