Home Organizational Psychology Leadership Leading into the Future V: Transition in Organizational Forms and Roles

Leading into the Future V: Transition in Organizational Forms and Roles

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Intentions and Boundaries

The premodern organization typically has tacitly held boundaries (particularly between work and family life) as well as tacitly held intentions. This doesn’t mean that boundaries and intentions are unimportant; rather the intentions and boundaries are taken for granted and rarely discussed. There was little need for an explicit definition of organizational intentions since family members primarily performed the work of the premodern organization. Furthermore, their intentions focused almost exclusively on the provision of sufficient nutrition and shelter. Furthermore, even among those working in the trades, a formal statement of intentions was unnecessary since the product spoke for itself. A system of bartering and exchange of goods and services (for example, the farmer’s market) eliminated the need for any substantial monetary system.

In the modern era, boundaries are quite clear, while statements of intention have tended to remain rather unclear or inconsistent. In modern organizations, clear distinctions are made between the places where employees work and where they live, relax, and worship. We know when we are entering and leaving a modern organization and often define this organization by its sheer existence rather than with regard to its specific intentions. Thus, in the modern era, large organizations can buy up other organizations with relatively little regard for the compatibility of organizational intentions and can diversify their enterprises primarily with regard to monetary or market gain, rather than with regard to some founding purpose or cause. In many cases, the mergers and acquisitions have resulted in impressive short-term financial gain and even in the rebirth of organizations that have been poorly managed or become stagnant. Longer-term consequences, however, have often been much less positive or even destructive to both organizations.

Frequently, the absent of a clear statement of intentions in modern organizations has been hidden behind the facade of fiscal accountability. The organization exists to produce a profit for the owner or the shareholders. Such a statement of intentions in the modern world heightens confusion or inconsistency in the identification and maintenance of long-term goals and sustaining values. While profits are often essential to the existence of a modern organization, they should not be the reason for its existence. Furthermore, profits rarely provide sufficient guidance to steer the leaders of modern organizations through the increasingly turbulent waters of our emerging postmodern world.

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