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Chapter 12

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  1. Chapter 12 Leadership Power and Influence

  2. “If a man can accept a situation in a place of power with the thought that it’s only temporary, he comes out all right.  But when he thinks that he is the cause of the power, that can be his ruination.”  • Harry S. Truman

  3. Transactional and Transformational Leadership • Transactional Leadership – a transaction or exchange process between leaders and followers. • Transformational Leadership – characterized by the ability to bring about significant change in followers and the organization.

  4. Transformational Leadership • Develops followers into leaders • Elevates concerns to higher level psychological needs • Inspires followers to go beyond their own self-interests • Paints a vision of desired future state and how the change is worth the effort

  5. Transformational Leadership • Can communicate complex ideas in a compelling manner • Act in unconventional manners • Inspire faith • Earn trust by willingly incurring great personal risk • Source of influence is from personal characteristics

  6. Charismatic Leaders Leaders who have the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacrifice.

  7. Black Hat of Charisma • Used for self serving purposes • Deception, manipulation and exploitation of others • Personalized behavior

  8. Power and Influence Power • The ability of one person or department in an organization to influence other people to bring about desired outcomes Influence • The effect a person’s actions have on the attitudes, values, beliefs, or actions of others

  9. Ex.12.2 Five Types of Leader Power • Legitimate • Reward • Coercive • Expert • Referent Position Power Personal Power

  10. Legitimate Power • Authority granted from a formal positions in an organization. • Rights, responsibilities and prerogatives accrue to anyone holding a formal leadership position • Set goals, make decisions and direct activities

  11. Reward Power • Authority to bestow rewards on other people • Appointed leaders may have access to rewards such as pay increases, promotions, physical resources • Influences subordinate’s behavior

  12. Coercive Power • Authority to punish or recommend punishment • Opposite of reward power • Right to fire, demote, criticize, reprimand or withdraw pay raises

  13. Expert Power • Results from special knowledge or skill • Followers go along with recommendations because of his/her superior knowledge • Usually gained from experience

  14. Referent Power • Comes from personality characteristics that command identification, respect and admirations so that others want to emulate the person • Dependent on personal characteristics rather than title • Strong identification with leader

  15. Ex. 12.3 Responses to the Use of Power Position Power Personal Power excessive use appropriate use Compliance Resistance Commitment

  16. Dependency • If a person has control over a resource that is desired, he/she gains power • Information • Cooperation • Resources

  17. Ex. 12.4 Characteristics That Affect Dependency and Power in Organizations Leader has control over: Leader has control over: Resources seen as unimportant Resources seen as very important Importance Widely available resources Scarce resources Scarcity Resources with acceptable substitutes Resources with no substitutes Non substitutability Low dependency on leader = lower power High dependency on leader = higher power

  18. Ex. 12.5 Strategic Contingencies that Affect Leader Power in Organizations Interdepartmental Dependency Control over Information Increased Power Organizational Centrality Coping with Uncertainty

  19. Politics Activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices

  20. Political Activity • Impression management – people seek to control how others perceived them • Executive presence – the impact you have when walk into a room

  21. Ex. 12.6 Seven Principles for Asserting Leader Influence • Use rational persuasion • Make people like you • Rely on the rule of reciprocity • Develop allies • Ask for what you want • Remember the principle of scarcity • Extend formal authority with expertise and credibility

  22. Ex. 12.7 Guidelines for Ethical Action Is the action consistent with the organization’s goals, rather than being self-motivated purely by self-interest? Does the action respect the rights of individuals and groups affected by it? Does the action meet the standards of fairness and equity? Would you wish others to behave in the same way if the action affected you? Ethical Choice