CHAPTER # 4
INFLUENCING: POWER, POLITICS,
NETWORKING, AND NEGOTIATION
• Explain the differences between position power and personal power.
• Discuss the differences among legitimate, reward, coercive, and referent power.
• Discuss how power and politics are related.
• Describe how money and politics have a similar use.
• List and explain the steps in the networking process.
• List the steps in the negotiation process.
• Explain the relationships among negotiation and conflict, influencing tactics, power, and
• Define the key terms listed at the end of the chapter.
The process of affecting
others’ attitudes and
behavior to achieve an
Source: Adapted from J. French and B.H. Raven. 1959. “The Bases of Social Power.” In Studies of Social Power. D. Cartwright, ed. Ann Arbor, MI: Institute for
• Confusion about influence and power than any other leadership
• Power is about influencing others. In other words:
“ Power is the leader’s potential influence over followers”.
The positive use of power, that influence others to achieve
the organizational objectives.
Clark Limited Case
• The management services group of Clark Limited was asked by the board of directors
to recommend which of six computer manufacturers should receive the order for a
large server and computer system. The board of directors had formal authority to
decide from which company the system would be purchased.
• Jim Kenny, the Senior Information Technology Manager, was in charge of the
Management Services Group, that included the programmers headed by Bob Turner,
and the systems analysts headed by Mike Reilly. Kenny met with the other managers,
but disagreed with them about which system to purchase.
• Kenny controlled the information received by the board, and thus he influencing the
board’s thinking toward selecting the system he preferred. The board decided to
purchase the large server and computer system recommended by Kenney.
• This is not unusual in a vertical hierarchy of authority and decision making. How can
this type of bias and politicking be reduced?
Clark Limited case cont.
Kenny controls information
given to the board,
thereby influencing the
board’s decision to
purchase a large
The Board has formal
authority to decide from
which company a large
computer system would
The Board asked the
group to recommend
which of six computersystem companies should
receive the order.
Turner and Reilly disagree with Kenny disagree with Kenny on who to recommend, but Kenny
convinces the Board to go with his decision.
• One person should never control the information that is provided to
the decision makers.
That person can filter and bias the information.
Multiple sources of information must be sought.
The board should have interviewed many people.
Unfortunately, this is typical of the bottom-up information flow in
Remember this when you are in decision-making positions and
reliant on others for the information you need.
• Greek word polis “aggregate of many members”
• Politics- means of creating order out of diversity while
avoiding forms of autocratic rule for social welfare
Organizational perspective (Conventional
• Processes, actions, behaviors through which potential power is
utilized & realized (Pfeffer, 1992)
• Informal approaches to gaining power through means other than
merit or luck (Dubrin, 2001)
• Used primarily to achieve power, either directly or indirectly,
e.g., by being promoted, receiving a larger budget or other
resources, -or gaining desirable assignments
• Networking: Process of developing relationships for
the purpose of socializing (Networking is important to
leader’s career success)
• Coalitions: An influencing tactic in political behavior.
Each party helps the others get what they want.
Politics- Divine or Evil ?
• Considered to be unavoidable phenomenon & taboo in
• Common perception of it is that pursuing self-interests at the
ex-pense of others.
• When we win on an issue, we call it leadership; when we lose,
we call it politics.
• Leadership is a dynamic process; varies with time and context
• Globalization creates the demand for new forms of international
leadership: as the flows of people , production, investment,
information, ideas, and authority across the (Masciulli and Day
• Managing the varying desires of different people towards
organizational outcomes for common good.
• Emerging definition- Good politics & bad politics.
In a nutshell,
• Organizational politics is an inescapable and intrinsic
• There is nothing either good or bad but thinking makes it
• Power, politics and networking have same thing in common
• Network is a learned skill.
• Women are generally not as skilled at networking as men.
How women can hone their networking skills
• The recent CIMA report “Breaking glass: strategies for tomorrow’s leaders”
highlighted increased visibility as a key strategy for success for its female
• Mercer’s recent “Women’s Leadership Development Survey” revealed that
only five per cent of organizational respondents provide a “robust program” to
develop female leaders.
• Networking within the organization
• Networking outside the organization
THE DOOMED AOL-TIME WARNER MERGER
you’ve got to focus on (people) to understand what’s going on, what the
context is and make sure you get people aligned around the right
priorities ... it came down to poor execution of what I thought was a
good idea, and that was largely attributable to people and relationships
and resentments and pride and egos.
Perform a selfassessment and set
Create your one-minute
Develop your network
Maintain your network
1) Perform a Self-Assessment and Set Goals
• Tie your accomplishments to the job interview
• Set networking goals
2) Create Your One-Minute Self-Sell
• Part 1. History
• Part 2. Plans
• Part 3. Question
3) Develop Your Network
• Networking is important, so how do individuals generate networks?
• Personal and Professional contacts
• Where should you go to develop your network?
4) Conduct Networking Interviews
Step 1. Establish Rapport
Step 2. Deliver your one-minute self-sell
Step 3. Ask prepared questions
Step 4. Get additional contacts for your network
Step 5. Ask your contacts how you might help them
Step 6. Follow up with a thank you note and status report
5) Maintain Your Network
• Keep your network informed
• Networking doesn’t stop
• Networking is all about helping others
“How Leaders Create and Use Networks “
by Ibarra & Hunter, 2007
• Networking – Time Consuming
• Networking – Creating a fabric of personal contacts who will provide
support, feedback, insight, resources and information
• Majority of the managers we work with find networking insincere or
manipulative – at best, “an elegant way of using people”
The negotiation is a process where two or more parties make a
deal to satisfy the interests or needs of each other.
• Networking can lead to negotiating.
• Negotiating involves:
Shared interest (parties want to agree and exchange)
Opposing interest (parties want different things and don’t agree
Resulting in a conflict of interest.
• Thus, negotiating can sometimes create a conflict situation
Win-Win Negotiation Strategy
• A win-win strategy is a strategy in which is designed in a way that all
participants can profit from it in one way or the other.
• In conflict resolution, a win-win strategy is a conflict resolution process that
aims to accommodate all participants.
• Negotiation is generally considered an essential managerial skill
(Greenhalgh,2001; Lax & Sebenius,1986; Mintzberg1973)
• This helps to maintain a positive working relationship afterwards.
Stages/Process of Negotiation
of course Action
The Negotiating Process: No Agreement
• If you cannot come to an agreement:
• Analyze the situation.
• You may also ask the other party for advice (the mediator).
• Look for Alternatives.
• Terminate negotiation process without harming relationship.
“Win-Win Negotiation Badly Executed”
Bayou Steel in Laplace, Louisiana. in January, 1993
This case study discusses some of the critical errors that can be made in
a Management and Union Labor negotiation, where Management were
trying to achieve a win-win negotiation.
• Management hired two facilitators to guide through win win negotiation
process and helped them to identify each other (parties) concerns
• 90% issues of the contract were resolved & went good but at the
economic issue disagreement took place.
• Result: union members walked away.
Case study Concluded.
Lack of preparation before meeting.
Poor communication between the parties.
Resolving issue collectively sometimes preferred over resolving issues
one by one, hence increasing the chances to tradeoff/concessionary
It suggests that a strong leadership strategy is an important aspect of
Research Paper # 1
“Initiation Behavior in Negotiations: The Moderating Role of
Motivation on the Ability–Intentionality Relationship”
by R Volkema - 2013
• Initial stages of negotiation:
1. Engaging one's counterpart
2. Making a request or demand
Motivation & Ability
3. Optimizing that request
• To complete your negotiation process (3 steps) motivation and ability
plays a vital role.
Research Paper # 2
Current trends in business negotiation research
An overview of articles published 1996-2005
by Henrik Agndal
Stockholm School of Economics
Crux of RP:
Believed that effective communication within the negotiation process includes
• Seeing the world as the other party views it.
• Expressing ideas in a way that ensures the other person fully understands
• Encouraging the other party to share ideas and views without fear that they
will be misunderstood or judged.
Case Study & Research Papers Conclusion:
• “Negotiating is the art of reaching an agreement by resolving differences
• Although difficult, effective negotiation is not impossible. Create a collaborative and
trusting environment for negotiating parties is important.
• Strategic leadership and motivation plays a vital role in successful negotiation.
• Talks may fail at once but do not give up.
• Find out competitive advantage for mutual benefit
• A Good Negotiator Is..
→ Has the ability to walk away