Learning Goals What is leadership? What is power? What role does power play in leadership? What are the different types of power that leaders possess, and when can they use those types most effectively? What behaviors do leaders exhibit when trying to influence others? Which of these behaviors is most effective? What is organizational politics? When is political behavior most likely to occur? How do leaders use their power and influence to resolve conflicts in the workplace? How do power and influence affect job performance and organizational commitment? What are the ways in which leaders negotiate in the workplace?

Discussion Questions Can a leader influence others without power? How exactly would that influence take place?

Leadership and Power Leadership is the use of power and influence to direct the activities of followers toward goal achievement. Power can be defined as the ability to influence the behavior of others and resist unwanted influence in return. Just because a person has the ability to influence others does not mean he will actually choose to do so. Power can be seen as the ability to resist the influence attempts of others.

Types of Power Organizational Power Legitimate power is derived from a position of authority inside the organization and is sometimes referred to as “formal authority.” Reward power exists when someone has control over the resources or rewards another person wants. Coercive power exists when a person has control over punishments in an organization.

Types of Power, Cont’d Personal Power OB on Screen Expert power is derived from a person’s expertise, skill, or knowledge on which others depend. Referent power exists when others have a desire to identify and be associated with a person. OB on Screen The Queen

Types of Power Figure 13-1

Donald Warren’s Power Base Study Coercive Power—Based on the recipient’s perceptions of the ability of the power holder to distribute punishment. Reward Power—Power whose basis is the ability to reward. Expert Power—Based on the special knowledge attributed to the power holder by the recipient. Referent Power—Is present when a power recipient identifies with a power holder and tried to behave like him. Legitimate Power—The recipient acknowledges that the poser holder has the right to influence him/her and he/she has an obligation to follow the directives of the power holder. New Terms Behavioral Conformity—Compliance to overt behavior, but without internalization of norms. Attitudinal Conformity—Involves both compliance and internalization of norms.

Contingencies Suggested by Warren Correlated results for different types of power influence affecting behavior and attitude: Coercive Reward Expert Legit Ref Behavioral .661 .335 -.147 .015 .136 Attitudinal .151 .306 .395 .509 .718 “Since not all personnel are professional and since attitudinal conformity is at the times both unnecessary and almost impossible to achieve, coercive and reward power can not be viewed as inherently dysfunctional.” Donald Warren From Richard H. Hall, Organizations Structure and Process. Prentice-Hall, Inc, 1972 p 214.

Guidelines for Using Power Table 13-2

Guidelines for Using Power, Cont’d Table 13-2

Criteria for Using Power Ethically Does the behavior produce a good outcome for people both inside and outside the organization? Does the behavior respect the rights of all parties? Does the behavior treat all parties equitably and fairly? 6

Contingency Factors Substitutability is the degree to which people have alternatives in accessing resources. Discretion is the degree to which managers have the right to make decisions on their own. Centrality represents how important a person’s job is and how many people depend on that person to accomplish their tasks. Visibility is how aware others are of a leader’s power and position.

The Contingencies of Power Table 13-3

Using Influence Influence is the use of an actual behavior that causes behavioral or attitudinal changes in others. Influence can be seen as directional. Most frequently occurs downward (managers influencing employees) but can also be lateral (peers influencing peers) or upward (employees influencing managers). Influence is all relative. Absolute power of the “influencer” and “influencee” isn’t as important as the disparity between them.

Upward Influence: the boss Influence Tactics Consultation Inspirational appeals Rational persuasion Ingratiation Coalition Exchange tactics Upward appeals Pressure Upward Influence: the boss Lateral Influence: a coworker Downward Influence: an employee Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 16

Influence by Consultation This new attendance plan is controversial. How can we make it more acceptable? The person seeks your participation in making a decision or planning how to implement a proposed strategy, policy, or change.

Influence by Rational Persuasion This new procedure will save us over $150,000. The person uses logical arguments and factual evidence to persuade you that a proposal or request is viable and likely to result in the attainment of task objectives.

Influence by Inspirational Appeals Getting that account will be tough, but I know you can do it. The person makes an emotional request or proposal that arouses enthusiasm by appealing to your values and ideals, or by increasing your confidence that you can do it.

Influence by Ingratiation Only you can do this job right! The person seeks to get you in a good mood or to think favorably of him or her before asking you to do something. Information on slides 23-27 from the first two columns from G. Yuki and C. M. Falbe. “Influence Tactics and Objectives in Upward, Downward, and Lateral Influence Attempts.” Journal of Applied Psychology 75 (1990): 132-140. Copyright © 1990 by the American Psychological Association. Reprinted with permission.

Influence Tactics, Cont’d Pressure is the use of coercive power through threats and demands. Coalitions occur when the influencer enlists other people to help influence the target. Influence tactics tend to be most successful when used in combination. The influence tactics that tend to be most successful are those that are “softer” in nature. Rational persuasion, consultation, inspirational appeals, and collaboration

Influence Tactics and Their Effectiveness Figure 13-2

Response to Influence Tactics Engagement occurs when the target of influence agrees with and becomes committed to the influence request (behaviors and attitudes). Compliance occurs when targets of influence are willing to do to what the leader asks, but they do it with a degree of ambivalence (behaviors but not attitudes). Resistance occurs when the target refuses to perform the influence request and puts forth an effort to avoid having to do it.

Responses to Influence Attempts Figure 13-3

Discussion Question What would it take to have a “politically free” environment? Is that possible?

Organizational Politics Organizational politics can be seen as actions by individuals that are directed toward the goal of furthering their own self-interests. Political skill is the ability to effectively understand others at work and use that knowledge to influence others in ways that enhance personal and/or organizational objectives. Networking ability, or an adeptness at identifying and developing diverse contacts. social astuteness, or the tendency to observe others and accurately interpret their behavior.

The Organizational Politics Process Figure 13-4

Conditions Encouraging Political Activity Unclear goals Autocratic decision making Ambiguous lines of authority Scarce resources Uncertainty

Managing Political Behavior Maintain open communication Clarify performance expectations Use participative management Encourage cooperation among work groups Manage scarce resources well Provide a supportive organizational climate 17

Conflict Resolution There are five different styles a leader can use when handling conflict, each of which is appropriate in different circumstances. The five styles can be viewed as combinations of two separate factors: how assertive leaders want to be in pursuing their own goals and how cooperative they are with regard to the concerns of others.

How Assertive? How Cooperative? How important is the issue in conflict to you as the leader? How important is the issue to those in conflict? How cooperative have the conflicting parties been in the past? How cooperative are the conflicting parties now? Is the conflict rooted in task or personality?

Styles of Conflict Resolution Figure 13-5

Conflict Resolution, Cont’d Competing (high assertiveness, low cooperation) occurs when one party attempts to get his or her own goals met without concern for the other party’s results. Avoiding (low assertiveness, low cooperation) occurs when one party wants to remain neutral, stay away from conflict, or postpone the conflict to gather information or let things cool down. Accommodating (low assertiveness, high cooperation) occurs when one party gives in to the other and acts in a completely unselfish way.

Conflict Resolution, Cont’d Collaboration (high assertiveness, high cooperation) occurs when both parties work together to maximize outcomes. Compromise (moderate assertiveness, moderate cooperation) occurs when conflict is resolved through give-and-take concessions.

When to Use Conflict Resolution Styles Table 13-4

When to Use Conflict Resolution Styles Table 13-4

How Important Is Power and Influence Power and influence are moderately correlated with job performance. Power and influence are moderately related to organizational commitment. When a leader draws on personal sources of power, such as expert power and referent power, a stronger emotional bond can be created with the employee, boosting affective commitment. The effective use of such power should increase job satisfaction and a sense of trust in the leader, all of which are associated with increased commitment levels.

Effects of Power and Influence on Performance & Commitment Figure 13-7

Negotiations Negotiation is a process in which two or more interdependent individuals discuss and attempt to come to an agreement about their different preferences. Distributive bargaining involves win–lose negotiating over a “fixed-pie” of resources. Integrative bargaining is aimed at accomplishing a win–win scenario.

Takeaways Leadership is the use of power and influence to direct the activities of followers toward goal achievement. Power is the ability to influence the behavior of others and resist unwanted influence in return. Power is necessary, in that it gives leaders the ability to influence others. Leaders have five major types of power. There are three organizational forms of power: Legitimate power, reward power, and coercive power. There are two personal forms of power: Expert power and referent power. These types of power can be used most effectively when leaders are central to the work process, highly visible, have discretion, and are the sole controllers of resources and information.

Takeaways, Cont’d Leaders can use 10 different influence tactics to achieve their objectives. The most effective are rational persuasion, consultation, inspirational appeals, and collaboration. The least effective are pressure and the forming of coalitions. Tactics with moderate levels of effectiveness are ingratiation, exchange, personal appeals, and apprising. Organizational politics are individual actions that are directed toward the goal of furthering a person’s own self-interests. Political behavior is most likely to occur in organizational situations in which individual outcomes are uncertain.

Takeaways, Cont’d Leaders use power and influence to resolve conflicts through five conflict resolution styles: avoidance, competing, accommodating, collaborating, and compromising. The most effective and also most difficult tactic is collaboration. Power and influence have moderate positive relationships with job performance and organizational commitment. However, for these beneficial effects to be realized, leaders must wield their power effectively and rely on effective influence tactics. Leaders use both distributive and integrative bargaining to negotiate outcomes.