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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.

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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:

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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 – 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 Impression management in organizations & defensive behaviors 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 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 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 POWER 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 POWER 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 I.Coercive Power II.Reward Power III.Legitimate Power IV.Expert Power V.Referent Power

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

41 Level of dependency

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

43 FACES OF POWER

44 Power and control

45 POWER STRUCTURE AND BLOCS POWER STRUCTURE 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 A B C D A B C Direct power of ‘A’ = Indirect power of ‘A’ Direct power Indirect power

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

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 1.UPWARD STRATGEGIES 2.DOWNWARD STRATGEGIES 3.LATERAL STRATGEGIES

50 CONTINGENCY APPROACHES TO POWER Power by being in “ right place”

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52 CONTINGENCY APPROACHES TO POWER Two Way Reciprocal Nature Of Power Relationship

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

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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 IndividualFactorsIndividualFactors Level of Self-Monitoring Self-Monitoring Level of Self-Monitoring Self-Monitoring Locus of Control Control WorkEnvironmentWorkEnvironment Factors Relating to Political Behaviour Strengths of the Individual’s Power motive Strengths of the Individual’s Power motive


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