NEGATIVE ORGANISATIONS AND HOW TO OVERCOME THEM FIGHTING TO PROMOTE INNOVATION AND CHANGE Manuel Au-Yong-Oliveira GOVCOPP, INESC TEC Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro Illegal copying infringes authors' rights Technical Data Sheet EDITING, DISTRIBUTION AND SALES SÍLABAS & DESAFIOS - UNIPESSOAL LDA. VAT NUMBER: 510212891 www.silabas-e-desafios.pt info@silabas-e-desafios.pt Headquarters: Rua Dorilia Carmona, nº 4, 4º Direito, 8000-316 Faro Telephone: 289805399 Fax: 289805399 Orders: encomendar@silabas-e-desafios.pt Title: Negative organisations and how to overcome them: Fighting to promote innovation and change Author: Manuel Luís Au-Yong Oliveira 1st Edition. Copyright Manuel Luís Au-Yong Oliveira & Sílabas & Desafios - Unipessoal, Lda., October 2022 ISBN: 978-989-8842-74-9 Pre-editing, editing, typesetting and proofreading: Sílabas & Desafios Unipessoal,Lda. Cover: Sílabas & Desafios @2022 All rights reserved. Reproduction prohibited. The use of all or parts of the text, figures, tables, illustrations and graphics, by any mechanical, photographic, electronic or recording process, or any other copied form, for public or private use (other than legal use as a citation in articles, essays and reviews) must have the express permission of the authors. The author assumes all liability for the use of content or images in the texts included herein, which violate and fail to observe copyright. The names of products, technologies andquality systems mentioned in this publication are registered trademarks. II For São, João, Benedita, Joana and Leonor May we always travel together and in harmony III IV ACKNOWLEDGEMENTS Many thanks to the University of Aveiro, and to my research units GOVCOPP and INESC TEC, where I have carried out my research. Many colleagues, students and friends have helped me with this publication, too many to name individually. To all of you my sincere gratitude. Innovation in business terms regards the generation of “new ideas or approaching existing products, services, business models, and concepts in new ways” (Gavin, 2019). Innovation is necessary as “the business world is a fast-paced environment fuelled by new technologies, changing consumer tastes, and other forces” (Gavin, 2019), not least of which the [international] competition in a globalized economy (competitors may be thousands of Kms away). Despite being necessary, innovation is far from being a certain or risk-free operation. Hence this book. A word of thanks also to the courage and ingenuity of fellow researchers and writers who have also chosen to write about curing “organizational change disorder” (McLaughlin, 2019) in order to “promote innovation” (McLaughlin, 2019). The success of innovation may be as low as 4.5% (Tuff and Wunker, 2014) in initiatives that fail to see beyond the product (Tuff and Wunker, 2014). Writing about the positive is so much more popular – but does that lead to a better preparation of our students and of society in general? For the work that has to be done? Last, but not least, many thanks to São, João, Benedita, Joana and Leonor You are my motivation to continue to do what I do - with heart and soul. Manuel Au-Yong-Oliveira, Porto, September 2022. V REFERENCES Gavin, M. (2019). How to foster innovation in the workplace: The value of disruptive ideas. Harvard Business School Online. 30 May. Available at: https://online.hbs.edu/blog/post/how-to-foster-innovation-in-the-workplace, accessed on 22-09-2022. McLaughlin, D. (2019). How to cure organizational change disorder and promote innovation. Forbes, May 13. Available at: https://www.forbes.com/sites/ forbescoachescouncil/2019/05/13/how-to-cure-organizational-change-disorderand-promote-innovation/?sh=50c5ca1c283a, accessed on 12-09-2022. Tuff, G., Wunker, S. (2014). Beacons for business model innovation – How applying two pattern recognition tools can empower companies to pick and develop breakthrough winners in their innovation portfolio, pp.1-11. Deloitte Development LLC. VI "Culture is everything" (Louis V. Gerstner) A negative organisation is one where individual merit and innovation lose to the status quo and to the maintenance of the powerful relationships that govern the organisation (author’s own definition) VII VIII BRIEF COMMENTS ON THE BOOK ******* This is a courageous book and I commend Manuel for writing it. First, because it focusses on the darker side of organizations and people, on their hiccups and downright failures. It would be easier to talk about the brighter stuff, the successes, the headlines. Second, because the book doesn’t stop at generic complaining: it goes deeper and names concrete examples. It would be easier to avoid naming things and just blame “society” or “them”. Third, and most important, because it contributes to an alternative. It would be easier to just make a diagnostic, without suggesting a therapy: a diagnostic never hurts, while a therapy may work, or not. Because it points a way forward, it’s a positive book, one that avoids the negativist and powerless attitude of “things are just like that, and we can’t do anything about it”. It has a feel of mission in it, the mission to help people and organizations improve their lives. This mission deeply resonates with me: as I look back to my 30 years of professional career, I find out that my focus is the same as Manuel’s, whether I was teaching, creating companies, managing them, or mentoring and coaching people. We both enjoy helping people escape the Dark Side that potentially hides behind each endeavor and thrives on ignorance and aloofness. Organizations often become negative because people don’t push enough to make them otherwise. When we don’t enforce culture by design, we get culture by default. And “default” may bring the worst in people to the surface and become the norm. Manuel chose to fulfill this mission by dedicating his life to academy, providing young people with the tools to survive and shape the world. But, unlike most academics, Manuel also has a lot of experience in the IX “outside” world and he brings it to this book, by providing real-life examples and first-hand experiences, as a complement to his theoretical background. It’s not an academic book, and it’s not a “business” book. It’s a nicely balanced blend of both, just like a fine dish of fusion cuisine. Now go and eat it. João Ranito, Entrepreneur and Manager ******* We spend a good part of our lives in organizations. If we stop to think about it for a moment, we are born, grow up, and die within a wide variety of organizations. Some of them are environments marked by learning, development, and morality, with strong influence for the wellbeing and self-fulfillment of their members. However, there are those that are less positive, referred to as negative organizations. Such organizations are characterized by an organizational environment of persecution of the most innovative by the least innovative, by a reality in which not always the most talented survive, but the most cynical and disingenuous. This book deals with these types of organizations and how to survive them. It is a must read for anyone who needs to successfully navigate this type of organizational environment. Prof. Dr. Eduardo Walter, Federal Institute of Education, Sciences and Technology of Piauí, Brazil X ******* The book is a good testimony of the national and international business reality, presenting several examples, typifying behaviours and characters that we have identified in organisations throughout these last decades of strong market competition. Although the theme points to negative organisations, namely entities in situations of greater difficulty and in times of crisis, the truth is that many of the concepts addressed are also easily identified inorganisations that we may call positive. In fact, in organisations of a more "private" nature (although in "state" organisations, with the necessary adaptations, this may also be the case) there are several phenomena that point to the fact that technical and personal competence, dedication to work, voluntarism, efficiency, etc. are not always the most decisive factors for the success of the organisation and also for the personal success of employees. And it is precisely in this context that the book rightly addresses, and in a more significant way in negative organisations, how the interaction between human beings may not follow individual competence and quality, but rather the way they relate to the hierarchy, to their peers and to their subordinates, in an "individualistic" and "self-interested" vision. Many of the typifications that the author identifies in the book, I was able to easily identify, throughout my professional life of over 20 years, in the organisations with which I collaborated, and often even more "exaggerated" than the way they were categorised in the book. As a joke, and if I may, I would also like to categorise the following figure: XI The “bastard” – the one who at times of growth in organisations (more positive) sucks up and interacts well with all members of the organisation (bosses, colleagues, customers, suppliers, etc.), being a "nice guy", but in more negative moments of the organisation, in order to protect himself and not lose his status quo, he loses his moral and professional principles, and is capable of blaming those who do not deserve it, of evading responsibilities, of altering reports, in short, of being someone incorrect – a "bastard" with the others. And from what I have seen, they often end up getting away with it. Finally, a word to Manuel Oliveira, an excellent professional and a great friend, who approaches many of the professional and organisational issues from a correct and well-structured angle, but who fundamentally, given his way of living life, always manages to challenge us to think beyond the "normal". Many congratulations for the courage to write this book, which I hope will have all the success it deserves. Big hug. Pedro Manuel de Resende Pinguicha Galego Economic and Tax Consultant to various national and international companies. PhD student in Management at ISEG - University of Lisbon ******* XII A positive working environment is undoubtedly an indicator of organisational health and a determining factor for the satisfaction and motivation of employees in organisations. In turn, satisfied employees contribute to the positivity and sustainability of the organisation. This reciprocal relationship should be part of the management philosophy of companies. However, this is not always the scenario found. Despite the existence of several studies on human capital, which place human resources as being primordial in organisational activity, the excess of competitiveness and the focus on results, and not on the process and people who provide them, may be in the origin of an environment of negativity. In his book "Negative organisations and how to overcome them: Fighting to promote innovation and change", Manuel Au-Yong Oliveira presents a realistic and relevant approach to organisations. The author presents several less-positive scenarios however, he does not focus on their negativity, but takes a critical and constructive stance, indicating possible solutions and strategies to deal with different situations. This analysis gives a practical and added value perspective to the reader, who, independently of the position held in the organisation, finds tips to transform threats into opportunities for professional and personal development. The book is presented in adirect and objective manner, where key concepts such as organisational culture, meritocracy, competitiveness and survival take pride of place. It is certainly an important contribution to the contemporary characterisation of the environment, management and culture of organisations. Diana Loio, Researcher in the area of Organisational Management ******* XIII This book highlights the relevance of the contributions arising from the author's reflections regarding the problematic of negative organisations and the evolution of business dynamics that is desired in the future where everything is new. The author (Manuel Au-Yong Oliveira) has the unusual quality of being able to accommodate and combine knowledge linked to the new challenges that the future will present in which "the role of communicating is decisive". Marina Machado, Therapist, Manager and Entrepreneur ******* This book is disruptive. Professor Carlos Costa, Tourism Expert, European Commission, Full Professor, University of Aveiro ******* XIV The difference between a positive and negative organisation can often lie in the type of leadership practised and in the management characteristics. Ideally, the leader should be able to adapt the practised leadership style to the environment. In fact, the leader's way of acting may have an impact on the performance of the employees, who may feel more or less motivated to carry out their work. The employees’ motivation influences the achievement of the organisations' objectives. The satisfaction and motivation shown may increase or limit the employees’ predisposition to present innovative ideas and thus contribute to organisational success. Following this line of thought, this book identifies leadership as one of the determining factors for innovation and for the success of organisations. The type of leadership is also identified as a conditioning factor for an organisation to be positive or negative. The author (Manuel Au-Yong Oliveira) presents his reflections on different organisational realities that may help deepen the knowledge on different themes within the management of organisations. Reflecting on the aspects that make an organisation negative is the first step towards change and transformation – little steps towards organisational success. Matilde Macedo, Management Consultant XV XVI PREFACE I have known Manuel for many years, we met at a very young age, in golf, a sport we both love, although we play at very different levels: Manuel an excellent golfer and I a keen amateur. We became great friends and golf allowed us long and deep conversations about our lives and our experiences. I followed Manuel closely – first at university, and then the beginning of my friend's professional activity. Manuel was always very perfect in everything he did, from martial arts, to golf, to university and later in his professional activity. Manuel is interested and goes deep into research and knowledge about any subject he dedicates himself to. Another of Manuel's outstanding characteristics that I think is relevant to highlight in the context of the preface of this book is his uprightness. Manuel is incapable of being less honest or correct with anyone, regardless of the context in question. This book has the noble mission of wanting to help the world of companies to be less imperfect, or, above all, more correct, through warnings and teachings for the actors who could be victims in this complex world of the life of companies and calls for the attention of all of those who, consciously or unconsciously, are the "bad guys" in these organisations. I have over 20 years working in large organisations, first national and then multinational. From very early on I took on leadership roles and I XVII have always been deeply committed to creating a positive, or even very positive, environment in all the companies I have worked in. When I read this book, I remembered how important my natural intuition for dealing with people was in my professional evolution. In business as in life, we need to be lucky. It is almost impossible, until we enter an organisation, to understand how negative or positive it can be and so this book is a good tool to help us, regardless of the perspective, to deal with negative situations and, consequently, to transform them into more positive and successful companies. Jorge Santos Carneiro, OBE (Honorary Officer of the Order of the British Empire) Manager and Entrepreneur XVIII INDEX ACKNOWLEDGEMENTS V References VI BRIEF COMMENTS ON THE BOOK IX PREFACE XVII PART I FOREWORD 3 References 6 CHAPTER 1 INTRODUCTION AND FRAMEWORK 7 References 11 CHAPTER 2 WHAT DOES COMPETITIVENESS CONSIST OF? 13 References 17 CHAPTER 3 POSITIVE ORGANISATIONS 19 XIX CHAPTER 4 THE BOSS IN A NEGATIVE ORGANISATION 21 CHAPTER 5 THE NEGATIVE BOSS IN A POSITIVE ORGANISATION 25 References 29 CHAPTER 6 THE "MAFIA" BOSS 31 References 32 CHAPTER 7 THE NEED FOR "GODPARENTS” 33 CHAPTER 8 THE BUSINESS NARRATIVE MODELLINGLANGUAGE APPLIED TO NEGATIVE ORGANISATIONS AND GODPARENTS 35 CHAPTER 9 THE PERSONALITY AND CHARACTERISTICS OF"GODPARENTS" - A DEEPENING OF CONCEPTS AND PROFILES 39 CHAPTER 10 THE DANGER IN COMPANIES OF HAVING "GODPARENTS" AND THE FAVOURING OF THIRD PARTIES XX 41 CHAPTER 11 BLOCKBUSTER MOVIES AND NEGATIVE ORGANISATIONS THE CASE OF HARRY POTTER 43 CHAPTER 12 QUESTIONS ASKED OF MILLENNIALS ABOUT THE NATURE OF ORGANISATIONS 45 A more qualitative analysis of the survey conducted 45 Patterns identified in the qualitative analysis 50 Where there are people there will be conflict 52 A more quantitative analysis of the survey conducted 53 References 56 CHAPTER 13 STEVE JOBS - THE BILLIONAIRE WHO WAS ALSO A HIPPY AND HIS HISTORIC DEPARTURE FROM APPLE 59 References 61 CHAPTER 14 THE ILLUSION OF POSITIVE FIRMS 63 References 65 CHAPTER 15 CHILD LABOUR AND OTHER ILLS OF BIG COMPANIES 67 References 72 XXI CHAPTER 16 THE IMPORTANCE OF RELATIONSHIPS INPORTUGAL (AND SPAIN) AND THE ABSENCEOF A MERITOCRACY IN THE LABOUR MARKET 73 References 77 CHAPTER 17 AN INSIGHT INTO BRITISH MILITARY LIFE 79 References 80 CHAPTER 18 SOLUTIONS FOR NEGATIVE ENTERPRISES 81 References 83 CHAPTER 19 THE DANGEROUS TASK OF PROMOTINGCHANGE IN ORGANISATIONS: AN AUTOETHNOGRAPHIC NARRATIVE 85 Introduction 85 The war between the agent of change and the power established in the company 86 Lessons learned 92 Conclusion and final remarks 95 References 96 EPILOGUE 99 References 100 XXII PART II PERSPECTIVES AND CONSEQUENCES OF INNOVATION MANAGEMENT AND MARKETING IN NEGATIVE ORGANISATIONS 103 1. Preliminary note 103 2. Setting the scene, objectives, and justification of the theme 103 THE BASIC MISCONCEPTION ABOUT INNOVATION AND MARKETING IMPLEMENTATION – SOLUTIONS FOR NEGATIVE ORGANISATIONS AND [THE LACK OF] INNOVATION 107 Prologue 107 Discussion 108 What are negative organisations really? Fraud, collusion and self-serving behavior 124 Positive organisations and innovation 125 The wider area of organisational politics 131 Knowledge hiding as an inhibitor of innovation – Explicit and tacit knowledge 132 The Innovation Plan 135 How to be successful at innovation in positive firms 139 Negative organisations, marketing and innovation 140 References 146 XXIII
