Goals, power and control

1. Goals, power and control Tirsdag 15. november 2005 Forelesning 4

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

3. Outline • Goal setting in organizations • Decision-making in organizations • Control systems

4. 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)

5. 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

6. 1. Goal setting in organizations • Mintzberg’s typology of strategies • Intended strategies (plans) • Emergent strategies (unplanned action) • Realized strategies (actual action)

7. 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

8. 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

9. 1. Goal setting in organizations • Factors affecting the size and composition of the Dominant Coalition • Owners and managers • Labor • Boundary roles • External actors

10. 2. Decision-making in organizations • Rational decision-making • Strategies / goals • Problem • Possible solutions • Preferences • Decision • Action

11. 2. Decision-making in organizations • Organized anarchies • Garbage can decision-making • Problems • Solutions • Participants • Choice opportunities

12. 3. Control systems • How do organizations make sure that energy is directed towards accomplishing goals? • Power • Authority • Structural control • Culture

13. 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

14. 3. Control systems • Authority • Legitimate power • Endorsed authority • Authorized authority

15. 3. Control systems • Structural control • Technical and bureaucratic mechanisms • Internal rules • Process control • Routines • Standard operating procedures

16. 3. Control systems • Culture • Common norms and beliefs • General missions • Guidelines for action • Can manipulation of corporate cultures be utilized for achieving desired ends?