Topic 7

1. Topic 7 Power,Persuasion, and Influence

2. Who Gets Power, and How They Hold on to It • Traditional political power is one of the few mechanisms available for aligning an organization with its own reality • Institutionalized forms of power tend to buffer the organization from reality and obscure the demands of its environment

3. Organizational Power • Organizational power is the ability to get things done the way one wants them to be done • Where does organizational power come from? • Subunits most able to cope with the organization’s critical problems and uncertainties acquire power • The strategic-contingencies theory - when an organization faces threats, the subunit most in control of these threats will gain power and influence

4. How Do Leaders Get Power? • Important Distinctions • Power is the capacity to produce effects on others or the potential to influence. Influence is the degree of change in a target person’s attitudes, values, beliefs, or behaviors. Influence tactics are actual behaviors manifested by one person to influence another.

5. How Do Leaders Get Power? • Important Distinctions • Therefore, leadership is simply an attempt to influence, while power is well described as a leader’s influence potential. • It is the resource that enables a leader to induce compliance from or influence others.

6. How Do Leaders Get Power? • The term power seems to have a negative connotation (note previous slide “to induce compliance”), but power is only negative when it is abusively used. • To be influential, leaders must exercise POWER!!!!

7. Sources of Power • Legitimate power • Reward power • Coercive power • Expert power • Referent power

8. Leaders and PowerFrench and Raven’s Framework: Five Sources of Power • Legitimate- authority associated with a position • Coercive- ability to punish or control • Followers react out of fear • Reward- ability to give positive benefits • Provide anything that another person values

9. Leaders and PowerFrench and Raven’s Framework: Five Sources of Power (cont.) • Expert- influence based on special skills or knowledge • Referent- arises because of a person’s desirable resources or personal traits • Leads to admiration and desire to be like that person

10. Power: • Information power- based on the leader’s possession of or access to information perceived as valuable by others (Raven & Kruglanski) • Connection power- based on the leader's connection with influential or important persons inside or outside the organization (Hershey & Goldsmith)

11. Potential Reactions to Sources of Power Coercive Power Reward Power Legitimate Power Expert Power Referent Power Resistance Compliance Commitment

12. Concluding Thoughts about French and Raven’s Power Taxonomy • The single factor of whether or not a group is facing a crisis might affect the leader’s exercise of power simply because leaders usually can exert more power during crisis than during periods of relative calm. • During crisis followers are more eager to receive direction and control from leaders. • Findings indicate that leaders who relied primarily on referent and expert power had subordinates who were more motivated and satisfied, were absent less, and performed better.

13. Four Generalizations about Power and Influence • Effective leaders typically take advantage of all their sources of power. • Whereas leaders in well-functioning organizations have strong influence over their subordinates, they are also open to being influenced by them. • Leaders vary in the extent to which they share power with subordinates. • Effective leaders generally work to increase their various power bases or become more willing to use their coercive power.

14. Leader Motives • People vary in their motivation to influence or control others. • Two different ways of expressing the need for power: • Personalized power • Socialized power • The need for power has been found to be positively related to various leadership effectiveness criteria.

15. Leader Motives (continued) • Leaders who are relatively uninhibited in their personal need for power will use power impulsively, to manipulate or control others, or to achieve at another’s expense. • Leaders with a high need for power but low activity inhibition may be successful in the short term, but their followers, as well as the remainder of the organization, may pay high costs for this success.

16. Questions for Discussion: • Is there a best type of power? • Is power an eroding concept in 21st century leadership? • How much power should leaders have? • How do leaders lose power? • Can a leader occupy a top-level position and still have relatively little power? • What’s the relationship between power and politics?

17. How Power is Acquired or Lost • Social Exchange Theory – Power based on exchange of benefits or favors • Acquired • Control over scarce resources • Access to vital information • Skill in dealing with critical problems • Accumulated idiosyncratic credits • Innovative proposals • Lost • Pursuing selfish motives • Innovation (if lead to failure) • How serious the failure is • Amount of status

18. Sharing Power in Organizations • Power is shared more out of necessity than out of concern for principles of organizational development or participative democracy • no one person controls all the desired activities in the organization • An individual’s or subgroup’s power is never absolute and derives ultimately from the context of the situation • In most societies, power is distributed around scarce and critical resources

19. Organizational Power on Decision-Making • Prudent and judicious persons are not likely to use their power needlessly or wastefully • Three conditions affect the use of power in organizations: Scarcity Criticality Uncertainty

20. Informal approaches to gaining power through means other than merit or luck Organizational Politics

21. Relationship-Building Strategies • Display loyalty • Manage your impression • Ask satisfied customers to contact your boss • Be courteous, pleasant, and positive • Ask advice • Send thank-you notes to large numbers of people • Flatter others sensibly

22. Potential Political Blunders • Criticizing the boss in a public forum • Bypassing the boss • Declining an offer from top management • Putting your foot in your mouth • Not conforming to the company dress code

23. Unethical Political Tactics • Backstabbing • Embrace or demolish • Setting a person up for failure • Divide and rule • Playing territorial games • Creating and then resolving a false catastrophe

24. Exercising Control Over Dysfunctional Politics • Be aware of its causes and techniques • Avoid favoritism • Set good examples at the top of the organization • Encourage goal congruence • Threaten to discuss questionable information in a public forum • Hire people with integrity

25. Implications for Management of Power in Organizations • Implications depend largely on whether one wants to increase one’s power, decrease the power of others, or maintain one’s position • To understand power in an organization, one must begin by looking outside it – into the environment • The real trick to managing power in organizations is to ensure that leaders: • Be aware of the realities of their environments • Can change to deal with those realities

26. Empowerment … refers to passing decision-making authority and responsibility from managers to group members. Almost any form of participative management, shared decision making, and delegation can be regarded as empowerment.

27. Effective Empowering Practices

28. Leadership Factors in Empowerment • Create a positive emotional atmosphere • Set high performance standards • Encourage initiative and responsibility • Reward openly and personally • Practice equity and collaboration • Express appropriate confidence in subordinates

29. Organizational Factors in Empowerment • Decentralize structure • Select and train leaders appropriately • Select and train employees appropriately • Remove bureaucratic constraints • Reward empowering behaviors • Create fair and open organization policies

30. Ownership Power • A leader’s strength of ownership power depends on • how closely the leader is linked to shareholders and board members • how much money he or she has invested in the firm

31. Resource Dependence Perspective • An organization requires a continuing flow of human resources, money, customers and clients, technological inputs, and materials to continue to function • Organizational subunits or individuals who can provide these key resources accrue power

32. Influence Tactics • Whereas power is the potential to influence others, influence tactics are the actual behaviors used by an agent to change the attitudes, opinions, or behaviors of a target person.

33. Assessing Types Of Influence Tactics Rational persuasion Consultation Inspirational appeals IBQ Ingratiation Pressure tactics Personal appeals Legitimizing tactics Exchange Coalition tactics

34. Influence Tactics

35. Use and Effectiveness of Influence Tactics

36. Types of Influence Tactics • Rational persuasion • Inspirational appeals • Consultation • Ingratiation • Personal Appeals

37. Types of Influence Tactics • Exchange • Coalition tactics • Pressure tactics • Legitimizing tactics

38. Rational Persuasion • Rational persuasion involves the use of logical arguments and factual information to convince a target that the agent’s request or proposal is feasible and consistent with shared objectives. Rational persuasion is used more in an upward direction than in a downward or lateral direction.

39. Inspirational Appeal • Inspirational appeal uses the target’s values, ideals, aspirations, and emotions as a basis for gaining commitment to a request or proposal. • This tactic is especially appropriate for gaining the commitment of someone to work on a new task or project • Inspirational appeals are used more in a downward direction than in a lateral or upward direction.

40. Consultation • When people gain a sense of ownership of a project, they are likely to be more committed to making the project successful • Consultation is used more in a downward direction than in a lateral or upward direction,

41. Ingratiation • The basis for ingratiation is an increase in the target’s feeling of positive regard toward the agent. • Flattery, praise, expression of acceptance, and expression of agreement are used to increase the agent’s attractiveness to the target. • Ingratiation is used more in a downward and lateral direction than in an upward direction.

42. Exchange • Exchange tactics involve explicit or implicit offers by an agent to provide a favor or benefit to the target in return for doing what the agent requests. • Exchange is used more in a downward and lateral direction than in an upward direction.

43. Personal Appeals • Personal appeals are based on referent power already possessed by the agent. • When a target has strong feelings of friendship toward the agent, it is more likely that the agent can appeal successfully to the target to do something. • Personal appeals are used more in a lateral direction than in a downward or upward direction.

44. Coalition Tactics • With coalition tactics, an agent enlists the aid or endorsement of other people to influence a target to do what the agent wants. • Coalitions are used most often as a follow-up tactic after the target has already resisted a direct influence attempt by the agent. • Coalition tactics are used more in a lateral and upward direction than in a downward direction.

45. Legitimizing Tactics • Legitimizing tactics involve efforts to verify the legitimacy of a request and the agent’s authority or right to make it • This tactic is most appropriate for a request that is unusual and of doubtful legitimacy to the target person • Legitimizing tactics are used more in a downward and lateral direction than in an upward direction.

46. Pressure Tactics • Pressure tactics involve the use of a manager’s coercive power, which is greater in relation to subordinates than in relation to peers or superiors • Pressure tactics are used more in a downward direction than in a lateral or upward direction.

47. Influence Tactics and Power • Type(s) of power possessed by leader determines type(s) of influence tactics used with followers. Leaders with referent power have the widest range of influence tactics available. Leaders tend to use “hard” tactics when they have an advantage over the follower(s) and “soft” tactics when they are at a disadvantage.

48. Caution: • Leaders should be conscious of the tactics they use, the typical effects of each, and why they are employing particular tactics.

49. Four Generalizations about Power and Influence • Effective leaders typically take advantage of all their sources of power. • Whereas leaders in well-functioning organizations have strong influence over their subordinates, they are also open to being influenced by them.

50. Four Generalizations about Power and Influence (continued) • Leaders vary in the extent to which they share power with subordinates. • Effective leaders generally work to increase their various power bases or become more willing to use their coercive power.