HRD And Gemeinschaft: A Contemporary Example Using The Concepts Of Tönnies And
Engeström
Refereed Paper
Laurence, John
Abstract
This research is a longitudinal study of a pharmaceutical packaging company’s CSR (Corporate Social
Responsibility) and HRD (Human Resource Development) practices, It utilises the theories of Tönnies
(the sociology of Gemeinschaft and Gesellschaft) and Engeström (activity theory) to do this using data
from a previous study plus a small amount of research based on current public domain data, to see how
the activity system has developed. It was discovered that the company in the case possessed some
unique features in both its HRD and CSR practices. These were traced to some “germ cells” in its history
and the coming together of people and conditions which enabled the activity to develop a rather unique
and surprisingly beneficial culture. Upon further investigation it was suggested that this culture had many
features of a Gemeinschaft as described in the sociology of Tönnies. The benefits to practice and the
fragility of such formations were noted
Key words: HRD, CSR, “activity theory”, Gemeinschaft , Gesellschaft, pharmaceutical packaging.
1.
Introduction
This paper presents some previously unpublished research taken from a completed PhD (Laurence,
2006) which used activity theory (Engeström, 1987, Engeström et al 1999, Vygotsky,1978)) to assess the
relationship between organisational learning and knowledge management. One of the case studies
produced as part of this research struck the author at the time as having relevance to organisational
development practice, in particular the development of exceptional standards of corporate social
responsibility (CSR). Upon further reflection it also occurred to the author that not only was an activity
theory analysis useful in the context of this case, but an additional layer of analysis based on the theories
of Ferdinand Tönnies, would add further insights. This paper therefore briefly describes the multimethodological approach of the original research, which used activity theory as the primary method and
Action Science (Argyris, C. and Schön, 1978, 1996) as the additional theoretical method. Drawing on
some of the original data, it re-applies activity theory to examine human resource development (HRD)
and exemplary CSR practice at the company. Finally it provides some additional analysis, by replacing
action science as the multiple method and applying the well established sociological theory of
Gemeinschaft und Gesellschaft (loosely translated as Community and Society) (Tönnies, 1887) to the
case. It is felt that this multi-methodological approach delivers some original insights into CSR with some
clear implication for practice. The research will be original in several respects. Firstly the application of
activity theory to HRD is unusual in itself, although there are some precedents (Virkunnen et al 1997,
Toivannen and Engeström, 2009). Secondly the multi-methodological use of activity theory and the theory
of Gemeinschaft und Gesellschaft is unique and therefore also new in a HRD context.
Tönnies, was a contemporary of Marx (whose ideas underpin activity theory) and the former had a great
respect for his social theories and the relationship between the two men’s ideas are discussed in the work
of Pappenheim (1968). Whilst their views were not identical (Araghi,1987) the potential to apply Tönnies,
theories to modern society in an HRD context within an activity theory framework is an attractive one.
The reason for this is that Tönnies’ theories seem, to the author, to still have many resonances with
issues of modern commercial life and that a praxis based approach such as activity theory is eminently
suited to CSR and modern HRD practice. Good CSR practice will be interpreted as meeting the needs of
key internal and external stakeholders (employees, customer, and local community).
2. Theoretical background
2.1 Activity theory
It will be helpful, for some readers, to briefly describe activity theory, as it is by no means widely
established, although is becoming more so in educational fields (Leadbetter et al 2007, Hedegaard and
Chaiklin, 2005, Yamazumi, et al, 2005). Activity theory originated with the work of Lev Vygotsky (1978,
1987) and his associates Luria (1976) and Leontiev (1978). These were all active as Soviet
psychologists and therefore heavily influenced by the work of Karl Marx, (1867, 1938[1846]). They
sought to develop a theory of consciousness based on collective activity rather than individualist
principles, as favoured by western psychology. Vygotsky was also known as a semiotician, placing
emphasis on the mediating power of language (1981). Latterly activity theory has been further developed
by Yrjö Engeström, and his associates (Engeström, 1987, Engeström et al 1999) and is being used
increasingly in a number of fields of social research (Engeström, 1998, 1999, 2009)
Engeström, has developed Vygotsky’s original model of activity from a simple one, in which the subject
engages with an object, which is always mediated by some artefact, which may be a tool or more often
language. Engeström (1987) has developed a more sophisticated model of mediation, incorporating a
wider range of Marx’s theoretical concepts. This is best illustrated by Engeström’s, basic activity system
diagram (Figure 1, below).
It can readily be seen from the diagram how the top triangular relation ship of subject object and
instruments (tools) as originally determined by Vygotsky (1981), has been expanded to include social
rules, the community in which the activity takes place and the division of labour involved. It is also
significant that an activity system is conceived of as collective and involving a multiple number of
participants. It is also necessary to understand the dual nature of the object. On the one hand its is the
material or ideal object worked on by the subjects, and on the other, it is the motivating objective the
activity is addressing. The outcome is the result of the activity, which is ontologically different from the
object.
Instruments
EXCHANGE
PRODUCTION
Object
Subject
OUTCOME
CONSUMPTION
DISTRIBUTION
Rules
Community
Figure 1 General model of an activity system (Engeström, 1987).
Division of labour
For instance Leontiev uses the example of a primitive hunt (Leontiev, 1978) as a typical activity system.
Building on this example it could be said that the subject (the collective of hunters) is working on the
object (the prey) with the objective of obtaining food, resulting in the outcome of a successful hunt and a
well fed and thriving community. It is not possible, within the scope of this paper to give a fully developed
account of activity theory, but some further fundamental principles need to be explained briefly. Modern
activity theory is based on a cultural and historical perspectives (Engeström, 1987) stressing the historical
background and existing technological and linguistic context of activity, with an analysis of past present
and future aspects of the activity system. The past often contains the “germ cell” (Engeström et al, 1999,
Hedegaard, 1988) of the present situation, which in turn can lead to a higher level of activity. Activity is
seen as the basis of the creation of both consciousness and knowledge. Collective (and individual)
learning is achieved by expanding the context of activity to new higher levels (Engeström, 1987). Finally
the role of contradictions between elements of the activity system are a key way of understanding where
the systems is currently, what its problems are and possibly how it might expand the context of activity
and thereby its learning.
2.2 The theory of gemeinschaft und gesellschaft (community and society)
The research carried out for this paper includes application of theory from the work of Ferdinand Tönnies
who analysed society via a distinction between Gemeinschaft or “Community” and Gesellschaft or
“society” (Tonnies, 2002[1887]) in combination with activity theory. There are several reasons to justify
the use of this multi-methodological approach (Mingers and Brocklesby, 1996, Mingers and Brocklesby,
1997, Mingers and Gill, 1997). The most common reason for using more than one method is
triangulation, to test the validity of analysis and conclusions. The second reason is to achieve an
enhanced or more holistic interpretations of data. The third is to benefit from the combination of
qualitative and quantitative methods. This research uses multiple methods mainly for the second reason,
i.e. to get deeper insights into the situation being studied. The words Gemeinschaft und Gesellschaft do
not translate easily from the original German, but the former relates to relationships based on feelings of
kinship and local ties and attachments based on affect and duty, as opposed to the purely transactional
relations of the developing capitalist society that the author saw as emerging at the time of writing
(Tönnies, 2[1887]). It is remarkable that the case study on which this paper is based exhibited, many
features of Gemeinschaft, which theoretically should no longer exist in a modern capitalist enterprise. As
activity theory was used successfully in the original research (Laurence, 2006) and Tönnies work does
not readily lend itself to a particular research method, it was decided to reapply activity theory to reinterpret the data from an HRD/CSR perspective and to then incorporate Tönnies’ concepts in steps 4
and 5 of the methodology in place of the Action Science and Levels of Learning theory used in the
original research (Argyris and Schön, 1978, 1996, Bateson, 1972) see Table 1.
The key elements of Tönnies’ sociological theory (2002[1887]) have had a profound influence on
sociological theory in general and it is mentioned in most general textbooks on the subject. Its principal
features concern two types of society based on differing societal relations. As stated above these are
referred to as community and society in translation and are based on two types of human will. The
concept of the will has a well established history in German philosophy (Nietsche, 1967a, 1967b, 1969,
Schopenhauer 1969) and Tönnies would have been aware of their work. His contribution to this body of
theory was his concept of Wesenwille (often translated as “natural will”) and Kürwille (often translated as
“rational will”). These, together with his concepts of the two types of social entity (Gemeinschaft and
Gesellschaft) are the foundations of his sociology. The natural will is based upon an affective orientation
to the family, one’s locality, religion and tradition and has a natural affinity with a type of society called
Gemeinschaft. Influenced partly by the ideas of Marx (1967) he describes the relations of production as
essentially meeting the needs of the community. Artefacts and agricultural outputs are produced primarily
as use values, by and for the community (i.e. for consumption by the community). He makes it clear that
the original or natural state of affairs is one of Gemeinschaft, “... the theory of Gemeinschaft starts from
the assumption of the perfect unity of human wills as an original or natural condition” (Tönnies (2002
[1887] page 37) He roots the feelings of unity in this formation as based on “parental descent or sex” (ibid
page 37). The relationships in such a society are based on loyalty, friendship and trust in a mutually
supportive and interdependent way. The will and understanding are based on a respect for tradition,
craftsmanship religion and love of “hearth and board” (ibid, page 54) and is typical of rural towns and
villages. Production and exchange are based on simple “commodity circulation” (ibid page 55).
By contrast Gesellschaft is characterised by rational will. This implies a much more impersonal
mechanistic set of relation, based purely on the “cash nexus” (Carlyle, (2005 [1858]). His descriptions of
the relations of production also mirror those described by Marx (1867) in which the worker is compelled to
sell his/her labour and production is not for use but purely for exchange. This alienation of the product
from its producer and from its context with its value solely base on its exchange value in commerce (for
making profit) is fundamental to the establishment of Kürwille. This rational concern for producing
individual utility through the accumulation of money (as opposed to Wesenwille which is concerned with
use) through cash transactions results in an atomistic, impersonal, mechanistic society. This society is
also characterised by class divisions rather than family ties. He concludes (with Marx) that this new form
of society based on contractual rather than family relations allows capitalists to dominate society and
expropriate the surplus value created by the workers. Although Tönnies acknowledges his debt to Marx,
he differs with him on the technical point of “average rate of profit”. He states his position as follows
I have never accepted the theory of value of Ricardo, Rodbertus and Marx in the form
in which it was presented, but I fully agree with its principal arguments. In this treatise
the modification and directions which I deem necessary have been pointed out.
Today, as ever, I stand for the maxim that only labour creates new values. But I add
the further statement, that labour does not create equal value in equal periods of
socially necessary labor-time.
Tönnies (2002[1887] page 102, 1911 addition to the 1887 version)
This demonstrates that Tönnies agrees with Marx in principal but not in some finer points about the theory
of surplus value. He also ends up with a rather ambivalent attitude to the changes he describes. Whilst
he deplores the exploitation, alienation and isolation brought about by the emergent primacy of
Gesellschaft he cannot, as a progressive sociologist, advocate a return to the rather traditional outdated
ways of the Gemeinschaft. Admittedly he sees these two entities as ideal types or polar extremes
developed as tools of analysis, elements of which still coexist in the real contemporary society of his time.
However, this does not really solve his problem of ambivalence. Perhaps it should just be assumed that
he is not expressing a preference, but merely remaining an objective observer, just describing states of
affairs.
3. Methodology and the original research findings.
This section very briefly describes the methodology of the original study (which will be reapplied to the
HRD/CSR question) and the findings from the original study. The case study, concerning a successful
SME (Small and Medium Enterprise) pharmaceutical company, was one of three undertaken as part of a
PhD on knowledge management and organisational learning (Laurence, 2006). The data was gathered
between November 2003 and August 2004. Twenty-four interviews took place in the company. The
overall research method used is shown in Table 1 below. It will require a little explanation as it uses some
technical terms from activity theory. In particular Analysis of activity: (i) object – historical, (ii) theory –
historical, (iii) actual – empirical. These three types of analysis identify the features of the activity system
in terms of the history of its process, the history of the ideas and models that support it and its actual
current configuration respectively. These three types of data were collected via semi structured interviews
and from secondary documentary data during steps 1 and 2 of the process. During steps 2 and 3 activity
models were created to identify the nature of the six elements of an activity system (see Figure 1)
together with the outcomes. Step 3 ends with the search for contradictions between the six element s of
the activity system or contradictions with other activity systems in the external environment. Steps 4 to 6
involve sensemaking in the light of activity theory and other relevant theory. In the original research this
other theory was organisational learning theory (Argyris and Schön, 1978, 1996). In the case of this
current research it will be the sociological theories of Tönnies (2002[1887). Steps 7 – 9 consist of the
detailed analysis and interpretation of the data and finally step 10 draws conclusions and develops any
new or extended theory and the development of new constructs. One of the key results from the original
research was that the pharmaceutical company was an example of a learning organisation and that this
had several important implications for the successful implementation of a knowledge management
initiative. The details need not be discussed in detail here, but the PhD was successfully completed. The
methods and data will therefore be re-utilised for this new question, which is: “Can activity theory and
Tönnies’ theories, explain the exemplary level of HRD and CSR in an atypical SME.”
The original research had certain limitations. This was the first time activity theory was used
methodologically in the way described above. This meant it was difficult to ascertain if its successful
application indicated the robustness of the method or was merely the result of favourable circumstances.
Activity theory is a very good method but is focused on collective action, so can be seen as limited when
looking at individual behaviour. The use of the additional method (action science in this case)
supplemented and enriched the analysis as it deals with both individual and group learning. This issue
does not arise in the current research.
Table 1 Research process table (from Laurence 2006).
Stage
Action
Output
DATA COLLECTION
1.
Phenomenology, Appraise the activity system (i)
delineation
holistically, gather initial (ii)
data,
by
observation, (iii)
conversation, interviews and
documentary evidence.
2. Analysis of activity:
Further in depth interviewing (i)
to provide data to model (ii)
Object
- activity.
historical
Theory
- Identify relevant
activity
historical
systems and draw up
Actual
- models
using
activity
empirical
diagrams.
3.
Identify primary Seek evidence, in interview Description of contradictions,
contradictions/problem
and documentary data, if and double binds if any
contradictions
4.
Identify
Identify
salient
details
features
of KM project
of Description of KM project
KM project from interview
notes and documents
5.
Identify
Identify
levels:
current organisational
Evidence
learning
of level
habitual
fromlearning
data
I
levels and style: single-loop,
IIa
double-loop, expansive.
IIb
III
6.
Identify
Identify
levels:
required learning levels
Evidence
for success
of willingness
of project to
I, IIa, IIb, III
learn at individual and
organisational level
ANALYSIS
7.
Data Role
is analysed
of competing
to identify
groups identified
Competing groups identified.
the role of competing groups Description of their role in the
preventing or facilitating project/activity
change
8.
Data Role
is analysed
of professional
to identify
groupsSignificant
and individual agents
professional
the role of competing groups groups identified.
and
individual
agents Significant individual agents
preventing or facilitating identified
change
Description of their role in the
project/activity
Notes from observations and in
Documents
Overall impression of activity s
Activity diagrams
Historical perspective
9. Theory
building/modification,
explanation,
understanding
Preceding
analysis
is Tentative theory
reviewed against existing, additions/modifications
relevant
theory
and identified
discrepancies
and
agreements identified
The process of data gathering and analysis is carried out for each case
THEORY DEVELOPMENT AND CONCLUSIONS
10.
Cases
Final
are
Theory
compared
building/modification,
and Possibleexplanation,
new
understanding
insights,
similarities, differences and theoretical constructs and
added insights identified, theory modification identified.
then compared to existing
theory
4. Findings relating to CSR
4.1
Phenomenology, Delineation
The original research was conducted at a pharmaceuticals packaging company between November 2003
and July 2004. It included interviews with a range of staff and the collection of secondary documentary
evidence and established that the company was a good example of a learning organisation (Argyris and
Schön, 1978, 1996, Senge, 1990). This data will be re-evaluated to analyse the HRD and CSR regime at
the company. The company is located in a very rural location. The receptionist, for example was part
time because her main job was as a shepherd. The company has made great efforts to engage with the
local community, showing good corporate citizenship to this set of stakeholders. A company cricket team
had been set up to play locally. Furthermore there is a bursary scheme to sponsor local students at
university (local newspaper, March 14th 2002). Whilst the majority of staff live locally the company also
attracts staff from neighbouring areas and some are bussed in from as far as twenty miles away
(Production Worker, 26/3/2004). The company’s main activity is packaging for the pharmaceutical
industry. It mainly packages pills in bottles and blister packs, but also provides specialist packs for clinical
trials. In addition, it has a special grade of staff called a “Qualified Person” or QP (in the UK
pharmaceutical industry these are individuals qualified to supervise and authorise the introduction of new
medicines). At the time of the original study the company had recently built a lab for carrying out shelf life
tests for its customers. The company had experienced major growth previous to the study and was about
to open a new operating unit employing an additional 100 employees.
The physical tools used were packaging machines, for the operators, lab equipment for the chemists, and
PCs and Office software for the Sales and Accounts staff. Both production and logistics staff used the
ERP system. The physical objects processed by the activity system were pills and packaging. The
objective of the activity system however, was to promote trust and confidence in customers and provide
an excellent service to customers, based on experience (i.e. their knowledge of customer requirements
and “know-how” in packaging). A diagram of the activity system at the company is show below in Figure
2.
4.2
Analysis of Activity
Object historical analysis
The company was founded in the 1970s with 6 employees. The present owner (and Chairman)
purchased it in the mid 1980s and provided some needed investment. It was still a private company
at the time of the study (but has subsequently been purchased by a large multinational corporation).
At the time of the study the company had 235 employees and was expecting to take on another 100,
to work in a new production unit. The foundations of its excellent CSR may have been founded on its
embeddedness in the local community. People in the company were from a wider area, but the core
workforce was local (with many long-term employees). There were also many instances of members
of the same family working there and the company maintained strong links with the local community.
There was an active social club and involvement in local events. As mentioned previously, bursaries
for local students to attend university were being provided by the company (Local newspaper,
14/3/2002) illustrating a very developed commitment to the local community. These facts illustrate the
first set of evidence for its excellent CSR through a high level of engagement with the local community
(key stakeholders).
Theory – historical analysis
Another group of key stakeholders, customers were also served excellently.
The company exists in a competitive market place. The core service it provided could be seen as an
outsourced commodity. As a result, competition could be based either on price or service (Mathur,
1987) However, the company had decided that providing excellent service to its customers (another
key stakeholder group) through its expertise was the most appropriate strategy “We are in the
business of selling confidence to customers. Our business is the intellectual property, which
surrounds the process [of packaging]” (CEO interview, 27/11/2003). Knowledge of customer
requirements was also very significant, particularly in the Japanese market, where the company had
recently won business. Information for customers was also critical and customer quotes had to be
turned around in 48 hours (same interview).
The evidence for excellent HRD is illustrated through another set of stakeholders, employees. The
company had achieved the Investors in People certification. There was also a strong commitment to
training and development of employees. Operators are encouraged to work toward NVQ level 1
qualifications and the aim is to get 95% of the operators qualified (Training and Standards
Development Manager, 15/4/2004). Many members of staff were already qualified to doctoral level,
but there was a strong commitment to training for other staff “we must have a trained workforce. We
cannot afford to make mistakes” (Training Manager15/4/2004). There was also a thriving social club
with frequent events (Warehouse Assistant, 26/3/2004). There was also an in-house magazine
(Production Operator, 26/3/2004).
Actual – Empirical Analysis
Possibly the most impressive aspect of social responsibility and human resource development at the
company was how the management of the company implemented its value system. The activity
system at this company was a highly unified one. Whilst the company had sales, accounts and
technical staff and shop floor workers, the most striking feature of activity in the company was the
unanimity of purpose demonstrated by the different groups forming the subject of the activity. This
remarkable unity may stem from the interdependence of the organisation, its local community and the
paternalistic management of the organisation. There was a strong unified culture “You need the right
cultural values. In key positions you need people who will bring the company together” (Training
Manager, 15/4/2004). The Sales Director, when asked, “What is the core philosophy of the
company?” answered “Feeding 230 lives” (19/12/2003). This statement was quite unprecedented in
the author’s experience. The company was not characterised by internal politics or industrial unrest
and the atmosphere was friendly and relaxed. The IT Project Manager stated “You hear a lot of
laughter around here” and “Everyone is excited about working here.” (26/3/2004). Members of the
same family would often all work for the company and many had worked there long term (Operations
Manager, 19/3/2004). There is also a mentoring systems (Finance Director, 19/3/2004) and a
commitment to reducing staff turnover (Personnel Manager, 19/3/2004.
The activity in the company was highly rule bound. The following list represents just the some of the
regulations and rules that company operatives have to follow.







GMP (Good Manufacturing Practice)
MHRA (Medicines and Health Regulatory Agency) - Annex 13
SOPs (Standard Operating Procedures)
BPRs (Batch Packaging Regulations)
“Methods” [project specific instructions]
ISO 9000:2000
ISO 14001
The work of the operators in the packaging plant is also highly exacting, but at the same time
monotonous. Special clothing and work in dust free cubicles makes it even more demanding. There
are physical barriers segregating the work areas, operators wear goggles and gowns, and are not
allowed to talk to each other whilst on the line. “It is like being in a ‘goldfish bowl’ for six hours a day”
(Sales Director, 19/12/2003). This does not seem to result in workforce dissatisfaction. Instead they
seem to take particular pride in their ability to do the exacting work. The division of labour is highly
hierarchical, operators have three rates of pay, basic, basic plus extra for passing NVQs, basis plus
shift allowance. A cell of workers has a “Line Leader” above him/her, who reports to a Supervisor who
reports to a Unit Manager. There are also sales staff and quality controllers as well as the senior
management and QPs (Qualified Persons). There are two relatively separate career tracks, factory
based and office based. The high number of intermediate grades (6 above line operator) may have
the advantage of enabling incremental promotions and a feeling of career progression. There is no
trade union but instead a works council with rotating leadership. There is an open book approach to
pay whereby the management makes sales, profit and loss figures available to the workforce and the
Finance Director bases pay rates on this. There is a profit sharing scheme and company pension
scheme as well as the previously mentioned sports and social club. They have also achieved the
“Investors in People” accreditation.
Tools
Packaging machines
Laboratory equipment
PCs
ERP System
Subject
Company
Staff
workers
Object Packaging,
Packaging knowledge, customer
confidence.
Clinical trials
Release of drugs (QP work)
Objective
Profit for shareholders
“Feeding 230 lives”
Serving customers
OUTCOMES
Rapidly growing business
Thriving community
Satisfied workforce
Rules
Health and manufacturing procedures
ISO 9000:2000
ISO 14001
Community
Workers
Customers
Local
community
Division of Labour
Highly hierarchical
Figure 2 Pharmaceutical company activity system (based on Engeström, 1987)
The foregoing analysis paints the picture of an activity system in which the subject is a highly unified
workforce with a highly technical object (packaging clinical trials specialist support and release of
drugs) but also, more significantly, packaging expertise , knowledge and customer confidence, with a
dual objective of serving customers excellently but also “feeding 230 lives” (Sales Manager,
19/12/2003). The production process is mediated by sophisticated tools, language and processes.
Most interestingly for this research, within a regime of very exacting rules, highly developed division of
labour and repetitive and demanding work, there is a very well developed community with high levels
of CSR (serving the local community, ISO 14001, Investors in People) and HRD (commitment to:
training and education, reduced staff turnover, and mentoring). The culture of the community is
characterised by openness and trust (open book accounting and rewards system, and staff
association rather than a union). This very unusual combination for an SME (Small and Medium
Enterprise) has led to rapid expansion based on market success.
4.3
Identify Primary Contradictions/Problems
The primary contradiction was the limitations caused by the small size of the Company (235 staff) and
its growth strategy, which was being achieved rapidly. A new production unit would employ 100 more
staff. This represented a 43% increase in size. The company had also gained new business from
Japan. This also involved workers learning new standards of production. The contradiction or problem
to solve was how to maintain the excellent stakeholder relations, through the CSR features described
above and grow at the same time. Employees were already noticing strains resulting from this
increasing demand, (Materials Manager, 19/3/2004). The new employees needed to be inducted into
the culture of the company. At the same time the company would have to manage a workforce
growing in numbers and handling an increasing turnover of work. The environment within the industry
was also one of rapid change with new legislation being introduced internationally, at an accelerating
rate. There was a strong pressure to grow and adapt. This was the basis of the “need state”
(Engeström, 1987) driving change and the desire to maintain its excellent service to its stakeholders
through its highly developed CSR and HRD practices.
There was a more subtle contradiction between the prevailing culture, (HRD practices and CSR) and
that of the global industry in which it operates. Whilst none of the elements described in the above
summary of findings above is unique, the combination of all of them in a single SME, operating in a
high technology, highly competitive, global commodity service environment is unusual. This combined
with a stated aim of “feeding 230 lives” from a senior manager (Sales Manager, 19/12/2003) gives
rise to an apparent contradiction between the company and its industry environment. This is
illustrated in Figure 3 below.
The “lightning” symbols represent the contradiction between the prevailing industry level values and
practices and those of the case company. Specifically the objective in the industry is primarily profit
and growth, which applies to the case company too, but the case company also seeks to support and
develop the workforce and its community as a key objective. Similarly the contradiction between the
respective communities and their cultural values is also marked with the industry in general seeking
efficiency globally and the case company seeking high levels of CSR, human resource development
and cohesion. However, it should be pointed out that from a CSR perspective that all companies in
the industry need to meet high legal standards to stay in business.
Tools
Packaging
technology
Case Company
Company
Object Packaging,
Packaging knowledge, customer
confidence.
Objective
Profit for shareholders
“Feeding 230 lives”
Serving customers
Subject
Staff
OUTCOMES
Rapidly growing
business
Thriving community
Satisfied workforce
Rules
Strict
rules
Community
Workers
Customer
Local
community
Tools
Packaging technology
Global Pharmaceutical
Packing Industry
Division of Labour
Highly hierarchical
Object
Subject
Staff
Packaging,
Objective
Profit for Shareholders
OUTCOMES
Efficiency
Growth
Consolidation
Rules
Strict
rules
Figure
3
Contradictions
between
community
culture
Community
Inexpensive labour
in
case
company
and
Division of Labour
Highly hierarchical
the
industry
(after
Engeström,
1987)
The dilemma faced by the case company from the activity theory analysis is as follows. The unique
CSR practise, human resource development practices and culture have been major contributors to its
success. These practices seem to be at odds with the relentless competition and drive for efficiency in
the industry as a whole. The question they need to answer is whether they can continue in their
present mode of operation and resolve the contradiction related to the need for investment to support
growth and still maintain their unique culture. From an academic perspective it is also of interest to
understand how the unique culture arose and whether it can continue to exist in the face of these
contradictions. Activity theory would suggest that where contradictions exist change is likely to result.
This change could be either detrimental or beneficial (“expansive” to use Engeström’s term), where
the scope of activity is widened).
4.4
Application of Tönnies’ concepts
It is at this point that the theories of Tönnies can be applied to provide the basis for answering the
sociological question posed above and also to answer the dilemma facing the company. The linkage
to the activity model is via the contradictions identified in Figure 3, especially the community and its
culture, which are the drivers of its unique version of CSR and staff development. The culture has
many things in common with Tönnies’ Gemeinschaft society. There is almost a family feeling in the
company and the management are at the very least paternalistic. Although the company is profitable,
its objective is also “to feed 230 lives”. The HR practises are about developing the community both
within the company (through education and training) and also the surrounding area (through CSR and
engagement with the local population). This is in marked contrast to the Gesellschaft predominating
in the wider industry. The question arises as to how this could have come about and if it confers
competitive advantage. The company has experienced rapid growth and is expanding. It has satisfied
and hard working staff. It is clear that its HR practices and engagement with its community has paid
off and therefore does indeed give competitive advantage in terms of productivity, quality and
motivation. It is therefore worth preserving this reversion to an earlier type of community relationship.
Regarding its origin (the “germ cell” to use an activity theory term) is perhaps a result of the
confluence of several influences. The location of the company in a relatively isolated rural area, the
craft-like specialism of the activity (especially the QP work) and the ritualised clothing and
environment of the packaging laboratories may all have had an effect. The character and values of
the CEO and some key members of his team also seems to have been a strong influence. This partly
serendipitous coming together has resulted in a regression (if that is the right word for something so
successful) to an earlier form of community and has resulted, paradoxically, in levels of HRD and
CSR many modern firms would envy. It is possible that the atomistic, ruthlessly competitive and
instrumental values of Gesellschaft are not the only way to achieve success in the 21st Century.
As the original study was carried out in the past, this current work is partly longitudinal in nature. The
author has had the advantage of seeing what happened subsequently. The management at the
company did not wish fresh interviews to take place as they felt they could not spare the staff time.
However, they gave permission for this paper to be developed based on the original data plus public
domain material currently available. The main development to date, is that shortly after the original
study the company was taken over by a multi-national pharmaceutical company. The management
team is still in place and the training regime is even stronger including an award for CPD (Continuing
Professional Development) and accreditation to award NVQ level 2 qualifications for packaging staff
(Company Website, 18/3/2011). The company has introduced a lean Six Sigma continuous
improvement programme throughout its manufacturing facilities. The activity of the company has
expanded to include specialist storage facilities’ for customers (Company Website, 20/3/2011). .
Research in the archives of the local press suggests a possible diminution of engagement with the
community as there are no stories about this currently, whereas there were such stories at the time of
the original research. It is perhaps still too early to tell.
5. Theory Development and Conclusions
5.1 Main findings
In answer to the question: “Can activity theory and Tönnies’ theories, explain the exemplary level of
HRD and CSR in an atypical SME.” it can be concluded that they have shed some light on the issue.
Activity theory identified some unique features which differentiated the case company from the
industry in general. These features resulted in highly developed HRD and CSR practices. It also
identified two contradictions which suggested that change would result. As suggested earlier, this
change could be either detrimental or beneficial (“expansive” to use Engeström’s term), where the
scope of activity is widened). The actual result was the take-over of the firm by a large multi-national
pharmaceutical company. Interestingly this was both “expansive” (beneficial in terms of activity
theory) in that the scope and size of the operation increased, and its HRD activity was even
enhanced, but there was an emerging threat to its Gemeinschaft culture which appears fragile
through the introduction of modern efficiency techniques such as lean Six Sigma. Being part of a
global corporation also suggests that the company will become more externally focused away from its
locality and the local social system.
The application of Tönnies’ concepts helped to understand the relationships which supported the
excellent HRD and CSR practices in the company. It is felt that the exercise of combining activity
theory with Tönnies’ sociology to a new business context has been fruitful. Whilst this has been a
somewhat exploratory piece of research, it is felt that further work in this vein would be beneficial.
5.2 Implications for practice
The main implication of this research for practice is that the essential features of a Gemeinschaft are
possibly the best soil in which to root exemplary HRD and CSR practices. The reason being that the
cooperative nature of this type of culture, its sense of belonging and common good and the setting
aside of the of the Kürwille (rational will) for the Wesenwille (natural will) has specific benefits for HRD
and CSR practice. That is not to say that the everyday running of the business does away with
rational will. On the contrary, the case has shown that good business practice based on rationality
and science can exist alongside this natural will. The final observation is that Gemeinschaft can be
the victim of its own success and is a fleeting and fragile occurrence in modern business.
There is now an opportunity for these ideas to be pursued further and for them to be deployed by
personnel professionals, now that their potential effectiveness has been demonstrated.
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