Organizational Behavior & Leadership MBA 552 Organizational Behavior & Leadership

Historical Evolution of Management Thought Pre-Scientific Pre – 1880s Focus – Basic principles for nature and society Position of authority and order Economic Rationale Early development of division of labor

Scholars – Pre-scientific Jethro – Moses’ father-in-law Gave advice to Moses regarding authority over the tribes of Israel Sun tzu – Wrote “The Art of War” 500BC Recognizes need for hierarchy, communications, and planning Aristotle 360 BC – Socrates 44 BC Management related to cultural environment Xenophon 370 BC – Division of labor Machiavelli – Unity of command and leadership Adam Smith – Factory system & Division of Labor

Work and the Ruling Class Work – Accomplished by slaves and lower level classes of people Elite ruled according to traditions

The Classical Era 1880s-1930s Scientific Management Administrative school Structuralist school

The Classical Era 1880s-1930s Focus Scientific Management Organizing, managing, effective, efficient Administrative school Basic functions of managers Structuralist school Characteristics of the ideal type of an organization

The Classical Era 1880s-1930s Scholars Scientific Management Frederick Taylor work measurement Best way to do a job Selection of individuals for the position Financial incentives

The Classical Era 1880s-1930s Scholars Administrative school Henry Fayol Planning Organizing Commanding Coordinating Controlling

The Classical Era 1880s-1930s Scholars Structuralist school Max Weber Bureaucratic Model Order via rules, procedures, authority, division of labor, functional specialization, well-defined hierarchy, differentiation of organizational functions, uniformity, and consistency

The Neoclassical Era 1830s-1960s Human Relations School Behavior schools Group Dynamics Leadership Decision making

The Neoclassical Era 1830s-1960s Cooperative systems Informal roles and norms influence individual performance Work group dynamics influence individual and group performance Decision-making styles influence performance

The Modern Era 1960- present Systems School Societal Systems School Management science school Contingency school

The Modern Era 1960- present Systems School Organizations are composed of systems and subsystems Societal Systems School Composed of social, technological, and environmental subsystems

The Modern Era 1960- present Management science school Quantitative methods used to solve management and organizational issues Contingency school Explores alternative organization design configurations and managerial actions for changing situations

Expectations theory Self-fulfilling prophecy

Expectations theory Self-fulfilling prophecy Belief that an event or outcome will take place

Expectations theory Self-fulfilling prophecy Three steps Belief an event will occur New behavior performed that would not have been performed if not for the expectation The expected event occurs

Learning Individual Team Organizational

Individual Learning Change of skills, insights, knowledge, attitudes, and values acquired by self-study, technology based instruction, insight and observation.

Power America’s last dirty word Those that openly seek it are categorized as power mongers – as if this is some sort of stigma They are looked down upon as lowly individuals

Concept of Power Power - the ability to influence another person Influence - the process of affecting the thoughts, behavior, & feelings of another person Authority - the right to influence another person 2

The Meaning of Power Power is the capacity of a person, team, or organization to influence others. The potential to influence others People have power they don’t use and may not know they possess Power requires one person’s perception of dependence on another person C. Price, Vancouver Province

Power The ability to produce change by mobilizing one or more people to take action

Power Important to achieve organizational goals Alliances are formed Work gets accomplished Leadership happens

Concept of Power Zone of Indifference - the range in which attempts to influence a person will be perceived as legitimate & will be acted on without a great deal of thought Zone of Indifference Managers strive to expand the zone of indifference Z o n e o f I n d i f f e r e n c e 3

Sources of Power Legitimate Power Reward Power Coercive Power Expert Power Reuters Archive Photos Referent Power

Sources of Organizational Power: Interpersonal Reward Power - agent’s ability to control the rewards that the target wants Coercive Power - agent’s ability to cause an unpleasant experience for a target Legitimate Power - agent and target agree that agent has influential rights, based on position and mutual agreement Referent Power - based on interpersonal attraction Expert Power - agent has knowledge target needs 4

Which Power is Most Effective? Expert Power! Strong relationship to performance & satisfaction Transfers vital skills, abilities, and knowledge within the organization Employees internalize what they observe & learn from managers they consider “experts” 5

Information Power Information Power - access to and control over important information Formal/informal position in communication network Interpreting information when passing it on

Information and Power Control over information flow Based on legitimate power Relates to formal communication network Common in centralized structures (wheel pattern) Coping with uncertainty Those who know how to cope with organizational uncertainties gain power Prevention Forecasting Absorption

Using Power Ethically Does the behavior produce a good outcome for people both inside and outside the organization? Does the behavior respect the rights of all parties? Does the behavior treat all parties equitably and fairly? 6

Two Faces of Power Personal Power used for personal gain Social Power used to create motivation used to accomplish group goals 7

Successful Power Users Have high need for social power Approach relationships with a communal orientation Focus on needs and interests of others belief in the authority system preference for work & discipline belief in justice altruism 8

Sources of Organizational Power: Intergroup Control of critical resources Control of strategic contingencies - activities that other groups need to complete their tasks Ways groups hold power over other groups Ability to reduce uncertainty High centrality - functionality central to organization’s success Nonsubstitutability - group’s activities are difficult to replace 9

Power Analysis: A Broader View Organizational Power Coercive Power - influence through threat of punishment, fear, or intimidation Utilitarian Power - influence through rewards and benefits Normative Power - influence through knowledge of belonging, doing the right thing

Power Analysis: A Broader View Organizational Membership Alienative Membership - members feel hostile, negative, do not want to be there Calculative Membership - members weigh benefits and limitations of belonging Moral Membership - members have positive organizational feelings; will deny own needs

Kanter’s Symbols of Power Ability to intercede for someone in trouble Ability to get placements for favored employees Exceeding budget limitations Procuring above-average raises for employees Getting items on the agenda at meetings Access to early information Having top managers seek out their opinion 11

Kanter’s Symbols of Powerlessness Top Executives budget cuts punishing behaviors top-down communications Staff Professionals resistance to change turf protection Managers assign external attribution - blame others or environment First-line Supervisors overly close supervision inflexible adherence to rules do job rather than train Key to overcoming powerlessness: share power & delegate decision making 12

Korda’s Power Symbols Power - there are more people who inconvenience themselves on your behalf than there are people on whose behalf you would inconvenience yourself Status - a person’s relative standing in a group based on prestige and deference Time Access Furnishings 13

Using Power Effectively Use power in ethical ways Understand and use all of the various types of power and influence Seek out jobs that allow you to develop your power skills Use power tempered by maturity and self-control Accept that influencing people is an important part of the management job 25

Analyzing Power Dynamics Think Then Act

Analyzing Power Dynamics Power Distribution Who has the power Who needs the power What can be done to influence the power holder How well do I know the power holder When can I get to see the power holder What strategies have influenced the power holder in the past

Analyzing Power Dynamics Structural Diversity What is the relationship of the two projects Growth potential of each, profits long and short-term organizational benefits Do they depend on each other? Interdependence Breeds dependence and creates a power differential

Power and Dependence Person A Person B Person B’s Goals Person B’s counterpower over Person A Person A Person B Person B’s Goals Person A’s power over Person B

Power - Legitimate Formal – organizationally assigned Part of the managerial hierarchy Informal – Expert power Superior expertise in the ability to perform a particular job

Model of Power in Organizations Sources Of Power Power over Others Legitimate Reward Coercive Expert Referent Contingencies Of Power

The Limits of Legitimate Power The Caine Mutiny illustrates the limits of legitimate power in organizations. Captain Queeg (Humphrey Bogart,) asked his crew to do more than they were willing to follow, so they staged a mutiny. Reuters Archive Photos

Increasing Nonsubstitutability Differentiation Controlling Tasks Increasing Nonsubstitutability Controlling labor Controlling Knowledge

Contingencies of Power over others Sources Of Power Contingencies Of Power Substitutability Centrality Discretion Visibility

Consequences of Power Commitment Compliance Resistance Sources of Power Consequences of Power Expert Power Commitment Referent Power Legitimate Power Compliance Reward Power Resistance Coercive Power

Sexual Harassment and Power Harasser stereotypes the victim as subservient and powerless Harasser threatens job security or safety through coercive or legitimate power Hostile work environment harassment continues when the victim lacks power to stop the behavior

Office Romance and Power Co-workers believe that employees in relationships abuse their power to favor each other. Higher risk of sexual harassment when relationship breaks off.

Organizational Politics Attempts to influence others using discretionary behaviors to promote personal objectives Discretionary behaviors -- neither explicitly prescribed nor prohibited Politics may be good or bad for the organization

Political Behavior in Organizations Organizational Politics - the use of power and influence in organizations Political Behavior - actions not officially sanctioned by an organization that are taken to influence others in order to meet one’s personal goals 14

Types of Organizational Politics Managing impressions Attacking and blaming Types of Organizational Politics Controlling information Creating obligations Cultivating networks Forming coalitions

Conditions for Organizational Politics Personal Characteristics Scarce Resources Conditions Supporting Organizational Politics Tolerance of Politics Complex and Ambiguous Decisions

Controlling Political Behavior Provide Sufficient Resources Remove Political Norms Introduce Clear Rules Hire Low-Politics Employees Free Flowing Information Increase Opportunities for Dialogue Manage Change Effectively Peer Pressure Against Politics

Persuasive Communication Communicator Characteristics • Expert • Credibility • Attractive Communication Medium Audience Characteristics • Self-esteem • Inoculated Message Content • Present all sides • Few arguments • Emotional appeals • Inoculation effect

Effective Political Characteristics What characteristics do effective political actors possess? ? 15

Upward Influence: the boss Influence Tactics Consultation Inspirational appeals Rational persuasion Ingratiation Coalition Exchange tactics Upward appeals Pressure Upward Influence: the boss Lateral Influence: a coworker Downward Influence: an employee 16

Managing Political Behavior Maintain open communication Clarify performance expectations Use participative management Encourage cooperation among work groups Manage scarce resources well Provide a supportive organizational climate 17

Assess Yourself and Your Needs Managing Up: The Boss Understand Your Boss and Her Context Her goals and objectives The pressures on her Her strengths, weaknesses, blind spots Her preferred work style Assess Yourself and Your Needs Your own strengths and weaknesses Your personal style Your predisposition toward dependence on authority figures

Managing Up: The Boss Develop and Maintain a Relationship that Fits both your needs and styles Is characterized by mutual expectations Keeps your boss informed Is based on dependability and honesty Selectively uses your boss’s time and resources SOURCE: Information on slides 21-22 adapted and reprinted by permission of Harvard Business Review. From J. J. Gabarro and J. P. Kotter, “Managing Your Boss,” Harvard Business Review (January-February 1980): 92-100. Copyright© 1980 by the Harvard Business School Publishing Corporation; all rights reserved. 20

Sharing Power: Empowerment sharing power in such a way that individuals learn to believe in their ability to do the job! 21

Empowerment’s Dimensions Meaning - fit between the work role and the employee’s values and beliefs Competence - belief that one has the ability to do the job well E2s Self-determination - having control over the way one does one’s work Impact - belief that one’s job makes a difference within the organization 22

Guidelines for Empowering Express confidence in employees Set high performance expectations Create opportunities for participative decision making Remove bureaucratic constraints that stifle autonomy Set inspirational and meaningful goals 23

Using Power Effectively Use power in ethical ways Understand and use all of the various types of power and influence Seek out jobs that allow you to develop your power skills Use power tempered by maturity and self-control Accept that influencing people is an important part of the management job 25

Understand and use all of the various types of power and influence Always say less than necessary Guard your reputation with your life Court attention at all cost Make other people come to you Win through actions, not arguments

Understand and use all of the various types of power and influence Avoid the unhappy and unlucky people Learn to keep people dependent on you Do not isolate yourself Know who you are dealing with Play dumb

Understand and use all of the various types of power and influence Keep your hands clean Enter action with boldness Act well to be treated well Ignore the things you cannot have Do not try to directly replace anyone You may be compared to that great person

Understand and use all of the various types of power and influence Preach the need for change Never appear too perfect Do not go past your goal – until you are able to formulate new directions

Formula for Success If A equals success, then the formula is A = X + Y + Z. X is work. Y is play. Z is keep your mouth shut. -- Albert Einstein