GRA 6820 Political Aspects of Decision Making (Harrison, Ch.9)

1. GRA 6820Political Aspects of Decision Making(Harrison, Ch.9) GRA 6820 Strategic Choice

2. Overview of chapter 9 • A profile of power • The managerial decision-making class • Conceptual foundations of political power • Profiles of political power in decision-making • Dimensions of managerial decision-making power • Constraints on managerial decision-making power GRA 6820 Strategic Choice

3. Metaphor analysis • Management theories provide only a partial view of what organizations are like. • Definition: metaphor • A figure of speech by which a thing is spoken of as being that which it only resembles. • The idea of “likeness”, as used in metaphor analysis, helps to gain insights into difficult to understand phenomena or issues in terms of things we are familiar with. • Types of metaphors used in strategy and organization • Machine • Organism • Brain • Culture • Politics GRA 6820 Strategic Choice

4. Political metaphor • When applied to problem situations, the relationships between individuals and groups are considered as competitive and involving the pursuit of power. • Focuses on issues of... • Interests • Conflict • Power GRA 6820 Strategic Choice

5. Highlights all organizational activity as interest-based, emphasizes the important role of power in determining political outcomes - power is at the center of all organizational analysis. Emphasizes that goals may be rational for some, but not all actors. Proposes disintegrative strains and tensions. Encourages recognition of the organizational actor as political for motivational and structural reasons. When explicit recognition of the politics of the situation leads to further heightening of tension and mistrust. May over-emphasize the need to deal with political issues at the expense of other factors essential for organizational health. Political metaphor assessment When is it useful? When is it not useful? GRA 6820 Strategic Choice

6. Power Some definitions… • Power is the probability that one actor within a social relationship will be in a position to carry out his own will, despite resistance, and regardless of the basis on which this probability rests. (Weber, 1947). • Power is the ability of persons as groups to impose their will on others despite resistance through deterrence either in the form of withholding regularly supplied rewards or in the form of punishment inasmuch as the former, as well as the latter, constitutes in effect negative sanction. (Blau, 1964). • Power is defined as a force that results in behavior that would not have occurred if the forces had not been present. (Mechanic, 1962). • A has power over B to the extent that he can get B to do something that he otherwise would not do. (Dahl, 1957). • [Power is] the ability of one person or group of persons to influence the behavior of others, that is, to change the probabilities that others will respond in certain ways to certain inputs. (Kaplan, 1964). • Power is latent force…Power itself is the prior capacity which makes the application of force possible. (Bierstedt, 1950). • Power we may define as the realistic capacity of a system-unit to actualize its interests within the context of system-interaction and in this sense exert influence on processes in the system. (Parsons, 1955). GRA 6820 Strategic Choice

7. Social control and social order • Not simply a function of people conforming to the demands of others, to divine precepts, to natural law or to fixed norms of an equilibrial or homeostatic system. • Whatever control or disorder that exists at any time in a society is a function of the interrelations and interactions of the components of an on-going system process. GRA 6820 Strategic Choice

8. Terminology • Power • Inherently coercive (tvingende). • Implies involuntary submission. • Influence • Persuasive (overtalende). • Implies voluntary submission. GRA 6820 Strategic Choice

9. Content dimensions of power:Authority and influence • Authority is the static, structural aspect of power in organizations; influence is the dynamic, tactical element. • Authority is the formal aspect of power; influence is the informal. • Authority refers to the formally sanctioned right to make final decisions; influence is not sanctioned by the organization and is, therefore, not a matter of organizational rights. • Authority implies submission by subordinates; influence implies voluntary submission and does not necessarily entail a superior-subordinate relationship. • Authority flows downward and is unidirectional; influence is multidirectional and can flow in any direction. • The source of authority is solely structural; the source of influence may be personal characteristics, expertise, or opportunity. • Authority is circumscribed, that is, the domain, scope and legitimacy of the power are specifically and clearly delimited; influence is uncircumscribed, that is, its domain, scope and legitimacy are typically ambiguous. GRA 6820 Strategic Choice

10. Theoretical basis of power • Social exchange theory • Efficient way to examine social relationships. • Power is a central aspect of an exchange approach to social relationships. • Dependence is what makes exchange an integral part of any social relationship. • Economic - Supply and Demand • Political GRA 6820 Strategic Choice

11. Pluralist Basic interest compatibility. Some divergence of values and beliefs. Not necessarily in agreement on ends and means. Participative decision making. Act in accordance with agreed objectives. Coercive Do not share common interests. Values and beliefs likely to conflict. No agreement on ends and means. Use of coercion and power. No agreement on objectives. Organizational typologyRelationships • Unitary • Share common interests. • Compatible values and beliefs. • Agreement on ends and means. • Participative decision making. • Act in accordance with agreed objectives. GRA 6820 Strategic Choice

12. Unitary and pluralist views of interests, conflict and power GRA 6820 Strategic Choice

13. Theoretical perspectives • Rationalists • Satisficers • Organizationalists • Politicians • Individualists GRA 6820 Strategic Choice

14. School of Thought:The Rationalists • Main elements... • The individual is confronted with a number of different specified alternatives. • Each alternative is associated with a set of consequences that will result if that alternative is chosen. • The individual has a system of preferences of utilities. • No descriptive support for this conception of decision making. • The rational choice concept defines the logic of optimal choice. GRA 6820 Strategic Choice

15. School of Thought:The Satisficers • Main elements... • We generally do not have a choice between satisfactory and optimal solutions. • We are limited in our ability to generate and compare all possible alternatives. • The best alternative cannot be recognized. • We “satisfice” by looking for alternatives in such a way that we generally find an acceptable one after a moderate search effort. • Most problem solving strategies are based on heuristics. • Heuristics reflect “bounded rationality.” GRA 6820 Strategic Choice

16. School of Thought:The Organizationalists • Main elements... • Considers the effect of organizational structure and conventional practice. • The organization is made up of coalitions with separate priorities, goals and focus of attention. • Decision making necessarily involves bargaining among these coalitions. • Large scale problems are factored into sub-problems. • System designers must identify the sub-units and their standard behavior patterns. • Specialization is generally more efficient for a given problem, but may impede integrating, changing or evolving the organization. GRA 6820 Strategic Choice

17. School of Thought:The Politicians • Main elements... • The entire decision process is pluralistic. • Decision makers are multiple actors with no consistent set of strategic objectives. • Power, advocacy and consensus are legitimate and important aspects of decision making. • This view stresses the importance of the implementation process - the issue is not so much design as how to introduce, position and use the system. GRA 6820 Strategic Choice

18. School of Thought:The Individualists • Main elements... • People have specialized styles of decision making. • Outcomes of the decision process are affected by these individual characteristics. • Any analytic aid proposed for a decision maker must be consistent with the individual’s decision making style. • The decision making process must “mesh” with the cognitive structures of the individual. • This perspective suggests that decision makers be looked at as they are, not as they should be. GRA 6820 Strategic Choice

19. Strategic decision making theories Model I: Rational choice and cognitive processes Model II: Organizational processes Model III: Political processes GRA 6820 Strategic Choice

20. Improve problem comprehension by providing frameworks Improve problem comprehension by clarifying decision makers’ own frameworks BCG Matrix Market Life Cycles Industry analysis Multiple scenarios Decision analysis Influence diagrams Cognitive mapping Categories of normative prescription Model Goal Sources of normative prescriptions Model I: Rational choice and cognitive processes GRA 6820 Strategic Choice

21. Increase the quality of scanning and formulation processes Formal planning systems Regular, Irregular, and Continuous Scanning Structural perceptions Categories of normative prescriptions Sources of normative prescriptions Model Goal Model II: Organizational processes GRA 6820 Strategic Choice

22. Dependence Reduction/ Autonomy Strategies Stakeholder Management Strategic Assumptions Analysis Integrating social responsibility into planning Logical Incrementalism Social Response Matrix Intensity Diffusion/ Convergence Analysis Cultural Risk Management Improve stakeholder representation and management Categories of normative prescriptions Sources of normative prescriptions Model Goal Model III: Political processes GRA 6820 Strategic Choice

23. P1 P2 P3 P4 P5 P6 Combining multiple perspectives via structured conflict and the Devil’s Advocate Facilitator’s intervention Assigns to groups Assists in development Preliminary development, debate and consensus Model I views Discussion and debate of different views Development, debate and consensus Model II views Final synthesis Development, debate and consensus Model III views Consensus and commitment building P = Individual perspective on a particular strategic problem. GRA 6820 Strategic Choice

24. Existing or anticipated problem, opportunity, or crisis External influences Analogy Internal political structure Interpretations Cognitive biases Individual strategic and structural dimensions Existing systems and structures Political maneuvering Strategic assumptions and cognitive frames Combination or synthesis Strategic change Integrating the three perspectives Cognitive perspective Organizational perspective Political perspective GRA 6820 Strategic Choice