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Decision Making as a political Process

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1 Decision Making as a political Process
chapter 5 Decision Making as a political Process By Andrew M. Pettigrew 1

2 Introduction Historically ,analyzing organizations as political systems was not a popular issue due to :- 1-Lack of concern with ‘political’ structures of organization & the consequent over-attention to the formal structure of power and legitimacy ( Norton). 2- The problem that none regards himself as a politician or acting so, unless there is occasions of success thru which self-esteem and reputation appear ( Burns 1961). 3- The problem is that those who are politically involved usually claim that they are acting in the interests of the company as a whole.

3 Introduction The approaches in this section regard the sorts of decision-making that the classical ( Rational ) would regard as aberrant ( a deviation from a standard norm) as normal within their organizations.( ex. Pettigrew points underlie Janis points of chapter one) Said approaches view rational model as heavily idealized , it explains what should rather than what actually takes place. Here authors stress the processes , the negotiated and the emergent aspect of organization .They do not see org. as machines designed to achieve their goals but as made up of different groups with different views, priorities , powers , negotiating decisions and outcomes . Here rules and procedures do not always achieve their goals unless they are adapted by employees using them in every day activities.

4 Introduction To Herbert Simon , rationality suffers from :-
Superficiality ,oversimplification and Lack of realism. Failed to bring within its orbits other equally important modes of influence on organization behavior . It did not undertake the tiresome task of studying the actual allocations of decision making functions. It speaks about authority, centralization, spans of control function without seeking operational definitions of them. This section is about this tiresome task. It locates analyses of decision making in models or theories of organizational structures, politics and processes (what organizations are like and how do they work and make decisions). Dimock 1952 saw the executive as a tactician & philosopher who must live by his :- Wits ( reasoning power & mental soundness ) as a leader . Competitive instincts & ability as a leader. Engagement in conflict as a result of overlapping of :- Jurisdiction Competing loyalties Incompatible objectives Strauss calls this the continues office politics (which is attributed to personalities and careerism ) & bureaucratic gamesmanship ( Pettigrew refuses this).

5 Introduction (chapter 5)
The political perspective is clearly identified by Cyert , March & Miller , where they identified theories of decision making that are concerned with politics (Coalition aspect) & processes ( Problemistic search) where an activity is only initiated by an immediate problem rather than an orderly systematic process of search and analysis.( as for Pettigrew) Here , Pettigrew view organizations and decision making as a political arena in which :- A- Organizational units with different or conflicting interest, loyalties and mindsets struggle for advantage with obvious implications for the nature and out come of decision making . B- Political behavior follows the unequal distribution of resources & the creation of specialized loyalties and perspectives thru organizational differentiation. C- Political activity is central to organizational structures and processes : divisions of interest result from the hierarchical nature of power. Power relations & politics originate in the structure & processes of the organization. Structures create specialisms which develop loyalties which in turn breeds politics. The heart of conflict , politics & co-operation is Power.

6 Political behavior, definition
Organization ( According to Pettigrew) :- Is an open political system Division of work creates sub-units that develop interest based on specialized functions & responsibilities Sub-units with specialized task are interdependent. This interdependence is played out within a joint decision making process. Within this, interest–based demands are made and accordingly conflict will rise due to their heterogeneity . Sub-units make claims on scare organizational resources Success of sub-unit will depend on its ability to generate support for its demand in relation to their interests.

7 Political Behavior, Definition
The sub-unit’s level of involvement in the demand-support generating processes within the decision – making processes constitutes the political dimension. Its intensity depends on how the unit perceives the criticalness of the resource to its survival and development. To Pettigrew , political behavior is defined as a behavior of individuals or sub units within organization that makes a claim against resource-sharing system of the organization and that this behavior will continue due to the scarcity of resources. Politics are normal in organizations since their structures and hierarchies systematically produce differences of interests and view points that impact on decision making. Politics involve patterns and relationships of power within organizations. If an organization rewards its units or individuals according to a certain measure (criteria ) , this measure will be a motivator to those who seek resources. Innovation on another hand may threaten the status of some existing units and the existing power distribution may be endangered. This will create resistance (next slide)

8 Political behavior is a special feature of large scale innovative decisions
Decisions likely to threaten existing patterns of resource-sharing May evoke resistance in the joint decision process by threatened departments (old or new) Ex.Programmers & computers Decisions may create new resources that would create new involved departments or individuals. Opportunity to increase their status & rewards in the organization..

9 Political Behavior, Definition
As a result , all those who see their interests threatened by the change will resist and in all ways a new political action is released and ultimately the existing distribution of power is endangered. In a changing technological environment the right to review or to be consulted may be distributed in a manner inconsistent with the distribution of ability and power. This may lead to struggles until a further balance in state of interdependence is achieved.

10 Political Behavior, Definition
To Pettigrew ( Cyert , March & Simon did not see that) :- 1- Information failure ( bounded rationality ) are rooted in structural problems of hierarchy , specialization , centralization and don't just reflect the malfunctioning of thought processes. 2- He distinguishes the political perspective from the notion of office politics ( of Strauss-chapter 7 which is often attributed to careerism and personalities ) and notes that politics are generated by the structure of the organization. 3- Conflict in a joint decision-making process may arise not only as a result of differences in goals and perceptions ( Cyert, March and Simon ) but also with regard to the transference of authority over a particular area from one sub-unit to another.

11 Political Behavior, Definition Political Behavior
4- To Pettigrew , Cyert & March coalition model formation lacks depth of presentation. Little attention is given to how and why coalitions are formed and changed, or to the generation of support and how the structure of the organization might limit such a process. 5- To Pettigrew , in Cyert & March discussion there is no mentioning of organizational structure of the firm and nothing about the membership of the bargaining sub-groups in coalition. 6-To Pettigrew , power is based on consensus between power holders and subordinates. Conflict will take place either to gain or to hold onto power.

12 II. Power , Authority& organizational decision making
Power: The ability of one person or group to cause another person or group to do something that they otherwise might not have done Organizational Politics: Are activities in which managers engage to increase their power and /or to pursue goals that favor their individual and group interests.

13 II. Power , Authority & organizational decision making
Authority : ( Parson) 1- Is the legitimate position of an individual or group. It is the institutional code within which there is a use of power to organize and legitimize . 2- As a basis of power rather than a kind of power. The use of power is restricted entirely to the achievement of collective goals. Giddons(1968) criticized Parson’s view as follows: By treating power as legitimate , thus starting from the assumption of consensus of some kind between power holders & subordinates , he ignored the necessarily hierarchal character of power & the divisions of interest which are consequent upon it . ( so what explains deceptions and corcieve behaviors) According To Giddons : Positions of power also refer to power incumbent’s definite material and psychological rewards, and thereby stimulate conflicts between who want power and those who have it. This will create coercion ( restrains), deceit and manipulation between power players and seekers.

14 II. Power , Authority & organizational decision making
In brief , to many theorists authority has to be enriched with interaction . It is at the point that the leader’s problems begin (Blau-1955). A superior ability to exercise authority depends on the willingness of subordinates to obey. Thus superiors not only controls but also controlled.( Crozier-1964 ) ( seen in later slides)

15 The Dark Side of Power and Politics
Power and politics often have negative connotations because people associate them with attempts to use organizational resources for personal advantage and to achieve personal goals at the expense of other goals.

16 The Bright Side Managers can use power to control people and other resources so that they cooperate and help to achieve an organization’s current goals. Managers can use power to engage in politics and influence the decision-making process to help promote new, more appropriate organizational goals.

17 Sources of Individual Power
Formal individual power is the power that stems from a person’s position in an organization’s hierarchy. Informal individual power is the power that stems from personal characteristics.

18 Sources of Formal Power
Legitimate: The power to control and use organizational resources to accomplish organizational goals. Reward: The power to give pay raises, promotion, praise, interesting projects, and other rewards to subordinates. Coercive: The power to give or withhold punishment, such as suspension, termination, or even the withholding of praise and goodwill. Information: The power that stems from access to and control over information.

19 Sources of Informal Power
Expert: Informal power that stems from superior ability or expertise. Referent: Informal power that stems from being liked, admired and respected. Charismatic: An intense form of referent power that stems from an individual’s personality or physical or other abilities, which induce others to believe in and follow a person.

20 III . Leadership problems.
A superior ability to exercise authority depends on the willingness of his subordinates to obey him ( Crozier) Subordinates are free agents who can discuss their own problems and bargain about them Subordinates do not only submit to a power structure but also participate in that structure. They compare power, wealth & status with that of other groups .

21 Leadership problems A Leader should attain & sustain Legitimacy :-
By adhering to norms & values of his superiors & subordinates. Compliance is a cost that is judged on the basis of social norms and fairness ( Blau ) A superior is expected to symbolize values & standards of the group Must comply with the external environment norms and to be accepted by them if he is to be an effective group representative .Thus sometimes he will be under the pressure to conform to norms contrary to his group’s. Leader is like the village headman’s role

22 Leadership problems A leader should prove competence in helping the group achieving their goals & early conformity to the normative expectations of the members. iv Leader’s interest in group members and in group activity are related to group members willingness to have him continue in that position.

23 IV . A Definition of dependency
B A

24 Dependency: The Key To Power
The Dependency Postulate (Dahl 1957) The greater B’s dependency on A, the greater the power A has over B. Possession/control of scarce organizational resources that others need makes a manager powerful. Access to optional resources (e.g., multiple suppliers) reduces the resource holder’s power. Thus power is a property of social relationships, not an attribute of the actor. An essential aspect of this theory of power is the notion of dependency.

25 Dependency: The Key To Power
What Creates Dependency Importance of the resource to the organization Scarcity of the resource Non substitutability of the resource Thus, imbalance of exchange between individuals creates dependency by the ability of one actor to control thru his possession of resources Dependency can be generated by controlling the access to the resources of information , person and instruments .

26 Dependency: The Key To Power
These resources can make lower participants make higher participants dependants upon them. Ex: State mental hospitals Lower administrative responsibilities of physicians in exchange of increased power of decision making process concerning patients by attendants. Dependence of prison guards on inmates Guards allow violation of certain rules in return of cooperative behavior

27 Dependency: The Key To Power
The influence of subordinates over superiors on non-programmed choices is greater than the influence of superiors over subordinates ( Walter 1966 ) since :- Subordinates know more than they do Ex. technical engineer is able to control the action of his director by setting technical limits on what is able to control & what it is not possible to do. The expert maintain power position, the more is the uncertainty in decisions (Innovative decisions)

28 Dependency: The Key To Power
Ways to reduce expert powers ? 1 . By procedures , Political access & Position. Executive should have ultimate power to hire & fire experts Superior should attempt to reduce his dependency on groups of experts Superior may pick up information from other sources , rivals .

29 V . Theoretical bearings
Political analysis of decision making is explained by reference to both power and authority in the decision process. Individuals can play apart in the social system according to their ability to exert power on others through the control of resources, manipulation and also dependency. As far as all demands should be met , conflict will rise. The final decision will evolve out of the process of mobilization of power and exerted by each party in support of its own demands.

30 Theoretical bearings Individuals by their ability to exercise power over others they can change or maintain structures as well as the norms & expectation upon which the structure rests. Individual behavior govern the ability to shape & mould ( insert in a cavity ) that structure to suit his own interest by having the sufficient power to impose his will on others despite their opposition The weapon of such context are the resources that individuals possess control can manipulate ties of dependency that they can form with others.

31 Theoretical bearings Power strategies are employed through player’s demands. Power strategies are the links between the intentions and perceptions of officials from one side & the political system that imposes restraints and creates opportunities for them from the other side. The more complex heterogeneous & differentiated the disparities is , the more likely are disparate demands to be made. Disparities (Distinct ) are product of Organizational position Professional training Adherence to sub-groups A joint decision process involving an inclusive leadership system will be characterized by disparate demands . The processing of demand & the generation of support are the principal components of the general political structure through which power may be wielded ( handed , used ) .


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