What are power and influence? What are the key sources of power and influence? What is empowerment? What is organizational politics? Copyright © 2012 John Wiley & Sons, Inc. 12-2

Power  The ability to get someone to do something you want done.  The ability to make things happen in the way you want. Influence  Expressed by others’ behavioral response to the exercise of power. Interdependence  Employee’s are closely connected with the individuals in their workgroup, those in other departments they work with, and their supervisors Copyright © 2012 John Wiley & Sons, Inc.

Legitimacy – an understood and unwritten set of social mores and conventions that serve to maintain societal order. Obedience – tendency for individuals to comply and be obedient—to switch off their emotions and merely do exactly what they are told to do Copyright © 2012 John Wiley & Sons, Inc.

Acceptance of authority (‘consent of the governed’) is the concept that subordinates will accept or follow a managerial directive only if the subordinate :  Understands the directive.  Is mentally and physically capable of carrying out the directive.  Believes the directive is consistent with organization’s purpose and personal interests Copyright © 2012 John Wiley & Sons, Inc.

Zone of indifference  Range of requests to which a person is willing to respond without subjecting the directives to critical evaluation or judgment.  Psychological contract – unwritten set of expectations about a person’s exchange of inducements and contributions with an organization Copyright © 2012 John Wiley & Sons, Inc.

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Two primary sources of power: Position  Derives from a person’s position in the organization. Personal  Resides in the individual.  Independent of that individual’s position Copyright © 2012 John Wiley & Sons, Inc.

Legitimate RewardCoercive ProcessInformationRepresentative T YPES OF POSITION POWER 12-9Copyright © 2012 John Wiley & Sons, Inc.

Legitimate power  The extent to which a manager can use subordinates’ internalized values or beliefs that the “boss” has a “right of command” to control their behavior Copyright © 2012 John Wiley & Sons, Inc.

Reward power  The extent to which a manager can use extrinsic and intrinsic rewards to control other people. Coercive power  The extent to which a manager can deny desired rewards and administer punishments to control other people Copyright © 2012 John Wiley & Sons, Inc.

Process power  The control that a manager has over methods of production and analysis Copyright © 2012 John Wiley & Sons, Inc.

Information power  The access to and/or control of information. Representative power  The formal right conferred to an individual by the firm to speak for a potentially important group Copyright © 2012 John Wiley & Sons, Inc.

Expert Rational Persuasion Coalition Ability to control another’s behavior through the possession of knowledge, experience or judgment. Ability to control another’s behavior because of accepted desirability of an offered goal and a way of achieving it. Ability to control another’s behavior because the person wants to identify with the power source. Ability to control another’s behavior indirectly because of a reciprocal obligation to you or the larger group. Referent Copyright © 2012 John Wiley & Sons, Inc.

Building influence  Power-oriented behavior is action directed primarily at developing relationships in which other people are willing to defer to one’s wishes.  Downward, upward, lateral Copyright © 2012 John Wiley & Sons, Inc.

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Build Position Power › Demonstrate to others that work unit is relevant to organizational goals ( centrality ). › Demonstrate to others the ability to respond to urgent organizational need (criticality).  Managers make part of their job responsibilities unique.  Managers may expand their network of communication contacts and also increase task relevance Copyright © 2012 John Wiley & Sons, Inc.

 Build expertise through advanced training and education.  Participate in professional associations, and early stages of projects.  Enhance likeability by creating personal appeal in relationships with others.  Includes pleasant personality traits, agreeable behavior patterns, and attractive appearance.  Enhance political savvy by learning ways to negotiate, persuade.  Understand goals and means that most are willing to accept Copyright © 2012 John Wiley & Sons, Inc.

Which personal power would you likely use to request a promotion? a. Coalition b. Rational persuasion c. Expertise Copyright © 2012 John Wiley & Sons, Inc.

Ways that managers increase the visibility of their job performance in organizations  Expand contacts with senior people.  Make oral presentations of written work.  Participate in problem-solving task forces.  Send out notices of accomplishment.  Seek additional opportunities to increase personal name recognition Copyright © 2012 John Wiley & Sons, Inc.

Controlling decision premises  Defining a problem in terms of your own expertise in solving it.  Stating goals and needs clearly and bargaining effectively Copyright © 2012 John Wiley & Sons, Inc.

Strengthening influence techniques through:  Reason - use facts and data to support a logical argument.  Friendliness - use flattery, goodwill and favorable impressions.  Coalition – use relationships, with others, for support.  Bargaining – use exchange of benefits as a basis for negotiation.  Assertiveness – use direct and forceful approach.  Higher authority – gain higher level support for requests.  Sanctions – organizational rewards/punishments Copyright © 2012 John Wiley & Sons, Inc.

Empowerment  The process by which managers help others to acquire and use the power needed to make decisions affecting themselves and their work.  One view considers power to be something that can be shared by everyone working in flatter and more collegial structures Copyright © 2012 John Wiley & Sons, Inc.

Changing position power  Moving power down the hierarchy alters the existing pattern of position power.  Changing this pattern raises the following important questions:  Can “empowered” individuals give rewards and sanctions based on task accomplishment?  Has their new right to act been legitimized with formal authority? Copyright © 2012 John Wiley & Sons, Inc.

Power as an expanding pie  The key is to change from a view stressing power over others to one emphasizing the use of power to get things done.  Requires leader support, training, coaching, individual supervision and clear, re-stated definitions of roles and responsibilities Copyright © 2012 John Wiley & Sons, Inc.

Two traditions of organizational politics :  Machiavellian – focuses on self interest and the use of nonsanctioned means philosophy.  Art of creative compromise among competing interests - view that states the firm is more than just an instrument for accomplishing a task or a mere collection of individuals with a common goal Copyright © 2012 John Wiley & Sons, Inc.

Effects of organizational politics  Enhances the achievement of organizational goals and survival.  Can serve a number of important work functions.  Provides a mechanism for circumventing inadequacies and getting the job done.  Helps identify problems and move ambitious, problem-solving managers Copyright © 2012 John Wiley & Sons, Inc.

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The Politics of Self Protection  Avoidance – employee must risk being wrong or where actions may yield a sanction.  Working to the rules  Playing dumb  Depersonalization  Stalling Copyright © 2012 John Wiley & Sons, Inc.

 Redirecting accountability and responsibility  Passing the buck  Rewriting history  Redirecting (scapegoating, blaming the problem on someone or some group that has difficulty defending itself, and blaming problem on uncontrollable events,)  Escalating commitment Copyright © 2012 John Wiley & Sons, Inc.

Defending turf is a common political dynamic when:  Managers seek to improve their power attempt by expanding the jobs their groups perform.  Competing interests exist among various departments and groups Copyright © 2012 John Wiley & Sons, Inc.

Agency theory  Suggests that public corporations can function effectively even though their managers are self-interested and do not automatically bear the full consequences of their managerial actions Copyright © 2012 John Wiley & Sons, Inc.

Key arguments of agency theory  All of society’s interests are served by protecting stockholder interests.  Stockholders have a clear interest in greater returns.  Managers are self-interested and must be controlled Copyright © 2012 John Wiley & Sons, Inc.

Types of controls instituted for agents  Pay plan incentives that align the interests of management and stockholders.  The establishment of a strong, independent board of directors.  Stakeholders with a large stake in the firm take an active role one the board Copyright © 2012 John Wiley & Sons, Inc.

Resource dependencies  The firm’s need for resources that are controlled by others. The dependencies increase as :  Needed resources become more scarce.  Outsiders have more control over needed resources.  There are fewer substitutes for a particular type of resource controlled by a limited number of outsiders Copyright © 2012 John Wiley & Sons, Inc.

Organizational governance  The pattern of authority, influence, and acceptable managerial behavior established at the top of the organization Copyright © 2012 John Wiley & Sons, Inc.