© 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Ryerson 12 C H A P T E R: T W E L V E Power and Influence in the Workplace

2 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Power Overload at Worldcom Through excessive power and influence, former WorldCom CEO Bernard Ebbers (left), CFO Scott Sullivan (right), and other executives perpetrated one of the largest cases of accounting fraud in history. ©AP Photo/Kenneth Lambert

3 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e 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 ©AP Photo/Kenneth Lambert

4 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Power and Dependence PersonA Person B’s Goals PersonB Person B’s counterpower over Person A Person A’s power over Person B

5 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Model of Power in Organizations Power over Others Contingencies Of Power Legitimate Reward Coercive Expert Referent Sources Of Power

6 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e The Limits of Legitimate Power Crimson Tide illustrates the limits of legitimate power in organizations. US submarine Captain Frank Ramsey (Gene Hackman, right) orders his crew to launch nuclear weapons based on a message from Washington, whereas Lieutenant Commander Ron Hunter (Denzel Washington, left) opposes this decision because a second message is incomplete. What ensues is a mutiny that divides crew loyalties. ©Topham/The Image Works

7 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Sources of Power Legitimate Power Reward Power Coercive Power Expert Power Referent Power ©Topham/The Image Works

8 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e 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

9 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Contingencies of Power Contingencies of Power SubstitutabilityCentralityDiscretionVisibility Power over others Sources of Power

10 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Increasing Nonsubstitutability ControllingTasks ControllingKnowledge Differentiation ControllingLabour Increasing Nonsubstitutability

11 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e C. Price, Vancouver Province Jane Buckley: Golf Networker Jayne Buckley, an executive with Compass Group in Vancouver, travels with her golf clubs to help her network with colleagues and clients.

12 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Networking and Power Cultivating social relationships with others to accomplish one’s goals Increases power through  social capital -- durable network that connects people to others with valuable resources  referent power -- people tend to identify more with partners within their own networks  visibility and centrality contingencies

13 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Influencing Others Influence is any behaviour that attempts to alter someone’s attitudes or behaviour  Applies one or more power bases  Process through which people achieve organizational objectives  Operates up, down, and across the organizational hierarchy

14 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Assertiveness Actively applying legitimate and coercive power (“vocal authority”) Reminding, confronting, checking, threatening Silent Authority Following requests without overt influence Based on legitimate power, role modelling Common in high power distance cultures more Types of Influence

15 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Coalition Formation Group forms to gain more power than individuals alone 1.Pools resources/power 2.Legitimizes the issue 3.Power through social identity Exchange Promising or reminding of past benefits in exchange for compliance Negotiation is integral to this strategy Networking relates to exchange influence more Types of Influence (con’t)

16 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Ingratiation/ Impress. Mgt. Ingratiation Increasing liking/similarity to target Flattering, helping, seeking advice Impression Management Actively shaping our public images Way we dress, padding resumé Upward Appeal Appealing to higher authority Includes appealing to firm’s goals Formal alliance or perception of alliance with higher status person more Types of Influence (con’t)

17 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Persuasion Using logic, facts, emotional appeals to gain acceptance Depends on persuader, message content, message medium, audience Types of Influence (con’t) Information Control Manipulating others’ access to information Withholding, filtering, re-arranging information

18 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Consequences of Influence Tactics ResistanceComplianceCommitment Persuasion Ingratiation & impression mgt Exchange Soft Influence Tactics Hard Influence Tactics Silent authority Upward appeal Coalition formation Information control Assertiveness

19 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e ©AFP/Corbis Steve Jobs’ Reality Distortion Field Steve Jobs, CEO of Apple Computer and Pixar Animation Studios, is famous for influencing people through his persuasiveness, which draws them into his “reality distortion field.”

20 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Contingencies of Influence Tactics “Soft” tactics generally more acceptable Appropriate influence tactic depends on:  Organizational position  Influencer’s power base  Cultural values and expectations  Age cohort Gender differences ©AFP/Corbis

21 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Organizational Politics Behaviours that others perceive as self-serving tactics for personal gain at the expense of other people and possibly the organization

22 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e ConditionsSupportingOrganizationalPolitics ScarceResources Complex and AmbiguousDecisions Tolerance of Politics OrganizationalChange Conditions for Organizational Politics

23 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Minimizing Political Behaviour Leaders as role models Manage team norms Free flowing information Manage change effectively Introduce clear rules Support values that oppose politics

© 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Ryerson 12 C H A P T E R: T W E L V E Power and Influence in the Workplace