Importance of Organizational Power, Difference between Open and Closed Systems - Assignment Example

Organizational Theory and Management Introduction This paper seeks to provide a discussion about the organization and management as applied in different organizations using the organizational theories and management. Organizational theories have, for a long time acknowledged the significance of both formal and informal incentives facing employees, highlighting that an organization’s political economy determines its life and behaviour (Richard, 2007). For instance, under the organization theory, it is believed that the activities and the goals of an organization are the outcomes of its organizational structure. This paper therefore, seeks to discuss about the importance of organizational power, analyze the difference between open and closed systems and finally look at the importance of organizational resources, detailing the importance of analyzing an organization's internal and external environments. Question 3 Why the discussion of power is rational in an organizational context Power is defined as the ability to force another person to do something because of the position held. It is the manner in which a person influences the actions of the others under his authority (Vatiero, 2009). Looking at the organizational context, power can be derived from structural, situational and interpersonal bases (Carson et al., 1995). The organization is structured in a hierarchal system such that the person at a higher level holds more power and is able to influence those who are under him. The significance of discussing power in organization is because it affects the effectiveness of the organization (Carson et al., 1995). It is needed when making organizational decisions, when resolving conflicts and issuing orders regarding duties. It is apparent that most of the problems regarding effectiveness in the organization are often caused by improper use of power by managers. For instance, in some cases, managers in charge of the organizational processes appear to lack the necessary knowledge and skills which make them unable to exercise their powers professionally, hence reducing the organization’s performance. There are also cases where power is vested to people based on personal benefits, which results to organizational failure in the end. Such matters make it rational to discuss organizational power. Difference between power, authority and politics Power and authority appear to be related concepts but in real sense are separate. Authority means the right to direct the practices of others, expecting them to respond with proper actions. In an organizational context, the sources of authority can be from the position held, in that the company’s manager can order a change in the product design or a marketing strategy, with an aim of promoting effectiveness. Power is the ownership of authority, influence or control such that the person can influence the actions of another, through direct authority or through other intangible means (Vatiero, 2009). Power comes from the possession of knowledge because the person applies that knowledge to direct the actions of another. Therefore, power can strengthen authority, while authority is one of the main sources of power. Organizational politics can be refereed as the process of obtaining power and applying it to overcome opposition that deters the attainment of a desired outcome. It is an important part of organization because there are often differing ideas, which all have to be mainstreamed to attain a specific decision. The power to mainstream these ideas is what politics concerns. Do managers and workers share the same type of power and authority? Most of the organizations are structured according to various levels of hierarchy such that those at the highest level of the hierarchy posses more power compared to those at the lowest level (Vatiero, 2009). Apparently, managers tend to be at the highest levels of the organizational structure meaning that they hold more powers and can influence and direct the actions of the workers who are often at a more lowers level of the organizational structure (Knights & Darren, 1999). The managers are often viewed to possess more knowledge compared to the workers and can therefore make significant decisions concerning the organizations. However, such decisions cane only be implemented with the help of the workers and therefore, they need to influence the actions of the workers in order to attain the desired outcomes. Therefore, managers and workers do not share the same type of power and authority since managers are at a higher structural level compared to the workers. They are vested with the powers and authority of directing the actions of the workers. Bases of power French and Raven (1959) identified the five bases of power that reflect the resources that power holders rely upon when relating to others. These include Legitimate power-this describes the formal authority people acquire from their positions in the society or organization, and are often backed by law or policy. For instance, punishing or rewarding employees is a legitimate part associated with most managerial positions. This form of power is important because it helps when it comes to management such that there is a formal authority that has the mandate to issue power that the subjects have to follow. Reward power-this power depends on the ability of the wielder to offer valued material rewards such as benefits, money, promotions, and other desired gifts. In an organizational context, this is viewed as the ability to provide subordinates with results that are valued in a positive way. This is based on the idea that we can only do something well when something can be got out of it. Referent power-the ability or power to attract others, build loyalty, persuade and build stronger interpersonal relationships. This relies on the interpersonal skills and the charisma of the holder (Raven, 1990). Expert power-this is often derived from the skills, experience and knowledge alongside the organization’s need for such skills and expertise. This is often restricted to the specific area in which an individual is trained and qualified. This form of power is important because the holder possesses the right skills and knowledge to handle the relevant post. It assures that the holder has the correct skills. Coercive power-this applies to the use of negative and fear-based influence on others. It can be based on physical strength in order attain obedience, but is always rated as the least effective as it builds resistance and resentment. Bases and their importance However, considering all the five bases of power, expert power and legitimate power is more important than the others are because they assure compliance with the supervisory requests (Steensma & Milligen, 2003). Reward power is generally weak because power is obtained through gifts while coercive is the least as is always tends to generate some form of resistance and can deter people from complying with the requests (Hinkin & Schriesheim, 1990). How the discussion of power has provided an understanding about organizations Power takes a central role in any organization since there is always the management that is responsible for issuing orders while the workers are expected to comply with the required standards. However, most problems related to effectiveness that for organizations occur as a result of the improper use of power, which therefore proves that organizational effectiveness is highly dependant on the power of its management (Carson, et al. 1995). Question 4 Difference between the rational and natural system In a rational system, the significant goal of any organization is to accomplish particular goals, adhere to the written regulations and formal roles that provide a direction towards the attainment of the optimum goal. It supports the idea that an organization has been established formally for the specific purpose of attaining certain outlined goals. Natural systems on the other hand, are collective in that they aim at attaining multiple interests, whether distinct or common, but distinguish the importance of perpetuating an organization as an essential resource. The participants’ behaviour in this type of system is not guided by written or formal rules that have been stated by the organization, but by their own interests and consider the importance of the organization in fulfilling their interests and needs. Therefore, a rational system is formal, guided by written rules that members have to adhere to in attaining the specified organizational outcomes, while the natural system is informal and contains no rules but member have to apply their own interests. Goal of the closed and the open system An open system is responsive to the environment and readily adopts and incorporates fresher ideas and information, while a closed system resists the incorporation of new ideas as it disregards its operational environment. The goal of an open system is to adopt fresh ideas in order to serve the environment in which it operates in while the closed system focuses on its strict rules and does not incorporate new ideas. A closed system seeks to attain its goals without incorporating newer ideas and information. Are these systems related, and can they be combined The two systems are related in that they can be adopted by any organization to guide the attainment of the outlined goals and objectives. However, they cannot be combined and applied to one organization. This is because they each refer to distinct systems of operation. A closed system does not incorporate new ideas while an open system does. It therefore becomes difficult to incorporate these two systems in one organization and it is apparent that an open system is the complete opposite of the closed system. Therefore, either an organization can choose to adopt the closed system or it adopts the open system. Question 5 Why resources important to an organization An organization is a place where different resources come together. Some of the significant organizational resources include human resources, physical resources, information resources and financial resources. All these resources are considered important because they aid the organization in accomplishing its goals. These resources work together to ensure the organization attains its outlined objectives and goals and hence promote effectiveness in the organization. It is important to note that managers are charged with the responsibility of acquiring and managing the organizational resources to ensure they accomplish the outlined goals (Alanazi & Arnoldo, 2003). How the environment affects an organization’s survival The resources such as skilled workers and raw materials surrounding the organization compose the organization’s environment. Therefore, an organization needs to cope with the forces present both in the general and specific environment for it to survive. Some of the forces in the general environment include the economic, political, technological, cultural and demographic, environmental and international forces. The specific forces on the other hand include customers, competitors, suppliers, the government and outside stakeholder groups. Dynamism, richness and complexity determine the scope of environmental uncertainty, for instance, globalization has made organizational survival highly uncertain. To ensure survival in the complex business environment, the resource dependency theory highlights that an organization should reduce its dependence on the scarce resources. Difference between organization’s internal and external environment An organization’s internal environment refers to the matters within the organization affecting the organization either negatively or positively, and could be easily controlled because the organization has the capacity to do so. These include such factors as operational strategies, employee attitudes, adoption of new equipment and issues to do with the work force. The external environment on the other hand applies to the external factors affecting the organization, and the organization does not have control over such matters. Such factors include the political, economical, social, technological, legal and environmental (PESTLE) factors affecting the organization. Why the analysis of internal and external factors important It is important to obtain the relevant information regarding the internal environment of an organization in order to identify the weak areas that need to be worked on, as well as the existing opportunities that should be maximized to ensure organization thrives. On the other hand, an analysis of an organization’s external environment identifies the external factors affecting the organization that need to be resolved to ensure the organization continues to survive. An analysis of both the internal and the external environment ensures the organization survives and remains effective (Richard, 2007). Control over resource constraints Organizational managers are charged with the mandate of obtaining and managing resources within the organization (Imberman, 2005). However, it is obvious that at some point of the managerial process, an organization has to encounter some form of resource constraints. Basically, the manager can have the control over human resources in the organization because he has the power to hire and acquire new employees as well as firing the unproductive ones. When it comes to other organizational resources such as financial, physical and information resources, the manager may not have the power to deal with such constraints because they are simply beyond his control (Alessandro at al., 2005). For instance, when it comes to financial constraints, the manager may not be able to easily obtain the required funds. Conclusion The paper has discussed various matter involved in organizational management as outlined in the organizational theory and management. For instance, the discussion about power has provided a deeper understanding of its relevance in the organizational context as it determines effectiveness. The paper has also looked at the various systems that could be adopted by the organization such that if it adopts an open system, then it would be free to adopt newer ideas, while a closed system restricts the organization from adopting newer ideas. Finally, the paper has analyzed the importance of organizational resources and the importance understanding an organizations internal and external environment as they help in determining the survival of the organization. References Alanazi, M., and Arnoldo R., (June 2003). "Power Bases and Attribution in Three Cultures." The Journal of Social Psychology 143 (3), 375–395. Alessandro L., Erik, R., and John, F., (2005). Things Change: Dynamic Resource Constraints and System-Dependent Selection in the Evolution of Organizational Populations. Management Science, 51 (6), 882-903. Carson, E., Leon, Knight, Jr., and William, R., (November 1995). "Power in Organizations: A Look Through the TQM Lens." Quality Progress 28 (11), 73–78. French, R., Jr., and B. Raven (1959). "The Bases of Social Power." In Studies in Social Power. Dorwin Cartwright, ed. Ann Arbor, MI: University of Michigan Press. Hinkin, R., and Schriesheim, A., (1990). Relationships between subordinate perceptions of supervisor influence tactics and attributed bases of power. Human Relations, 43, 221-237. Imberman, W., (2005). "Managing the Managers." Progressive Grocer, 84 (3), 26–27. Knights, D., and Darren, M., (March 1999). "Are There No Limits to Authority?: TQM and Organizational Power." Organization Studies, 20 (2), 197–224. Raven, H., (1990). Political applications of the psychology of interpersonal influence and social power. Political Psychology, (11), 493-520 Richard L. (2007). Organization theory and design. London: Cengage Learning Steensma, H., and Milligen, F., (2003). "Bases of Power, Procedural Justice and Outcomes of Mergers: The Push and Pull Factors of Influence Tactics." Journal of Collective Negotiations, 30 (2), 113–134. Vatiero, M., (2009), Understanding Power. A 'Law and Economics' Approach Retrieved http://sites.google.com/site/massimilianovatiero/book Read More