The vested interests in organizational stupidity

Supposedly we Americans live in a “knowledge economy,” in which the source of wealth is neither financial capital, physical plants or natural resources, but the knowledge, expertise and intelligence of individual human beings.   We have a whole industry called “information technology.”

But although employers require ever-higher levels of academic credentials, this is not reflected in the work itself.   College graduates wind up doing work that high school graduates once did, and high school graduates do work that school dropouts once did.

In the early 20th century, businesses adopted a practice called Taylorism—resolving factory work into the simplest, most basic, mindless human motions.  Now we have McDonaldization—resolving service work into the following of simple checklists.

Mats Alvesson and Andre Spicer, in their 2016 book, THE STUPIDITY PARADOX: The Power and Pitfalls of Functional Stupidity at Work, attribute this to the tendency of organizations to suppress critical thinking because of their need for obedience to orders and smooth internal functioning.

What they write is true as far as it goes, but organizational stupidity is more than a simple mistake in setting priorities.   Organizational stupidity is maintained by powerful vested interests.

Knowledge Is Power

Knowledge is power.  If I am a supervisor and my subordinate is more knowledgeable and competent than I am, that diminishes my power.   What college graduate, fresh out of business school, wants to be contradicted by some grouchy old skilled craftsman, who has less schooling but may know more than he does?

Harry Braverman, in Labor and Monopoly Power and David Noble, in America by Design and Forces of Production, described the de-skilling of the American work force and the development of technologies devoted to increasing command and control by management rather than increasing productivity as such.

The more knowledgeable and skilled a worker is, the more power the worker has in relation to the employer, both as an individual and as a member of a labor union.   So knowledge and skills aren’t necessarily wanted except where they are indispensable.

A friend of mine who went back to school in mid-life to get an advanced degree in his specialty discovered that employers did not want his new skills.  What they wanted, he said, was “a jack of all trades who would work cheap.”   Employers see more benefit in having replaceable workers than in having  productive workers.

The theory and practice of functional stupidity

You need to be remarkably intelligent to be functionally stupid.
==Mats Alvesson & André Spicer, The Stupidity Paradox

A higher percentage of Americans than ever before have advanced college degrees.  I.Q. test scores are higher in every generation, a phenomenon called the Flynn Effect.   Information technology is a major industry, and we talk about our “knowledge economy.”

So why do corporations and other big organizations do so many stupid things?

Two management experts, Mats Alvesson and André Spicer, say that the explanation is what they call “functional stupidity”—which is “the inability and /or unwillingness to use cognitive and reflexive capability in anything other than narrow or circumspect ways.”

No big organization could function efficiently if everybody in it thought critically and independently about everything they did.    The whole point of hierarchy is to enable obedience to orders on a large scale..

In a hierarchy, employees have to teach themselves to focus on their own jobs and not worry about the big picture.   Otherwise the organization wouldn’t function smoothly.

Functional stupidity reduces conflict, soothes anxiety, improves morale and increases self-esteem.   The problem is when the organization is blind-sided by reality.

The philosopher John Dewey said that all human action is the result of impulse, habit or reasoning.   It is not humanly possible to reason out every single aspect of life, according to Dewey.   We turn to reason  when our habitual ways of acting or thinking fail us.   Why do people in big organizations so often fail to turn to reason before it is too late?

In their 2016 book, THE STUPIDITY PARADOX: The Power and Pitfalls of Functional Stupidity at Work, Mats Alvesson and André Spicer identify five categories of functional stupidity.

Leadership-Induced Stupidity

 In contemporary organizations, it’s thought that the duty of an executive is not only to manage, but to inspire.   Leaders are supposed to be “change agents.”  But change can be either good or bad, depending on circumstances.  Adolf Hitler, after all, was a transformational leader.

Executives can waste their time engaging in what they think is inspirational leadership to the detriment of their tasks as managers— budgeting, assigning work, quality control, employee evaluation and so on.   Most employees, according to Alvesson and Spicer, don’t want leadership.  They just want to be left alone to do their jobs.

The stupidity theory of organizations

This was originally posted on April 30, 2013.

Stupidity in big organizations is not a bug. It’s a feature. So say two scholars, Mats Alvesson of Lund University in Sweden and Andre Spicer of City University in England, in their recent paper, The Stupidity Factor in Organizations.

They say organizations need “functional stupidity,” which is a willful lack of recognition of the incompleteness of knowledge and a willful refusal to question the organization’s goals and policies. This builds confidence and loyalty which helps the organization to function smoothly.

Alvesson and Spicer discuss how managers use vision statements, motivational meetings and corporate culture as “stupidity management” to develop loyalty and suppress critical thinking. They discuss how employees use “stupidity self-management” to suppress doubt and get with the program.

In Herman Wouk’s novel, The Caine Mutiny, a recruit decides that the U.S. Navy is an organization designed by geniuses to be operated by idiots. When in doubt, he asks himself, “What would I do if I were a idiot?” That is a gross exaggeration, but an exaggeration of truth.

Managers want employees who are intelligent enough to carry out orders competently, but not so intelligent that they question the orders. Critical thinking creates friction that prevents the organization from running smoothly. Over time the organization’s tendency is eliminate that friction, and become more disconnected from reality.

You can see this in how Washington officials and journalists understand public policy. They treat the processes of government, such as the 60-vote rule in the Senate or the revolving door between corporate and government employment, as if they were objective and unchangeable facts, like the laws of thermodynamics. They treat actual problems, such as unemployment or global climate change, as if they were matters of personal preference.

The trouble with ignoring reality is that sooner or later it catches up with you. Then crisis generates what Alvesson and Spicer call the “How could I have been so stupid?” syndrome.

Click on A Stupidity Based Theory of Organizations for a PDF of Alvesson’s and Spicer’s paper. If you read it with close attention, I think you will see the dry humor beneath their social science jargon.

Click on Understanding Organizational Stupidity for Dmitry Orlov’s summary of their paper and his comments.

The stupidity theory of organizations

Stupidity in big organizations is not a bug.  It’s a feature.   So say two scholars, Mats Alvesson of Lund University in Sweden and Andre Spicer of City University in England, in their recent paper, The Stupidity Factor in Organizations.

They say organizations need “functional stupidity,” which is a willful lack of recognition of the incompleteness of knowledge and a willful refusal to question the organization’s goals and policies.  This builds confidence and loyalty which helps the organization to function smoothly.

Alvesson and Spicer discuss how managers use vision statements, motivational meetings and corporate culture as “stupidity management” to develop loyalty and suppress critical thinking.  They discuss how employees use “stupidity self-management” to suppress doubt and get with the program.

In Herman Wouk’s novel, The Caine Mutiny, a recruit decides that the U.S. Navy is an organization designed by geniuses to be operated by idiots.  When in doubt, he asks himself, “What would I do if I were a idiot?”   That is a gross exaggeration, but an exaggeration of truth.

Managers want employees who are intelligent enough to carry out orders competently, but not so intelligent that they question the orders.   Critical thinking creates friction that prevents the organization from running smoothly.  Over time the organization’s tendency is eliminate that friction, and become more disconnected from reality.

You can see this in how Washington officials and journalists understand politics.   They treat the processes of government, such as the 60-vote rule in the Senate or the revolving door between corporate and government employment, as if they were objective and unchangeable facts, like the laws of thermodynamics.  They treat actual problems, such as unemployment or global climate change, as if they were matters of personal preference.

The trouble with ignoring reality is that sooner or later it catches up with you.  Then crisis generates what Alvesson and Spicer call the “How could I have been so stupid?” syndrome.

Click on A Stupidity Based Theory of Organizations for a PDF of Alvesson’s and Spicer’s paper. If you read it with close attention, I think you will see the dry humor beneath their social science jargon.

Click on Understanding Organizational Stupidity for Dmitry Orlov’s summary of their paper and his comments.