This document provides an overview of Chapter 4 from a course on influencing: power, politics, networking, and negotiation. The chapter covers the differences between position power and personal power, the various bases of social power, how power and politics are related, the steps in the networking and negotiation processes, and key terms. It also includes case studies on organizational politics and power in decision making, the importance of networking for career success, and how poor execution can undermine an otherwise good negotiation strategy.

1. CHAPTER # 4
INFLUENCING: POWER, POLITICS,
NETWORKING, AND NEGOTIATION
Presented by
Faiza Majid
Urooj Fatima
Maria Shahid
Samina
SZABIST ISLAMABAD
Date: 12/15/2013

2. Chapter 4
Learning Outcomes
• 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
politics.
• Define the key terms listed at the end of the chapter.

3. Influencing
The process of affecting
others’ attitudes and
behavior to achieve an
objective.
4-3

4. Rational
Persuasion
Pressure
Legitimization
Coalitions
Inspirational
Appeals
9
Influencing
Tactics
Exchange
Consultation
Ingratiation
Personal
Appeals
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
Social Research.

11. POWER

12. Power
• Confusion about influence and power than any other leadership
concepts.
• 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.

22. POWER: CASE STUDY

23. 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?

24. Clark Limited case cont.
The Board
Kenny controls information
given to the board,
thereby influencing the
board’s decision to
purchase a large
computer system.
Kenny Director
Management
Services Group
Turner
Programmers
The Board has formal
authority to decide from
which company a large
computer system would
be purchased.
The Board asked the
Management services
group to recommend
which of six computersystem companies should
receive the order.
Reilly Systems
Analysts
Turner and Reilly disagree with Kenny disagree with Kenny on who to recommend, but Kenny
convinces the Board to go with his decision.

25. SOLUTION
• 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
many organizations.
Remember this when you are in decision-making positions and
reliant on others for the information you need.

26. POLITICS
By: Urooj Fatima

27. Politics:
• Greek word polis “aggregate of many members”
• Politics- means of creating order out of diversity while
avoiding forms of autocratic rule for social welfare
(Aristotle)
4-27

28. Organizational perspective (Conventional
view)
• 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)

30. Uses
• 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

32. …
• 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.

35. Politics- Divine or Evil ?
• Considered to be unavoidable phenomenon & taboo in
organizations.
• 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.

36. …
• 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
2006)

37. Political leadership
• Managing the varying desires of different people towards
organizational outcomes for common good.
• Emerging definition- Good politics & bad politics.

38. In a nutshell,
• Organizational politics is an inescapable and intrinsic
reality.
• There is nothing either good or bad but thinking makes it
so (Shakespeare)

39. NETWORKING
By Maria Shahid

40. Networking
• Power, politics and networking have same thing in common
• Network is a learned skill.
• Women are generally not as skilled at networking as men.

41. 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
members.
• 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.

42. Cont’d
• Self-promotion
• Networking
• Networking within the organization
• Networking outside the organization

43. NETWORKING: CASE STUDY

44. THE DOOMED AOL-TIME WARNER MERGER
Case Statement:
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.

45. Networking Process
Perform a selfassessment and set
goals
Create your one-minute
self-sell
Develop your network
Conduct networking
interviews
Maintain your network

46. 1) Perform a Self-Assessment and Set Goals
• Accomplishments
• Tie your accomplishments to the job interview
• Set networking goals

47. 2) Create Your One-Minute Self-Sell
• Part 1. History
• Part 2. Plans
• Part 3. Question

48. 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?

49. 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

50. 5) Maintain Your Network
• Keep your network informed
• Networking doesn’t stop
• Networking is all about helping others

51. Research Paper:
“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”

52. Forms of Networking

53. Cont’d
• Just do it
• Mind your mind-set
• Work from the outside in
• Ask and you shall receive
• Stick to it

54. NEGOTIATION
By Faiza Majid

55. Negotiating
,
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.

56. Negotiation Cont..
• Negotiating involves:
1.
Shared interest (parties want to agree and exchange)
2.
Opposing interest (parties want different things and don’t agree
on everything)
3.
Resulting in a conflict of interest.
• Thus, negotiating can sometimes create a conflict situation

57. 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.

58. Stages/Process of Negotiation
Preparation
Discussion
Certificate of
Goals
Negotiate towards
Win-Win
outcomes
Agreement
Implementation
of course Action

59. 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.

60. Conclusion: Negotiation actually is:

61. Negotiation:
Case Study & Research Papers

62. CASE STUDY
“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.

63. Case study Concluded.
1.
Lack of preparation before meeting.
2.
Poor communication between the parties.
3.
Resolving issue collectively sometimes preferred over resolving issues
one by one, hence increasing the chances to tradeoff/concessionary
strategy.
4.
It suggests that a strong leadership strategy is an important aspect of
securing agreements.

64. 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
Relationship
3. Optimizing that request
• To complete your negotiation process (3 steps) motivation and ability
plays a vital role.

65. 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
the following:
• Seeing the world as the other party views it.
• Expressing ideas in a way that ensures the other person fully understands
them.
• Encouraging the other party to share ideas and views without fear that they
will be misunderstood or judged.

66. Case Study & Research Papers Conclusion:
• “Negotiating is the art of reaching an agreement by resolving differences
through creativity”
• 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..
→ Creative
→ Versatile
→ Motivated
→ KSAOs
→ Has the ability to walk away

67. Thank you !