Organization Power &
Subject- Organization Behavior
Types of Power
A capacity that A has to influence the behavior of B so that B acts
in accordance with A’s wishes.
Power based on one’s position in
the formal hierarchy
Coercive Power based on fear
Power based on the ability to
distribute something that others
Power based on one’s expertise,
special skill, or knowledge
Power based on identification
with a person who has resources
Creating Matrix Organizations
• Matrix Organization
– An organization structure in which
employees are permanently attached to
one department but also simultaneously
have ongoing assignments in which they
report to project, customer, product, or
geographic unit heads.
– The Matrix Structure (ppt 19)
• Used in advertising agencies, aerospace firms,
research and development laboratories,
construction companies, hospitals, and so on.
• The matrix combines two forms of
departmentalization—functional and product.
• The strength of functional departmentalization is
that it puts like specialists together.
Matrix Organizational Structure
• The matrix organizational structure is one in
which functional and staff personnel are
assigned to both a basic functional area and
to a project or product manager
• The matrix form is intended to make the best
use of talented people within a firm by
combining the advantages of functional
specialization and product-project
• Access to expertise.
• Stability of
• Allows for focus on
• Confusion of
• Power struggles and
• Lost time in
• Excess overhead for
• Boundaryless Organization
– An organization in which management
strips away the “walls” which typically
separate organizational functions and
hierarchical levels, through
the widespread use of
teams, networks, and
– The Boundaryless Organization
• Former General Electric chairman, Jack Welch,
coined the term boundaryless organization to
describe what he wanted GE to become.
– The boundaryless organization seeks to eliminate the
chain of command, have limitless spans of control,
and replace departments with empowered teams.
• By removing vertical boundaries, management
flattens the hierarchy.
– Status and rank are minimized.
– And the organization looks more like a silo than a
– Cross-hierarchical teams, participative decision-
making practices, and the use of 360-degree
performance appraisals are examples of what GE is
doing to break down vertical boundaries.
• Functional departments create horizontal boundaries.
– Reduce these barriers with cross-functional teams and
organize activities around processes.
– Cut through horizontal barriers using lateral transfers and
rotate people into and out of different functional areas. This
approach turns spe-cialists into generalists.
• When fully operational, the boundaryless organization also
breaks down barriers to external constituencies and barriers
created by geography.
• Globalization, strategic alliances, customer-organization
linkages, and telecommuting are all ex-amples of practices that
reduce external boundaries.
• The one common technological thread that makes the
boundaryless organi-zation possible is networked computers.
– They allow people to communicate across
intraorganizational and interorganizational boundaries.
virtual organization—a small, core organization that outsources major
business functions. In structural terms the virtual organization is highly
centralized, with little or no departmentalization.
This is a quest for maximum flexibility. These “virtual” orga-nizations
have created networks of relationships that allow them to contract out
manufacturing, distribution, marketing, or any other business function
that man-agement feels can be done better or cheaper by others.
The core of the organization is a small group of executives, overseeing
in-house activities and coordinating relationships with the other external
The major advantage to the virtual organization is its flexibility.
The primary drawback to this structure is that it reduces management’s
control over key parts of its business.
2, New possibilities are investigated
and a promising way is chosen
3, The new way to
work is implemented
1, Shake up people's
habitual modes of thinking
to heighten the awareness
of the need for change
Lewin’s three-phase model of change
take the organization from its current state to a more desired
• Develop a vision for the need to change (transformational
leadership) through the process of organizational
diagnosis and creative thinking.
• Resistant to change is the most problematic issue in
management of change.
• To describe the current state, use for instance the PEST
analyze. Even temporal (historical) and internal
environment must be assessed (info about total system)!
Questionnaires, interviews, observations and
organisational documents, can be used
• Disturb the status quo by strengthing or weakening the
resistant to change through an awareness of what will
happen if nothing changes. Use for instance Force Field
Visualize the power balance and the strong
forces in the form of feelings, values,
power and politics that are restraining
a lack of trust
1, An automatisation of the production process, due to uneven quality and long lead times
No change Chang
1, Involve all the personal in the design of the
new process and educate them in the new
2, The increased competition will otherwise put us out of
• A systematic (brainstorming – research)
search for new ideas to take the organization
from its current state to a desired future state
through dialogue with all concerned in order
to create an understanding for the need to
change and to use all ideas and
creativeness of the people involved.
• The use of continuous data collection and feedback is
essential to keep track of how the change is
progressing and to monitor for further change in the
light of environmental changes.
• The use of surveys and interviews is one way of
collecting data. (Data to be collected depends on the
• Symbolic actions, such as change of logo, forms of
dress and ways of grouping people, as well as
leadership could be one way to manifest ”the new way