1. Ethical Power, Politics,
& Etiquette
Matthew L. Eisenhard, Psy.D.
Week 9: Psychology for Business & Industry

2. Power
• Is a person’s ability to
influence others to do
something that they would
not do otherwise.
▫ Necessary to meet all goals in the organization.
▫ Self-assessment 9.1 examines your power base.
• Who holds the power, and how they use it affects
performance.
▫ Excessive power decreases performance.
▫ Some seek it, others reject it.
▫ Leadership and power go hand in hand.

3. Organizational Power
• Power can be used to manipulate and corrupt –
a negative connotation.
▫ Properly used, it gives the ability to achieve goals.
▫ Power provides strength to bring about change.
▫ Skill in using power effectively and appropriately
can be developed.

4. Bases of Power
• Two Levels
• POSITION POWER
▫ Comes from top management.
▫ Is delegated down the chain of command.
• PERSONAL POWER
▫ Comes from your personal style and interpersonal skills.
▫ Is given to you from those who choose to follow you
(earned?).

5. Bases of Power
• It is not necessary to take power away from others to gain your own
power.
▫ Positive people are more likely to gain power than negative
people.
▫ Power is given to those who others genuinely like.
• 7 bases of power are…
1. Coercive
2.Connection
3.Reward
4.Legitimate
5. Referent
6.Information
7. Expert

6. Coercive Power
• Uses threats, punishment, being a bully.
▫ Appropriate when needed to maintain discipline and
enforcing rules.
▫ Should be used minimally
as it often has negative
effects on human relations
and productivity.
• To use it you must be in a
position that gives the ability
to hire, fire, and discipline
employees.

7. Connection Power
• Based on one’s relationship with influential people.
▫ Not “what,” but “who” you know.
▫ If you have connections to “power,” others are more
likely to comply with your requests.
• To increase your connection power, join the “in crowd.”
▫ Identify people who can help you, make alliances with
them.
▫ When you need/want something, they will be your
allies.
• Get your name in the public eye.
• Make sure people in power know about your
accomplishments.

8. Reward Power
• Based on your ability to influence people with something of
value to them.
▫ Positive reinforcement – recognition, raises, promotions.
• Reciprocity with peers – exchange of favors.
• Let the word out – let others know what rewards you offer.
▫ To use it you need to be in a position
of control over resources.
▫ Find out what others value and use
it as a reward.
▫ Using praise increases your reward
power.

9. Legitimate Power
• Based on the person’s perception
(credibility) in the organization.
▫ People tend to feel like they should
comply with their bosses.
▫ Most day-to-day interactions are based on this power.
• To increase your legitimate power, let people know about
it.
▫ Remember it’s all about perception. So, even if you do not
have it, give the impression that you do.
▫ If others perceive you as having it, then you do.

10. Referent Power
• Based on your personal power.
▫ You rely on your charm – “pretty please?”
▫ Appropriate for people with weak, or no position
power.
• To gain it, develop relationships with others, be
their advocate.
▫ Gaining the confidence of
your boss will help you gain
referent power.

11. Information Power
• Based on what information you have access to –
insider information.
▫ If you know things that help others, you have the
power.
• To help gain information power, make sure
information has to flow through you.
▫ Provide services and information to others.
▫ Serve on committees – gives you information and
connection power.
▫ Go to meetings, seminars, etc.

12. Expert Power
• Based on your skill and knowledge
of a subject.
▫ Being the “go to” person has it’s
advantages.
 The fewer people with the skill
and knowledge, the more
powerful it is.
 People depend on you and respect an expert.
• To increase this power base, get all the education you can.
▫ Take all of the training classes offered in your organization.
• Leave the routine tasks to others. Engage in complex hard-to-
evaluate tasks.
• Project a positive image.

13. Bases of Power
• You can use different types of power in different
situations with different people.
▫ Knowing when, what, and with whom is
important.
▫ This comes with
experience and an
ability to read people
well.

14. Influencing Tactics
• Along with power sources and bases you need to
be able to persuade people.
• Persuasion takes careful preparation and proper
presentation.
▫ People respond well to appropriate and
compelling evidence.
▫ People do not respond well to
coercion and manipulation.

15. Influencing Tactics
• There are 5 tactics that can be used to influence people
▫ Ingratiation, rational persuasion, inspirational appeal, personal appeal,
legitimization.
• Two things to consider before engaging in persuasive tactics.
• READING PEOPLE
▫ If you are going to successfully influence someone you have to
know who they are.
▫ Anticipate their expectations – put yourself in their position.
▫ Once you know them, be sure to address them.
▫ Keep a focus on what’s in it for them.
• CREATING A WIN-WIN SITUATION
▫ Always look for ways to make it good for both parties involved.

16. Ingratiation (Praise)
• Never go a day without praising.
▫ Be sensitive to others’ moods.
▫ Compliment past achievements before you ask for
something more.
▫ State why you are asking them instead of someone
else – personal compliment.
• Acknowledge the inconvenience.
▫ Emotional appeal.
▫ Basically, making it hard for them to say no.

17. Rational Persuasion
• Using logic – just the facts please.
• Works well with those who are influenced more by thinking than by
emotional appeals.
• Guidelines to follow:
▫ State why you need it.
▫ State how they will benefit (what’s in it for them).
▫ Provide valid evidence – know what you’re talking about.
▫ Give the pros and cons – what problems may be encountered and
how to deal with them.
▫ Do your homework – be ready to defend your ideas with any that
may be in competition.

18. Inspirational Appeal
• Works well on emotionally responsive people.
• Guidelines to follow:
▫ Know the values of the person you are appealing
to.
▫ Appeal to that person’s
sense of self.
▫ Create a vision of the end
product.
▫ Be positive, optimistic, upbeat.
▫ Use nonverbals – must be genuine!

19. Personal Appeal
• Based on loyalty and
friendship.
▫ Do it for me, please.
• Especially helpful when you have weak power.
• Guidelines to follow:
▫ Come right out and say you need a favor.
▫ Appeal to your friendship.
▫ Tell the person you are counting on them.

20. Legitimization
• Using your valid authority.
• Guidelines to follow:
▫ Refer to the organizational policies, procedures,
etc. – “the law.”
▫ Show them written documentation if needed.
▫ Show precedent.

21. Influencing Tactics
• You can mix and match
tactics.
▫ Fall back and regroup for a
renewed tactic if needed.
• Assess the person and the
situation.
▫ Rational persuasion will not
work if a person is unwilling
to consider your arguments.

22. Organizational Politics
• A network by which power is gained,
transferred, and exercised (used) on others.
▫ Critical to career success.
▫ You cannot escape it if you want to succeed.
• Politics is the process of gaining and
using power.
• Self-assessment 9.2 consists of statements of
ethical behavior.
▫ Higher your score, the more political you are.

23. Three Primary Political Behaviors
• NETWORKING
▫ Process of developing relationships.
▫ Probably the most important factor in gaining success.
• RECIPROCITY
▫ You scratch my back and I’ll scratch yours.
▫ Involves creating obligations and debts – and using them to get
what you want/need.
▫ Used to achieve ongoing goals.
• COALITION BUILDING
▫ A network of alliances.
▫ A network of networks.
▫ Done in the service of achieving your goals.

24. Vertical Politics
• The relations with
superiors and
subordinates.
• Most important people in
your professional
environment.
1. Relations with your boss.
2. Relations with
subordinates.

25. Relationships with the Boss
• Affects job satisfaction.
▫ Can mean the difference between success or failure on
the job.
▫ Vital to develop a good relationship.
 A.k.a. managing your boss or leader-member exchange (LMX)
theory.
• Adapt your personal style to match the boss’s.
▫ People generally like those with similar
attitudes and styles.
▫ Get to know what makes your boss tick
and what he or she expects from you.

26. Common Boss Expectations
• Loyalty
▫ Never talk behind the boss’s back.
• Going over the boss’s head
▫ Exercise extreme caution – makes you look disloyal and unethical.
• Cooperation
▫ Imperative to get along with everyone – don’t embarrass your boss.
• Initiative
▫ Always look for ways to go the extra mile – volunteer.
• Information
▫ Keep the boss in the loop – never cover up errors.
• Openness to Criticism
▫ Everyone makes mistakes – don’t be defensive.
• Regaining Trust
▫ Admit shortcomings and always apologize.

27. Relationships with Subordinates
• Vital for managers to develop effective human
relations.
▫ Don’t overlook the needs of employees!
▫ Possible to do so without being liked or being
popular by maintaining professionalism.
• Strive for harmonious environments.
• Keep morale high.
• Manager-employee relationships should
always be win-win situations.

28. Relationships with Subordinates
• Friendships
▫ A “true” friendship relationship is inadvisable due to the power
differential existing in the boss-employee relationship.
▫ Managers should be “friendly.”
• Open-Door Policy
▫ Practice of being available to
employees.
▫ Managers need to prioritize the
amount of time spent with employees.
▫ Seek balance between keeping
employees happy and getting one’s
own work done.

29. Horizontal Politics
• Relationships with your peers
in your organization and
other organizations.
• To be successful you must:
▫ Cooperate
 Sharing and collaborating are vital.
▫ Compete
 Need to balance being a good team player while still making
yourself look good as an individual.
▫ Criticize
 Don’t seek out faults in others – when appropriate, be tactful.
 Go to the boss as a last resort unless a serious offense or danger
is present.

30. Relations Between Other
Departments & Organizations
• Most jobs require interactions with people
outside your department or organization.
▫ Developing good human relations skills and
creating win-win situations will benefit you and
your organization.
• Affects your overall
job performance.

31. Codes of Ethics
• Establish guidelines that
clearly describe ethical and
unethical behavior.
• Most organizations consider
these important.
▫ When you feel proud of
what you’ve done, it is
usually an ethical decision.
▫ If you are embarrassed to
tell people about a decision
or action, or if you find
yourself rationalizing it, it
is probably unethical.

32. Ethical and Unethical Politics
• Ethical Politics
▫ Behavior that benefits both
the individual and
organization.
▫ Creates win-win situations.
• Unethical Politics
▫ Creates a win-lose situation.
▫ Behavior that benefits the
individual and hurts the
organization.
▫ Includes management
behavior that helps the
organization but hurts the
individual.

33. Business Etiquette
• Often referred to as manners.
▫ The code of behavior expected in work situations.
• Many organizations weigh it as a criteria in
hiring and promotions.
▫ Important to project a favorable
image when representing an
organization.
▫ Proper etiquette changes over
time and is different in varied
settings.

34. In-Person Etiquette Skills
• Conversations
▫ Use titles and last names – unless otherwise stated and
approved beforehand.
 Remembering names is very important!
▫ NEVER use profanity.
▫ Introductions – present lower rank person to higher
rank person.
 If equal in rank, mention elder person first.
▫ Mention a few pertinent things about the person.
▫ Shake hands.
 Be cautious with other forms of touching.

35. In-Person Etiquette
Skills
• Dining
▫ Use proper table manners.
▫ Person that invited pays the tab.
▫ Don’t order food that is going to be messy to eat.
• Hoteling, Telecommuting, Cubicle
▫ Hoteling is the sharing of space and equipment.
 Clean up after yourself.
 Respect others privacy.
▫ Telecommuting is working from home.
▫ Cubicles are open work areas – try not to be a
distraction to others – dress appropriately.

37. In-Person Etiquette Skills
• Cell Phones
▫ Don’t do personal business on the job – follow the company
policy.
▫ Don’t use business phone for personal use.
▫ Don’t drive while on the phone.

38. In-Person Etiquette Skills
• E-mail, Texting, Instant Messaging
▫ Select most appropriate media.
▫ Not everyone – especially older individuals – want to text.
▫ E-mail is preferred over text or IM.

39. In-Person or Digital? Job Interviews

40. In-Person or Digital? Meetings
• Be ON TIME and be prepared.
• Poor manners to talk, text, etc. during a
presentation.
• Dress for business even if teleconferencing.
• If using PowerPoints – don’t just read them.
▫ Use bullets to summarize
main points.
▫ Elaborate, show your
knowledge on the topic.

41. In-Person or Digital? Networking
• Commonly done in both mediums.
• Twitter, LinkedIn, Facebook.
• Always be polite.
• Don’t ask people of higher rank to be your
“friend.”
▫ But, accept if they ask you.
• Exercise extreme caution about posting personal
information.
▫ Don’t post negative commentary about job.

42. Customer Satisfaction & Etiquette
• Goal of business = happy
customers.
▫ Happiness is based on
perception of customers.
▫ To provide customer
satisfaction you must
listen to their needs.
▫ You must maintain a
positive attitude in dealing
with customers.

43. What NOT To Do…
• Don’t ignore customers.
▫ Greet them immediately.
▫ If busy, acknowledge you will be
with them as soon as possible.
• Don’t conduct personal business while waiting on
customers.
▫ Give the customer your undivided attention.
• Don’t be rude or defensive with customers.
▫ Stay cool, calm, and collected.
• Always apologize.
▫ Even if you were not in the wrong.

44. Dealing with Dissatisfied Customers
• Paraphrase and apologize.
▫ Stay calm – focus on helping them resolve issues.
▫ Listen carefully – be sure you understand.
• Ask customer how they want to resolve the issue.
▫ Cash or store credit.
▫ Some people are unreasonable – you cannot always please
everyone.
• Implement solution quickly.
▫ Faster = happier customer.
• Prevent future complaints and follow-up.
▫ Do not keep making the same mistakes – view complaints as
opportunity to make improvements.
▫ Follow-up by calling or e-mailing customers to make sure they
are happy.

45. Power – Politics - Etiquette
• Mexico, Venezuela,
Philippines, Yugoslavia,
France = high power
distance countries.
▫ Strong power and politics
acceptable.
▫ Leaders expected to behave
differently from lower ranks.
▫ Differences in rank more
apparent.
• U.S., Ireland, Australia, New
Zealand, Denmark, Israel,
Netherlands = low power
distance countries.
▫ Strong power and politics not
acceptable.
▫ Power is expected to be
shared with employees
(empowerment).
▫ People less comfortable with
differences in power.
▫ Less emphasis on social class.

46. Foreign Etiquette
• Always make yourself aware of what behavior
is acceptable and what is not when visiting a
foreign country.
▫ Pointing
 Considered rude in Asia and Middle East.
▫ Gift Giving
 Be aware if you should take a gift or not and what level of gifts are
acceptable.
▫ Dining
 Brush up on table manners – get a book of etiquette for that country.
▫ Drinking Alcohol
 Middle East = no.
 Most places no.

47. Key Points
Effects of Power, Politics, &
Ethics
Seven Bases of Power
Increasing Power Bases
Influencing Tactics
Organizational Politics and
Behaviors
Techniques to Improve Human
Relations
Business Etiquette
Customer Complaints