Organizational Psychology winter 2017/2018 Lecture 10 Jolanta Babiak Power and influence Organizational Psychology winter 2017/2018 Lecture 10 Jolanta Babiak

What is power? Power is a capacity or potential to influence the behavior of others so that they act according to the wishes of a person(s) in power Power is a potential – it can be used but doesn’t have to A person A can have power over other person B as long as she’s (A) got something that person B desires Important aspect of power is a function of dependence Research on power focuses on tactics for gaining compliance Where does power come from?

Formal power Coercive power – is based on the fear of negative consequences for not complying: dismissing, suspending, demoting, unpleasant work, embarrassing comments, withholding information Reward power – produces positive benefits if these are valued by the recipients: controlling pay raises, interesting work assignments, recognition, promotion Legitimate power – represents the formal authority to control and use organizational resources as enabled by position held in organization; members shall accept the authority of a position

Personal power Expert power – is based on the influence a person has due to his expertise, skill or specific knowledge; companies to great extent depend on experts to achieve their goals Referent power – is based on identification with a person because of his possessions of desirable resources or personal traits; it develops out of admiration of another person – why are celebrities payed so much money to endorse products in commercials? Expert and referent power are positively related to employee satisfaction with supervision, organizational commitment and job performance Leaders in position of power pay greater costs for unfair/unethical behavior and are awarded greater recognition for success

Dependence If someone is in control of something others require or desire they depend on the person who possesses it If a person can rely on his own options the less he is dependent upon others; that’s why companies do not rely on one supplier but multiple; so many of us aspire to financial independence Importance creates dependence – in companies these will be groups which control important resource, e.g. marketing department in P&C, engineering department at Audi Scarcity creates dependence – e.g. when supply of labor is low relative to demand workers can negotiate better compensation and other benefits No substitutability – the fewer substitutes for the resource the more power that resource has

Power tactics Legitimacy - relying on authority position Rational persuasion – presenting logical arguments and factual evidence Inspirational appeal – developing emotional commitment Consultation – involvement in decision making Exchange – functions as a reward for compliance Personal appeal – compliance based on friendship or loyalty Ingratiation – using flattery or friendly behavior Pressure – using warnings and threats Coalitions – recruiting others to have more persuasive power

Power and organizational politics Using power to affect decisions in organizations Attempt to influence the distribution of advantages in the organization Political behavior lies outside of specified job requirements Most managers think political behavior is a major part of organizational life It’s possible for an organization to be politics free, but it is unlikely Organizational politics behavior may be also labeled as effective management – depending on who speak: observer or maker Two categories of factors contribute to political behavior: individual and organizational

Bibliography Robbins, S. P., Judge, T. A. (2013). Organizational behavior. New Jersey: Person education, Inc. Whetten, D. A., Cameron K. S. (2011). Developing Management Skills. New Jersey: Person education, Inc.