6-1 BUS7000 Organizational Behavior &Theory Week 6 Dr Jenne Meyer 1

10-2 Article Analysis 2

Power and Influence in the Workplace McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

10-4 The Power of Managing Your Boss Managing your boss is the process of improving the relationship with your manager for the benefit of both of you and the organization. It includes developing bases of power that enable you to influence the manager and thereby achieve organizational objectives. Most executives say it is a key factor in everyone’s career success.

10-5 The Meaning of Power Power is the capacity of a person, team, or organization to influence others. Potential, not actual use People have power they don’t use -- may not know they possess A perception, not necessarily reality

10-6 Power and Dependence Person B’s Goal Person B’s countervailing power over Person A Person A Person B Person A’s power over Person B Person A is perceived as controlling resources that help or hinder Person B’s goal achievement.

10-7 Model of Power in Organizations Contingencies of Power Contingencies of Power Power over others Power over others Sources of Power Sources of Power Legitimate Reward Coercive Expert Referent Legitimate Reward Coercive Expert Referent

10-8 Videos  Management styles explained: sid=0&sid=0&State=&title=Management Styles Explained&IsSearch=N&parentSeriesID=

10-9 Deference to Authority: Le Jeu de la Mort French reality television recently revealed how far people are willing to submit to authority. Only 16 of the 80 contestants refused to administer the strongest shocks (460 volts – enough to kill a person) when another contestant gave the wrong answers. Fortunately, the other contestant was an actor whose screams were fake; he did not actually receive the shocks.

10-10 Legitimate Power  Agreement that people in certain roles can request certain behaviors of others  Based on job descriptions and mutual agreement  Legitimate power range (zone of indifference) varies across national and org cultures.  Norm of reciprocity – legitimate power as a felt obligation to help others who helped you in the past

10-11 Legitimate Power: Right to Control Information Flow This person has high information control These people individually have low information control Wheel formation All-channels formation

10-12 Reward and Coercive Power  Reward Power Ability to control the allocation of rewards valued by others and to remove negative sanctions  Coercive Power Ability to apply punishment Peer pressure is a form of coercive power  Reward and coercive power exist upward as well as downward in hierarchies.

10-13 Expert Power  The capacity to influence others by possessing knowledge or skills that they value  Coping with uncertainty Organizations operate better in predictable environments People gain power by using their expertise to: - Prevent environmental changes - Forecast environmental changes - Absorb environmental changes

10-14 Referent Power  Occurs when others identify with, like, or otherwise respect the person  Associated with charismatic leadership

10-15 Contingencies of Power Contingencies of Power Contingencies of Power Substitutability Centrality Discretion Visibility Substitutability Centrality Discretion Visibility Power over others Power over others Sources of Power Sources of Power

10-16 The Power of Nonsubstitutability Your personal brand improves career success when you offer something that is valued and nonsubstitutable. “Be unique about something. Be a specialist in something. Be known for something,” advises Deloitte Touche Tohmatsu CEO Barry Salzberg (center).

10-17 Increasing Nonsubstitutability  Few/no alternatives to the resource  Increase nonsubstitutability by controlling the resource exclusive right to perform medical procedures control over skilled labor exclusive knowledge to repair equipment  Differentiate resource from others (i.e. be unique)

10-18 Centrality  Degree and nature of interdependence between the powerholder and others (reflects the person’s importance to others)  Centrality is a function of: How many others are affected by you How quickly others are affected by you

10-19 Discretion and Visibility  Discretion The freedom to exercise judgment Rules limit discretion, limit power Also a perception – acting as if you have discretion  Visibility Make others aware of your presence –more face time, locate office near busy routes Symbols communicate your power source(s) - Educational diplomas - Clothing etc (stethoscope around neck)

10-20 Power and Influence Through Social Networks  Social networks – people connected to each other through forms of interdependence  Generate power through social capital -- goodwill and resulting resources shared among members in a social network  Three power resources through social networks Knowledge sharing Visibility Referent power

10-21 Social Network Ties  Strong ties: Close-knit relationships (frequent interaction, high volume sharing, multiple roles) Offer resources more quickly/plentifully, but less unique  Weak ties Acquaintances Offer unique resources not held by us or people in other networks  Many ties Resources increase with number of ties Limits on number of weak/strong ties one can create

10-22 Social Network Centrality  Person’s importance in a network  Three factors in centrality: 1. Betweenness – extent you are located between others in the network (i.e. information gatekeeper) 2. Degree centrality -- Number of people connected to you 3. Closeness – stronger relationships (faster/plentiful resources)  Example: “A” has highest network centrality due to all three factors; “B” has lowest centrality A B

10-23 Influencing Others  Influence -- any behavior that attempts to alter someone’s attitudes or behavior  Applies one or more power bases  Process through which people achieve organizational objectives  Operates up, down, and across the organizational hierarchy

10-24 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 modeling Common in high power distance cultures more Types of Influence

10-25 Coalition Formation Group forms to gain more power than individuals alone 1. Pools resources/power 2. Legitimizes the issue 3. Power through social identity more Types of Influence (con’t) Information Control Manipulating others’ access to information Withholding, filtering, re-arranging information

10-26 Upward Appeal Appealing to higher authority Includes appealing to firm’s goals Alliance or perceived alliance with higher status person more Types of Influence (con’t) Persuasion Logic, facts, emotional appeals Depends on persuader, message content, message medium, audience

10-27 Types of Influence (con’t) Exchange Promising or reminding of past benefits in exchange for compliance Includes negotiation and networking Ingratiation/ Impress. Mgt. Increase liking by, or perceived similarity to the target person

10-28  The power to Influence others: =0&sid=0&State=&title=Obeying or Resisting Authority: A Psychological Retrospective&IsSearch=Y&parentSeriesID=&loid=47242

10-29 Consequences of Influence Tactics people oppose the behavior desired by the influencer motivated by external sources (rewards) to implement request identify with and highly motivated to implement requestResistanceComplianceCommitment

10-30 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

10-31 Contingencies of Influence Tactics  “Soft” tactics generally more acceptable than “hard” tactics  Appropriate influence tactic depends on: Influencer’s power base Organizational position Cultural values and expectations

10-32 Organizational Politics Behaviors that others perceive as self-serving tactics for personal gain at the expense of other people and possibly the organization.

10-33 Conditions that Encourage Organizational Politics Scarce resources – to safeguard own resources Ambiguous resource allocation decisions Organizational change – due to uncertainty, ambiguity

10-34 Minimizing Political Behavior  Introduce clear rules for scarce resources  Effective organizational change practices  Suppress norms that support or tolerate self-serving behavior  Leaders role model organizational citizenship  Give employees more control over their work  Keep employees informed

Leadership in Organizational Settings McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

12-36 Videos  IBM Leadership Competencies:  Daniel Goleman: Leadership:  Discover Channel: what is leadership:  Discovery Channel: What makes a good leader?: leader leader

10-37 The Leadership of Steve Jobs During his life, Steve Jobs won numerous awards for his transformational and charismatic leadership. The co-founder of Apple, Inc. and Pixar animation Studios was equally renowned as a demanding perfectionist with less-than-ideal people skills.

10-38 Leadership Defined Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members

10-39 Shared Leadership  The view that leadership is broadly distributed, rather than assigned to one person, such that people within the team and organization lead each other. Employees champion change, ideas, etc.  Shared leadership requirements: Formal leaders willing to delegate power Collaborative culture – employees support each other Employees able to influence others

10-40 LeadershipPerspectives Competency Perspective Contingency Perspective Implicit Leadership Perspective Transformational Perspective Perspectives of Leadership Behavioral Perspective

10-41 Competency Perspective  Personal characteristics that lead to superior performance in a leadership role  Several competencies now identified as key influences on leadership potential and of effective leaders

10-42 Self-concept Drive Positive self-evaluation High self-esteem and self-efficacy Internal locus of control Inner motivation to pursue goals Inquisitiveness, action-oriented Integrity Truthfulness Consistency in words and actions Personality Extroversion, conscientiousness (and other personality dimensions) Eight Leadership Competencies more

10-43 Cognitive/ Practical intelligence Above average cognitive ability Able to solve real-world problems Knowledge of the Business Understands external environment Aids intuitive decision making Eight Leadership Competencies (con’t) Leadership Motivation Motivation to lead others High need for socialized power Emotional Intelligence Perceiving, assimilating, understanding, and regulating emotions

10-44 Authentic Leadership at TNT TNT, the Netherlands-based express and mail delivery services company, relies on “honesty, authentic leadership, and truly connecting with staff” to keep the firm humanized. “What you can do as a company is emphasize that authentic leadership is key and explain what it entails” says TNT’s head of human resources.

10-45 Authentic Leadership Know Yourself Engage in self- reflection Feedback from trusted sources Know your life story Engage in self- reflection Feedback from trusted sources Know your life story Be Yourself Develop your own style Apply your values Maintain a positive core self-evaluation Develop your own style Apply your values Maintain a positive core self-evaluation

10-46 Competency Perspective Limitations 1. Implies a universal approach 2. Alternative combinations of competencies might work just as well 3. Leadership is relational, not just something within the person 4. Competencies refer to leadership potential, not performance

10-47 Leader Behavior Perspective  Task-oriented behaviors Assign work, clarify responsibilities Set goals and deadlines, provide feedback Establish work procedures, plan future work  People-oriented behaviors Concern for employee needs Make workplace pleasant Recognize employee contributions Listen to employees

10-48 Leader Behavior Perspective Limitations  These categories mask subcategories of leader behavior that may be distinct  Assumes best leaders display a high level of both people-oriented and task-oriented styles But best style seems to depend on the situation

10-49 Servant Leadership  Leaders serve others toward their need fulfillment, personal development, and growth  Described as selfless, egalitarian, humble, nurturing, empathetic, and ethical coaches  Three main features: 1. Natural calling to serve others 2. Maintain a humble, egalitarian, accepting relationship 3. Anchor decisions/actions on ethical principles

10-50 Anne Sweeney’s Path-Goal Leadership Disney/ ABC executive Anne Sweeney has an uncanny ability to provide both task-oriented and people-oriented leadership.  “There's great resolve and strength there.”  “Anne draws upon her optimism and her grace in keeping her focus firmly on the future.”  “[She] asks the tough questions.... It trains you to anticipate it.”  “She's very concerned about the people who work for her.”

10-51 Path-Goal Leadership  Effective leaders provide the information, support, and other resources, and ensure that rewards are linked to good performance  Several employee and situational contingencies to determine the best leader style

10-52 Path-Goal Leadership Styles  Directive Provide psychological structure to jobs Task-oriented behaviors  Supportive Provide psychological support People-oriented behaviors  Participative Encourage/facilitate employee involvement  Achievement-oriented Encourage peak performance through goal setting and positive self-fulfilling prophecy

10-53 Path-Goal Leadership ModelEmployeeContingenciesEmployeeContingencies EnvironmentalContingenciesEnvironmentalContingencies Leader Behaviors Directive Supportive Participative Achievement- oriented Directive Supportive Participative Achievement- oriented Leader Effectiveness Employee motivation Employee satisfaction Acceptance of leader Employee motivation Employee satisfaction Acceptance of leader

10-54 Path-Goal Contingencies  Skill and experience Low: directive and supportive leadership  Locus of control Internal: participative and achievement leadership External: directive and supportive leadership  Task structure Nonroutine: directive and/or participative leadership  Team dynamics Low cohesion: supportive leadership Dysfunctional norms: directive leadership

10-55 Other Contingency Leader Theories  Situational Leadership Model Four styles: telling, selling, participating, delegating Best style depends on follower ability/motivation Popular model, but lacks research support  Fiedler’s Contingency Model Leadership style is stable -- based on personality Best style depends on situational control Theory has problems, but uniquely points out that leaders have a preferred style, not very flexible

10-56 Leadership Substitutes  Contingencies that limit a leader’s influence or make a particular leadership style unnecessary e.g.: Training and experience replace task-oriented leadership  Research evidence: substitutes help, but don’t completely substitute for real leadership

10-57 Transformational, Managerial, and Transactional Leadership  Transformational leadership Change agents – transforming the organization to fit environment  Managerial leadership Improving employee performance and well-being in the current situation Applies contingency leadership theories (e.g. path-goal)  Transactional leaders Influencing followers through rewards, penalties, and negotiation Courtesy of Microsoft

10-58 Transformational v. Charismatic Leaders  Some leadership models say charismatic leadership is essential for transformational leadership  Emerging view -- charisma differs from transformational leadership  Charisma is a personal trait that provides referent power Doesn’t necessarily attempt to change the organization  Transformational leadership is a set of behaviors to bring about change

10-59 Transformational Leadership Model Develop a strategic vision Communicate the vision Model the vision Build commitment to the vision Elements of Transformational Leadership

10-60 Transformational Leadership Elements  Create a strategic vision Image of company’s attractive future Motivates and bonds employees Vision may originate from the leader, employees, or other stakeholders  Communicate the vision Frame message around a grand purpose Shared mental model of the future Use symbols, metaphors, symbols Develop a strategic vision Communicate the vision Elements of Transformational Leadership

10-61 Transformational Leadership Elements (con’t)  Model the vision Walk the talk Symbolize/demonstrate the vision through behavior Employees trust leader more  Build commitment to the vision By communicating and modeling the vision Through employee involvement in shaping the shared vision Develop a strategic vision Communicate the vision Model the vision Build commitment to the vision Elements of Transformational Leadership

10-62 Evaluating Transformational Leadership  Transformational leadership is important Higher employee satisfaction, performance, org citizenship, creativity  Transformational leadership limitations Risk of circular logic - Some research defines transformational leaders by their success rather than their behavior Universal theory - Need a contingency-oriented theory - Need to recognize cultural differences

10-63 Implicit Leadership Perspective Follower perceptions of characteristics of effective leaders 1. Leadership prototypes Preconceived beliefs about the features and behaviors of effective leaders. 2. Romance of leadership effect Amplify effect of leaders on organizational results Fundamental attribution error Need for situational control

10-64 Leading with Ubuntu Values Barloworld Logistics CEO Isaac Shongwe is keen to imprint Africa’s unique ubuntu value throughout the company’s operations in 26 countries. Ubuntu is the notion of that each of us is a person through others. Thus, ubuntu calls for leadership that emphasizes mutual respect, tolerance, and forgiveness.

10-65 Cultural Issues in Leadership  Societal cultural values and practices affect leaders: Shape leader’s values/norms Influence decisions and actions Shape follower prototype of effective leaders  Some leadership styles are universal, others differ across cultures “Charismatic visionary” seems to be universal Participative leadership works better in some cultures than others

10-66 Gender Issues in Leadership  Male and female leaders have similar task- and people-oriented leadership  Participative leadership style is used more often by female leaders  Evaluating female leaders Still receive negative evaluations as leader due to prototypes and gender stereotypes But evidence that they are good at emerging leadership styles (coaching, teamwork)

10-67 Week 5 wrap up  Questions?  Assignments for next week