Business Leadership and Organizational Behavior Power & Politics Craig W. Fontaine, Ph.D.

Leadership and Power  Leadership –Focuses on goal achievement. –Requires goal compatibility with followers. –Focuses influence downward.  Power –Used as a means for achieving goals. –Requires follower dependency. –Used to gain lateral and upward influence.

A Definition of Power A B

Bases of Power – Formal (3) This is perhaps the most Potent Source of Power !

Bases of Power - Formal coercive power A power base dependent on fear. Managers have coercive power through their authority to reprimand, demote, and fire employees. reward power Compliance achieved based on ability to distribute rewards that others view as valuable.

Bases of Power - Personal Power

12-7  Personal sources of power are most effective  Expert and referent power are positively related to performance and commitment  Reward and legitimate power are unrelated  Coercive power is negatively related to employee satisfaction and commitment Which Power Bases are Most Effective?

Lateral relationships (people & departments) Amount of power is dependent on strategic positioning: Dependency Financial contribution Centrality Discretion Visibility Horizontal Sources of Power are Important

Power Tactics

12-10 Coalitions  An informal group bound together by the active pursuit of a single issue  Coalitions in organization often seek to maximize their size  More coalitions will likely be created when there is a great deal of task and resource interdependence  The more routine the task of a group, the greater likelihood that coalitions will form

Network Level Coalition Level Individual Level Distinguishing Characteristics Cooperative pursuit of general self- interests Cooperative pursuit of group interests in specific issues Individual pursuit of general self- interests Levels of Political Action in Organizations

12-12 Effectiveness of Influence Tactics  Rational persuasion, inspirational appeals and consultation are most effective  Pressure is least effective  Using more than one compatible tactic at the same time or sequentially increases chance of success  “Softer” tactics work better than “harder” tactics

Use of Power Tactics: From Most to Least Popular

Frequency of Outcomes for the Use of Political Influence Tactics Outcomes Influence Tactic Resistance Compliance Commitment 1. Consultation18%27%55% 2. Rational persuasion Inspiration Ingratiation Coalition Pressure Legitimating Personal appeals Exchange244135

Power and Political Tactics Tactics for Increasing the Power Base Political Tactics for Using Power Tactics for Enhancing Collaboration 1. Enter areas of high uncertainty 1. Build coalitions1. Create integration devices 2. Create dependencies2. Expand networks2. Use confrontation and negotiation 3. Provide resources3. Control decision premises 3. Schedule inter-group consultation 4. Satisfy strategic contingencies 4. Enhance legitimacy and expertise 4. Practice member rotation 5. Make preferences explicit, but keep power implicit 5. Create super ordinate goals

Politics: Power in Action

12-17 Factors Contributing to Political Behavior  Individual factors: –High self-monitors –Internal locus of control –High need for power –Large investment in the organization –More perceived job alternatives –High expectations of success

12-18 Factors Contributing to Political Behavior  Organizational factors: –Existing pattern of resources is changing –Opportunity for promotion –Subjective performance criteria –Low trust –Role ambiguity –High pressure for performance –Politicking by top management

Politics Is in the Eye of the Beholder

Factors That Influence Political Behaviors

Employee Responses to Organizational Politics

Defensive Behaviors Avoiding Action : Overconforming Buck passing Playing dumb Stretching Stalling Avoiding Action : Overconforming Buck passing Playing dumb Stretching Stalling Avoiding Blame : Buffing Playing safe Justifying Scapegoating Misrepresenting Avoiding Blame : Buffing Playing safe Justifying Scapegoating Misrepresenting Avoiding Change : Prevention Self-protection Avoiding Change : Prevention Self-protection

12-23 Implications for Managers  Accept the political nature of organizations  Increase power by: –Acquire the bases of power that are most useful (expert, referent) –Use the power tactics that are most effective (consultation, inspirational appeal) –Avoid tactics that tend to backfire (coercion) –Empowering others

The Evolution of Power None High Degree of Empowerment DominationConsultationParticipationDelegation Influence Sharing Manager/leader consults followers when making decisions Power Sharing Manager/leader and followers jointly make decisions Power Distribution Followers are granted authority to make decisions Authoritarian Power Manager/leader impose decisions

12-25 Persuading Others (another author’s view) Liking - Liking - people tend to like those who like them Reciprocity - Reciprocity - the belief that both good and bad deeds should be repaid in kind—virtually universal Social proof - Social proof - people tend to follow the lead of those most like themselves Consistency - Consistency - people tend to do what they are personally committed to do Authority - Authority - people tend to defer to and respect credible experts Scarcity - Scarcity - people want items, information, and opportunities that have limited availability

Are You Politically Naïve, Sensible, or a Political Shark? Bully; misuse information, cultivate and use “friends” and other contacts Manipulate; use fraud and deceit when necessary Self-serving and predatory Politics is an opportunity Sharks Negotiate, bargain Network; expand connections; use system to give and receive favors Further departmental goals Politics is necessary Sensible None—the truth will win out Tell it like it is Avoid it at all costs Politics is unpleasant Naïve Favorite tactics Techniques Intent Underlying attitude Characteristics

Is Political Action Ethical? UtilitarianismUtilitarianismRightsRightsJusticeJustice

Keeping Organizational Politics Reasonable  Screen out overly political individuals at hiring time  Create and open-book management system  Establish formal conflict resolution and grievance processes  As an ethics filter, do only what you would feel comfortable doing on national television  Publicly recognize and reward people who get real results without political games