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
Mukesh Ambani, Chairman< reliance, 37
Aki Toyoda, CEO-Toyota Motors, 43
Lakshmi Mittal, CEO, Arcelor Mittal
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 Personal 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 Personal 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. Impression management in organizations & defensive behaviors
Avoiding action – buck passing, playing dumb, stalling
Avoiding blames – playing safe, justifying, scape goating, misrepresenting
Impression management - Conformity, excuses, apologies, flattery, self promotion, favors, association…

11. 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?

12. 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?
Mukti bahini 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’
Mujibur Raheman imprisioned 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 supprt pak, india defence treaty with USSR
Indira always project strengths to USA & world presence. Dare USA

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. Exercise – Forbes List Questions What does it speak
Analysis – analytical ability of MBAs

18. Concept & terminology students should be familiar with

19. 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

20. 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

21. If yes, why so? Based on OB studies.
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?

22. Functional & dysfunctional outcome
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
Hewlit Packards rewards dissent with respect
IBM – formal & informal forums to criticize management policies & leader’s action without personalization

23. 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

24. 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?

25. 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

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

27. 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

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

29. 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

30. 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

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

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

33. Group Behavior..1 Q

34. GD on Group Cohesiveness..2
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

35. Difference between Group & Team p339 book
Group – as two or more person interacting who have come together to achieve particular objectives. A ‘Work Group’ is a group that interacts primarly to share information and to make decision to help each member perform within his or her area of responsibility

36. POWER
“Ability to influence and control anything that is of value to others.”

37. POWER vs. AUTHORITY May or may not be legitimate. Legitimate.
May or may not be liked by the person over whom it is exercised.
Has a willing acceptance of the person over whom it is exercised.

38. POWER vs. INFLUENCE Has the ability to alter reality.
Can only alter a person’s perceptions about reality and the relationships in the organization.

39. TYPES OF POWER Coercive Power Reward Power Legitimate Power
Expert Power
Referent Power

40. DEPENDENCY FACTOR Alternate source Dependency
Dependency is key element in study of power.
Dependency
Alternate source

41. Level of dependency
Importance
Scarcity
Non-substitutes

42. Power corollary The exercise of power comes with cost.
It is important to maintain a balance of power

43. +ve -ve power power FACES OF POWER Based on personal power
Win-lose situation
+ve
power
Based on social power
Win-win situation

44. Power and control Centralization Exercised by few key executives
traditional
Centralization
Exercised by few key executives
behavioral
Decentralization
Believes in information sharing

45. POWER STRUCTURE AND BLOCS
POWER RELATIONS EXISTING BETWEEN THE MEMBERS OF AN ORGANISATION USUALLY MATCH THEIR POSITION IN THE ORGANISATIONAL CHART.
POWER BLOCS
POWER BLOCS ARE LARGE GROUP OF PEOPLE HAVING LIMITED INDIVIDUAL POWER,WHO COMBINE THEIR POWER TO REDUCE OR BALANCE THE POWER OF THOSE ON WHOM THEY DEPEND.

46. Power structure Direct power of ‘A’ = Indirect power of ‘A’ A A B
B C D C
Direct power Indirect power

47. Power structure Indirect power > Direct power
(power elites) (subordinate power) A B C
D E F G H I J K L

48. POWER BALANCE
WHEN THE DEGREE OF DEPENDENCY OF THE TARGET IS EQUAL TO THE DEGREE OF POWER EXERCISED BY THE AGENT, THEN POWER IS SAID TO BE BALANCED.

49. VARIOUS POWER PLOYS UPWARD STRATGEGIES DOWNWARD STRATGEGIES
LATERAL STRATGEGIES

50. Power by being in “right place”
CONTINGENCY APPROACHES TO POWER
Power by being in “right place”
Right Place
Control over Resources
Control over Information
Control over Position

52. CONTINGENCY APPROACHES TO POWER
Two Way Reciprocal Nature Of Power Relationship
Strength Of Power Depends Upon
Interdependency
Critical Importance
Influencability Of Target

53. Influencability of target
Degree Of Dependency
Uncertainty
Culture
Influencability of target
Personality Traits
Age
Intelligence

55. Power in groups : coalitions
People form coalition to:
Combine their resources
Increase their bargaining power.
Bring balance in power.
Organizational coalition has large membership.
Formation of organizational coalitions depend on
Degree of interdependence between departments
Nature of task/work.

56. Organizational
Politics

57. Politics: Power in Action
Political Behavior
Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization.
Legitimate Political Behavior Normal everyday politics.
Illegitimate Political Behavior Extreme political behavior that violates the implied rules of the game.

58. Factors Relating to Political Behaviour
Level of
Self-Monitoring
Locus of
Control
Individual
Factors
Strengths of the
Individual’s
Power motive
Work
Environment