MGT 450 Spring 2016 Class 16 Chapter 8 Power and Influence Tactics

Power vs. Authority Power: Usually used to describe the absolute capacity of an individual (the agent) to influence the behavior or attitudes of one or more designated persons (the target) at a given point in time; Authority: Involves the rights, prerogatives, obligations, and duties associated with particular position in an organization

SCOPE OF AUTHORITY The range of requests that can be properly made and the range of actions that can be properly taken. Frequently dependent upon the influence needed to accomplish role requirements and organizational objectives.

SEVEN TYPES OF POWER POSITION / FORMAL POWERPERSONAL POWER 1.Legitimate power6. Referent Power 2.Reward power7. Expert Power 3.Coercive power 4.Information (Network) Power 5.Ecological Power

SEVEN TYPES OF POWER SOURCES 1.Legitimate Power The leader has Legitimate Power from the formal authority vested in him/her over work activities, e.g. OwnersCoachPoliceProfessor ManagementPlayersCitizensStudents Workers Power comes when employees recognize the authority of the individual.

Guidelines For Using Legitimate Authority Make polite, clear requests Explain the reasons for the request Don’t exceed your scope of authority Verify authority if necessary Follow up to verify compliance Insist on compliance if appropriate

SEVEN TYPES OF POWER SOURCES 2. Reward power Reward power is the perception by the subordinate that his/her boss controls certain resources and rewards desired by the subordinate. It is conveyed by rewarding individuals for compliance with the manager's wishes, e.g.: BonusRaisesPromotionExtra time off from workPraise E.g. The supervisor who provides employees compensatory time off when they meet an objective she sets for a project. (provided it meets appropriate labor laws regarding comp time.) KEY POINT: To be effective, the reward must be perceived as valuable to the employee, e.g. Millennial = Day care or Gym assistance vs. Baby Boomer = improvements in pension schemes or retiree health care.

Guidelines For Using Reward Power Offer the type of rewards that people desire (one size does not fit all) Offer rearwards that are fair and ethical Don’t promise more than you can deliver (under-promise --- over- deliver) Explain the criteria for giving rewards and keep is simple (K.I.S.S.) Provide rewards as promised if requirements are met Use rewards symbolically (not in a manipulative way)

SEVEN TYPES OF POWER SOURCES 3.Coercive power Based on authority over punishments It is conveyed through, e.g. Fear of losing one’s job Being demoted Receiving a poor performance review Having prime projects taken away, etc. This power is achieved through threatening others. E.g. The VP of Sales who threatens sales folks to meet their goals or be replaced. NOTE: US employment laws discourage this type of power because of the potential to be racist, sexist, or otherwise discriminatory

Guidelines For Using Coercive Power Explain rules and requirements and ensure that people understand the serious consequences of violations Respond to infractions promptly and consistently Investigate to get facts before using reprimands or piunishments Except for serious infractions, provide sufficient oral and written warnings in private Express a sincere desire to help the employee comply with role expectations and thereby avoid punishment Invite the employee to suggest ways to correct the problem

SEVEN TYPES OF POWER SOURCES 4. Information / Knowledge Power A form of power that is based on controlling the information needed by others in order to reach an important goal. May also increase a subordinate’s dependence Information power activities, e.g. Selective editing of reports Denying access without proper authority Denying information based upon the assumption of personal information (e.g. salaries, bonuses, personal data, performance reviews) Need to know basis

Guidelines For Using Information / Knowledge Power Understand what the information requested is being used for Insure this information can be shared appropriately Don’t hoard knowledge for the sake of power

SEVEN TYPES OF POWER SOURCES 5. Ecological Power Control over the physical environment, technology, and organization of the work provides an opportunity for indirect influence over other people Since behavior is determined, in part, by perceptions of opportunities and constraints, it can be altered in subtle ways by rearranging the situation: a.k.a. Situational Engineering or Ecological Control Used to modify the design of subordinate jobs to increase situational motivation (Job enrichment) Workflow design and layouts of physical facilities

Guidelines For Using Ecological Power Evaluate the physical environment & technology, Evaluate the organization of the work, e.g. Workflow design, layout of the physical facilities Determine who inter acts with whom Modify where practical

SEVEN TYPES OF POWER SOURCES 6. Referent power Referent power is the power or ability of individuals to attract others and build loyalty. It is based on the charisma and interpersonal skills of the power holder. A person may be admired because of specific personal trait, and this admiration creates the opportunity for interpersonal influence. Here the person under power desires to identify with these personal qualities (personal identification), and gains satisfaction from being an accepted follower. Examples: John F. Kennedy, Pope John Paul II, Donald Trump (?), Hillary(?)

Guidelines For Using Referent Power Lead by example (role modeling) Use sincere f forms of ingratiation Show acceptance and positive respect Be supportive and helpful

SEVEN TYPES OF POWER SOURCES 7. Expert Power Expert power comes from one’s experiences, skills or knowledge. As we gain experience in particular areas, and become thought leaders in those areas, we begin to gather expert power that can be utilized to get others to help us meet our goals. E.g. - Project Manager who is an expert at solving particularly challenging problems to ensure a project stays on track. -Doing your own taxes vs. a CPA

Guidelines For Using Expert Power Don’t make rash, careless or inconsistent statements Listen seriously to the person's concerns & suggestions Act confident and decisive in a crisis Explain reasons for a request or proposal and why it is important

Ways To Use And Maintain Expert Power Explain the reasons for the request or proposal and why it is important Provide evidence that the proposal will be successful Don’t lie, exaggerate or mis-represent the facts Act decisive and confident in a crisis

Ways To Gain And Use Referent Power Show Acceptance and positive regard Be supportive and helpful Keep promises and commitments Lead by example Explain the personal importance of a request

11 Proactive Influence Tactics Rational persuasionApprising Inspirational appealsConsultation CollaborationIngratiation Personal appealsExchange Coalition tacticsLegitimating tactics Pressure

Consequences of Power Effective Leaders: Have more expert and referent power Rely on personal power more than position power Have a moderate amount of position power Copyright 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations 8-22

Consequences of Power (Cont.) Position power is an important source of influence Position power can enhance personal power Control over information complements expert power Reward power facilitates deeper exchange relationships Copyright 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations 8-23

Consequences of Power (Cont.) Some coercive power is necessary to support legitimate and expert power Coercive power is needed to restrain disruptive influences Copyright 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations 8-24

Generally Successful Core Tactics Rational persuasion Consultation Collaboration Inspirational appeals Copyright 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations 8-25

Using Influence Tactics Guidelines are suggestions and not prescriptions Situational analysis for tactical feasibility Determine best form of tactics to use Copyright 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations 8-26

Practical Power Exercise In your teams you are to discuss scenarios when this power is appropriate and when this power is inappropriate. You should consider personal situations that you have experienced: Team 1=Legitimate power Team 2=Reward power Team 3=Coercive power Team 4 =Information power Team 5= Referent power Team 6=Expert power