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What are power and influence?
What are the key sources of power and
influence?
What is empowerment?
What is organizational politics?
Copyright © 2012 John Wiley & Sons, Inc. 12-2
Power
 The ability to get someone to do something you
want done.
 The ability to make things happen in the way you
want.
Influence
 Expressed by others’ behavioral response to the
exercise of power.
Interdependence
 Employee’s are closely connected with the
individuals in their workgroup, those in other
departments they work with, and their
supervisors.
12-3Copyright © 2012 John Wiley & Sons, Inc.
Legitimacy – an understood and unwritten set
of social mores and conventions that serve
to maintain societal order.
Obedience – tendency for individuals to
comply and be obedient—to switch off
their emotions and merely do exactly what
they are told to do.
12-4Copyright © 2012 John Wiley & Sons, Inc.
Acceptance of authority (‘consent of the
governed’) is the concept that subordinates
will accept or follow a managerial directive
only if the subordinate :
 Understands the directive.
 Is mentally and physically capable of carrying
out the directive.
 Believes the directive is consistent with
organization’s purpose and personal interests.
12-5Copyright © 2012 John Wiley & Sons, Inc.
Zone of indifference
Range of requests to which a person is willing
to respond without subjecting the directives
to critical evaluation or judgment.
 Psychological contract – unwritten set of
expectations about a person’s exchange of
inducements and contributions with an
organization.
12-6Copyright © 2012 John Wiley & Sons, Inc.
12-7Copyright © 2012 John Wiley & Sons, Inc.
Two primary sources of power:
Position
Derives from a person’s position in the
organization.
Personal
Resides in the individual.
Independent of that individual’s position.
12-8Copyright © 2012 John Wiley & Sons, Inc.
TYPES OF POSITION POWER
12-9Copyright © 2012 John Wiley & Sons, Inc.
Legitimate power
The extent to which a manager can use
subordinates’ internalized values or beliefs
that the “boss” has a “right of command” to
control their behavior.
12-10Copyright © 2012 John Wiley & Sons, Inc.
Reward power
The extent to which a manager can use
extrinsic and intrinsic rewards to control other
people.
Coercive power
The extent to which a manager can deny
desired rewards and administer punishments
to control other people.
12-11Copyright © 2012 John Wiley & Sons, Inc.
Process power
The control that a manager
has over methods of
production and analysis.
12-12Copyright © 2012 John Wiley & Sons, Inc.
Information power
The access to and/or control of information.
Representative power
The formal right conferred to an individual
by the firm to speak for a potentially
important group.
12-13Copyright © 2012 John Wiley & Sons, Inc.
Expert
Rational
Persuasion
Coalition
Ability to control another’s behavior
through the possession of knowledge,
experience or judgment.
Ability to control another’s behavior
because of accepted desirability of an
offered goal and a way of achieving it.
Ability to control another’s behavior
because the person wants to identify
with the power source.
Ability to control another’s behavior
indirectly because of a reciprocal
obligation to you or the larger group.
Referent
12-14Copyright © 2012 John Wiley & Sons, Inc.
Building influence
Power-oriented behavior is action directed
primarily at developing relationships in which
other people are willing to defer to one’s
wishes.
Downward, upward, lateral.
12-15Copyright © 2012 John Wiley & Sons, Inc.
12-16Copyright © 2012 John Wiley & Sons, Inc.
Build Position Power
› Demonstrate to
others that work unit
is relevant to
organizational goals
(centrality).
› Demonstrate to
others the ability to
respond to urgent
organizational need
(criticality).
 Managers make part
of their job
responsibilities unique.
 Managers may
expand their network
of communication
contacts and also
increase task
relevance. 12-17Copyright © 2012 John Wiley & Sons, Inc.
 Build expertise
through advanced
training and
education.
 Participate in
professional
associations, and
early stages of
projects.
 Enhance
likeability
by creating
personal
appeal in
relationships
with others.
 Includes
pleasant
personality
traits,
agreeable
behavior
patterns, and
attractive
Enhance
political savvy
by learning ways
to negotiate,
persuade.
Understand goals
and means that
most are willing to
accept.
12-18Copyright © 2012 John Wiley & Sons, Inc.
Which personal power would you likely use
to request a promotion?
a. Coalition
b. Rational persuasion
c. Expertise
12-19Copyright © 2012 John Wiley & Sons, Inc.
Ways that managers increase the visibility of
their job performance in organizations
 Expand contacts with senior people.
 Make oral presentations of written work.
 Participate in problem-solving task forces.
 Send out notices of accomplishment.
 Seek additional opportunities to increase
personal name recognition.
12-20Copyright © 2012 John Wiley & Sons, Inc.
Controlling decision premises
Defining a problem in terms of your own
expertise in solving it.
Stating goals and needs clearly and
bargaining effectively.
12-21Copyright © 2012 John Wiley & Sons, Inc.
Strengthening influence techniques through:
 Reason - use facts and data to support a logical
argument.
 Friendliness - use flattery, goodwill and favorable
impressions.
 Coalition – use relationships, with others, for support.
 Bargaining – use exchange of benefits as a basis for
negotiation.
 Assertiveness – use direct and forceful approach.
 Higher authority – gain higher level support for requests.
 Sanctions – organizational rewards/punishments.
12-22Copyright © 2012 John Wiley & Sons, Inc.
Empowerment
The process by which managers help others
to acquire and use the power needed to
make decisions affecting themselves and
their work.
One view considers power to be something
that can be shared by everyone working in
flatter and more collegial structures.
12-23Copyright © 2012 John Wiley & Sons, Inc.
Changing position power
 Moving power down the hierarchy alters the
existing pattern of position power.
 Changing this pattern raises the following
important questions:
 Can “empowered” individuals give rewards and
sanctions based on task accomplishment?
 Has their new right to act been legitimized with
formal authority?
12-24Copyright © 2012 John Wiley & Sons, Inc.
Power as an expanding pie
 The key is to change from a view stressing
power over others to one emphasizing the
use of power to get things done.
 Requires leader support, training, coaching,
individual supervision and clear, re-stated
definitions of roles and responsibilities.
12-25Copyright © 2012 John Wiley & Sons, Inc.
Two traditions of organizational politics:
Machiavellian – focuses on self interest and
the use of nonsanctioned means philosophy.
Art of creative compromise among
competing interests - view that states the firm
is more than just an instrument for
accomplishing a task or a mere collection of
individuals with a common goal.
12-26Copyright © 2012 John Wiley & Sons, Inc.
Effects of organizational politics
 Enhances the achievement of organizational goals
and survival.
 Can serve a number of important work functions.
 Provides a mechanism for circumventing
inadequacies and getting the job done.
 Helps identify problems and move ambitious,
problem-solving managers.
12-27Copyright © 2012 John Wiley & Sons, Inc.
12-28Copyright © 2012 John Wiley & Sons, Inc.
The Politics of Self Protection
Avoidance – employee must risk being wrong
or where actions may yield a sanction.
 Working to the rules
 Playing dumb
 Depersonalization
 Stalling
12-29Copyright © 2012 John Wiley & Sons, Inc.
Redirecting accountability and responsibility
 Passing the buck
 Rewriting history
 Redirecting (scapegoating, blaming the
problem on someone or some group that has
difficulty defending itself, and blaming
problem on uncontrollable events,)
 Escalating commitment
12-30Copyright © 2012 John Wiley & Sons, Inc.
Defending turf is a common political
dynamic when:
 Managers seek to improve their power
attempt by expanding the jobs their groups
perform.
 Competing interests exist among various
departments and groups.
12-31Copyright © 2012 John Wiley & Sons, Inc.
Agency theory
Suggests that public corporations can
function effectively even though their
managers are self-interested and do not
automatically bear the full consequences of
their managerial actions.
12-32Copyright © 2012 John Wiley & Sons, Inc.
Key arguments of agency theory
All of society’s interests are served by
protecting stockholder interests.
Stockholders have a clear interest in greater
returns.
Managers are self-interested and must be
controlled.
12-33Copyright © 2012 John Wiley & Sons, Inc.
Types of controls instituted for agents
Pay plan incentives that align the interests of
management and stockholders.
The establishment of a strong, independent
board of directors.
Stakeholders with a large stake in the firm
take an active role one the board.
12-34Copyright © 2012 John Wiley & Sons, Inc.
Resource dependencies
 The firm’s need for resources that are controlled by
others.
The dependencies increase as:
 Needed resources become more scarce.
 Outsiders have more control over needed resources.
 There are fewer substitutes for a particular type of
resource controlled by a limited number of outsiders.
12-35Copyright © 2012 John Wiley & Sons, Inc.
Organizational governance
The pattern of authority, influence, and
acceptable managerial behavior
established at the top of the organization.
12-36Copyright © 2012 John Wiley & Sons, Inc.

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Ch12

  • 1.
  • 2. What are power and influence? What are the key sources of power and influence? What is empowerment? What is organizational politics? Copyright © 2012 John Wiley & Sons, Inc. 12-2
  • 3. Power  The ability to get someone to do something you want done.  The ability to make things happen in the way you want. Influence  Expressed by others’ behavioral response to the exercise of power. Interdependence  Employee’s are closely connected with the individuals in their workgroup, those in other departments they work with, and their supervisors. 12-3Copyright © 2012 John Wiley & Sons, Inc.
  • 4. Legitimacy – an understood and unwritten set of social mores and conventions that serve to maintain societal order. Obedience – tendency for individuals to comply and be obedient—to switch off their emotions and merely do exactly what they are told to do. 12-4Copyright © 2012 John Wiley & Sons, Inc.
  • 5. Acceptance of authority (‘consent of the governed’) is the concept that subordinates will accept or follow a managerial directive only if the subordinate :  Understands the directive.  Is mentally and physically capable of carrying out the directive.  Believes the directive is consistent with organization’s purpose and personal interests. 12-5Copyright © 2012 John Wiley & Sons, Inc.
  • 6. Zone of indifference Range of requests to which a person is willing to respond without subjecting the directives to critical evaluation or judgment.  Psychological contract – unwritten set of expectations about a person’s exchange of inducements and contributions with an organization. 12-6Copyright © 2012 John Wiley & Sons, Inc.
  • 7. 12-7Copyright © 2012 John Wiley & Sons, Inc.
  • 8. Two primary sources of power: Position Derives from a person’s position in the organization. Personal Resides in the individual. Independent of that individual’s position. 12-8Copyright © 2012 John Wiley & Sons, Inc.
  • 9. TYPES OF POSITION POWER 12-9Copyright © 2012 John Wiley & Sons, Inc.
  • 10. Legitimate power The extent to which a manager can use subordinates’ internalized values or beliefs that the “boss” has a “right of command” to control their behavior. 12-10Copyright © 2012 John Wiley & Sons, Inc.
  • 11. Reward power The extent to which a manager can use extrinsic and intrinsic rewards to control other people. Coercive power The extent to which a manager can deny desired rewards and administer punishments to control other people. 12-11Copyright © 2012 John Wiley & Sons, Inc.
  • 12. Process power The control that a manager has over methods of production and analysis. 12-12Copyright © 2012 John Wiley & Sons, Inc.
  • 13. Information power The access to and/or control of information. Representative power The formal right conferred to an individual by the firm to speak for a potentially important group. 12-13Copyright © 2012 John Wiley & Sons, Inc.
  • 14. Expert Rational Persuasion Coalition Ability to control another’s behavior through the possession of knowledge, experience or judgment. Ability to control another’s behavior because of accepted desirability of an offered goal and a way of achieving it. Ability to control another’s behavior because the person wants to identify with the power source. Ability to control another’s behavior indirectly because of a reciprocal obligation to you or the larger group. Referent 12-14Copyright © 2012 John Wiley & Sons, Inc.
  • 15. Building influence Power-oriented behavior is action directed primarily at developing relationships in which other people are willing to defer to one’s wishes. Downward, upward, lateral. 12-15Copyright © 2012 John Wiley & Sons, Inc.
  • 16. 12-16Copyright © 2012 John Wiley & Sons, Inc.
  • 17. Build Position Power › Demonstrate to others that work unit is relevant to organizational goals (centrality). › Demonstrate to others the ability to respond to urgent organizational need (criticality).  Managers make part of their job responsibilities unique.  Managers may expand their network of communication contacts and also increase task relevance. 12-17Copyright © 2012 John Wiley & Sons, Inc.
  • 18.  Build expertise through advanced training and education.  Participate in professional associations, and early stages of projects.  Enhance likeability by creating personal appeal in relationships with others.  Includes pleasant personality traits, agreeable behavior patterns, and attractive Enhance political savvy by learning ways to negotiate, persuade. Understand goals and means that most are willing to accept. 12-18Copyright © 2012 John Wiley & Sons, Inc.
  • 19. Which personal power would you likely use to request a promotion? a. Coalition b. Rational persuasion c. Expertise 12-19Copyright © 2012 John Wiley & Sons, Inc.
  • 20. Ways that managers increase the visibility of their job performance in organizations  Expand contacts with senior people.  Make oral presentations of written work.  Participate in problem-solving task forces.  Send out notices of accomplishment.  Seek additional opportunities to increase personal name recognition. 12-20Copyright © 2012 John Wiley & Sons, Inc.
  • 21. Controlling decision premises Defining a problem in terms of your own expertise in solving it. Stating goals and needs clearly and bargaining effectively. 12-21Copyright © 2012 John Wiley & Sons, Inc.
  • 22. Strengthening influence techniques through:  Reason - use facts and data to support a logical argument.  Friendliness - use flattery, goodwill and favorable impressions.  Coalition – use relationships, with others, for support.  Bargaining – use exchange of benefits as a basis for negotiation.  Assertiveness – use direct and forceful approach.  Higher authority – gain higher level support for requests.  Sanctions – organizational rewards/punishments. 12-22Copyright © 2012 John Wiley & Sons, Inc.
  • 23. Empowerment The process by which managers help others to acquire and use the power needed to make decisions affecting themselves and their work. One view considers power to be something that can be shared by everyone working in flatter and more collegial structures. 12-23Copyright © 2012 John Wiley & Sons, Inc.
  • 24. Changing position power  Moving power down the hierarchy alters the existing pattern of position power.  Changing this pattern raises the following important questions:  Can “empowered” individuals give rewards and sanctions based on task accomplishment?  Has their new right to act been legitimized with formal authority? 12-24Copyright © 2012 John Wiley & Sons, Inc.
  • 25. Power as an expanding pie  The key is to change from a view stressing power over others to one emphasizing the use of power to get things done.  Requires leader support, training, coaching, individual supervision and clear, re-stated definitions of roles and responsibilities. 12-25Copyright © 2012 John Wiley & Sons, Inc.
  • 26. Two traditions of organizational politics: Machiavellian – focuses on self interest and the use of nonsanctioned means philosophy. Art of creative compromise among competing interests - view that states the firm is more than just an instrument for accomplishing a task or a mere collection of individuals with a common goal. 12-26Copyright © 2012 John Wiley & Sons, Inc.
  • 27. Effects of organizational politics  Enhances the achievement of organizational goals and survival.  Can serve a number of important work functions.  Provides a mechanism for circumventing inadequacies and getting the job done.  Helps identify problems and move ambitious, problem-solving managers. 12-27Copyright © 2012 John Wiley & Sons, Inc.
  • 28. 12-28Copyright © 2012 John Wiley & Sons, Inc.
  • 29. The Politics of Self Protection Avoidance – employee must risk being wrong or where actions may yield a sanction.  Working to the rules  Playing dumb  Depersonalization  Stalling 12-29Copyright © 2012 John Wiley & Sons, Inc.
  • 30. Redirecting accountability and responsibility  Passing the buck  Rewriting history  Redirecting (scapegoating, blaming the problem on someone or some group that has difficulty defending itself, and blaming problem on uncontrollable events,)  Escalating commitment 12-30Copyright © 2012 John Wiley & Sons, Inc.
  • 31. Defending turf is a common political dynamic when:  Managers seek to improve their power attempt by expanding the jobs their groups perform.  Competing interests exist among various departments and groups. 12-31Copyright © 2012 John Wiley & Sons, Inc.
  • 32. Agency theory Suggests that public corporations can function effectively even though their managers are self-interested and do not automatically bear the full consequences of their managerial actions. 12-32Copyright © 2012 John Wiley & Sons, Inc.
  • 33. Key arguments of agency theory All of society’s interests are served by protecting stockholder interests. Stockholders have a clear interest in greater returns. Managers are self-interested and must be controlled. 12-33Copyright © 2012 John Wiley & Sons, Inc.
  • 34. Types of controls instituted for agents Pay plan incentives that align the interests of management and stockholders. The establishment of a strong, independent board of directors. Stakeholders with a large stake in the firm take an active role one the board. 12-34Copyright © 2012 John Wiley & Sons, Inc.
  • 35. Resource dependencies  The firm’s need for resources that are controlled by others. The dependencies increase as:  Needed resources become more scarce.  Outsiders have more control over needed resources.  There are fewer substitutes for a particular type of resource controlled by a limited number of outsiders. 12-35Copyright © 2012 John Wiley & Sons, Inc.
  • 36. Organizational governance The pattern of authority, influence, and acceptable managerial behavior established at the top of the organization. 12-36Copyright © 2012 John Wiley & Sons, Inc.

Editor's Notes

  1. The essence of power is some degree of control over the behavior of others. Without a direct or indirect connection, it is not possible to alter the behavior of others. In today’s modern organization the pattern of interdependence and, therefore the base for power and politics, rests on a system of authority and control. In addition, organizations have societal backing to seek reasonable goals in legitimate ways.
  2. The tendency to obey is powerful, and it is a major problem in the corporate boardroom where the lack of dissent due to extreme obedience to authority has been associated with the lack of rationality and questionable ethics.
  3. The subordinate does not need to understand how the proposed action will help the organization; rather, he or she only needs to believe that the requested action is not inconsistent with the purpose of the firm.
  4. Most people seek a balance between what they put into an organization (contributions) and what they get from an organization in return (inducements). This psychological contract influences employees to do many things in and for the organization because they think they should. Outside of the psychological contract’s boundaries, however, things become much less clear. Directives falling within the zone are obeyed routinely. Requests or orders falling outside the zone of indifference are not considered legitimate under terms of the psychological contract. Such “extraordinary” directives may or may not be obeyed.
  5. Figure 12.1 The figures shows link between the zone of indifference and the psychological contract.
  6. One important source of power available to a manager stems solely from his or her position in the organization.
  7. Legitimate power represents the unique power a manager has because subordinates believe it is legitimate for a person occupying the managerial position to have the right to command. If this legitimacy is lost, authority will not be accepted by subordinates.
  8. Although all managers have some access to rewards, success in accessing and utilizing rewards to achieve influence. The availability of coercive power also varies from one organization and manager to another. The presence of unions, enactment of employee rights legislation, and organizational policies can weaken this power base considerably.
  9. The source of this power is the placing of the individual in a position to influence how inputs are transformed into outputs for the firm, a department in the firm, or even a small group. Firms often establish process specialists who work with managers to ensure that production is accomplished efficiently and effectively. Closely related to this is control of the analytical processes used to make choices.
  10. The “right to know” and use information can be, and often is, conferred on a position holder. Thus, information power may complement legitimate hierarchical power. Information power may also be granted to specialists and managers who are in the middle of the information systems in the firm. In most complex organizations there is a wide variety of constituencies that may have an important impact on the firm’s operations and its success. They include such groups as investors, customers, alliance partners, and, of course, unions. In government, it is not at all unusual to find positions established to represent officials. The top job of this type is, of course, Presidential Press Secretary.
  11. Personal power resides in the individual and is independent of that individual’s position within an organization. Personal power is important in many well managed firms, as managers need to supplement the power of their formal positions.
  12. The effective manager is one who succeeds in building and maintaining high levels of both position and personal power over time. Only then is sufficient power of the right types available when the manager needs to exercise influence on downward, lateral, and upward dimensions.
  13. Figure 12.2 The figure shows three basic dimensions of power and influence affecting a manager: downward, upward, and lateral.
  14. Not all attempts to build influence may be positive. Some managers are known to have defined tasks, so they are difficult to evaluate by creating an ambiguous job description or developing a unique language for their work.
  15. b. By using facts of your accomplishments, and logic, you might persuade your boss that granting the request will benefit the department, can result in positive outcomes for the organization, and make him look good in the process.
  16. By developing coalitions and networks, executives also expand their access to information and opportunities for participation. Merely being a member of a coalition of individuals with relevant knowledge increases your expert power. With membership you have expanded sources of information and greater opportunities for participation. Remember, many important decisions are made outside formal channels and are substantially influenced by key individuals with the requisite knowledge.
  17. Managers can also build influence capacity by controlling, or at least attempting to control, decision premises.
  18. Research on these strategies suggests that reason is the most popular technique overall. Friendliness, assertiveness, bargaining, and higher authority are used more frequently to influence subordinates than to influence supervisors. This pattern of attempted influence is consistent with our earlier contention that downward influence generally includes mobilization of both position and personal power sources, whereas upward influence is more likely to draw on personal power.
  19. While empowerment has been popular and successfully implemented in the United States and Europe for over a decade, new evidence suggests it can boost performance and commitment in firms worldwide as well.
  20. Attempts at implementing more empowerment can disrupt well-established patterns of position power and threaten middle- and lower-level managers. Organizational leaders must communicate precisely how empowerment will benefit the individuals involved.
  21. Empowerment means that all managers need to emphasize different ways of exercising influence, and must be willing to transfer ownership for the work to be done to those who execute the work. Appeals to higher authority and sanctions need to be replaced by appeals to reason. Friendliness must replace coercion, and bargaining must replace orders for compliance. Ways to increase success include managers starting slowly by delegating smaller tasks and decisions. As trust is and competence are established, the level of delegation and responsibility can be increased as well.
  22. Managers are often considered political when they seek their own goals and use means that are not currently authorized by the organization or those that push legal limits. Where there is uncertainty or ambiguity, it is often extremely difficult to tell whether or not a manager is being political in this self-serving sense. The art of creative compromise among competing interests acknowledges that the interests of individuals, stakeholders, and society must also be considered and that these interests are not always consistent with one another.
  23. Figure 12.3 The figure shows a sample payoff table for two managers. Managers may gain a better understanding of political behavior in order to forecast future actions by placing themselves in the positions of other persons involved in critical decisions or events. Each action and decision can be seen as having benefits for and costs to all parties concerned. Where the costs exceed the benefits, the manager may act to protect his or her position.
  24. Although working to the rules and playing dumb are common techniques, experienced employees often practice somewhat more subtle techniques of self protection. These include depersonalization and stalling.
  25. Politically sensitive individuals will always protect themselves from accepting blame for the negative consequences of their actions.
  26. Defending turf is a time-honored tradition in most large organizations.
  27. The problem with the simple application of all of these control mechanisms is that they do not appear to work very well even for the stockholders and clearly, some suggest, not for others either. Recent studies strongly suggest that agency based controls backfire when applied to CEOs. One study found that when options were used extensively to reward CEOs for short-term increases in the stock price, it prompted executives to make risky bets. The results were extreme with big winners and big losers. In a related investigation, the extensive use of stock options was associated with manipulation of earnings when these options were not going to give the CEOs a big bonus. These researchers concluded that “stock-based managerial incentives lead to incentive misalignment.”
  28. One political role of the chief executive is to develop workable compromises among the competing resource dependencies facing the organization—compromises that enhance the executive’s power. To create executive-enhancing compromises, managers need to diagnose the relative power of outsiders and to craft strategies that respond differently to various external resource suppliers. For larger organizations, many strategies may center on altering the firm’s degree of resource dependence. Through mergers and acquisitions, a firm may bring key resources within its control. By changing the “rules of the game,” a firm may also find protection from particularly powerful outsiders.
  29. Students of organizational governance suggest that a “dominant coalition” comprised of powerful organizational actors is a key to understanding a firm’s governance. Organizational governance was an internal and a rather private matter in the past; today it is becoming more public and controversial.