The following paper examines different theories on managerial decision-making and how this process is related to power and politics. Initially, the unitary approach is presented. The first decision-making model considered, is the rational model, focusing on the behavioural perspective. It is followed by the administrative model by March and Simon, criticizing the rational model and taking a realistic view, encompassing bounded rationality. The garbage can model developed by Cohen, March and Olsen is more a description of organizations confronted with various problems. Problems, choices and solutions are uncoupled, mixed and then satisfactory solutions are found. The second approach, called pluralist approach is exemplified by the political model evoked by Cyert and March. The existence of power is being seen as a source of influence, having strong impacts. In addition, different sources of power are examined and Lukes’ three power dimensions are described, including his radical view on power. The theories mentioned are supported by distinct examples. [...]
Table of Contents
1. Introduction
2. Unitary Approach
2.1 The Rational Model
2.2 The Administrative Model
2.3 The Garbage Can Model
3. Pluralist Approach
3.1 The Political Model
3.2 Power Sources and Dimensions
4. Critical Approach
5. Conclusion
Objectives and Topics
This paper explores the intricate relationship between managerial decision-making, organizational power, and political dynamics. It examines how various theoretical models—ranging from rational and administrative to political and critical—frame the decision-making process and how power structures influence organizational outcomes.
- Theoretical analysis of rational and boundedly rational decision-making models.
- Evaluation of the political model and the role of internal coalitions.
- Examination of power dimensions, including Lukes’ radical structural view.
- Identification of power resources and their application in managerial influence.
- Discussion on the prevalence of politicking within organizational hierarchies.
Excerpt from the Book
The administrative or also called bureaucratic model by March and Simon (1960) is a critique of the rational model (L. Stelzer), presented as a realistic antidote. It assumes bounded rationality, i.e. incomplete information, limited cognitive abilities and restricted discretion, having constraints on various standards. Perfect decisions are impossible and, therefore, they will always be only satisfactory.
In terms of the first example this could mean that the selected consulting company is not fulfilling the objectives ideally. Emerging problems could possibly not be recognized beforehand, due to imperfect information and the absence of some alternatives.
Summary of Chapters
1. Introduction: This chapter establishes the significance of decision-making in organizations and introduces the fundamental connection between decisions, power, and political interests.
2. Unitary Approach: This section details models that view organizations as systems where decision-making is either rational or constrained by limited information, specifically covering the Rational, Administrative, and Garbage Can models.
3. Pluralist Approach: This chapter explores the political model, analyzing how interest groups, power mobilization, and negotiations shape decisions, while identifying various sources of power.
4. Critical Approach: This part focuses on the dual reality of organizations, highlighting the internal struggle for power and Lukes’ three-dimensional framework of power as a crucial, often overlooked, determinant of organizational life.
5. Conclusion: The concluding section synthesizes the discussed theories, noting that while rational models provide a theoretical ideal, real-world decision-making is deeply embedded in power dynamics, hierarchy, and organizational structure.
Keywords
Managerial decision-making, Power, Politics, Rational model, Bounded rationality, Garbage can model, Pluralist approach, Political model, Lukes' three dimensions of power, Organizational hierarchy, Politicking, Interests, Coalitions, Influence, Corporate culture.
Frequently Asked Questions
What is the core focus of this research paper?
The paper investigates the interplay between managerial decision-making and the underlying influences of power and political behavior within organizations.
Which theoretical approaches to decision-making are analyzed?
The study examines three primary approaches: the unitary approach (rational/administrative models), the pluralist approach (political models), and the critical approach (structural power analysis).
What is the primary research question?
The paper seeks to answer how managerial decision-making processes are defined, how alternatives are determined, and to what extent these processes are influenced by organizational power and politics.
Which scientific methodology is employed?
The paper utilizes a qualitative theoretical literature review, comparing various established management models and applying them to practical examples to illustrate organizational dynamics.
What topics are covered in the main body?
The body covers rational decision-making, the limitations of bounded rationality, the "garbage can" model of uncoupled problems and solutions, political coalitions, and the multi-dimensional nature of power.
Which keywords best characterize this work?
Key terms include managerial decision-making, power, politics, bounded rationality, Lukes' power dimensions, and organizational behavior.
How does the Garbage Can model describe organizational decision-making?
It suggests that in disorganized settings, decision-making is not a linear, rational process but a random collision of problems, solutions, and participants, leading to satisfactory rather than optimal results.
How is the "political model" distinguished from the rational model?
While the rational model assumes objective utility maximization, the political model posits that decisions are driven by the specific interests, agendas, and power struggles of individuals and groups within the organization.
What role does "politicking" play in an organization?
Politicking refers to the manipulation of facts, goals, and processes by individuals to support their own interests, which is often necessary in environments with scarce resources and conflicting values.
- Quote paper
- Antje Walliser (Author), 2002, Why managerial decisions have anything to do with power and politics?, Munich, GRIN Verlag, https://www.grin.com/document/48504
