Political Theories By TingTing Lian, Yiwen Gu

Resources in businesses are limited, conflicts or disagreements are occurred. E.g. departmental budgets, space allocations, project responsibilities and salary changes. Thus, competition is created, as well as a battleground in the business which is won by power and politics.

Political Behavior those activities that aren’t needed as part of the formal role of the business. influence or attempt to influence the distribution of resources, advantages and disadvantages within the business.

Uses of power and influence Sources of power Reward power Based on a person’s ability to reward others Expert power Based on a person’s special knowledge or skills Referent power Based on a person’s popularity Coercive power Based on a person’s ability to punish others Legitimate power Based on a person’s position in the business

Sources of Power Legitimate power - Based on a person’s position in the business Reward power - Based on a person’s ability to reward others - It is the power to give positive benefits or rewards. Expert power - It is the influence that is based on expertise, special skill or knowledge. Coercive power - It is the power that rests on the leader’s ability to punish or control. Referent power - Based on a person’s popularity - It is the power that arises because of a person’s desirable resources or personal traits.

Management as negotiating and bargaining Group ‘power tactics’ into 7 groups -> ways in which individuals use their power to get things done Reason – use of facts and data to make a presentation. Friendliness – being friendly prior to making a request. Coalition – getting the support of other people in the organization to back up the request. Bargaining – use of negotiation Assertiveness – use of a direct and forceful approach Higher authority – gaining the support of higher levels in the organization Sanctions – use of organizationally derived rewards and punishments The most popular strategy – the use of reason

Factors that affected the selection of the power tactics  The manager’s relative power Manager who control resources that are valued by other use a greater variety of tactics than do those with less power. Managers with power use assertiveness more often than do those with less power.  The manager’s objective for wanting to influence gain benefits -> use friendliness When trying to get organization accept new idea -> reason  The manager’s expectation of the target person’s willingness to comply When the chance of success is high -> simple requests When the chance of success is less likely -> assertiveness and sanction  The organization’s culture Some are warm, friendly and supportive Some are formal and conservative

Structure as coalitions Definition: Coalition is an informal group bound together by the active pursuit of a single issue. Aim: by combining their resources, members of a coalition hope to win power and rewards for themselves.

Jeffrey Pfeffer a business’s structure represents the result of power struggles by these diverse coalitions. assess the preferences and interests of those in the organizations who have influence over the design decisions.

Stakeholder View managers need to decide how important each stakeholder group is to the business’s decision and actions. - Critical stakeholders: large institutional investors like superannuation funds have the power to control boards and even fire management if they are dissatisfied with the performance of the business. more critical stakeholders  tight link and more effort to manage the relationship.