Influence of Organizational Politics on Strategic Decision-Making

Topic: Decision Making
Words: 357 Pages: 1

A modern organization in its development is constantly influenced by the external environment, adapting to changes. It must have the ability to form and accumulate capacity, which can provide a timely response to the effects of the external environment and give the ability to manage many elements of the organization effectively. Organizational politics is necessary to address various areas of the enterprise.

A critical part of launching and running a small business is creating a mission or vision for the business and a set of goals that the company seeks to achieve. The process of organizational politics making is a method of influencing and interacting with a company’s strategy (Narayanan and Fahey, 1982). The strategy involves developing plans and measures to achieve goals while considering the organization’s capacity, capability, and the specifics of organizational policy. A clever strategy and its proper construction will allow one to reach significant heights in a competitive environment.

Strategic management relates to the most critical trends in the external environment over a significant period and their response. Organizational politics establishes clear links between different units and divides rights and responsibilities between them, thus, delegating strategic decisions between company personnel. Strategic decisions require a comprehensive approach to the management of an organization (Rowe, 2001). Correct organizational politics creates interaction between all departments of the company and expands the functional areas of employees, which improves the efficiency and productivity of activities. An essential factor is that organizational politics is constantly being improved as the organization’s strategy changes. It has a significant impact on the functioning of the strategic management system.

Organizational politics is a set of the most critical propositions accepted by the organization’s members and expressed in the organization’s stated values that guide people’s behavior and actions. Each management segment is interconnected with the others, and if one of them ceases to function correctly, the whole organization is affected. The alignment of organizational culture is critical to identifying successful human resource practices that will shape the organization. Overall, an organization’s processes, structures, behaviors, and level of competitiveness shape its overall performance. Thus, organizational politics affects all performance characteristics in one way or another.

Reference List

Narayanan, V. K. and Fahey, L. (1982). ‘The micro-politics of strategy formulation’, Academy of Management Review, 7(1), pp. 25-34. Web.

Rowe W. G. (2001). ‘Creating wealth in organizations: The role of strategic leadership’, Academy of Management Perspectives, 15(1), pp. 81-94. Web.