 Learning Objectives:  Understand what makes power dynamics important in organisations  Explain the nature of Power  Indian insights: Discuss basic explanations by , the master strategic counselor  Understand Power as a dynamic process  Discuss various sources of power at personal level and unit level within an organisation  Understand the concept of organisational politics  Discuss how managers deal with power and politics in organisations

 Power is the capacity to influence another person or a group to accept one’s ideas or plan,it is the capacity of some persons to produce intended and foreseen effects on others  Power causes cooperation among people who individually can make little difference, so they join hands and form alliances or coalitions, there can be power struggle in the same organisation where people compete for greater influence over processes, decisions and consequences  There is no guarantee that they will not work counter to the interests of the organisation, it is also not true that competition, conflict and rivalry over greater influence are bad for the organisation

 Power requires dependency of someone else which is reinforced by assumptions and norms  Power: A Static, Structural Element or a Dynamic process?  POWER (A OVER B) = DEPENDENCE (B ON A)  Power involves a process of influence that is shaped by the perception and motivation of the target with respect to the action of the agent, in a context  Is power positive or negative?  When we examine that power can generate influence and give access to resources, it appears more like a potential in nature, whether it is positive or negative, can only be determined from observing how it is deployed

 Kautilya (also known as Acharya Vishnugupt or Chanakya), a renowned king maker, was a noted advisor to the King Chandragupta Maurya and his writings compiled in 15 books together as “Arthshastra” are considered one of the greatest expositions on the art of governance, the duties of the ruler and various functionaries of the government, the business law, diplomatic matters and so on  According to him  Power is a relative concept  Comparison of power possessed can determine one’s status as superior, equal or inferior  Power is the strength and ability required to achieve ends. It is useful for generating force that moves others and leads to success  Power can be augmented

 Position power ▪ Job Title or designation ▪ Job Description ▪ Prescribed responsibilities  Personal power ▪ Knowledge ▪ Expert ▪ Information ▪ Tradition ▪ Personality ▪ Charisma ▪ Reputation ▪ Professional Credibility ▪ Other’s Support ▪ Political Access ▪ Staff Support

 Sources of Departmental Power  Ability to Cope with Uncertainty  Centrality and Non- substitutability  Sources of Organisational Power  Coercive  Utilitarian  Normative

Directions of flow of power in various types of organisational structures:  Bureaucratic Model  Downward since hierarchical  Upward power: generally seen as disruptive, may be tolerated if displayed in acceptable style  Lateral or side-ways power is almost not considered  Collegial Model  Upward power is encouraged  Structural power redistributed through provision of profit-sharing, right/down -sizing and cross-functional teams  The need for sideways power becomes insignificant  Downward power is used where peer pressure does not work  Political Model  Since power is accepted to be everywhere, use of sideways, upward as well as downward power is considered legitimate  Sideways power is needed for gaining approval / cooperation, competing for resources outside the chain of formal authority  Change increases power-play, but this is not always because people are greedy or corrupt. People differ from one another and resources are not unlimited / easily available

 Using Power: The Link to Success  Do not use a single strategy for influencing others  Chose a strategy for which you have a strong, matching power base  Use multiple powerbases and a cluster of strategies for creating the desired influence.  Situational factors: ▪ Power bases of others ▪ Timing ▪ Personal Style  What style of influence works for the Indian Organisations  The amount of authority of the superior is determined by the rank and span of control, but the type of authority decided by the legitimizing principles that justify action  A powerful person can exert influence as long as the role relationship legitimizes the superior’s demands and the subordinate, accepting the norms and beliefs that support the legitimacy of those demands

 Politics involves  Acquiring, developing, and using power to achieve one's objectives  When change threatens the power bases and balance of relative power in an organisation, politics is highly likely to be used to maintain balance  Political players are likely to pursue their own agenda or objectives in order to preserve self interest  Self interest may be protected even if those interests or the means to attain those are not approved by the organisation  Politics as a defense routine  Individuals and their coalitions resort to politics in order to enhance their survival and personal well being within organisations

 The lowest level of maneuvering is a simple political awareness of how people feel about a relatively minor situation – for example, starting a new procedure in one’s department  A somewhat higher level of political maneuvering - political facilitation - calls for direct interaction with those who may help or hinder the change  The level of political maneuvering organisation-wide change is also called political intervention