1. © The McGraw-Hill Companies, 2005 Management & Organisational Behaviour 2e Chapter 13 Power and Politics

2. © The McGraw-Hill Companies, 2005 1 Learning Outcomes After studying this chapter you will be able to: Understand why power is useful in organisations. Describe forms of power originating from position, personal characteristics, and situational forces. Explain how social networks create opportunities for managers to establish power. Identify situational factors that affect power and explain why power is context specific.

3. © The McGraw-Hill Companies, 2005 2 Learning Outcomes (cont.) Identify tactics for developing political power. Differentiate among moral, immoral, and amoral modes of handling power. Describe the differences among four forms of political manipulation: persuasion, inducement, obligation, and coercion. Explain why centralisation diminishes political behaviour.

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5. 4 Power Has Many Definitions that Imply the Same Meaning The ability to change the behaviour of others to perform actions that they might not otherwise perform. The ability of A to alter circumstances impacting on B so that B does what A wants.

6. © The McGraw-Hill Companies, 2005 5 Power Definitions (cont.) The potential ability of a person or group to influence another person or group. The capacity to influence others.

7. © The McGraw-Hill Companies, 2005 6 Influence The ability to alter another person’s perceptions of the situation. Process through which a person attempts to extract compliance from the other. Power stems from specific sources or foundations whereas influence relies on tactics.

8. © The McGraw-Hill Companies, 2005 7 Situational Forces Coercion Information Access Association Access Exhibit 13-1: Sources of Power Organisational Position Formal Authority Control of Rewards Control of resources Personal Behaviour Expertise Personal Respect Reciprocal Alliance Empowerment Practices

9. © The McGraw-Hill Companies, 2005 8 Positional Basis of Power Legitimate authority The result of position in organisational hierarchy Reward capacity Coercive capacity Remember: Commanding obedience can be risky if your performance depends on the creative action or expertise of your subordinates

10. © The McGraw-Hill Companies, 2005 9 Authority Based on a position in the organisation that includes the right to influence in the job description. The right to change or direct others – example your teacher. Unlike power, authority includes the notion of legitimacy.

11. © The McGraw-Hill Companies, 2005 10 Personal Basis of Power Expert power Referent power Remember: To retain referent power, holders must maintain their exemplary image and live up to others’ expectations

12. © The McGraw-Hill Companies, 2005 11 Situational Factors that Affect Power Coercive power based on ability to withhold desires resources or consequences. Information power based on the ability to control access to needed information. Association power based on influence with a person who holds power.

13. © The McGraw-Hill Companies, 2005 12 How Social Networks Affect Power Power acceptance is a Western belief. Power diffusion is an Eastern practice. Maintenance of a central position can result in enhanced power.

14. © The McGraw-Hill Companies, 2005 13 Situational and Personal Factors that Affect Power Specialisation and task importance Perceptions of competence Dependence of others Ambiguous roles Organisational uncertainty Organisational culture Resource scarcity

15. © The McGraw-Hill Companies, 2005 14 Possible Outcomes of Power or Influence Attempts Commitment – a strong positive response. Compliance – acceptance of and enactment of influence attempt. Resistance – a strong negative response.

16. © The McGraw-Hill Companies, 2005 15 Recipe of Organisational Power Interpersonal Sources of Power - Reward - Coercive - Legitimate - Expert - Referent Add Effective/Ineffective Application of Power - Relationships among power bases - Selection of influence strategies … and the result: Influence over others! Structural Sources of Power - Knowledge - Resources - Decision Making - Networks

17. © The McGraw-Hill Companies, 2005 16 Referent Power CommitmentLikely - If request is believed to be important to leader Compliance Possible - If request is perceived to be unimportant to leader ResistancePossible - If request is for something that will bring harm to leader

18. © The McGraw-Hill Companies, 2005 17 Expert Power CommitmentLikely - If request is persuasive and subordinates share leader’s goals. CompliancePossible - If request is persuasive but subordinates are apathetic about task goals. ResistancePossible - If arrogant demands are made or request does not appear proper.

19. © The McGraw-Hill Companies, 2005 18 Legitimate Power CommitmentPossible - If request is polite and very appropriate. ComplianceLikely - If request or order is seen as legitimate. ResistancePossible - If arrogant demands are made.

20. © The McGraw-Hill Companies, 2005 19 Reward Power CommitmentPossible - If used in a subtle way. ComplianceLikely - If used in a mechanical, personal way. ResistancePossible - If used in a manipulative, arrogant way.

21. © The McGraw-Hill Companies, 2005 20 Coercive Power CommitmentVery unlikely CompliancePossible - If used in a non- punitive way. ResistanceLikely - If used in a hostile or manipulative way.

22. © The McGraw-Hill Companies, 2005 21 Power Needs Power motive - the learned desire to have strong influence or control over others. To determine your power motive, ask yourself: Do you like to take control? Do you like to make decisions?

23. © The McGraw-Hill Companies, 2005 22 Power Motive The power motive has been found to be predictive of a manager’s probability of rising through the hierarchy in bureaucratic organisations.

24. © The McGraw-Hill Companies, 2005 23 Politics Those activities taken within an organisation to: acquire, develop, and use power and other resources to obtain one’s preferred outcome in a situation where there is uncertainty or disagreement about choices.

25. © The McGraw-Hill Companies, 2005 24 Exhibit 13-3: Conditions that Set the Stage for Political Behaviour Subsystems Interdependence Incompatible Goals Resource Scarcity Conflict Importance of the Decision Degree of Power Dispersion Political Behaviour

26. © The McGraw-Hill Companies, 2005 25 Reasons for Political Behaviour Ambitious goals Organisational units face differentiated technological and external environments. Excessive focus on individual rather than group or organisational performance. There is strong competition among employees for scarce resources. Decision making procedures and performance criteria are complex and uncertain.

27. © The McGraw-Hill Companies, 2005 26 Probability of Political Behaviour High Competition among Employees Low LowHigh Complexity and Uncertainty

28. © The McGraw-Hill Companies, 2005 27 Exhibit 13-4: Different Forms of Political Manipulation Inducement Coercion Persuasion Obligation Basis of Manipulation Type of Manipul ation Positive Negative PowerInfluence

29. © The McGraw-Hill Companies, 2005 28 Political Tactics Ingratiating Forming Coalition and Networks Impression Management Information Management Pursue Responsibility and Legitimate Power

30. © The McGraw-Hill Companies, 2005 29 Political Tactics are Learned Skills Maintain alliances with powerful people. Avoid alienation. Use information as currency. Withdraw from petty disputes. Avoid decisive engagement. Avoid preliminary disclosure of preferences. Make a quick but successful showing. Collect IOUs. Exploit possible negative outcomes. Divide & rule.

31. © The McGraw-Hill Companies, 2005 30 Influence Tactics The Police Rational Persuasion – use logic to persuade. Inspirational Appeals – appeal towards values or self-confidence. Consultation – seek help in a deal. Integration – make yourself cool before asking for info.

32. © The McGraw-Hill Companies, 2005 31 Influence Tactics The Police (cont.) Personal Appeals – show friendship. Exchange – exchange of favours to get result. Coalition Tactics – get support of others to influence target. Legitimating Tactics – tell them you have authority to carry out actions. Pressure – force ‘em to talk.

33. © The McGraw-Hill Companies, 2005 32 Exhibit 13-5: Three Standards of Managerial Ethics Moral Management Amoral Management Immoral Management Ethical Standards Treat others fairly and comply with spirit as well as letter of the law. Do not weigh ethical considerations in decisions;stay close to the letter of the law. Actively oppose ethical principles; seek to get around the law.

34. © The McGraw-Hill Companies, 2005 33 Ethics of a Political Action (A Questionnaire) Please answer the following questions: Is the political action motivated by self- serving interests outside of the group’s goals? Does the political action respect the rights of the affected? Is the political activity equal and fair? If you answered “No” to any of these questions, then this action is UNETHICAL!

35. © The McGraw-Hill Companies, 2005 34 Summary Power is the basic force managers use to change organisational realities by getting others to do what they want done. Power can arise from a person’s position (as do formal authority and reward power) or personal behaviour (as do expert and referent power). However, situational forces allow other power possibilities (such as coercion and access to information), which affect the degree to which a person can alter the realities of others and thus exercise power.

36. © The McGraw-Hill Companies, 2005 35 Summary continued 1 Some people’s socialised power needs energise them to act in keeping with organisational purposes. Others with high personal power needs have more self-serving aims. Some seek to avoid power altogether, not wanting the responsibility and potential conflict often associated with it. Organisational politics occur when people or groups seek to alter resources or outcomes in their favour. Political behaviours increase when conditions are uncertain, complex and competitive. Political manipulation can take the form of inducement, persuasion, obligation or coercion.

37. © The McGraw-Hill Companies, 2005 36 Summary continued 2 Political tactics such as maintaining coalitions with powerful people, using information as currency, avoiding premature disclosure of preferences, and collecting IOUs are learned skills. However, the practice of being political or exercising power does not need to be immoral or even amoral.

38. © The McGraw-Hill Companies, 2005 37 Summary continued 2 Moral managers act fairly and legally to do that which is ethically right in the service of the organisation. Across nations as well as organisations, political activities abound when power is disbursed and multiple interest groups jockey for position. Tightly centralised power limits people’s freedom to act politically.

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