1. Organizational Behavior & Leadership
MBA 552
Organizational Behavior & Leadership

2. Historical Evolution of Management Thought
Pre-Scientific Pre – 1880s
Focus –
Basic principles for nature and society
Position of authority and order
Economic Rationale
Early development of division of labor

3. Scholars – Pre-scientific
Jethro – Moses’ father-in-law
Gave advice to Moses regarding authority over the tribes of Israel
Sun tzu – Wrote “The Art of War” 500BC
Recognizes need for hierarchy, communications, and planning
Aristotle 360 BC – Socrates 44 BC
Management related to cultural environment
Xenophon 370 BC – Division of labor
Machiavelli – Unity of command and leadership
Adam Smith – Factory system & Division of Labor

4. Work and the Ruling Class
Work – Accomplished by slaves and lower level classes of people
Elite ruled according to traditions

5. The Classical Era 1880s-1930s Scientific Management
Administrative school
Structuralist school

6. The Classical Era 1880s-1930s Focus Scientific Management
Organizing, managing, effective, efficient
Administrative school
Basic functions of managers
Structuralist school
Characteristics of the ideal type of an organization

7. The Classical Era 1880s-1930s Scholars Scientific Management
Frederick Taylor
work measurement
Best way to do a job
Selection of individuals for the position
Financial incentives

8. The Classical Era 1880s-1930s Scholars Administrative school
Henry Fayol
Planning
Organizing
Commanding
Coordinating
Controlling

9. The Classical Era 1880s-1930s Scholars Structuralist school Max Weber
Bureaucratic Model
Order via rules, procedures, authority, division of labor, functional specialization, well-defined hierarchy, differentiation of organizational functions, uniformity, and consistency

10. The Neoclassical Era 1830s-1960s
Human Relations School
Behavior schools
Group Dynamics
Leadership
Decision making

11. The Neoclassical Era 1830s-1960s
Cooperative systems
Informal roles and norms influence individual performance
Work group dynamics influence individual and group performance
Decision-making styles influence performance

12. The Modern Era 1960- present
Systems School
Societal Systems School
Management science school
Contingency school

13. The Modern Era 1960- present
Systems School
Organizations are composed of systems and subsystems
Societal Systems School
Composed of social, technological, and environmental subsystems

14. The Modern Era 1960- present
Management science school
Quantitative methods used to solve management and organizational issues
Contingency school
Explores alternative organization design configurations and managerial actions for changing situations

15. Expectations theory
Self-fulfilling prophecy

16. Expectations theory Self-fulfilling prophecy
Belief that an event or outcome will take place

17. Expectations theory Self-fulfilling prophecy Three steps
Belief an event will occur
New behavior performed that would not have been performed if not for the expectation
The expected event occurs

18. Learning
Individual
Team
Organizational

19. Individual Learning
Change of skills, insights, knowledge, attitudes, and values acquired by self-study, technology based instruction, insight and observation.

20. Power America’s last dirty word
Those that openly seek it are categorized as power mongers – as if this is some sort of stigma
They are looked down upon as lowly individuals

21. Concept of Power Power - the ability to influence another person
Influence - the process of affecting the thoughts, behavior, & feelings of another person
Authority - the right to influence another person 2

22. The Meaning of Power
Power is the capacity of a person, team, or organization to influence others.
The potential to influence others
People have power they don’t use and may not know they possess
Power requires one person’s perception of dependence on another person
C. Price, Vancouver Province

23. Power
The ability to produce change by mobilizing one or more people to take action

24. Power Important to achieve organizational goals Alliances are formed
Work gets accomplished
Leadership happens

25. Concept of Power
Zone of Indifference - the range in which attempts to influence a person will be perceived as legitimate & will be acted on without a great deal of thought
Zone of Indifference
Managers strive to expand the zone of indifference
Z o n e o f I n d i f f e r e n c e 3

26. Sources of Power Legitimate Power Reward Power Coercive Power
Expert Power
Reuters Archive Photos
Referent Power

27. Sources of Organizational Power: Interpersonal
Reward Power - agent’s ability to control the rewards that the target wants
Coercive Power - agent’s ability to cause an unpleasant experience for a target
Legitimate Power - agent and target agree that agent has influential rights, based on position and mutual agreement
Referent Power - based on interpersonal attraction
Expert Power - agent has knowledge target needs 4

28. Which Power is Most Effective?
Expert Power!
Strong relationship to performance & satisfaction
Transfers vital skills, abilities, and knowledge within the organization
Employees internalize what they observe & learn from managers they consider “experts” 5

29. Information Power
Information Power - access to and control over important information
Formal/informal position in communication network
Interpreting information when passing it on

30. Information and Power Control over information flow
Based on legitimate power
Relates to formal communication network
Common in centralized structures (wheel pattern)
Coping with uncertainty
Those who know how to cope with organizational uncertainties gain power
Prevention
Forecasting
Absorption

31. Using Power Ethically
Does the behavior produce a good outcome for people both inside and outside the organization?
Does the behavior respect the rights of all parties?
Does the behavior treat all parties equitably and fairly? 6

32. Two Faces of Power Personal Power used for personal gain Social Power
used to create motivation
used to accomplish group goals 7

33. Successful Power Users
Have high need for social power
Approach relationships with a communal orientation
Focus on needs and interests of others
belief in the authority system
preference for
work & discipline
belief in justice
altruism 8

34. Sources of Organizational Power: Intergroup
Control of critical resources
Control of strategic contingencies - activities that other groups need to complete their tasks
Ways groups hold power over other groups
Ability to reduce uncertainty
High centrality - functionality central to organization’s success
Nonsubstitutability - group’s activities are difficult to replace 9

35. Power Analysis: A Broader View
Organizational Power
Coercive Power - influence through threat of punishment, fear, or intimidation
Utilitarian Power - influence through rewards and benefits
Normative Power - influence through knowledge of belonging, doing the right thing

36. Power Analysis: A Broader View
Organizational Membership
Alienative Membership - members feel hostile, negative, do not want to be there
Calculative Membership - members weigh benefits and limitations of belonging
Moral Membership - members have positive organizational feelings; will deny own needs

37. Kanter’s Symbols of Power
Ability to intercede for someone in trouble
Ability to get placements for favored employees
Exceeding budget limitations
Procuring above-average raises for employees
Getting items on the agenda at meetings
Access to early information
Having top managers seek out their opinion 11

38. Kanter’s Symbols of Powerlessness
Top Executives
budget cuts
punishing behaviors
top-down communications
Staff Professionals
resistance to change
turf protection
Managers
assign external attribution blame others or environment
First-line Supervisors
overly close supervision
inflexible adherence to rules
do job rather than train
Key to overcoming powerlessness:
share power & delegate decision making 12

39. Korda’s Power Symbols
Power - there are more people who inconvenience themselves on your behalf than there are people on whose behalf you would inconvenience yourself
Status - a person’s relative standing in a group based on prestige and deference
Time
Access
Furnishings 13

40. Using Power Effectively
Use power in ethical ways
Understand and use all of the various types of power and influence
Seek out jobs that allow you to develop your power skills
Use power tempered by maturity and self-control
Accept that influencing people is an important part of the management job 25

41. Analyzing Power Dynamics
Think
Then Act

42. Analyzing Power Dynamics
Power Distribution
Who has the power
Who needs the power
What can be done to influence the power holder
How well do I know the power holder
When can I get to see the power holder
What strategies have influenced the power holder in the past

43. Analyzing Power Dynamics
Structural Diversity
What is the relationship of the two projects
Growth potential of each, profits long and short-term organizational benefits
Do they depend on each other?
Interdependence
Breeds dependence and creates a power differential

44. Power and Dependence Person A Person B Person B’s Goals
Person B’s counterpower over Person A
Person A
Person B
Person
B’s Goals
Person A’s power over Person B

45. Power - Legitimate Formal – organizationally assigned
Part of the managerial hierarchy
Informal – Expert power
Superior expertise in the ability to perform a particular job

46. Model of Power in Organizations
Sources
Of Power
Power
over Others
Legitimate
Reward
Coercive
Expert
Referent
Contingencies
Of Power

47. The Limits of Legitimate Power
The Caine Mutiny illustrates the limits of legitimate power in organizations. Captain Queeg (Humphrey Bogart,) asked his crew to do more than they were willing to follow, so they staged a mutiny.
Reuters Archive Photos

48. Increasing Nonsubstitutability
Differentiation
Controlling
Tasks
Increasing
Nonsubstitutability
Controlling
labor
Controlling
Knowledge

49. Contingencies of Power
over others
Sources
Of Power
Contingencies
Of Power
Substitutability
Centrality
Discretion
Visibility

50. Consequences of Power Commitment Compliance Resistance
Sources of Power
Consequences of Power
Expert
Power
Commitment
Referent
Power
Legitimate Power
Compliance
Reward Power
Resistance
Coercive
Power

51. Sexual Harassment and Power
Harasser stereotypes the victim as subservient and powerless
Harasser threatens job security or safety through coercive or legitimate power
Hostile work environment harassment continues when the victim lacks power to stop the behavior

52. Office Romance and Power
Co-workers believe that employees in relationships abuse their power to favor each other.
Higher risk of sexual harassment when relationship breaks off.

53. Organizational Politics
Attempts to influence others using discretionary behaviors to promote personal objectives
Discretionary behaviors -- neither explicitly prescribed nor prohibited
Politics may be good or bad for the organization

54. Political Behavior in Organizations
Organizational Politics - the use of power and influence in organizations
Political Behavior - actions not officially sanctioned by an organization that are taken to influence others in order to meet one’s personal goals 14

55. Types of Organizational Politics
Managing
impressions
Attacking and
blaming
Types of
Organizational
Politics
Controlling
information
Creating
obligations
Cultivating
networks
Forming coalitions

56. Conditions for Organizational Politics
Personal
Characteristics
Scarce
Resources
Conditions
Supporting
Organizational
Politics
Tolerance of
Politics
Complex and
Ambiguous
Decisions

57. Controlling Political Behavior
Provide
Sufficient
Resources
Remove
Political Norms
Introduce
Clear Rules
Hire
Low-Politics
Employees
Free Flowing
Information
Increase
Opportunities
for Dialogue
Manage Change
Effectively
Peer Pressure
Against Politics

58. Persuasive Communication
Communicator
Characteristics
• Expert
• Credibility
• Attractive
Communication Medium
Audience
Characteristics
• Self-esteem
• Inoculated
Message
Content
• Present all sides
• Few arguments
• Emotional appeals
• Inoculation effect

59. Effective Political Characteristics
What characteristics do effective political actors possess? ? 15

60. Upward Influence: the boss
Influence Tactics
Consultation
Inspirational appeals
Rational persuasion
Ingratiation
Coalition
Exchange tactics
Upward appeals
Pressure
Upward Influence: the boss
Lateral Influence:
a coworker
Downward Influence:
an employee 16

61. Managing Political Behavior
Maintain open communication
Clarify performance expectations
Use participative management
Encourage cooperation among work groups
Manage scarce resources well
Provide a supportive organizational climate 17

62. Assess Yourself and Your Needs
Managing Up: The Boss
Understand Your Boss and Her Context
Her goals and objectives
The pressures on her
Her strengths, weaknesses, blind spots
Her preferred work style
Assess Yourself and Your Needs
Your own strengths and weaknesses
Your personal style
Your predisposition toward dependence on authority figures

63. Managing Up: The Boss Develop and Maintain a Relationship that
Fits both your needs and styles
Is characterized by mutual expectations
Keeps your boss informed
Is based on dependability and honesty
Selectively uses your boss’s time and resources
SOURCE: Information on slides adapted and reprinted by permission of Harvard Business Review. From J. J. Gabarro and J. P. Kotter, “Managing Your Boss,” Harvard Business Review (January-February 1980): Copyright© 1980 by the Harvard Business School Publishing Corporation; all rights reserved. 20

64. Sharing Power: Empowerment
sharing power in such a way that individuals learn to believe in their ability to do the job! 21

65. Empowerment’s Dimensions
Meaning - fit between the work role and the employee’s values and beliefs
Competence - belief that one has the ability to do the job well
E2s
Self-determination - having control over the way one does one’s work
Impact - belief that one’s job makes a difference within the organization 22

66. Guidelines for Empowering
Express confidence in employees
Set high performance expectations
Create opportunities for participative decision making
Remove bureaucratic constraints that stifle autonomy
Set inspirational and meaningful goals 23

67. Using Power Effectively
Use power in ethical ways
Understand and use all of the various types of power and influence
Seek out jobs that allow you to develop your power skills
Use power tempered by maturity and self-control
Accept that influencing people is an important part of the management job 25

68. Understand and use all of the various types of power and influence
Always say less than necessary
Guard your reputation with your life
Court attention at all cost
Make other people come to you
Win through actions, not arguments

69. Understand and use all of the various types of power and influence
Avoid the unhappy and unlucky people
Learn to keep people dependent on you
Do not isolate yourself
Know who you are dealing with
Play dumb

70. Understand and use all of the various types of power and influence
Keep your hands clean
Enter action with boldness
Act well to be treated well
Ignore the things you cannot have
Do not try to directly replace anyone
You may be compared to that great person

71. Understand and use all of the various types of power and influence
Preach the need for change
Never appear too perfect
Do not go past your goal – until you are able to formulate new directions

72. Formula for Success If A equals success, then the formula is
A = X + Y + Z.
X is work.
Y is play.
Z is keep your mouth shut.
-- Albert Einstein