Chapter 11 Political Arenas and Political Agents
Chapter 11
Organizations as Political Arenas and Political Agents
Introduction: Wal-mart Founder: Sam Walton Started in 1945 as proprietor of 2nd best variety store in small Arkansas town Over 2 million associates > 90% of American households shop at Wal-mart Wal-mart effect: multiple ways this organization influences consumers, vendors, employees, community, environment Example of Wal-mart's political influence: disappearing cardboard packaging for deodorants; costing $0.05 Organizations are both arenas for internal conflict, they house an ongoing interplay of players and agendas; directives from the top with pressures from below And political agent or player operating on a field crammed with competitors pursuing parochial interests, serving as powerful tools for achieving the purposes of those calling the shots; organizations operate in complex ecosystems (interdependent networks of autonomous organizations engaged in related activities and occupying popular niches
II. Organizations as arenas Today’s winners, can be tomorrow's losers; change and stability are paradoxical--organizations constantly change and yet never changes Barbarians at the Gate--Ross Johnson's example He began his career in the 60's Charming, humorous, charismatic--moved ahead By the mid 70's he was second in command (to Henry Weigl) of Stanford Brands Lavish spending placed him at odds with his boss Wooed members of the board and gained more influence that Weigl Eventually gained control over the company His lavish spending etc., produced mediocre business results 1981--Nabisco proposed a merger of two companies--1.9 billion deal Everyone thought Nabisco would be in charge (over Johnson) Johnson used his "political talent" to win over the Nabisco chairman Johnson eventually took over the company 1985--another call from RJ Reynolds company (tobacco) Soon merger transpired; 4.9 billion Johnson used his
Organizations as Political Arenas and Political Agents
Introduction: Wal-mart Founder: Sam Walton Started in 1945 as proprietor of 2nd best variety store in small Arkansas town Over 2 million associates > 90% of American households shop at Wal-mart Wal-mart effect: multiple ways this organization influences consumers, vendors, employees, community, environment Example of Wal-mart's political influence: disappearing cardboard packaging for deodorants; costing $0.05 Organizations are both arenas for internal conflict, they house an ongoing interplay of players and agendas; directives from the top with pressures from below And political agent or player operating on a field crammed with competitors pursuing parochial interests, serving as powerful tools for achieving the purposes of those calling the shots; organizations operate in complex ecosystems (interdependent networks of autonomous organizations engaged in related activities and occupying popular niches
II. Organizations as arenas Today’s winners, can be tomorrow's losers; change and stability are paradoxical--organizations constantly change and yet never changes Barbarians at the Gate--Ross Johnson's example He began his career in the 60's Charming, humorous, charismatic--moved ahead By the mid 70's he was second in command (to Henry Weigl) of Stanford Brands Lavish spending placed him at odds with his boss Wooed members of the board and gained more influence that Weigl Eventually gained control over the company His lavish spending etc., produced mediocre business results 1981--Nabisco proposed a merger of two companies--1.9 billion deal Everyone thought Nabisco would be in charge (over Johnson) Johnson used his "political talent" to win over the Nabisco chairman Johnson eventually took over the company 1985--another call from RJ Reynolds company (tobacco) Soon merger transpired; 4.9 billion Johnson used his