Internal Politics and Strategic Management Failure
Internal politics at Hewlett Packard led to strategic management failure. Because of terrible political decisions, the company's revenues have fallen. In organizations, the political landscape takes on new dimensions, which can be harmful. Strategic leadership is a crucial management tool. Leaders must be able to persuade all stakeholders and management in a company to work toward the organization's goals. Individual influence and informal ties within a firm can have an impact on company strategy. In the case of underperforming managers, employees may lose faith in them. An unofficial organization may attempt to save a company's reputation by removing the managers. Informal networks among employees may also impede a strong strategic plan. Managers can counter informal networks that are doing harm to the organization by strengthening other networks.
Individual Interactions and Political Capital
Individual interactions and strong ties to the top management or high-status group may form a political capital. The senior management group can symbolize the strong and stabilizing foundation of a company. The decisions made by persons at this level depending on their agreement. A firm may benefit from the active top structures if they make the right choices. However, the power can also be misused when used for self-interests. Organizational culture is an essential factor in the growth and success of a firm. Some specific values and norms define an organization. However, a focus on the good signs can in itself be a barrier to proper strategy execution. Some agencies through political influence lose focus and get lost in their culture. The implicit firm behavior fails to align with the strategic goals of the day. The solution is to bring in fresh people who will act swiftly and do what the incumbents cannot do.
Organizational Structure and Systems
Organizational structure and systems may be combined with formal authority to form a high ground. The high ground is formed based on the political activities within an organization. The bases of political influence include policy guidelines, organizational structures, rules, and procedures. The disagreements in top management draw in on these bases. Employees should follow the organization's policy guidelines, rules, and procedures but to avoid much bureaucracy, individuals try to bend the rules. Lack of compliance with systems may hinder the company's strategic development (Mizrahi, 2016).
References
Mizrahi, M. (2016). Learning culture and organizational politics: a theoretical model and preliminary test of their impact on effective organizational auditing. Handbook of Organizational Politics,195-216.
