B300A - SAMPLE QUESTIONS

The answers to this random sample of questions focus on the course concepts and
models. Students are encouraged to use examples from the B300 course materials and
from you’re their experience (this could be workplace related or from materials they have
read or learned about outside B300) in their answers.

DECISION MAKING MODEULE

QUESTION ONE
Organisational culture can be defined as a set of people sharing many beliefs, values
and assumptions that encourage them to make mutually reinforcing interpretations
of their own acts and the acts of others. Discuss the implications of this view for the
process of organisational decision making. Support your answer with appropriate
concepts and examples from the B300 course materials

MODEL ANSWER:
This question refers mainly to section 3 of Module One and in particular chapter 12 by
Bate. The question does not quote directly from Bate, but the concept of culture as the
manifestation of shared beliefs, values and assumptions as highlighted in the question
should be recognisable by students as coming from Bate's work.
The overall objective of the question is to allow students to demonstrate that they
understand this definition of culture and that they can appreciate that if this particular
definition of culture is accurate, there are significant implications for the way that
decision-making occurs within organisations. Therefore, the question requires students to
clearly demonstrate their understanding of the meaning of culture and then to discuss the
implications of this understanding on the decision making process.
Better answers may show a more critical approach to this question, possibly by noting
alternative explanations for approaches to decision-making discussed earlier in the
module. Through the application of suitable examples they should demonstrate their

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understanding of the implications for organisational decision-making rather than just
being descriptive.
In any definition of culture, students are expected to show their appreciation of the
following key areas, based upon Bate’s chapter:
• that it is implicit and unobservable, but it is present within an organisation. By
implication, organisations need a clearly defined culture to enable individuals to
fit in and understand what is required of them
• organisational culture is shared, implying common ideas, meanings and values
subscribed to collectively
• that it is transmitted by a process of socialisation, which is a process of
conformity with patterns of behaviour emerging from the organisation's past
• hence, organisational culture emerges from within and is sustained by the
organisation rather than being imposed upon it from above or outside.
The process of defining culture requires students to also discuss how the above
characteristics of culture can produce the ‘mutually reinforcing interpretations’
mentioned in the title.

For the second part of the answer, students should consider the implications, which can
have benefits as well as the negative aspects which is the focus of Bate’s research.
Bate’s work strongly identifies potentially negative implications for the effect of
organisational culture on decision making processes. The shared process by which the
understanding of an issue is built in an organisation establishes a culture which delivers
an inflexible approach to decision-making. This means that people make similar
assumptions and analyses and come to similar conclusions and, instead of seeing this as a
potential danger, they find it reassuring that they all come to the same conclusion.
By implication, therefore, decisions are not necessarily taken because they are right, but
can be taken because they fit in with the dominant expectations and perceptions of
managers within the organisation. Bates argues that not only does organisational culture
limit options in the decision-making process, it can create an environment in which
employees feel disempowered either by the dominance of the culture or by a negative
application of the culture and hence actively disengaged from the process.

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This is a pessimistic perspective, as the use of terms such as ‘socialised helplessness’
imply.

This implies the potential for managers to become entangled in ways of relating to
decisions which discourage challenge, review, analysis and learning. These are all the
elements of a decision-making process which we would emphasise as being good and
necessary for organisations to remain in tune with their competitive environment. This is
the key issue we hope to see students engage with.
Better students will note that Bate’s research and findings are only based on three
organisations during a very turbulent time within the British industrial context. Examples
of, with evidence, positive organisational cultures will be highlighted by better answers.

QUESTION TWO
Decision making in organisations tends not to be the product of economic
rationality. What are the main reasons for this? Support your answer with
appropriate concepts and examples from the B300 course materials

MODEL ANSWER:
The overall objective of this question is for students to show their understanding of the
limited extent to which the rational model underpins how organisational decisions are
made in practice. Students are expected to show an understanding of the concept of
economic rationality and how its main characteristics, or assumptions, are interpreted into
organisational decision-making behaviour.

Thus a brief but accurate description of the main assumptions that underpin the rational
model is an appropriate start, namely that:
• economic efficiency becomes the sole objective of the organisation, which drives
organisational decision-making processes
• individuals act as profit maximisers, that is, maximise rewards and minimise
costs. The assumption is that this transfers the concept of economic rational man
to a group situation

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 • ‘perfect’ knowledge is available
• the decision-making process follows a linear, step-by-step, logical approach, in
which all options are carefully considered and evaluated.
• There is a well-defined problem or objective with clear criteria for choosing the
option which maximises economic gain.
The main point of the question suggests that the rational decision-making processes may
be the exception rather than the rule. Students should be identifying the reasons for this.

Some of the main reasons for not following economic rationality for decision making
processes are:
• The assumptions underpinning the economic rational model either do not hold in
reality or they are too inflexible, e.g. individuals (acting singly or collectively) are
not profit maximisers; perfect knowledge is unrealistic and individuals’ ability –
individually or collectively – to consider and evaluate information and options is
limited, for example Simon’s views about ‘bounded rationality’. The
implementation stage of decision-making is basically ignored.
• Politics and power according to Pettigrew and cited by Miller et al are ever
present within organisations, based on the scarcity of resources. The rational
approach tends to ignore these factors.
• There are a number of other areas which the students may include, such as
Lindblom’s concept of incrementality, the Bradford Studies views about
complexity and politicality and some of Cyert & March’s arguments (see Q3
below). These are all legitimate responses.

Students should make sure to identify a number of the above reasons for economic
rationality not being realistic for decision making processes in organisations.

QUESTION THREE

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Taking the rational model as your point of reference, and relying on ideas put forth by
Janis, Cyert and March, and Miller et al. discuss what can go wrong in organizational
decision making. (50 marks)

ANSWER KEY

A number of variations are possible ideally students should start by briefly explaining the
rational approach of decision making:

The Neo-classical economic assumptions could be summarized as follows: Individuals

act as maximizing entrepreneurs. Decisions are logical and linear (step-by-step
processes)
Decision makers: (1) identify the problem, (2) collect and sort information about
alternative potential solutions, (3) compare each solution against predetermined criteria,
(4) arrange solutions in order of preference, (5) make an optimizing choice, and (6)
implement a solution where the rewards are maximized and costs are minimized.

Cyert, and March and Miller et al. offered an overview of the literature which identifies
the problems with and limitations of the rational decision-making model.

They have cited Simon’s views on bounded rationality: Perfect rationality can’t be
attained. Some information is unavailable or misrepresented, and some criteria are
uncertain. Therefore, the outcome is a “satisficing” rather than an optimizing choice.
Managers have “bounded rationality”: their behavior is reasoned, not irrational (this has
constraints, like in groupthink)
Routine matters (lower down in the company) are “programmed” decisions. The unusual
and strategic decisions taken by managers and executives are the “non-programmed”
decisions. They set precedence for future decisions.
Sometimes the information gathering and the solutions are difficult in a way that step-by-
step is not possible. “Problemistic search” may occur: responding to problems rather
than exercising foresight.

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There are competing interest groups who might try to control scarce resources, which can
result in political behaviors and power games in organizations. This will in turn give rise
to constraints and bounded rationality.
Top management and executives have “rational-legal” power.
Power holders may manipulate information, push for preferred alternatives, and suppress
opposition. There will be bargaining, negotiations, and compromises. The outcome will
be less than optimum for everyone involved.

Differentiation and special interests in each dept. will result in “power play”. Each group
has its norms and goals that serve their interests.
Procurement might gain power because they control resources. Also, marketing for
example can get influence and power because they manage demand.
Coping with uncertainty and risk confers power. Managing uncertainty on behalf of
others gives an important power base
Special interests, negotiations, and bargaining will lead to “quasi resolution of conflict”
and “negotiated order”. Power positions are formed and then transformed depending on
the topics discussed.
There are biases, politics, and things “behind the scenes”. Some decisions don’t get on
the agenda in order to suppress conflict and exercise power (non-decisions) (Bachrach &
Baratz; 1962). These issues don’t get decided because they are controversial and might
upset stakeholders.
Decisions are far from logical appraisal and selection of alternatives (they can get
political).

Lindblom’s work also highlights the limitations of the rational approach and
presents an alternative view of decision making. Lindblom analyzed decision making in
public institutions, decision making is not linear nor sequential, but incremental with
reformulation. Solutions that are not much different from status quo are considered.
Small steps are taken so that there is no radical change and so that major stakeholders are
not upset. Things therefore can be somehow predictable and reversible. However, if the
company is in crisis, incrementalism is not enough.

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Some actions are taken with “quasi-decision”, or even without decision. Strategies might
emerge without deliberate decisions. At the macro level, management might imitate other
companies. Satisficing results in sequential attention to goals (cautious action with eye on
the competition). Decisions are determined by socio-political factors. “enterprise culture”
can happen where government policies will shape and affect strategic decisions.

Janis and Valentin on their part have addressed the heterogeneous and negotiated
nature of organizational goals. The existence of conflict and negotiation in organizations
means that decision making is limited in various ways by various routines, habits, and
compromises.

Janis has focused on the limitations created when a group suffers from group
think. He hypothesized that group think exists when the members of a small cohesive
group tend to maintain “Esprit de Coprs” by unconsciously developing a number of
shared illusions and related norms that interfere with critical thinking and reality testing.
Janis’s views shed light on what can go wrong in organizational decision making when
the team suffers from groupthink. Group members tend to seek concurrence at the
expense of seeking information, critical appraisal, and debate. Complacent over
confidence in the face of vague uncertainties, tunnel vision, misrepresentation of
information, or failure to make sense of it all create an enormous gap between conception
and actuality. Accordingly Janis identified the features of decision making which
represent a deviation from the rational model, i.e. over-reliance on experience, misplaced
deference towards authority, willingness to compromise, and the use of flawed
assumptions.

QUESTION FOUR

Describe the political approach to organizations, and the implications of their

implementation to the analysis of decision making. (50 marks)

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ANSWER KEY

A number of variations are possible, students need to focus on Pettigrew’s analysis of the
political aspect of decision making within organizations.

Pettigrew (1973) was trying to recognize the operation of an essentially political

process in which constraints and opportunities are functions of the power exercised by
decision makers in the light of ideological values. The political perspectives are
distinguished form simple office politics. Politics are generated by the structure of
organizations. Structures are designed by the powerful, but they also allocate power.
They create specialism, which develop loyalties and interest, which in turn breed politics.
The major themes of Pettigrew’s work are focused on the role of conflict, politics, co-
operation, and most importantly power. Decision makers exercise power which is
influenced by their ideologies. Decision makers’ power faces constraints and
opportunities.

A political perspective on organization and decision making is necessary in order

to understand the realities of decision-making processes and outcomes.
Politics are normal in organizations since organizational structures and hierarchies
systematically produce differences of interest and viewpoint that impact decision making.
Politics inevitable involve patterns and relationships of power within organizations.
However, it is important to distinguish power from authority and to recognize numerous
informal possibly subordinate, bases of power.
By claiming that they are acting in the interests of the company, people legitimize their
behavior. No one regards himself as a politician. For instance, technical engineers can
exert some power over their superiors, because of their control over uncertainty. In the
company, there are different interests based on specialized functions (sub-units), and
hierarchical positions. Some joint decisions can happen (interdependence). Conflict is
likely because of scarce company resources.
Political behavior is central to organizational structures and processes. Generating
support for your demand results in creating a political dimension. Political behavior

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arises from the unequal distribution of organizational resources and the creation of
particular loyalties and perspectives through organizational differentiation. Political
behaviour is: “behaviour that makes a claim against the resource-sharing system of the
company. Those who control resources have power and high status. Those who don’t
have power will try to enter into coalition with others in order to leverage some power
and status. Information failures that characterize “bounded rationality” and “groupthink”
are rooted in structural problems of hierarchy, specialization and centralization. Sub-
groups can form coalitions to improve bargaining and generate support. Researchers and
sociologists get financial support from companies. They might hide political struggles
taking place in the company. According to Parsons, authority refers to the legitimate
position of a person in a group within which the use of power as a medium is organized
and legitimized. Therefore, authority is a basis of power. Power also means solidarity
and collective goal achievement. Giddens spoke of the hierarchical character of power:
there is conflict between those who want power and those who have it. Therefore,
possible strategies of coercion, deceit, and manipulation can happen. When groups
compare power and wealth and status with other groups, discontent and conflict can
result. People will start to question the legitimacy of the system of distribution of
authority and rewards. Power is a property of social relationships (dependency).
Dependency involves resources, opportunities, and anything that someone can exploit in
order to affect the behavior of another. Resources are to be possessed and controlled by
the power holder. In companies, dependency is controlling access to resources of
information, people and instrumentalities. Lower ranking members can make higher
ranking members depend on them. Control over information is a critical resource for
mobilizing power in a decision-taking situation. Influence of subordinates over superiors
on non-programmed (unusual) choices can be great, because subordinates might know
more. The amount of support a person achieves is conditional on the structure and nature
of his relationships in the company (respect, acceptability, feelings of indebtedness).

Pettigrew sees that decisions are made via processes which are affected by
properties of the units in which the decision is to be made. Information failure that
characterize groupthink and bounded rationality are rooted in structural problems of

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hierarchy, specialism, and centralization. Conflict in a joint decision making process may
arise not only as a result of differences in goals and perceptions but with regard to the
transference of authority over a particular area from one subunit to another. He focused
on the origins of power relations and politics in the structure of organizations and not
simply on their manifestations.

QUESTION FIVE

At the heart of Cyert & March’s Behavioural Theory of the firm are the four key
concepts of:
1. Quasi resolution of conflict
2. Uncertainty avoidance
3. Problemistic search
4. Organisational learning

Choose two (2) of these and discuss their impact on decision making

MODEL ANSWER:
In order to answer this question appropriately, students will need to compare Cyert and
March's views to the rational decision-making processes.

Cyert and March argue that there are three principal features of organisational decision-
making that help to explain the variance between rational decision-making and what
happens in practice. They suggest that organisational goals, organisational expectations
and organisational choice very and differ from the singular goal of profit maximisation.
In each of the three areas, Cyert and March argue that the following four concepts are
critical and help to explain why the process of organisational decision-making is non-
rational in practice:
1. quality resolution of conflict - overview of how different and conflicting goals,
expectations and preferences are resolved

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 2. uncertainty avoidance - via avoiding the requirement that future events are
correctly anticipated, for example, focusing on the near short-term, or a
‘negotiated environment’ aimed at getting gaining control by, for example,
establishing plans, procedures, industry wide standards, etc. These are attempts to
eliminate uncertainty
3. Problemistic search - determined by simple, specific problem driven/problem
solving motivation, which includes bias in research rather than random curiosity
aimed at understanding beyond the point required for control, which would
involve complex, and exhaustive and objective research
4. organisational learning - which involves an adaptation of goals and adaptation in
attention rules and search rules

Students can select two of these four key concepts to discuss. A key objective is for the
students to explain that all of these approaches are irrational when compared to the
rational approach to decision-making.

QUESTION SIX
Information failures that limit organisational rationality are rooted in structural
problems of hierarchy, specialisation and centralisation and do not just reflect the
malfunctioning of thought processes. Discuss this view. Support your answer with
appropriate concepts and examples from the B300 course materials

MODEL ANSWER:
This is a wide-ranging, rather general question. While it has connections with specific
chapters in the Decision-Making Reader, it also relates to the module as a whole.
It is important for students to look carefully at the question to draw out the main issues.
First of all, it is accepted that much decision making is of limited rationality. That is the
basis of and starting point for the Decision Making module. Second, it suggests that the
rationality of organisational decision making is limited by aspects of the organisation
itself and ‘not just ... the malfunctioning of thought processes’.

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In other words, intelligent people may make odd and irrational decisions because of the
structure of the organisation in which they work.

The question asks the students to consider the possibility that the organisational
rationality can be limited, specifically through information failures, by structural features
of the organisation. Students are also asked to discuss the ways in which organisational
rationality can be limited.

The main concern of this question is the ways in which hierarchy, specialisation and
centralisation do limit rationality. Students will need to consider, describe and offer
examples of each of these factors. For example, hierarchy can give rise to deference to
managers and senior people and ‘groupthink’; specialisation can cause people to focus on
local priorities and objectives at the expense of larger, more general purposes and
centralisation can distort, overload and confuse information systems.

Janis’ chapter can be used as an example of the role of hierarchy, The Bradford Studies,
cited in Miller et al, discuss the two categories of politics and complexity and these are
very relevant to the three sources of irrationality listed in the question.

QUESTION SEVEN
Decision making in organisational is essentially a political process. Build a
convincing case to support or oppose this position. Support your answer with
appropriate concepts and examples from the B300 course materials

MODEL ANSWER:
This question is essentially divided into two parts. The first part asks students to explain
the political perspective as developed by Pettigrew, although Miller et al have included
some important aspects. The second part of the question calls for an identification of its
main implications for the decision-making process.

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Pettigrew seeks to ‘recognise the operation of an essentially political process in which
constraints and opportunities are functions of the power exercised by decision makers in
the light of ideological values’. Pettigrew’s basic thesis is that power and politics are
always present in decision making as they are ever present in all aspects of organisational
life, especially when there is a scarcity of resources.

That the decision making process becomes one area, or even the main area, in which
politics is enacted probably comes, in no small part, from the fact that the outcomes of
decisions impact closely on the structure of dependent relationships within and possibly
between organisations and, hence, the power structure.

This in turn introduces the idea of interests embedded within units. It is the role
occupants, acting in their unit’s interests, rather than individuals acting in their own self
interest, that impacts upon the decision-making processes to preserve or promote unit
interests.

Students’ answers should recognise and understand that political behaviour not only
exists, but it also shapes processes (and outcomes). Examples should be used to support
students’ arguments.

An explanation of its main features is likely to include:

• political behaviour is defined as “... behaviour by individuals, or, in collective
terms, by subunits, within an organisation that makes a claim against the resource
sharing system of organisation...” that political perspective, in the sense that
Pettigrew argues, must be distinguished from the more trivial notion of ‘office
politics’
• power is at the heart of the political perspective and recognition of this is essential
in order to understand the realities of the decision-making process and its
outcomes
• political behaviour can be regarded as ‘normal’ in the sense that it is
organisational structures and hierarchies that generate political behaviour.

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 Structures are designed by the powerful, but they also allocate and confer power.
Inevitably, structures that create specialisms, which produce loyalties and
interests, are the breeding grounds where differences of interests or viewpoints are
evident.
• Political behaviour inevitably involves the pattern and relationships of power
within organisations, but it is important to distinguish power from authority

There are other issues surrounding Pettigrew's views about power and politics, which
students may also raise.

The main implications for decision-making include:

• the political view of decision-making is fairly direct in that it is the interaction of
the unit interests that influences or shapes or frames ‘issues’ or ‘problems’. It can
even control the discussion of issues, for example, that some decisions do not get
on the agenda for consideration
• political behaviour can also influence the criteria that are used to evaluate options
in the process of making decisions
• political action can also seriously impact the otherwise sequential and linear
progression of the process, thus causing delays or even chaos. In the meantime,
rival interests gather support either in a political sense of coalition building or by
commissioning studies which support their position and/or undermine others’
positions, for example, the employment of consultants.

Pettigrew argues that there is more than one ‘rationality’. That is, decisions have a
political rationality as well as an economic rationality. Also, political activity in decision-
making is not necessarily negative; it can result in positive outcomes.

QUESTION EIGHT
“The ideal decision-making process is unrealistic and a realistic decision-making
process is far from ideal”. Explain the reasoning behind this statement with

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reference to the rational model and to those approaches that deviate from the
rational perspective.

MODEL ANSWER:

This question refers to the concept of rational choice models, notably found in Cyert &
March’s article (chapter 3 in Reader One) and Miller et al’s discussions in chapter 4. The
neo-classical economic assumptions which lie at the heart of the ‘so-called’ classical
rational model are that:
• Individuals normally act as maximising entrepreneurs (i.e. maximising rewards,
minimising costs)
• Decisions are thought to be arrived at by a step-by-step linear process
• Decision makers themselves identify the problem or issue about which a decision
has to be made
• The process involves collecting and sorting information about alternative
solutions in order to:
o Compare alternatives against pre-determined criteria to assess the degree
of fit
o Rank alternatives in order of preference
The main reasoning behind this statement rests on the following:
The classical rational model may be regarded as the ideal process in the sense that:
• It is intended to reach decisions that optimise choice by identifying the most
efficient allocation of resources in the circumstances
• The process rests on assumptions that are subject to testing and critical analysis
• The process also rests on the need for objective information to be assessed by
means of well defined criteria
• Decisions are reached in a normally linear logical way such that the process is
sufficiently robust to withstand scrutiny and review, regardless of either the
success or the effects of the desired outcome

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However, this ‘ideal’ is unrealistic to the varying extent that the underlying tenets of the
rational model do not correspond to reality. For example:
• Individuals may not act as maximising entrepreneurs
• Individuals may not operating as individuals but in an organisational environment
which influences their approach in ways that may not be rational in the neo-
classical sense
• Decisions are reached in an unplanned manner
• the nature of decisions themselves may differ according to whether they are
‘programmed’ (routine) or ‘non-programmed’ as Simon argues
• information may be far from perfect and humans’ grasp of the available
information may also be very limited and therefore far from perfect

Realistic decision making recognises factors that lie outside the sterile world whose
boundaries are defined by the neo-classical economic assumptions which lie at the heart
of the so-called classical rational model:
These factors include (but are not limited to):
• behavioural theories of the firm as outlined in chapter 3 by Cyert & March,
whereby the influence of organisations on the decision making process is taken
into account
• These include:
o Quasi resolution of ‘conflict’ in view of organisation goals, expectations
and choice
o Uncertainty avoidance either via feedback-based learning or negotiating
an environment so as to eliminate uncertainty
o Problemistic search, that is, ‘depressed by a problem solution’, driven by
simple rather than complex causality, where the search may be biased
o Organisational learning, as do human beings, which involves adaptation of
goals and adaptation in attention rules and search rules

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Managerial rationality, as outlined by Miller et al in Chapter 4, based on Simon’s view
that ’rational economic man’ or the ‘rational actor’ is constrained or ‘bounded’ by:
• The complexity of modern organisations
• People’s own limited cognitive capacities and, therefore, to varying extents, are
unable to operate under perfect rationality
That varying may depend on the type of decision, for example, ‘programmed’ or ‘non-
programmed’

The enactment of power, again as outlined by Miller et al and by Pettigrew in chapter 5,

whereby decision making may be seen more accurately as a ‘game of power’ in which
competing interests contend with one another for control of scarce resources. These
aspects of power go beyond Weber’s ‘rational-legal’ or authorised power and address
how power may be exercised in ways that lead to outcomes which are less than rational
from the neo-classical perspective. For example, holders of power may exercise their
power to further their own sectional interests, particularly ‘differential’ interests aiming at
coping with uncertainty or to subdue conflict by keeping some decisions off the agenda
(‘non-decisions’ by Bacharach and Baratz).
Empirical studies of decision making processes have added weight to the criticisms of
rational choice models as being idealised prescriptions depicting an unreality, e.g.
Lindblom, Hickson et al (The Bradford Studies),.

The realism of much decision-making has been called in to question by writers such as
Mintzberg & Waters who argue that the very concept of ‘decision’ as a discrete,
deliberate and conspicuous action belies the reality of some organisations’ unstructured
decision-making processes.

As can be seen by the length of this marking guide, this is a very wide ranging question,
which can be answered by taking a broad-brush or a narrow and deep approach. Either
approach can gain high marks.

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Students who just describe the neo-classical processes should not be awarded a pass mark
– they need to show an understanding of the underlying theoretical perspectives.

Pass marks are to be awarded for answers that discuss both sides of the arguments. i.e.
the neo-classical ‘ideal’ approach and the arguments why this is not achievable.

QUESTION NINE
Decision making in organisations is, essentially, a political process. Build a
convincing case to support or oppose this claim

MODEL ANSWER:

This question is based very much on Pettigrew’s chapter, with additional material from
Miller et al and Cyert & March.
The key concept from Pettigrew is, “Political behaviour is defined as behaviour by
individuals, or, in collective terms, by sub-units, within an organisation that makes a
claim against the resource-sharing system of the organisation.” He goes on to talk about
where there is “an inevitable scarcity of those resources, political behaviour will occur”.
Pettigrew links political behaviour with power – the power to influence decision making
processes among other things.
In other words, Pettigrew is arguing that political behaviour and power struggles are a
normal part of organisational behaviour as resources are usually scarce in businesses
This is the main premise for this answer and students should be expected to highlight it in
some way or other that shows that they understand it. They should NOT be expected to
quote Pettigrew exactly!

It is very important that students have a good understanding of this!!

Pettigrew argues that sub-units try to influence the decision-making processes, by

political behaviour, to enable them to acquire scarce resources for meeting their own sub-

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unit goals and/or to meet the individual goals of members, such as promotion or to serve
their own interests
Pettigrew contends that political behaviour, relating to the balance of power in
relationships in organisations, can be seen within sub-units of organisations in various
forms, such as positional power, which is from formal authority or ‘rational-legal’ power,
as outlined by Weber. Power can also accrue to ‘experts’ and to members who have
control over information. A major factor is also a property of social relationships, which
includes the idea of dependency.

An important factor in this analysis is that, even though experts may have power because
executives rely on their knowledge in decision-making processes, executives, through
their formal authority, “have ultimate power to hire and fire experts”. This enables
executives to have a “major control over the power strategies of the experts.” So experts,
among others, can behave politically in terms of trying to obtain scarce resources, the
amount of power they can actually wield will depend on the context.
These views are supported by writers as outlined in Miller et al. For example, The
Bradford Studies propose that ‘politicality and complexity’ are involved in decision-
making and Miller et al argue that decision-making can be seen as being “ ...at the centre
of political machinations and intrigue, ...”.

Cyert & March also discuss how organisations deviate from the classical approach to
decision-making because departments (sub-units) concentrate on achieving their own
goals rather than organisational aims. This aspect can lead to conflict and political
behaviour. In Cyert & March’s term, there is a quasi resolution of conflict, that is, it is
not a real resolution. Therefore, the conflict is still there and decision-making processes
do not satisfy organisational aims as different departments focus on satisfying their local
goals.

One final aspect that students could write about is the concept of ‘non-decisions’.
Bachrach and Baratz (cited in Miller et al) argue that “controversial topics that go against
the interests of powerful stakeholders” are taken off the agenda and are not decided upon.

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Thus, following the definition of political behaviour, there is a great deal of material
which students can include.

QUESTION TEN

Explain briefly what Bate means when he says that organisational culture revolves
around “certain ways of believing, thinking and acting”. How might this impact on
the decision-making processes that managers might use? Illustrate your answer with
appropriate examples.

MODEL ANSWER:

This question mainly relates to Bate’s chapter in the Reader. It is related to the way
decision-makers think and learn as part of the process of decision-making within
organisations.

Please note the question calls for a brief explanation of Bate’s meaning with this phrase,
but then a discussion of how this might influence decision-making processes is the key
part of the this question.

Students should show that they understand this definition of culture what Bate means by
organisational culture and, then, show that they can appreciate that if this particular
definition is accurate, there are significant implications for the way that decision making
occurs within organisations. Better answers may demonstrate a more critical approach to
this question, possibly by noting alternative explanations for approaches to decision
making discussed earlier in the module.

Students should include, based on Bate’s views, such factors as unobservable and
‘implicit, embedded, strongly held, staunchly defended, shared, transmitted and
enforced’. All of these regulate the behaviour of people in organisations (and in wider

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society). By implication, organisations need a clearly defined culture to enable
individuals to fit in and comprehend what is required of them.

This is shared, implying common ideas, meanings and values subscribed to collectively
and that it is transmitted by a process of socialisation, a process of conformity with
patterns of behaviour emerging from the organisation’s past. Hence culture emerges from
within and is sustained by the organisation, rather than being imposed on it from above or
outside.

Students should identify that that the characteristics of culture identified by Bate almost
inevitably develop a set a normative responses to decisions – the character of which is
shaped by the culture of the organisation. Approaches to decision making are almost pre-
programmed, he would argue, rather than being the outcome of a rational process.

Bate’s work strongly identifies potentially negative implications for the effect of culture
on decision asking; that the shared process by which the understanding of an issue is built
in an organisation establishes a culture which means a prescriptive approach to decision
making. By implication, therefore, decisions are necessarily taken because they are right,
but because they fit with the dominant expectations and perceptions of managers within
the organisations.

Students should question the limitation of Bate’s research and, therefore, how much
validity there is in his findings or results. Examples of more positive organisational
culture than Bate’s research findings imply, should gain a higher mark.

QUESTION ELEVEN

Discuss the ways in which decision making criteria, objective and rationalities are
influenced by shared values and beliefs within organizations. (50 marks)

ANSWER KEY

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A number of variations are possible. Students’ discussion should focus on the way in
which shared meanings and culture within organizations influence managers’ decision
making as discussed by Bate (1984).

The term culture can be defined as the meanings or aspects of the conceptual
structures which people hold in common and which define the social or organizational
‘reality’. In their daily interactions with one another, people in organizations evolve a
system of shared perspectives of ‘collectively held definitions of the situation’ which
make up the culture of the organization. Culture in the organization can lock people in
with their own problems. It is the “commonsense” view of the world that’s implicit in
people’s minds. It provides us with an ‘order’ or rationale. We tend to interact with
people who are “similar” to us. It involves shared ideas, meanings and values that people
hold in common. Organizational culture is the social glue holding the company together,
and is usually transmitted by a process of socialization. People are required to conform
to patterns of thinking and acting. Culture encompasses a set of expected behaviors,
values and morality of society or organization.

Bate analyzed why some companies that apparently needed to change failed to do so.
He looked at the reasons people in organizations allow problematic and undesirable
conditions/situations to persist? He looked for the explanation in the nature of
organizations themselves. His study identified the existence of six unwritten rules of
behavior which affect people’s way of thinking and acting within organizations. Those
rules of behavior prescribe certain ways of believing, thinking and acting, which might
induce ‘learned helplessness’. Therefore, attempts at problem-solving may become
culture-bound. The six rules of behavior include:

 Unemotionality: ‘avoiding showing or sharing feelings and emotions’. Displays

of feeling were not desirable. No personal friendships among co-workers.
Managers considered that showing feelings was unprofessional. This culture
made people inflexible and overcautious.

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  Depersonalization: ‘to never point the finger at anyone’. People are vague about
the source of problems (naming individuals is seen as dangerous and unkind).
Sources of problems were generalized and externalized (blaming recession or the
currency…)
 Subordination: ‘never challenge those in authority’. People did not take
responsibility for solving problems. Deviants could be punished, and those who
challenged management authority were under pressure to back off. Workers don’t
talk about their problems.
 Conservatism: ‘better the devil you know’. Managers and workers had the belief
that things will never change.
 Isolationism: ‘do your own thing’. People not encouraged to form teams or
interact with others. Cooperation and expertise not utilized.
 Antipathy: ‘people will be opponents rather than allies’. Small interest groups are
formed. No trust in others. The belief is that issues were of a win-lose nature
(adversary principle). No compromise was sought. This pluralism preserves the
survival of interest groups (like management versus union), but it’s not effective
for problem-solving.

Organizational culture can shape patterns of organizational behavior. Certain cultural

orientations can constrain problem-solving behavior. Culture affects the type and quality
of interpersonal relationships. Shared cultural meanings define the acceptable, desirable
and effective ways of relating and acting. They constitute the ‘dominant relational
orientation’ of people working with each other. Culture shapes relationships and
interactions, and therefore it has social consequences. Culture can induce futility and
pessimism. Seligman’s “learned helplessness” can occur when a person perceives that he
can no longer control his own destiny. This will cause damage to problem-solving and
goal attainment.
Seligman stated that helplessness is the result of trying and failing. But this study
revealed that helplessness was transmitted by the culture to the organization’s members:
they felt powerless without even trying.

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Cooperation is very helpful in problem-solving; but problem-solving will suffer when we
have high degree of subordination, depersonalization, conservatism, isolationism,
antipathy, and a culture that’s highly cognitively rational

Paul Bates suggests in this chapter that the managers were actively colluding in a
situation which stopped them from resolving their problems. They were trapped by their
own attitudes. They were powerless because they believed themselves to be powerless.
The problem was not that the managers applied certain established recipes or cognitive
schemata, but that they were enmeshed in ways of relating which discouraged challenge,
review, analysis and learning.

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