Power in and around organizations
45 important questions on Power in and around organizations
Explain Marx's theory of capitalism and class conflict
Marx's theory states that capitalism leads to the domination of one social class (the proletariat) by another (the bourgeoisie), hence creating societies and organizations with class conflict.
Class conflict is evident in industrial organizations as labour is dependent on capital and hence the capitalists have power over the workers
Class conflict is evident in industrial organizations as labour is dependent on capital and hence the capitalists have power over the workers
Explain the concept of Labour power - Marx
Labour power implies that capitalists depend on workers and this power can be used by workers to challenge the authority of owners and managers and demand a share of the profits they help create
Explain the concept of false consciousness -Marx
False consciousness ; by accepting the terms of employments set by capitalists, workers are complicit (betrokken) in their own domination
False consciousness manifests itself in the commoditization of labour.
False consciousness manifests itself in the commoditization of labour.
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Explain the theory of commoditization of labour
Commoditization of labour is a theory that when labour accepts work for payment, they are transferred into a commodity (koopwaar)
What is Marx's prediction about capitalism?
It will fail because labour has the power to resist ultimately and destroy the domination of capitalists.
What is the humanist view on organizational practices
Humanists want both organizational practices that promote both organizational success and respect for workers. Humanists identity cooperation as the distinctive characteristic shared by all successful organizations
Theories of cooperation.
Explain the first theory: Chester Barnard
Barnard defines organizations as systems of cooperation and this is critical for the survival of the organization.
Cooperation is achieved by meeting objectives efficiently as it motivates the members. The reason that organizations rarely survive more than 100 years is because it is difficult to maintain cooperation.
Cooperation is achieved by meeting objectives efficiently as it motivates the members. The reason that organizations rarely survive more than 100 years is because it is difficult to maintain cooperation.
Theories of cooperation.
Second theory: Mary Parker Follett
Follett proposed the idea that capitalism relies on human ingenuity (talent) and not domination.
Conflicts can be solved in ways that satisfy all parties through cooperation. This is more beneficial than solving problems through domination or compromise, which satsify either one or neither of the parties,
Conflicts can be solved in ways that satisfy all parties through cooperation. This is more beneficial than solving problems through domination or compromise, which satsify either one or neither of the parties,
What is the modernist view on relationships and power in organizations
Modern theories propose the idea that power is relational and is produced from relationships between actors.
Hence, defining relationships increases in importance
Hence, defining relationships increases in importance
Explain the concept of Formal authority
This is part of the organizational hierarchy and flows from top to bottom
Power associated with formal authority is assigned to the position in the hierarchy, not the person who holds the possition
Power associated with formal authority is assigned to the position in the hierarchy, not the person who holds the possition
Explain the concept of IN-formal sources of power
Informal power facilitates bottom-up influences.
This source of power operates alongside the channels of formal authority
This source of power operates alongside the channels of formal authority
Give 5 informal sources of power
1) personal characteristics
2) expertise
3) Coercive force
4) Ability to apply normative sanctions
5) Opportunities
Informal power uses person's resources while formal does not
2) expertise
3) Coercive force
4) Ability to apply normative sanctions
5) Opportunities
Informal power uses person's resources while formal does not
Explain the concept of rational decision-making
Involves the definition of the problem, collection and analysis of relevant information and then the use of this information to generate, evaluate and select a suitable solution. The decision should be made using criteria defined by organizational objectives.
Rational decision making in real life, explain the shortcomings of people!
Decision making does NOT follow the rational model because decision makers may not: agree on the organizational goals, possess all the information needed to make rational choice or have the information-processing capacity and time needed to take account of all the complexities
What is the result of bounded rationality? Regarding decision-making
Those with the most power dominate decision-making processes. As a result, like-minded individuals form coalitions in support of their jointly favoured options
Explain the strategic contingency theory
According to the strategic contingency theory: individuals or units derive power when they are able to provide something the organization needs.
However, power is linked not just handling uncertainty but handling uncertainty that otherwise would negatively affect the organization.
Power is also increased when no other unit is able to perform the coping activity. The coping activities for uncertainty include prevention and forecast.
However, power is linked not just handling uncertainty but handling uncertainty that otherwise would negatively affect the organization.
Power is also increased when no other unit is able to perform the coping activity. The coping activities for uncertainty include prevention and forecast.
Explain the resource dependency theory
The resource dependency theory recognizes that internal political processes occur independently of environmental contingencies.
Already powerful institutionalized actors can subvert the resources and power redistribution to those who want to use newly acquired power.They are able to stabilize the existing structures of power despite facing changing circumstances.
An important implication of this theory is that institutional and political power relations can make an organization LESS responsive to its environment
Already powerful institutionalized actors can subvert the resources and power redistribution to those who want to use newly acquired power.They are able to stabilize the existing structures of power despite facing changing circumstances.
An important implication of this theory is that institutional and political power relations can make an organization LESS responsive to its environment
Explain why symbols are important to the dynamics of power relationships
Symbols are important to the dynamics of power relationships because they can be used to support and maintain actor's positions in the hierarchy (example- salary)
Explain the concept of symbolic power
Symbolic power mechanisms is used by culture to supports domination and hierarchy
What is an (organizational) conflict?
A conflict is experienced when an actor perceives the outcomes of other actors as interfering with their own. Conflict is often supported by power and politics.
Organizational conflict is the struggle between two or more individuals or groups in an organization or between organizations.
Organizational conflict is the struggle between two or more individuals or groups in an organization or between organizations.
Explain the relationship between conflict and performance
Conflict can both benefit and hinder organizational performance. The relationship conflict bears to performance is curvilenear.
Too little conflict and too much conflict will result in poor organizational performance but an intermediate range of conflict will produce optimal performance.
This is because intermediate levels of conflict stimulates ideas and points of view, strengthens ingroup chohesiveness and minimizes the negative effects of uncooperative behavior and open hostility.
If there is little or no conflict, people are unfocused and unmotivated.
Too little conflict and too much conflict will result in poor organizational performance but an intermediate range of conflict will produce optimal performance.
This is because intermediate levels of conflict stimulates ideas and points of view, strengthens ingroup chohesiveness and minimizes the negative effects of uncooperative behavior and open hostility.
If there is little or no conflict, people are unfocused and unmotivated.
Explain the inter-unit conflict model
This model identifies potential sources of conflict at multiple levels of analysis. The model proposes the theory that the environment and organization are contexts that enable the local conditions for conflict.
The conditions for conflict can evolve into an actual conflict. Observed conflict can be analyzed by referencing their local conditions and contexts.
The conditions for conflict can evolve into an actual conflict. Observed conflict can be analyzed by referencing their local conditions and contexts.
Why is the observation of conflict difficult?
Because humans use psychological defense mechanisms and other strategies to disengage from overt conflict.
These defense mechanisms include avoidance and smoothing.
Therefore, conflict does not present itself overtly every time. The observable behaviors associated with conflict are on the right side of the figure.
These defense mechanisms include avoidance and smoothing.
Therefore, conflict does not present itself overtly every time. The observable behaviors associated with conflict are on the right side of the figure.
What is the inter-unit conflict model used for and what are the benefits?
The model is primary used as a diagnostic tool as not all factors need to be present for there to be conflict, but the factors are useful for analyzing conflicts.
The model is beneficial for profiting strategies to lower or raise the level of conflict after the source of conflict has been identified
The model is beneficial for profiting strategies to lower or raise the level of conflict after the source of conflict has been identified
What is the modern perspective on organizational control?
Managers use their power to control workers.
Control processes help circumscribe idiosyncratic behavior -which ensures that members conform to the rational plans of the organization.
Therefore, organizational control is necessary because of the diversity of motivations among the employees who join the organization and the consequent problem of aligning these interests to best serve the organization's objectives.
Control processes help circumscribe idiosyncratic behavior -which ensures that members conform to the rational plans of the organization.
Therefore, organizational control is necessary because of the diversity of motivations among the employees who join the organization and the consequent problem of aligning these interests to best serve the organization's objectives.
What is the goal of cybernetic control and how does the system work?
Goal: align the organizational and individual goals.
The system is designed by first setting goals and measures of these goals to assess progress towards a desired level of performance. If an employees deviates from the desired level, they are provided with feedback of either rewards and punishments depending on the situation. The system controls an organization's performance by constantly adjusting the organization to ensure performance optimization.
The system is designed by first setting goals and measures of these goals to assess progress towards a desired level of performance. If an employees deviates from the desired level, they are provided with feedback of either rewards and punishments depending on the situation. The system controls an organization's performance by constantly adjusting the organization to ensure performance optimization.
What does the cybernetic control measures?
Cybernetic control requires measurements that motivate employees to meet the organization's goals and therefore key variables relating to performance have to be defined, ope-rationalized and measured.
The organization can either measure outputs directly or can measure the behavior that achieves outputs
The organization can either measure outputs directly or can measure the behavior that achieves outputs
When does behavioral control works best?
Behavioral control works best when behavioral indicators are known to relate to desired outcomes. Therefore, measuring behavior is a substitute for measuring output
How do cybernetic control systems control organizational performance?
By linking behavior to desired outcomes.
The link is supported by sanctions for deviating from established performance standards.
System that sanctions employees can contribute to power and politics. Rewards symbolize powers and the outcomes of cybernetic control can affect group and individual politics.
The link is supported by sanctions for deviating from established performance standards.
System that sanctions employees can contribute to power and politics. Rewards symbolize powers and the outcomes of cybernetic control can affect group and individual politics.
Organizations apply cybernetic control at multiple levels,
which 3?
Group level:
Organizational level:
Environmental level:
Organizational level:
Environmental level:
What is a problem within the cybernetic control system and how can one overcome this?
The altering of the control system itself requires the intervention of managers - agency problem.
The agency problem can be overcome through design control systems that ensure agents act in the best interests of principles.
The primary control is contracts that specify goals that are monitored and sanction that reward or punish the agent's performance
The agency problem can be overcome through design control systems that ensure agents act in the best interests of principles.
The primary control is contracts that specify goals that are monitored and sanction that reward or punish the agent's performance
Explain the concept of information asymmetry within the agency theory
The idea that the ability of principles to monitor the performance of their agents depends upon the amount, relevance and quality of information available to them.
Agents control the information in the control system and therefore place principles at a disadvantage by manipulating the information on which principles monitor and assess them.
Information asymmetry can be corrected by choosing behavioral or outcome controls
Agents control the information in the control system and therefore place principles at a disadvantage by manipulating the information on which principles monitor and assess them.
Information asymmetry can be corrected by choosing behavioral or outcome controls
1)Explain the concept of transaction costs within the exchange of goods and services
2) what happens when the market fails?
Transaction costs associated with the exchange of goods and services are the costs incurred to overcome market imperfections (communication and market fees).
However, when the market fails, transaction costs rise and competition no longer controls it. The control over transaction costs switches to bureaucratic control that is exercised through rules and procedures, formal job specifications and the hierarchy of authority.
Explain the concept of clan control
and explain the link with transaction costs
Clan control controls members of an organization through cultural norms, values and beliefs.
Clan control is established by socializing new members of the organization to help internalize the cultural understandings.
If clan control established, the organization will require much less monitoring and therefore transaction costs will reduce.
Name the three additional types of organizational control
(besides clan control)
1) Coercive control: the threat of force to align behavior with organizational objectives
2) Remunerative control: the power to provide or withold payment for labour through wages and salaries. This is the primary form used by modern economic organizations
3) Normative control: the power of cultural values and assumptions to control how members perceive, think and feel
Explain the main goals of the
cybernetic theory
agency theory
and transaction cost theory
Cybernetic theory: align actual with desired performance
Agency theory: ensure agents act in the best interests of owners
Transaction cost theory: use type of control that minimizes transaction costs
The theory of communicative rationality
Incorporates practices such as open debate and consensus. However, instrumental rationality undermines communicative rationality because it meets the logic of efficiency better, which is a widespread desired logic.
What is disciplinary power?
The internalized effects of surveillance that manifest as discipline. Disciplinary power can be used in organizational cultures and clan control.
Surveillance leads to self-surveillance through two complementary mechanisms, which two?
Gaze: the theory that if one knows they are being looked at, they feel objectified and anxious. The gaze sets up the expectation of surveillance.
Interiorization: the incorporation of an idea into one's life
Circuits of power are techniques of discipline and production which reinforce the status quo, name 3 circuits of power
1) episodic circuit; located in daily interactions
2) Dispositional circuit: located in socially constructed rules
3) Facilitative circuit: located in systems and mechanisms that include technology, work and rewards
The three circuits intersect and lead to the empowerment of disempowerment of groups who use them, this can also be done in organizations
Explain in the context of cultural globalization, deterritorialization
The loosening of subjectivity and identity from institutions of modernity. The borders of these institutions are breached by new technologies of communication and transport.
Deterritorialization is caused by the discovery and use of escape routes; which in turn loosen the control of social structures from within its own borders.
What does the dual labour market theory argue?
That the market for labour ois composed of primary and secondary sectors
This duality is explained that employers want to remain competitive and therefore employ qualified workers. These qualified workers must be compensated with substantial benefits. The high costs are therefore offset by employing unskilled workers to perform less central tasks who can therefore be given less pay.
Explain the concepts of primary and secondary sectors
Primary: high wages and good career opportunities
Secondary: lower wages and poor employment conditions, such as lack of job security
Explain the theory of double strangeness
the theory that Women penetrate a male dominated labour market they can only do to a certain extent because they are compromised by another factor, such as being a foreigner.
What are gendered organizations
Organizations characterized by gender inequality. Organization theory is also gendered
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