1. M A N A G E M E N T M A N A G E M E N T 1 st E D I T I O N 1 st E D I T I O N Gulati | Mayo | Nohria Gulati | Mayo | Nohria Chapter 14 Chapter 14 P OWER AND INFLUENCE P OWER AND INFLUENCE INDIVIDUAL PERSPECTIVE ©South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook

2. Learning Objectives Explain how leaders use power and influence to realize an organization’s vision and achieve strategic goalsExplain how leaders use power and influence to realize an organization’s vision and achieve strategic goals Describe the various forms of interpersonal power and how they are developed and usedDescribe the various forms of interpersonal power and how they are developed and used Outline how power is wielded at different levels in an organization and how individuals react to the exercise of powerOutline how power is wielded at different levels in an organization and how individuals react to the exercise of power Describe how interdependence, resource scarcity, and disagreement on priorities can escalate organizational conflict and heighten the need for exercising powerDescribe how interdependence, resource scarcity, and disagreement on priorities can escalate organizational conflict and heighten the need for exercising power Outline the different influence styles and explain how these styles should be applied to specific situational contextsOutline the different influence styles and explain how these styles should be applied to specific situational contexts © South-Western, a part of Cengage Learning14–2

3. Introduction: Got Power? Have Influence? © South-Western, a part of Cengage Learning14–3 The potential of one individual or a group to influence the behavior, thinking, or attitudes of another individual or group Power The means or vehicle by which power is exercised Influence

4. Forms of Interpersonal Power © South-Western, a part of Cengage Learning14–4 Power that is based on the formal position an individual holds in an organization Legitimate power Power that gives someone the ability to reward another for his or her behavior Reward power Power that gives someone the ability to punish another for his or her behavior Coercive power Power based on an individual having specialized knowledge or skills Expert power Power based on the personal liking an individual has for another Referent power

5. Sources of Individual’s Influence in Organization © South-Western, a part of Cengage Learning14–5 Power that comes from an individual’s formal place within an organization’s structure Power that comes from an individual’s formal place within an organization’s structure Positional power Power that is obtained from having personal attributes that others desire Personal power Power gained from the networks to which an individual belongs, the people in those networks, and the strength of the relationships within the networks Relational power

6. Relational Power CentralityCentrality –Refers to where one is located in the network –Affects an individual’s ability to be influential Breadth - Types of networks and the diversity of contacts within those networksBreadth - Types of networks and the diversity of contacts within those networks –Task networks - Exchange of specific job-related resources –Career networks - People who provide career direction and guidance, exposure to top management © South-Western, a part of Cengage Learning14–6

7. Relational Power –Social networks - Mobilize resources, transmit information, and provide peer coaching Depth - Strength of a person’s networkDepth - Strength of a person’s network Portability of relationshipsPortability of relationships © South-Western, a part of Cengage Learning14–7

8. Power and Politics in Organizations © South-Western, a part of Cengage Learning14–8 Determine the distribution of resources Control decision criteria Have broad access Maintain centrality in the organization Top Executives: Power at the Top

9. Reactions to Power © South-Western, a part of Cengage Learning14–9 Resistance Commitment Compliance Employee reactions to the exercise of power

10. EmpowermentEmpowerment © South-Western, a part of Cengage Learning14–10 The process of sharing power with subordinates and pushing decision making and implementation to the lowest possible level, increasing the influence and autonomy of all employees

11. Power and Conflict © South-Western, a part of Cengage Learning14–11 Centralized organizational structure High uncertainty and chaos Unequal distribution of power Factors that can lead to conflict and competition Competitive organizational culture Hiring practices based on personal relationships Short-term rewards

12. InterdependenceInterdependence © South-Western, a part of Cengage Learning14–12 Resource scarcity Disagreement Factors affecting dependent relationships Dependence asymmetry Level of importance Joint dependence

13. InterdependenceInterdependence © South-Western, a part of Cengage Learning14–13 A phenomenon that exists when a firm is more dependent on a business partner than a business partner is on a firm Dependence asymmetry A phenomenon that exists when two firms are equally dependent on the other Joint dependence The lack of sufficient resources, such as money and staff that forces individuals in organizations to make critical decisions on how to best allocate the available resources throughout the company Resource scarcity A quality that exists whenever one individual requires another individual’s assistance to achieve a goal Interdependence

14. Using Influence © South-Western, a part of Cengage Learning14–14 Assess performance Use specific influence principles Choose an influence style and influence tactics Build sources of interpersonal power Steps in exercising power through influence: 1 1 2 2 3 3 4 4

15. Law of Reciprocity © South-Western, a part of Cengage Learning 14–15 The idea that people should repay in the future what another person has done for them in the present

16. Organizational Considerations © South-Western, a part of Cengage Learning14–16 Analyze the broader context Determine sources of power How to use power and influence achieve goals: Identify interdependencies Analyze differences in goals, values, stakes, and working styles Analyze differences in goals, values, stakes, and working styles Periodically update the diagnosis 1 2 3 4 5

17. CoalitionsCoalitions © South-Western, a part of Cengage Learning 14–17 Individuals and/or groups that have common interests and perspectives

18. KEY TERMS © South-Western, a part of Cengage Learning14–18 Coalitions Coercive power Dependence asymmetry Empowerment Expert power InfluenceInterdependence Joint dependence Legitimate power Personal power Positional power Power Law of reciprocity Referent power Relational power Resource scarcity Reward power