ORGANIZATIONAL

THEORIES, STRUCTURE,
DESIGN & DEVELOPMENT
-IES MCRC
-Bandra

Determinants of
Organizational Structure
power-control

- Lecture 11

Determinants of Organization
Structure

Power-Control View:

An organizations structure, at any given time, is

to a large extent the result of
those in power selecting a structure
that will, to the maximum degree possible,
maintain & enhance their control.

For Strategic choice

Against Strategic choice

Decision-makers
Decision makers are
restricted by

Have more
autonomy
1. Commitments

See OE as a range Physical

Human resources

Have Power &

Legal
control to
2. Barriers to entry
manipulate their

Economies of scale
environment

Absolute cost

Make perceived

Product differentiation
interpretations of
their environment

Decision-makers
Establish goals Think Act Realize goals
Consequence

Non-rational decisions
Divergent Interests
Dominant Coalitions
Power

Hierarchical Authority
Control of Resources
Network centrality

Power-Control Model
The decision
Will be made
By the dominant
coalition

Strategy, size,
Technology,
environment

Satisficing
level
of OE

Structural
Alternatives

The criteria
& preferences
In the decision
Will reflect the
Self-interest of
The dominant
coalition

Emergent
Structure

Power-Control exhibits

Low Complexity
High Formalization
High Centralization

Activity-1
CEO

PRODUCT MGR

FINANCE MGR

Tabulate the effects on

above basic organization
structure with reasons due
to:

HR MGR

: Power-Control (more/ less)

Activity-2

Using the Power-Control perspective,

describe how most organizations are
stuctured?

Answers must be based on the following:

Non-rational decisions
Divergent Interests
Dominant Coalitions
Power

Hierarchical Authority
Control of Resources
Network centrality