1. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-1 Chapter 4 Influencing: Power, Politics, Networking and Negotiation

2. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-2 Chapter 4 Learning Outcomes Position vs personal powerPosition vs personal power Differences among legitimate, reward, coercive, and referent powerDifferences among legitimate, reward, coercive, and referent power Relationship of power and politicsRelationship of power and politics Similar use of money and politicsSimilar use of money and politics Steps in networking processSteps in networking process Steps in negotiation processSteps in negotiation process Relationship among: negotiation, conflict, influencing tactics, power, politicsRelationship among: negotiation, conflict, influencing tactics, power, politics

3. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-3 Influencing The process of affecting others’ attitudes and behavior to achieve an objective.

4. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-4 2 Sources of Power Position Personal Derived from top management Derived from the follower based on leader’s behavior

5. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-5 Rational Persuasion Rational Persuasion Inspirational Appeals Inspirational Appeals Pressure Consultation Legitimization Ingratiation Coalitions Personal Appeals Personal Appeals 9InfluencingTactics9InfluencingTactics Exchange Source: Adapted from J. French and B.H. Raven. 1959. “The Bases of Social Power.” In Studies of Social Power. D. Cartwright, ed. Ann Arbor, MI: Institute for Social Research.

6. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-6 Types of Power Legal/Legitimate:Legal/Legitimate: –Comes from appointed/elected position –Most followers grant this to a leader Reward:Reward: –Control of things valued by followers –Based on exchange relationship

7. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-7 Types of Power Referent: –Based on respect & personal relationships Earned respect increases referent power Being better liked increases referent power Being seen as a team player, dedicated, and effective increase referent power –Can be developed by anyone regardless of other types of power or the lack thereof –Critical between: Leaders & followers Peers Leaders & their superiors –Excellent base for a relational or balanced relational/structural leadership style

8. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-8 Types of Power Expert:Expert: –Comes from skill, expertise, knowledge –Makes others dependent on the person with the power –Can be for advice, to fix your computer, etc. Information/Resource:Information/Resource: –Comes from control of data, information or other needed resources $$$ Equipment Human Resources Supplies & Material

9. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-9 Types of Power Coercive/Punishment:Coercive/Punishment: –Ability to punish or withhold rewards –Often used by peers to enforce norms Connection:Connection: –Comes from associating with influential people –Political

10. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-10 THE SINGLE MOST EFFECTIVE WAY TO ACCUMULATE POWER IN AN ORGANIZATION Regularly provide services, favors, and assistance to everyone within the organization. The more impossible these acts are to repay, the greater the power gain.

11. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-11 Politics The process of gaining and using powerThe process of gaining and using power Fact of life in organizationsFact of life in organizations Neither good or badNeither good or bad

12. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-12 Networking Reciprocity Coalitions 3CommonPoliticalBehaviors3CommonPoliticalBehaviors

13. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-13 Political Behavior Skill Development Reciprocity Coalitions Networking Learn the Organizational Culture & Power Players Develop Good Working Relationships Especially with your Manager Be Loyal, Honest Team Player Gain Recognition

14. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-14 Networking on the Job Key to promotion to higher managementKey to promotion to higher management Requires social skillsRequires social skills Is about building professional relationships and friendshipsIs about building professional relationships and friendships Difficult for womenDifficult for women –Not called “the good old boy network” for nothing

15. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-15 Networking to Find a Job Most successful approachMost successful approach 2/3 of all jobs2/3 of all jobs –Word of mouth –Informal referrals Results in more new jobs than all other methods combinedResults in more new jobs than all other methods combined

16. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-16 The Networking Process Perform a self-assessment and set goalsPerform a self-assessment and set goals Create your one-minute self sellCreate your one-minute self sell Develop your networkDevelop your network Conduct networking interviewsConduct networking interviews Maintain your networkMaintain your network

17. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-17 Perform a Self-Assessment and Set Goals AccomplishmentsAccomplishments Tie accomplishments to the Job InterviewTie accomplishments to the Job Interview Set Networking GoalsSet Networking Goals

18. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-18 Create Your One-Minute Self-Sell History of your careerHistory of your career Plans for the futurePlans for the future Questions to stimulate conversationQuestions to stimulate conversation Write and PracticeWrite and Practice

19. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-19 Develop Your Network Begin with who you knowBegin with who you know Expand to people you don’t knowExpand to people you don’t know –Referrals –Volunteer work Develop ability to remember peoples’ namesDevelop ability to remember peoples’ names

20. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-20 Conduct Networking Interviews Not job interviewsNot job interviews Use network listUse network list Use many interviews to reach networking goalsUse many interviews to reach networking goals Informal or via telephoneInformal or via telephone You are the interviewerYou are the interviewer –Be prepared

21. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-21 Conducting Interviews Establish rapportEstablish rapport Deliver your one-minute self- sellDeliver your one-minute self- sell Ask prepared questionsAsk prepared questions Get additional contacts for your networkGet additional contacts for your network Ask your contacts how you might help themAsk your contacts how you might help them FollowupFollowup –Send thank-you notes –Give status reports

22. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-22 NEGOTIATION Two or more parties which are in conflict (disagreement) working to reach an agreementTwo or more parties which are in conflict (disagreement) working to reach an agreement Common in:Common in: –Job searches –Labor relations –Sales

23. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-23 Negotiation Process PlanPlan PostponementPostponement Agreement Close the deal Agreement No Agreement NegotiationsNegotiations

24. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-24 PLAN Research the other party(ies)Research the other party(ies) Set objectivesSet objectives –Lower limit –Objective –Opening Develop options & tradeoffsDevelop options & tradeoffs Be prepared to deal with questions & objections (especially unstated)Be prepared to deal with questions & objections (especially unstated)

25. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-25NEGOTIATIONS Develop rapportDevelop rapport Keep it professional, never personalKeep it professional, never personal Try to get the other person to make the first offerTry to get the other person to make the first offer “He who mentions a dollar amount first, loses”, Job Hunting adage Ask questionsAsk questions ListenListen Don’t give in too quicklyDon’t give in too quickly Never give something up for freeNever give something up for free

26. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-26 POSTPONEMENT May be advantageous or disadvantageousMay be advantageous or disadvantageous Most interested party usually tries to avoid postponementsMost interested party usually tries to avoid postponements –May try to create a sense of urgency

27. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-27 Agreement Both sides should feel good about the agreementBoth sides should feel good about the agreement Get it in writingGet it in writing Quit sellingQuit selling Start work on a personal relationshipStart work on a personal relationship

28. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-28 Disagreement Accept that agreement isn’t possibleAccept that agreement isn’t possible Learn from the failureLearn from the failure Ask the other party what you did right & wrongAsk the other party what you did right & wrong Analyze and plan for the next timeAnalyze and plan for the next time

29. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-29 Negotiation Adage “If you can’t afford to walk away, or at least convince the other side that you will walk away, you’ve already lost.”“If you can’t afford to walk away, or at least convince the other side that you will walk away, you’ve already lost.” –Convincing others you will walk away when you can’t is very tough.

30. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-30 Discussion Question #1 What are the nine influencing tactics?What are the nine influencing tactics?

31. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-31 Discussion Question #2 What are the seven types of power?What are the seven types of power?

32. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-32 Discussion Question #3 Which two types of power do effective leaders most commonly use?Which two types of power do effective leaders most commonly use?

33. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-33 Discussion Question #4 What is the similarity and differences between social exchange theory and strategic contingencies theory?What is the similarity and differences between social exchange theory and strategic contingencies theory?

34. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-34 Discussion Question #5 What are three political behaviors and four guidelines for developing political skills?What are three political behaviors and four guidelines for developing political skills?

35. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-35 Discussion Question #6 Can management order the end of power and politics in their organizations?Can management order the end of power and politics in their organizations?

36. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-36 Discussion Question #7 Should people be judged based on their social skills?Should people be judged based on their social skills?

37. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-37 Discussion Question #8 Do you believe that networking is really all that important?Do you believe that networking is really all that important?

38. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-38 Discussion Question #9 Do people really need a written networking list?Do people really need a written networking list?

39. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-39 Discussion Question #10 How many interview questions should you bring to a networking interview?How many interview questions should you bring to a networking interview?

40. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-40 Discussion Question #11 What type of situation is the goal of negotiation?What type of situation is the goal of negotiation?

41. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-41 Discussion Question #12 What are the steps in planning a negotiation?What are the steps in planning a negotiation?

42. Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-42 Discussion Question #13 What are the steps in negotiations?What are the steps in negotiations?