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Berkeley UGBA 105 - Power, politics, & networks in Organizations

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UGBA105: Organizational BehaviorPower and Politics: Class AgendaSlide 3Power and politics in organizationsPower as a dirty wordLeadership is power; but is all power leadership?Contrasts in presidential powerMore powerful politiciansNiccolo Machiavelli (1469-1527)What’s power for?HP’s messy (and very public) politicsManaging power and politicsH. Ross Perot Founder and CEO, Electronic Data Services and Presidential Candidate, 1992 and 1996Managers’ attitudes toward workplace politicsThe myth of the “good employee”What personal qualities are likely to serve you well in organizational politics?Where do organizational politics come from?What are the downsides to organizational politics?Bob Ebeling: Manager of the Rocket Ignition System at Morton-ThiokolWhat are the upsides (if any)?Which kind of organization has the most politics?How should you manage power and politics “down”?Power and politics as the management of resource dependencies (Or how to trade on scarce resources)What kinds of resources can you leverage?Slide 25Political strategiesSlide 27Restructurings for political endsNetworking strategiesSlide 30Slide 31Networking strategy: Exploit structural holes (My enemy’s enemy is my friend)Conclusions: Power, politics, & networkingWednesday: Donna Dubinsky caseSlide 35Donna Dubinsky’s 10 lessonsUGBA105: UGBA105: Organizational BehaviorOrganizational BehaviorProfessor Jim LincolnProfessor Jim LincolnWeek 7: Week 7: Power, politics, & networks in Power, politics, & networks in OrganizationsOrganizationsWalter A. Haas School of BusinessUniversity of California, Berkeley2Power and Politics:Power and Politics:Class AgendaClass Agenda•Review forms of power in organizations•Consider how power and politics can be good as well as bad for organizations •Discuss managing politics “up” and “down” •Analyze power as the management of resource dependencies•Examine political and networking strategies for advancing your goals over the opposition3Strategy (diversification; innovation) Input Environment(Competition, change)Resources(munificence)History (age, conditions at founding) OutputSystemsUnitIndividualInformalOrganization(Culture, leadership, networks, politics)Tasks (technologies, work flows)People(ability, skills, motivation, biases)FormalOrganization (job titles, departments, reporting hierarchy, IT & HR systems We’re still with the informal organization We’re still with the informal organization4Power and politics in organizationsPower and politics in organizations•Power: a “dirty word?” “Power corrupts and absolute power corrupts absolutely”•What is it?•And politics?5Power as a dirty wordPower as a dirty word“Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority: still more when you superadd the tendency or the certainty of corruption by authority.”John Emerich Edward Dalberg, Lord Acton (1834–1902): Letter to Mandell Creighton, April 5, 1887. Reprinted in Acton, Essays on Freedom and Power, ed. Gertrude Himmelfarb, pp. 335–36 (1972).6Leadership is power; but is all Leadership is power; but is all power leadership?power leadership?Leadership: •Influencing others with charisma and vision•Developing committed “followership”Other ways of getting & exercising power:1. 2...7Contrasts in presidential powerContrasts in presidential powerJohn F. Kennedy35th PresidentTerm of office:1/20/1961 - 11/22/1963Lyndon B. Johnson36th President Term of office: 11/22/1963 - 1/20/19698More powerful politiciansMore powerful politicians“Boss” TweedSen. Everett Dirksen Representative Tom DeLay Republican Rep. Tom DeLay of Texas turned himself in at Republican Rep. Tom DeLay of Texas turned himself in at the sheriff's office in Houston and was fingerprinted, the sheriff's office in Houston and was fingerprinted, photographed and released on $10,000 bail on conspiracy photographed and released on $10,000 bail on conspiracy and money laundering charges. This is his mug shot.and money laundering charges. This is his mug shot.9Niccolo Machiavelli Niccolo Machiavelli (1469-1527)(1469-1527)“…(A) wise prince ought to adopt such a course that his citizens will always in every sort and kind of circumstance have need of him.., then he will always find them faithful." “No enterprise is more likely to succeed than one concealed from the enemy until it is ripe for execution." “He who is the cause of another becoming powerful is ruined” "Hence it is necessary for a prince wishing to hold his own to know how to do wrong, and to make use of it or not according to necessity. "10 What’s power for? What’s power for? 1. The classical rational model •Managers devise programs (“standard operating procedures”) so that ….. are made “by the book”•Higher level …. are uncertain and require problem-solving search2. The political model …. is unplanned and disorderly. It occurs without clear rules and behind the scenes. It results from conflicts in which one side prevails over others11HP’s messy (and very public) politicsHP’s messy (and very public) politicsBoardroom DuelBehind H-P Chairman's Fall,Clash With a Powerful DirectorThe Cautious Patricia DunnAnd Flashy Tom Perkins Were a Combustible PairWSJ, G. Anders and A. MurrayOctober 9, 2006 Fiorina: Board intrigue familiar. Fired chief executive at HP describes 'veil of dysfunction'B. Pimentel, SF Chronicle, Tuesday, October 10, 2006 C. Fiorina: Tough Choices: A Memoir, 200612Managing power and politicsManaging power and politics •Politics isn’t pretty, but it is real, pervasive, & manageable•How to analyze and navigate the political terrain•How to manage power and politics–“Managing down” (From the organization’s perspective) –“Managing up” (From the employee’s perspective)13H. Ross Perot H. Ross Perot Founder and CEO, Electronic Data Services and Founder and CEO, Electronic Data Services and Presidential Candidate, 1992 and 1996Presidential Candidate, 1992 and 1996“If someone as blessed as I am is not willing to clean out the barn, who will?”“Business is not just doing deals; business is having great products, doing great engineering, and providing tremendous service to customers.” Perot ran for president of the United States in 1992 as an independent candidate, winning 19 percent of the vote—one of the largest percentages ever


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