1. Cover for
Hill/McShane 1e
goes here

2. Managing Through Power, Influence, and Negotiation15
chapter
Managing Through Power, Influence, and Negotiation
McGraw-Hill/Irwin
Principles of Management
© The McGraw-Hill Companies, Inc., All Rights Reserved.

3. Learning Objectives
Explain why power and influence are necessary to get things done in organizations.
Identify the main sources of managerial power.
Discuss the contingencies that influence the magnitude of the manager’s power.
Outline the various tactics managers can pursue to increase their influence in an organization.
Describe what a manager can do to increase the chance of negotiating effectively.

4. Power
Power – the potential of a person , team, or organization to require others to do certain things.
Potential is emphasized because people may not have to exercise it in order to get things done
A prerequisite – another person or group must believe that it is dependent on another person or group
Countervailing power – power that subordinates have over their superiors
Learning Objective 1: Explain why power and influence are necessary to get things done in organizations.
See Text Page: 378

5. Question
The possession of power always corrupts the power holder. Do you agree? Explain.
See Learning Objective 1: Explain why power and influence are necessary to get things done in organizations.
Question
Students should be able argue against this position. It is not true for all. It is not the case of absolute power here.

6. Organizational Power
There’s no doubt that there are many greedy executives. Some are obsessed with money while others with power.
But the lure of power attracts people who often prove to be extremely poor leaders.
Those who amass the most power do not necessarily prove to be the best performers.
Very many leaders are simply not effective in basic leadership tasks.
According to one survey, between 30 and 40 percent of managers failed to give credit to their staff for work, criticized employees behind their back and even blamed them to cover up their own mistakes.
Learning Objective 1: Explain why power and influence are necessary to get things done in organizations.
The Realities of Organizational Power
This slide presents some realities of organizational power.
It argues that people who get into the power positions do not necessarily have the skills and many are simply inappropriate for the position.
According to one survey in 2005, almost half wanted to fire their boss whereas a third thought that their boss needs to be assessed by a psychologist.
Ask the students – Have they faced a job situation where the manager did not have the leadership skills but cane be described as obsessed with power due to his/her position? Explain.
Source: December 6, 2006
Source: December 6, 2006

7. Power Dependence Person A Person B Power Person B’s goals
Countervailing power
Power
Valuable resource
Learning Objective 1: Explain why power and influence are necessary to get things done in organizations.
See Text Page: 378
Person B
Person B’s goals

8. Why is Power Important to management Effectiveness?
Organizations are political entities in which different people or units control scarce resources
To meet goals, a manager must realize that he/she is dependent upon others
Managers must work to create power of his/her own in order to influence others to get things done
Learning Objective 1: Explain why power and influence are necessary to get things done in organizations.
See Text Page: 379

9. Different Perspectives
Sun Tzu
Bhagavad Gita
GREED IS GOOD
BE TOUGH
ATTACK ONLY WHEN VICTORY IS LIKELY
BEAT THE ENEMY
<< >>
On Financial Incentives
GRRED IS BAD
BE FAIR
ACT RATHER THAN REACT
SEEK HIGHER CONSCIOUSNESS
<< >>
On Managing Underlings
<< >>
On Initiative
Learning Objective 1: Explain why power and influence are necessary to get things done in organizations.
Different Perspectives
This slide presents two different and quite opposing perspectives on several fronts that can be viewed from power and influence in organizations.
To Sun Tzu, author of The Art of War, winning the battle is all about unyielding discipline. Some of Sun Tzu’s key ideas:
Greed is good, Be tough, Attack only when victory is likely, and Beat the enemy.
The Bhagavad Gita, a Hindu text contains the wisdom of Lord Krishna. It suggests that one should focus on their thoughts and actions, rather than the outcome. Key ideas:
Greed is bad, Be fair, Act rather than react, and Seek higher consciousness.
Ask the students – which of these two philosophies have the heard in different contexts? Which do they relate to?
It appears that more and more there is a shift emerging from Sun Tzu to Bhagawad Gita’s philosophy.
Could following the ideals of Sun Tzu lead to the situation of power corrupting the position holder?
Source: Business Week, October 30, 2006
<< >>
On the Ultimate Goal
Source: Business Week, October 30, 2006

10. Sources and Contingencies of Power
Sources of power:
Hierarchical position
Expertise
Control over information
Network of allies
Individual attributes
Influence over organizational outcomes
Contingencies of power:
Substitutability
Centrality
Discretion
Visibility
Learning Objective 2: Identify the main sources of managerial power.
See Text Page: 380

11. Hierarchical Power
Legitimate Power – Power deriving from an implicit agreement that people higher in a hierarchy can request certain behaviors of their subordinates
Power over Rewards and Sanctions – Managers can reward behavior that they deem consistent with company goals and punish those whose performance is below par
Power over the Allocation of Scarce Resources – “He who has the gold makes the rules.”
Learning Objective 2: Identify the main sources of managerial power.
See Text Pages:

12. Scarce Resources Work Space Capital People Plant Equipment
Learning Objective 2: Identify the main sources of managerial power.
See Text Page: 381
Plant Equipment

13. Power Through Information Control
Wheel formation (centralized information flow)
All-channel formation (decentralized information flow)
Learning Objective 2: Identify the main sources of managerial power.
See Text Page: 382
High information control

14. Attributes for Acquiring and Holding Power
Energy, endurance, and physical stamina
The ability to focus one’s energy and avoid wasted effort
Empathy, which makes it possible to read and understand others
Flexibility, particularly with respect to selecting various means to achieve one’s goals
The willingness, when necessary, to engage in conflict and confrontation
Eloquence-the ability to make points in a logical and evocative fashion
Integrity
Learning Objective 2: Identify the main sources of managerial power.
See Text Page: 383

15. Individual Attributes as Sources of Power
Learning Objective 2: Identify the main sources of managerial power.
See Text Page: 384

16. Contingencies of Power
Substitutability – the availability of alternative resources
Centrality – the degree and nature of interdependence between the power holder and others
Discretion – freedom to exercise judgment
Visibility – the extent to which a power holder is known, or visible, to others
Learning Objective 3: Discuss the contingencies that influence the magnitude of the manager’s power.
See Text Pages:

17. Influence Tactics
Silent Authority – occurs when someone complies with a request because of role expectations and the requester’s legitimate hierarchical power
Assertiveness – applying hierarchical power to influence others
Network Building – actively seeking and establishing relationships with people who may prove useful in the future
Exchange – the promise of benefits or resources in exchange for another party’s compliance with your request
Learning Objective 4: Outline the various tactics managers can pursue to increase their influence in an organization.
See Text Pages:

18. Influence Tactics (cont.)
Coalition – a group of people that comes together to cooperate in attaining a certain goal
Ingratiation – attempts to increase the extent to which someone likes you
Impression Management – the process of actively shaping one’s public image
Persuasion – the use of reason through factual evidence and logical arguments
Inoculation Effect – warning an audience you are trying to influence about opposing arguments
Learning Objective 4: Outline the various tactics managers can pursue to increase their influence in an organization.
See Text Pages:

19. Question
Dave consistently works on flattering his boss in front of others, helping and volunteering for additional work when the boss or coworkers needed, and seeking his boss’s advice on actions. It appears that Dave is utilizing which of these influence tactics?
Exchange
Appealing to a higher authority
Assertiveness
Ingratiation
See Learning Objective 4: Outline the various tactics managers can pursue to increase their influence in an organization.
See text page: 389
Answer: D

20. A Taxonomy of Influence Tactics
Reward
Punishment
Positive Expertise
Negative Expertise
Liking, Ingratiation
Gifting, Pre-giving
Debt
Aversive Stimulation
Moral Appeal
Positive Self-feeling
Positive Altercasting
Negative Altercasting
Altruism
Positive Esteem of Others
Negative Esteem of Others
Learning Objective 4: Outline the various tactics managers can pursue to increase their influence in an organization.
Maxwell & Schmitt’s Taxonomy of 16 Influence Tactics
This slide presents Maxwell & Schmitt’s Taxonomy of 16 influence tactics.
There are several similar lists and expanded and contracted taxonomies developed. These is another list of 53 tactics.
However, this list can be used to show a basic starting point in addition to the ones identified in the text. Many of them are similar to ones identified in the text.
Ask the students – How many of these have they used at different point in time? Explain.
Source:

21. Ingratiation and Influence
High
Low
Influence
High ingratiation efforts produces resistance and declining influence
Moderate levels of ingratiation produce the most influence
Learning Objective 4: Outline the various tactics managers can pursue to increase their influence in an organization.
See Text Page: 389
Low High
Extent of ingratiation

22. Consequences of Influence Tactics
Resistance
Learning Objective 4: Outline the various tactics managers can pursue to increase their influence in an organization.
See Text Page: 391
Commitment
Compliance

23. Conflict & Negotiation
Conflict– a situation that arises when one party perceives that its interests are being opposed or negatively influenced by another party
Negotiation – an interpersonal decision-making process by which two or more parties try to reach an agreement over an issue that is being disputed
Learning Objective 5: Describe what a manager can do to increase the chance of negotiating effectively.
See Text Pages:

24. Negotiation Do’s and Don’ts
Bone up
Be prepared to bail
Fly solo
Find the kahuna
Be afraid to ask for the moon
Disclose salary info
Burn the bridges
Overdo it
Learning Objective 5: Describe what a manager can do to increase the chance of negotiating effectively.
Negotiation Do’s and Don’ts
This slide offers tips on do’s and don’ts of negotiation.
Do’s:
Bone up: Advance research is one of the biggest keys to successful negotiation.
Be prepared to bail: Remember the power is in your hand, so don’t be afraid to say no.
Fly solo: Bringing a friend or significant other to tag along is a bad idea.
Find the kahuna: Who’s in charge. Find the person in a position to make a decision and talk with them.
Don’ts
Be afraid to ask for the moon: It can pay to be aggressive to a proper degree. Still, it is important to stay realistic.
Disclose salary info: In hiring situations, avoid giving out information until you’ve received an offer.
Burn the bridges: Most negotiations result in a relationship that is going to have to last.
Overdo it: Novice negotiators try to keep haggling even when they have received a fair deal, possibly because they haven’t prepared enough to know what’s fair.
Source: Playbook: Best Practices; Business Week Online
Source: Playbook: Best Practices; Business Week Online

25. Negotiating Initial Salary
Know the going rate
Settle on a range, not a number
Understand what they’re buying
Don’t make the first move
Make your case
Offer options
Learning Objective 5: Describe what a manager can do to increase the chance of negotiating effectively.
Negotiating Initial Salary
This slide presents tips for tewntysomethings for negotiating initial salaries.
With a little preparation and the right questions at the job interview, even entry-level job seekers can get a raise before they get started or at least get a better deal than accepting the first offer on the spot.
There are salary information on various different web sites that can give you average pay for your region and type of job: salary.com or payscale.com.
A range for salary gives you flexibility but one should be realistic.
For entry-level positions, employers are not paying as much attention to your technical skills but more to your qualities such as energy, enthusiasm, etc.
Avoid being first to bring up the money issue.
Once you have the number, stay positive. Ask, not demand. Take a day o r two to think it over. Make your case for increment with legitimate items, such as, moving to a higher cost of living city, or greater commute time and expense, etc.
You may be able to negotiate benefits instead of salary. Explore.
Source: The Wall Street Journal, August 22, 2006
Source: The Wall Street Journal, August 22, 2006

26. Bargaining Zone Model of Negotiation
Your resistance point
Your initial offer point
Your target point
Area of potential agreement
Learning Objective 5: Describe what a manager can do to increase the chance of negotiating effectively.
See Text Page: 393
Opponent’s resistance point
Opponent’s target point
Opponent’s initial offer point

27. Negotiating Effectively
Situational Factors
Behavioral Factors
Depends On
Learning Objective 5: Describe what a manager can do to increase the chance of negotiating effectively.
See Text Pages:
Power and Negotiation

28. Importance of Concessions with Negotiations
Enable the parties to move toward the area of potential agreement
Symbolize each party’s motivation to bargain in good faith
Tell the other party about the relative importance of the negotiating items
Learning Objective 5: Describe what a manager can do to increase the chance of negotiating effectively.
See Text Page: 395