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The Importance of Power and Politics in Organisation Decision-Making

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The Importance of Power and Politics in Organisation Decision-Making
The importance of power and politics in organisation decision-making

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Paper title and number: Organisational Management 152-700

Contents 1. Introduction 3 2. Discussion 3 2.1. Power and politics in decision-making 3 2.2. The distribution of power within organisation 4 2.3. Politics in an organisational setting 5 2.4. The challenges of politics in an organisation 6 2.5. Ethical concerns 7 2.6. Overcoming the dangers of politics 7 3. Conclusions 8 4. Recommendations 9 References 11

1. Introduction 2.1.1. The purpose of this report is to provide the theoretical framework that will underpin training workshops for managers. The report will also outline the organisational objectives of these workshops and identify key texts for the continued development of managers. 2.1.2. Accordingly, this report examines a broad range of literature and outlines key concepts about the relationship between power, politics and decision-making in an organisational setting. This analysis suggests that power is a essential aspect the decision making. In turn, politics is shown to be a necessary process for the management of power in organisations, albeit one that gives rise to ethical concerns. 2. Discussion 3.1. Power and politics in decision-making 3.2.3. Finkelstein (1992), Hickson et al (1971), and Pfeffer (1981) define power as the capacity of individual actors to exert their will. The advantage of this concept is that it recognises that power exists in many contexts, and can be exercised in various settings. As noted by Cavanagh et al (1981) ‘Power is a vital and ubiquitous reality in organizational life’. 3.2.4. Mintzberg et al (1976) builds on this concept by defining power, within the context of organisational decision-making, as the ability to influence ambiguous situations. Essentially, all situations that require a decision to be



References: Brass, D. J. (1984). Being in the right place: A structural analysis of individual influence in an organization. Administrative Science Quarterly , 29, 518-539. Cavanagh, G. F., Moberg, D. J., & Velaquez, M. (1981). The Ethics of Organizational Politics. The Academy of Management Review , 6 (3), 363-374. Clegg, S., Kornberger, M., & Pitsis, T. (2011). Managing & Organizations . London: Sage Publications Ltd. Eisenhardt, K. M., Kahwajy, J. L., & Bourgeois III, L. J. (1997). How Management Teams Can Have a Good Fight . Harvard Business Review , 77-85. Finkelstein, S. (1992). Power in Top Management Teams: Dimensions , Measurement, and Validations. Academy of Management Journal , 35 (3), 505-538. Hannan, M., & Freeman, J. F. (1977). the population ecology of organizations. American Journal of Sociology , 82, 929-964. Hickson, D. J., Lee, C. A., Schneck, R., & Pennings, J. M. (1971). A strategic contingencies theory of intraorganization power. Administrative Science Quarterly , 16, 216-229. Julio, B., & Yook, Y. (2012). Political Uncertainty and Corporate Investment Cycles. The Journal of Finance , 67 (1), 45-83. Miles, R. H. (1980). Macro Organizational Behavior . Santa Monica: Calif. Mintzberg, H., Raisinghani, D., & Theoret, A. (1976). The structure of unstructured decision processes. Adminstrative Science Quaterly , 21, 246-275. Oxford University Press. (2013, January 1). Definitions: Politics. Retrieved April 1, 2013, from Oxford Dictionaries: the world 's most trusted dictionaries: oxforddictionaries.com Pfeffer, J Robock, S. H. (1971). Political Risk: Identification and Assessment. Columbia Journal of World Business , 6 (4), 6-20. Tushman, M. L. (1977). Approaches to organizations: A review and rationale. Academy of Management , 2, 206-216.

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