B300A MTA Sample Questions

B300A - SAMPLE QUESTIONS

The answers to this random sample of questions focus on the course concepts and

models. Students are encouraged to use examples from the B300 course materials and

from you’re their experience (this could be workplace related or from materials they have

read or learned about outside B300) in their answers.

DECISION MAKING MODEULE

QUESTION ONE

Organisational culture can be defined as a set of people sharing many beliefs, values

and assumptions that encourage them to make mutually reinforcing interpretations

of their own acts and the acts of others. Discuss the implications of this view for the

process of organisational decision making. Support your answer with appropriate

concepts and examples from the B300 course materials

MODEL ANSWER:

This question refers mainly to section 3 of Module One and in particular chapter 12 by

Bate. The question does not quote directly from Bate, but the concept of culture as the

manifestation of shared beliefs, values and assumptions as highlighted in the question

should be recognisable by students as coming from Bate's work.

The overall objective of the question is to allow students to demonstrate that they

understand this definition of culture and that they can appreciate that if this particular

definition of culture is accurate, there are significant implications for the way that

decision-making occurs within organisations. Therefore, the question requires students to

clearly demonstrate their understanding of the meaning of culture and then to discuss the

implications of this understanding on the decision making process.

Better answers may show a more critical approach to this question, possibly by noting

alternative explanations for approaches to decision-making discussed earlier in the

module. Through the application of suitable examples they should demonstrate their

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understanding of the implications for organisational decision-making rather than just

being descriptive.

In any definition of culture, students are expected to show their appreciation of the

following key areas, based upon Bate’s chapter:

that it is implicit and unobservable, but it is present within an organisation. By

implication, organisations need a clearly defined culture to enable individuals to

fit in and understand what is required of them

organisational culture is shared, implying common ideas, meanings and values

subscribed to collectively

that it is transmitted by a process of socialisation, which is a process of

conformity with patterns of behaviour emerging from the organisation's past

hence, organisational culture emerges from within and is sustained by the

organisation rather than being imposed upon it from above or outside.

The process of defining culture requires students to also discuss how the above

characteristics of culture can produce the ‘mutually reinforcing interpretations’

mentioned in the title.

For the second part of the answer, students should consider the implications, which can

have benefits as well as the negative aspects which is the focus of Bate’s research.

Bate’s work strongly identifies potentially negative implications for the effect of

organisational culture on decision making processes. The shared process by which the

understanding of an issue is built in an organisation establishes a culture which delivers

an inflexible approach to decision-making. This means that people make similar

assumptions and analyses and come to similar conclusions and, instead of seeing this as a

potential danger, they find it reassuring that they all come to the same conclusion.

By implication, therefore, decisions are not necessarily taken because they are right, but

can be taken because they fit in with the dominant expectations and perceptions of

managers within the organisation. Bates argues that not only does organisational culture

limit options in the decision-making process, it can create an environment in which

employees feel disempowered either by the dominance of the culture or by a negative

application of the culture and hence actively disengaged from the process.

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This is a pessimistic perspective, as the use of terms such as ‘socialised helplessness’

imply.

This implies the potential for managers to become entangled in ways of relating to

decisions which discourage challenge, review, analysis and learning. These are all the

elements of a decision-making process which we would emphasise as being good and

necessary for organisations to remain in tune with their competitive environment. This is

the key issue we hope to see students engage with.

Better students will note that Bate’s research and findings are only based on three

organisations during a very turbulent time within the British industrial context. Examples

of, with evidence, positive organisational cultures will be highlighted by better answers.

QUESTION TWO

Decision making in organisations tends not to be the product of economic

rationality. What are the main reasons for this? Support your answer with

appropriate concepts and examples from the B300 course materials

MODEL ANSWER:

The overall objective of this question is for students to show their understanding of the

limited extent to which the rational model underpins how organisational decisions are

made in practice. Students are expected to show an understanding of the concept of

economic rationality and how its main characteristics, or assumptions, are interpreted into

organisational decision-making behaviour.

Thus a brief but accurate description of the main assumptions that underpin the rational

model is an appropriate start, namely that:

economic efficiency becomes the sole objective of the organisation, which drives

organisational decision-making processes

individuals act as profit maximisers, that is, maximise rewards and minimise

costs. The assumption is that this transfers the concept of economic rational man

to a group situation

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‘perfect’ knowledge is available

the decision-making process follows a linear, step-by-step, logical approach, in

which all options are carefully considered and evaluated.

There is a well-defined problem or objective with clear criteria for choosing the

option which maximises economic gain.

The main point of the question suggests that the rational decision-making processes may

be the exception rather than the rule. Students should be identifying the reasons for this.

Some of the main reasons for not following economic rationality for decision making

processes are:

The assumptions underpinning the economic rational model either do not hold in

reality or they are too inflexible, e.g. individuals (acting singly or collectively) are

not profit maximisers; perfect knowledge is unrealistic and individuals’ ability –

individually or collectively – to consider and evaluate information and options is

limited, for example Simon’s views about ‘bounded rationality’. The

implementation stage of decision-making is basically ignored.

Politics and power according to Pettigrew and cited by Miller et al are ever

present within organisations, based on the scarcity of resources. The rational

approach tends to ignore these factors.

There are a number of other areas which the students may include, such as

Lindblom’s concept of incrementality, the Bradford Studies views about

complexity and politicality and some of Cyert & March’s arguments (see Q3

below). These are all legitimate responses.

Students should make sure to identify a number of the above reasons for economic

rationality not being realistic for decision making processes in organisations.

QUESTION THREE

Taking the rational model as your point of reference, and relying on ideas put forth by

Janis, Cyert and March, and Miller et al. discuss what can go wrong in organizational

decision making. (50 marks)

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ANSWER KEY

A number of variations are possible ideally students should start by briefly explaining the

rational approach of decision making:

The Neo-classical economic assumptions could be summarized as follows: Individuals

act as maximizing entrepreneurs. Decisions are logical and linear (step-by-step

processes)

Decision makers: (1) identify the problem, (2) collect and sort information about

alternative potential solutions, (3) compare each solution against predetermined criteria,

(4) arrange solutions in order of preference, (5) make an optimizing choice, and (6)

implement a solution where the rewards are maximized and costs are minimized.

Cyert, and March and Miller et al. offered an overview of the literature which identifies

the problems with and limitations of the rational decision-making model.

They have cited Simon’s views on bounded rationality: Perfect rationality can’t be

attained. Some information is unavailable or misrepresented, and some criteria are

uncertain. Therefore, the outcome is a “satisficing” rather than an optimizing choice.

Managers have “bounded rationality”: their behavior is reasoned, not irrational (this has

constraints, like in groupthink)

Routine matters (lower down in the company) are “programmed” decisions. The unusual

and strategic decisions taken by managers and executives are the “non-programmed”

decisions. They set precedence for future decisions.

Sometimes the information gathering and the solutions are difficult in a way that step-by-

step is not possible. “Problemistic search” may occur: responding to problems rather

than exercising foresight.

There are competing interest groups who might try to control scarce resources, which can

result in political behaviors and power games in organizations. This will in turn give rise

to constraints and bounded rationality.

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Top management and executives have “rational-legal” power.

Power holders may manipulate information, push for preferred alternatives, and suppress

opposition. There will be bargaining, negotiations, and compromises. The outcome will

be less than optimum for everyone involved.

Differentiation and special interests in each dept. will result in “power play”. Each group

has its norms and goals that serve their interests.

Procurement might gain power because they control resources. Also, marketing for

example can get influence and power because they manage demand.

Coping with uncertainty and risk confers power. Managing uncertainty on behalf of

others gives an important power base

Special interests, negotiations, and bargaining will lead to “quasi resolution of conflict”

and “negotiated order”. Power positions are formed and then transformed depending on

the topics discussed.

There are biases, politics, and things “behind the scenes”. Some decisions don’t get on

the agenda in order to suppress conflict and exercise power (non-decisions) (Bachrach &

Baratz; 1962). These issues don’t get decided because they are controversial and might

upset stakeholders.

Decisions are far from logical appraisal and selection of alternatives (they can get

political).

Lindblom’s work also highlights the limitations of the rational approach and

presents an alternative view of decision making. Lindblom analyzed decision making in

public institutions, decision making is not linear nor sequential, but incremental with

reformulation. Solutions that are not much different from status quo are considered.

Small steps are taken so that there is no radical change and so that major stakeholders are

not upset. Things therefore can be somehow predictable and reversible. However, if the

company is in crisis, incrementalism is not enough.

Some actions are taken with “quasi-decision”, or even without decision. Strategies might

emerge without deliberate decisions. At the macro level, management might imitate other

companies. Satisficing results in sequential attention to goals (cautious action with eye on

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the competition). Decisions are determined by socio-political factors. “enterprise culture”

can happen where government policies will shape and affect strategic decisions.

Janis and Valentin on their part have addressed the heterogeneous and negotiated

nature of organizational goals. The existence of conflict and negotiation in organizations

means that decision making is limited in various ways by various routines, habits, and

compromises.

Janis has focused on the limitations created when a group suffers from group

think. He hypothesized that group think exists when the members of a small cohesive

group tend to maintain “Esprit de Coprs” by unconsciously developing a number of

shared illusions and related norms that interfere with critical thinking and reality testing.

Janis’s views shed light on what can go wrong in organizational decision making when

the team suffers from groupthink. Group members tend to seek concurrence at the

expense of seeking information, critical appraisal, and debate. Complacent over

confidence in the face of vague uncertainties, tunnel vision, misrepresentation of

information, or failure to make sense of it all create an enormous gap between conception

and actuality. Accordingly Janis identified the features of decision making which

represent a deviation from the rational model, i.e. over-reliance on experience, misplaced

deference towards authority, willingness to compromise, and the use of flawed

assumptions.

QUESTION FOUR

Describe the political approach to organizations, and the implications of their

implementation to the analysis of decision making. (50 marks)

ANSWER KEY

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A number of variations are possible, students need to focus on Pettigrew’s analysis of the

political aspect of decision making within organizations.

Pettigrew (1973) was trying to recognize the operation of an essentially political

process in which constraints and opportunities are functions of the power exercised by

decision makers in the light of ideological values. The political perspectives are

distinguished form simple office politics. Politics are generated by the structure of

organizations. Structures are designed by the powerful, but they also allocate power.

They create specialism, which develop loyalties and interest, which in turn breed politics.

The major themes of Pettigrew’s work are focused on the role of conflict, politics, co-

operation, and most importantly power. Decision makers exercise power which is

influenced by their ideologies. Decision makers’ power faces constraints and

opportunities.

A political perspective on organization and decision making is necessary in order

to understand the realities of decision-making processes and outcomes.

Politics are normal in organizations since organizational structures and hierarchies

systematically produce differences of interest and viewpoint that impact decision making.

Politics inevitable involve patterns and relationships of power within organizations.

However, it is important to distinguish power from authority and to recognize numerous

informal possibly subordinate, bases of power.

By claiming that they are acting in the interests of the company, people legitimize their

behavior. No one regards himself as a politician. For instance, technical engineers can

exert some power over their superiors, because of their control over uncertainty. In the

company, there are different interests based on specialized functions (sub-units), and

hierarchical positions. Some joint decisions can happen (interdependence). Conflict is

likely because of scarce company resources.

Political behavior is central to organizational structures and processes. Generating

support for your demand results in creating a political dimension. Political behavior

arises from the unequal distribution of organizational resources and the creation of

particular loyalties and perspectives through organizational differentiation. Political

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behaviour is: “behaviour that makes a claim against the resource-sharing system of the

company. Those who control resources have power and high status. Those who don’t

have power will try to enter into coalition with others in order to leverage some power

and status. Information failures that characterize “bounded rationality” and “groupthink”

are rooted in structural problems of hierarchy, specialization and centralization. Sub-

groups can form coalitions to improve bargaining and generate support. Researchers and

sociologists get financial support from companies. They might hide political struggles

taking place in the company. According to Parsons, authority refers to the legitimate

position of a person in a group within which the use of power as a medium is organized

and legitimized. Therefore, authority is a basis of power. Power also means solidarity

and collective goal achievement. Giddens spoke of the hierarchical character of power:

there is conflict between those who want power and those who have it. Therefore,

possible strategies of coercion, deceit, and manipulation can happen. When groups

compare power and wealth and status with other groups, discontent and conflict can

result. People will start to question the legitimacy of the system of distribution of

authority and rewards. Power is a property of social relationships (dependency).

Dependency involves resources, opportunities, and anything that someone can exploit in

order to affect the behavior of another. Resources are to be possessed and controlled by

the power holder. In companies, dependency is controlling access to resources of

information, people and instrumentalities. Lower ranking members can make higher

ranking members depend on them. Control over information is a critical resource for

mobilizing power in a decision-taking situation. Influence of subordinates over superiors

on non-programmed (unusual) choices can be great, because subordinates might know

more. The amount of support a person achieves is conditional on the structure and nature

of his relationships in the company (respect, acceptability, feelings of indebtedness).

Pettigrew sees that decisions are made via processes which are affected by

properties of the units in which the decision is to be made. Information failure that

characterize groupthink and bounded rationality are rooted in structural problems of

hierarchy, specialism, and centralization. Conflict in a joint decision making process may

arise not only as a result of differences in goals and perceptions but with regard to the

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transference of authority over a particular area from one subunit to another. He focused

on the origins of power relations and politics in the structure of organizations and not

simply on their manifestations.

QUESTION FIVE

At the heart of Cyert & March’s Behavioural Theory of the firm are the four key

concepts of:

1. Quasi resolution of conflict

2. Uncertainty avoidance

3. Problemistic search

4. Organisational learning

Choose two (2) of these and discuss their impact on decision making

MODEL ANSWER:

In order to answer this question appropriately, students will need to compare Cyert and

March's views to the rational decision-making processes.

Cyert and March argue that there are three principal features of organisational decision-

making that help to explain the variance between rational decision-making and what

happens in practice. They suggest that organisational goals, organisational expectations

and organisational choice very and differ from the singular goal of profit maximisation.

In each of the three areas, Cyert and March argue that the following four concepts are

critical and help to explain why the process of organisational decision-making is non-

rational in practice:

1. quality resolution of conflict - overview of how different and conflicting goals,

expectations and preferences are resolved

2. uncertainty avoidance - via avoiding the requirement that future events are

correctly anticipated, for example, focusing on the near short-term, or a

‘negotiated environment’ aimed at getting gaining control by, for example,

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establishing plans, procedures, industry wide standards, etc. These are attempts to

eliminate uncertainty

3. Problemistic search - determined by simple, specific problem driven/problem

solving motivation, which includes bias in research rather than random curiosity

aimed at understanding beyond the point required for control, which would

involve complex, and exhaustive and objective research

4. organisational learning - which involves an adaptation of goals and adaptation in

attention rules and search rules

Students can select two of these four key concepts to discuss. A key objective is for the

students to explain that all of these approaches are irrational when compared to the

rational approach to decision-making.

QUESTION SIX

Information failures that limit organisational rationality are rooted in structural

problems of hierarchy, specialisation and centralisation and do not just reflect the

malfunctioning of thought processes. Discuss this view. Support your answer with

appropriate concepts and examples from the B300 course materials

MODEL ANSWER:

This is a wide-ranging, rather general question. While it has connections with specific

chapters in the Decision-Making Reader, it also relates to the module as a whole.

It is important for students to look carefully at the question to draw out the main issues.

First of all, it is accepted that much decision making is of limited rationality. That is the

basis of and starting point for the Decision Making module. Second, it suggests that the

rationality of organisational decision making is limited by aspects of the organisation

itself and ‘not just ... the malfunctioning of thought processes’.

In other words, intelligent people may make odd and irrational decisions because of the

structure of the organisation in which they work.

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The question asks the students to consider the possibility that the organisational

rationality can be limited, specifically through information failures, by structural features

of the organisation. Students are also asked to discuss the ways in which organisational

rationality can be limited.

The main concern of this question is the ways in which hierarchy, specialisation and

centralisation do limit rationality. Students will need to consider, describe and offer

examples of each of these factors. For example, hierarchy can give rise to deference to

managers and senior people and ‘groupthink’; specialisation can cause people to focus on

local priorities and objectives at the expense of larger, more general purposes and

centralisation can distort, overload and confuse information systems.

Janis’ chapter can be used as an example of the role of hierarchy, The Bradford Studies,

cited in Miller et al, discuss the two categories of politics and complexity and these are

very relevant to the three sources of irrationality listed in the question.

QUESTION SEVEN

Decision making in organisational is essentially a political process. Build a

convincing case to support or oppose this position. Support your answer with

appropriate concepts and examples from the B300 course materials

MODEL ANSWER:

This question is essentially divided into two parts. The first part asks students to explain

the political perspective as developed by Pettigrew, although Miller et al have included

some important aspects. The second part of the question calls for an identification of its

main implications for the decision-making process.

Pettigrew seeks to ‘recognise the operation of an essentially political process in which

constraints and opportunities are functions of the power exercised by decision makers in

the light of ideological values’. Pettigrew’s basic thesis is that power and politics are

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always present in decision making as they are ever present in all aspects of organisational

life, especially when there is a scarcity of resources.

That the decision making process becomes one area, or even the main area, in which

politics is enacted probably comes, in no small part, from the fact that the outcomes of

decisions impact closely on the structure of dependent relationships within and possibly

between organisations and, hence, the power structure.

This in turn introduces the idea of interests embedded within units. It is the role

occupants, acting in their unit’s interests, rather than individuals acting in their own self

interest, that impacts upon the decision-making processes to preserve or promote unit

interests.

Students’ answers should recognise and understand that political behaviour not only

exists, but it also shapes processes (and outcomes). Examples should be used to support

students’ arguments.

An explanation of its main features is likely to include:

political behaviour is defined as “... behaviour by individuals, or, in collective

terms, by subunits, within an organisation that makes a claim against the resource

sharing system of organisation...” that political perspective, in the sense that

Pettigrew argues, must be distinguished from the more trivial notion of ‘office

politics’

power is at the heart of the political perspective and recognition of this is essential

in order to understand the realities of the decision-making process and its

outcomes

political behaviour can be regarded as ‘normal’ in the sense that it is

organisational structures and hierarchies that generate political behaviour.

Structures are designed by the powerful, but they also allocate and confer power.

Inevitably, structures that create specialisms, which produce loyalties and

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interests, are the breeding grounds where differences of interests or viewpoints are

evident.

Political behaviour inevitably involves the pattern and relationships of power

within organisations, but it is important to distinguish power from authority

There are other issues surrounding Pettigrew's views about power and politics, which

students may also raise.

The main implications for decision-making include:

the political view of decision-making is fairly direct in that it is the interaction of

the unit interests that influences or shapes or frames ‘issues’ or ‘problems’. It can

even control the discussion of issues, for example, that some decisions do not get

on the agenda for consideration

political behaviour can also influence the criteria that are used to evaluate options

in the process of making decisions

political action can also seriously impact the otherwise sequential and linear

progression of the process, thus causing delays or even chaos. In the meantime,

rival interests gather support either in a political sense of coalition building or by

commissioning studies which support their position and/or undermine others’

positions, for example, the employment of consultants.

Pettigrew argues that there is more than one ‘rationality’. That is, decisions have a

political rationality as well as an economic rationality. Also, political activity in decision-

making is not necessarily negative; it can result in positive outcomes.

QUESTION EIGHT

“The ideal decision-making process is unrealistic and a realistic decision-making

process is far from ideal”. Explain the reasoning behind this statement with

reference to the rational model and to those approaches that deviate from the

rational perspective.

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MODEL ANSWER:

This question refers to the concept of rational choice models, notably found in Cyert &

March’s article (chapter 3 in Reader One) and Miller et al’s discussions in chapter 4. The

neo-classical economic assumptions which lie at the heart of the ‘so-called’ classical

rational model are that:

Individuals normally act as maximising entrepreneurs (i.e. maximising rewards,

minimising costs)

Decisions are thought to be arrived at by a step-by-step linear process

Decision makers themselves identify the problem or issue about which a decision

has to be made

The process involves collecting and sorting information about alternative

solutions in order to:

o Compare alternatives against pre-determined criteria to assess the degree

of fit

o Rank alternatives in order of preference

The main reasoning behind this statement rests on the following:

The classical rational model may be regarded as the ideal process in the sense that:

It is intended to reach decisions that optimise choice by identifying the most

efficient allocation of resources in the circumstances

The process rests on assumptions that are subject to testing and critical analysis

The process also rests on the need for objective information to be assessed by

means of well defined criteria

Decisions are reached in a normally linear logical way such that the process is

sufficiently robust to withstand scrutiny and review, regardless of either the

success or the effects of the desired outcome

However, this ‘ideal’ is unrealistic to the varying extent that the underlying tenets of the

rational model do not correspond to reality. For example:

Individuals may not act as maximising entrepreneurs

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Individuals may not operating as individuals but in an organisational environment

which influences their approach in ways that may not be rational in the neo-

classical sense

Decisions are reached in an unplanned manner

the nature of decisions themselves may differ according to whether they are

‘programmed’ (routine) or ‘non-programmed’ as Simon argues

information may be far from perfect and humans’ grasp of the available

information may also be very limited and therefore far from perfect

Realistic decision making recognises factors that lie outside the sterile world whose

boundaries are defined by the neo-classical economic assumptions which lie at the heart

of the so-called classical rational model:

These factors include (but are not limited to):

behavioural theories of the firm as outlined in chapter 3 by Cyert & March,

whereby the influence of organisations on the decision making process is taken

into account

These include:

o Quasi resolution of ‘conflict’ in view of organisation goals, expectations

and choice

o Uncertainty avoidance either via feedback-based learning or negotiating

an environment so as to eliminate uncertainty

o Problemistic search, that is, ‘depressed by a problem solution’, driven by

simple rather than complex causality, where the search may be biased

o Organisational learning, as do human beings, which involves adaptation of

goals and adaptation in attention rules and search rules

Managerial rationality, as outlined by Miller et al in Chapter 4, based on Simon’s view

that ’rational economic man’ or the ‘rational actor’ is constrained or ‘bounded’ by:

The complexity of modern organisations

People’s own limited cognitive capacities and, therefore, to varying extents, are

unable to operate under perfect rationality

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That varying may depend on the type of decision, for example, ‘programmed’ or ‘non-

programmed’

The enactment of power, again as outlined by Miller et al and by Pettigrew in chapter 5,

whereby decision making may be seen more accurately as a ‘game of power’ in which

competing interests contend with one another for control of scarce resources. These

aspects of power go beyond Weber’s ‘rational-legal’ or authorised power and address

how power may be exercised in ways that lead to outcomes which are less than rational

from the neo-classical perspective. For example, holders of power may exercise their

power to further their own sectional interests, particularly ‘differential’ interests aiming at

coping with uncertainty or to subdue conflict by keeping some decisions off the agenda

(‘non-decisions’ by Bacharach and Baratz).

Empirical studies of decision making processes have added weight to the criticisms of

rational choice models as being idealised prescriptions depicting an unreality, e.g.

Lindblom, Hickson et al (The Bradford Studies),.

The realism of much decision-making has been called in to question by writers such as

Mintzberg & Waters who argue that the very concept of ‘decision’ as a discrete,

deliberate and conspicuous action belies the reality of some organisations’ unstructured

decision-making processes.

As can be seen by the length of this marking guide, this is a very wide ranging question,

which can be answered by taking a broad-brush or a narrow and deep approach. Either

approach can gain high marks.

Students who just describe the neo-classical processes should not be awarded a pass mark

– they need to show an understanding of the underlying theoretical perspectives.

Pass marks are to be awarded for answers that discuss both sides of the arguments. i.e.

the neo-classical ‘ideal’ approach and the arguments why this is not achievable.

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QUESTION NINE

Decision making in organisations is, essentially, a political process. Build a

convincing case to support or oppose this claim

MODEL ANSWER:

This question is based very much on Pettigrew’s chapter, with additional material from

Miller et al and Cyert & March.

The key concept from Pettigrew is, “Political behaviour is defined as behaviour by

individuals, or, in collective terms, by sub-units, within an organisation that makes a

claim against the resource-sharing system of the organisation.” He goes on to talk about

where there is “an inevitable scarcity of those resources, political behaviour will occur”.

Pettigrew links political behaviour with power – the power to influence decision making

processes among other things.

In other words, Pettigrew is arguing that political behaviour and power struggles are a

normal part of organisational behaviour as resources are usually scarce in businesses

This is the main premise for this answer and students should be expected to highlight it in

some way or other that shows that they understand it. They should NOT be expected to

quote Pettigrew exactly!

It is very important that students have a good understanding of this!!

Pettigrew argues that sub-units try to influence the decision-making processes, by

political behaviour, to enable them to acquire scarce resources for meeting their own sub-

unit goals and/or to meet the individual goals of members, such as promotion or to serve

their own interests

Pettigrew contends that political behaviour, relating to the balance of power in

relationships in organisations, can be seen within sub-units of organisations in various

forms, such as positional power, which is from formal authority or ‘rational-legal’ power,

as outlined by Weber. Power can also accrue to ‘experts’ and to members who have

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control over information. A major factor is also a property of social relationships, which

includes the idea of dependency.

An important factor in this analysis is that, even though experts may have power because

executives rely on their knowledge in decision-making processes, executives, through

their formal authority, “have ultimate power to hire and fire experts”. This enables

executives to have a “major control over the power strategies of the experts.” So experts,

among others, can behave politically in terms of trying to obtain scarce resources, the

amount of power they can actually wield will depend on the context.

These views are supported by writers as outlined in Miller et al. For example, The

Bradford Studies propose that ‘politicality and complexity’ are involved in decision-

making and Miller et al argue that decision-making can be seen as being “ ...at the centre

of political machinations and intrigue, ...”.

Cyert & March also discuss how organisations deviate from the classical approach to

decision-making because departments (sub-units) concentrate on achieving their own

goals rather than organisational aims. This aspect can lead to conflict and political

behaviour. In Cyert & March’s term, there is a quasi resolution of conflict, that is, it is

not a real resolution. Therefore, the conflict is still there and decision-making processes

do not satisfy organisational aims as different departments focus on satisfying their local

goals.

One final aspect that students could write about is the concept of ‘non-decisions’.

Bachrach and Baratz (cited in Miller et al) argue that “controversial topics that go against

the interests of powerful stakeholders” are taken off the agenda and are not decided upon.

Thus, following the definition of political behaviour, there is a great deal of material

which students can include.

QUESTION TEN

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Explain briefly what Bate means when he says that organisational culture revolves

around “certain ways of believing, thinking and acting”. How might this impact on

the decision-making processes that managers might use? Illustrate your answer with

appropriate examples.

MODEL ANSWER:

This question mainly relates to Bate’s chapter in the Reader. It is related to the way

decision-makers think and learn as part of the process of decision-making within

organisations.

Please note the question calls for a brief explanation of Bate’s meaning with this phrase,

but then a discussion of how this might influence decision-making processes is the key

part of the this question.

Students should show that they understand this definition of culture what Bate means by

organisational culture and, then, show that they can appreciate that if this particular

definition is accurate, there are significant implications for the way that decision making

occurs within organisations. Better answers may demonstrate a more critical approach to

this question, possibly by noting alternative explanations for approaches to decision

making discussed earlier in the module.

Students should include, based on Bate’s views, such factors as unobservable and

‘implicit, embedded, strongly held, staunchly defended, shared, transmitted and

enforced’. All of these regulate the behaviour of people in organisations (and in wider

society). By implication, organisations need a clearly defined culture to enable

individuals to fit in and comprehend what is required of them.

This is shared, implying common ideas, meanings and values subscribed to collectively

and that it is transmitted by a process of socialisation, a process of conformity with

patterns of behaviour emerging from the organisation’s past. Hence culture emerges from

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within and is sustained by the organisation, rather than being imposed on it from above or

outside.

Students should identify that that the characteristics of culture identified by Bate almost

inevitably develop a set a normative responses to decisions – the character of which is

shaped by the culture of the organisation. Approaches to decision making are almost pre-

programmed, he would argue, rather than being the outcome of a rational process.

Bate’s work strongly identifies potentially negative implications for the effect of culture

on decision asking; that the shared process by which the understanding of an issue is built

in an organisation establishes a culture which means a prescriptive approach to decision

making. By implication, therefore, decisions are necessarily taken because they are right,

but because they fit with the dominant expectations and perceptions of managers within

the organisations.

Students should question the limitation of Bate’s research and, therefore, how much

validity there is in his findings or results. Examples of more positive organisational

culture than Bate’s research findings imply, should gain a higher mark.

QUESTION ELEVEN

Discuss the ways in which decision making criteria, objective and rationalities are

influenced by shared values and beliefs within organizations. (50 marks)

ANSWER KEY

A number of variations are possible. Students’ discussion should focus on the way in

which shared meanings and culture within organizations influence managers’ decision

making as discussed by Bate (1984).

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The term culture can be defined as the meanings or aspects of the conceptual

structures which people hold in common and which define the social or organizational

‘reality’. In their daily interactions with one another, people in organizations evolve a

system of shared perspectives of ‘collectively held definitions of the situation’ which

make up the culture of the organization. Culture in the organization can lock people in

with their own problems. It is the “commonsense” view of the world that’s implicit in

people’s minds. It provides us with an ‘order’ or rationale. We tend to interact with

people who are “similar” to us. It involves shared ideas, meanings and values that people

hold in common. Organizational culture is the social glue holding the company together,

and is usually transmitted by a process of socialization. People are required to conform

to patterns of thinking and acting. Culture encompasses a set of expected behaviors,

values and morality of society or organization.

Bate analyzed why some companies that apparently needed to change failed to do so.

He looked at the reasons people in organizations allow problematic and undesirable

conditions/situations to persist? He looked for the explanation in the nature of

organizations themselves. His study identified the existence of six unwritten rules of

behavior which affect people’s way of thinking and acting within organizations. Those

rules of behavior prescribe certain ways of believing, thinking and acting, which might

induce ‘learned helplessness’. Therefore, attempts at problem-solving may become

culture-bound. The six rules of behavior include:

Unemotionality : ‘avoiding showing or sharing feelings and emotions’. Displays

of feeling were not desirable. No personal friendships among co-workers.

Managers considered that showing feelings was unprofessional. This culture

made people inflexible and overcautious.

Depersonalization : ‘to never point the finger at anyone’. People are vague about

the source of problems (naming individuals is seen as dangerous and unkind).

Sources of problems were generalized and externalized (blaming recession or the

currency…)

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Subordination : ‘never challenge those in authority’. People did not take

responsibility for solving problems. Deviants could be punished, and those who

challenged management authority were under pressure to back off. Workers don’t

talk about their problems.

Conservatism : ‘better the devil you know’. Managers and workers had the belief

that things will never change.

Isolationism: ‘do your own thing’. People not encouraged to form teams or

interact with others. Cooperation and expertise not utilized.

Antipathy : ‘people will be opponents rather than allies’. Small interest groups are

formed. No trust in others. The belief is that issues were of a win-lose nature

(adversary principle). No compromise was sought. This pluralism preserves the

survival of interest groups (like management versus union), but it’s not effective

for problem-solving.

Organizational culture can shape patterns of organizational behavior. Certain cultural

orientations can constrain problem-solving behavior. Culture affects the type and quality

of interpersonal relationships. Shared cultural meanings define the acceptable, desirable

and effective ways of relating and acting. They constitute the ‘dominant relational

orientation’ of people working with each other. Culture shapes relationships and

interactions, and therefore it has social consequences. Culture can induce futility and

pessimism. Seligman’s “learned helplessness” can occur when a person perceives that he

can no longer control his own destiny. This will cause damage to problem-solving and

goal attainment.

Seligman stated that helplessness is the result of trying and failing. But this study

revealed that helplessness was transmitted by the culture to the organization’s members:

they felt powerless without even trying.

Cooperation is very helpful in problem-solving; but problem-solving will suffer when we

have high degree of subordination, depersonalization, conservatism, isolationism,

antipathy, and a culture that’s highly cognitively rational

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Paul Bates suggests in this chapter that the managers were actively colluding in a

situation which stopped them from resolving their problems. They were trapped by their

own attitudes. They were powerless because they believed themselves to be powerless.

The problem was not that the managers applied certain established recipes or cognitive

schemata, but that they were enmeshed in ways of relating which discouraged challenge,

review, analysis and learning.

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