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Leadership Power and Influence

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1 Leadership Power and Influence
Chapter 12 Leadership Power and Influence

2 Chapter Objectives Use power and politics to help accomplish important organizational goals. Practice aspects of charismatic leadership by pursuing a vision or idea that you care deeply about and want to share with others. Apply the concepts that distinguish transformational from transactional leadership. Identify types and sources of power in organizations and know how to increase power through political activity. Use the influence tactics of rational persuasion, friendliness, reciprocity, developing allies, direct appeal, and scarcity.

3 “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

4 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.

5 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

6 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

7 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.

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

9 Power and Influence Power Influence
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

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

11 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

12 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

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

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

15 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

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

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

18 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 Scarcity Scarce resources Resources with acceptable substitutes Non substitutability Resources with no substitutes Low dependency on leader = lower power High dependency on leader = higher power

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

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

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

22 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

23 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

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