Chapter 7Power, Governance, and Decision Making

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Organizational power is the ability to influence outcomes, to have an impact on decisions. Leaders have power when they can make something happen. Decision making is the essence of management work. Peter Drucker, who was articulate about the relationship between power and purpose, made the case for a decision-focused approach to organization design (Drucker 1974). But the way power is allocated in big organizations is not always rational. Social psychologist Abraham Zaleznick argued long ago that competition for power is found in all structures and that business organizations, whatever else they ...

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