Ways of Organization

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Revue Sciences de Gestion, n 75, p. 83 106

New ways of organization. An organizationalchange process

Claudia Gonzlez PrezProfessor - Researcher.

Universidad Autnoma Metropolitana XochimilcoMexico

Silvia Pomar FernndezProfessor - Researcher.

Universidad Autnoma Metropolitana - Xochimilco

Mexico

People acts according to the way that the interpersonal relationshipis given, in the case of the organizations, the relationship is givenbetween pairs, between superiors and between subordinates. Theorganizational structure will determine the way in which thecommunication is established, in regards to the rank. When in anorganization the structure is not well defined, a bad communication isgenerated and this might cause serious conflicts, which will beemphasized by questions inherent to the lack of measure tools, as

happens in the case studied.The article moves from a natural model, in which the mostimportant thing is the social welfare, to a model in which theimportance of the social-economical binomial is evident. A model ofefficiency and efficacy which allow a harmonic development of theorganization, where the interaction is generated, and the learning isfavorable.


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84 ClaudiaGONZLEZ PREZ &SilviaPOMAR FERNNDEZ

The objective of this article is to show, how an active educational

organization which presents conflicts due to the lack ofcommunication and a deficient structure can learn from the SocioEconomic Model of Management (SEMM) and how this learningcontributes to the transformation and change of the organizationalpractices.

Keywords: Interpersonal relationships, organizational structure,communication, management socioeconomic.

Les personnes agissent en accord avec comme on donne lesrelations interpersonnelles, dans le cas des organisations, les relationssont donnes entre des paires et entre des chefs et subordonns. Lastructure organisationnelle dterminera la manire dans laquelle ontablit la communication par rapport la hirarchie, quand dans uneorganisation la structure sera indfinie, on produit une mauvaisecommunication, ce qui peut provoquer des conflits srieux qui sontaccentus par des questions inhrentes au manque d'outils de gestion,comme il arrive dans le cas tudi.

On transite d'une logique o ce qui est prpondrant est le bien-tre social, un modle o l'importance du binme socio-conomiquedevient vidente. Un modle efficience et efficacit qui permet undveloppement harmonieux de l'organisation o on produitl'interaction et on rend propice l'apprentissage.

L'objectif de ce travail est de montrer comment une organisationducative active qui prsente des conflits par le manque decommunication et une structure dficiente, apprend partir del'application du Modle de Gestion Socioconomique (MGS) etcomment cet apprentissage contribue la transformation et auchangement des pratiques organisationnelles

Mots-cls : Les relations interpersonnelles, la structureorganisationnelle, communication, gestion socio-conomiques.

En las organizaciones, las relaciones interpersonales, se dan entrepares y entre jefes y subordinados. La estructura organizacionaldetermina la forma en la que se establece la comunicacin en relacina la jerarqua, si no se identifican adecuadamente lasresponsabilidades y las relaciones con el puesto se pueden generar


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NEW WAYS OF ORGANIZATION.AN ORGANIZATIONAL CHANGE PROCESS 85

deficiencias en la estructura, lo que puede ocasionar serios conflictos

que se vern reflejados en el comportamiento de los actores y en eldesempeo.

Se transita de una lgica en donde lo preponderante es el bienestarsocial a un modelo en donde se hace evidente la importancia delbinomio socioeconmico. Un modelo de eficiencia y eficacia quepermite un desarrollo armnico de la organizacin en donde se generala interaccin y se propicia el aprendizaje.

El objetivo del artculo es mostrar cmo una organizacineducativa activa que presenta conflictos por la falta de comunicacin yuna deficiente estructura aprende a partir de la aplicacin del Modelo

de Gestin Socioeconmica (MSG) y cmo este aprendizajecontribuye a la transformacin y al cambio de las prcticasorganizacionales

Palabras claves: Relaciones interpersonales, estructuraorganizacional, comunicacin, gestin socioeconmica.

Introduction

Interpersonal relationships in most organizations usually take placebetween equals as well as between managers and employees. Thestructure of an organization determines the way communication isestablished in relation to hierarchy. If relationships and duties are notsuitably established within the organization, problems arise and createconflicts that are reflected in the behavior and performance of itsemployees. This is, in fact, the situation within the organization we areassessing in this essay;where the authority, objectives, principles and

functioning are not clearly determined. This has caused changes in thebehavior of actors since they ignore to whom they should address inorder to receive direction, so they place their personal interests overthose of the organization.

The objective of this article is to show, how an active educationalorganization which presents conflicts due to the lack ofcommunication and a deficient structure can learn from the SocioEconomic Model of Management (SEMM) and how this learning


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contributes to the transformation and change of the organizational

practicesThe leading hypothesis in this research is that within the

organizations where there are more than one owner and where it is notwell define who has the authority, there will be communicationproblems which will derive in personal conflicts; at this point, externalintervention is needed in order to help the organization to recognizethe root of the conflicts and to generate organizational apprenticeshipand help them in making the necessary changes.

We will begin our work with a theoretical framework to explainthe relationship given in the binomial conflict/structure and its impacton the voluntary organizations. In the second part of our work, we willexplain the importance of the socio-economical binomial since in thecase study, we go from the logical idea in which social welfare and thebenefits for its members are the most important issues. In thisbinomial relation, an efficiency and efficacy model is generated,which allows a harmonious development of the organization whereinteraction is generated and learning is favored, this will be developedfurther in the third part of this work. From the fourth to the seventhpart of this study, we will focus on the methodology used for its study,the tools that were used, the changed in the organization will beanalyzed and the conclusions will be presented.

1. The structure-conflict binomial and voluntaryorganizations.

The way in which communication occurs in an organizationdepends greatly on its structure.1 The structure of the organizationgenerates a management scheme which allows planning, organizing,managing and controlling their activities. If this structure is notestablished clearly and is not well defined, it will not only affect theperformance and the organization efficiency, but will also affect job

satisfaction.When a social system does not work, the formal structure can be

replaced by an informal one determined by the staff, and the groups ofpower will be distributed in a different way than the one established in

1. According to Mintzberg (1993:2) the structure of an organization is the entire sumof the forms in which it divides its work in different tasks and how it coordinates thesetasks.


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the organization chart. The roles are relevant in a structure, when all

the pieces of the puzzle fit, the institution functions efficiently, but itcould be that they dont fit if they havent been established, or if thereis a bad communication, that is the reason why structure distorts. Suchinformal structure may gain strength even in organizations wherenormalization is too weak and freedom space2 for members is toowide. This is the example for non-profit organizations like voluntaryassociations.

Some organizations are for profit3 while the volunteer-basedorganizations boast to seek only educational, cultural and healthbenefits for their members. The structures within these organizations

are often blurry and permeable (Aldrich, 1971) since many of theminvolve occasional sponsors and people interested in a passive way.These people can be mobilized in exceptional circumstances toprovide financial or political support. This process influences theinterpersonal relationships and therefore the structure.

The following chart will show the differences between profitorganizations and non- profit ones (such as the one in our case study),in relation to members commitment, its structure and its effectiveness.

Chart 1: Comparison of business enterprises and voluntary organization

Dimension Systems of

incentives and

commitment

of the

participants

Formal

structures

Leadership

and authority

Environmental

conditionsEffectiveness

Companies Incentives

focused on

utilities

Resources ofthe markets

Complex

division of

tasks, vertical

and horizontal

differentiation

Patterns of

hierarchic

authority

Centralizeddecision

making

Professional

Specialized

structures are

favored on the

basis of stable

environments

They occupy

central

positions of

Obtaining

profits and

growth

Quantifiable

indicators of

performance

2. According to Benot Pig (2008), the freedom space is known as the limits that aperson has to make a decision, depending on its post.3. Like specific industrial associations, professional societies and unions.


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leadership power and

prestige in

inter-

organizational

networks

Associations Normative

incentives

focused on

efficiency

It depends

on the

members

and the

people

interested in

the benefits

of the

former.

Division of the

work and

formal and

simple internal

structure

Patterns of

authority :

professional,

confederate

Ideology and

democratic

decisions

making

Amateur

leadership

General

structures are

favored in

turbulent

environments

They occupy

peripheral

positions ,

depending on

the networks

Goals of

aggregation

and

expression of

the members

interests

Ambiguous

and vague

measures of

goals

achievement

Source: David Knoke y David Prensky, 1984, What Relevance Do Organizational

Theories Have for Voluntary Associations? Social Science Quarterly, 65 (march) 14.

Communication is important in both types of organizations;through communication you share ideas, information, thoughts, valuesand norms. However, given the interests and commitment of somemembers in the non-profit organizations, communication problemsmay occur and stifle cooperation. This happens especially when theorganization has a simple, ill-defined structure and goals are notclearly stated.

The structure of an organization is considered inadequate(Furnham, 2001) when tasks and work relationships have not been setwith any given job position. Sometimes, members of an establishmentwill create structures that suit their personal interests and not those ofthe organization. When an organization is not well structured, therecan be various consequences (Chart 2)


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Chart. 2: Consequences in the deficiency of the structure

UNEFFICIENCY CONSEQUENCES

It is not clearly determined who has the

authority or it does not have the

required capacity to perform it

The employees do not know whom to

inform

There are not valid basis under which the

organization must operate

It creates personalities which can

cause that the staff place their

personal interests and those of their

department before the ones of the

organization

Not enough delegation in the decision

making and not clarity in the position

Little motivation, dissatisfaction and low

morale

Lack of on time information from the

people involved

Late and inadequate decision making

Lack of definition of the goals, inability

To integrate team work and lack

ofCoordination

Interpersonal conflict, lack of

coordination and failure to fulfill the

objectives

To have an extended authority hierarchy

When there is an excessive administrative

Work load

Visible and hidden costs

Lack of communication where the

information

Serious problems of absenteeism

rotation of personnel lack of interest

in doing the job well

Adapted from: Furnham, 2001

The nature of an organization also has impact on the structure andthe way its employees understand it. Even though there are differencesbetween the interests of the organizations, the need to relate theeconomic performance to the social one should always be present.


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2. The assumptions of the socio-economical binomial

Organizations have a fundamental role to play in society. It isimportant that they fulfill their duties towards their customers on theoutside as they do with their human resources and owners on theinside. Both the owner and the human resources develop activities thatshould be oriented to achieve a good development and in consequenceachieve the organizations objectives, with the purpose of improvingtheir economical and social efficiency, satisfying everyones needs(Pomar, 2007).

Management is a human process which involves human

relationships. Therefore, understanding human behavior is veryimportant in the workplace, especially when trying to reach the goal ofbecoming efficient. It is in view of this fact and also the importance ofeconomic performance that Henry Savall presented his 1973 socio-economical approach to business and organizational management. Hisframework was based, according to Zarder and Krief (2003) on twoideas:

Strategies of change based on human abilities are a necessity inbusiness. Change needs economic evaluations, and economic change needs

to be renewed.

From the authors point of view, it is important to consider thealife part of an organization, the human factor, which is the base toobtain a good performance. Employees modify their behavioraccording to the situation they have to live. However, there is anotherimportant factor to which the employees contribute, and that is theprofitability and economic benefits which if they are obtained willsatisfy to everyone. This is why financial resources should becarefully administered to reach any given goal.

The main idea of this particular study is to look into the hiddencosts and performances of dysfunction in some companies. HenriSavalls theory states that:

The activity of a man, a team or an organization, simultaneouslyproduces a proper functioning (orthofunctioning) and anomalies ordisturbances (dysfunctions). Every enterprise continuously generatesgood products that increase their profitability and development, but at


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the same time it also experiences disruptions that partly absorb their

energies and financial resources, leading to reduced performances(ISEOR, 2003).

The identification of anomalies allows transformation andtherefore the generation of new forms of organization. This generateslearning that, in the studied case, occurs through the diagnosis and theuse of diverse tools that will be analyzed later. This is whyunderstanding how humans make decisions and move into actionremains a central issue in the management of the explained binomial.

3. Organizational learning

To understand the transition from the individual to theorganizational learning, it is important to understand howorganizations learn and the role played by the interactions withothers in the process. Shein (2000) makes a distinction between theterms organizational learning and organization that learns claimingthat the first refers to individual learning while the second refers to thelearning of the organization as a total system.

From the outcome of social interaction, learning can be explainedas an internalization process of culture, in which each individual gives

meaning to what he perceives according to his own possibility ofmeaning and at the same time he incorporates new meanings.Internationalization occurs thorough the activity that impliesreconstructing and giving a new meaning to ones culturalenvironment.

The Intervention-research that has been developed within theorganizations proposes the concept of cognitive interactivity as a wayto access to the learning, as a group. It is based on the formulation andvalidation of the hypothesis of inductive knowledge throughobservation and data gathering (Savall and Zardet, 1972). This is

followed by implementing what has been learned through the use ofmanagement tools as one of the parts of the virtuous circle throughredefining problems from socialization. These assumptions are basedon the idea that learning is a social process in which culturalunderstandings are redefined. Learning is then understood as aninteractive process that stems from one given individual but is, at thesame time, determined by the outer world.


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We point out then that an organizational learning process is

especially a communication process, through which people share andconstruct common meanings. Let us also assume that the abovementioned cognitive interactivity is both the trigger and the outcomeof this learning and that, during that interactivity, decoding becomesan important tool to transmit knowledge both tacitly and explicitly(Gonzlez, 2006).

It is through the diagnosis carried out by the intervention-researchand with the application of the tools of this research that TheMontessori A.C. Educational Community (CEMAC in Spanish) wasable to implement the concept of organizational learning. In order to

understand this process better, let us explain first some particularities.

4. The particularities of the Montessori EducationalCommunity A.C. (cemac in Spanish)

The Montessori Educational Community A.C. CEMAC wascreated 39 years ago as a non-profit organization by parents whowanted to give their children an education based on the principles ofthe right of the individual to grow without the rigidity of strict

parameters, stereotypes or given them set models. Once the parentsrealized that no existing school offered them this kind of education fortheir children, they decided to create a non-profit civic organization.These parents based their project on the educational system which wasfirst proposed by Dr. Maria Montessori.

This Civil Association was headed by a Council Managementcomposed by some of these parents. It all started with the ChildrensHouse where infants and pre-scholars went. With the time it grow upand new sections were created as Workshops (1 and 24), along withHigh school and CCH5. The High school and CCH sections adoptedsome models that even when they were not Montessori they were

some kind of a follow up to the students work. The educationalmodel in High school was called personalized, while for thepreparatory section it was decided to incorporate it to studies of the

4. According to Montessori`s model, these two levels receive, in the case of WorkshopI, kids from 1,2 and 3 and in Workshop II kids from 4,5 y 6 grade, in SEP`sscheme.5. Under graduate studies (Bachelor).


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National Autonomous University of Mexico (UNAM). The university

transferred its high schools model and added its norms and academicadministration.

Some important aspects for this research are that through thehistory of the CEMAC, we can see that its structural organization hasbeen very simple appearing quite similar to a family structure. Thisfact has influenced the generation of an organizational culture in thecommunity that recognizes itself as a solidarity-type of communitybasing this solidarity in a program of scholarships. For The ChildrensHouse there is a Coordinator who is also the Technical Director incompliance with the rules of the SEP (Office of Public Education).

Even though the educational model does not include the teaching ofEnglish per se, the language is still taught every day in small groupscalled clusters. The section of the workshop has also a Coordinatorand a Technical Director who is in charge of all the paperwork for theSEP.

While more sections were added and the amount of students wasgrowing, more positions of Coordinators were created for each sectionto oversee the teachers activities as well as those of the Guides.Furthermore, the CEMAC added Technical Directors just to complywith the rules set by the Public Education Office (SEP) and theUNAM.

The Junior High School section was organized in first, second andthird grades. The most important difference with the traditional highschools is the way class work is done: through projects and interactionbetween the traditional methodology and the one established atCEMAC.

5. The intervention-research process

In comparison with other methodologies of organizational

intervention or consultancy which impact the organizationalperformance, the SEAM adapts itself in a better way to theorganizations of volunteers, since it does not raise the paradoxbetween the economic and social development. The organizations forcharity many times resist implementing models of improvement in themanagement with the idea that the efficiency criteria and effectivenessdo not correspond to the social logics. Nevertheless the SEAM puts inevidence the binomial and builds the sense of the intervention in the


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reduction of the dysfunctions that will result in the improvement in the

performance partner: improving the social fusion of the organizationexpressed in the mission, and generating social wealth.

The intervention in CEMAC was carried out through focusing onthe socioeconomic management approach and the intervention-research methodology. This starts with semi-guided interviews and ina more depth way with the actors from the Parents Council, whorepresent the Civil Association, to the General Management and eventhe base personnel. This process is called horivertsince it applies theunion of two simultaneous and articulated actions. (Savall and Zardet,1987, 1995, 2004)

A horizontal action that involves the administration team. A vertical action that involves the personnel who executes the

job, as well as the management of each unit.

The socioeconomic diagnosis implies listening, observing andunderstanding. In turn, the participant-researcher must also listen tothe various operators involved in the process since each worker has adifferent and particular point of view which is very useful to confronttheir vision with that of his/her hierarchic superior (Martinez and

Gonzalez, 2006).After classifying the testimony phrases into the six scopes ofaction proposed by Savall and Zardet (1987, 1995, and 2004) whichare: working conditions, organization, time management,communication-coordination-cooperation, integrated training andimplementation of the strategy, the main ideas are elaborated. Then,the organization is given a mirror effect presentation (Savall andZardet, 1987, 1995, 2004: 273) in a consolidated and anonymous way,so that the ideas can be validated.

The socio economic administration of an organization is based onthe simultaneous transformation of its structures and the behavior of

its employees (Savall and Zardet, 1995, p. 229). With this purpose, aglobal change is then set and a deep and progressive transformationmethod, is put into motion. (Savall and Zardet, 1987; Savall, Zardetand Bonnet, 2000). To achieve this change three main points areproposed:

1. The one of the solution process (decision) based on thecompilation of dysfunctions identified by all the participants;


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improvement projects are prepared which will be evaluated after being

implemented.

2. The instruments or management tools allow keeping acollective memory record of the interviews, and also serving as meansof support and negotiation. They also cover the phase of watching andcontrolling for the achievement of the solution actions established.

3. The policy and strategy in which strategies are determined toimprove structures and rules, related to the behavior of the personnel,are established. (Graph 1).

Graph 1: The three strides of change

Source: (Savall, Zardet y Bonnet, 2000: Annexed I, 9


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6. Application of two tools: The Priority Plan of Action

(PPA) and the Competency Matrix (CM)

After the diagnostic we realized two sessions of the PPA weregiven to following staff: General Management, Coordinators of eachsection and Management Council. Even when the first two were incharge of developing the plan, it was considered important that themembers of the Council also participated since they have a role ofsupervision. The attendants developed the exercise step by step whichwas reinforced by council sessions given by the Investigators. Up totoday the middle management of both, the academic and the

administrative areas review their PPA every month. This practiceimpacted in the actions of the agreement polices.On the other hand, the Internal and External Strategic Plan of

Action (PASINTEX) was developed by the Management Council andwas coordinated by the Planning Committee. The result obtained withthis work was the re-structure of the mission and the vision ofCEMAC and the implementation of 5 strategic dominium. Thesestrategic lines would be developed later, to be accomplished in a fiveyear term, establishing actions, indicators and goals to be sure they areachieved.

Two workshops were given to teach them how to elaborate the

Priority Plan of Action (PPA); the elaborations of the six and oneextra PPAs were fulfilled according to the agreement. For each one ofthe plans made, strategic main points were developed, as well asconcrete objectives and actions, so that the main points established areaccomplished.

In order to have a tool to measure the results of the plans in a termof 6 months, which is the time in which the PPA actions should bedeveloped, there were meetings with the General Management. Thesemeetings were held with the objective of reviewing the advance andthe accomplishment in each area, to see which actions were taken,

which ones were in process, and in which ones there was no advanceand to know the reasons for the results in each situation.At the end of the agreement established, the elaboration of the

PPAs was considered as a permanent action to develop, updating itevery six months. It was also agreed to extend the performance ofthese actions to the following levels in the CEMAC.


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The MC was applied in the whole institution to evaluate the skills

and abilities of the personnel in each area, as well as to know theirneeds of training. 34 matrix were applied which helped to detect someof the employees weaknesses. This matrix was developed to beapplied in a continuous way so that the CEMAC can be sure to havequalified personnel to carry out each of their activities. Severalcounseling sessions were carried out in order to review the drafts andthe decision making. The main problem we found was in theadministrative area where we detected a lack of knowledge, controland granting of scholarships, fees and processes.

7. Effects of the socioeconomic diagnostic and the change

If action is a means to reach knowledge, there is a virtuous cyclethan triggers from implementing the Socio Economic Diagnosis. As aresult from the interviews and the mirror-effect affecting the staffand directors, you acquire conscience of the organizationsproblematic. In this virtuous cycle, the knowledge that comes out andthe so-called mirror effect serve to initiate actions. However, aseries of energies emerge with the interviews and the awareness ofthe organization problems. The staff can choose to take advantage or

not of these energies.In CEMAC, a diagnosis6 was carried out which unveiled different

problems related mainly to the lack of structure definition. Thiscreated communication difficulties mainly caused by the scarcity ofinformation, the definition theresponsibility of each position and therelationship of authority. It was a consequence of the fact that theorganization was set up by parents who function as the maximumauthority through an Administrative Council renewed every two years.Because of this, there were duplication of functions and the Directorfigure, a paid-position, barely had sufficient leadership to fulfill his

duties.

6. The results were presented in an academic event in 2007 through a paper by theauthors of this article; we only mention here what is related and relevant to our subject.To elaborate the diagnosis, 31 individual and five group interviews were carried out.We also organized 6 sessions of the Mirror Effect with each section members, thecoordinators group and the Board.


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The diagnosis of CEMAC showed a number of malfunctioning

events: diminishing enrollment, that had an effect in the incomesbecause the parents decided to move their children somewhere elsedue to the problems in the organization of the school detected bythem. Another problem was the scholarships since they were given tostudents that did not pay registration nor their monthly fee, in this casethere were 59 students from which 20 of them were employeeschildren in spite of the fact that many of them did not fulfill with theacademic standards. The vice-president of promotion of the ParentsCouncil was in charge of these scholarships but as she did not havethe abilities required and there were not procedure manuals the

granted of the scholarships was very flexible. As a consequence theorganization became insolvent, they destroyed institutional identitywithin scholarship students and they created vested interest by parentswho threatened to move away in case they lose the grant to theirchildren.

The teachers who required photocopies, which were not taken inthe school, had to go out taking much time. We consider that the lackof a well defined structure created dead times due to the informalstructures; all of this generated over time and thus hidden costs (Chart3)

Chart 3: Analyses of Qualitative Dysfunctions

Causes Dysfunctions RepercussionsHidden Costs

-

Disconformities

of students and

parents

- Non adequate

facilities.

- Bad

communication(rumors about

CEMAC closure

or moving).

- CCH students

sent out because

of bad attitude.

Students not

enrolled

- Not incomes by

concept of fees.

- Serious financial

restrictions for

continuing with the

operation ofCEMAC

- Not creation of

potential for the

organization

69 students

abandoned school

due to the problems

of the organization

thus impacting

their financial

situation since theydid not have

incomes for the

amount of

266,622 Dlls.


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- Unavailability

of the person

responsible for

providing

authorization.

- Inefficient

communication

and coordination

among involved

individuals.

Inefficient

process of

authorizing

photocopies

- Over-time.

- Delay in

academic activities.

- Unnecessary

expenditures in

outsource

photocopies

2,015 Dlls yearly

paid for over-time

- Laxity in

implementing

policies and

guidelines

regulating

scholarship

allocation.

- Manipulation

by some parents

and staff

members in order

to get

scholarships.

Scholarship

granted to

families not in

need or that do

not fulfill

regulations

- Not received

income.

- Financial

restrictions.

- Financial deficit.

- Not creation of

potential.

Lack of

institutional

identity by

scholarship

receivers

Uncompromised

attitude by parents

unwilling to remain

in CEMAC in the

absence of a

scholarship for

their children.

Not received

income amounting

to $987,535 per

year for the 20

scholarships

granted to staff,

and 145,945 Dlls

for the 59

scholarships

granted

.

Total 414,548 Dlls.

Source: Elaboration by the authors

The diagnosis in all the groups we worked with, also determined

that the disfunctioning related with the problems of coordination,communication and cooperation (ccc) originated severe problems inthe organization. This was translated into lack of motivation of theemployees due to the bad relationships, which were consideredsuperficial. The lack of communication also caused misunderstandingswhich were reflected mainly in the quality of the teaching of English.These communication problems impacted the confidence, creating


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conflicts between superiors and subordinates which were reflected in

the performance of the organizationIn CEMAC as in many organizations, there was resistance to

change because there were no external references to measure andcompare their performance which made it impossible to think in theorganization from another view rather than their own. The followingphrases are examples of how they see the situation: We are notaltering the order this has always been like this, We cannotchange because we have always worked this way. There were manyother similar statements which reflected the staffs way of viewing thesituation. This made it very difficult to bring in any radical change.

Nevertheless, change did come gradually, almost immediately afterthe result of the diagnosis was reported, a change in the administrativelevel began.

One of the problems the organization had to face in the changewas a lack of competency at the administrative level. Even when theywere respected and knowledgeable specialists of the Montessorieducational system, they have not had enough experience to be in aposition of management. Besides there were not rules and standards ofadministrative and organizational processes.

However, thanks to the acceptance of the disfunctioning showed asa result of the investigation process, it was possible to implement

changes, and make the organizations management more efficient.They also were conscious of the crisis which the organization wasgoing through. Besides those already mentioned we also found thatthere was an increasing fall in pupils registration, a huge dueportfolio, lack of associates loyalty, scholarship holders who didpoorly academically, and worst of all, the lack of owned facilities.This was the context in which the socioeconomic intervention tookplace.

We used different tools7 like the Competency Matrix and thePriority Plan of Action. This last tool would have been less effectivewithout knowing the situation within the organization and without theparticipation of some of its members. As Bayart (1995) states, it isnecessary to take the interactions into account: on one side the objectsthat are produced and put into circulation and, on the other side, thecontext which gives sense to these objects.

7. Tools in organizations enable people to develop their work more easily, but in regardto organizational elements like management tools, they also allow to mobilizeknowledge.


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If action leads to knowledge, the management tools, in this

particular case the Priorities Plan of Action (PPA), turned into abridge between individual cognitive capacities and the collectivitycomponents. The PPA appears as a new means of perception: it makesit visible the intangible and the issues that came across as personal andhidden problems that had to do with lack of planning.

The tools of the socio economic intervention were vital inactualizing and sharing knowledge. The tools of socio economicadministration were then used to strengthen the staffs knowledge,allowing them to share their points of view with the wholeorganization. Once everyone learned how to use the tools transmitted

by the research team, they served to build new information andknowledge socialization.A PPA format helps shed light on two very important

characteristics of planning: the coordination of the people involved inthe process, and the time frame. The PPA helps to measure time andbrings forward a chain of values such as the existing relationshipsbetween individual and collective work. These tools mobilizeknowledge in organizations. In the case of the PPA, it also acts as anegotiation and cooperation tool where a concatenation of elements ina negotiated and collective way is necessary.

One important factor in bringing on the changes within the

organization is that the new Board formed previously by parents andthe Management is now made up of professionals of whom some arebusinessmen who have an ideology of efficiency and effectiveness,something the organization was missing.

However the diagnosis and the tools used, also helped to speed upthe political decision-making process. This gave way to structuralchanges in which the committed staff assumed new responsibilities.As we can observe in the chart below, when registration dropped anda new point of balance was established, the group was reduced inorder to make the organization more efficient and operational. Thenumber of coordinators went from four to two and full time teachersmade better use of their free time. These changes helped theorganization to improve and make savings.


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CurrentCEMACOrganizationalChart

Source: Report of the Associates Assembly. Montessori Educational Community,

Period 2007-2008.

Besides the structural transformations in the organization, there werealso the following changes:

The generation of a new culture of formal written informationsince at every meeting there are minutes of the agreements andcommitments,


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The creation of important administrative and organizationalprocedures for the management of the institution,

The restructuring of the institution and the creation of a neworganizational chart,

The creation of a 5-year strategic plan (PASINTEX), The creation of a the Priority Action Plan (PAP) for each section

and working space of the institution in a short term,

The assessment of the skills of the CEMAC`s employees in orderto create a Training Plan. The impulse of a new culture in which the social and the

economic binomial are clearly related through management tools.

With the reorganization of the structure of the school, there was areduction of personnel, procedure manuals were implemented,and there was a reduction in the and scholarships granted,consequently there was a saving in the costs and increase of fundsthat have allowed the building of new facilities

Conclusion

As can be seen the diagnosis of CEMAC allowed us to detectmalfunctioning such as diminishing enrollment, scholarshipmisallocation and labor abuses, that is, hidden costs that wereproducing financial deficit and work delay. We face theseproblems by using different tools like mirror effect, the Priority

Action Plan (PAP), the competency grid (CG), with positiveresults. So, we can state that this investigation model not onlyallows carrying out a diagnosis as can be done with other models,but also it generates the change by the mean of knowledge ofapprenticeship.

Based on the methodology applied, we could detect a number ofmalfunctioning issues that have to be with the six dominium


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mentioned before, for this work we basically focused in one of

them, not less important than the others but which in this case wasof a great importance, which is communication since being sodeficient, it was creating a lot of conflicts which affected theoperation of the organization as was demonstrated in the study ofthis case.

In group learning, there are social mediators that work as toolsthat embody knowledge. The culture world provides the tools andthe language which gives sense to information transmission in acollective way. The socio economic management tools becomethe social representation of what is important for the members ofthe organization.

From the organizations stand point, the socioeconomicintervention brought out the virtuous circle towards action togenerate then the knowledge, and helped the staff to appropriateand apply the management tools. That can be called collaborationtools given that they were developed with the active participationof small groups of equals.

This analysis helps to accentuate the interactions and the contextin which a tool is used, on one hand by the objects that areproduced and put into circulation like in the PPA which wererecreated and appropriated by those using it, and. on the otherhand the context which gives sense to these objects

To mobilize skills and knowledge, the objects have a key role. Inany other way, it would have been difficult to socialize thelearning. Although a format might appear as a trivial thing,management tools have a direct impact on the structures of theinstitution and behaviors of the personnel. Moreover, the impact

is greater on how the organizational problems themselves areunderstood.

As we were able to observe in our case study, this organizationunderstood the need for change given the level of conflict thatexisted within it. It was also proven in our study that the toolsproposed for the socio economic a substantial change was


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achieved which helped the employees to become more aware of

the problems and the appropriation of new knowledge.

This model aims to transform organizations in which dysfunctionsare identified and the application of the tools allowed theorganizational change mainly in the structure and behavior ofthose involved. Thus, it achieves a balance between the social andthe economic aspects, especially in an organization as the one weanalyzed where its way of organization is different for the form inwhich it was created and the interests of its members.

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