Topic 4: Power, Resistance and Decision Making

Topic 4: Power, Resistance and Decision Making

Developed by Dr. Ruth Barton

&

Dr. Margaret Heffernan, OAM RMIT University

Aims of the lecture

Questions of power

Hoe power works; 4 faces of power

Resistance and control

Types of resistance

Decision making

Theories of decision making; factors that enhance and limit decision making

RMIT University©2012 2

Questions of Power

POWERWhat is power?Several

dimensions and bases

Who has power? How is

influence achieved?

How is power obtained

in organisations? What

alternative theories and perspectives

are there?

What of resistance?

Another form of power?

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How Does Power Work in Organisations?

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Organisations are

hierarchical

Power as the

ability to control

social interaction

What is Power?

OB blind towards power

An individual capacity?

Property of the person or collective?

Power as the prerogative of

wise or wealthy men?

Two broad

traditions

RMIT University©2012 (Source: Thompson and McHugh 2009:256) 5

Normative (most rational way of organising power) Realpolitik (how does power actually operate)

Power in Mainstream Theory

Bases of power► Reward► Coercive► Referent► Legitimate► Expert

(French & Raven 1959)

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Trend spotting as Power

information power in the advertising industry

Control over information flow legitimate power

More power to those who can help firms cope with uncertainty in contemporary business

Power : Mainstream Theory

•The Four ‘Faces’ of Power►Coercion ► Manipulation ► Domination► Subjectification

(Fleming and Spicer 2007)

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Economic

Ideological(Runciman 1999)

Coercive

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1st Face of Power: Coercion

Coercion one

individual getting

another to follow

his/her orders

Direct coerciongetting another person to do something that might

not have been done.

2nd Face of Power - Manipulation

3 processes► Anticipation of results► Mobilisation of bias► Rule and norm making

►Of agendas: ‘behind the scenes’ politicking►Exclusion from decision making authority►Power as manipulation: There is no direct exercise of power but an implicit shaping of issues considered important or irrelevant.

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3rd Face of Power - Domination►Over the preferences and opinions of participants►Power that shapes our preferences, attitudes and political outlook►Used in the design and implementation of paradigmatic frameworks►Forms of life e.g. profit►Ideology►Technical rationality

4th Face of Power - Subjectification

►People are moulded with certain understandings of themselves and the world around them ►The organisation moulds people into a certain type►Use knowledge to produce compliance ►Culture of the customer

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“A wide range of behaviour – from failure to work very hard or conscientiously, to not working at all, deliberate output restriction, practical joking, pilferage and sabotage.” (Ackroyd and Thompson, 1999 cited in Fleming and Spicer, 2007)

“Resistance constitutes a form of power exercised by subordinates in the workplace.” (Collinson, 1994 cited in Fleming and Spicer, 2007)

Resistance

Resistance as Refusal► 1st face of power is coercion► Resistance is refusal to do what the person in the position of power tells him / her to do► Aim is to block the effects of power by undermining the domination rather than changing it

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Resistance as Voice

►2nd face of power operates through non-participation► Resistance is to gain access to power in order to express voice►Internal: interest groups, trade unions►External: social movements►Sabotage

Resistance as Escape

► 3rd face of power is domination► Escape is to mentally disengage from the world of work► Tools are ►Cynicism►scepticism ►dis-identification

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Resistance as Creation

•4th face of power is subjectification• Involves using domination to create something that was not intended by those in authority

•May make use of parody e.g. Union newsletter

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RMIT University©2012 Linstead & Fulop 2009: 669 17

“A decision is often defined as a product of decision making processes. Recent researchers argue that managers often seek to avoid making decisions or obscure them, often to avoid accountability for courses of action that are subsequently seen as misguided.”

Decision making

Traditional decision-making theories and ‘choice’Decision making: a response to a situation requiring

a choice.

• A general agreement about organisational goals and the best means to achieve them.

Unitary approach

• Emphasises conflict & power struggles between individuals & coalitions in organisations in circumstances where participants have substantial knowledge and information.

Pluralist approach

RMIT University©2012 Linstead & Fulop 2009: 671 18

Types of ‘choice’

• Which two products to adopt. StraightforwardClear choice

• Alternatives of improving profitability Competing choice

• Occurs when issues arising require resolution

Choice avoidance

• When information is distorted or suppressed

Choice suppression

RMIT University©2012 Linstead & Fulop 2009: 672 19

Types of decision processes

Sporadic

InformalWill suffer from delays

Information from various sources of expertiseTime delays

Fluid decisionFlow, formally channelled, Speedy & predictable

Information from fewer sources Fewer delays

Constricted decision

Narrowly channelled,

technical information

Decision made by experts

RMIT University©2012 Linstead & Fulop 2009: 671 20

Models of decision Making

• Decisions are made after careful evaluation of alternative courses of actionRational

• Questions whether managers are capable of making fully rational decisions

Administrative / Bureaucratic

• Introduces the idea that decisions are really problems looking for solutionsGarbage-can

Political

RMIT University©2012 Source: Thompson and McHugh 2009,Table 18.1: 273-4 21

Examines the role of powerful decision making groups (‘dominant coalitions’) and why many decisions are really ‘non-decisions’

The rational decision modelRecognition and

definition of aproblem

Search for alternative courses of action

Gathering andanalysing data

Identification and application of choice criteria

Evaluation of alternatives in relation to choice criteria

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Implementation of decision

Assumptions► Problem clarity► Known options► Clear preferences► Constant preferences► Maximum pay-off► No time or cost constraints►Outcome will be rational

(Bratton et al. 2010: 411; Linstead & Fulop 2009:674; Nelson et al. 2012:150 )

Bureaucratic / administrative modelBased on the actual behaviourof decision makers

There are cognitive or mental limits to human rationality

Decision making is governed by bounded rationality

Influence of non-rational elements in humans

Satisfices

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Decision made on ‘best in the circumstances’

AssumptionsManagers:►Select the first satisfactory alternative

Are comfortable making decisions without determining the alternatives

►Make decisions by short cuts or heuristics (managers make decisions on what has worked in the past)

►Satisfice – because of cost of ‘best choice’

(Bratton et al. 2010: 411; Linstead & Fulop 2009:676; Nelson et al. 2012:151 )

Garbage-can decision model

Organised anarchy

Not clear if an issue is a problem, or a solution to a problem

Reaction to circumstances

Total demands on the decision makers at the time

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Implementation of decision

Difficulty► Failure to account for the

political activity of participants who encourage conditions of organised anarchy, or who exploit them for particular advantage.

(Linstead & Fulop 2009:683)

Political decision modelRecognises the role of conflict and conflict resolution in the

decision-making process

Pluralistic in nature

Recognises the role of stakeholders in the organisation

Decision making is about reconciling stakeholders interests

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Implementation of decision

Difficulty► The pluralist approach

does not explain how decisions can be made or avoided in organisations because of the influence or pressure of external groups who may form part of a dominant coalition.

(Linstead & Fulop 2009:685)

‘Z’ Model of Decision Making 

Look at the factsand details

Sensing Intuition

What alternativesdo the facts suggest?

What are the facts?Be specific and realistic.List all relevant details.

Be clear. 

 Let your imagination

run wild.Brainstorm.

Consider various solutions

Can it beanalysed

objectively? 

Thinking Feeling

What impact will it have on those

involved? 

Consider the # consequences of each

alternative# cause and effect of each

actionIf you were not involved, what

would you suggest?

 Is it something you

can live with?How do you feel about the

action?What hunches do you have

about others’ reactions?

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Pfef

fer’s

Fou

r Org

anis

atio

nal D

ecis

ion-

Mak

ing

Mod

els

(Adapted from Table 14.2, p.686 in Linstead et al. 2009)

DIMENSIONRATIONAL

(Unitary)BUREAUCRATIC

(unitary)GARBAGE CAN

(pluralist)POLITICAL POWER

(pluralist)

 PREFERENCES & GOALS 

 Consistent

among participants

 Reasonably consistent

 Unclear, ambiguous, may be constructed

afterwards to legitimise actions

 Inconsistent, diverse or conflicting goals

& preferences

 POWER & CONTROL 

 Focuses on hierarchical

authority

 Less centralised ,

still legitimate authority

 Very decentralised,

anarchic; power is also recognised

 Shifting coalitions

&interest groups who have power but not

necessarily authority

 DECISION

PROCESS

 Orderly,rational

 Procedural rationality

embodied in programmes &standard operating

procedures 

Ad hoc

 Disorderly, characterised by push & pull of interest

groups

 EXPECTED RESULTS & OUTCOMES 

 Maximisation

&optimisation

 Follow from

‘satisficing’ mode

 Unclear, ambiguous

 Power & stabilisation

of demands

 INFORMATION

REQUIREMENTS 

 Extensive

&systematic information gathering

 Reduced by the use of

rules & procedures information

 Haphazard collection &

use of information

 Information used

&withheld strategically

 RATIONALE

Efficiency &effectiveness in

achieving agreed-to performance criteria

 Stability, fairness

 Playfulness

 Conflict & power struggles among relatively equal

opponents 

Escalation of Commitment

Limitation that all decision making models share

Unwillingness to abandon a bad

decision, or continuing to support a failing

course of action, even when substantial costs

are incurred

The desire to win is a motivation to continue

to escalate

RMIT University©2012 Source: Nelson et al. 2012:151 28

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Types of decision Traditional decision-making techniques

Modern decision-making techniques

1.Programmed► Routine, repetitive

decisions; organisation develops specific processes for handling them.

► Low uncertainty and low ambiguity

► Habit► Clerical routine: standard

operating procedures, policies, manuals

► Organisation structure – know your place

► Systems of sub-goals► Well-defined information

channels

► Operations research mathematical models, computer simulations

► Electronic data processing

► Management information systems

2. Non-programmed► One-shot, ill-

structured novel policy decisions.

► Handled by general non-routine problem-solving processes.

► High uncertainty and ambiguity.

► Judgment, intuition , creativity

► Rule of thumb (by top management)

Heuristic (problem solving) techniques applied to:► constructing computer

models► brainstorming► counter-planning► simulation

Techniques of decision making

(Linstead & Fulop 2009:Table 14.1: 677)

Influences of Decision Making

Influences

Risk, risk aversion

Personality, attitudes,

values

IntuitionCreativity

Organisation Environment

RMIT University©2012 (Source: nelson et al. 2012: 153) 30

Individuals differ in risk behaviour

Enablers and

barriers to creativity

Ability to make judgment about a

situation based on a ‘hunch’.

4 stages:PreparationIncubationIlluminationVerification

Group Decision makingSynergy = 1 + 1 = 3

Advantages

More knowledge and information

Greater understanding of the

decision

Member involvement

Disadvantages

Pressure to conform

Domination by one forceful member

Time required to make a decision

RMIT University©2012 Nelson et al. 2012: 157 31

Levels of organisational decision-making behaviour

Level of analysis

Theoretical Approaches

Key issues Constraints

OrganisationTheories of organisation power, conflict and decision making

Effects of power and conflict

1.Multiple ongoing tasks2.Historical precedents3.HRM systems4.Time constraints

Group1.Group conformity, group dynamics, group size, and networks

Effects of group dynamics, individual perceptions and behaviours

1. Group norms2. Group think

Individual

1.Information-processing theory2. Cognitive psychology

1.Information overload2.Personal biases

1.Information processing failures2.Perceptual biases3.Intuition and emotion4.Escalation of commitment

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Negative factors arising from group cohesiveness

GroupthinkMoral

judgment and reality testing

are suspended

Often occurs with high risk decisions in high-status groups with dominant leadership

High stress conditions and threats to self-

esteem

RMIT University©2012 Source: Thompson and McHugh 2009:375 33

Symptoms of Groupthink

• Excessive optimism and risk taking

• Group believes it cannot make a bad decision

Illusion of invulnerability

• Conform and reach consensus

• Unpopular ideas may be suppressed

• Members who oppose the group are stereotyped as weak, evil or stupid.

Pressure on

individuals

Group consensus

RMIT University©2012 Wood et al. 2010 : 103 34

Leads to discounting warnings and negative information. An illusion of unanimity emerges Self-censorships of any deviation from group norms.

Belief in the inherent morality of the group

Leads members to be convinced of the logical correctness of what they are dong and ignore the ethical or moral consequences of decisions.

Avoiding Groupthink

Can be avoided with some effort

Interaction with other

groups

Invite consultants and others

to challenge the group

Develop alternative

plans

RMIT University©2012 Source: Thompson and McHugh 2009:375 35

Leaders need to be reflexive to assess their behaviour and stay impartial

Group Polarisation

The tendency for group discussion to produce shifts toward more extreme attitudes among

members.

Can be disastrous

If individuals are leaning towards a

dangerous decision they are likely to support it more

strongly following discussion.

RMIT University©2012 Source: Nelson et al. 2012:160 36

Minimising Bias and Errors in Decision Making

• Generation of free flowing multiple ideas• Computer mediated brainstorming Brainstorming

• Variation of brainstorming , independent contribution

Nominal group technique

• Discussion with two initial members, then additional members added until all group members have joined the discussion

Stepladder technique

Delphi technique

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Structured team decision-making process of pooling the collective knowledge of subject experts

Bratton et al. 2010 :425

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References• Bratton, J, Sawchuck, P, Forshaw, C, Callinan, M, & Corbett, M 2010, Work and Organization

Behaviour, 2nd edn, Palgrave MacMillan, UK. Chapter 15: Decision Making and Ethics, pp.407-432• Clegg, S, Courpasson, D and Phillips, N (2007) Power and Organisations, London: SAGE.• Edwards, P and Wajcman, J (2005) The Politics of Working Life, OUP: Oxford.• Fleming, P and Spicer, A (2007) Contesting the Corporation: Struggle, Power and Resistance in

Organisations, Cambridge: Cambridge University Press.• Haslam, SA, 2004, Psychology in organisations: the social identity approach, 2nd edn, Sage

London. Chapter 6: Group decision making, pp.99-119• Knights, D (2009) ‘Power at Work in Organisations’, in Alvesson, M, Bridgman, T and Willmott, H

(eds) The Oxford handbook of Critical Management Studies, Oxford: OUP.• Linstead S, Fulop, L, Lilley, S 2009, Management and Organization: A critical text, 2nd edn,

Palgrave MacMillan, London. Chapter 14: Decision making in organisations, pp. 667-708• Nelson, DL, Quick, JC, Wright, S,& Adams, C 2012, OrgB Asia-Pacific Edition, Cengage, Sydney.

Chapter 10: Decision making by individuals and groups, pp. 148-164• Thompson, P, & McHugh, D, 2009 Work Organisations: A critical approach, Palgrave Macmillan,

London. Chapter 24: From groups to teams, pp. 369-387