Download - Mintzberg's Power School
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The Power School
Strategy Formation as a Process of Negotiation
Levine Jade L. LuluYra D. Salazar
BA 190 – Strategic ManagementUniversity of the Philippines
Prof. Mita Angela M. Dimalanta
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strategy formation as an obvious process of
influence use of power and politics to negotiate
strategies favorable to specific concerns The term “Power” in this type of strategy is
used to describe the exercise of influence beyond purely economic
“Politics” – exploitation of power
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2 Branches of Power
School
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Micro power looks at strategy-making in the
form of political games which involves bargaining, persuasion, confrontation, and forming coalition groups among the organization.
Micro Power
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Insurgency Counterinsurgency Sponsorship Alliance-building Empire-building Budgeting Expertise
Political Games in Organizations
Lording Line versus staff Rival camps Strategic candidates Whistle-blowing Young turks
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Various actors and coalitions of actors pursue
their own interests and agendas. Subordinate groups can enter into the
processes of determining and distorting strategies.
Key points about Micro Power:
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The achievement of a strategy as an
integrated perspective, a single-shared vision, seems unlikely under political circumstances.
In political circumstances, we should expect no shortage of strategies as ploys.
Key points about Micro Power:
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Ensure the strongest members are in
leadership Ensure that all sides of an issue are fully
debated May be required to stimulate necessary change
that is blocked by the more legitimate systems of influence
Ease the path for the execution of change
Benefits of Politics
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the use of power by the organization
handling the demands of external factors and taking advantage for the organization’s benefit
Macro Power
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Macro power is the process of acting upon or
negotiating with, rather than reacting to, the external environment
External Control by Organizations
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An organization can simply deal with each
demand as it rises
An organization can strategically withhold and disclose information
An organization can play one group against the other
3 basic strategies
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It is an attempt to cope with political forces
through a rational approach.
Stakeholder Analysis
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Stakeholder behavior analysis
Stakeholder behavior explanation
Coalition analysis
Stakeholder Strategy Formulation
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controlling the power of external factors by
controlling their behavior.
Strategic Maneuvering
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Networks Collective Strategy Strategic Alliances Strategic Sourcing
Cooperative Strategy Making
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It is hard to describe strategy formation as a
process devoid of power and politics. The power school has introduced words
necessary to the field of strategic management such as “coalition”, “political game” and “collective strategy”.
Contribution of the Power School
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Bhandari, A. (2013). Strategic Management : A
Conceptual Framework. New Delhi: McGraw Hill Education Private Limited
Changing Works. (2016). Mintzberg’s Political Games. Retrieved from http://changingminds.org/explanations/behaviors/games/mintzberg_game.htm
Minztberg, H. (1998). Strategy safari : a guided tour through the wilds of strategic management. New York: The Free Press.
References