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Schwartz, H. S. (1990).  Narcissistic Process and Corporate Decay: The Theory of the Organizational Ideal.
"When work, the productive process, becomes display, its meaning becomes lost. Its performance as part of the organizational drama becomes the only meaning it has. Accordingly, the parts it plays in the organization's transactions with the world become irrelevant. When this happens, work loses its adaptive function and becomes mere ritual. At the same time, the rituals that serve to express the individual's identification with the organization ideal, especially those connected with rank, come to be infused with significance for the individual. They become sacred. Thus, reality and appearance trade places. The energy that once went into the production of goods and services of value to others is channelled into the dramatization of a narcissistic fantasy in which the organization's environment is merely a stage setting." (p. 61) "Loss of Creativity The delegitimation of one's sense of what is important gives rise to a special case of the ritualization of work--the loss of creativity. Schein (1983) describes the condition of 'conformity' that follows from an insistence by the organization that all of its norms be accepted as being equally important. Under that condition, the individual 'can tune in so completely on what he sees to be the way others are handling themselves that he becomes a carbon-copy and sometimes a caricature of them.' Consequently, Schein notes: 'The conforming individual curbs his creativity and thereby moves the organization toward a sterile form of bureaucracy.' " (p. 63) "This is the fundamental dynamic of totalitarianism. It alienates people from themselves and gives them over to others. Whatever victories ensue must be pyrrhic. Whatever happiness is to be attained here is not the happiness of the individual. Indeed, it is not happiness at all. It is the drama of happiness attaching to a role that the person performs in a play that is written and directed by others." (p. 16) "In organizational totalitarianism the organization, as defined by its leadership's understanding of their own actions, is proclaimed to be the organizational ideal; and the organization's power is used to impose this as the ego ideal for the organization's participants. (p. 24)" "Thus, locating the return to narcissism at the head of the organization means more than establishing a direction toward the ego ideal. It involves establishing certain definite others, with their own way of looking at the world and at themselves and with their own history of actions, as already ideal. It involves, in other words, acquiescing to the perfection of some specific others as ones own moral obligation, collectively enforceable by all others who have done so and with whom one defines oneself as ideally in community. It legitimizes the coercion by the powerful that causes the less powerful to act out a drama whose theme is the perfection of the powerful. And it does so in such a way that the powerful can feel self-righteous about this coercion--as if they were performing a service or committing a sacrifice." (p. 24) "There is something not only unnatural but positively impossible about becoming someone else. But this is obligatory. The result is that the person one really is not only is unacceptable to oneself, but is unacceptable in social life, which is in turn composed of persons who are each unacceptable in social life for the same reasons. The result is that social interaction takes place not between persons, but between performances. Roles utter words at other roles. And if at any time any one of them were to say, as each of them somehow knows, 'This is a bunch of nonsense,' that person would become a pariah because he or she would bring out in all these people the anxiety that motivated the performance in the first place and maintained it at all times. Thus, each of these persons must live in more or less complete isolation and be terribly lonely." (p. 26)
Hirschorn, L. (1993).  The Psychodynamics of Organizations. (Howell S. Baum, Eric L. Trist, James Krantz, Carole K. Barnett, Steven P. Feldman, Thomas N. Gilmore, Laurence J. Gould, Larry Hirschorn, Manfred F.R. KetsDeVries, Laurent Lapierre, Howard S. Schwartz, Glenn Swogger, David A. Thomas, Donald R. Young, Abraham Zaleznik, Michael A. Diamond, Ed.).
"A wide variety of approaches that guide investigation of organizational life have openly and strongly challenged the assumption that organizations behave as rational systems." (p. xiv) "Managers and executives in contemporary organizations must exercise great initiative while delegating substantial authority to those below them. It is no longer adequate simply to give and take orders. But as people experience greater freedom in their roles, they must also confront the anxieties and conflicts that bedevil them when they exercise authority. The external world of work is shaped increasingly by people's inner feelings and interior experiences. When people cannot take up their authority freely and without undue conflict and anxiety, they fear that authentic self-expression, the full flowering of their resources and vitality, will hurt them. As the three cases presented above suggest, in the face of this prospect some people will behave in inhibited ways, while others will mask their insecurity and neediness by overreaching and demanding too much. In this sense, we can say that people are relying on what Winnicott (1959 [1965], 1960 [1965]) calls a 'false self,' as opposed to a 'true self,' to take up their roles. They will, as a result, lack flexibility and vitality, and instead they will often behave in repetitive, constricted, non-task-oriented, and frequently self-defeating ways." (p. 60) "Organizations give alexithymics great opportunities to blend into the organizational culture. These organizational environments legitimize what otherwise may be looked at as strange may very well be that certain types of organizations go even further in that they possess the kind of numbing quality that awakens dormant alexithymic tendencies in their employees." (p. 210) "In explaining his failure to get ahead, he used the following analogy to to describe the dangers of acting aggressively or politically at work. Among coyotes, males are born into a pack; you have a whole litter. You have men who will never become leaders because of their biology, their genetics. And you have some more aggressive cubs, and they will do whatever they need to do to become leaders. And they have to eat the pack leader. And he never gives up until he can't resist any longer. I think I was born in that other group. When puppies are born, they do all sorts of things to give the dominant male his rights, and they will do all sorts of growling, and the puppy will turn over. There are linkages back and forth between humans and coyotes. Somehow I must not ever have given my bosses that yelp and stomach up, and they sensed it. And I never got the membership and support I needed." (p. 34) "In a landmark article, Schwartz (1987) constructed a theory of the 'organizational ideal' in which organization members, unwilling to face their imperfect selves, imagine that the organization contains the secret route to their ideal selves. Projecting their hidden grandiosity onto the organization, they repress their own sense of limits and failure and come to believe that the organization and its leaders are perfect. In such a culture, members have contempt for one another, or for at least those who stand nearer the bottom of the organization, since only by rising to the top can a person prove that he or she approximates the organizational ideal. Competition between peers is then justified, since the organizations perfection can be protected only if the unworthy are eliminated or put in their place. Mutuality between peers is consequently inhibited and feelings are denied." (p. 75) "Finally, a managers ability to accept these projections, especially the negative ones of subordinates (e.g., dependency, hatred, envy), without retribution or retaliation helps to create what Winnicott terms a 'holding environment'--that is, an environment that provides a sense of psychological safety within which work can productively be accomplished and people can grow and develop in their roles." (p. 61)