12.5 Flashcards
What is subunit power?
Power held by departments or job groups in an organization.
How do subunits get power?
By controlling strategic contingencies that affect organization effectiveness.
What does controlling strategic contingencies mean?
Being essential to other subunits’ work or overall organization success.
What is the role of scarcity in subunit power?
Scarcity increases subunit power if they can secure important limited resources.
What is an example of scarcity affecting subunit power?
Departments with research grants gained more power than those with many undergrads.
How does uncertainty affect subunit power?
Subunits that reduce or manage uncertainty gain more power.
What is an example of uncertainty affecting subunit power?
IT departments gained power during COVID-19 by enabling remote work.
What does centrality mean in subunit power?
How crucial a subunit is to the organization’s workflow or mission.
What makes a subunit central?
If it affects most other units, the main product/service, or has immediate impact.
What is an example of centrality?
Finance departments are central because they handle payments for all departments.
What is substitutability in subunit power?
A subunit’s power is low if others can easily do its work.
How does non-substitutability affect power?
If the subunit’s staff or tasks can’t be replaced, they have more power.
What weakens a subunit’s power?
If their work can be outsourced or done by others.
What is an example of substitutability reducing power?
Use of crowdsourcing reduced power of internal R&D units.
