Professional Documents
Culture Documents
Pfeffer and Salancik state that "It is the fact of the organization's dependence on the
environment that makes the external constraint and control of organizational
behavior both possible and almost inevitable". Groups that control the most vital
resources or can reduce the uncertainty of other organizations have the most power.
Control over resource allocation is an important power source. This power basis
can arise from:
"Organizational activities and outcomes are accounted for by the context in which
the organization is embedded".
Interdependence exists when one doesn't control all the resources needed for a
desired action. There is outcome interdependence (like between competitors), and
behavior interdependence (arranging a poker game). There can be symbiotic or
competitive relationships. Interdependencies can be assymetric or unbalanced.
Note that interdependence has increased over time as firms become more
specialized.
"It is the fact of the organization's dependence on the environment that makes the
external constraint and control of organizational behavior both possible and almost
inevitable".
* control groups has resouces the org wants and can't get elsewhere
* they can assess compliance with their demands from the organization
These factors also work within organizations. Org that control more vital resources
or reduce the most uncertainty often have the most power.
Resource Importance
Thus, resource stability is very important. Resource variablity will also affect the
interdependencies and threaten organizational coalitions.
Allocation discretion is a key component of power. Some basis for power in terms
of resources are:
* control of the actual use of the resource (eg., air traffic controllers)
Power also depends on whether a critical resource is obtainable from other sources.
There can be situations of few suppliers or even legal monopolies (like utilities).
Collective action between groups can also constrain resource availability. Or action
upon a regulatory agency that controls groups of organizations can have an effect
on resources.
Dependence
"Dependence can then be defined as the product of the importance of a given input
or output to the organization and the extent to which it is controlled by a relatively
few organizations."
For a dependence to provide power of one over another, there must be assymetry in
the exchange relationship. For example, there is definitely a power difference
between General Motors and it's myriad of suppliers, each producing only of
fraction of what GM requires.