Power..Meaning

2. Power..Meaning • Refers to a capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes The definition implies a potential that need not be actualized to be effective and a dependency relationship.

3. Forbes List of Powerful People • Barak Obama, 1 • Angela Merkel(Mrs), Chanceller-Germany, 2 • Vadimir Putin, President- Russia, 3 • Bill Gates, Co Chairman, Bill & Milinda Gates Foundation • Pope Benedict XVI, Pope – Roman Catholic • Ben Bernake, Chairman-Federal Reserve, USA • Xi Jinping, Gen Secy, Communist Party, China, 9 • David Cameroon, PM, UK, 10 • Sonia Gandhi(Mrs), 12 • Warren Buffet, Chairman, Berkshire Hathway,15 • Michael Duke, Wamart Stores, 17 • Lary Page, CEO, Google, 20 • Jeffrey Immelt, GE, 24 • Mark Zuckrberg, CEO, Facebook, 25 • Rupert Murdoch, CEO • Timothy Cook, Apple Ceo, 35 • MukeshAmbani, Chairman< reliance, 37 • Aki Toyoda, CEO-Toyota Motors, 43 • LakshmiMittal, CEO, ArcelorMittal • Bill Clinton, Chairman Global Initiative, 50

4. GD & Questions to students-Forbes List of Powerful People-Analysis • Women in list of 50 • Political Leaders wield power followed by Business Leaders • More Indians in the list. • It is not only position or money, it is also about other things – Pope, Bill Clintonb Bill Milinda Gates Foundation

5. Sources of Power • Formal power • Coercive power • Reward power • Legitimate power • Personal power • Expert power • Referent power • Dependency – The Key to power • Importance • Scarcity. • Power tactics

6. Sources of Power • Formal power • Coercive power; Fear of negative result. Dictators thrive on this. Fear of dismissal in organization if I value or depend on my job • Reward power – opposite of fear, Reward. • Legitimate power- source of power is formal position in the organization. • Personal power • Expert power – some body has influence because his expertise is valuable for organization • Referent power – people like, respect and admire stars, hence they exercise power over people as people want to please the stars. • Dependency – The Key to power • Importance • Scarcity.

7. Power & Poilitics Examples • Resignation(poilitics) before increment. But you can not resign if you are not good performer(power)-it can backfire. • Do not mess up with this CEO p169 • Jkpm expert workmen • Referent power-advertisement by Sharukh • Gandhi.. What was his source of power • Effective ceo use both position and personal power • Have good relation with boss of Boss. Lesson for MT from campus. • Skm opposed to mckinsey • Sr leader want good people to leave orgn • Vote bank politics • British – divide-rule • USA attacked Sadam/iraq because of nuclear weapon with Iraq. What was real reason?

8. Power Examples • Resignation(poilitics) before increment. But you can not resign if you are not good performer(power)-it can backfire. • Do not mess up with this CEO p169 • Jkpm expert workmen • Referent power-advertisement by Sharukh • Gandhi.. What was his source of power • Effective ceo use both position and personal power • Have good relation with boss of Boss. Lesson for MT from campus. • Skm opposed to mckinsey • Sr leader want good people to leave orgn • Vote bank politics • British – divide-rule • USA attacked Sadam/iraq because of nuclear weapon with Iraq. What was real reason?

9. Sources of Power • Power Tactics (upward, downward & lateral influence) • Legitimacy • Rational persuasion. • Inspirational appeals. • Consultation. • Exchange. • Personal appeal. • Pressure. • Coalitions..

10. Politics – Power in Action • When people or employees in organization convert their power in to action, we describe them as being engaged in politics. Those with good political skill have the ability to use their bases of power effectively • Power & Politics at it’s best; The case of Indira Gandhi & Indo Pak War • Is politics rare in organizations?

11. The case of Indira Gandhi & Indo Pak War • Unrest & popular uprising in Bangladesh against west pak rulers • Suppression & violence by Pak Army against popular movement & people. • Exodus to India. • Backdrop-Indo Pak enimity. • Indira appeal to international community to ask Pak to refrain. What was her tactics? • Muktibahini took birth & grew in strengths with active but covert support of India. Trained by Indian Army. Not known by outside world • More exodus to India. Indira appealed to international community. She called Henry Kissinger in the presence of Gen Manekshaw – ‘if you do not take action, I will ask him to deal with situation’ • MujiburRahemanimprisioned for sedition. Announced independent Bangladesh. India first country to recognize. • Indira provoked Pak to start war. Pak fell to her trap. Why Indira did not want to start war. • India launched attack on all three front-naval, airstrike, army. Pak desparately ask for USA help. USA threatened India. India ask for USSR. • India wanted to finish war before USA interventions. • Shimla agreement.. • .. What is politics & power here • India is superior military, But USA was supprtpak, indiadefence treaty with USSR • Indira always project strengths to USA & world presence. Dare USA

12. Power & Politics in Organization; Defensive behaviors • Defensive behaviors • Avoiding action – buck passing, playing dumb, stalling • Avoiding blames – playing safe, justifying, scapegoating, misrepresenting • Impression management - Conformity, excuses, apologies, flattery, self promotion, favors, association…

13. Politics & organizational performance • Too much of is bad • How great organizations overcome it • Shared vision & uncompromising focus on it • Transparency. I as a Boss need to tell all why I promoted x & not y and what basis • Leaders.

14. Insight about Power & Politics • Power is one of the important needs which drive some people more than others • Power is not a bad word. Intent is important. • One of the factors that drove Henry Ford & Steve Jobs is power • So was the case with Hitler & Stalin • What is the difference? • Effective CEOs use both formal & personal power • Power & politics negatively engaged is bad for organizations • As professionals, be aware of power & politics. Do not become victim or victimize others. Leverage it for individual & organizational excellence

15. What is your source of power... • Expertise • Relationship • Personality • Goodhuman being • Ability to influence • Position • Intimidation/fear/..

16. What is your source of power; Exercise • How do I influence others? • Take feedback from one of your friends

17. Concept & terminology students should be familiar with

18. Conflict Management • What is conflict • Is conflict natural process in human interaction. Why do people get in to conflicts primarily. • Are all conflicts bad? • How do individuals manage conflict • How organization create functional conflict. • How organizations resolve conflicts • What is your conflict management style • Negotiation & conflict management

19. What is conflict • Range from minor difference of opinion, disagreement to destruction of other party in other extreme. • Conflict intensity continuum • Minor disagreement or misunderstanding, overt questioning or challenging others, assertive verbal attacks, threats & ultimatum, aggressive physical attacks, overt efforts to destroy the other party. Question – give examples

20. Is conflict natural process in human interaction. Why do people get in to conflicts primarily? • Yes or No? • If yes, why so? Based on OB studies. • Conclusion…issue is not whether there is presence of conflict or not but how effective it can be managed. • Are all conflicts bad?

21. Are all conflicts bad? • Yes or No? • Functional & dysfunctional outcome • Quality of decisions, creativity & innovation, prompts self evaluation • Discontent, relationship, infighting, destructions • Creating functional conflicts • HewlitPackards rewards dissent with respect • IBM – formal & informal forums to criticize management policies & leader’s action without personalization

22. How do individuals manage conflict • Competing – when person or party is seeking to satisfy own interest, regardless of the impact on other parties to the conflict, that person or party is competing. Example • Collaborating – when the parties to conflict each desire to fully satisfy the concerns of all parties, we have cooperation & the search for a mutually beneficial outcome. Example- organizations compete in certain areas & collaborate in certain other areas- AV Birla & JKPM in Orissa • Avoiding – A person may recognize that a conflict exist & want to withdraw from it or suppress it. Example – Ignore a conflict & avoiding others with whom you disagree. • Accommodating – when one party seeks to appease an opponent, that party may be willing to place the opponent interest above his or her own. • Compromising – when each party to conflict seeks to give up something, sharing occurs, resulting in a compromised outcome Exercise; What is your style & take feedback based on your conduct last three months

23. How do organizations manage conflict • Shared vision & uncompromising focus on organizational goals. Super ordinate goals • Values, behaviors, rules of the game defined and communicated. • Transparency, openness, Fairness. What it does – build trust. Example – Formal & informal forums open discussion on issues without personalization & no seeping under carpet • The Leader(s) Discussion – What Aragones did to build unity & harmony among players in Span context?

24. Those who manage conflict best.. • Life Positions – how you see yourself and others • I am ok – others are not ok. I win you lose. Which leader come to your mind • I am not ok you are not ok. I lose you lose • I am not ok you are ok. I lose you win • I am ok you are ok. I win you win • Which is best life position • What is your life position. Discussion how do you know what is your life position – the behavioral indicators

25. Negotiation… • Good negotiators • Win win as first options • Environmental awareness…what is the context, what goal is best.. • Negotiation skill.

26. Organization Structure • Different elements of organization & their usefulness • What is organization structure • Organizations design structure that suit the & enable them. • Do organizational design impact employee behaviors

27. Different elements of organization & their usefulness • First class – 7 S model & 8 primary & secondary practices

28. What is organization structure • Defines how job tasks are formally divided, grouped & coordinated. • Six elements; work specialization, departmentalization, chain of command, span of control, centralization-decentralization, formalization. • Work specialization • Ford Assembly line production & how it enable it to produce low cost cars in mass scale quickly. • Breaking jobs in to small standardized tasks, each workmen need to have specialized skill in limited domain • Advantage/disadventage & impact on satisfaction-dissatisfaction

29. What is organization structure • Departmentalization- • Grouping of common tasks. Marketing, Production, Maintenace • Advantages & disadvantages. • TPM. • Chain of command • Line of authority or chain of command. Who will report to whom. • Authority & unity of command • Span of control • How many employees can a Manager effectively direct • Advantages & disadvantages – Narrow/small vs big span of control • Example. • Centralization & Decentralization • Degree to which decision making is centralized or decentralized. • Highly centralized organization – decision making by sr leaders. • Current approach – decentralization & empowerment, flat organization • Formalization • To the degree to which jobs within organization are standardized. Standardization & freedom for employee

30. Span of Control… • Formalization • To the degree to which jobs within organization are standardized. Standardization & freedom for employee

31. Common organization design • Simple structure • Bureaucracy • Matrix • New organization design- • Team structure • Virtual organization • Boundary less organization

32. Group Behavior.. • What is a group? Why should you study group • Why people join groups? • How groups shape behavior of individuals? • How do groups develop? • What are the insights?

33. What is a Group.. • ITC & JKO Union Leader promoted to supervisory role. • Behavior in class & outside – it is not the same. • Group of people for ‘morning walk’ • Prayer meeting. • Party. • Organizational – Supervisors of two department sharing information

34. What is a Group; Classifying Groups • Group • Formal group; Command Group & Task Group • Informal group;Interest Group

35. What is a Group; Classifying Groups • Group • Formal group; Command Group & Task Group • Informal group; Interest Group • Formal groups; those defined by the organization structure, with designated work assignments establishing tasks Examples; The six members making up an airline flight crew. • A command group is determined by organization chart. It is composed of individuals who report directly to a given Manager. Example - An elementary school principal and her 18 teachers from a command group, as do the director of postal audits and his five inspectors • Task groups – also organizationally determined, represent those working together to complete a job task. Example – if a college student is accused of a campus crime, it may require communication between dean of students, security chief, students advisor… • Informal groups are alliances that are neither formally structured nor organizationally determined. These groups are natural formations in work environment that appear in response to the need for social contact. Example – three employees from different departments who regularly eat lunch together • Interest group; Employees who band together to have their vacation scheduled altered or to support a peer who has been fired or seek improved working conditions. • Friendship groups; interest in same alternative rock band or holding of similar political views

36. What is a Group • Two more individuals, interacting & interdependent who have come together to achieve particular objectives. • Difference between Group & Team; A work group is a group that interacts primarily to share information and make decisions to help each member perform within his area of responsibility. Work groups have no need or opportunity to engage in collective work that requires joint effort. Their performance is merely the summation of each group members individual contribution. A work team generates positive synergy through coordinated efforts. Their individual efforts result in a level of performance that is greater than the sum of those individual inputs. • How work team & work group differ • Goals; share information vs collective performance • Synergy; neutral vs synergy • Accountability; individual vs individual & mutual • Skills; random & varied vscomplementory

37. Why people join groups • Security.. • Status • Self esteem • Affiliation • Power • Goal achievement

38. How groups shape behavior of individuals? • Roles – Behavior varies with the roles you are playing. Example-Union Leader promoted as Supervisor Role Identity, Role perception, Role Expectation • Norms – All groups have established norms that is acceptable standard of behavior that are shared by the group members. Examples- Golfers do not speak while their partners are putting on the green or that employees do not criticize their bosses in public. Performance norms, appearance norms, social arrangement norms, .. • Status – Your status (because of power you weild over others, your ability to contribute to a group’s goals and your personal characteristics) in the group also determine how you behave. Sachin as Mentor for youngsters. • Size – • Cohesiveness -

39. How groups shape behavior of individuals? • Roles – Your behavior when you attends Church on Sunday morning is different from your behavior in a party with friends in night. You are required to play number of roles and your behavior varies with the roles you are playing. This is influenced by role identity. Example – Union Leader promoted to supervisory role become pro management. Role Identity Our view of how we are supposed to act in a given situation is a role perception. Role Expectation are defined as how others believe you should act in a given situation

40. How do Groups develop – Five stage model • Forming Members begin to think themselves as part of a group. • Storming There is conflict as who will control the group & finally acceptance by the group about leadership. • Norming Group structure solidifies & Group defines how individuals should behave. • Performing. Group start doing things & performing. • Adjourning Task is over & time to pack up

41. Group Decision making.. • Group vs Individuals Advantages & Disadvantages • Group decision making techniques • Brain storming; useful tool to overcome pressure of conformity. • Interacting group – members meet face to face

42. GD on Group Cohesiveness.. • Question – What you can do to build cohesiveness in various groups/group you are in? • Action points • Make the group smaller • Encourage agreement with group goals • Increase time members spend together • Increase the status of the group and the perceived difficulty of attaining membership in the group(Mumbai gymkhana club..) • Stimulate competition with other group • Give rewards to the group rather than to individual member • Physically isolate the group

43. Groups – What are the insights?

44. Organizational Change- Questions • What are forces of change • Will organization survive if it does not change with changing environment? • Is there resistance when organization try to change? • How organizations try to overcome resistance?

45. What are forces of Change • Competition – what competitors will do when Apple comes up with ipad & iphones? • Technology • World politics – what would happen if USA decides to strike Syria? • Economic shocks • ..

46. How organizations overcome resistance to change • Communicate & tell why change is necessary ITC my experience – ‘we will be out of competition if new technology not inducted’ • Participation – people do not resist when they participate in change ITC – Trade Union participated in manpower planning for new plant. • Build support & commitment • Induct people who favors change – ITC – GM was removed. • Win over opinion makers. • Encourage Change Agents – ITC reached out to young professionals • Coercion.

47. Organizational Culture… • Factors for organizational excellence 8 Practices • Characteristics of Great Organizational culture OCTAPACE • How is culture created & kept alive

48. How is culture created & kept alive… • The Leader creates Culture Apple as an innovative company & Steve Jobs Henry Ford & Ford Motors JRD & Tata • Keeping culture alive • Having right people • Stories • Organizational design Integrity & performance culture in GE What Aragones did?

49. Summary… • What impacts behaviors – some understanding – tips of iceberg. • What is my behavior & why I behave in the manner I do – preliminary understanding.