The power school forms strategy as a process of negotiation. The word power is used to describe the exercise of influence beyond the purely economy. Power relationships surround organizations as well as infuse them. There are two types of powers: micro power – deals with the play of politics (inside) and macro power – concerns the use of power by the organization.
The power school presses for a better understanding of the role of organized and unorganized individuals that shape organizational behaviors (micro power). The benefits of politics with in organization are the following:
- Politics as an influence can bring the strongest to leadership.
- Politics can ensure that all sides of an issue are debated.
- Politics may stimulate necessary change of influence.
- Politics can ease the path for the execution of change.
Macro power reflects the interdependence between the organization and its environment. The purpose of politics is to accomplish a particular goal without confrontation.
The premises of the power school is as follows:
- Strategy formation is shaped by power and politics by internal or external environment.
- Strategies that result from such a process tend to be emergent, and take the form of positions and ploys more than perspectives.
- Micro power sees strategy making as the interplay.
- Macro power sees the organization as promoting its own welfare controlling and cooperating with the external environment.
The power school has contributed in the way of introducing vocabulary such as, “collective strategy.” The school also highlights the importance of politics in promoting strategic change or resisting change.