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Goals, power and control. Tirsdag 15. november 2005 Forelesning 4. Core question. How do organizations define goals, make decisions about action, and control their achievement?. Outline. Goal setting in organizations Decision-making in organizations Control systems.

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Goals, power and control

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Goals, power and control

Tirsdag 15. november 2005

Forelesning 4


Core question

  • How do organizations define goals, make decisions about action, and control their achievement?


Outline

  • Goal setting in organizations

  • Decision-making in organizations

  • Control systems


1. Goal setting in organizations

  • The functions of goals

    • Cognitive (provide criteria for selecting action)

    • Cathectic (provide motivation and identification

    • Symbolic (provide proper signals to the environment)

    • Justification (provide reasons for previous actions)

    • Evaluation (provide standards for evaluating action)


1. Goal setting in organizations

  • Strategies

    • Chandler: “the determination of the basic long-range goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”

      • Goals

      • Allocation of resources

      • Action


1. Goal setting in organizations

  • Mintzberg’s typology of strategies

    • Intended strategies (plans)

    • Emergent strategies (unplanned action)

    • Realized strategies (actual action)


1. Goal setting in organizations

  • Porter’s three generic strategies:

    • Overall cost leadership

    • Differentiation

    • Focus

  • Miles and Snow’s three firm-types:

    • Prospectors

    • Defenders

    • Analyzers


1. Goal setting in organizations

  • The Dominant Coalition

    • Organizations consist of different coalitions (groups with similar interests)

    • Coalitions struggle for control over the organization

    • The Dominant Coalition comprise those coalitions whose interests must be taken into account in order to define acceptable courses of action

    • Organizational goals will be set by negotiations between the members of the Dominant Coalition


1. Goal setting in organizations

  • Factors affecting the size and composition of the Dominant Coalition

    • Owners and managers

    • Labor

    • Boundary roles

    • External actors


2. Decision-making in organizations

  • Rational decision-making

    • Strategies / goals

    • Problem

    • Possible solutions

    • Preferences

    • Decision

    • Action


2. Decision-making in organizations

  • Organized anarchies

  • Garbage can decision-making

    • Problems

    • Solutions

    • Participants

    • Choice opportunities


3. Control systems

  • How do organizations make sure that energy is directed towards accomplishing goals?

    • Power

    • Authority

    • Structural control

    • Culture


3. Control systems

  • Power (Scott’s version)

    • Potential for influence

    • Resource dependency

  • Informal groups

    • Based on characteristics of individuals

  • Formal organizations

    • Power based on position

    • Rational vs natural perspectives


3. Control systems

  • Authority

    • Legitimate power

    • Endorsed authority

    • Authorized authority


3. Control systems

  • Structural control

    • Technical and bureaucratic mechanisms

    • Internal rules

    • Process control

    • Routines

    • Standard operating procedures


3. Control systems

  • Culture

    • Common norms and beliefs

    • General missions

    • Guidelines for action

    • Can manipulation of corporate cultures be utilized for achieving desired ends?


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