1. (c) Anat Rafaeli - http://Anat.Rafaeli.Net1 Artifacts and Organizations Professor Anat Rafaeli Industrial Engineering and Management Technion ISRAEL

2. (c) Anat Rafaeli - http://Anat.Rafaeli.Net2 What is an organization? (Rafaeli, 1996) Actually ==> A set of people ==> A set of emotions ==> A set of artifacts (not always physical, not always conscious) Formal Definition: A set of contracts

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4. 4 Organizations are full of artifacts (dress, logos, service stations, queues)

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8. 8 Theoretical Background Independent bodies of literature: Engineering …Human Factors Marketing … Organization Behavior … Design Art, …Engineering …Human Factors Multiple disciplines view physical artifacts VERY differently

9. (c) Anat Rafaeli - http://Anat.Rafaeli.Net9 Marketing, Organizational Behavior Symbolism (Schein) How is artifact interpreted?

10. (c) Anat Rafaeli - http://Anat.Rafaeli.Net10 Art, Design, Architecture Aesthetics, reactions of the senses, How is it perceived?

11. (c) Anat Rafaeli - http://Anat.Rafaeli.Net11 EngineeringHuman Factors Engineering, Human Factors Instrumentality, functionality, usability: How well does it work?

12. (c) Anat Rafaeli - http://Anat.Rafaeli.Net12 Managerial Problem: Artifacts can have Different Implications for Different People Danger of Artifact Myopia !

13. (c) Anat Rafaeli - http://Anat.Rafaeli.Net13 Artifact Errors in Organizations Miss Whitney cancel the memo requiring that personal appearance should reflect our corporate culture

14. (c) Anat Rafaeli - http://Anat.Rafaeli.Net14 “ The Tale of the Green Colored Busses ” Rafaeli and Vilnai-Yavetz (2004) A study of sensemaking of a key organizational artifact

15. (c) Anat Rafaeli - http://Anat.Rafaeli.Net15 Context “At the end of 1999 The Company decided to paint its buses green, as an indication of adopting “green” values …..Toward this end The Company spent 7.5 Million NIS (2 Million Dollars), more than half on advertising. …[but] the color was not tested with focus groups or surveys …[or] from a safety standpoint. ( National Comptroller http://www.mevaker.gov.il, 2002)http://www.mevaker.gov.il

16. (c) Anat Rafaeli - http://Anat.Rafaeli.Net16 Study Sensemaking and Perceptions by Multiple Stakeholders 1.Employees (managers, drivers) 2.Users (passengers) 3.Experts (engineers, technicians, designers, marketing, PR) 4.General media

17. (c) Anat Rafaeli - http://Anat.Rafaeli.Net17 For Who is Artifact Relevant? Organization and management Passengers Bus drivers General public Constituents Other Companies Environmentalists Pedestrians Other drivers Artifact

18. (c) Anat Rafaeli - http://Anat.Rafaeli.Net18 What about Artifact is Relevant? Formal organizational intentions A focus on symbolism: “We wanted to change and improve our image …Our intent was to convey commitment to quality of life and quality of service. Green represents environmental friendliness….” (spokesperson)

19. (c) Anat Rafaeli - http://Anat.Rafaeli.Net19 Management Intentions: Marketing Foundations Symbolism Management Passengers General Public Constituents Artifact Issue Image

20. (c) Anat Rafaeli - http://Anat.Rafaeli.Net20 Artifact Error I: Artifact Symbolizes More than Intended “Israel’s colors are blue and white, not green which Arabs tend to like” “Green symbolizes hospitals and illness”

21. (c) Anat Rafaeli - http://Anat.Rafaeli.Net21 Data: “Green is for garbage trucks” “Green represents a certain sports team”

22. (c) Anat Rafaeli - http://Anat.Rafaeli.Net22 Artifact Error II: Artifact is not only a symbol! Is it Functional? “Green blends in with the environment and cannot be seen. A traffic hazard (passenger). “Green heats the bus. Makes it up to 4 degrees hotter, which will cause energy waste in the summer.” (engineer) “Green does not stand out at night (designer).

23. (c) Anat Rafaeli - http://Anat.Rafaeli.Net23 Artifact Error II: Artifact is More than a Symbol Is it Aesthetic? “Green is ugly and unnecessary. Parts should be white or in different shades of green.” (designer) “Dark green is ugly, creates a feeling of suffocation.” (passenger)

24. (c) Anat Rafaeli - http://Anat.Rafaeli.Net24 Everyone Recognizes THREE dimensions! 1.Experts have a deep understanding of a specific dimension, but may overlook other dimensions 2.Experts and non-experts differed in terminology and content focus BUT Experts AND non-experts 3. Experts AND non-experts refer to three dimensions

25. (c) Anat Rafaeli - http://Anat.Rafaeli.Net25 Expertise of engineer evident in safety concerns “The color is dangerous… dark green is not visible. An important element for safety is visibility and for visibility contrast is important, a difference between object and background. When it's dark and you pass through a junction and a large black object 12 meters long passes [it's a problem].” Passenger: “ I can ’ t see the green bus. It is dangerous!

26. (c) Anat Rafaeli - http://Anat.Rafaeli.Net26 Expertise of designer evident in aesthetic concerns “In the colorful vividness of our country, to impose one consistent color on a bus, on a complex such as a bus, on such a big complex such as a bus, and such a green, it is simply inappropriate. Hideous!” Engineer: The green bus is really ugly!

27. (c) Anat Rafaeli - http://Anat.Rafaeli.Net27 Conclusions so far … Artifacts have three aspects (instrumentality, aesthetics, symbolism) Experts focus on one aspect. People in general recognize all dimensions. Sensemaking

28. (c) Anat Rafaeli - http://Anat.Rafaeli.Net28 Positive Artifact Impact? On Customers … Branding (Identifying) Creating Legitimacy and Trust Defining Responsibility Defining Interaction On employees … Identifying Creating Legitimacy and Trust Defining Responsibility Defining Interaction Promoting Organizational Goals

29. (c) Anat Rafaeli - http://Anat.Rafaeli.Net29 Artifacts and Trust: Food from a stranger? A stranger hands out food on the street 469 casual pedestrians on a major street in Haifa and Herzlia.

30. (c) Anat Rafaeli - http://Anat.Rafaeli.Net30 Without logo With logo % (1)= 51.12, p=.000 N = 469 Significantly more people comply in presence of a logo 23.1% 55.3%

31. (c) Anat Rafaeli - http://Anat.Rafaeli.Net31 Logo (Artifact) does NOT have to be recognized to elicit trust!

32. (c) Anat Rafaeli - http://Anat.Rafaeli.Net32 Artifact Induces Compliance Mostly With High Risk! High Risk condition : (1)= 51.12, p=.000 Low Risk condition : (1)= 0.295, N.S

33. (c) Anat Rafaeli - http://Anat.Rafaeli.Net33 Defining Responsibility: Poster and boarding card identifies time as under customer responsibility!

34. (c) Anat Rafaeli - http://Anat.Rafaeli.Net34 Defining Responsibility: Uniforms identify employee responsibility

35. (c) Anat Rafaeli - http://Anat.Rafaeli.Net35 Shaping Employee Behavior Employees are more service oriented when IN UNIFORM (Smock and Name Tag) than when OUT OF UNIFORM

36. (c) Anat Rafaeli - http://Anat.Rafaeli.Net36 Attracting Customers Aesthetic versus Unaesthetic Employee Appearance Affects Customer Tendency to Interact!

37. (c) Anat Rafaeli - http://Anat.Rafaeli.Net37 Producing the right mood

38. (c) Anat Rafaeli - http://Anat.Rafaeli.Net38 Queue Structure as Artifact People are Significantly More Irritated and Less Satisfied in a Multiple Queue than a Single Queue EVEN IF it takes the same amount of time To what extent do you feel Irritated? To a great extent To a little extent Service stations Please answer the question To what extent do you feel Irritated? To a great extent To a little extent Service stations Please answer the question PI – Anat Rafaeli

39. (c) Anat Rafaeli - http://Anat.Rafaeli.Net39 Queue Structure as Implicit Contract People are Significantly More Irritated and Less Satisfied when an Interference occurs in a Single Queue than in a Multiple Queue EVEN IF it takes the same amount of time To what extent do you feel Irritated? To a great extent To a little extent Service stations Please answer the question To what extent do you feel Irritated? To a great extent To a little extent Service stations Please answer the question PI – Anat Rafaeli

40. (c) Anat Rafaeli - http://Anat.Rafaeli.Net40 Artifacts and Organizational Issues Two routes of reactions to artifacts …. a. Artifact as target – Reactions to the artifact itself b. Organization as target – Artifact as trigger

41. (c) Anat Rafaeli - http://Anat.Rafaeli.Net41 Artifact as Trigger Issue: “Greenwash” They found it easier to paint their buses green, and claim they are green. About 190 people die every year from those buses. They pollute and make so much noise you can ’ t hear yourself think. Issue: Safety Maybe the new green color will remind bus drivers to stop being wild on the road and to pass only when the light is green Issue: Customer Respect “Green or black”? - “Company accepts religious pressure?”

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43. (c) Anat Rafaeli - http://Anat.Rafaeli.Net43 Artifact as Trigger Issue: Customer service “Green or spitting”? - “Yarok O Yorek?” Issue: Employee – management relations I have no idea about the green color. The company did not bother to involve us in any of the decisions. They don’t care about us, about what we think, we are worthless, just members. What are members anyway?

44. (c) Anat Rafaeli - http://Anat.Rafaeli.Net44 Artifacts and Organizational Issues Instrumentality Aesthetics Symbolism Organization Employees- Management relations Customer Service “ Greenwash ” Issues Wild driving Organizational image Passengers Bus drivers General public Constituents Environmentalists Pedestrians Other drivers Artifact

45. (c) Anat Rafaeli - http://Anat.Rafaeli.Net45 Artifacts and Identity: Microsoft’s Media Player More than 50,000,000 skins downloaded from the internet.

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47. (c) Anat Rafaeli - http://Anat.Rafaeli.Net47 Ratings of Default and the 2 choices

48. (c) Anat Rafaeli - http://Anat.Rafaeli.Net48 Predicting Satisfaction with an Artifact Independent Variable DVAdj. R 2 UsabilityAestheticsSymbolism Satisfying Experience.68.56**.38**.23** Pleasant Experience.58.43**.22* * p <.01, ** p<.001 Table 3: Adjusted R 2 and standardized regression coefficients of three skin aspects regressed on satisfying experience and pleasant experience.

49. (c) Anat Rafaeli - http://Anat.Rafaeli.Net49 Emotion Connects Artifact and Organization …through the three dimensions (85% of the time) Symbolism: “I am… happy to travel with a company that has the positive intentions the green bus represents”. Instrumentality: I am angry! The green does not stand out at night, and they know it. They don’t care about the passengers!”

50. (c) Anat Rafaeli - http://Anat.Rafaeli.Net50 Artifacts as Emotional Events: Talk About Artifact involves Emotion toward Organizational Issues. Issue: Greenwash Hypocrisy “ I am furious. They are hypocritical. With a green bus they say, ‘Hey, look, I am a good, warm, and caring body for the environment.”’ But they are the bad guy that pollutes the environment!”

51. (c) Anat Rafaeli - http://Anat.Rafaeli.Net51 Emotion everywhere …. toward … “ I HATE the green bus! ” “ What a hideous color. The Green bus is disgusting. Makes me sick. “ “ I HATE the company: “ The company is a large, fat, corrupt monopoly trying to emphasize positive things. It is trying to be acceptable to the public by trying to present itself as a Green company. “ Artifact and Organization … Artifacts as ‘ Emotional Episodes ”

52. (c) Anat Rafaeli - http://Anat.Rafaeli.Net52 Artifacts and Emotion are IN Big Time

53. (c) Anat Rafaeli - http://Anat.Rafaeli.Net53 Rafaeli and Vilnai-Yavetz (2004): Planning Artifacts to Avoid Artifact Errors Instrumentality Aesthetics Symbolism Three Dimensions to all Artifacts Sensemaking and Emotion

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