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Organisations- og Virksomhedsteori 7. Undervisningsgang – 18. marts 2013.

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Presentation on theme: "Organisations- og Virksomhedsteori 7. Undervisningsgang – 18. marts 2013."— Presentation transcript:

1 Organisations- og Virksomhedsteori 7. Undervisningsgang – 18. marts 2013

2 Lectures, Spring 2013 WeekDateSubjectLiterature 528.JanIntroduction to the course 64.FebMultiple PerspectivesMJH, Chap FebWinter holiday 818.FebOrganizations and EnvironmentMJH, Chap FebCancelled 104.MarOrganizational Social Structure + CaseMJH, Chap 4 + Comp 1111.MarCulture + TechnologyMJH, Chap MarOrganizational Power, Control & Conflict + CaseMJH, Chap 8 + IKEA 1325.MarCase Work kick off 141.AprEaster holiday 158.Apr Case work – supervision at ITU 1615.Apr Theory in Practice / New directions in Organization Theory MJH, Chap Apr Strategizing; Intro + Decision Theory Nygaard, Chap Apr Strategizing; Agent- and Transactional cost analysis Nygaard, Chap MayStrategizing; Institutional- Networks theoryNygaard, Chap MayStrategizing; Corporate Systems TheoryNygaard, Chap MayWhit Monday 2227.MaySpare week

3 Musikkonservatoriet 1. Har konsulentfirmaet efter jeres mening brugt de rigtige variabler i bestræbelserne på at kunne diagnosticere strukturproblemer i en organisation 2. Foretag en teoretisk baseret diagnose af de strukturelle problemer på konservatoriet. Hvor er kilden til hovedproblemerne efter jeres mening?? Inddrag gerne sammenligninger fra jeres egne oplevelser fra andre uddannelsesinstitutioner 3. På baggrund af jeres diagnose må i komme med en teoretisk begrundet plan for, hvorledes konservatoriet kan omstrukturere for at løse sine strukturproblemer

4 Power, control and conflict Conflict Power Power relations Control Organizational politics involves those activities taken within organizations to acquire, develop, and use power and other resources to obtain one's preferred outcome in a situation in which there is uncertainty or dissensus about choices One way to think of the relation between power, conflict and control is that conflict is a manifestation between of the continuous struggle over control that power relations imply. Politics

5 Conceptions of power, control and conflict ModernCriticalPostmodern Locus of power Authority (hierarchy), knowledge and the ability to resolve critical organizational problems Social, economic and political structures and ideologies Everyday social relationships, and discursive and non- discursive practices Basis of power The right to control the production and knowhow Challenges the owner/shareholder’s right to profit; favors democracy of stakeholder interests Based on disciplinary power embedded in taken for granted, discursive and non-discursive practices View of Organizations Rational and/or political systemsSystems of exploitation domination, resistance and systematically distorted communication Products and producers of disciplinary power Goal To improve organizational efficiency and effectiveness To emancipate dominated groups and develop democratic and humanistic forms of communication and decision making To interrogate discursive and nondiscursive practices that lead to self-disciplinary behaviors and the marginalization of groups and individuals Implications for control Managerial Control exercised by minitoring the performance of employees through the mechanisms of the market, bureaucracy or organizational culture (clan control) Control exercised through hegemony and systematically distorted communication processes. Employees give active consent to their own exploitation through false consciousness Control exercised through disciplinary technologies and self surveillance – a fear of being watched View on conflict Conflict is counterproductive and should be managed by those in power to maximize corporate performance Conflict is an inevitable consequence of capitalism and its resultant social and economic inequalities. Conflict is necessary for resistance, the overtrow of those in power and radical change Conflict within the network of power relations as groups contest the ability to frame the realities and subjectivities fo others

6 Power AB A has power over B to the extend that he can get B to do something that B would not otherwise do Power is always excersised in the context of relationships; hence power is relational CEO SBU 1SBU 2SBU 3 Staff Autthorative power Other, non-authoratative, sources of power: Personal Charactiristics (charisma) Expertise (skills, knowledge or information needed by others) Coersion (threat / force) Control of scarce and critical material resources Ability to apply normative sanctions (culture) Opportunity (access to powerful persons | Nepotism)

7 Strategies for developing and using power Develop power by Creating dependence in othersCoping with uncertainty on behalf of others - Work in areas of high uncertainty- Prevention - Cultivate centrality by working in critical areas- Forecasting - Development non-substitutable skills- Absorption Developing personal networks Developing and constantly augmenting your experience Use power to Control information flows to others Control agendasControl decision-making criteriaCooptation and coalition building - Issue definition- Long/short term considerations- External alliances - Order of issues- Return vs. Risk- Internal alliances - promote loyal subord.. - Appoint committees - Representations in comm. - Issue exclusion- Choose criteria that favoor your abilities and contributions Bring in outside experts (consultants) to bolter your position

8 Control Serving organizational interests Serving own interests Managers push Output controlBehavioral control Measurement of tanglible work results; # of products produced # of clients served # of errors in production / complaints etc... Knowing which behaviors generates desired outputs, such as enthusiasm, responsiveness and other factors. High focus on social skills in employees and not least their managers. Cybernetic model; Performance evaluation and feedback. Managers ability to harness intentions of subordinates Agent theory; Controlling the motivation and behavior of executives to protect owner interests. Market, bureaucracy, or clan control; Introduces benchmarks and other similar concepts for controlling organizational output and behavior.

9 Three teories of control The Cybernetic model Agency theoryMarket, bureaucracy, or clan control Purpose of control Identify and adjust for any differences between desired and actual individual and organizational performance Ensure that managers act in the best interests of owners Achieve coorporation among individuals Types of control Output and behavioral Output, behavioral and symbolic Control processes 1.Set organizational goals as part of the overall strategic plan 2.Set work targets or standards at each level of the organization 3.Monitor performance (individual and group) against targets 4.Assess and correct deviations 1.Establish a contract between principals and (owners) and agents (managers) 2.Obtain information to ensure agents are meeting their contractual obligations and hence are serving the interests of principals 3.Reward agents for fulfilling the demands of the contract Market – comparision of prices and profit as indicators of economic performance (output control) Bureaucracy – compliance with rules monitored by close supervision (behavioral control) Clan – socializing organizational members in cultural values, norms and expectations (Symbolic control)

10 Conflict and performance Zone 1 Stimulate Conflict Zone 2 Optimal Conflict Zone 3 Reduce Conflict Poorly focused Unmotivated Not well integrated Cohesive Productive Cooperative with other units Uncooperative Distracted Politicized Hostile to other units Work units are:

11 Reducing and stimulating conflicts Reducing conflictsStimulating conflicts Recommended actionImplicit StrategyRecommended action Physical separationAvoidanceAcknowledge repressed conflict Increase ResourcesAvoidance Role model functional conflict through open disagreement and collaborative responses Repress emotions and opinionsAvoidanceAlter established communication channels Emphasize similaritiesSmoothingHold back information NegotiateCompromiseOvercommunicate Appeal to higher authorityHierarchical referralDeliver deliberately ambigous messages Rotate jobsStructural Change Differentiate activities or outcomes among subordinates Physical ProximityConfrontationChallenge existing power structure

12 Interunit conflict model ContextLocal ConditionsObservable indices  Environment  Strategy  Technology  Social Structure  Culture  Physical structure  Group characteristics  Goal incompatibility  Task interdependence  Rewards and performance criteria  Common resources  Status incongruity  Jurisdictional ambiguity  Communication obstacles  Individual differences  Open hostility  Distrust/disrespect  Information distortion  ‘we-they’ rhetoric  Lack of corporation  Avoid interaction Local conditions for interunit conflict modelEnvironment and organization as contexts  Individual differences  Group characteristics resulting from differentiation  Operative-level foal incompatibility  Task interdependence  Rewards and performance criteria  Common resources  Status incongruity  Jurisdictional ambiguities  Communication obstacles  Environment  Strategy  Technology  Social Structure  Organizational culture  Physical structure

13 IKEA Case


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