2. Organizations as Political Arenas
and Political Agents
Organizations as Arenas
Wal-Mart as agent and arena
Ross Johnson Barbarians at the Gate
Organizations as Political Agents
Ecosystems I
Ecosystems II
Pfeffer and Salancik The External Control of
Organizations
3. Organizations as Arenas
Arenas shape:
Rules of the game
Players
Stakes
Bottom-up Political Action
Labor unions and civil rights movements
Political Barriers to Control from the Top
U.S. Department of Education scenario: initiatives
often lost to political opposition despite new resources
and top-down support
4. Organizations as Political Agents
Organizations exist in ecosystems
Organizations depend on environment for
resources support
Organizations needs the skills of a politician:
develop agenda, map environment, manage
relationships with allies and competitors,
negotiate
Ecosystem
“Organizational field” in which competitors and
allies co-evolve
5. Ecosystems
Business Ecosystems
Apple IBM “Wintel”
General Motors and General Electric
Public Policy Ecosystems
Federal Aviation Administration
Schools
Business-government ecosystems
Pharmaceutical companies, physicians and
government
Fedex lobbying clout
6. Ecosystems II
Society as Ecosystem
Business, public and government
What is and should be the power relationship
between organizations and society?
Are organizations “instruments of market tyranny”
or largely shaped by larger social and economic
forces?
Jihad vs. McWorld
7. Pfeffer and Salancik, The External
Control of Organizations
Organizations are controlled more than they control
their external environment
Organizations are “other-directed”
Struggle for autonomy and discretion in the face of
constraint and external control
Confront conflicting demands from multiple
constituents
Organizations’ understanding of environment is often
distorted, imperfect
Dilemma: alliances essential to gain influence, but
reduce autonomy by increasing dependency and
obligations
8. Conclusion
Organizations are both arenas for internal
politics and political agents with their own
agendas, resources, and strategies
Arenas house contests, shape ongoing
interplay of interests and agendas
Agents exist, compete and co-evolve in larger
ecosystems (“organizational fields”)