B 325 Arab Open University Public Private Partnerships Proposal Paper

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Faculty of Business Studies Arab Open University Managing Across Organizational & Cultural Boundaries B325 Tutor Monitoring Assignment Fall 2021 Question B325 TMA – Fall 2021 –LY Page 1 TMA introduction Public sector is a significant part of the economy. It provides or should provide essential services such as electricity, education, healthcare, public transportation, etc. However, public administrations are considered as being inefficient compared to private administrations. They face many challenges such as inefficient management, lack of efficiency, delayed decisions, lack of innovation, excessive government control, mounting losses, political interference, under-utilization of capacity, difficulty blending multiple personalities into a cohesive and unified team, poor communication and feedback, etc. What you need to consider before you start your TMA Before starting your TMA, make sure to do your own research and ensure that the information needed for this TMA is available. This is very important since this TMA does not only rely on course material but on external resources that you will be choosing and referring to answer the question. QUESTION Choose from your local (Saudi Arabia) context ONE public administration that you see is struggling and draft a proposal for a public-private collaboration to help this administration overcome its challenges. The proposal needs to include a clear introduction of the chosen public administration and private company. It needs to clearly identify the bases for collaborative advantage, the main aims, and reflect on any challenges/episodes that this collaboration might face and how it can be overcome (word limit: 2000 words). B325 TMA – Fall 2021 –LY Page 2 Hint: in your proposal, you need to consider the following: - B325 relevant course material: bases for collaborative advantage, types of goals, too challenging goals, and different types of episodes. - Clearly define the chosen public administration, the challenges it is facing and why you consider there is a need for a collaboration. - Clearly identify the private organization that you propose to collaborate with the chosen public administration and what it can offer to improve based on such collaboration. - You may refer to other collaborations as a guidance but you must propose a totally new collaboration and not rely on previous ones already established. - YOUR ANSWER NEEDS TO BE BASED ON BOTH B325 COURSE MATERIAL AND CHOSEN PUBLIC ADMINISTRATION AND PRIVATE ORGANIZATION. RELYING ON ONE SOURCE ONLY IS NOT ENOUGH. - You have a plus or minus 10% with regard to word count. Guidance - Pay attention: do not to copy information as is whether from the course material or the case. You are to provide a discussion and demonstrate understanding of various concepts and not just list and describe. - YOU MUST REFER TO B325 COURSE MATERIAL AND TO EXTERNAL RESOURCES. External resources chosen public administration website, chosen private company, reports about similar collaborations, etc. - Remember to cite your sources in the text and to prepare a table of references at the end. - Referring to course material alone is not enough. Referring to external resources alone is not enough. You need to use the course material as the base to explore and explain the information in the chosen external resources. B325 TMA – Fall 2021 –LY Page 3 GENERAL INSTRUCTIONS FOR STUDENTS 1. Course material: - Chapters 1, 2, 3 and 7. 2. Format: Write your answers in essay format. Failing to do so could result in grade deduction from presentation marks up to 5 marks. You may, however, use bullet points, diagrams, tables, or any graphs to support your arguments. 3. Plagiarism: Write your answers using your own words. Plagiarism will be penalized depending on its severity and according to AOU plagiarism policy (Enclosed after these instructions you will find the Arab Open University Rules of Cheating and Plagiarism). 4. Word count: Answers are expected to be within +/- 10% of the word limit. Answers that fall below or above this range can lose up to 5 marks. 5. Referencing: Use Harvard referencing style for in-text citation and make a table of references at the end. Failing to do so could result grade deduction of referencing marks up to 5 marks. 6. Research: Use a minimum of two additional sources of information. It is strongly recommended that you use scholarly articles. You can lose up to 5 marks if you do not use at least two external sources. In addition, although text books assigned in the course may be used freely as references, you are required to use a minimum of 2 external sources. B325 TMA – Fall 2021 –LY Page 4 The Arab Open University Rules about Plagiarism The Arab Open University Definitions of cheating and plagiarism According to the Arab Open University By-laws, “The following acts represent studies of cheating and plagiarism: • Verbatim copying of printed material and submitting them as part of TMAs without proper academic acknowledgement and documentation. • Verbatim copying of material from the Internet, including tables and graphics. • Copying other students’ notes or reports. • Utilization of, or proceeding to utilize, contraband materials or devices in examinations.” Examples of Plagiarism Copying from a single or multiple sources, this is where the student uses one or more of the following as the basis for the whole, or a good part, of the assignment: 1. Published or unpublished books, studies or reports 2. The Internet 3. The media (e.g.TV programmes, radio programmes or newspaper studies) 4. An essay from an essay bank 5. A piece of work previously submitted by another student 6. Copying from a text which is about to be submitted for the same assignment B325 TMA – Fall 2021 –LY Page 5 What? Why? How? And Why Not? What is: 1- Collaboration or A World of Collaboration 2- Collaborative Advantage 3- Collaborative Inertia 4- Are the Common Basis of Collaborative Advantage? LY - Lebanon Branch - B325 2 A world in which it is possible to feel inspired No limit to your own resources and expertise Anything is possible through collaboration Purpose Shared vision via the development of a relationship and exchange of information LY - Lebanon Branch - B325 3  Collaborative Advantage is when collaboration between several bodies (industries, agencies, governmental bodies, etc.) allow to achieve efficiency, growth, progress, etc. reference their alliance.  For example, partnership between public organizations, and those with and between non-profit organizations, do tackle social issues that would otherwise fall between the gaps. LY - Lebanon Branch - B325 4  Collaborative Inertia is when a collaboration between two or more entities induce a slow progress without achieving any tangible outcome. Collaborative Advantage Collaborative Inertia  But why Collaborative Inertia is often found in practice rather than Collaborative Advantage?  What is the nature of Collaborative situations that makes them so prone to frustration? Managing Collaboration LY - Lebanon Branch - B325 5  Before explaining the bases of collaborative advantage as to explain at a second stage how to manage to collaborate, we need to emphasize the fact that the interest is that of collaboration (collaborative relationships) between organizations and not between individuals Two types of Collaboration : Promoted by the government (collaboration between public agencies, non-profit organizations) Collaborative relationships such as partnerships, alliances, joint ventures, networks of various sorts, collaborative forms of contracting and outsourcing, joint working, etc.  Examples: 1- Strategic Alliance between airlines and car manufacturing industry 2- Public – private partnerships especially at the level of social services 3- Industry networks between regional and national governments to promote wealth creation and mutual support LY - Lebanon Branch - B325 6 1- Access to Resources 2- Shared Risk 3- Efficiency 4- Coordination and Seamlessness 5- Learning 6- The Moral Imperative LY - Lebanon Branch - B325 7 1- Access to Resources: • Organizations often collaborate if they are unable to achieve their objectives with their own resources. • Collaboration with other organizations allows to bring together different resources including technology or expertise. LY - Lebanon Branch - B325 8 Example 1: Inter-Company collaboration over taking a product to the market ➔ One company provides the product and the other provides the access to the market . Example of types of industries that choose this type of collaboration: 1- Very small entrepreneurial businesses 2- Large companies such as pharmaceutical industry (where both activities – marketing and production are complex), 3- Companies seeking new markets in new geographical areas LY - Lebanon Branch - B325 9 Example 2: Collaborations involving organizations in the nonprofit and public sectors as to share resource, expertise, knowledge and connections. For instance, the police, legal professions, probation services, schools and neighborhood and youth groups collaborate over youth criminal justice issues. LY - Lebanon Branch - B325 10 2- Shared Risk: • Organizations collaborate because the consequences of failure on a project are too high for them to risk taking it on alone ➔ They share the risk • Example: Collaboration between cost-intensive research and development organizations LY - Lebanon Branch - B325 11 3- Efficiency: • Governments have often seen private organizations as being more efficient than public ones. The latter has promoted public-private partnerships (collaboration). • Four different perspectives on efficiency: • Efficiency stems from the notion of economies of scale • Efficiency related to outsourcing activities (example: companies may outsource support activities such as cleaning and catering to other companies who can gain economies of scale) • Operational efficiency: many purchasing and supply chain alliances are of this sort. Purchasing companies gain efficiencies by ensuring that the delivery of product is done on time and as per the agreed price. Supplying organizations gain efficiencies by having a relatively predictable market. • Coordination of services as to avoid duplication and thus ensure efficiency LY - Lebanon Branch - B325 12 3- Efficiency: Outsourcing Activities Economies of Scale Operational Efficiency Coordination LY - Lebanon Branch - B325 13 4- Coordination and Seamlessness: • As seen above, coordination is an important element to achieve efficiency. • Coordination is the act of organizing, making different people or things work together for a goal or effect to fulfill desired goals in an organization. Coordination is a managerial function in which different activities of the business are properly adjusted and interlinked. • Yet, coordination and seamlessness are not always inter-related: • Repetition (duplication of an activity) • Omission (leaving gaps in activity) • Divergence (diluting activity across a range of activities) • Counter production (pursuing conflicting activities) are pitfalls obstructing collaboration. LY - Lebanon Branch - B325 14 5- Learning: • Basis of collaboration ➔ pursue joint activities ➔ Mutual learning • Example: staff from automobile industry acting as trainers for their suppliers of components/parts LY - Lebanon Branch - B325 15 6- Moral Imperative: • The most important reason for being concerned in collaboration is a moral one. • Issues facing society (such as crime, drug, poverty, conflict, health promotion, economic development, etc.) cannot be achieved if the organization acts alone. • Collaboration is essential to alleviate any problems at the organization, industry, society and national levels. LY - Lebanon Branch - B325 16 WHY COLLABARTION IS ESSENTIAL? LY - Lebanon Branch - B325 17 Two reasons:  To protect territory against violation by others (for instance, large public agencies employ senior managers to:  take responsibility of their collaborative activity, and  manage a particular collaboration on behalf of the member organizations  To improve physical facilities or support infrastructure to address needs of the community LY - Lebanon Branch - B325 18 Goal Setting: A Five Step Approach to Behavior Change  How Goals are conceived?  Goals are conceived in general by individuals but also are conceptualized as belonging to the organization.  What is the role of organizations in this process?  Organizations are seen as mechanisms through which goals that are beyond the reach of individuals acting on their own can be practiced.  Inter-organizational collaboration provides as well mechanisms by which organizations seek collaborative advantage  Organizations, jointly, seek to achieve the aims that none of them could achieve on its own. Hence, the need for goals to be clear, compatible and agreed upon. LY - Lebanon Branch - B325 2  Examples of Superordinate Goal:  “I have a dream” – Martin Luther King;  “The just society” – Prime Minister of Canada, Pierre Trudeau;  Ask not what your country can do for you – ask what you can do for your country” – John F. Kennedy  “Learning through entertainment” – Walt Disney  What is a Superordinate Goal  A Superordinate goal is like a “slogan” to induce/encourage people, to translate a message to people  “A Superordinate goal captures “the heart”. It focuses mainly on affect; it appeals to emotion.  A Superordinate goal is a bottom-up goal. Bottom-Up goals are more powerful than TopDown goal since they are expressed in the language of the employees.  Three questions allow the development of Bottom-Up Superordinate goals:  Why do we exist as a unit?  Who should miss us if we are gone?  What is our primary source of discontent?  Check example on pp. 11-12 (Washington post). LY - Lebanon Branch - B325 3  What is goal setting?  Goal setting is a cognitive variable (i.e. based on understanding, knowledge, observation, reasoning), whereas Superordinate goal aims only to affect.  Goal setting is the manifestation of needs and values.  What is the purpose of goal setting?  The purpose of goal setting is to make the Superordinate goal concrete, to move it from emotional to concrete action steps.  To achieve that goal must be Specific, Measurable, Attainable, Relevant and have a Time-frame.  In other words, we need to have a SMART goal as to transfer a “Superordinate goal” into a “concrete goal”.  Example: Walt Disney  Superordinate goal: “Learning through entertainment”  SMART goal: Putting in place the Epcot center that allows people to be more knowledgeable and wiser after passing a day at the center than they were in the morning when they came.  (check pp. 12 for more examples) LY - Lebanon Branch - B325 4  Why Goals are important?  Goals are important because they provide people with:  a challenge  feelings of accomplishment when progress is made toward goal attainment  meaning to otherwise meaningless tasks  That is why goals need to be specific, clear and well set as to allow positive outcome and satisfaction (for instance; instead of saying to employees “do your best”, it is better to say “do what is required” and clearly specify tasks required)  Example: In the forest products industry, harvesting trees hour after hour can be tiring, monotonous work. When loggers set a specific high goal as to the number of trees each person would cut in a day and in a week, both attendance and performance increased significantly and people bragged about their accomplishments. LY - Lebanon Branch - B325 5  Goals are as well important because they can reduce the stress if they are in few numbers. They allow people to see the progress that they are doing in relation to the goals.  Goals remove the ambiguity (opposite of clarity) as to the criteria for which you and others will hold yourself responsible and accountable.  In order to achieve goals, there is a need to have a commitment. Without commitment there is no goal.  The empathy box allows to understand ways of gaining goal commitment (book pp. 13, 14, 15; optional reading). LY - Lebanon Branch - B325 6  As stated, commitment to Superordinate and SMART goals is a must.  Managers need to make sure that what they are saying is in line with the pre-set goals (Superordinate and SMART goals).  They need to pay extreme attention to the signals that they send unconsciously.  Leaders need to set learning goals to make people comfortable.  Informal channels are seen in general better than formal channel as to the achievement of goals (discussion with employees over coffee, at lunch, etc.). The managers can ask the employees about their opinion as regards the SMART goals set, if they are still applicable, what need to be changed, what actions are taken by the management and are hindering the goal achievement. LY - Lebanon Branch - B325 7  It is difficult to be an effective leader when you are inaccessible to the people who are on your team.  Leaders need to be accessible for two reasons:  Let people know what they are doing is noticed and appreciated with regard to goal attainment  To encourage opposition with the goals that are set. People in general have a tendency to commit to what they know is wrong (Groupthink). People need to say their honest opinion if to achieve goal even if it is against leader opinion  Leaders need to reinforce their behavior in accordance to Superordinate and SMART goals. If they do not do so, indifference/laziness might emerge. As such recognizing people and being close to them is an effective way to laziness and indifference.  Consequently, in goal setting, sense of unity, sense of one team is very important.  In addition, employees need to feel that their needs and welfare are taken into consideration. Example: This is the case of “Unions” where leaders stress the importance of solidarity within the workforce. Union leaders set specific goals that reflect the needs of the employees that they represent. Any lack of attention to the needs and values of the employees from union’s leaders result in conflict. LY - Lebanon Branch - B325 8  In order to achieve what has been advanced, a change of culture might be needed.  Culture refers to the shared values and behaviors that differentiate one organization from another.  Effective ways to change the culture:  Identify the behavior that define the desired culture  Set SMART learning or behavioral goals for teams and individuals  Acknowledge that what people are doing in relation to the goals is noticed and appreciated.  Examples: Employees are given opportunities to acknowledge in team meetings who is doing what to bring the desired culture change. The behavior of others lead the change of culture.  The main source of behavior change (i.e. change of culture) is one’s peers. The change of culture needs to address the groupthink by appointing and rotating “nay sayers” before any decision is taken. LY - Lebanon Branch - B325 9  “Which gets measured, gets done”.  Measurement conveys clearly what organizational decision makers believe is important, versus what they say is important.  Effective leaders ensure that the measurement system is aligned with the Superordinate and SMART goals.  When dysfunctional behavior is observed, the cause more frequently lies in the goals and/or measurement system than it does in the person who is exhibiting the behavior.  Measurement systems have to be set in accordance with the goals. If you change the goal, than the behavior should be changed and hence the measurement system. LY - Lebanon Branch - B325 10 Goals Gone Wild The Systematic Side Effects of Overprescribing goal setting LY - Lebanon Branch - B325 1 Introduction  To improve/boost the performance and powerfully drive behavior, we need to set specific and challenging goals.  “So long as a person is committed to the goal, has the requisite ability to attain it, and does not have conflicting goals, there is a positive, linear relationship between goal difficulty and task performance”  Yet, goals outcomes are not always positive. Some negative side effects are associated with goal setting such as:       A narrow focus that neglects non-goal areas, Distorted risk preferences, Rise in unethical behavior Inhibited learning Corrosion of organizational culture Reduced intrinsic motivation  Consequently, goal setting needs to be regarded as a prescription-strength medication that requires careful dosing, consideration of harmful side effects, and close supervision.  As such, goal setting has been promoted as an answer to improve employee motivation and performance in organization.  Please check examples on pp. 22 (Emblematic examples of goals gone wild – you can focus on Ford’s example) LY - Lebanon Branch - B325 2 How Goals Go Wild  To be successful and have positive outcomes, goals need to be specific and challenging.  Specific and challenging goals motivate performance better than “do your best” slogan.  Specific and challenging goals provide clear, unambiguous, and objective means for evaluating employees performance  Specific goals focus people’s attention; lacking a specific goal, employee attention may be dispersed across too many possible objectives  Yet, and despite the fact that challenging and specific goals render positive outcomes, these same characteristics cause goals to go wild. LY - Lebanon Branch - B325 3 When goals are too specific   Goals focus attention. Unfortunately, goals can focus attention so narrowly that people overlook other important feature of a task (example pp. 23). Three situations: narrow goals, too many goals and inappropriate time horizons. Narrow goals  With goals, people narrow their focus on the specific task required and hence outcome expected. Such intense focus will “blind” people from other important issues that appear to them unrelated to the goal  Tendency to focus too narrowly on goals is compounded when managers plan the wrong course by setting the wrong goal (e.g. setting revenue instead of profit goals). Consequently, setting the correct/appropriate goal is a difficult process.  Goal setting may cause people to ignore important dimensions of performance that are not specified by the goal-setting system  Example: a group of students are requested to proof read a paragraph that contains both grammatical and content errors. When students were given instruction to correct either grammar or content (specific goal), the result was not that satisfying. Many grammar or content errors were not corrected given that the focus was not general but specific (either on grammar or on content) Yet, when students were requested to correct the paragraph as a whole with no specific indications (do your best), students were more likely to correct both grammatical and content errors ➔ when no specific goal is set, people will look at the general image which might give better results.  When managers set specific goals, they often fail to determine the broader results of their directives. The presence of goals might lead employees to focus on short-term gains and lose sight of potential devastating long-term effects on the organization. LY - Lebanon Branch - B325 4 When goals are too specific Too many goals:    When multiple goals are pursued at one time, this might cause problem for employees Employees tend in that case to focus only on one goal. Some types of goals are more likely to be ignored than others. Example: In a stock selection task, participants are given both quality and quantity goals. When quantity and quality goals were both difficult, participants sacrificed quality to meet quantity ➔ Goals that are easier to achieve and measure (in that case quantity goals) may be given more attention than other goals (in that case quality goals). Inappropriate time horizon:   Even if goals are set correctly, time horizon to achieve them may be inappropriate Goals that emphasize immediate performance (e.g. this quarter’s profits) prompt managers to engage in myopic, short term behavior that harms the organization in the long run (for instance, companies that issued quarterly earnings reports frequently (short term goal) tended to invest less in research and development (long term goal)) ➔ The efforts to meet short-term targets occurred at the expenses of long-term growth.  Check example on pp. 25 (New York City cab drivers example). LY - Lebanon Branch - B325 5 When goals are too challenging  It has been demonstrated that a positive linear relationship exists between the difficulty of the goal and the employee performance. As such, to inspire effort, commitment, and performance, goal should be at the most challenging level possible but should not be so challenging that employees see no point in trying.  Nevertheless, stretch/challenging goals can have serious side effects from shifting risk attitudes to promoting unethical behavior to triggering the psychological costs of goal failure.  Three situations: risk taking, unethical behaviour, and dissatisfaction and the psychological consequences of goal failure. Risk taking: Goal setting distorts risk preferences. People motivated by specific, challenging goals adopt riskier strategies (reference the assumption that high risk = better performance and higher profits) than those with less challenging goals or vague goals.  Goals harm negotiation performance by increasing risky behavior. Negotiators with goals are more likely to fail to reach a profitable agreement than are negotiators who lack goals.  The excessive focus on goals might hence lead to risk-taking behavior (cause of many real world disasters)  LY - Lebanon Branch - B325 6 When goals are too challenging  Example: Continental bank in the U.S. was one of the most important banks. The bank set a new goal, and that is to increase within five years the magnitude of the bank’s lending ability. To achieve this objective, the bank changed its strategy, bought loans from smaller bank and pursued borrowers. It could have been the seventh-largest U.S. bank if its borrowers had been able to repay their loans; instead, following massive loan defaults, the government had to bail out the bank.  Check other examples on pp. 26 (mount Everest disaster) LY - Lebanon Branch - B325 7 When goals are too challenging Unethical behavior:  Goal setting is seen as a powerful motivation tool yet, it can lead and promote unethical behavior.  Goal setting can promote two different types of cheating behavior (unethical behavior):   When motivated by a goal, people may choose to use unethical methods to reach it. Example: at sears, and in order to reach the specific, challenging goal set by the administration, employees charged customers for unnecessary repairs Goal setting can motivate people to report that they have met the goal when in fact they fell short. Example: employees from a certain organization who were driven to reach sales target reported sales that never took place.  Goal setting is not the only cause of employee unethical behavior. It is an important ingredient but other aspects interfere as well:  Lax oversight  Financial incentives for meeting performance targets  Organizational culture with a week commitment to ethics. LY - Lebanon Branch - B325 8 When goals are too challenging  The interplay between goal setting and organizational culture is extremely important.  An ethical organizational culture can restrain in the harmful effects of goal setting.  Given that small decisions within an organization can have broad implications for organizational culture, the aggressive goal setting within an organization increases the likelihood of creating an organizational climate ripe for unethical behavior.  Goal setting might motivate unethical behavior. Dissatisfaction and the psychological consequences of goal failure:  When problem embedded in stretch goals is the possibility that the goal may not be reached which will lead to satisfaction. Decrease in satisfaction will influence how people view themselves and have important consequences for future behavior. Consequently, perceptions of self-efficacy are a key predictor of task engagement, commitment and effort.  In other words, one needs to believe in his/her personal ability and overall intelligence as to be able to reach the goal. LY - Lebanon Branch - B325 9 Summarizing  Goals can have both positive and negative outcomes:  Positive outcomes:  Inspire employees  Improve performance  Negative outcomes  Narrow focus  Motivate risk-taking  Lure people into unethical behavior  Reduce learning  Increase competition  Decrease intrinsic motivation  In order to prevent negative outcomes, managers need:  To consider the complex interplay between goal setting and organizational contexts as well as the need for safeguards and monitoring.  To avoid setting goals that increase employee stress  To refrain from punishing failure  To provide the tools employees need to meet ambitious goals  To think carefully about whether goals are necessary and if so about how to implement a goalsetting system. LY - Lebanon Branch - B325 10 Negotiating Purpose • The objective of this chapter is to discuss the purpose of working collaboratively. • Discussion of purpose are commonly referred to as “objective setting”, “goal setting” or “clarification of aims”. • Discussion of purpose can be the main agenda item of a meeting or can take place implicitly, perhaps over a prolonged period, as an inevitable implication of the process seeking to reach agreement about what to do. LY - Lebanon Branch - B325 2 • The negotiation process unfolds two parts: (a) aim ownership and (b) episodes. a) Aim Ownership: • During negotiation, each member of the group uses their knowledge and interpretation of what they take be the aims of the organization • Organization aims: Since collaborations are set up by individuals acting on behalf of organizations, the aims of their organizations are likely to be particularly relevant to the negotiation of collaborative purpose. Group members may, or may not, presume to have complete knowledge of these aims. The organizations aims may, or may not, connect to the original or officially stated purpose of the collaboration leading consequently to the fact that these aims are often viewed as part of the “hidden agenda”. • Individual aims: Each group member also brings to the process of negotiating the purposes of the collaboration, an individual set of personal values and constraints, and hence aims. Some of the individual will influence, and be influenced by collaboration and by any discussion with the group. Some of them will be, as the organization aims, hidden from the rest of the group. •Aims owned by the group: the process of working and negotiating together often leads to a sense of a group identity. Aims that are therefore owned by group, and attributed to the group, may emerge. LY - Lebanon Branch - B325 3 (b) Episodes in Negotiation: We mainly refer in this context to the dynamic of the negotiation process. We distinguish 10 episodes (check examples in book, pp. 111 – 117 and table 7.1 pp. 120). 1) Cohesive group episodes:  The members of the group agreeing to take some kind of collective action, in which they know their organizations would have no interest, characterizes episodes of this type.  Members may fear that the organization might veto the action and consider it as time wasting  Members may have to argue each other out of a sense of guilt that they are pursuing business that is not taken to be legitimate.  “We are all in this together” attitude evolves. Long Term Implications: • Help gaining the commitment of the members and make the best out of the situation • They may resource consuming or against an organization’s interests • Would be at risk if any member leave and is replaced by a new representative LY - Lebanon Branch - B325 4 2) Disinterested organization episodes:  In this kind of episode, members of the group might act in ways that would be counter to an organization’s intentions  The organization is viewed as disinterested in the activity proposed and is not expected to give support to it.  The individual’s aim is to use the agreement to the activities from the rest of the group members, with the backing of their organizations, as a lever for changing her own organization’s views. The individual may or may not declare this strategy to the rest of the group and presumes that the rest of the group do agree that the actions are good things to do (e.g.: someone who has a proposal to direct the organization’s attention towards new activities that are not a concern of the organization).  This is a high-risk strategy for the individual that may lead to punishment. LY - Lebanon Branch - B325 5 3) Outlying individual episodes:  An individual representative try to promote an activity of the collaborative group which would not be out of interest to any of the organizations involved, including his own, for his own personal reasons.  Sometimes the activity might be related to personal career development.  When the individual’s personal agenda is counterproductive to the group, boundaries should be drawn. Long Term Implications: • Other group members will seek to persuade the individual’s organization to send an alternative representative to the group. Such action will appear as socially unacceptable. 4) Spying organization episodes:  It is mainly related to collaborations done based on the aim of “spying”.  The spying organization has little interest in being a part of the collaboration other than to use it as a spying opportunity.  When a “spying organization” episode takes place an individual representative actively moves into a data gathering role, concentrating on extracting material relevant to the specific purposes of their own organization.  A successful representative of a spying organization will remain unnoticed. Long Term Implications: • Suspicion of the possibility for other organizations in the group “going it alone” based on their increased knowledge. LY - Lebanon Branch - B325 6 5) Vetoing individual or vetoing organization episodes:  This episode happens when one, or more, individuals respond to a proposal put forward by others.  It is usually emotional in character and the reaction is seriously negative to the proposal.  The reaction may be expressed through non-verbal signals and is likely to cause serious disruption to group harmony.  Such negative atmosphere does not promote productive work and other group members might become disinterested which might lead to absenteeism from meetings, resignation and even collapse of the collaborative group. Long Term Implications: • Other group members will seek to persuade the individual’s organization to send an alternative representative to the group. Such action will appear as socially unacceptable. LY - Lebanon Branch - B325 7 6) Threatened organization episodes:  This type of episode may be as well described as an attempt by an organization to veto proposals put forward by others.  Such action is a response to a stream of proposals seen by the representation as threatening the “space” of her organization.  It stems for strategic motives and tends to be more rational than emotional.  It is characterized either by a representative trying to dissuade or divert the purpose of the collaboration or the group from acting in the encroaching particular areas.  The main intent is to change the outcome of the collaboration: “It’s our patch, you keep off it”. LY - Lebanon Branch - B325 8 7) Outlying organization episodes:  This type of episode involves one organization and its representative being out of line with the other – individual and organizational – members.  The representative pursues a – usually hidden – agenda, which is consistent with the aims of their own organization without reference to others or to the joint purpose of the collaboration  It has similar characteristics to the spying organization episode given that the representative does not omit that s/he is pursuing her/his organization’s ends.  If the organization is perceived by the rest of the group to be important to the collaboration, or powerful with respect to it, the group may be prepared to be tolerant during the episode for the sake of smooth relationships. Long Term Implications: • The opportunity to pursue personal values can increase the chances that the outlying individual will remain enthusiastic, energetic, and attend group meetings regularly • It can be argued that it would be wide absorbing individuals’ agendas as long as they are not counterproductive to the aim of the collaboration. This demand high level of trust LY - Lebanon Branch - B325 9 8) Powerful organization and pragmatic group episodes:  If an organization is sufficiently powerful, through, for example, having significant resources to offer to the group, other group members pragmatic response is to accept the intervention of the powerful organization and compromise their own view as to gain the resource.  This episode is driven by recognition on the part of the representative of the powerful organization that their position allows them to take a directional lead which will allow him or her to drive personal agendas because the group would naturally presume that these reflect concerns of the powerful organization. 9) Sceptical group or sceptical individual episodes:  These episodes occur when there is general lack of commitment to the collaboration from those in the group.  They typically arise when collaborations are set by senior managers. Members are sent as representative and do not have any personal commitment to the organization’s aims LY - Lebanon Branch - B325 10 10) Imposed-upon organization and imposed-upon group episodes:  This type of episode typically arises when collaborations are externally mandated by, for example, government.  External insistence that organizations join in is generally encouraged through a threat to withdraw resources or to withdraw the opportunity to be involved in future action or resources  In this case, the collaborative group is unlikely to address the collaborative purpose with ownership or commitment. Long Term Implications (for episodes 9 and 10): • These recurring episodes may lead to every member gradually realizing that “nobody wants to be here”. The majority who participate out of routine or duty (and assuming that others have the same attitude) may gradually discover that there are a few who are genuinely enthused by the project LY - Lebanon Branch - B325 11 • Clear, common and agreed aims are essential to success in collaboration and the common practice that lasting agreement about a way forward is difficult to establish. • In order to manage aims, we need to use the aims framework along with the episodes framework which will allow to divise processes, such as workshops, for exploring and negotiating partners’ aims with the intention of clarifying them and tying them down. • Such sensitive negotiation process requires “right moments” and sometimes necessitate the engagement of an external facilitator. The latter are important parts of the act of managing (in order) to collaborate. • Preparedness of parties is very important for the process. However, as seen, even when there is broadly a relationship of goodwill between parties, the explicit sharing of understanding about aims sometimes leads to unearthing differences that can be difficult to reconcile. If this happens, the process of negotiation may increase the forces for collaborative inertia rather than lessen them. LY - Lebanon Branch - B325 12 What? Why? How? And Why Not? What is: 1- Collaboration or A World of Collaboration 2- Collaborative Advantage 3- Collaborative Inertia 4- Are the Common Basis of Collaborative Advantage? LY - Lebanon Branch - B325 2 A world in which it is possible to feel inspired No limit to your own resources and expertise Anything is possible through collaboration Purpose Shared vision via the development of a relationship and exchange of information LY - Lebanon Branch - B325 3  Collaborative Advantage is when collaboration between several bodies (industries, agencies, governmental bodies, etc.) allow to achieve efficiency, growth, progress, etc. reference their alliance.  For example, partnership between public organizations, and those with and between non-profit organizations, do tackle social issues that would otherwise fall between the gaps. LY - Lebanon Branch - B325 4  Collaborative Inertia is when a collaboration between two or more entities induce a slow progress without achieving any tangible outcome. Collaborative Advantage Collaborative Inertia  But why Collaborative Inertia is often found in practice rather than Collaborative Advantage?  What is the nature of Collaborative situations that makes them so prone to frustration? Managing Collaboration LY - Lebanon Branch - B325 5  Before explaining the bases of collaborative advantage as to explain at a second stage how to manage to collaborate, we need to emphasize the fact that the interest is that of collaboration (collaborative relationships) between organizations and not between individuals Two types of Collaboration : Promoted by the government (collaboration between public agencies, non-profit organizations) Collaborative relationships such as partnerships, alliances, joint ventures, networks of various sorts, collaborative forms of contracting and outsourcing, joint working, etc.  Examples: 1- Strategic Alliance between airlines and car manufacturing industry 2- Public – private partnerships especially at the level of social services 3- Industry networks between regional and national governments to promote wealth creation and mutual support LY - Lebanon Branch - B325 6 1- Access to Resources 2- Shared Risk 3- Efficiency 4- Coordination and Seamlessness 5- Learning 6- The Moral Imperative LY - Lebanon Branch - B325 7 1- Access to Resources: • Organizations often collaborate if they are unable to achieve their objectives with their own resources. • Collaboration with other organizations allows to bring together different resources including technology or expertise. LY - Lebanon Branch - B325 8 Example 1: Inter-Company collaboration over taking a product to the market ➔ One company provides the product and the other provides the access to the market . Example of types of industries that choose this type of collaboration: 1- Very small entrepreneurial businesses 2- Large companies such as pharmaceutical industry (where both activities – marketing and production are complex), 3- Companies seeking new markets in new geographical areas LY - Lebanon Branch - B325 9 Example 2: Collaborations involving organizations in the nonprofit and public sectors as to share resource, expertise, knowledge and connections. For instance, the police, legal professions, probation services, schools and neighborhood and youth groups collaborate over youth criminal justice issues. LY - Lebanon Branch - B325 10 2- Shared Risk: • Organizations collaborate because the consequences of failure on a project are too high for them to risk taking it on alone ➔ They share the risk • Example: Collaboration between cost-intensive research and development organizations LY - Lebanon Branch - B325 11 3- Efficiency: • Governments have often seen private organizations as being more efficient than public ones. The latter has promoted public-private partnerships (collaboration). • Four different perspectives on efficiency: • Efficiency stems from the notion of economies of scale • Efficiency related to outsourcing activities (example: companies may outsource support activities such as cleaning and catering to other companies who can gain economies of scale) • Operational efficiency: many purchasing and supply chain alliances are of this sort. Purchasing companies gain efficiencies by ensuring that the delivery of product is done on time and as per the agreed price. Supplying organizations gain efficiencies by having a relatively predictable market. • Coordination of services as to avoid duplication and thus ensure efficiency LY - Lebanon Branch - B325 12 3- Efficiency: Outsourcing Activities Economies of Scale Operational Efficiency Coordination LY - Lebanon Branch - B325 13 4- Coordination and Seamlessness: • As seen above, coordination is an important element to achieve efficiency. • Coordination is the act of organizing, making different people or things work together for a goal or effect to fulfill desired goals in an organization. Coordination is a managerial function in which different activities of the business are properly adjusted and interlinked. • Yet, coordination and seamlessness are not always inter-related: • Repetition (duplication of an activity) • Omission (leaving gaps in activity) • Divergence (diluting activity across a range of activities) • Counter production (pursuing conflicting activities) are pitfalls obstructing collaboration. LY - Lebanon Branch - B325 14 5- Learning: • Basis of collaboration ➔ pursue joint activities ➔ Mutual learning • Example: staff from automobile industry acting as trainers for their suppliers of components/parts LY - Lebanon Branch - B325 15 6- Moral Imperative: • The most important reason for being concerned in collaboration is a moral one. • Issues facing society (such as crime, drug, poverty, conflict, health promotion, economic development, etc.) cannot be achieved if the organization acts alone. • Collaboration is essential to alleviate any problems at the organization, industry, society and national levels. LY - Lebanon Branch - B325 16 WHY COLLABARTION IS ESSENTIAL? LY - Lebanon Branch - B325 17 Two reasons:  To protect territory against violation by others (for instance, large public agencies employ senior managers to:  take responsibility of their collaborative activity, and  manage a particular collaboration on behalf of the member organizations  To improve physical facilities or support infrastructure to address needs of the community LY - Lebanon Branch - B325 18 Goal Setting: A Five Step Approach to Behavior Change  How Goals are conceived?  Goals are conceived in general by individuals but also are conceptualized as belonging to the organization.  What is the role of organizations in this process?  Organizations are seen as mechanisms through which goals that are beyond the reach of individuals acting on their own can be practiced.  Inter-organizational collaboration provides as well mechanisms by which organizations seek collaborative advantage  Organizations, jointly, seek to achieve the aims that none of them could achieve on its own. Hence, the need for goals to be clear, compatible and agreed upon. LY - Lebanon Branch - B325 2  Examples of Superordinate Goal:  “I have a dream” – Martin Luther King;  “The just society” – Prime Minister of Canada, Pierre Trudeau;  Ask not what your country can do for you – ask what you can do for your country” – John F. Kennedy  “Learning through entertainment” – Walt Disney  What is a Superordinate Goal  A Superordinate goal is like a “slogan” to induce/encourage people, to translate a message to people  “A Superordinate goal captures “the heart”. It focuses mainly on affect; it appeals to emotion.  A Superordinate goal is a bottom-up goal. Bottom-Up goals are more powerful than TopDown goal since they are expressed in the language of the employees.  Three questions allow the development of Bottom-Up Superordinate goals:  Why do we exist as a unit?  Who should miss us if we are gone?  What is our primary source of discontent?  Check example on pp. 11-12 (Washington post). LY - Lebanon Branch - B325 3  What is goal setting?  Goal setting is a cognitive variable (i.e. based on understanding, knowledge, observation, reasoning), whereas Superordinate goal aims only to affect.  Goal setting is the manifestation of needs and values.  What is the purpose of goal setting?  The purpose of goal setting is to make the Superordinate goal concrete, to move it from emotional to concrete action steps.  To achieve that goal must be Specific, Measurable, Attainable, Relevant and have a Time-frame.  In other words, we need to have a SMART goal as to transfer a “Superordinate goal” into a “concrete goal”.  Example: Walt Disney  Superordinate goal: “Learning through entertainment”  SMART goal: Putting in place the Epcot center that allows people to be more knowledgeable and wiser after passing a day at the center than they were in the morning when they came.  (check pp. 12 for more examples) LY - Lebanon Branch - B325 4  Why Goals are important?  Goals are important because they provide people with:  a challenge  feelings of accomplishment when progress is made toward goal attainment  meaning to otherwise meaningless tasks  That is why goals need to be specific, clear and well set as to allow positive outcome and satisfaction (for instance; instead of saying to employees “do your best”, it is better to say “do what is required” and clearly specify tasks required)  Example: In the forest products industry, harvesting trees hour after hour can be tiring, monotonous work. When loggers set a specific high goal as to the number of trees each person would cut in a day and in a week, both attendance and performance increased significantly and people bragged about their accomplishments. LY - Lebanon Branch - B325 5  Goals are as well important because they can reduce the stress if they are in few numbers. They allow people to see the progress that they are doing in relation to the goals.  Goals remove the ambiguity (opposite of clarity) as to the criteria for which you and others will hold yourself responsible and accountable.  In order to achieve goals, there is a need to have a commitment. Without commitment there is no goal.  The empathy box allows to understand ways of gaining goal commitment (book pp. 13, 14, 15; optional reading). LY - Lebanon Branch - B325 6  As stated, commitment to Superordinate and SMART goals is a must.  Managers need to make sure that what they are saying is in line with the pre-set goals (Superordinate and SMART goals).  They need to pay extreme attention to the signals that they send unconsciously.  Leaders need to set learning goals to make people comfortable.  Informal channels are seen in general better than formal channel as to the achievement of goals (discussion with employees over coffee, at lunch, etc.). The managers can ask the employees about their opinion as regards the SMART goals set, if they are still applicable, what need to be changed, what actions are taken by the management and are hindering the goal achievement. LY - Lebanon Branch - B325 7  It is difficult to be an effective leader when you are inaccessible to the people who are on your team.  Leaders need to be accessible for two reasons:  Let people know what they are doing is noticed and appreciated with regard to goal attainment  To encourage opposition with the goals that are set. People in general have a tendency to commit to what they know is wrong (Groupthink). People need to say their honest opinion if to achieve goal even if it is against leader opinion  Leaders need to reinforce their behavior in accordance to Superordinate and SMART goals. If they do not do so, indifference/laziness might emerge. As such recognizing people and being close to them is an effective way to laziness and indifference.  Consequently, in goal setting, sense of unity, sense of one team is very important.  In addition, employees need to feel that their needs and welfare are taken into consideration. Example: This is the case of “Unions” where leaders stress the importance of solidarity within the workforce. Union leaders set specific goals that reflect the needs of the employees that they represent. Any lack of attention to the needs and values of the employees from union’s leaders result in conflict. LY - Lebanon Branch - B325 8  In order to achieve what has been advanced, a change of culture might be needed.  Culture refers to the shared values and behaviors that differentiate one organization from another.  Effective ways to change the culture:  Identify the behavior that define the desired culture  Set SMART learning or behavioral goals for teams and individuals  Acknowledge that what people are doing in relation to the goals is noticed and appreciated.  Examples: Employees are given opportunities to acknowledge in team meetings who is doing what to bring the desired culture change. The behavior of others lead the change of culture.  The main source of behavior change (i.e. change of culture) is one’s peers. The change of culture needs to address the groupthink by appointing and rotating “nay sayers” before any decision is taken. LY - Lebanon Branch - B325 9  “Which gets measured, gets done”.  Measurement conveys clearly what organizational decision makers believe is important, versus what they say is important.  Effective leaders ensure that the measurement system is aligned with the Superordinate and SMART goals.  When dysfunctional behavior is observed, the cause more frequently lies in the goals and/or measurement system than it does in the person who is exhibiting the behavior.  Measurement systems have to be set in accordance with the goals. If you change the goal, than the behavior should be changed and hence the measurement system. LY - Lebanon Branch - B325 10 Goals Gone Wild The Systematic Side Effects of Overprescribing goal setting LY - Lebanon Branch - B325 1 Introduction  To improve/boost the performance and powerfully drive behavior, we need to set specific and challenging goals.  “So long as a person is committed to the goal, has the requisite ability to attain it, and does not have conflicting goals, there is a positive, linear relationship between goal difficulty and task performance”  Yet, goals outcomes are not always positive. Some negative side effects are associated with goal setting such as:       A narrow focus that neglects non-goal areas, Distorted risk preferences, Rise in unethical behavior Inhibited learning Corrosion of organizational culture Reduced intrinsic motivation  Consequently, goal setting needs to be regarded as a prescription-strength medication that requires careful dosing, consideration of harmful side effects, and close supervision.  As such, goal setting has been promoted as an answer to improve employee motivation and performance in organization.  Please check examples on pp. 22 (Emblematic examples of goals gone wild – you can focus on Ford’s example) LY - Lebanon Branch - B325 2 How Goals Go Wild  To be successful and have positive outcomes, goals need to be specific and challenging.  Specific and challenging goals motivate performance better than “do your best” slogan.  Specific and challenging goals provide clear, unambiguous, and objective means for evaluating employees performance  Specific goals focus people’s attention; lacking a specific goal, employee attention may be dispersed across too many possible objectives  Yet, and despite the fact that challenging and specific goals render positive outcomes, these same characteristics cause goals to go wild. LY - Lebanon Branch - B325 3 When goals are too specific   Goals focus attention. Unfortunately, goals can focus attention so narrowly that people overlook other important feature of a task (example pp. 23). Three situations: narrow goals, too many goals and inappropriate time horizons. Narrow goals  With goals, people narrow their focus on the specific task required and hence outcome expected. Such intense focus will “blind” people from other important issues that appear to them unrelated to the goal  Tendency to focus too narrowly on goals is compounded when managers plan the wrong course by setting the wrong goal (e.g. setting revenue instead of profit goals). Consequently, setting the correct/appropriate goal is a difficult process.  Goal setting may cause people to ignore important dimensions of performance that are not specified by the goal-setting system  Example: a group of students are requested to proof read a paragraph that contains both grammatical and content errors. When students were given instruction to correct either grammar or content (specific goal), the result was not that satisfying. Many grammar or content errors were not corrected given that the focus was not general but specific (either on grammar or on content) Yet, when students were requested to correct the paragraph as a whole with no specific indications (do your best), students were more likely to correct both grammatical and content errors ➔ when no specific goal is set, people will look at the general image which might give better results.  When managers set specific goals, they often fail to determine the broader results of their directives. The presence of goals might lead employees to focus on short-term gains and lose sight of potential devastating long-term effects on the organization. LY - Lebanon Branch - B325 4 When goals are too specific Too many goals:    When multiple goals are pursued at one time, this might cause problem for employees Employees tend in that case to focus only on one goal. Some types of goals are more likely to be ignored than others. Example: In a stock selection task, participants are given both quality and quantity goals. When quantity and quality goals were both difficult, participants sacrificed quality to meet quantity ➔ Goals that are easier to achieve and measure (in that case quantity goals) may be given more attention than other goals (in that case quality goals). Inappropriate time horizon:   Even if goals are set correctly, time horizon to achieve them may be inappropriate Goals that emphasize immediate performance (e.g. this quarter’s profits) prompt managers to engage in myopic, short term behavior that harms the organization in the long run (for instance, companies that issued quarterly earnings reports frequently (short term goal) tended to invest less in research and development (long term goal)) ➔ The efforts to meet short-term targets occurred at the expenses of long-term growth.  Check example on pp. 25 (New York City cab drivers example). LY - Lebanon Branch - B325 5 When goals are too challenging  It has been demonstrated that a positive linear relationship exists between the difficulty of the goal and the employee performance. As such, to inspire effort, commitment, and performance, goal should be at the most challenging level possible but should not be so challenging that employees see no point in trying.  Nevertheless, stretch/challenging goals can have serious side effects from shifting risk attitudes to promoting unethical behavior to triggering the psychological costs of goal failure.  Three situations: risk taking, unethical behaviour, and dissatisfaction and the psychological consequences of goal failure. Risk taking: Goal setting distorts risk preferences. People motivated by specific, challenging goals adopt riskier strategies (reference the assumption that high risk = better performance and higher profits) than those with less challenging goals or vague goals.  Goals harm negotiation performance by increasing risky behavior. Negotiators with goals are more likely to fail to reach a profitable agreement than are negotiators who lack goals.  The excessive focus on goals might hence lead to risk-taking behavior (cause of many real world disasters)  LY - Lebanon Branch - B325 6 When goals are too challenging  Example: Continental bank in the U.S. was one of the most important banks. The bank set a new goal, and that is to increase within five years the magnitude of the bank’s lending ability. To achieve this objective, the bank changed its strategy, bought loans from smaller bank and pursued borrowers. It could have been the seventh-largest U.S. bank if its borrowers had been able to repay their loans; instead, following massive loan defaults, the government had to bail out the bank.  Check other examples on pp. 26 (mount Everest disaster) LY - Lebanon Branch - B325 7 When goals are too challenging Unethical behavior:  Goal setting is seen as a powerful motivation tool yet, it can lead and promote unethical behavior.  Goal setting can promote two different types of cheating behavior (unethical behavior):   When motivated by a goal, people may choose to use unethical methods to reach it. Example: at sears, and in order to reach the specific, challenging goal set by the administration, employees charged customers for unnecessary repairs Goal setting can motivate people to report that they have met the goal when in fact they fell short. Example: employees from a certain organization who were driven to reach sales target reported sales that never took place.  Goal setting is not the only cause of employee unethical behavior. It is an important ingredient but other aspects interfere as well:  Lax oversight  Financial incentives for meeting performance targets  Organizational culture with a week commitment to ethics. LY - Lebanon Branch - B325 8 When goals are too challenging  The interplay between goal setting and organizational culture is extremely important.  An ethical organizational culture can restrain in the harmful effects of goal setting.  Given that small decisions within an organization can have broad implications for organizational culture, the aggressive goal setting within an organization increases the likelihood of creating an organizational climate ripe for unethical behavior.  Goal setting might motivate unethical behavior. Dissatisfaction and the psychological consequences of goal failure:  When problem embedded in stretch goals is the possibility that the goal may not be reached which will lead to satisfaction. Decrease in satisfaction will influence how people view themselves and have important consequences for future behavior. Consequently, perceptions of self-efficacy are a key predictor of task engagement, commitment and effort.  In other words, one needs to believe in his/her personal ability and overall intelligence as to be able to reach the goal. LY - Lebanon Branch - B325 9 Summarizing  Goals can have both positive and negative outcomes:  Positive outcomes:  Inspire employees  Improve performance  Negative outcomes  Narrow focus  Motivate risk-taking  Lure people into unethical behavior  Reduce learning  Increase competition  Decrease intrinsic motivation  In order to prevent negative outcomes, managers need:  To consider the complex interplay between goal setting and organizational contexts as well as the need for safeguards and monitoring.  To avoid setting goals that increase employee stress  To refrain from punishing failure  To provide the tools employees need to meet ambitious goals  To think carefully about whether goals are necessary and if so about how to implement a goalsetting system. LY - Lebanon Branch - B325 10 Negotiating Purpose • The objective of this chapter is to discuss the purpose of working collaboratively. • Discussion of purpose are commonly referred to as “objective setting”, “goal setting” or “clarification of aims”. • Discussion of purpose can be the main agenda item of a meeting or can take place implicitly, perhaps over a prolonged period, as an inevitable implication of the process seeking to reach agreement about what to do. LY - Lebanon Branch - B325 2 • The negotiation process unfolds two parts: (a) aim ownership and (b) episodes. a) Aim Ownership: • During negotiation, each member of the group uses their knowledge and interpretation of what they take be the aims of the organization • Organization aims: Since collaborations are set up by individuals acting on behalf of organizations, the aims of their organizations are likely to be particularly relevant to the negotiation of collaborative purpose. Group members may, or may not, presume to have complete knowledge of these aims. The organizations aims may, or may not, connect to the original or officially stated purpose of the collaboration leading consequently to the fact that these aims are often viewed as part of the “hidden agenda”. • Individual aims: Each group member also brings to the process of negotiating the purposes of the collaboration, an individual set of personal values and constraints, and hence aims. Some of the individual will influence, and be influenced by collaboration and by any discussion with the group. Some of them will be, as the organization aims, hidden from the rest of the group. •Aims owned by the group: the process of working and negotiating together often leads to a sense of a group identity. Aims that are therefore owned by group, and attributed to the group, may emerge. LY - Lebanon Branch - B325 3 (b) Episodes in Negotiation: We mainly refer in this context to the dynamic of the negotiation process. We distinguish 10 episodes (check examples in book, pp. 111 – 117 and table 7.1 pp. 120). 1) Cohesive group episodes:  The members of the group agreeing to take some kind of collective action, in which they know their organizations would have no interest, characterizes episodes of this type.  Members may fear that the organization might veto the action and consider it as time wasting  Members may have to argue each other out of a sense of guilt that they are pursuing business that is not taken to be legitimate.  “We are all in this together” attitude evolves. Long Term Implications: • Help gaining the commitment of the members and make the best out of the situation • They may resource consuming or against an organization’s interests • Would be at risk if any member leave and is replaced by a new representative LY - Lebanon Branch - B325 4 2) Disinterested organization episodes:  In this kind of episode, members of the group might act in ways that would be counter to an organization’s intentions  The organization is viewed as disinterested in the activity proposed and is not expected to give support to it.  The individual’s aim is to use the agreement to the activities from the rest of the group members, with the backing of their organizations, as a lever for changing her own organization’s views. The individual may or may not declare this strategy to the rest of the group and presumes that the rest of the group do agree that the actions are good things to do (e.g.: someone who has a proposal to direct the organization’s attention towards new activities that are not a concern of the organization).  This is a high-risk strategy for the individual that may lead to punishment. LY - Lebanon Branch - B325 5 3) Outlying individual episodes:  An individual representative try to promote an activity of the collaborative group which would not be out of interest to any of the organizations involved, including his own, for his own personal reasons.  Sometimes the activity might be related to personal career development.  When the individual’s personal agenda is counterproductive to the group, boundaries should be drawn. Long Term Implications: • Other group members will seek to persuade the individual’s organization to send an alternative representative to the group. Such action will appear as socially unacceptable. 4) Spying organization episodes:  It is mainly related to collaborations done based on the aim of “spying”.  The spying organization has little interest in being a part of the collaboration other than to use it as a spying opportunity.  When a “spying organization” episode takes place an individual representative actively moves into a data gathering role, concentrating on extracting material relevant to the specific purposes of their own organization.  A successful representative of a spying organization will remain unnoticed. Long Term Implications: • Suspicion of the possibility for other organizations in the group “going it alone” based on their increased knowledge. LY - Lebanon Branch - B325 6 5) Vetoing individual or vetoing organization episodes:  This episode happens when one, or more, individuals respond to a proposal put forward by others.  It is usually emotional in character and the reaction is seriously negative to the proposal.  The reaction may be expressed through non-verbal signals and is likely to cause serious disruption to group harmony.  Such negative atmosphere does not promote productive work and other group members might become disinterested which might lead to absenteeism from meetings, resignation and even collapse of the collaborative group. Long Term Implications: • Other group members will seek to persuade the individual’s organization to send an alternative representative to the group. Such action will appear as socially unacceptable. LY - Lebanon Branch - B325 7 6) Threatened organization episodes:  This type of episode may be as well described as an attempt by an organization to veto proposals put forward by others.  Such action is a response to a stream of proposals seen by the representation as threatening the “space” of her organization.  It stems for strategic motives and tends to be more rational than emotional.  It is characterized either by a representative trying to dissuade or divert the purpose of the collaboration or the group from acting in the encroaching particular areas.  The main intent is to change the outcome of the collaboration: “It’s our patch, you keep off it”. LY - Lebanon Branch - B325 8 7) Outlying organization episodes:  This type of episode involves one organization and its representative being out of line with the other – individual and organizational – members.  The representative pursues a – usually hidden – agenda, which is consistent with the aims of their own organization without reference to others or to the joint purpose of the collaboration  It has similar characteristics to the spying organization episode given that the representative does not omit that s/he is pursuing her/his organization’s ends.  If the organization is perceived by the rest of the group to be important to the collaboration, or powerful with respect to it, the group may be prepared to be tolerant during the episode for the sake of smooth relationships. Long Term Implications: • The opportunity to pursue personal values can increase the chances that the outlying individual will remain enthusiastic, energetic, and attend group meetings regularly • It can be argued that it would be wide absorbing individuals’ agendas as long as they are not counterproductive to the aim of the collaboration. This demand high level of trust LY - Lebanon Branch - B325 9 8) Powerful organization and pragmatic group episodes:  If an organization is sufficiently powerful, through, for example, having significant resources to offer to the group, other group members pragmatic response is to accept the intervention of the powerful organization and compromise their own view as to gain the resource.  This episode is driven by recognition on the part of the representative of the powerful organization that their position allows them to take a directional lead which will allow him or her to drive personal agendas because the group would naturally presume that these reflect concerns of the powerful organization. 9) Sceptical group or sceptical individual episodes:  These episodes occur when there is general lack of commitment to the collaboration from those in the group.  They typically arise when collaborations are set by senior managers. Members are sent as representative and do not have any personal commitment to the organization’s aims LY - Lebanon Branch - B325 10 10) Imposed-upon organization and imposed-upon group episodes:  This type of episode typically arises when collaborations are externally mandated by, for example, government.  External insistence that organizations join in is generally encouraged through a threat to withdraw resources or to withdraw the opportunity to be involved in future action or resources  In this case, the collaborative group is unlikely to address the collaborative purpose with ownership or commitment. Long Term Implications (for episodes 9 and 10): • These recurring episodes may lead to every member gradually realizing that “nobody wants to be here”. The majority who participate out of routine or duty (and assuming that others have the same attitude) may gradually discover that there are a few who are genuinely enthused by the project LY - Lebanon Branch - B325 11 • Clear, common and agreed aims are essential to success in collaboration and the common practice that lasting agreement about a way forward is difficult to establish. • In order to manage aims, we need to use the aims framework along with the episodes framework which will allow to divise processes, such as workshops, for exploring and negotiating partners’ aims with the intention of clarifying them and tying them down. • Such sensitive negotiation process requires “right moments” and sometimes necessitate the engagement of an external facilitator. The latter are important parts of the act of managing (in order) to collaborate. • Preparedness of parties is very important for the process. However, as seen, even when there is broadly a relationship of goodwill between parties, the explicit sharing of understanding about aims sometimes leads to unearthing differences that can be difficult to reconcile. If this happens, the process of negotiation may increase the forces for collaborative inertia rather than lessen them. LY - Lebanon Branch - B325 12
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Running head: PUBLIC-PRIVATE PARTNERSHIPS

Public-Private Partnerships
Student’s Name
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PUBLIC-PRIVATE PARTNERSHIPS

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Public-Private Partnerships
Public administration is often characterized by inefficiencies, severe budgetary
constraints, and ineffective policies, such as the policy issues that plague the Riyadh
municipality in Saudi Arabia. The said municipality is under a municipal council that is charged
with helping it in undertaking its roles. However, despite having a council to run it, and other
lower officials, the municipality is still struggling with numerous issues related to public health,
and planning. It is thus important that a solution to these issues is found, and quickly. In this
regard, the private sector can be seen as a viable partner in helping the municipality deal with its
issues. This is because private organizations are often much more efficient, competent, and
flexible when handling their projects/businesses. They are unencumbered by burdens of the
public sector such as lengthy approval processes, budgetary constraints, and protocols for
engagement with the public. In addition, the private sector is likely to achieve more in an
undertaking than the public sector because the former is driven by a need to recover its
investments, while the latter is often funded by the state with no such pressures to return the
money. This paper examines the municipality of Riyadh, its inefficiencies in public
administration, and proposes a private-public partnership with the Dar Al Riyadh Group to help
in mitigating the discussed shortcomings of the public administration body.
Local Authority
The municipality of Al Riyadh is a notable one because it is in the administrative, and
political center of the Saudi Arabia Kingdom. The municipality encompasses the city of Riyadh,
which is divided into 15 municipal districts. It is headed by the mayor, Faisal bin Abdulaziz AlMuqrin. Currently, the city of Riyadh, which is under the Riyadh municipality, is growing
quickly, and becoming the business hub of the area. Large urban planning projects such as the

PUBLIC-PRIVATE PARTNERSHIPS

3

King Abdullah Financial District, are an indication that the municipality has to deal with urban
planning issues, and improve its capacity to handle the increased, and competing demand for
space (Saudi Arabia Government, 2021). It also has to improve on areas regarding the useability
of its current spaces for the sake of the health of its citizens, and their general wellbeing. This is
because proper urban planning is significantly correlated to the health of any region. The
municipality of Riyadh is struggling to keep up with the administrative functions of operating in
such a big area, and by extension keeping its population healthy, and safe. These issues of
inefficiencies would be discussed in detail in subsequent parts of the paper. The municipality
must, therefore, look for a solution to enhance urban planning, and public health. This can be
achieved through private-public partnerships with companies such as Dar Al Riyadh Group,
which specializes in the design of spaces for maximum efficiency, and has been discussed in the
following paragraph.
Private Partner
The company, Dar Al Riyadh Group, was established in 1975 by Turki Abdulrahman Al
Saud, and it has evolved into a competitive design company that offers services such as urban
design, feasibility studies, value engineering, inspection, and consumer support series (Dar Al
Riyadh Consultants, 2021). As can be seen, the corporation offers a wide range of services that
are uniquely suited in helping the Riyadh municipality to design new spaces, and manage current
ones in an effective manner. The company has over 1000 employees, and has had experience in
the field for over 30 years (Dar Al Riy...


Anonymous
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