© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Power, Authority & Organizational Politics OBJECTIVES:  TO UNDERSTAND THE NATURE OF POWER AND ORGANIZATIONAL POLITICS  DESCRIBE THE SOURCES OF POWER IN THE ORGANIZATION  DISCUSS THE USE OF POWER IN A MANAGERIAL WORK  OUR FOCUS IS AN ORGANIZATION IN THIS COURSE (not politics in general)

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 POWER: THE ABILITY OF ONE PERSON OR GROUP TO CAUSE ANOTHER PERSON OR GROUP TO DO SOMETHING THAT THEY OTHERWISE MIGHT NOT HAVE DONE. INDIVIDUAL POWER GROUP INDIVIDUAL ACTIVITY GROUP AUTHORITY: THE POWER THAT ENABLES ONE PERSON TO HOLD ANOTHER PERSON ACCOUNTABLE FOR HIS OR HER ACTIONS. (AUTHORITY = PRÁVOMOC in Slovak)

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 ORGANIZATIONAL POLITICS: ACTIVITIES IN WHICH MANAGERS ENGAGE TO INCREASE THEIR POWER AND TO PURSUE GOALS THAT FAVOR THEIR INDNIDUAL AND GROUP INTERESTS.

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 A.FOR THE EFFICIENT FUNCTIONING OF ORGANIZATIONS B.AN ORGANIZATION’S POWER STRUCTURE - PARTIALLY REVEALED BY THE ORGANIZATIONAL CHART - DERIVES FROM THE FORMAL AND INFORMAL SOURCES OF POWER THAT MANAGERS, FUNCTI0NS, AND DIVISIONS POSSESS, WHICH DETERMINES HOW THE ORGANIZATION MAKES DECISIONS AND WHOSE INTERESTS THOSE DECISIONS FAVOR Why is Power Necessary?

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 How Power & Org. Politics Can Help an Organization  1. MANAGERS CAN USE POWER TO CONTROL PEOPLE AND ANOTHER RESOURCES SO THAT THEY COOPERATE AND HELP TO ACHIEVE AN ORGANIZATION’S CURRENT GOALS  2. MANAGERS CAN ALSO USE POWER TO ENGAGE IN POLITICS AND INFLUENCE THE DECISION-MAKING PROCESS TO HELP TO PROMOTE NEW, MORE APPROPRIATE ORGANIZATIONAL GOALS

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Can Power Harm an Organization?  POWER - HUNGRY MANAGERS ARE PEOPLE WHO MIGHT USE POWER TO HARM THE ORGANIZATION (to use power for personal advantage)

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Sources of Individual Power INDIVIDUAL POWER FORMAL POWER: ( OR POSITION POWER) LEGITIMATE REWARD COERCIVE INFORMATION INFORMAL POWER: ( OR PERSONAL POWER) EXPERT REFERENT CHARISMATIC

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 IS POWER THAT ORIGINATES FROM A PERSON’S POSITION IN AN ORGANIZATION Formal Individual Power A.LEGITIMATE POWER  THE POWER TO CONTROL AND USE ORGANIZATIZATIONAL RESOURCES TO ACCOMPLISH ORGANIZATIONAL GOALS  LEGITIMATE POWER AND FORMAL AUTHORITY ARE ONE AND THE SAME. B.REWARD POWER  THE POWER TO GIVE PAY RAISES, PROMOTION, PRAISE, INTERESTING PROJECTS, AND OTHER REWARDS TO SUBORDINATES

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Formal Individual Power C.COERCIVE POWER  THE POWER TO GIVE OR WITHOLD PUNISHMENT D.INFORMATION POWER  THE POWER THAT STEMS FROM ACCESS TO AND CONTROL OVER INFORMATION QUESTION FOR DISCUSSION: THE BOSS’S SECRETARY IS TYPICALLY VERY POWERFUL EVEN IF HE (OR SHE) DOESN’T HAVE A FORMAL AUTHORITY. WHY IS IT SO?

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 IS POWER THAT STEMS FROM PERSONAL CHARACTERISTICS SUCH AS PERSONALITY, SKILLS, AND CAPABILITIES Informal Individual Power A.EXPERT POWER  THE POWER THAT STEMS FROM SUPERIOR ABILITY OR EXPERTISE. B.REFERENT POWER  INFORMAL POWER THAT STEMS FROM BEING LIKED, ADMIRED, AND RESPECTED

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Formal Individual Power C.CHARISMATIC POWER  AN INTENSE FORM OF REFERENT POWER THAT STEMS FROM AN INDNIDUAL‘S PERSONALITY OR PHYSICAL OR OTHER ABILITIES, WHICH INDUCE OTHERS TO BELIEVE IN AND FOLLOW THAT PERSON QUESTION FOR DISCUSSION: WHY ADVERTISERS PAY FAMOUS ATHLETES TO ENDORSE GOODS AND SERVICES? IS THERE SOME RELATIONSHIP WITH SOME SOURCE OF POWER?

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Functional Power THE POWER THAT IS POSSESSED BY SOME ORGANIZATIONAL UNIT AN ORGANIZATIONAL UNIT BECOMES POWERFUL WHEN THE TASKS THAT IT PERFORMS GIVE IT THE ABILITY TO CONTROL THE BEHAVIOR OF OTHER UNITS, TO MAKE THEM DEPENDENT ON IT, AND THUS TO INCREASE ITS SHARE OF ORGANIZATIONAL RESOURCES.

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Functional Power ABILITY TO CONTROL UNCERTAIN CONTINGENCIES IRREPLACEABILITY CENTRALITY (THE CENTRE OF INFORMATION) ABILITY TO CONTROL AND GENERATE RESOURCES FUNCTIONAL POWER

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 The Use of Power WHY MANAGERS ENGAGE IN ORGANIZATIONAL POLITICS? THEIR JOB IS A "SCARCE RESOURCE" (The higher a manager rises in a hierarchy, the more difficult it is to continue to rise because fewer and fewer jobs are available at the upper levels. To compete for these jobs and to increase their chance of promotion and their share of organizational resources, managers try to increase their power and influence).

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Tactics for Increasing Individual Power A.TAPPING THE SOURCES OF POWER  MAKE THEMSELVES IRREPLACEABLE  CONTROL CRUCIAL CONTINGENCY  MAKE THEMSELVES MORE CENTRAL B.RECOGNIZING WHO HAS POWER THERE ARE FIVE FACTORS TO ASSESS IN ORDER TO DETERMINE THE RELATIVE POWER OF DIFFERENT MANAGERS IN AN ORGAIZATION:  SOURCES OF POWER  CONSEQUENCES OF POWER  SYMBOLS OF POWER (for example titles)  PERSONAL REPUTATION  REPRESENTATION INDICATORS (membership in committees)

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Tactics for Increasing Individual Power C.CONTROLLING THE AGENDA  SOME POWERFUL MANAGERS, FOR EXAMPLE, CAN PREVENT FORMAL DISCUSSION OF ANY ISSUE THEY DO NOT SUPPORT BY NOT PUTTING THE ISSUE ON THE AGENDA D.BRINGING IN AN OUTSIDE EXPERT  A PERSON THAT IS USALLY WELL-KNOWN TO THE MANAGER E.BUILDING COALITIONS AND ALLIANCES

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 PERSONAL CHARACTERISTICS THAT SUPPORT PERSONAL POWER OF A MANAGER A.KNOWLEDGE AND INFORMATION B.PERSONAL ATTRACTIVENESS  EFFORT

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 ACCEPTANCE OF AUTHORITY  ZONE OF INDIFFERENCE IS THE RANGE OF AUTHORITATIVE REQUESTS TO WHICH A SUBORDINATE IS WILLING TO RESPOND WITHOUT SUBJECTING THE DIRECTIVES TO CRITICAL EVALUATION OR JUDGMENT.  ORDERS FALLING OUTSIDE THE ZONE OF INDIFFERENCE ARE NOT CONSIDERED LEGITIMATE UNDER TERMS OF THE PSYCHOLOGICAL CONTRACT.  PSYCHOLOGICAL CONTRACT – IS AN UNWRITTEN AGREEMENT THAT SETS OUT WHAT MANAGEMENT EXPECTS FROM THE EMPLOYEE, AND VICE-VERSA.

© J. Rudy, Organizational Behavior, FMCU, Fall 2007 Class Discussion OF THE SEVEN SOURCES OF INDIVI­DUAL POWER (LEGITIMATE, REWARD, COERCIVE, INFORMATION, EXPERT, REFERENT AND CHARISMATIC) WHICH INFLUENCES INDIVIDUALS IN THE CLASS? WHY?