1. Influencing: Power, Politics, Networking, and Negotiation Chapter 4 Copyright © 2010 by South-Western/Cengage Learning All rights reserved. PowerPoint Presentation by Rhonda S. Palladi Georgia State University

2. 2  Explain the differences between position power and personal power.  Discuss the differences among legitimate, reward, coercive, and referent power.  Discuss how power and politics are related.  Describe how money and politics have a similar use.  List and explain the steps in the networking process.  List the steps in the negotiation process.  Explain the relationships among negotiation and conflict, influencing tactics, power, and politics.  Define the key terms listed at the end of the chapter. Chapter 4 Learning Outcomes

3. 3 Leadership and Influence  Leadership Is the “influencing” process of leaders and followers to achieve organizational objectives through change  Influencing Is the process of affecting others’ attitudes and behavior in order to achieve an objective

4. 4 Influence  Is required to: Gain power Play organizational politics Network Negotiate Get what you want

5. 5 Discussion Question #1 Is power good or bad for organizations?

6. 6 Power  Is the leader’s potential influence over followers  Often does not have to be used to influence followers  Used to get people to do what they otherwise would not do

7. 7 Power (cont.)  Can be seen as negative and manipulative  Power within organizations should be viewed in a positive sense  Without power, organizational objectives could not be achieved  Required for leadership

8. 8 Position Personal Derived from top management Derived from the followers based on leader’s behavior Sources of Power

9. 9 Position Power  Is derived from top management  Is delegated down the chain of command  Results from holding a management position

10. 10 Personal Power  Is derived from the followers  Is based on the leader’s behavior  Followers can have personal power over leaders  A manager should have both personal power and position power

11. 11 Rational persuasion Rational persuasion Inspirational appeal Inspirational appeal Pressure Consultation Legitimization Ingratiation Coalitions Personal appeal Personal appeal InfluencingTactics Exchange Influencing Tactics Source: Adapted from J. French and B. H. Raven. 1959. “The Bases of Social Power.” In Studies of Social Power, D. Cartwright, ed. Ann Arbor, MI: Institute for Social Research

12. 12  Legitimate power Is based on the user’s position power, given by the organization Employees agree to comply with management authority in return for the benefits of membership Most day-to-day manager–employee interactions are based on legitimate power Types of Power

13. 13  To increase legitimate power: Get management experience Work to gain the perception of power Exercise your authority regularly Use rational persuasion –Explain the need for the objective –Explain how others will benefit –Provide evidence that the objective can be met –Explain potential problems and their handling –Explain why your plan is better than others Back up your authority with rewards and punishment Types of Power (cont.)

14. 14 Types of Power (cont.)  Reward power Is based on the user’s ability to influence others with something of value to them Impacts performance expectations and achievement A leader’s power is strong or weak based on his or her ability to reward and punish Uses the exchange influence tactic

15. 15  To increase reward power: Have control over employee evaluations, raises, promotions, etc. Find out what others value, and use it to reward them Let people know you control rewards, and state your criteria for receiving them Types of Power (cont.)

16. 16  Coercive power Involves punishment and withholding of rewards to influence employee compliance Uses the pressure influencing tactic Often used by peers to enforce norms Used to maintain discipline and enforce rules Without it, employees may ignore the leader Overuse undermines the leader’s authority and creates hostile opposition Has generally been declining as an influence technique Types of Power (cont.)

17. 17  To increase coercive power: Gain authority to use punishment and withhold rewards –Make sure employees know the rules and penalties –Remain calm and encourage improvement Do not make rash threats –Do not use coercion to manipulate others or gain personal benefits Be persistent, set deadlines, and check progress often Types of Power (cont.)

18. 18  Referent power Is based on the user’s personal relationships with others Uses the personal appeals and inspirational appeals influencing tactics Stem primarily from friendship, or the employee’s attractiveness to the person using power Being liked or the desire to be liked gives referent power Is appropriate for people with weak, or no, position power, such as with peers Types of Power (cont.)

19. 19  To increase referent power: Develop people skills –Remember that not only managers have referent power Work at having good relationships with managers, peers, and subordinates Types of Power (cont.)

20. 20  Expert power Is based on the user’s skill and knowledge Makes others dependent on the person with the power Can be a factor of personal power Can lead to promotion into management People respect experts Uses rational persuasion Types of Power (cont.)

21. 21  To increase expert power: Take training and educational programs Attend trade or professional association meetings and programs –Read professional and trade journals –Get published in professional journals Keep up with new technology Project a positive self-concept Let people know about your expertise to develop a reputation –Display diplomas, licenses, publications, and awards Types of Power (cont.)

22. 22  Information power Is based on the user’s data desired by others Distortion of data can promote position Employees provide information to managers, which can also be distorted Conveying information is part of most managers’ jobs Uses rational persuasion and inspirational appeals Types of Power (cont.)

23. 23  To increase information power: Have information flow through you Know what is going on in the organization Develop and use a network of information sources Types of Power (cont.)

24. 24  Connection power Is based on the user’s relationship with influential people Is a form of politics Contacts or friends can influence persons you deal with If people know you are friendly with powerful people, they will tend to gain the perception that you have power as well Can be enhanced using the coalition influencing tactic Types of Power (cont.)

25. 25  To increase connection power: Expand your network of contacts with important managers who have power Join the “in crowd” and the “right” associations and clubs Follow the guidelines for using the coalition influencing tactic Get people to know your name –Gain all the publicity you can –Have your accomplishments known by people in power by sending notices Types of Power (cont.)

26. 26  Power can change over time  Personal power can be easily gained or lost  Abuse of power will result in loss of power  Social exchange theory explains how power is gained and lost as reciprocal influence processes occur over time between leaders and followers  Social interaction is an exchange of benefits or favors Acquiring and Losing Power

27. 27  Is the process of gaining and using power  Managers use their existing position power and politics to increase their power  Is a reality of organizational life Politics

28. 28  Politics has a negative connotation due to those who abuse political power  It is a medium of exchange  Like money, political power is neither good or bad; it is its use that determines this Politics Is a Medium of Exchange

29. 29 Can management stop the use of power and politics in their organizations? Discussion Question #2

30. 30 Coalitions CommonOrganizationalPoliticalBehaviorsCommonOrganizationalPoliticalBehaviors Common Organizational Political Behaviors Reciprocity Networking

31. 31  Is the process of developing relationships for the purpose of socializing and politicking  Contributes most to successful management advancement; more than the other three activity categories of managers: Traditional management Communication Human resource management Networking

32. 32 Reciprocity  Involves creating obligations and developing alliances, and using them to accomplish objectives  Uses the exchange influence tactic  Doing something for someone creates a debt to be collected at a future time

33. 33 Building Coalitions  Uses reciprocity and networking  Is a political influence tactic  Co-optation Getting a person whose support is needed to join a coalition

34. 34 ReciprocityCoalitions Networking Learn the organizational culture and power players Develop good working relationships, especially with your manager Be a loyal, honest team player Gain recognition Guidelines for Developing Political Skills

35. 35  Develop connection power through politicking  Learn the cultural shared values and beliefs  Learn how politics operate within the organization  Learn who has power and what makes them tick  Tailor presentations of ideas to fit the power player’s needs  Network with power players  Do favors for power players  Develop coalitions with key players  Select a mentor who is good at politics  Observe those who are good at politics and copy their behavior Learn the Organizational Culture and Power Players

36. 36  Learn to share goals and priorities with your manager  Make or beat all deadlines  Ask your manager for advice  Never let your manager be embarrassed or surprised in public because of your actions  Avoid showing up your manager in public  Include your manager in your network and coalitions  Do favors for your manager  Use the ingratiation tactic with everyone Develop Good Working Relationships, Especially with Your Manager

37. 37  Ethical behavior is important  Do not backstab or gossip  Earn others’ respect, confidence, and trust  Develop a support group or team  Remember, the trend is toward teamwork Be a Loyal, Honest Team Player

38. 38  Find ways to let the power players know that you are doing a good job  Let higher-ups know about your expertise and contributions through your network  Serve on committees and try to become an officer Gain Recognition

39. 39  Is more successful than all other methods combined for finding employment  Is also used for: Developing a business Job satisfaction Enhanced performance Salary Power Promotions  Is a learned skill that everyone struggles with, especially women Networking

40. 40  Perform a self-assessment and set goals  Create your one-minute self-sell  Develop your network  Conduct networking interviews  Maintain your network The Networking Process

41. 41  List and prioritize your talents and the characteristics of an ideal new career or job  Translate your talents into accomplishments  Tie your accomplishments to the job interview  Set networking goals Perform a Self-Assessment and Set Goals

42. 42  History of your career Include: –Your most recent career or school history –A description of the type of work or courses you have taken  Plans for the future State: –The target career you are seeking –The industry you prefer –A specific function or role  Questions to stimulate conversation Encourage two-way communication  Write your script and practice your speech Create Your One-Minute Self-Sell

43. 43  Begin with who you know  Expand to people you don’t know Referrals Volunteer work  Develop your ability to remember peoples’ names Develop Your Network

44. 44  Use your network list of people to set up a networking interview to meet your goal  May take many interviews to meet a goal  Usually a phone call or 20-minute face- to-face meeting  You are the interviewer Be prepared Conduct Networking Interviews

45. 45  Establish rapport  Deliver your one-minute self-sell  Ask prepared questions  Get additional contacts for your network  Ask your contacts how you might help them  Follow up Send thank-you notes (FEW DO!) Give status reports Conduct Networking Interviews (cont.)

46. 46  Is a process in which two or more parties are in conflict working to reach an agreement  Is a core competency in life  Common in: Job searches Labor relations Sales Negotiation

47. 47  Negotiation is often a zero-sum game; one party’s gain is the other party’s loss  Sell your ideas to convince the other party to give you what you want  Try to work toward a win-win result  All parties should believe they got a good deal Negotiating

48. 48 PlanPlan PostponementPostponement Agreement Close the deal. Agreement No Agreement Find out why for future negotiations. No Agreement Find out why for future negotiations. NegotiationsNegotiations The Negotiation Process

49. 49  Research the other party(ies)  Set objectives Specific lower limit Target objective Opening objective  Develop options and trade-offs  Be prepared to deal with questions and objections (especially unstated ones) The Negotiation Process: Plan

50. 50  Develop rapport  Focus on obstacles, not the person  Let the other party make the first offer  Listen  Ask questions  Don’t give in too quickly  Ask for something in return The Negotiation Process: Negotiations

51. 51  When you are not getting what you want, you may try to create urgency  When the other party becomes resistant, remember that a hard sell will not work  If the other party is creating urgency, be sure it is really urgent Don’t be pressured into making a deal you may regret later  If you do want to postpone, give the other party a specific time you will get back to them The Negotiation Process: Postponement

52. 52  Get it in writing  Quit selling  Start working on a personal relationship The Negotiation Process: Agreement

53. 53  Accept that agreement isn’t possible  Learn from the failure  Analyze and plan for the next time  Ask the other party what you did right and wrong The Negotiation Process: No Agreement

54. 54  It pays to be ethical with influencing tactics  Power is only unethical when used to promote your self-interest at the expense of others  Used ethically, power helps to meet organizational objectives  It is tempting to be unethical but the price is often high Ethics and Influencing

55. 55  Confront others for unethical political behavior  Report unethical behavior in others  Build networks based on mutually beneficial relationships  Tell the truth in negotiations and demand the truth from the other party  Use the stakeholders’ approach to ethics and create a win-win situation Ethics and Influencing (cont.)

56. 56 Do you believe that most managers use influencing (power, politics, networking and negotiating) for the good of the organization, or for their own personal benefit? What can be done to help managers be more ethical in influencing others? Discussion Question #3