10 Power and Influence in the Workplace McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 1

Whale Power at JP Morgan Through unconstrained power and influence, a handful of traders (including the infamous London Whale) in the London bureau of JP Morgan’s chief investment office produced a mammoth $7 billion loss. McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2

The Meaning of Power  The capacity of a person, team, or organization to influence others  Potential to change attitudes and behavior (not actual change)  People may be unaware of their power  Perception –target perceives powerholder controls a valuable resource  Power involves unequal dependence McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 3

Power and Dependence McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 4 Person B’s Goal Person B’s countervailing power over Person A Person A Person B Person A’s power over Person B Person A is perceived as controlling resources that help or hinder Person B’s goal achievement.

Model of Power in Organizations McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 5 Contingencies of Power Contingencies of Power Power over others Power over others Sources of Power Sources of Power Legitimate Reward Coercive Expert Referent Legitimate Reward Coercive Expert Referent

Deference to Authority: Le Jeu de la Mort French reality television revealed how far people are willing to submit to authority. Only 16 of the 80 contestants refused to administer the strongest shocks when another contestant gave the wrong answers. Fortunately, the other contestant was an actor who didn’t actually receive the shocks. McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 6

Legitimate Power  Agreement that people in certain roles can request certain behaviors of others  Zone of indifference -- range of behaviors for deference to authority  Norm of reciprocity -- felt obligation to help someone who has helped you  Information control -- right to distribute information to others  Creates dependence  Frames situation McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7

Expert Power  Capacity to influence others by possessing knowledge or skills that they value  Coping with uncertainty  Organizations operate better in predictable environments  People gain power by using their expertise to:  Prevent environmental changes  Forecast environmental changes  Absorb environmental changes McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 8

Other Sources of Power  Reward power  Control rewards valued by others, remove negative sanctions  Coercive power  Ability to apply punishment  Referent power  Capacity to influence others through identification with and respect for the power holder  Associated with charisma McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 9

Contingencies of Power McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 10 Contingencies of Power Contingencies of Power Substitutability Centrality Discretion Visibility Substitutability Centrality Discretion Visibility Power over others Power over others Sources of Power Sources of Power

Increasing Nonsubstitutability  Substitutability – availability of alternatives  More power when few/no alternatives  Reduce substitutability through:  Monopoly over resource  Controlling access to the resource  Differentiating the resource McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 11

Other Contingencies of Power  Centrality  Degree and nature of interdependence with powerholder  Higher centrality when (a) many people affected and (b) quickly affected  Visibility  You are known as holder of valued resource  Increases with face time, display of power symbols  Discretion  The freedom to exercise judgment  Rules limit discretion  Discretion is perceived by others McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 12

Power Through Social Networks  Social networks – people connected to each other through forms of interdependence  Generate power through social capital -- goodwill and resulting resources shared among members in a social network  Three power resources through networks  Information  Visibility  Referent power McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 13

Social Network Ties  Strong ties:  Close-knit relationships (frequent interaction, high sharing, multiple roles)  Offer resources more quickly/plentifully, but less unique  Weak ties  Acquaintances  Offer unique resources not held by us or people in other networks  Many ties  Resources increase with number of ties  Limited capacity to form weak/strong ties McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 14

Social Network Centrality  Person’s importance in a network  Three factors in centrality:  Betweenness – extent you are located between others in the network  Degree centrality -- Number of people connected to you  Closeness – stronger relationships  Example: “A” has highest centrality due to all three factors; “B” has lowest centrality McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 15 A B

Influencing Others  Influence is any behavior that attempts to alter someone’s attitudes or behavior  Applies one or more power bases  Essential activity in organizations  Coordinate with others  Part of leadership definition  Everyone engages in influence McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 16

Assertiveness Actively applying legitimate and coercive power (“vocal authority”) Reminding, confronting, checking, threatening Silent Authority Following requests without overt influence Based on legitimate power, role modeling Common in high power distance cultures more Types of Influence McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 17

Coalition Formation Group forms to gain more power than individuals alone 1. Pools resources/power 2. Legitimizes the issue 3. Power through social identity more Types of Influence (con’t) McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 18 Information Control Manipulating others’ access to information Withholding, filtering, re-arranging information

Upward Appeal Appealing to higher authority Includes appealing to firm’s goals Alliance or perceived alliance with higher status person more Types of Influence (con’t) McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 19 Persuasion Logic, facts, emotional appeals Depends on persuader, message content, message medium, audience

Types of Influence (con’t) McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 20 Exchange Promising or reminding of past benefits in exchange for compliance Negotiation, reciprocity, networking Impression Management Actively shaping or public image Self-presentation Ingratiation

Consequences of Influence McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 21 people oppose the behavior desired by the influencer motivated by external sources (rewards) to implement request identify with and highly motivated to implement requestResistanceComplianceCommitment

Consequences of Influence McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 22 ResistanceComplianceCommitment Persuasion impression mgt Exchange Soft Influence Tactics Hard Influence Tactics Silent authority Upward appeal Coalition formation Information control Assertiveness

Contingencies of Influence  “Soft” tactics generally more acceptable than “hard” tactics  Appropriate influence tactic depends on:  Influencer’s power base  Organizational position  Cultural values and expectations McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 23

Behaviors that others perceive as self-serving tactics for personal gain at the expense of other people and possibly the organization. Need to minimize scarce resources, ambiguity, reinforced political behavior Organizational Politics McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 24

10 Power and Influence in the Workplace McShane/Von Glinow OB 7e © 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 25