1. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 1 CHAPTER 12 POWER, POLITICS, AND ETHICS

2. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 2 LEARNING OBJECTIVES Define power and review the bases of individual power. Explain how people obtain power in organizations. Discuss the concept of empowerment. Review various influence tactics. Provide a profile of power seekers.

3. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 3 Explain strategic contingencies and discuss how subunits obtain power. Define organizational politics and discuss its various forms. Define ethics and review the ethical dilemmas that managers face. Define sexual harassment and discuss what organizations can do to prevent it and how they should respond to allegations.

4. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 4 WHAT IS POWER? The capacity to influence others who are in a state of dependence.

5. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 5 THE BASES OF INDIVIDUAL POWER LEGITIMATE POWER is derived from a person’s position or job in an organization.

6. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 6 REWARD POWER is derived from the ability to provide positive outcomes and prevent negative outcomes.

7. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 7 COERCIVE POWER is derived from the use of punishment and threat.

8. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 8 REFERENT POWER is derived from being well liked by others. EXPERT POWER is derived from having special information or expertise that is valued by an organization.

9. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 9 EMPLOYEE RESPONSES TO BASES OF POWER

10. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 10 HOW DO PEOPLE OBTAIN POWER? Doing the “Right” Things  Extraordinary Activities  Visible Activities  Relevant Activities

11. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 11 Cultivating the “Right” People  Outsiders  Subordinates  Peers  Superiors

12. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 12 EMPOWERMENT Giving people the authority, opportunity and motivation to take initiative and solve organizational problems.

13. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 13 Having legitimate power Free from bureaucratic barriers Intrinsically motivated by power and opportunity to align extrinsic rewards with successful performance

14. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 14 POWER AND PERFORMANCE

15. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 15 INFLUENCE TACTICS Assertiveness Ingratiation Rationality

16. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 16 Exchange Upward Appeal Coalition Formation

17. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 17 RESPONSIBLE USE OF POWER McClelland argues that the most effective managers: have high n Pow;

18. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 18 use their power to achieve organizational goals; adopt a participative or coaching leadership style; and are relatively unconcerned with how much others like them.

19. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 19 WHICH SUBUNITS CONTROL STRATEGIC CONTINGENCIES? When they are able to secure scarce resources. When they are most capable of coping with uncertainty.

20. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 20 When their activities are most central to the work flow of the organization. When they are not affected by substitutability.

21. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 21 HOW SUBUNITS OBTAIN POWER Subunit power is the degree of power held by various organizational subunits, such as departments. Control strategic contingencies which are critical factors affecting organizational effectiveness controlled by a key subunit.

22. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 22 ORGANIZATIONAL POLITICS The pursuit of self-interest in an organization, whether or not this self-interest corresponds to organizational goals.

23. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 23 THE ASSOCIATION BETWEEN INFLUENCE MEANS AND INFLUENCE ENDS Power is used to pursue agreed-on goals. Acceptable means of influence are abused to pursue goals that the organization does not approve.

24. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 24 Ends that are useful for the organization are pursued through questionable means. Disapproved tactics are used to pursue disapproved outcomes.

25. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 25 MACHIAVELLIANISM The high Mach can deal face-to-face with those he or she is trying to influence.

26. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 26 The interaction occurs under fairly emotional circumstances. The situation is fairly unstructured, with few guidelines for appropriate forms of interaction.

27. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 27 NETWORKING Establishing good relations with key organizational members and/or outsiders in order to accomplish one’s goals.

28. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 28 THE DEFENCE OR PROTECTION OF SELF-INTEREST Behaviour characterized by: Stalling Overconforming Buck Passing

29. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 29 “If you can’t avoid action, avoid blame for its consequences” by: Buffing Scapegoating

30. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 30 ETHICS IN ORGANIZATIONS Systematic thinking about the moral consequences of decisions.

31. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 31 ETHICAL DILEMMAS Honest Communication Fair Treatment Special Consideration Fair Competition

32. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 32 Responsibility to Organization Corporate Social Responsibility Respect for Law

33. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 33 CAUSES OF UNETHICAL BEHAVIOUR The Role of Temptation Role Conflict

34. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 34 Competition Personality Organizational and Industry Culture

35. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 35 SEXUAL HARASSMENT: WHEN POWER AND ETHICS COLLIDE Sexual harassment is a form of unethical behaviour that stems, in part, from the abuse of power and the perpetuation of a gender power imbalance in the work place.

36. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 36 RECOMMENDATIONS TO DEAL WITH ALLEGATIONS OF SEXUAL HARASSMENT Examine the characteristics of deaf ear organizations. Foster management support and education.

37. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 37 Stay vigilant. Take immediate action.

38. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 38 GUIDELINES FOR ETHICAL SCREENING OF DECISIONS Identify the stakeholders that will be affected by any decision. Identify the costs and benefits of various decision alternatives to these stakeholders. Consider the relevant moral expectations that surround a particular decision.

39. COPYRIGHT 2001 PEARSON EDUCATION CANADA INC. CHAPTER 12 39 Be familiar with the common ethical dilemmas that decision makers face in your specific organizational role or profession. Discuss ethical matters with decision stakeholders and others. Convert your ethical judgments into appropriate action.