Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo Goals, power and control Tirsdag 15. november 2005 Forelesning 4

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo Core question How do organizations define goals, make decisions about action, and control their achievement?

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo Outline 1.Goal setting in organizations 2.Decision-making in organizations 3.Control systems

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 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)

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 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

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 1. Goal setting in organizations Mintzberg’s typology of strategies –Intended strategies (plans) –Emergent strategies (unplanned action) –Realized strategies (actual action)

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 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

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 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

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 1. Goal setting in organizations Factors affecting the size and composition of the Dominant Coalition –Owners and managers –Labor –Boundary roles –External actors

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 2. Decision-making in organizations Rational decision-making 1.Strategies / goals 2.Problem 3.Possible solutions 4.Preferences 5.Decision 6.Action

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 2. Decision-making in organizations Organized anarchies Garbage can decision-making Problems Solutions Participants Choice opportunities

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 3. Control systems How do organizations make sure that energy is directed towards accomplishing goals? –Power –Authority –Structural control –Culture

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 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

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 3. Control systems Authority –Legitimate power –Endorsed authority –Authorized authority

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 3. Control systems Structural control –Technical and bureaucratic mechanisms –Internal rules –Process control –Routines –Standard operating procedures

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo 3. Control systems Culture –Common norms and beliefs –General missions –Guidelines for action –Can manipulation of corporate cultures be utilized for achieving desired ends?