Power, Control, and Processes in Organizations

by: Yudo Anggoro, University of North Carolina at Charlotte

Power, control, and processes are three fundamental elements in the organizations. Power is closely related to goal setting in organizations. The rational perspective of organizations views goals are important to provide directions for action and decision making; while the natural perspective emphasizes goals as the source of motivation for members of organizations. Goal setting is important in organizations as it influences strategies and organizational performance (Scott & Davis 2007, p317). In explaining goal setting, Scott & Davis (2007, p186) cite an interesting argument from Cyert & March (1963) that goals are set by a negotiation process that occurs among members of the dominant coalition.

Dominant coalition might be affected by the stakeholders of organizations. Stakeholders may include owners, managers, labor, and even external actors. In the dominant coalition, those who control resources and capital are more likely to have dominant position in the coalition; therefore, they have power in the organizations. However, this dominant coalition receives hard challenge from critical theory view. The critical theory view believes that only one class of actors exploits others and negotiation is less likely to happen (Scott & Davis, p215). This exploitation is also noted by Vallas & Hilll (2011, p11) who note that workers often find exploitation in their workplace, and that employers are compelled to adopt structural or ideological means with which to limit labor struggle and organization. This is what Vallas & Hill (2011, p11) state as labor process theory.

When goals are set, control must be exercised throughout the organization (Scott & Davis, 2007, p 202). In this sense, it is important to understand the structure of power and authority in organizations. An individual’s power is based on all the resources that he or she can control to help or hinder another in the pursuing of desired goals. Power also may come from the individual attributes, such as energy and physical stamina, sensitivity to others, flexibility, and ability to tolerate conflict. But those individual attributes are the source of power in informal groups. In formal groups, power mostly comes from the position; from the ability to give reward and punishment. This is the authority that a person may have to get legitimacy.

Control of power can also be set through the development of a set of common beliefs and norms that participants employ to orient and govern their contributions. This denotes the existence of corporate culture (Scott & Davis, p213).

Understanding power is very crucial in observing the dynamism of organizations. We need to be able to identify those who have power, whether it is position power or personal (individual) power. Control should also be exercised to avoid the misuse of power. As we all know, power tends to corrupt, and absolute power corrupts absolutely. We need to understand that control of power depends on the culture of organizations (or greater systems). In an open and democratic system, it is possible to negotiate the power. But we can imagine that this situation is less likely to happen in a totalitarian or monarch system where Kings/Queens/Dictators have absolute power. It is almost impossible to control their power. In another example, in labor process theory, the position of labor is weak as employers attempt to exploit them. They do not have any power to negotiate their position because their high dependency to the employers.

References:

Scott, W.R. and Davis, G.F. (2007). Organizations and Organizing: Rational, Natural, and Open System Perspectives. Pearson, Upper Saddle River: NJ.

Vallas, S. and Hill, A. (2011). Conceptualizing Power in Organizations. Research in the Sociology of Organizations, Vol. 34.