Lecture 8 (chapter 10) power and influence

Lecture 8 (chapter 10) power and influence

1. The meaning of powera. Power is the capacity of a person, team or organization

to influence othersi. Potential, not actual useii. People have power they don’t use and they may not

know they process itiii. A perception

1. Managing your boss is the process of improvingthe relationship with your manager for the benefit of both of you and the organization

2. It includes the developing bases of power thatenable you to influence the manager and thereby achieve organizational objectives.

2. Sourcesof power

a. Legitimatei. Agreement that people in a certain roles can request

certain behaviors of others ii. Based on job descriptions and mutual agreement

iii. Legitimate power ranges varies across national and organizational cultures

b. Reward i. Ability to control the allocation of rewards valued

by others and to remove negative sanctionsii. Operates upward as well as downward

c. Coercivei. Ability to apply punishment

ii. Exists upward as well as downwardiii. Peer pressure is a form of coercive power

d. Experti. The capacity to influence others by possessing

knowledge or skills that they valueii. More employee expert power over companies in

knowledge economye. Referent

i. Occurs when others identify with, like or otherwise respect the person

ii. Associated with charismatic leadership3. Influence

a. Any behavior that attempts to alter someone’s attitudes or behavior

i. Applies one or more power basesii. Process through which people achieve organizational

objectivesiii. Operates up, down and across the organizational

hierarchyb. Types of influence

i. Silent authority1. Following requests without overt influence2. Based on legitimate power, role modelling3. Common in high power distance cultures

ii. Assertiveness1. Actively applying legitimate and coercive

power2. Reminding, confronting, checking, threatening

iii. Information1. Manipulating others access to information2. Withholding, filtering, re-arranging

information3. Reduces uncertainty

iv. Coalition formation1. Group forms to gain more power than

individuals alonea. Pools resources/powerb. Legitimizes the issuec. Power through social identity

v. Upward appeal1. Appealing to higher authority2. Includes appealing to firms goals

3. Alliance or perceived alliance with higher status person

vi. Persuasion1. Logic, facts, emotional appeals2. Depends on persuader, message content, message

medium, audiencevii. Ingratiation/ impression management

1. Increase liking by, or perceived similarity tothe target person

viii. Exchange1. Promising or reminding of past benefits in

exchange for compliance2. Includes negotiation and networking

Consequences of influence tactics

- Soft’ tactics generally more acceptable than ‘hard’ tactics- Appropriate influence tactic depends on:

o Influencer’s power baseo Organizational position o Cultural values and expectations

4. Power and influence through social Networksi. Cultivating social relationships with others to

accomplish ones goalsii. Social networks are important foundations of power

for individuals and companies apply social network analysis tools to discover who has this power

iii. There are cultural differences in the norms of active network involvement

b. Social capital and sources of poweri. Social networks generate power through social

capital: the goodwill and resulting resources sharedamongst members in a social network

ii. Social networks can increase:1. Expert power (gaining knowledge from others)2. Visibility3. Referent power

c. Strong ties, weak ties, many tiesi. Breadth: number/diversity of peopleii. Depth: frequency of interaction, strength of

attachment, members serve more than one functionsiii. Centrality: position within the networkiv. Network Centrality:

1. Person’s importance in a network2. Three factors in centrality:

a. Shortest path between others: you controlinteractions of others

b. Direct access to others: less dependence on others for connections

c. Number of people connected to you: more social capital resources

3. Example: A has highest network centrality due to all three factors; B has lowest centrality

d. Understanding Networks

i. Networks benefit individuals through access, timing

and referralse. Building and maintaining Networks

i. We often build networks according to self-similarityand proximity

ii. However, it is more effective to build networks according to shared activities and applying strategic considerations (access to additional networks, key persons, etc.)

iii. We also need to consider the dark side of our networks and how inclusive or unfairly exclusive they are.

5. Contingencies of powera. Substitutability

i. Few or no alternatives to the resourcesii. Increase non-substitutability by controlling the

resource1. Exclusive right to perform medical procedures2. Control over skilled labour3. Exclusive knowledge to repair equipment

iii. Differentiate resource from othersb. Centrality

i. Degree and nature of interdependence between power holder and others

ii. Centrality is a function of:1. How many others are affected by you2. How quickly others affected by you

c. Discretion and visibilityi. Discretion

1. The freedom to exercise judgement2. Rules limit discretion, limit power3. Also a perception-acting as if you have

discretionii. Visibility

1. Symbols communicate your power sources(s)a. Educational diplomasb. Clothing, etc. (stethoscope around neck)

2. Salience a. Location – others are more are of your

presenced. Influencing Others

i. Influence – any behaviour that attempts to alter someone’s attitudes or behaviour

1. Applies one or more power bases2. Process through which achieve organisational

objectives3. Operates up, down and across the

organisational hierarchy

Summary

Power is the capacity to influence others and it can be based on five sources of power with four contingencies

People can also gain power through social networks creating social capital

There are eight types of influences tactics, with soft ones more likely to result in commitment

Power is potential, influence is actual and politics is a perception

Power is the capacity to influence others. It exists when one party perceives that he/she is dependent on the other for something of value

There are 5 sources of power. Of this, legitimate, reward and coercive power originate mostly from the power holder’s formal

position whilst expert and referent power originate from the power holder’s own characteristics.

4 contingencies determine whether these sources of power translate into real power. They are – substitutability, centrality, discretion & visibility

Lecture 9 (chapter 11) – conflict and negotiation

1. Define conflicta. The process in which one party perceives that its

interests are being opposed or negatively affected by another party

2. Task vs relationship conflicta. Task conflict

i. Conflict due to disagreements about how a task should be accomplished

b. Relationship conflict

i. Conflict due to differences in personal values, individuals’ styles, personality

c. Team satisfaction and performance decrease as either taskor relationship increases

d. Difficulty in separating task and relationship conflict3. The conflict process

a. Diagram above4. Conflict handling styles

a. Five styles

b. Conflict handling contingenciesi. Problem solving

1. Best when:a. Interest are not perfectly opposingb. Parties have trust/opennessc. Issues are complex

2. Problem: other party takes advantage of information

ii. Forcing1. Best when

a. You have a deep conviction about your position

b. Quick resolution requiredc. Other party would take advantage of

cooperation2. Problems: relationship conflict, long-term

relationshipiii. Avoiding

1. Best when

a. Conflict is emotionally charged (relationship conflict)

b. Conflict resolution cost is higher than benefits

2. Problems: doesn’t resolve conflict, frustration

iv. Yielding1. Best when:

a. Other party has much more power b. Issue is much less important to you than

other partyc. Value/logic of your position is imperfect

2. Problem: increases others expectations; imperfect solution

v. Compromising 1. Best when

a. Parties have equal powerb. Quick solution is requiredc. Parties lack trust/openness

2. Problems: Sub-optimal solution where mutual gains are possible

5. Sources of conflicta. Incompatible goals

i. One parties goals perceived to interfere with othersgoals

b. Differentiationi. Different values/beliefsii. Explains cross-cultural and generational conflict

c. Interdependencei. Conflict increases with interdependenceii. Parties more likely to interfere with each other

d. Scarce resourcesi. Motivates competition for the resource

e. Ambiguous rulesi. Create uncertainty, threaten goalsii. Without rules, people rely on politics

f. Communication problemsi. Increase stereotypingii. Reduce motivation to communicate

iii. Escalate conflict when arrogant 6. Resolving conflict through third party intervention

a. Choosing the best third-party strategyi. Managers prefer inquisitional strategy, but this is

not usually the best approach ii. Mediation potentially offers the highest

satisfaction with process and outcomesiii. Use arbitration when mediation fails

b. Organizational approaches to conflict resolutioni. Emphasizing superordinate goals

1. Emphasize common objective rather than conflicting sub-goals

2. Reduce goal incompatibility and differentiation

ii. Reducing values differences1. Remove sources of different values and beliefs

a. E.g. move employees around to different jobs

iii. Improving communication/understanding1. Employees understand and appreciate each

other’s views through communication2. Relates to contact hypothesis3. Warning: apply communication/understanding

after reducing differentiationiv. Reducing interdependence

1. Divide shared resources2. Combine tasks3. Use buffers

Summary

Conflict is the process in which one party perceives that its interests are being opposed or negatively affected by another party

The conflict process model begins with 5 structural sources ofconflict: incompatible goals, differentiation, interdependence, scarce resources, ambiguous rules and communication problems.

Task conflict focuses on logical evaluation of ideas, whilst relationship conflict focuses on interpersonal incompatibilities and flaws. Both conflicts can spiral out of control

Some of the conflict handling styles include: problem-solving,forcing, avoiding, yielding & compromising

Third party conflict resolution is an attempt by a relatively neutral person to help parties resolve their differences

Organizational approaches to conflict management include emphasizing superordinate goals, reducing value differences, improving communication & understanding, reducing interdependence, clarifying rules and procedures and establishing a positive climate

Lecture 10 (chapter 12) – Leadership

1. Transformational, transactional, charismatic leadershipa. Leadership defined

i. Leadership is the ability to influence, motivate andenable others to contribute toward the effectivenessof the organisations of which they are members

b. Transformational versus transactional leadersi. Transformational leaders

1. Leading – changing the organisation to fit theenvironment

2. Change agents

ii. Transactional leaders1. Confusing definitions, but originally about

seeking employee compliance through rewards, punishment and negotiation

iii. Managing – achieving current objectives more efficiently

1. Link job performance to rewards2. Provide staff with necessary resources3. Relates to contingency leadership theories

(E.g. path-goal)c. Transformational versus charismatic Leaders

i. Some leadership models say charismatic leadership isessential for transformational leadership

ii. Emerging view: charisma differs from transformational leadership

iii. Charisma is a personal trait that provides referent power

1. Does not necessarily attempt to change the organisation

iv. Transformational leadership is a set of behaviours to bring about change

2. Effective leadersa. Competency perspective

i. Competencies: personal characteristics that lead to superior performance in a leadership role (e.g. skills, knowledge, values)

ii. Emerging view: several competencies now identified as key influences on leadership potential and of effective leaders

1. Personality2. Self-concept3. Drive4. Integrity5. Leadership motivation6. Knowledge of the business7. Cognitive/practical intelligence8. Emotional intelligence

iii. Competency perspective limitations1. Implies a universal approach2. Alternative combinations of competencies might

work just as well3. Assumes leadership is within the person

a. But leadership is also about relations with followers

4. Competencies refer to leadership potential, not performance

3. Path-goal leadership (contingency perspective)a. Originated with expectancy theory of motivation

i. Paths = employee expectanciesii. Goals = employee performance

b. States that effective leaders ensure that employees who perform their jobs well receive more valued rewards than those who perform poorly

c. Path-goal leadership stylesi. Directive

1. Provide psychological structures to jobs2. Task-orientated behaviours

ii. Supportive1. Provide psychological support2. People-orientated behaviours

iii. Participative 1. Encourage/facilitate employee involvement

iv. Achievement-oriented1. Encourage peak performance through goal

setting and positive self-fulfilling prophecyv. Path-goal leadership model

7. Cultural issues in leadershipa. Societal cultural values and practices affect leaders

i. Shape leaders’ values and normsii. Influence decisions and actions

iii. Shape follower prototype of effective leadersb. Some leadership styles are universal, others differ

across culturesi. ‘charismatic visionary’ seems to be universalii. Participative leadership

8. Gender issues in leadershipa. Male and female leaders have similar task- and people-

oriented leadershipb. Participative leadership style is used more often by

female leadersc. Evaluating female leaders

i. Still receive negative evaluations as leaders due toprototypes and gender stereotypes

ii. But evidence that they are good at emerging leadership styles (coaching, teamwork)

9. Transformational leadershipa. Create a strategic vision

i. Image of the company’s attractive futureii. Motivates and bonds employees

iii. Leader champions the visionb. Communicate the vision

i. Frame messages around a grand purposeii. Share mental model of the future

iii. Use symbols, metaphors, storiesc. Model the vision

i. Walk the talk

ii. Symbolise/ demonstrate the vision through behaviouriii. Employees trust leader more

d. Build commitment to the visioni. Increased through communicating modelling the visionii. Increased through employee involvement in shaping

shared vision

Summary

Leadership is one of the most researched, and possibly the most complex, topics in organisational behaviour

This has resulted in an enormous volume of leadership literature, most of which can be organised into four perspectives: competency, contingency, transformational and implicit

Further attention needs to be given to the ethical aspects of leadership, as well as to cultural and gender issues

Leaders use influence to motivate followers. Leaders exist throughout the organisation, not just in executive suites

The competency perspective of leadership tries to identify thecharacteristics of effective leaders

The contingency perspective takes the view that effective leaders diagnose the situation and adapt their style to fit it

Transformational leaders create a strategic vision, communicate the vision, model the vision and build commitment toward the vision

Transactional leadership , on the other hand is viewed as involving an exchange relationship with followers

Lecture 11 (chapter 14 “organisational culture”)

1. Subcultures and counterculturesa. Organisational culture defined

i. The basic pattern of shared values and assumptions shared within the organisations

ii. Defines what is important and unimportantiii. Company’s DNA – invisible, yet powerful template

that shapes employee behaviourb. Organisational subcultures

i. Dominant culture – most widely shared values and assumptions

ii. Subcultures1. Located throughout the organisations2. Can enhance or oppose (countercultures) firms

dominant cultureiii. Two functions of countercultures

1. Provide surveillance and critique, ethics2. Source of emerging values

2. Organisation culture and ethicsa. Ethical values become embedded in an organisations

dominant cultureb. To create a more ethical organisations, leaders need to

work on the embedded culture that steers employee behaviour

News Corporation’s ‘Whatever it takes’ Culture:

According to various observers and government officials, Rupert Murdoch’s powerful media empire has a ‘whatever it takes’ corporate

culture that has tacitly encouraged staff to cross ethical and legalboundaries

3. Changing/strengthening organisational culture

a. Actions of founders/ leadersb. Aligning artefacts

i. Artefacts keep culture in placeii. E.g. create memorable events, communicating stories,

transferring culture carriersc. Introducing culturally consistent rewards

i. Rewards are powerful artefacts- reinforce culturally-consistent behaviour

d. Attracting, selecting, socialising employeesi. Attraction-selection-attrition theoryii. Socialisation practices

4. Artefacts of organisational culturei. Observable symbols and signs of cultureii. Physical structures, ceremonies, language, stories

iii. Maintain and transmit organisations cultureiv. Need many artefacts to accurately decipher a

company’s cultureb. Stories and legends

i. Social prescriptions of desired (or dysfunctional) behaviour

ii. Provides a realistic human side to expectationsiii. Most effective stories

1. Describe real people2. Assumed to be true3. Known throughout the organisation4. Are prescriptive

c. Rituals and ceremoniesi. Rituals

1. Programmed routines (e.g. how visitors are greeted)

ii. Ceremonies1. Planned activities for an audience (e.g. award

ceremonies)d. Organisational language

i. Words used to address people, describe customers, etc.

ii. Leaders use phrases and special vocabulary as cultural symbols

iii. Language also found in subculturese. Physical structures and symbols

i. Building structure – may shape and reflect cultureii. Office design conveys cultural meanings

1. Furniture2. Office size3. Wall hanging

5. Organisational socialism a. The process by which individuals learn values, expected

behaviours and social knowledge necessary to assume theirroles in the organisations

b. Socialisation: Learning and Adjustment:i. Learning process

1. Newcomers make sense of the organisation’s physical, social and strategic/cultural dynamics

ii. Adjustment process1. Newcomers need to adapt to their new work

environment2. New work roles3. New team norms4. Newcomers with diverse experience adjust

better5. Stages of socialism in diagram below

6. Strong/weak organisational culturea. How widely and deeply employees hold the company’s

dominant values and assumptionsb. Strong cultures exist when

i. Most employees understand/embrace the dominant values

ii. Values and assumptions are institutionalised throughwell-established artefacts

iii. Culture is long lasting-often traced back to founder

Summary

Organizational culture consist of the values and assumptions shared within an organisation

Organizations differ in their cultural content, i.e. the relative ordering of values. Organizations have subcultures ontop of the dominant culture

Artefacts are the observable symbols and signs of an organization’s culture. 4 categories of artefacts include organizational stories & legends, rituals & ceremonies, language and physical structures & symbols

Organizational culture has 3 main functions

A form of social control,

The ‘social glue’ that bonds people together and

A way to help employees make sense of the workplace

Employees typically pass through 3 socialization stages: pre-employment, encounter and role management

Lecture 12 (Chapter 15) Organisation change

1. Resistance to changea. Many forms of resistance

i. Complaintsii. Absenteeism

iii. Passive non-complianceb. View resistance as a resource

i. Symptoms of deeper problems in the change processii. A form of constructive conflict may improve

decisions in the change processiii. A form of voice – helps procedural justice

c. Why people resist changei. Direct costs

1. Losing something of value due to changeii. Saving face

1. Not invented here syndromeiii. Fear of the unknown

1. Risk of personal loss2. Concern about being unable to adjust

iv. Breaking routines1. Cost of moving away from our comfort zones2. Requires time/effort to learn new routines

v. Incongruent team dynamics1. Norms contrary to the desired change

vi. Incongruent organisational systems1. Systems/structures reinforce status quo2. Career, reward, power,

2. Urgency for changea. Creating an urgency for change

i. Inform employees about driving forcesii. Most difficult when organisations is doing well

iii. Customer-driven change1. Adverse consequences for firm2. Human element energises employees

iv. Sometimes need to create urgency to change without external drivers

1. Requires persuasive influence2. Use positive vision rather than throats

3. Cross-cultural and ethical concerns with managing changea. Cross cultural concerns

i. Linear and open conflict assumptions different values in some cultures

b. Ethical concerns i. Privacy rights of individuals ii. Management power

iii. Individuals self-esteem4. Lewin’s force field analysis model

a. Developed by Kurt Lewini. Driving forces

1. Push organisations toward change2. External forces or leaders vision

ii. Restraining forces1. Resistance to change2. Employee behaviours that block the change

process

5. Appreciative inquiry approach a. Frames change around positive and possible future, rather

than traditional problem focusi. Positive principle: focus on opportunities, not

problemsii. Constructionist principle: conservations shape

realityiii. Simultaneity principle: inquiry and change are

simultaneousiv. Poetic principle: we can choose how to perceive

events and situations

v. Anticipatory principle: people are motivated by desirable visions of the future

b. Four-D model of appreciative inquiry.