This essay analyzes how power and control operate at Engineering Products following organizational change. It also critically looks at the implications of this on its managers and employees. The essay argues that it is only a matter of time before managers and employees’ motivation and performance begin to wither and deteriorate due to the firm’s mismanagement of change, power and control.
Table of Contents
1. Power and control
2. Organizational culture
3. Implications for managers and employees
4. Organizational change
Objectives and Topics
The main objective of this study is to critically analyze how power and control mechanisms operate within Engineering Products following major organizational restructuring, while evaluating the resulting implications for the company's managers and employees.
- The transition from a decentralized to a mechanistic organizational structure.
- The use of "best practice" sharing and internal competition as control mechanisms.
- Modernist, postmodernist, and radical structuralist perspectives on organizational power.
- The role of the central Human Resources function in facilitating international integration.
- The impact of organizational change on employee motivation, autonomy, and job security.
Excerpt from the Book
Power and control
Robert Dahl once offered this widely cited definition of power: “A has power over B to the extent that he can get B to do something that B would not otherwise do”. This definition implies that power is always exercised in the context of relationships between actors rather than residing in the actors themselves. Similarly Foucault and other relational theorists agree that power is the property of a relationship rather than the commodity of an individual (Hatch & Cunliffe 2006:254).
Before the change Engineering Products operated in a largely decentralized way leaning towards a more organic structure with a wider span of control. Now the firm has a more mechanistic structure demonstrating high complexity, high formalisation and high centralisation (Hatch 1997). The latter is proven by the fact that the decision-making process is from top to bottom at Engineering Products with the HQ having the biggest part of authority. High formalisation at the firm is evident by the standardization of practices ranging from induction packages for graduates to problem-solving techniques. Lastly, high complexity is demonstrated by the sheer size of the firm, employing over 33,000 workers not only in Continental Europe but also in North America.
Summary of Chapters
Power and control: This chapter defines the theoretical underpinnings of power through modernist and relational perspectives, highlighting how Engineering Products shifted toward a centralized, mechanistic structure to exert authority.
Organizational culture: This section explores how the firm utilizes a strong power and role culture to standardize practices internationally, while deconstructing the firm's cultural traits using Hofstede’s dimensions.
Implications for managers and employees: This chapter examines the conflicting outcomes of international integration, ranging from career progression opportunities for mobile managers to increased job insecurity and alienation for non-managerial staff.
Organizational change: This final section critiques the management of change at Engineering Products, arguing that the reliance on coercive techniques failed to adequately involve employees, leading to potential future demotivation and turnover.
Keywords
Power, Control, Organizational Change, Engineering Products, International Integration, Best Practice, Human Resources, Modernism, Postmodernism, Alienation, Mechanistic Structure, Performance-Related Pay, Standardization, Organizational Culture, Employee Motivation
Frequently Asked Questions
What is the fundamental focus of this study?
The study examines the dynamics of power and control within the multinational firm "Engineering Products" following significant organizational restructuring aimed at international integration.
What are the core thematic areas addressed in the text?
The core themes include organizational structure shifts, management strategies for standardization, the influence of HR policies, and the sociological impacts of corporate power on employees.
What is the primary research objective?
The primary goal is to critically evaluate how power is exercised within the firm and to identify the long-term implications of these control mechanisms for both managerial and non-managerial staff.
Which theoretical approaches are utilized to analyze the firm?
The author employs several theoretical lenses, including modernist views on cybernetic control, postmodernist perspectives on disciplinary power, and radical structuralist critiques regarding alienation and exploitation.
What topics are covered in the main body of the work?
The main body covers the transition to a centralized, mechanistic structure, the implementation of "best practice" across international sites, HR-led standardization, and the consequences of coercive change management.
Which keywords best characterize this publication?
The work is characterized by terms such as organizational change, power dynamics, international standardization, corporate culture, and employee alienation.
How does the firm's HQ maintain control over local plants?
The HQ uses internal competition for customer orders, systematic performance comparisons, and the threat of sanctions or closure to ensure compliance with standardized operating procedures.
Why does the author argue that the firm's approach to change is problematic?
The author argues that the management of change relied heavily on coercion rather than employee involvement, which is expected to lead to declining motivation, dissatisfaction, and higher employee turnover.
- Quote paper
- BA Verena Stickler (Author), 2008, Engineering Products: Analysing power and control, Munich, GRIN Verlag, https://www.grin.com/document/187392
