Chapter 5 Notes
Power:
· Recall – leadership is the influencing process of leaders and followers.
· Power is the leader’s potential influence over followers.
· Power is the potential to influence, not the actual use of power.
· Often the perception of power influences others.
Sources of Power:
· There are two sources of power:
· Position power – derived from top management, and delegated down the chain of command, and
· Personal power – derived from the followers based on the leader’s behavior.
· Nonmanagers can have personal power but only managers can have position power.
· Successful leaders share power (empowerment) by pushing power down the chain of command.
Legitimate Power:
· Legitimate power is based on the user’s position power, given by the organization.
· Appropriate use of legitimate power:
· When asking people to do something that is within the scope of their job.
· Helpful to use the consultation influencing tactic.
· Seek and are open to input.
· Also known as participative management and empowering employees.
Legitimate Use of Rational Persuasion:
· Managers find the rational persuasion influencing tactic helpful:
· when meeting objectives through employees, or
· dealing with higher-level managers over whom they have no authority.
· Includes logical arguments with factual evidence.
· When persuading others, the ingratiation influencing tactic is helpful:
· Give praise before asking for what you want.
· Sandwich Equation: Good bad good.
Increasing Legitimate Power:
Guidelines for increasing legitimate power:
· Increase management experience,
· Could be part of the job such as team leader.
· Exercise authority regularly,
· Follow up making sure objectives are met.
· Follow rational persuasion guidelines,
· Especially when authority is questioned.
· Back up your authority with rewards and punishment.
Reward Power:
· Reward power is based on the user’s ability to influence others with something of value to them.
· A leader’s power is strong or weak based on ability to punish and reward followers.
· An important part of reward power is having control over getting and allocating resources.
Appropriate Use of Reward Power:
· Employees should be rewarded for doing a good job.
· Managers find the exchange influencing tactic helpful when dealing with others over whom they have no authority.
· Offer a reward for helping meet objective.
· Incentive can be anything of value.
Coercive Power:
· The use of coercive power involves punishment and withholding of rewards to influence compliance.
· Also called the pressure influencing tactic.
· Appropriate use of coercive power:
· Coercive power is appropriate to use in maintaining discipline and enforcing rules.
· Employees resent use of coercive power.
Increasing Coercive Power:
Guidelines for increasing coercive power:
· Gain authority to use punishment and withhold rewards,
· Don’t make rash threats,
· Do not use coercion to manipulate others or to gain personal benefits.
· Be.
Chapter 5 NotesPower· Recall – leadership is the influencin.docx
1. Chapter 5 Notes
Power:
· Recall – leadership is the influencing process of leaders and
followers.
· Power is the leader’s potential influence over followers.
· Power is the potential to influence, not the actual use of
power.
· Often the perception of power influences others.
Sources of Power:
· There are two sources of power:
· Position power – derived from top management, and delegated
down the chain of command, and
· Personal power – derived from the followers based on the
leader’s behavior.
· Nonmanagers can have personal power but only managers can
have position power.
· Successful leaders share power (empowerment) by pushing
power down the chain of command.
Legitimate Power:
· Legitimate power is based on the user’s position power, given
by the organization.
· Appropriate use of legitimate power:
· When asking people to do something that is within the scope
of their job.
· Helpful to use the consultation influencing tactic.
· Seek and are open to input.
· Also known as participative management and empowering
employees.
Legitimate Use of Rational Persuasion:
· Managers find the rational persuasion influencing tactic
2. helpful:
· when meeting objectives through employees, or
· dealing with higher-level managers over whom they have no
authority.
· Includes logical arguments with factual evidence.
· When persuading others, the ingratiation influencing tactic is
helpful:
· Give praise before asking for what you want.
· Sandwich Equation: Good bad good.
Increasing Legitimate Power:
Guidelines for increasing legitimate power:
· Increase management experience,
· Could be part of the job such as team leader.
· Exercise authority regularly,
· Follow up making sure objectives are met.
· Follow rational persuasion guidelines,
· Especially when authority is questioned.
· Back up your authority with rewards and punishment.
Reward Power:
· Reward power is based on the user’s ability to influence others
with something of value to them.
· A leader’s power is strong or weak based on ability to punish
and reward followers.
· An important part of reward power is having control over
getting and allocating resources.
3. Appropriate Use of Reward Power:
· Employees should be rewarded for doing a good job.
· Managers find the exchange influencing tactic helpful when
dealing with others over whom they have no authority.
· Offer a reward for helping meet objective.
· Incentive can be anything of value.
Coercive Power:
· The use of coercive power involves punishment and
withholding of rewards to influence compliance.
· Also called the pressure influencing tactic.
· Appropriate use of coercive power:
· Coercive power is appropriate to use in maintaining discipline
and enforcing rules.
· Employees resent use of coercive power.
Increasing Coercive Power:
Guidelines for increasing coercive power:
· Gain authority to use punishment and withhold rewards,
· Don’t make rash threats,
· Do not use coercion to manipulate others or to gain personal
benefits.
· Be persistent,
· Follow up to make sure requested tasks are accomplished.
Referent Power:
· Referent power is based on the user’s personal relationships
with others.
· Also called the personal appeals influencing tactic.
· based on loyalty and friendship.
· Leaders can use the inspirational appeals influencing tactic.
· Leader appeals to follower’s values, ideals, and aspirations, or
increases self-confidence by appealing to follower’s emotions
and enthusiasm.
4. Expert Power:
· Expert power is based on the user’s skill and knowledge.
· Often use rational persuasion influencing tactic.
· Appropriate uses:
· New managers rely on employees’ expertise,
· Followers have influence over leaders.
· Essential when working with other departments or
organizations.
Increasing Expert Power:
Guidelines for increasing expert power:
· Increase training to become an expert,
· Attend trade meetings, read publications, keep up with current
trends, write articles, become an officer in the organization,
· Keep up with latest technology,
· Volunteer to learn something new,
· Project a positive self-concept and develop a reputation for
having expertise.
Increasing Information Power:
Connection Power:
· Connection power is based on the user’s relationships with
influential people.
· Leaders use a coalition influencing tactic when persuading
others – a political strategy.
· Appropriate use of connection power:
· When looking for a job or a promotion.
· Can help you get the resources you need.
Increasing Connection Power:
5. Guidelines to increasing connection power:
· Expand your network to managers with power,
· Join the “in-crowd” and “right” associations,
· Sports such as golf may increase your contacts,
· Follow guidelines for using the coalition influencing tactic,
· Get people to know your name,
· Get all the publicity you can,
· Have your accomplishments known by those in power.
The Nature of Organizational Politics:
· Politics is the process of gaining and using power – power and
politics are related.
· Politics is a social medium of exchange.
· Like money, politics is neither good nor bad.
· Simply a system of getting what you want.
· Money is the economic medium of exchange, but
· Politics is the organizational medium of exchange.
Political Behavior:
· Networking is the process of developing relationships for the
purpose of socializing and politicking.
· Reciprocity involves creating obligations and developing
alliances, and using them to accomplish objectives.
· Using coalitions as an influencing tactic:
· Developed for a specific objective, and
· Use co-optation to get a person to join your coalition rather
than compete against you.
6. Political Behavior and Guidelines for Developing Political
Skills:
Develop Your Network:
· Begin with who you know.
· Create a written list of about 200 people.
· Categorize your list into professional and personal contacts.
· Expand your list to people you don’t know.
· Go anywhere professional people gather.
· Develop your ability to remember people by name.
Negotiation:
· Negotiating is a process in which two or more parties have
something the other wants and attempt to come to an agreement.
· An essential career skill.
· Directly affects your success.
· Good negotiators get more favorable outcomes.
· Influencing tactics, power and politics used often.
Negotiating:
· Negotiations are appropriate in all situations without a fixed
price or deal.
· All parties should believe they got a good deal.
· Negotiation does not have to be a zero-sum game.
· Negotiation is about building relationships.
· Negotiation should be viewed by all parties as an opportunity
to win.
· Negotiation skills can be developed by following the steps in
the negotiation process.
Ethics and Influencing:
· Power, politics, networking, and negotiating are all forms of
influencing.
7. · When influencing, it pays to be ethical.
· Influence is what you do with it.
· Confront those you think are unethical.
· Successful negotiators are trusted negotiators.
· When influencing, use the stakeholders’ approach to ethics.
Have information flow through you.
Know what is going on in your organization.
Develop a network of information sources.
Essays topics ( extra credit)
· Compare and contrast the fiscal policies of the Obama
administration and those of the Trump administration and
discuss their economic implications on the U.S economy
· Explain and assess the economic implications of the US-
China trade war on one specific sector – soybean, automobile,
or steel.
· Discuss the economic effects of China’s mercantilist policies
on a specific region – South East Asia, Latin America or Africa.
· Review the literature about the relationship between trade and
economic growth and assess the Trump administration view of
trade deficit.
· Identify the determinants of housing prices and discuss the
role that the housing crisis played in the “ Great Recession” of
8. 2007 then assess the macroeconomic policies that were designed
to deal with the crisis
The idea of setting essays is to offer you the chance to make a
longer, more complex argument. Nonetheless, in the model we
recommend, the fundamentals remain the same. In each
paragraph, a flow of main idea (thesis) - explanation / reasoning
(justification) - evidence / example (support) is an excellent
structure to use. If you read through academic writing, you will
find this structure over and over. The same is true for
professional writing. There are of course other structures,
however this one always works and makes you sound concise
and clear.
An essay has conventional sections that it is wise to follow.
These are an introduction, main body and a conclusion. The
'LSE' essay structure can be described as 'say what you're going
to say (intro), say it in detail (main body), say what you've said
(conclusion)'. Although this may appear repetitive, it offers the
reader great clarity. Also, if you think about the executive
summary, background, analysis and conclusions /
recommendations sections of a business report, you can see that
a similar structure holds.
In your essay, try to follow this structure for your essay
sections.
Intro
Statement about the context of the question - explain why
the question in important (either in the 'real' world or for the
discipline of economics)
Give you answer to the question
Summarise your argument in support of this answer - this
summary should match the order of your paragraphs
Main body
Decide on the most logical order of your paragraphs - this
might be importance, chronology or causation, but the basic
flow should be simple and clear
16. Find
Find out what others value and reward people in that way.
Let
Let people know you control rewards and state your criteria for
giving rewards.
Coercive Power
The use of coercive power involves punishment and withholding
of rewards to influence compliance.
Also called the pressure influencing tactic.
Appropriate use of coercive power:
Coercive power is appropriate to use in maintaining discipline
and enforcing rules.
Employees resent use of coercive power.
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