Workers versus entrepreneurs
A sociology of psychologies in the working worlds 

 

 

 

 

 

The whole idea is that certain social worlds are prone to certain types of psychology. This work is not of a macro kind[1],  it is rather based on a collection of data with a micro focus. This study is the evolution of a model elaborated in a previous work (Marty, 2002) which led us to distinguish two worlds (“milieux”) characterized by specifics that opposed them : one world was said to be open, the other one to be closed.

These two worlds (the open and the closed ones) are different not only as far as their physical characteristics are concerned but also in their social structure and the psychology of the individuals who will probably succeed in each of them. Our previous work was a study in ethnography, which  focused on a group of workers in a French Guyana tribe. They were working on the construction of a pirogue and we opposed the closed world of the Amazonian rainforest (the place where they chose the tree trunk and did the gross digging) and the open world of the pirogues harbor next to the village (the place where they completed the work on the pirogue). In the first place, in the world physically enclosed within the rainforest, the social structure of the group had time to evolve into a complex organization and the successful workers in this group were said to be ‘climbers’. In the second place, in the open worlds of the harbor, the group of workers was not organized and the successful workers were ‘opportunists’ – this being a gross overview of our model.

We will now try to apply this three-dimension distinction of closed and open worlds to another reality. The opposition between physical, sociological and psychological characteristics can indeed highlights the reality of modern workers in the internet based new economy.

We collected data on new economy work environments in previous studies (Marty 2000, 2003 & 2004). These studies were also ethnographical and aiming at understanding workers and work environments in the new economy. We’ve been successively hired in two different Start Ups and described what working life was like for employees day after day. Then we had a few sociological interviews with entrepreneurs of the new economy.

This new raw material can lead us to distinguish the open world of the market place, not organized and suitable to opportunists; and the closed world of a high tech company, which is well organized and thus adapted to climbers who can make their way up the different positions of the organization. Let’s describe these two kinds of worlds further on  so as to develop our model.

 

A sociological distinction : two kinds of work environments

 

The closed world of a company

 

Our initial study focused on employees’ everyday life in a modern Start Up (Marty 2003, developed in Marty 2004). Young engineers and salespeople were hired in a newly-created, small and dynamic company operating on the market of new technologies. This kind of companies is much less organized than those in the industrial sector  or even in the sector of traditional services. Start Ups are not stable institutions: they do not hire many employees and their organization has to be very flexible so as to be able to meet the demand of very volatile markets constantly.

However, we will consider that they do have an organization. And this very organization can be easily read in the organizational chart of the company : there is a set of functions or positions in the company and a map of it can be drawn (see 1 : organizational chart of a Start Up). This organization appears progressively : in most cases, first there is a vertical division of work (that is to say a hierarchy with dominant and dominated workers : salesperson and salesperson assistant for example) and, secondly, a horizontal division of work (that is to say a set of complementary functions such as engineers and salespeople). The whole organization had been structured that way in the two Start Ups we studied. It is possible to imagine a different construction process with the apparition of, first, a horizontal division of work and, secondly, a vertical division of work. That would be the case of an association between an engineer and a salesperson who want to start a company together and who, after their association, hire other employees. But the process of building an organization is not the point of this presentation. The main important fact that we want to highlight is that a Start Up is organized and that this organization can be read in the organizational chart.

 

Example of a closed world

Organizational chart of a French Start Up in 2001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Starting with this fact, we can consider that this organization is the structure of a closed world. Indeed, employees, whatever their position in the vertical and horizontal divisions of work, are to meet their colleagues on a daily basis and work with them. Their work contract obliges them to be in the company every day and to respect its rules. It is a juridical obligation which is physically materialized by the walls of the company’s building : employees have a desk among other desks and are limited in this space for a long time. In other words, they have a place in a limited world and all their interactions are determined by the rules of this closed, or limited, world.

Moreno set a method to draw the relationships between fellows : through a “sociogram” the researchers can have a broad vision of the net of links woven between members of a group. Asking plain questions like “who in this list of colleagues do you consider as a friend ?” and then drawing lines between people considering each other as friends, Moreno gave the possibility to visualize the structure of relationships in a group.

We can sustain that such a “sociogram” is mainly determined by the organizational chart in a company’s environment. Who you are related to in the company depends much more on your status and function that on real affinities. Even time off relationships, at the coffee machine for example, are determined by your function : it is hardly possible for you to start a friendly relationship with someone at a different level of the company’s hierarchy or who even has a very different position at the same level. The sociogram is determined by the organizational chart and, further on, the frame of interaction will be driven by your status : the way you will talk and address people, the topics you will choose, are strictly determined by the respective status in the company of the two speakers.

Furthermore, the multi-level organization that structures the company’s work environment gives birth to relationships embedded in power : in the organizational chart that we presented above, the orders of the managers  at the top of the chart are amplified by the intermediate layer before getting to the lowest one dealing with edition. The structure of the group separates the workers and amplifies power games between them.

A closed world, be it that of natives digging a tree trunk in the Amazonian or a set of young engineers in a modern Parisian Start Up, is physically limited : the group is packed in a limited space and have time to become a well organized structure with relationships based on status and power games. A closed world is a structured work environment[2]. Let’s see now another environment of work : open worlds.

 

The open world of a market place

 

The other social reality that we want to describe is that of a market place in the new economy. In Paris, between1999-and 2004, an event called First Thursday took place every week. The event was a meeting of investors and businessmen in a reception hall where they could talk and decide to start or develop a new  interned based company. Therefore, this First Thursday event worked as a free market : there were money offers which would meet the demands of entrepreneurs who needed some for their business.

As we can see in the second graph below, this kind of event gives birth to a much less structured environment : there is not a three-layer organization like the one we’ve seen in the work environment of a company. Conversely, we have two kinds of actors, investors and entrepreneurs and their number changes all along the event. The hall is open and the number of each actor fluctuates in time.

 

 

Example of an unclosed world

Networking in a market place of the new economy

 

 

 

 

 

 

 

 

 

 


Moreover, power does not stream down from the top of the organizational chart to its bottom. On the contrary, the graph of the network is very changeable : the free businessmen meet various potential investors for their Start Up. At any moment, they can decide to leave an investor who does not seem to be interested for another one, more appropriate. And vice-versa. In the graph we present, there are five investors for three businessmen. As a consequence of the rule of offer and demand, the businessmen are in a better position than the investors because the second ones outnumber the first ones. At any moment, there is always an investor waiting to talk to an entrepreneur and these entrepreneurs can change easily or go and see the investor who has the most attractive offer.

Our point is not to describe the mechanisms of a free market through micro observations. We will just consider that this market place works out as an open world : any new investor or entrepreneur can be added to it without making any important change – apart from the change in the balance of power. Indeed, there is not a well defined structure and the twofold organization is very volatile[3].

However, there is an invisible structure. Indeed, the market place is shaped and oriented by values and symbols. Money or high tech gadgets are important as far as  social codes are concerned : they grant their owners recognition in the group and their use makes them feel part of the open world. But this invisible structure is not very important for our study because it is also present in the closed world that we’ve described in the first part. Symbols and values are shared by closed and open world, they do not differentiate the two worlds.

We’ve described two different environments of work that we regarded as examples of two different kinds or worlds. The closed world of a company (limited by a legal work contract and tangible with the walls of the company that close the space) on the one hand and the open world of a market place (open to any new member, spatially unlimited) on the other hand. We considered that the closed world had time to get structured and become a stable organization whereas the open world had no structure and worked out like a net. This was a sociological distinction where closed and open worlds can be considered as organized and not organized social spheres. Let’s move on to a psychological distinction through the presentation of the kind of people who are more likely to succeed in each of these two worlds. Here the distinction will be between open world minded people and closed world minded people.

 

A psychological distinction : two kinds of successful workers

 

                        Climbers and opportunists : the length of interaction is the main variable

 

The first psychological distinction between workers successful in each of the closed and open worlds concerns the very basis of their success. In a closed world, the structure of the social group has time to produce power games (Crozier, 1993) and relies on them. Therefore, a successful person in a closed world, like a Start Up company, will base his /her career on the patient acquisition of power. He/she will understand precisely the rules of the game, what he/she can or cannot do by himself/herself , and what he/she can or cannot do with the people occupying other positions in the organization. Complying with these relationships based on power, he/she will make his/her way up the hierarchy and this is why we propose to call this kind of persons “climbers”.

On the contrary, success in the open world of markets is much less based on power. The successful entrepreneur has to seduce, in a very brief time, strangers that he/she meets in order to finance his/her Start-Up. He/she has not to be “the best one”, like company’s employees in competition to climb up the hierarchy, but he/she has to be “the one” in the sense that he/she will find an investor and seduce him/her into financing his/her company – without being compared to other ones. He/she does not have to take the time to master the internal rules of an organization, it is much more useful to know how to start and finish quickly an interaction, to sneak in and out any group of investors. This is why we call this kind of people “opportunists”. The interaction is quicker and not based on power acquisition.

 

Self esteem

 

The second psychological distinction can be found in the way you estimate yourself. In a closed world, you stay with the same people for a long time and your relationships are determined by your status. Therefore you will tend to look at yourself in the same way that people look at you. Your status determines the interaction and your self esteem. You are not only playing a role : you live it and consider yourself in the same way that people consider you.

As for an open world, in a market place for example, interactions are quicker and you don’t have time to assimilate the way a particular potential partner look at you. You can be conscious of it and play the role but you will not judge yourself through his vision. A market place is much more based on independent self esteem than on one which would be based on the status acquired in an organization.

 

Timidity and boast

 

To complete our dichotomy of mentalities, we can highlight the fact that a long interaction with colleagues in a Start Up’s closed environment of work gives time to an employee to show progressively how good he/she is at his/her job. The effective strategy is then not to take risks in showing off too much , which could trigger jealousy. On the contrary, a timid personality has time to present gradually, to the decisive colleagues, the best aspects of his/her work and personality.

This is strictly the contrary in the open world of a market place. Indeed, the quick interaction through which you have to seduce potential investors does not let you time to develop your own presentation. The logic of boasting prevails ; or, at least, the necessity of displaying a maximum of assets in a very brief time. Here the “elevator speech” is not an exception taking place on an particular day : it is the ordinary pattern of behavior of the market.

 

Criticism

 

Last but not least, we can present the psychological tendency of being critical and analyze its relevancy in each of the two worlds. In the closed world of a company, you can try, successfully, to manipulate your group of colleagues by criticizing an employee who competes with you for a better position. Even though criticism leads to a bad work atmosphere, it can help you by merely eliminating the chances of your colleague to be promoted to the position your are looking for. Indeed, in a closed world, people cannot flee from the critical individual and the negative rumor once launched has time to produce its nasty effects. Critical individuals can therefore take advantage of this side of their personality to succeed in a closed world.

On the contrary, we can consider that being a critical personality will not help you to succeed in an open environment such as the market place. In this case, the people you talk to can easily escape from the negative atmosphere you create: the market place is full of different people and maybe some more easy to get along with. Your potential investor will, for comparable business opportunities, prefer a warm personality. Secondly, the group being open, people getting in and out constantly, there is no social structure allowing the diffusion of a bad rumor about a contender. For these two reasons, being a critical personality is useless in an open world.


In a nutshell

 

 

Closed world

Unclosed World

Definition : a physical distinction

Closed versus unclosed spaces

Group limited in space

Open group with no spatial limit

Social characteristics of the worlds

Closed versus unclosed social spheres

Organized group : structured

Unorganized group : net

Power amplified by the group structure

Power depends on the number of actors :

offer and demand

Psychological characteristics of people who will probably succeed

in these worlds

Closed world minded people versus open world minded people

Know the rules of the group and climb

 slowly

Take advantage of opportunities : quickly seduce strangers who are potential business partners

Evaluation of the individual by the group

Self confidence

Timidity

Showing off

Criticizing is useful because you can hope

to take the place of the people criticized

and because people cannot flee from you

since you are in a closed world

Criticizing is an useless effort in an open

world and makes people flee from you

 


 


In 2002, after a study in ethnography, we defined a three-dimension opposition between open and closed worlds of work. This opposition was based on physical, sociological and psychological differences between the two worlds. In this paper, we applied the model of closed and open worlds to the reality of the internet based new economy. We, thus, distinguished well organized companies (closed world) and not organized market places (open world) ; and presented the abilities needed to succeed in each of them[4].

We can also imagine a possible adaptation of the model to the worlds of education and research. On the one hand, secondary schools, limited by the classroom’s walls and ordered by the grades given by the teachers are more adapted to climbers who fit in this organization. It is a closed world. On the other hand, university and research teams could be considered as a much less organized world and much more suitable to opportunists who know how to get in and out of different research streams. It is an open world. This would have to be more thoroughly studied, with a collection of data and an improvement of the model. For example, criticism between researchers is necessary to make science progress : it is part of the logic of scientific discovery. Therefore criticism cannot be excluded of the world of research – even if we describe it as an open world.


BIBLIOGRAPHY

Abélès Marc, 2002, Les nouveaux riches : un ethnologue dans la Silicon Valley, Odile Jacob

Beaud S, Weber F, 1997, Guide de l’enquête de terrain, Paris, col. Repères, La Découverte.

Bidet Alexandra, 2001, « Le travail et l’économique, pour un regard anthropologique », Sociologie du travail, n°43 ; 215-234

 

Bucciarelli Louis, 1994, Designing Engineers, The MIT press

Boutinet Jean Pierre, 1993, Psychologie des conduites à projet, Paris, PUF, Que sais-je ?

Bourdieu Pierre, 2000, Les structures sociales de l’économie, Seuil, Liber, (see the annex about « le champ de l’entreprise »).

Crozier Michel, Friedberg Erhard, 1993, Le pouvoir et la règle, coll Points Seuil

Descola Philippe, 1988, Les idées en anthropologie, avec Lenclud G., Severi C. et Taylor A.C., Anthropologie du temps présent, Paris Armand Colin.

Goffman E., 1973, La mise en scène de la vie quotidienne (T2), Paris, Le sens commun, Editions de Minuit.

Granovetter M., 1995, Getting a job, a study of contacts and careers, The University of Chicago Press.

Marty Olivier, 2000, Investir et s’investir dans une Start-Up, Gérer et Comprendre - Annales des Mines, n°59, mars 2000, p. 18-25. http://www.annales.org/gc/2002/gc67-03-02.html

 

Marty Olivier, 2002, A partir de la construction d’une pirogue Djuka : milieu fermé versus milieu ouvert. ethnographiques, nov 2002. http://www.ethnographiques.org/2002/Marty.html

 

Marty Olivier, Moreau Régis et Weinberger David, 2003,  Start-up : du mythe médiatique aux réalités sociologiques.  Paris, L'harmattan, Dossiers de sciences humaines et sociales

 

Marty Olivier, 2004, Klikoo.com, ethnographie d’une start-up, Paris, Le Manuscrit

Menger Jean Michel, 1991, Marché du travail artistique et socialisation du risque , Revue française de sociologie, 32 :

Miller Robert A, 1984, Job matching and occupational choice, Journal of political economy, n92, pp1086-112061-74.

Morgan Gareth, 1997, Images of organisations, Routledge

 

Weil Thierry, 2000, Survivre dans la Silicon Valley, Gérer et comprendre n°61, pp88-100

 

Wolf Mauro 1994, Sociologias de la vida cotidiana : Goffman y Garfinkel, ed Catedra, collection Teorema, Madrid



[1] like one which would have to verify common assertions like “rich people are  greedy, poor people are generous” or even “black people are sensual, white people are stiff” ; “greedy”, “generous”, “sensual” of “stiff” being psychological characteristics, determined, in these assertions, by social considerations such as being poor, rich, black or white in our society. Such a work would distinguish real psychological tendencies and representations.

[2] We can here relate to Pierre Bourdieu’s concept of “champ” to highlight in another way the structure of closed  worlds. What we call power could be linked to the kind of “capital” specific to the “champ”. Lower and higher positions in the closed world could be compared to new comers and old members of  the “champ”.

[3] Here we can refer to the work of Mark Granovetter in a different field : the labour market. The analogy would consist in analysing the structure of the network between the people in presence on the market (be it an investment or a work market) : weak links are very often very important because they fill in structural gaps. Following this path, it would be interesting to analyse, not the static map of relationships but its evolution. Indeed, like neurologists study the evolution of a net of neurons, we could get interested in the creation of new links between people. How do you get in touch ? How relationships evolve to friendship and work assets ?

[4] We could qualify our thought : certain people are good in whichever world (you can be both a climber and an opportunist) ; you can consider that opportunism is good for closed world in certain situations and that open worlds are structured by values and therefore that you can climb in them. But these are exceptions and the model provides a good theoretical understanding of most of the cases.