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Power and Control

Power and Control

• Objectives:1. To be introduced to mainstream and critical perspectives

of power and control

2. To understand the relationship between control and

power

3. To describe the primary methods of organizational

control

4. To apply Hopwoods’ model of control

Mainstream approaches: Introduction

• Political behaviour– Extends beyond the formal authority that accompanies

a person’s position in the chain of command– Involves the informal use of power to cultivate allies

and control information– Is directly linked to decision making

• Incorporates both unitarist and pluralist perspectives

Unitarism and Pluralism

• Unitarism– Assumes the view of top

management shared by all employees

– Conflict the result of poor communication by management or the intervention of ‘troublemakers’ (e.g. unions)

– Aims is eradication of conflict

• Pluralism– Recognises a diversity of

interests in an organization– Conflict inevitable and

normal– Aims is negotiation and

bargaining over competing interests

Key concepts in the classical (unitary) tradition

• Focus on the formal structure of the organization• Concern to identify the right formal organization• Belief in the existence of one best form of organization• Seeking to describe organizational rules, often called principles• Belief that organizational principles are applicable to all types of formal

organization• Keenness to identify the best way of dividing up the task to be done• Stress on the need for clarity in role specification and performance• Placing emphasis on hierarchical control and similarities between members• Insufficient attention paid to the diversity of problems experienced in different

types of organizations

Assessing power

Primary Types of Mainstream Organizational Control (Hopwood)

• Administrative controls: Mechanisms, techniques and processes that are consciously and purposefully designed in order to control the behaviours of individuals, groups and organisations

• Social control: Process through which obedience, compliance and conformity to predetermined standards of behaviour are achieved through interpersonal and group processes

• Self-control: Norms embodied in administrative or social controls must be either directly or indirectly internalised by the members of the organisation and operate as personal controls over attitudes and behaviour

Hopwood’s Model of Control“Accounting & Human Behaviour” 1974

OrganisationControls

SocialControls

SelfControls

AdminControls

Difference between social control and administrative control

• Where management attempts to disseminate a culture through consciously designed, planned strategies to regulate and inculcate particular systems of belief and meaning in subordinates – this is administrative control

• Socialisation is the informal area of social control. It is not the result of a planned strategy but arises spontaneously out of everyday social interaction among members.

Administrative controls

Top-down authority, with emphasis on positional power

Emphasis on extrinsic rewards (wages, pensions, status symbols)

Activity-based job descriptions that prescribe day-to-day behaviour

Attempt to constrain and influence employees by either specifying of influencing:

Value premises of behaviour

Training; Recruitment and Selection

How tasks are performed

Rules, procedures

Output consequences

of performance

Budgets; MBO

Social controls and self-controls

• Socialisation • Values; norms; organisational stories• Group goals and norms• Emphasis on meaningful work (intrinsic

rewards)

Perspectives on power

• ‘’... Capability of an actor to achieve his or her will, even at the expense of others who may resist him ...’’

• ‘’...power should be seen as a property of the collectivity ...’’

Sources of PowerBased upon French & Raven’s model

Power

Personal Structural

Elements of personal power

• Expertise• Legitimate • Referent • Rewards/ coercion • Association

Elements of personal powerSources Definition StrategiesExpertise Knowledge and skills which others

see as relevant to task accomplishment and which the individual is seen as possessing

Obtaining credentials or ongoing experiences which others respect

Legitimate Formal position and roles which define responsibilities and appropriate scope of activity

Ensuring roles and expectations are clear and recognised as legitimate

Referent Power which comes from trust and commitment given to an individual because of his/her personal traits and characteristics

Build respect and trust through personal integrity, charisma

Rewards/ coercion Behaviours which reward or hurt others but which ensure compliance and buy-in

Accumulating things of value to others or punishment which can harm others

Association Influence which comes from knowing powerful people

Networking and developing connections and associations

Elements of structural power

• Emphasis moves away from personal power (that is ascribed to the individual), towards an understanding of the power that rests in the position or location an interest group, sub-unit, or department holds in the structure of the organisation

Elements of structural power

• Control of scarce resources• Centrality• Visibility • Coalitions• Flexibility/ autonomy

Elements of structural powerSources Definition StrategiesControl of scarce resources Ability to allocate resources

(information, money etc.) among groups with competing interests

Obtain positions which are responsible for distribution and allocation of resources

Centrality Tasks or positions which are in the middle of a communication network

Obtain central positions where others are dependant on you

Visibility Positions which are seen by those of power and influence in the organisation

Seek out tasks which have a high profile

Coalitions Power which comes from building support from groups with similar interests

Systematically seek support from others based on an analysis of their interests

Flexibility/ autonomy Positions which are characterised by discretion in decision-making, work assignment

Seek out tasks which are not routine and which contain autonomy and room for independent decision-making

Mainstream structuralist approach• Shares the pluralist assumption that

organizations are complex social units where individuals interact

• Focuses on the conditions which determine the decisions that can be made

• Demonstrates the large influence of organizational structures on decision making

Mainstream approaches: Limitations• Classical (unitary)

– Fail to recognise the importance of power, competition, conflict and limits to rationality

• Pluralist and mainstream structuralist– Acknowledges diverse interests, competition and conflict but

conception of power is shallow• Politics and negotiations are minor issues and do not challenge

prevailing structures• Managers are not presumed to have their own interests• Big issues of conflict (e.g. poverty, the environment) are

marginalized

Critical approaches: Overview• Connect politics and decision making to the

wider political and economic context– Assume that internal dynamics reflect broader patterns of

power and inequality in society• E.g. Marxist analysis links work organizations to the

dynamics of the capitalist system

A critical approach to power• Seeks to question existing structure of power

relations• Sees politics as necessary to secure

compliance/consent• Perceives power as a relationship, where its

use is dependent on compliance/consent

Case study: The story behind the water in Walkerton, Ontario

Case study question

Using Hopwood’s 3 primary types of organisational control analyse the Walkerton, Ontario case study

And finally… if you have any questions regarding your assignment please ask