Management as a Liberal Art Research Institute

The Experience of Working at A Company Without Flow

Byron Ramirez, Ph.D.

PUBLISHED:

April 8, 2022

Throughout my career, I’ve been fortunate to work in several great organizations. I’ve had great managers who have shared their wisdom and taught me important skills. However, there was one organization where things were different – It was a reputable organization where top-down management reigned and where power was abused to keep employees from questioning decisions. Ultimately, this organization struggled to achieve what renowned psychologist, Dr. Mihaly Robert Csikszentmihalyi, would call ‘flow’.


According to Csikszentmihalyi, ‘flow’ is a state of consciousness where people experience deep enjoyment, creativity, and a total involvement in an activity where nothing else seems to matter. Csikszentmihalyi argued that organizations could foster an environment conducive to a positive state of flow where individuals could enjoy their work, become highly engaged, and therefore, become more productive and committed to the organization’s mission.


Yet, this particular organization ignored the importance of fostering an environment where people could find enjoyment and engagement. Instead, upper management made decisions without promoting dialogue and discussion. We felt as if a decision had already been made prior to the meeting, and we simply needed to agree with upper management when the idea was presented. Over time, people became increasingly silent in meetings. Managers became more impatient with those few who would ask a question. Ultimately, the fear of being publicly shamed, ridiculed, or verbally insulted by management led to ‘groupthink’. Originally coined by psychologist, Irving Janis, ‘groupthink’ is the process in which a team conforms to a leader’s opinion and has little tolerance for divergent opinions.


In this organization, upper management moved forward with its decisions, and hired people who followed along and agreed with the prevailing views of upper management. As upper management continued to develop the strategic plan, they did not realize that they were missing key data and viewpoints. Rather, upper management relied on their assumptions and their own perceptions, rather than seeking to gather evidence and challenging opinions. Hence, their decisions became quite often inundated with incongruities, which resulted in flawed decision processes and poor performance.


As the weeks transpired, three key indicators began to signal that the organization was in trouble. The employee turnover rate increased. Sales decreased. And customer retention decreased. To make matters worse, employee morale dropped. Although the data revealed that something was amiss, upper management decided to keep course and maintain processes as they were. Over time, remaining employees grew afraid of losing their jobs.


The organization was inundated with opinion conformity. This prevented employees from ever learning and developing critical thinking skills. Upper management began to argue that the company was experiencing “temporary” challenges which were caused by market and economic forces. However, interestingly, while this organization was declining, competitors were experiencing growth and increasing sales. Ultimately, the organization became saturated with inflexibility and risk aversion. Several employees (including me) left the organization dissatisfied with the culture and frustrated about not being able to grow and contribute.


The organization relied on the wisdom and experience of its upper management, but did not realize that the environment around them kept changing, and hence they should be flexible and open to new ideas. The organization failed to appreciate its employees and the ideas they could have contributed. Instead of encouraging employees to speak up and share, they shut them down. Upper management should have focused on building people, motivating them to contribute, and allowing them to become engaged with the mission. Employees should have been encouraged to build on their skills and use divergent thinking in decision-making. Encouraging the establishment of an innovative and creative environment can yield substantially powerful and transformational effects on any organization, while providing individuals with high-challenge, high-skill situations that will increase flow and performance.


References:

Csikszentmihalyi, Mihaly. Flow: The psychology of optimal experience. New York: Harper & Row, 1990.

Janis, Irving L. "Groupthink and group dynamics: A social psychological analysis of defective policy decisions." Policy Studies Journal 2.1 (1973): 19.


By Karen Linkletter Ph.D. January 6, 2025
On December 13, 2024, we lost a seminal management philosopher and theorist: Charles Handy. Like Peter Drucker, Handy was a social thinker and management theorist who emphasized the human side of work as more important than profits and valued individual growth and development in organizations. Handy was born in Ireland and studied at Oxford. In 1956, he went to work for Shell, working in Borneo, where he met his future wife, Elizabeth Hill. Disillusioned by corporate life, Handy left Shell in 1962 to study management at MIT in their executive program. Inspired by their humanistic approach, he returned to London in 1967 to start the London Business School. Handy knew Drucker and was a regular keynote speaker at the Global Drucker Forum in Vienna. The two men had much in common in terms of their approaches to management and social theory. Like Drucker, Handy became an author (although, unlike Drucker, Handy was a corporate executive before he turned to writing). Handy wrote not just on business but also society, serving as much as a social ecologist as Drucker was. In his pivotal book, The Age of Unreason (1989), Handy argued for the disruption of discontinuity – resulting in a new world of business, education, and work that was highly unpredictable. He rejected shareholder capitalism and saw the organization as a place for human purpose and fulfillment, based on trust. Like Drucker, Handy advocated federalism in organizations, disseminating authority and responsibility to the lowest possible levels. He also saw “the future that had already happened.” Handy coined the term “portfolio life,” where knowledge workers would increasingly work remotely and for multiple organizations. In the 1980s, he posited that society consisted of “shamrock organizations”: those that had three integrated leaves: full-time employees, outside contractors, and temporary workers. Handy thus foresaw the new “gig economy” and increasingly autonomy of knowledge work. Finally, like Drucker, Handy had a life partner who not only supported his career but was an independent woman with her own interests. Liz Handy, like Doris Drucker, was an entrepreneur who ran an interior design business, and later was a professional photographer and Charles’s business agent.  Minglo Shao, founder of CIAM, remembers Handy as a warm man who made several important contributions to what we see as the fundamentals of Management as a Liberal Art. We are thankful for Handy’s contributions to management theory and social thought, and for his legacy at the Global Drucker Forum in the form of the Charles and Elizabeth Handy Lecture Series.
By Richard and Ilse Straub with the Drucker Forum Team December 29, 2024
For 15 years, Charles Handy did us the enormous honor of choosing the Drucker Forum as a privileged platform for delivering his message to the world, and particularly to the younger generation in which he had such faith. Following up on our initial announcement of Charles’ passing Charles Handy (1932–2024) , we are honored to share a selection of his key contributions to the Forum with our wider community. Charles’ brilliant keynotes at the Drucker Forum have become legendary. Normally accessible only to members of the Drucker Society, from today they are available as recordings to the wider public for a period of 30 days. At the first centennial Forum in 2009, Charles talked about his debt to Peter Drucker while outlining his own fundamental management concepts that he had developed over the years. Two years later, he touched on the ideas of Adam Smith and demonstrated how much more to them there was than the celebrated “invisible hand” of self-interest. In his landmark closing address in 2017, pursuing a thread developed in his 2015 book The Second Curve, he called for a management reformation that would turn it into a tool for the common good – thus drawing the first contours of what we would announce six years later as the Next Management . We took to heart his exhortation not to wait for great leaders but “to start small fires in the darkness, until they spread and the whole world is alight with a better vision of what we could do with our businesses”. Management’s "second curve" will be the focus of the “Charles and Elizabeth Handy Lecture Series” in 2025. Following the loss of his beloved wife Elizabeth in 2018 and a severe stroke, Charles was much reduced in mobility in his last years – but not in his determination to continue spreading his message of hope to the world. He couldn’t participate in person in the Drucker Forum 2022, but he participated in a moving online interview with his son Scott, who directed young actors in a short performance of Beckett’s Waiting for Godot by Beckett to illustrate some points.  Charles also contributed valued digital articles for our blog and for Drucker Forum partners. Even during the most difficult period of his life he continued to write and develop his ideas in weekly columns for the Idler magazine. This entailed first memorizing the article, then dictating it and finally reviewing it by having someone it re-read to him – a remarkable feat of memory and determination. The article is a jewel and most appropriate for Christmas and the season of self-reflection. Have a wonderful Christmas, happy holidays and a healthy and prosperous New Year.
By Karen Linkletter Ph.D. November 19, 2024
Interview with Karen Linkletter at the 16th Global Peter Drucker Forum 2024  Video Interview
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