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Power, Politics,

Organizational Decision Sources of Conflict


Making • Goal Incompatibility

• Differentiation

• Task Interdependence

• Limited Resources

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Rational versus Political Model Vertical Sources of Power


• The rational model where behavior is not random • Formal Position – legitimate power accrued to top positions
or accidental
– Goals are clear and choices are made logically • Resources – resources can be used as a tool for power

• Control of Information – information is a primary business source


• The political model involves push and pull debate
regarding goals • Network Centrality – being centrally located in the organization and
– Organization groups have separate interests and goals having access

• People – loyal executives/managers

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Horizontal Sources of Power Political Processes in Organizations
• Relationships across departments, divisions, • Politics is the use of power to influence
units decisions toward goals
– Dependency
• Organizational Politics - activities to acquire,
– Financial resources develop, and use power to influence goals
– Non-substitutability
– Centrality
– Ability to cope with uncertainty

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Organizational Decision
Individual decision making
Making
• Consists of
1. Problem Identification • Rational approach – ideal method for managers to
2. Problem Solution make decisions
– Monitor environment → define problem → specify
• Decisions could be objectives → diagnose → develop alternatives →
– Programmed – repetitive and well defined evaluate alternatives → choose best alternative →
– Non-programmed Decisions – novel and poorly defined implement

• Bounded rationality perspective – how decisions


are made under severe time and resource
constraints

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Organizational Decision Management Science Approach
Making • Problem clear & unambiguous

• Options fully known

✓Management Science Approach


• Preferences Clear and Stable
✓Carnegie Model
• No time/ cost constraints
✓Incremental Decision Model
• Payoff can be calculated
✓Garbage Can Model

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Carnegie model Incremental Decision Model


• Focus on structured sequence of activities from
discovery to solution
• Large decisions are a collection of small choices
• Decision interrupts are barriers
– Identification Phase
– Development Phase
– Selection Phase
– Dynamic Factors
• Works better when solution is uncertain

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Garbage Can Model
• Organizations as organized anarchies
– Inconsistent and ill-defined purposes (unclear goals)
– Unclear technology (trial-and-error, accidents of past experience)
– Fluid participation (vary in time and effort)

• In such situations axioms and standard procedures of


management collapse

• Model for describing decision making in organized


anarchies

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