1 Chapter 12 Leadership Power and Influence

2 Transactional versus Transformational Leadership Transactional leadership a transaction or exchange process between leaders and followers Transformational Leadership leadership characterized by the ability to bring about significant change in followers and the organization See page 357 for differences

3 Ex. 4.5 Distinguishing Characteristics of Charismatic and Noncharismatic Leaders Noncharismatic Leaders Charismatic Leaders LikablenessShared perspective makes leader likable Shared perspective and idealized vision make leader likable and an honorable hero worthy of identification and imitation TrustworthinessDisinterested advocacy in persuasion attempts Passionate advocacy by incurring great personal risk and cost Relation to status quoTries to maintain status quo Creates atmosphere of change Future goalsLimited goals not too discrepant from status quo Idealized vision that is highly discrepant from status quo

4 Noncharismatic Leaders Charismatic Leaders ArticulationWeak articulation of goals and motivation to lead Strong and inspirational articulation of vision and motivation to lead CompetenceUses available means to achieve goals within framework of the existing order Uses conventional means to transcend the existing order BehaviorConventional, conform to norms Unconventional, counter- normative InfluencePrimarily authority of position and rewards Transcends position; personal power based on expertise and respect and admiration for the leader

5 Dark side of charisma Personalized:  self-aggrandizing, nonegalitarian, exploitative.  Based on caring about self.  Detrimental impact on long-term organizational purpose Socialized:  empowering, egalitarian, supportive.  Based on valuing others.  Related to successful organizational purpose

6 Power and Influence Power  The ability of one person or department in an organization to influence other people to bring about desired outcomes Influence  The effect a person’s actions have on the attitudes, values, beliefs, or actions of others Authority The right to influence another person

7 Ex Five Types of Leader Power Legitimate Reward Coercive Position Power Expert Referent Personal Power

8 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. Should be reserved for disciplinary situations. Legitimate Power - agent and target agree that agent has influential rights, based on position and mutual agreement Referent Power - based on interpersonal attraction. Example would be a mentor. Can have a dark side. Expert Power - agent has knowledge target needs

9 Ex Responses to the Use of Power ComplianceResistanceCommitment Position PowerPersonal Power appropriate use excessive use

10 Power: Compliance or Effectiveness Compliance: Focused on doing things right (management)  Reward, Coercive, Legitimate power  Least effective but most often used my managers  Followers do just enough work as is necessary to satisfy the leader Effectiveness: focused on doing the right thing (leadership)  Referent, expert power  Develop through interpersonal relationships with employees

How to spot an asshole (Sutton, 2007) 1. After talking to the alleged asshole, does the ‘target” feel oppressed, humiliated, de- eneergized, or belittled by the person? In particular, does the target feel worse about him or herself? 2. Does the alleged asshole aim his or her venom at people who are less powerful rather than at those people who are more powerful? (Kiss up, kick down)

Ex Characteristics That Affect Dependency and Power in Organizations Non substitutability Leader has control over: Resources seen as unimportant Widely available resources Resources with acceptable substitutes Low dependency on leader = lower power Leader has control over: Resources seen as very important Scarce resources Resources with no substitutes High dependency on leader = higher power Importance Scarcity Resources: e.g. jobs, rewards, financial support, expertise, materials, information, time

13 Ex Strategic Contingencies that Affect Leader Power in Organizations Increased Power Interdepartmental Dependency Control over Information Organizational Centrality Coping with Uncertainty

14 Politics Activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices People who want to increase their power (influence) make sure their activities are visible and appreciated by others.

15 Conditions that encourage political activity Unclear goals Autocratic decision making Ambiguous lines of authority Scarce resources Uncertainty Performance appraisal process

16 Ex Seven Principles for Asserting Leader Influence 1. Use rational persuasion 2. Encourage people to like you (be likeable) 3. Rely on the rule of reciprocity 4. Develop allies 5. Ask for what you want 6. Remember the principle of scarcity: when things are less available, the become more desirable. Learn to frame requests and offers to highlight unique benefits and exclusive information being provided. 7. Extend formal authority with expertise, credibility, and trust.

17 Ex Guidelines for Ethical Action Is the action consistent with the organization’s goals, rather than being self-motivated purely by self- interest? Does the action respect the rights of individuals and groups affected by it? Does the action meet the standards of fairness and equity? Would you wish others to behave in the same way if the action affected you? Ethical Choice

18 Dean’s Disease (extra reading) What is the dean’s disease? What are the three reasons why the dean’s disease occurs? How do “true leaders” act (p. 168) What are the safeguards? What are the suggestions for staying on course?