MNGT 5590 Organizational Behavior Week 6: Chapters 10, 11, 12 Dr MNGT 5590 Organizational Behavior Week 6: Chapters 10, 11, 12 Dr. George Reid

Chapter 10: Power and Influence Chapter 11: Conflict and Negotiation Chapter 12: Leadership

Power and Influence in the Workplace Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Whale Power at JP Morgan Through unconstrained power and influence, a handful of traders (including the infamous London Whale) in the London bureau of JP Morgan’s chief investment office produced a mammoth $7 billion loss.

The Meaning of Power The capacity of a person, team, or organization to influence others Potential to change attitudes and behavior (not actual change) People may be unaware of their power Perception –target perceives powerholder controls a valuable resource Power involves unequal dependence

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

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

Legitimate Power Agreement that people in certain roles can request certain behaviors of others Zone of indifference -- range of behaviors for deference to authority Norm of reciprocity -- felt obligation to help someone who has helped you Information control -- right to distribute information to others Creates dependence Frames situation

Expert Power 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

Other Sources of Power Reward power Coercive power Referent power Control rewards valued by others, remove negative sanctions Coercive power Ability to apply punishment Referent power Capacity to influence others through identification with and respect for the power holder Associated with charisma

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

Increasing Nonsubstitutability Substitutability – availability of alternatives More power when few/no alternatives Reduce substitutability through: Monopoly over resource Controlling access to the resource Differentiating the resource

Other Contingencies of Power Centrality Degree and nature of interdependence with powerholder Higher centrality when (a) many people affected and (b) quickly affected Visibility You are known as holder of valued resource Increases with face time, display of power symbols Discretion The freedom to exercise judgment Rules limit discretion Discretion is perceived by others

Power 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 networks Information Visibility Referent power

Social Network Ties Strong ties: Weak ties Many ties Close-knit relationships (frequent interaction, high 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 Limited capacity to form weak/strong ties

Social Network Centrality Person’s importance in a network Three factors in centrality: Betweenness – extent you are located between others in the network Degree centrality -- Number of people connected to you Closeness – stronger relationships Example: “A” has highest centrality due to all three factors; “B” has lowest centrality A B

Influencing Others Influence is any behavior that attempts to alter someone’s attitudes or behavior Applies one or more power bases Essential activity in organizations Coordinate with others Part of leadership definition Everyone engages in influence

Types of Influence Silent Authority Assertiveness Following requests without overt influence Based on legitimate power, role modeling Common in high power distance cultures Assertiveness Actively applying legitimate and coercive power (“vocal authority”) Reminding, confronting, checking, threatening more

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

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

Types of Influence (con’t) Impression Management Actively shaping or public image Self-presentation Ingratiation Exchange Promising or reminding of past benefits in exchange for compliance Negotiation, reciprocity, networking

Organizational Politics Manipulating/influencing others: Negative: For personal gain or approval (narrow self- interest) Positive: For the benefit of others or the future (enlightened self-interest)

Power and Influence in the Workplace 10-23

Conflict and Negotiation in the Workplace Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Is Conflict Good or Bad? Negative Outcomes Positive Outcomes Wastes time, energy, resources Less information sharing, productivity More organizational politics More job dissatisfaction, turnover, stress Weakens team cohesion (when conflict is within team) Fuller debate of decision choices Decision assumptions are questioned Potentially generates more creative ideas Improves responsiveness to external environment Increases team cohesion (conflict with other teams)

Emerging View: Task Versus Relationship Conflict Task (constructive) conflict Parties focus on the issue, respect people with other points of view Try to understand logic/assumptions of each position Relationship conflict Focus on personal characteristics (not issues) as the source of conflict Try to undermine each other’s worth/competence Accompanied by strong negative emotions

Minimizing Relationship Conflict Goal: encourage task conflict, minimize relationship conflict Problem: relationship conflict often develops when engaging in task conflict Three conditions that minimize relationship conflict during task conflict: Emotional intelligence Cohesive team Supportive team norms

Conflict Perceptions and The Conflict Process Sources of Conflict Conflict Perceptions and Emotions Manifest Conflict Conflict Outcomes Conflict Escalation Cycle

Structural Sources of Conflict Incompatible Goals One party’s goals perceived to interfere with other’s goals Differentiation Different values/beliefs Explains cross-cultural, generational, merger conflict Interdependence Conflict increases with interdependence Parties more likely to interfere with each other

Structural Sources of Conflict Scarce Resources Motivates competition for the resource Ambiguous Rules Creates uncertainty, threatens goals Encourages political behavior Communication Problems Rely on stereotypes Less motivation to communicate Arrogant language escalates conflict

Five Conflict Handling Styles High Forcing Problem-solving Assertiveness Compromising Avoiding Yielding Low High Cooperativeness

Conflict Handling Contingencies Problem solving Best when: Interests are not perfectly opposing Parties have trust/openness Issues are complex Problem: other party may use information to its advantage Forcing you have a deep conviction about your position quick resolution required other party would take advantage of cooperation Problems: relationship conflict, long-term relations

Conflict Handling Contingencies Avoiding Best when: conflict is emotionally-charged (relationship conflict) conflict resolution cost is higher than benefits Problems: doesn’t resolve conflict; causes frustration Yielding other party has much more power issue is much less important to you than other party value/logic of your position is imperfect Problems: increases other’s expectations; imperfect solution

Conflict Handling Contingencies Compromising Best when: Parties have equal power Quick solution is required Parties lack trust/openness Problem: Sub-optimal solution where mutual gains are possible

Conflict and Negotiation in the Workplace 11-35

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

Shared Leadership The view that leadership is a role, not a position assigned to one person Employees lead each other – e.g., champion ideas Shared leadership flourishes where: Formal leaders are willing to delegate power Collaborative (not competitive) culture Employees develop effective influence skills Distributed leadership…

Transformational Leadership Model Build commitment to the vision Develop/communicate a strategic vision Elements of Transformational Leadership Encourage experimentation Model the vision

Managerial Leadership Definition: Daily activities that support and guide the performance and well-being of individual employees and the work unit to support current objectives and practices Managerial leadership differs from transformational leadership Assumes environment is stable (vs dynamic) Micro-focused (vs macro-focused) Transformational and managerial leadership are interdependent

Task vs People Styles of Leadership 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 Both styles necessary, but different effects

Servant Leadership Leaders serve followers toward their need fulfillment, development, growth Described as selfless, egalitarian, humble, nurturing, empathetic, and ethical coaches Servant leader characteristics: Natural calling to serve others Humble, egalitarian, accepting relationship Ethical decisions and actions

Other Managerial Leadership Theories Situational Leadership Model Four styles: telling, selling, participating, delegating Best style depends on follower ability/motivation Popular model, but lacks research support

Authentic Leadership Know Yourself 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

Gender Issues in Leadership Male/female leaders have similar task- and people- oriented leadership Female leaders use more participative leadership Women rated higher on emerging leadership styles

Leadership in Organizational Settings 12-45