Presentation on theme: "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."— Presentation transcript:
2Power..MeaningRefers to a capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishesThe definition implies a potential that need not be actualized to be effective and a dependency relationship.
3Forbes List of Powerful People Barak Obama, 1Angela Merkel(Mrs), Chanceller-Germany, 2Vadimir Putin, President- Russia, 3Bill Gates, Co Chairman, Bill & Milinda Gates FoundationPope Benedict XVI, Pope – Roman CatholicBen Bernake, Chairman-Federal Reserve, USAXi Jinping, Gen Secy, Communist Party, China, 9David Cameroon, PM, UK, 10Sonia Gandhi(Mrs), 12Warren Buffet, Chairman, Berkshire Hathway,15Michael Duke, Wamart Stores, 17Lary Page, CEO, Google, 20Jeffrey Immelt, GE, 24Mark Zuckrberg, CEO, Facebook, 25Rupert Murdoch, CEOTimothy Cook, Apple Ceo, 35Mukesh Ambani, Chairman< reliance, 37Aki Toyoda, CEO-Toyota Motors, 43Lakshmi Mittal, CEO, Arcelor MittalBill Clinton, Chairman Global Initiative, 50
4GD & Questions to students-Forbes List of Powerful People-Analysis Women in list of 50Political Leaders wield power followed by Business LeadersMore Indians in the list.It is not only position or money, it is also about other things – Pope, Bill Clintonb Bill Milinda Gates Foundation
5Sources of Power Formal power Personal power Coercive powerReward powerLegitimate powerPersonal powerExpert powerReferent powerDependency – The Key to powerImportanceScarcity.Power tactics
6Sources 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 jobReward power – opposite of fear, Reward.Legitimate power- source of power is formal position in the organization.Personal powerExpert power – some body has influence because his expertise is valuable for organizationReferent power – people like, respect and admire stars, hence they exercise power over people as people want to please the stars.Dependency – The Key to powerImportanceScarcity.
7Power & 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 p169Jkpm expert workmenReferent power-advertisement by SharukhGandhi.. What was his source of powerEffective ceo use both position and personal powerHave good relation with boss of Boss. Lesson for MT from campus.Skm opposed to mckinseySr leader want good people to leave orgnVote bank politicsBritish – divide-ruleUSA attacked Sadam/iraq because of nuclear weapon with Iraq. What was real reason?
8Power ExamplesResignation(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 p169Jkpm expert workmenReferent power-advertisement by SharukhGandhi.. What was his source of powerEffective ceo use both position and personal powerHave good relation with boss of Boss. Lesson for MT from campus.Skm opposed to mckinseySr leader want good people to leave orgnVote bank politicsBritish – divide-ruleUSA attacked Sadam/iraq because of nuclear weapon with Iraq. What was real reason?
9Sources of Power Power Tactics (upward, downward & lateral influence) LegitimacyRational persuasion.Inspirational appeals.Consultation.Exchange.Personal appeal.Pressure.Coalitions..
11Politics – 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 effectivelyPower & Politics at it’s best; The case of Indira Gandhi & Indo Pak WarIs politics rare in organizations?
12The case of Indira Gandhi & Indo Pak War Unrest & popular uprising in Bangladesh against west pak rulersSuppression & 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 worldMore 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 hereIndia is superior military, But USA was supprt pak, india defence treaty with USSRIndira always project strengths to USA & world presence. Dare USA
13Politics & organizational performance Too much of is badHow great organizations overcome itShared vision & uncompromising focus on itTransparency. I as a Boss need to tell all why I promoted x & not y and what basisLeaders.
14Insight about Power & Politics Power is one of the important needs which drive some people more than othersPower is not a bad word. Intent is important.One of the factors that drove Henry Ford & Steve Jobs is powerSo was the case with Hitler & StalinWhat is the difference?Effective CEOs use both formal & personal powerPower & politics negatively engaged is bad for organizationsAs professionals, be aware of power & politics. Do not become victim or victimize others. Leverage it for individual & organizational excellence
15What is your source of power... ExpertiseRelationshipPersonalityGoodhuman beingAbility to influencePositionIntimidation/fear/..
16What is your source of power; Exercise How do I influence others?Take feedback from one of your friends
17Exercise – Forbes List Questions What does it speak Analysis – analytical ability of MBAs
18Concept & terminology students should be familiar with
19Conflict 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 conflictHow organization create functional conflict.How organizations resolve conflictsWhat is your conflict management styleNegotiation & conflict management
20What is conflictRange from minor difference of opinion, disagreement to destruction of other party in other extreme.Conflict intensity continuumMinor 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
21If 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?
22Functional & dysfunctional outcome Are all conflicts bad?Yes or No?Functional & dysfunctional outcomeQuality of decisions, creativity & innovation, prompts self evaluationDiscontent, relationship, infighting, destructionsCreating functional conflictsHewlit Packards rewards dissent with respectIBM – formal & informal forums to criticize management policies & leader’s action without personalization
23How 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. ExampleCollaborating – 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 OrissaAvoiding – 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 outcomeExercise; What is your style & take feedback based on your conduct last three months
24How do organizations manage conflict Shared vision & uncompromising focus on organizational goals. Super ordinate goalsValues, 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 carpetThe Leader(s)Discussion – What Aragones did to build unity & harmony among players in Span context?
25Those who manage conflict best.. Life Positions – how you see yourself and othersI am ok – others are not ok. I win you lose.Which leader come to your mindI am not ok you are not ok. I lose you loseI am not ok you are ok. I lose you winI am ok you are ok. I win you winWhich is best life positionWhat is your life position. Discussion how do you know what is your life position – the behavioral indicators
26Negotiation… Good negotiators Win win as first options Environmental awareness…what is the context, what goal is best..Negotiation skill.
27Organization Structure Different elements of organization & their usefulnessWhat is organization structureOrganizations design structure that suit the & enable them.Do organizational design impact employee behaviors
28Different elements of organization & their usefulness First class – 7 S model & 8 primary & secondary practices
29What 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 specializationFord 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 domainAdvantage/disadventage & impact on satisfaction-dissatisfaction
30What is organization structure Departmentalization-Grouping of common tasks. Marketing, Production, MaintenaceAdvantages & disadvantages.TPM.Chain of commandLine of authority or chain of command. Who will report to whom.Authority & unity of commandSpan of controlHow many employees can a Manager effectively directAdvantages & disadvantages – Narrow/small vs big span of controlExample.Centralization & DecentralizationDegree to which decision making is centralized or decentralized.Highly centralized organization – decision making by sr leaders.Current approach – decentralization & empowerment, flat organizationFormalizationTo the degree to which jobs within organization are standardized. Standardization & freedom for employee
31Span of Control… Formalization To the degree to which jobs within organization are standardized. Standardization & freedom for employee
34GD on Group Cohesiveness..2 Question – What you can do to build cohesiveness in various groups/group you are in?Action pointsMake the group smallerEncourage agreement with group goalsIncrease time members spend togetherIncrease the status of the group and the perceived difficulty of attaining membership in the group(Mumbai gymkhana club..)Stimulate competition with other groupGive rewards to the group rather than to individual memberPhysically isolate the group
35Difference 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
36POWER“Ability to influence and control anything that is of value to others.”
37POWER 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.
38POWER vs. INFLUENCE Has the ability to alter reality. Can only alter a person’s perceptions about reality and the relationships in the organization.
39TYPES OF POWER Coercive Power Reward Power Legitimate Power Expert PowerReferent Power
40DEPENDENCY FACTOR Alternate source Dependency Dependency is key element in study of power.DependencyAlternate source
41Level of dependencyImportanceScarcityNon-substitutes
42Power 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+vepowerBased on social powerWin-win situation
44Power and control Centralization Exercised by few key executives traditionalCentralizationExercised by few key executivesbehavioralDecentralizationBelieves in information sharing
45POWER STRUCTURE AND BLOCS POWER RELATIONS EXISTING BETWEEN THE MEMBERS OF AN ORGANISATION USUALLY MATCH THEIR POSITION IN THE ORGANISATIONAL CHART.POWER BLOCSPOWER 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.
46Power structure Direct power of ‘A’ = Indirect power of ‘A’ A A B B C DCDirect power Indirect power
47Power structure Indirect power > Direct power (power elites) (subordinate power)ABCD E F G H I J K L
48POWER BALANCEWHEN 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.
49VARIOUS POWER PLOYS UPWARD STRATGEGIES DOWNWARD STRATGEGIES LATERAL STRATGEGIES
50Power by being in “right place” CONTINGENCY APPROACHES TO POWERPower by being in “right place”Right PlaceControl over ResourcesControl over InformationControl over Position
55Power in groups : coalitions People form coalition to:Combine their resourcesIncrease their bargaining power.Bring balance in power.Organizational coalition has large membership.Formation of organizational coalitions depend onDegree of interdependence between departmentsNature of task/work.
57Politics: Power in Action Political BehaviorActivities 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.
58Factors Relating to Political Behaviour Level ofSelf-MonitoringLocus ofControlIndividualFactorsStrengths of theIndividual’sPower motiveWorkEnvironment