1. Click to edit Master title style Click to edit Master subtitle style 15/11/20151 Power and Control

2. Objectives: 1.To be introduced to mainstream and critical perspectives of power and control 2.To understand the relationship between control and power 3. To describe the primary methods of organizational control 4. To apply Hopwoods’ model of control

3. Mainstream approaches: Introduction Political behaviour – Extends beyond the formal authority that accompanies a person’s position in the chain of command – Involves the informal use of power to cultivate allies and control information – Is directly linked to decision making Incorporates both unitarist and pluralist perspectives

4. Unitarism and Pluralism Unitarism – Assumes the view of top management shared by all employees – Conflict the result of poor communication by management or the intervention of ‘troublemakers’ (e.g. unions) – Aims is eradication of conflict Pluralism – Recognises a diversity of interests in an organization – Conflict inevitable and normal – Aims is negotiation and bargaining over competing interests

5. Key concepts in the classical (unitary) tradition Focus on the formal structure of the organization Concern to identify the right formal organization Belief in the existence of one best form of organization Seeking to describe organizational rules, often called principles Belief that organizational principles are applicable to all types of formal organization Keenness to identify the best way of dividing up the task to be done Stress on the need for clarity in role specification and performance Placing emphasis on hierarchical control and similarities between members Insufficient attention paid to the diversity of problems experienced in different types of organizations

6. Assessing power

7. Primary Types of Mainstream Organizational Control (Hopwood) Administrative controls: Mechanisms, techniques and processes that are consciously and purposefully designed in order to control the behaviours of individuals, groups and organisations Social control: Process through which obedience, compliance and conformity to predetermined standards of behaviour are achieved through interpersonal and group processes Self-control: Norms embodied in administrative or social controls must be either directly or indirectly internalised by the members of the organisation and operate as personal controls over attitudes and behaviour

8. Hopwood’s Model of Control “Accounting & Human Behaviour” 1974 Organisation Controls Social Controls Self Controls Admin Controls

9. Difference between social control and administrative control Where management attempts to disseminate a culture through consciously designed, planned strategies to regulate and inculcate particular systems of belief and meaning in subordinates – this is administrative control Socialisation is the informal area of social control. It is not the result of a planned strategy but arises spontaneously out of everyday social interaction among members.

10. Administrative controls  Top-down authority, with emphasis on positional power  Emphasis on extrinsic rewards (wages, pensions, status symbols)  Activity-based job descriptions that prescribe day-to-day behaviour Attempt to constrain and influence employees by either specifying of influencing: Value premises of behaviour Training; Recruitment and Selection How tasks are performed Rules, procedures Output consequences of performance Budgets; MBO

11. Social controls and self-controls Socialisation Values; norms; organisational stories Group goals and norms Emphasis on meaningful work (intrinsic rewards)

12. Perspectives on power ‘’... Capability of an actor to achieve his or her will, even at the expense of others who may resist him...’’ ‘’...power should be seen as a property of the collectivity...’’

13. Sources of Power Based upon French & Raven’s model Power PersonalStructural

14. Elements of personal power Expertise Legitimate Referent Rewards/ coercion Association

15. Elements of personal power SourcesDefinitionStrategies ExpertiseKnowledge and skills which others see as relevant to task accomplishment and which the individual is seen as possessing Obtaining credentials or ongoing experiences which others respect LegitimateFormal position and roles which define responsibilities and appropriate scope of activity Ensuring roles and expectations are clear and recognised as legitimate ReferentPower which comes from trust and commitment given to an individual because of his/her personal traits and characteristics Build respect and trust through personal integrity, charisma Rewards/ coercionBehaviours which reward or hurt others but which ensure compliance and buy-in Accumulating things of value to others or punishment which can harm others AssociationInfluence which comes from knowing powerful people Networking and developing connections and associations

16. Elements of structural power Emphasis moves away from personal power (that is ascribed to the individual), towards an understanding of the power that rests in the position or location an interest group, sub- unit, or department holds in the structure of the organisation

17. Elements of structural power Control of scarce resources Centrality Visibility Coalitions Flexibility/ autonomy

18. Elements of structural power SourcesDefinitionStrategies Control of scarce resourcesAbility to allocate resources (information, money etc.) among groups with competing interests Obtain positions which are responsible for distribution and allocation of resources CentralityTasks or positions which are in the middle of a communication network Obtain central positions where others are dependant on you VisibilityPositions which are seen by those of power and influence in the organisation Seek out tasks which have a high profile CoalitionsPower which comes from building support from groups with similar interests Systematically seek support from others based on an analysis of their interests Flexibility/ autonomyPositions which are characterised by discretion in decision-making, work assignment Seek out tasks which are not routine and which contain autonomy and room for independent decision-making

19. Mainstream structuralist approach Shares the pluralist assumption that organizations are complex social units where individuals interact Focuses on the conditions which determine the decisions that can be made Demonstrates the large influence of organizational structures on decision making

20. Mainstream approaches: Limitations Classical (unitary) – Fail to recognise the importance of power, competition, conflict and limits to rationality Pluralist and mainstream structuralist – Acknowledges diverse interests, competition and conflict but conception of power is shallow Politics and negotiations are minor issues and do not challenge prevailing structures Managers are not presumed to have their own interests Big issues of conflict (e.g. poverty, the environment) are marginalized

21. Critical approaches: Overview Connect politics and decision making to the wider political and economic context – Assume that internal dynamics reflect broader patterns of power and inequality in society E.g. Marxist analysis links work organizations to the dynamics of the capitalist system

22. A critical approach to power Seeks to question existing structure of power relations Sees politics as necessary to secure compliance/consent Perceives power as a relationship, where its use is dependent on compliance/consent

23. Case study: The story behind the water in Walkerton, Ontario

24. Case study question Using Hopwood’s 3 primary types of organisational control analyse the Walkerton, Ontario case study And finally… if you have any questions regarding your assignment please ask