1. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-1

2. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-2 Chapter Power, Politics, and Empowerment 12

3. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-3 Power and Influence Power – the capability to get someone to do something It is the potential to influence Influence – the exercise of that capability It is a transaction in which Person B is induced by Person A to behave in a certain way It is power in action

4. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-4 Where Does Power Come From? Interpersonal Power Organizational Power Legitimate Power Reward Power Coercive Power Personal Power Expert Power Referent Power Interpersonal Power Organizational Power Legitimate Power Reward Power Coercive Power Personal Power Expert Power Referent Power Structural Power Resources Decision-Making Power Information Power Structural Power Resources Decision-Making Power Information Power

5. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-5 Characteristics of Organizational Authority: 1.It is invested in a person’s position 2.It is accepted by subordinates 3.Authority is used vertically 1.It is invested in a person’s position 2.It is accepted by subordinates 3.Authority is used vertically

6. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-6 Subordinate Responses to Different Sources of Interpersonal Power (1 of 2) The use of legitimate or reward power will typically result in compliance i.e., subordinates will obey your requests, but are unlikely to exert more than the minimal effort necessary The use of coercive power may result in resistance i.e., subordinates may only pretend to comply with your requests, and they may openly resist

7. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-7 Subordinate Responses to Different Sources of Interpersonal Power (2 of 2) The use of expert or referent power frequently results in commitment i.e., subordinates are likely to exert high levels of effort to accomplish what you ask, perhaps even exceeding what you requested

8. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-8 Structural Power (1 of 2) Power is frequently prescribed by structure within the organization Result from the nature of the organizational social system rather than from attributes of an individual The structure of an organization is the control mechanism by which the organization is governed

9. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-9 Structural Power (2 of 2) Formal Power Organizational structure creates formal power and authority i.e., by specifying certain individuals to perform specific tasks and make certain decisions Formal Power Organizational structure creates formal power and authority i.e., by specifying certain individuals to perform specific tasks and make certain decisions Informal Power Structure significantly impacts informal power i.e., through its effect on information and communication flows within the system Informal Power Structure significantly impacts informal power i.e., through its effect on information and communication flows within the system

10. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-10 Symptoms and Sources of Powerlessness (1 of 2) PositionSymptomsSources First-line supervisors (e.g., manager) Supervise too closely; fail to train subordinates; not sufficiently oriented to the management team; inclined to do the job themselves Routine, rule-minded jobs: limited lines of communication; limited advancement opportunities for themselves and their subordinates Staff professionals (e.g., corporate lawyer, human resources specialist) Create islands and set themselves up as experts; use professional standards as basis for judging work that distinguishes them from others; resist change and become conservative risk takers Their routine tasks are only adjuncts to real line job; blocked career advancement replaced by outside consultants for non-routine work

11. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-11 Symptoms and Sources of Powerlessness (2 of 2) PositionSymptomsSources Top-level managers (e.g., chief executive officer, vice president) Short-term horizon; top- down communication systems emphasized; reward followers to think like the manager; do not welcome bearers of bad news Uncontrollable lines of supply; limited or blocked lines of information about lower managerial levels; diminished lines of support because of challenges to legitimacy

12. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-12 Empowerment Process of enhancing feelings of self- efficacy among organizational members, through the identification of conditions that foster powerlessness, and through their removal by both formal organizational practices and informal techniques of providing efficacy information

13. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-13 Reasons Empowerment is not Universally Embraced: 1.Managers fear the loss of power, control, and authority 2.Employees are not able to make responsible decisions 3.Empowering employees was attempted before and it failed 4.Sharing proprietary information means leaking ideas, plans, and knowledge to competitors 5.Not everyone wants to be empowered 1.Managers fear the loss of power, control, and authority 2.Employees are not able to make responsible decisions 3.Empowering employees was attempted before and it failed 4.Sharing proprietary information means leaking ideas, plans, and knowledge to competitors 5.Not everyone wants to be empowered

14. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-14 Learning to leverage empowerment as a means to strengthen the capabilities and commitment of employees is one of the most important challenges facing managers today.

15. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-15 Increasing Your Effectiveness in Empowering Others (1 of 2) When you delegate responsibility, make certain you are also delegating authority to go along with it Be prepared to give up your managerial “parent” role and assume a “partner” role Assure your subordinates through words and deeds that it is OK to make mistakes

16. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-16 Increasing Your Effectiveness in Empowering Others (2 of 2) Information sharing is important Empowered employees must have sufficient information to be able to see the “big picture” Provide training opportunities so employees can develop skills to successfully perform new job responsibilities Performance feedback is particularly important for newly empowered employees

17. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-17 Interdepartmental Power (1 of 2) Strategic contingency theory focuses on subunit power Strategic contingency – event or activity of crucial importance to completing a project or accomplishing a goal

18. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-18 Interdepartmental Power (2 of 2) The power differential between subunits is influenced by the: degree of ability to cope with uncertainty centrality of the subunit substitutability of the subunit

19. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-19 Coping with uncertainty Coping with uncertainty Centrality Substitutability Power acquired by subunit and power differentials Power acquired by subunit and power differentials Preventing market share decline by product development Providing accurate future-based predictions Absorbing problems from other units Being in an urgent or immediacy position Being located at center of work flow Possessing needed skills or expertise Possessing only talents that are available to complete job A Strategic Contingency Model of Subunit Power CONTINGENCY EXAMPLES

20. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-20 The Illusion of Power Exercising power in an authoritative way isn’t the only way power can be exerted Power is often exerted by individuals who have only minimum or no actual power An individual may be able to significantly influence others simply because he or she is perceived to have power

21. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-21 Political Strategies and Tactics (1 of 2) Individuals and subunits continually engage in political behavior, i.e.,: Behavior that is usually outside the legitimate, recognized power system Behavior that is designed to benefit an individual or subunit, often at the expense of the organization in general Behavior that is intentional and is designed to acquire and maintain power

22. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-22 Political Strategies and Tactics (2 of 2) As a result of politically oriented behaviors, the formal power that exists in an organization is often sidetracked or blocked Political behavior results in the displacement of power

23. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-23 Political Game Playing (1 of 2) Political games are played at all organizational levels by both managers and non-managers

24. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-24 Political Game Playing (2 of 2) Games are played to: 1. resist authority (insurgency game) 2. counter the resistance to authority (counterinsurgency game) 3. build power bases (sponsorship game and coalition- building game) 4. defeat rivals (line-versus-staff game) 5. bring about organizational change (whistle-blowing game)

25. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-25 Political Influence Tactics 1. Consultation 2. Rational persuasion 3. Inspirational appeals 4. Ingratiating tactics 5. Coalition tactics 1. Consultation 2. Rational persuasion 3. Inspirational appeals 4. Ingratiating tactics 5. Coalition tactics 6. Pressure tactics 7. Legitimating 8. Personal appeals 9.Exchange tactics 6. Pressure tactics 7. Legitimating 8. Personal appeals 9.Exchange tactics

26. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-26 Frequency of Outcomes for the Use of Political Influence Tactics Influence TacticResistanceComplianceCommitment 1. Consultation18%27%55% 2. Rational persuasion473023 3. Inspiration01090 4. Ingratiation412831 5. Coalition53443 6. Pressure56413 7. Legitimating44560 8. Personal appeals253342 9. Exchange244135 Outcomes

27. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-27 Impression Management The actions individuals take to control the impressions that others form of them It is universal A significant part of behavior in organizations is motivated by the desire of organization members to be perceived in certain ways Stems from political influence tactics

28. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-28 Ethics, Power, and Politics For a manager’s behavior to be considered ethical, it must satisfy certain criteria: 1. Criterion of utilitarian outcomes 2. Criterion of individual rights 3. Criterion of distributive justice 4. Criterion of overwhelming factors

29. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-29 Using Power to Manage Effectively (1 of 2) 1.Recognize that there are multiple interests in virtually every organization 2.Know what position relevant individuals and groups hold with respect to issues important to you

30. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 12-30 Using Power to Manage Effectively (2 of 2) 3.Understand that to get things done you must have power, and in the case of those who oppose you, you must have more power than they do 4.Recognize the strategies and tactics through which organizational power is developed and used