Chapter 11 Power and Political Behavior

Chapter 11 Power and Political Behavior
1 Describe the concept of power. 2 Identify forms and sources of power in organizations. 3 Describe the role of ethics in using power. 4 Identify symbols of power and powerlessness in organizations. 5 Define organizational politics and understand the role of political skill and major influence tactics. 6 Identify ways to manage political behavior in © 2009 Cengage Learning. All rights reserved.

Concepts of Power Power – the ability to influence another person Influence – the process of affecting the thoughts, behavior, and feelings of another person Authority – the right to influence another person © 2009 Cengage Learning. All rights reserved. 2

Zone of Indifference the range in which attempts to influence a person will be perceived as legitimate and will be acted on without a great deal of thought Zone of Indifference Managers strive to expand the zone of indifference Z o n e o f I n d i f f e r e n c e © 2009 Cengage Learning. All rights reserved. 3

Beyond the Book: Football Tickets and Power Disputes
Prompted by the Denver Broncos' crackdown on season ticket resales in 2007, Senator Lois Tochtrop is attempting to pass a bill granting more resale rights to ticketholders. Ticket owners and Broncos executives dispute whether the team has the authority to control the price and avenues through which fans may legitimately resell their tickets. Broncos execs claim that they are attempting to stop ticket-scalping as a business for profit, but others question whether the Broncos' policies have the fans best interests at heart. SOURCE: T. Hoover, "Bid to Ban Broncos' Ticket Rules Has Fans," The Denver Post (January 13, 2008): Bid to Ban Broncos' Ticket Rules Has Fans By Tim Hoover Broncos fans — and ticket holders for any other sports team — would be able to sell their season tickets for any price they can fetch and to whomever they please under a bill sponsored by Sen. Lois Tochtrop. The Thornton Democrat said the bill was prompted by the Broncos' crackdown last year on fans who were selling their season tickets online or through brokers. A letter from the Broncos to season ticket holders in April reminded them that "the only authorized outlets for Denver Broncos ticket sales are the Broncos Ticket Office and Ticketmaster." Fans selling their tickets through newspapers, the Internet or any other media could face losing their season tickets, the letter said. Tochtrop said the policy means even people trying to sell their tickets to neighbors or through the office bulletin board could lose their season tickets. "These (tickets) are the Broncos season-ticket holders' property," Tochtrop said. "It's not the Broncos' property." Kirk Dyer, executive director of ticket operations for the Broncos, said the tickets are "revocable licenses" that the franchise can take back for any reason. He said the team has always prohibited reselling tickets for a profit and the advertising of tickets for resale. However, he said the Broncos have never been able to stop fans from reselling their tickets to friends or co-workers. "It's just like when you ask your neighbor if he wants to buy them. We know that happens," Dyer said. It's reselling tickets for a profit and advertising them for sale that the Broncos are trying to stop, he said. "The bottom line is we don't want to see our fans pay more than what the ticket is worth," Dyer said. "We want people to pay a fair price." Some revocations Dyer would not comment on Tochtrop's proposal, filed as Senate Bill 24. He confirmed the team has revoked the season tickets of some fans for violating resale polices. Dyer wouldn't give an exact number but said it was "definitely less than 100." The Broncos in 2006 began a service with Ticketmaster that allows for season ticket holders to resell tickets they can't use. Buyers have to pay a service fee on the tickets, and the Broncos get a cut of the service fee. Dyer would not say what the Broncos' take on the service fee is, adding that there are costs to operating the ticket resale service. One fan who has had Broncos season tickets for 35 years said he had been reselling his unused tickets through a broker until he got the letter from the Broncos last year. Terry asked that only his first name be used, saying he worried the Broncos would take away his season tickets if they found out about his past resales through a broker. "They want us to be season ticket holders and come to the games, and then they want to turn around and limit us on what we can do with the tickets," Terry complained. Being able to sell his unused tickets when a team has a winning season makes up for the bad years, he said. "If they have a poor season, nobody wants to buy the tickets." Monopoly hurts consumers Gary Adler, general counsel for the National Association of Ticket Brokers, said the Broncos' policy hurts fans. The team doesn't allow its tickets to be sold above face value on its resale service, but it also doesn't allow tickets to be sold below that value, Adler pointed out. Consumers suffer both ways while the Broncos create a monopoly over the tickets, he said. "It's disingenuous for teams to say we're prohibiting this while they're participating in" ticket resales, Adler said. The Broncos' actions are similar to those of the New England Patriots, which sued San Francisco-based StubHub, an online reseller, to learn the names of Patriots ticket holders who had resold tickets. © 2009 Cengage Learning. All rights reserved.

Sources of Organizational Power:
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 Legitimate Power – agent and target agree that agent has influential rights, based on position and mutual agreement INTERPERSONAL © 2009 Cengage Learning. All rights reserved. 4

Sources of Organizational Power
Referent Power – based on interpersonal attraction Expert Power – agent has knowledge target needs INTERPERSONAL © 2009 Cengage Learning. All rights reserved. 4

Which Power Is Most Effective?
Expert Power! Strong relationship to performance & satisfaction Transfers vital skills, abilities, and knowledge within the organization Employees internalize what they observe & learn from managers they consider “experts” © 2009 Cengage Learning. All rights reserved. 5

Ways groups hold power over other groups Ability to cope with uncertainty High degree of centrality - functionality central to organization’s success Nonsubstitutability - group’s activities are indispensable INTERGROUP © 2009 Cengage Learning. All rights reserved. 9

Information Power access to and control over important information Formal/informal position in communication network Interpreting information when passing it on (the spin) © 2009 Cengage Learning. All rights reserved.

[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? © 2009 Cengage Learning. All rights reserved. 6

Beyond the Book: O.C. Sheriff on Trial
Early in 2008, Orange County Sheriff Michael Carona resigned from office to concentrate on fighting corruption charges leveled against him. According to federal accusations, Carona brokered his power for gifts and kickbacks. SOURCE: H.G. Reza, "O.C. Sheriff Faces June Trial on Corruption Charges," The Los Angeles Times (November 15, 2007): O.C. sheriff faces June trial on corruption charges By H.G. Reza, Los Angeles Times Staff Writer A federal judge Wednesday set June 10, 2008, for the trial of indicted Orange County Sheriff Michael S. Carona, his wife, Deborah, and his former mistress, Debra V. Hoffman. The Caronas were also cleared to contact two people considered potential witnesses against them, including their tax preparer. U.S. District Judge Andrew J. Guilford called the June date firm unless new charges were filed against the defendants or others were charged. Assistant U.S. Atty. Brett A. Sagel said the trial would last about 30 days. Carona is accused of misusing his office to enrich himself and others, including his wife and Hoffman, who is identified in the federal indictment as his longtime mistress. They were charged in a 10-count indictment unsealed last month. Defense attorneys complained Wednesday that the government was not moving fast enough in turning over discovery items, including witness statements. The issue will remain unresolved until Guilford hears additional motions. As part of the day's proceedings, the sheriff's attorney, H. Dean Steward, and Deborah Carona's attorney, Dave Wiechert, asked the judge to modify an order that prohibits the couple from contacting potential witnesses. Steward said that prosecutors listed about 30 people, some of whom are close friends of the Caronas -- including their tax preparer and Deborah Carona's best friend. Former Orange County Assistant Sheriff Donald Haidl was the only witness identified at the hearing; the rest of the list is sealed. But it is unlikely that Haidl and Carona will have any contact, given that Haidl pleaded guilty to a tax offense and agreed to cooperate with prosecutors against Carona. He surreptitiously recorded at least one meeting with Carona at the request of the FBI. Steward called the no-contact order "unnecessary and cruel" because it strips the Caronas of their friends' support. Wiechert suggested it was unconstitutional because it deprived the couple of the freedom to associate with their friends. The attorneys asked the judge to allow the Caronas to associate with some people on the list on the condition that they not discuss the case. Sagel reminded Guilford that the no-contact order was issued because Carona allegedly tried to persuade Haidl to change his testimony. Allowing the Caronas to meet with potential witnesses but ordering them not to discuss the case would be unenforceable, he said. Guilford said the government's request to keep the Caronas away from witnesses on the list had "some merit" but also expressed concern that the list may be too long. He asked defense attorneys and prosecutors to agree on who on the list the Caronas can contact socially and who they should stay away from. Guilford said it was permissible for the couple to contact their tax preparer and someone identified only as S.P.M., who wanted to attend a social function with the Caronas on Wednesday night at which a family member was to be honored. Steward said the couple would simply thank their friend for attending, shake hands and hug. Guilty or innocent, Corona’s case serves as a reminder of the two faces of power and the dangers of personal power. © 2009 Cengage Learning. All rights reserved.

Successful Power Users
Have high need for social power Approach relationships with a communal orientation Focus on needs and interests of others belief in the authority system preference for work and discipline belief in justice altruism © 2009 Cengage Learning. All rights reserved. 8

Power Analysis: A Broader View
Organizational Power Coercive Power – influence through threat of punishment, fear, or intimidation Utilitarian Power – influence through rewards and benefits Normative Power – influence through knowledge of belonging, doing the right thing © 2009 Cengage Learning. All rights reserved.

Power Analysis: A Broader View
Organizational Membership Alienative Membership – members feel hostile, negative, do not want to be there Calculative Membership – members weigh benefits and limitations of belonging Moral Membership – members have positive organizational feelings; will deny own needs © 2009 Cengage Learning. All rights reserved.

Beyond the Book: Etzioni’s Power Analysis
Type of Membership Alienative Calculative Moral Coercive Utilitarian Normative Type of Power SOURCE: Adapted from Amitai Etzioni, Modern Organizations (Upper Saddle River, N. J.: Prentice-Hall, 1964), Reprinted by permission of Pearson Education, Inc. Upper Saddle River, N.J. © 2009 Cengage Learning. All rights reserved. 10

Kanter’s Symbols of Power
Intercede for someone in trouble Obtain placements for favored employees Exceed budget limitations Procure above-average raises for employees Place items on meeting agendas Access to early information Have top managers seek out their opinion © 2009 Cengage Learning. All rights reserved. 11

Kanter’s Symbols of Powerlessness
First-line Supervisors overly close supervision inflexible adherence to rules do job rather than train Staff Professionals resistance to change turf protection Top Executives budget cuts punishing behaviors top-down communications Managers assign external attribution blame others or environment Key to overcoming powerlessness: share power and delegate decision making 12

Korda’s Power Symbols Power – there are more people who inconvenience themselves on your behalf than there are people on whose behalf you would inconvenience yourself Status – a person’s relative standing in a group based on prestige and deference © 2009 Cengage Learning. All rights reserved. 13

Organizational Politics
the use of power and influence in organizations © 2009 Cengage Learning. All rights reserved.

Conditions Encouraging Political Activity
Unclear goals Autocratic decision making Ambiguous lines of authority Scarce resources Uncertainty © 2009 Cengage Learning. All rights reserved.

Effective Political Characteristics
What characteristics do effective political actors possess? ? © 2009 Cengage Learning. All rights reserved. 15

Beyond the Book: Evaluate Your Political Potential
Personal Characteristics of Effective Political Actors: Articulate Sensitive Socially adept Competent Popular Extraverted Self-confident Aggressive Ambitious Devious “Organization man or woman” Highly intelligent Logical 1. Which characteristics do you possess? Which do you need to work on? Ask a friend what characteristics you possess. 2. On the basis of the table, are you an effective political actor? Explain. 3. Can we assume that all of these characteristics are worth having? Evaluate Your Political Potential Examine the following list and answer the questions that follow it. Personal Characteristics of Effective Political Actors Personal Characteristic Behavioral Example Articulate • Must be able to clearly communicate ideas. Sensitive • Must be sensitive to other individuals, situations, and opportunities. Socially adept • Must understand the social norms of the organization and behave so as to be perceived by influential others as “fitting in well.” Competent • Must have the necessary skills and qualifications. Popular • Must be liked or admired by others in the organization. Extraverted • Must be interested in what happens outside of him or her. Self-confident • Must have confidence in his or her abilities. Aggressive • Must be self-assertive and forceful. Ambitious • Must be eager to attain success. Devious • Must be willing to use any tactic to get his or her way. “Organization man or woman” • Must emphasize the well-being of the organization. Highly intelligent • Must be able to use his or her knowledge to solve problems. Logical • Must be capable of reasoning. 1. Which characteristics do you possess? Which do you need to work on? Ask a friend what characteristics you possess. 2. On the basis of the table, are you an effective political actor? Explain. 3. Can we assume that all of these characteristics are worth having? SOURCE: Table from “Organizational Politics: Tactics and Characteristics of Its Actors” by R. N. Allen, D. L. Madison, L. W. Porter, P. A. Renwick, and B. T. Mayes. Copyright © 1979 by The Regents of the University of California. Reprinted from the California Management Review, Vol. 22, No. 1, Fall 1979, 77–83. By permission of The Regents. © 2009 Cengage Learning. All rights reserved.

Influence Tactics Consultation Upward Influence: the boss
Inspirational appeals Rational persuasion Ingratiation Coalition Exchange tactics Upward appeals Pressure Upward Influence: the boss Lateral Influence: a coworker Downward Influence: an employee © 2009 Cengage Learning. All rights reserved. 16

CONSULTATION This new attendance plan is controversial. How can we make it more acceptable? INFLUENCE BY The person seeks your participation in making a decision or planning how to implement a proposed strategy, policy, or change. © 2009 Cengage Learning. All rights reserved.

RATIONAL PERSUASION This new procedure will save us over $150,000. INFLUENCE BY 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. © 2009 Cengage Learning. All rights reserved.

INSPIRATIONAL APPEALS
Getting that account will be tough, but I know you can do it. INFLUENCE BY 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. © 2009 Cengage Learning. All rights reserved.

INGRATIATION Only you can do this job right! INFLUENCE BY 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 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): Copyright © 1990 by the American Psychological Association. Reprinted with permission. © 2009 Cengage Learning. All rights reserved.

[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 © 2009 Cengage Learning. All rights reserved. 17

Managing Up: The Boss Understand Your Boss and Her Context
Her goals and objectives The pressures on her Her strengths, weaknesses, blind spots Her preferred work style Assess Yourself and Your Needs Your own strengths and weaknesses Your personal style Your predisposition toward dependence on authority figures

Managing Up Develop and Maintain a Relationship that Fits both your needs and styles Is characterized by mutual expectations Keeps your boss informed Is based on dependability and honesty Selectively uses your boss’s time and resources THE BOSS SOURCE: Information on slides adapted and reprinted by permission of Harvard Business Review. From J. J. Gabarro and J. P. Kotter, “Managing Your Boss,” Harvard Business Review (January-February 1980): Copyright© 1980 by the Harvard Business School Publishing Corporation; all rights reserved. © 2009 Cengage Learning. All rights reserved. 20

Empowerment’s Four Dimensions
Meaning – fit between the work role and the employee’s values and beliefs Competence – belief that one has the ability to do the job well E2s Self-determination – having control over the way one does one’s work Impact – belief that one’s job makes a difference within the organization © 2009 Cengage Learning. All rights reserved. 22

[Guidelines for Empowering]
Express confidence in employees Set high performance expectations Create opportunities for participative decision making Remove bureaucratic constraints that stifle autonomy Set inspirational and meaningful goals © 2009 Cengage Learning. All rights reserved. 23

Employee Empowerment Grid
Implement Follow-up Alt. Choice Alt. Eval Alt. Dev Problem Id. Point D Mission Defining Point E Self-management Point C Participatory Empowerment Decision-Making Authority over Job Context Point A No Discretion Point B Task Setting Alt. Choice Implement Follow-up Problem Id. Alt. Dev Alt. Eval Decision-Making Authority over Job Content Amitai Etzioni, Modern Organizations, 1964, pp Englewood Cliffs: Prentice Hall. 24

Beyond the Book: Over-Empowerment?
Empowered, self-directing scientists at Merck & Company have pursued research on new drugs, attempting to advance the pharmaceutical field— but their studies have failed to produce results, costing Merck considerable time and money. Merck—Empowerment Backfires Merck & Company, the pharmaceutical giant, is in trouble. Its five biggest selling drugs lost their patent protection, and the company has been unable to make any earth shattering discoveries of new drugs to replace them. CEO Ray Gilmartin has refused to play the merger game, and unlike other CEOs in the industry, has so far not pursued buying up smaller companies with good drugs in development. Instead, he has placed huge faith in Merck’s scientists. But is that faith misplaced? Merck has a reputation for having the best scientists in the industry, but some claim that Gilmartin has grown a culture of scientific arrogance that is harming the company. He refused to go after “me too” drugs—copies of drugs that other companies introduced. “We go for novel medicines that are true advances,” Gilmartin stated. He gave his research scientists a great amount of power because he was not a scientist himself. One example of this empowerment involved a diabetes drug that early research showed caused tumors in mice. Scientists argued that despite early studies showing the drug wasn’t viable, research should continue, and it did until the drug was finally axed, costing the company considerably in terms of time and money. More than ten years of effort went into testing aprepitant, a revolutionary depression drug that set Merck apart from its competitors, who were concentrating on drugs that work on serotonin. Unfortunately, studies showed that the drug was no more effective than a placebo. Profits fell flat, and 3,200 employees were laid off. Will Gilmartin last two more years until his retirement? Will Merck change its culture of scientific arrogance in order to survive? Only time will tell. SOURCE: J. Simons, “Merck’s Man in the Hot Seat,” Fortune (February 23, 2004): 111–114. How much empowerment is too much? How do you strike a balance between directed leadership and allowing for individual initiative? © 2009 Cengage Learning. All rights reserved.

Finkelstein: Why Executives Fail
See themselves and their companies as dominant, without peers Have all the answers Eliminate those not 100% behind them Rely on what worked in the past No clear boundaries between personal interests and corporate interests © 2009 Cengage Learning. All rights reserved.

Using Power Effectively
Use power in ethical ways Understand and use all of the various types of power and influence Seek out jobs that allow you to develop your power skills Use power tempered by maturity and self-control Accept that influencing people is an important part of the management job © 2009 Cengage Learning. All rights reserved. 25

Chapter 11 Power and Political Behavior

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