Chapter 7 Power Politics and Leadership Power potential or ability to influence decisions and control resources Sources and Types of Power Position Power o Stem from a person s position in the organization 4 Bases of Position Power o Legitimate Power Lawful right to make a decision and expect compliance Leaders have more power than people below them Power is strengthened by titles such as CEO Chairman Authority to give employees rewards for compliance o Reward Power o Coercive Power Power to punish for non compliance Based on fear demotion is commonly used Limited power because it achieves mixed results Stems from formal control over the information people need to do o Information Power Personal Power their work o Derived from person rather than the organization 1 3 Sources of Personal Power Stemming from Behaviors o Expert Power Ability to influence others through specialized knowledge skills or abilities Bob Lutz Chrysler o Referent Power Ability to influence others through one s desirable traits and characteristics o Prestige Power Stems from a person s status and reputation Integrity also taken into consideration Power Stemming from Ownership o Executives get power as agents acting on behalf of shareholders o Strength of ownership power depends on how closely the leader is linked to shareholders and board members o Strength also comes from how much money he or she has invested in a firm Less likely to get fired if major shareholder Power Stemming from Dependencies o Dependence Perspective Person accrues power by others being dependent on him or her for things they value o Dependence power can be positional or personal o Resource dependence perspective extension of dependence theory organization requires a continuing flow of human resources money customers and clients technological inputs and materials to continue to function Subunits or individuals who can provide these accrue power o When leaders lose power to control resources power declines Power Derived from Capitalizing on Opportunity o Power can be derived from being in the right place at the right time 2 o Pays to be where the action is o Person or firm needs to have right resources to capitalize on an opportunity Power Stemming from Managing Critical Problems o Strategic Contingency Theory Suggests that units best ale to cope with the firm s critical problems and uncertainties acquire relatively large amounts of power o Important Aspect o Centrality Power a subunit acquires by virtue of its centrality The extent to which a unit s activities are linked into the system of organizational activities o A unit has high centrality when it is an integral part of the work done by another unit sales department Power Stemming from Being Close to Power o Closer a person is to power the greater the power he or she exerts o Leaders in search of more power typically maneuver toward a higher reporting position in the organization Tactics for Becoming an Empowering Leader The Nature of Empowerment o Empowerment Refers to passing decision making authority and responsibility from managers to group members o Almost any form of participative management shared decision making and delegation can be regarded as empowerment o Gretchen Spreitzer 4 components of empowerment psychological Meaning value of a work goal 3 Competence individual s belief in the capability to perform a task Self determination individual s feeling of having a choice in initiating and regulating actions Impact degree to which the leader can influence strategic administrative or operating outcomes on the job well o Full fledged empowerment includes all 4 and a 5th internal commitment Internal commitment occurs when someone is committed to a person project or program for individual motives Empowering Practices o Practices that foster empowerment supplement standard approaches to participative management such as conferring with team members before reaching a decision o Foster initiative and responsibility o Link work activities to organizational goals o Provide ample information o Allow group members to choose methods o Encourage self leadership o Establish limits to empowerment o Continue to lead o Take into account cultural differences Effective Delegation and Empowerment o Major Contributor to Empowerment is Delegation The assignment of formal authority and responsibility for accomplishing a specific task to another person o Delegation More narrow than empowerment because it deals with a specific task 4 o Delegation is motivational offers group members opportunity o Poor delegation can lead to conflict Factors That Contribute to Organizational Politics Organizational Politics merit or luck o Refers to informal approaches to gaining power through means other than Politics are Played to Gain Power either Directly or Indirectly Pyramid Shaped Organization Structure o Concentrates power at the top only so much power to distribute to the many o Bottom of organization workers have limited power except for their legal that want it rights Subjective Standards of Performance o Many people resort to organizational politics when they feel that their organization does not have an objective way of judging their performance and suitability for a promotion Environmental Uncertainty and Turbulence o Unstable and unpredictable environments lead to political behavior o Rely on organizational politics to create favorable impression because uncertainty makes it difficult to understand what it is they re supposed to be accomplishing o Corporate downsizing that leads to insecurity and uncertainty is a major contributor to office politics Emotional Insecurity their talents and skills Machiavellian Tendencies o Some people resort to political maneuvers because they lack confidence in o Some people engage in political behavior to manipulate others sometimes for their own benefit Encouraging Admiration from Subordinates 5 o Managers send out subtle signals that they want to be praised although they say they do not mean to o Admirers are more likely to receive good assignments Political Tactics and Strategies Ethical Political Tactics and Strategies o Strategies Aimed at Gaining Power Develop power contacts Control vital information Control lines of communication Do what the political environment demands Bring in outside experts Make a quick showing Remember that everyone expects to be paid back Be politically correct Be the first to accept reasonable changes o Strategies Aimed at Building