Czarniawska-Joerges here presents the first systematic study of
how organizational control processes and economic decline are
related. As the author notes in her introduction, the typical
organizational response to economic stress is a tightening of
control--efforts to cut expenses, lay off employees, prescribe
budgetary constraints, and more. But, she argues, such a reaction
may not be the most beneficial in returning the organization to
economic health. In developing a model for the behavior of
organizations in economic decline, the author presents several
detailed explanatory case studies representing different types of
organizations and different reactions to their respective problems.
Students of organizational behavior will find here important new
insights into the dynamics of organizational control in the face of
economic decline.
The author begins by proposing a model for control cycle
responses to decline. The bulk of the volume is devoted to a
sustained evaluation of the model through the use of the four case
studies. The first examines the Polish economy between 1971-81 as a
centrally planned and rigidly structured economic organization
reacting in an authoritative way to economic threats. Subsequent
chapters analyze a multinational chemical corporation attempting an
extreme degree of corporate control, the Swedish National Board of
Education's attempt to restructure dramatically, and an American
electronics firm which effectively loosened control at a critical
juncture. The final chapter offers a synthesis of the preceding
material and draws conclusions regarding the most effective ways in
which organizations can respond to externally induced or internally
generated economic stress.
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