The purpose of this paper is to develop our understanding of the gang aspects of work organizations. By applying a psychoanalytic lens, we formulate the ideas of the 'gang at work' and 'intra-organizational ganging dynamics', thereby initiating a research stream on the "dark side of groups". We illustrate our conceptual development by drawing on the Enron case thereby contributing unique group-level insights that complement other analyses of the phenomenon. We conclude by identifying areas for further research, and arguing that gang phenomena may also have been present among many of the key organizations at the centre of the credit crisis, such as Lehman Brothers.
Key Words: psychodynamics, ganging, Enron
The dark side of groups: A 'gang at work' in Enron
3Over the last few years management scholars have been increasingly focused on the "dark side" of various aspects of management and business. Interest areas in this stream include: "the dark side of organizational behaviour" (Griffin & O'Leary-Kelly, 2004), "the dark side of organizations" (Vaughan, 1999), the "dark side of leadership" (Conger, 1990), the "dark side of new organizational forms" (Victor & Stephens, 1994), the "dark side of internal capital markets" (Scharfstein & Stein, 2000), "the dark side of social capital" (Deuchar, 2008), and the "dark side of high self-esteem" (Baumeister, Smart, & Boden, 1996). Although these interest areas are at various levels of analysis, the group-level is conspicuous by its absence. We contribute to this stream by focusing on the "dark side of groups", and drawing on the psychodynamics literature, develop two constructs, i.e., the gang at work and intra-organizational ganging, which we illustrate using Enron as a case study.Much has already been written about the 2001 Enron collapse (Boje, Rosile, Durant, & Luhman, 2004;Bryce, 2002;Cruver, 2002;Fox, 2003;Hamilton, 2006;McLean & Elkind, 2003;Levine, 2005;Partnoy, 2003;Stein, 2007;Swartz & Watkins, 2003), and this new study therefore requires some justification. First, as the biggest-ever corporate failure at that point in history, Enron is a case of considerable significance and complexity, and we believe the understanding of what transpired at Enron is by no means complete. Second, although a variety of perspectives have been applied to the Enron case, the group-level has been relatively neglected (see O'Connor, 2002 for an exception). We argue in this paper that this neglect is particularly unfortunate, and show how group-level aspects played a key role in Enron's demise. Third, we believe the lessons from Enron can be generalized to other 'dark side' situations including the 2008 credit crisis, and we provide here an indication of some of the parallels that exist between these scenarios.Our theorizing is built on the Kleinian psychoanalytic theory which distinguishes between work groups and gangs (Bion, 1961) and their corresponding group and gang states The dark side of groups: A 'gang at work' in Enron 4 of mind (Canham, 2002). We are therefore attempting...