Success Image. Gain respect by being positive, upbeat,
committed etc.
1 Power
Authority
Ability to influence others
behaviour in a desirable way
without compromising own
behaviour
Characteristics:
 Relationship based
 Dependance factor
 Can be learned
 Omnidirectional
Types of Power
Reward
2
Right to order. Hierarchal in nature. Flows downward.
Granted by organization. Ex set goals, evaluate
personnel, assign work.
Ethics
Considerations: Punishment should be
consitent, uniform, and private.
Communications and respect are fundamental.
Does the power behaviour:
Influence
Process of affecting thoughts, feelings and behaviours of
others. Zone of indifference is range by which employee
percieves influence as legitimate, and will not evaluate.
If employee percieves illegitimate, only managers power
can expand the zone. Authority is not as effective at
expanding the zone.
1. Produce a good outcome for
internal/external stakeholders? The greatest
good for the greatest number of people.
2. Respect the rights of all stakeholders?
3. Treat all stakeholders fairly and
equitably? Procedural fairness & equity
theory.
Creating Obligation. “you owe me!”
Power relationship/identification. Mentorship allows fast track
to expert power and power by association.
Excellent performance. Related to image of success. Become
multi-talented and indespensible. Volunteer for undesirable
tasks, etc.
Limit access to information. Knowledge is power.
Information is valued, if you control it you affect DM process.
Controlling resources. You have what others want. Resource
dependancy. Budgets are an example.
Aspiration based. Supplements legitmate power. Ex: granting
authority, recognition, compenstation, etc
Developing a network. This may lead to informaion, resource
and influence power.
Coercive
Disincentives. Punishment and threat. Supplements
legitimate power. Ex. Assign undesirable tasks, negative
feedback.
3 How Employees Gain Power
Reorganize job. Empire building. New responsibilities.
Be creative. Risk taking is rare. Use entrepreneural methods.
Legitimate
Referent
Authority. Based on position within hierarchy.
Personal vice postional power. Admiration. Very personal,
anyone can have it. Charisma
Knowledge worker. Acquire specialized expertise in given
field(s). Expert Power.
Manipulate rules. Embrace those that help you, change those
that do not. If writing procedures you have power.
Control personnel decisions. Training and development,
human resources etc. You affect people.
Expert
Personal vice positional power. People defer due to expert
knowledge.
Manage your boss. ID his DM style, level of fromalization, his
goals and objectives. Influence the boss.
Ways To Manage Your Boss
(upward mobility)
Assumptions:
The boss does not have all the alternatives
The boss does not have all the information
So…
1.
Know thyself:
2.
Know thy boss:
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Strengths/weaknesses
Preferred DM style
Level of desired independance
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Strengths/weaknesses
Preferred DM/work style
Goals & objectives
Pressures on him
3.
Reconcile above in a relationship that:
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Fits both needs and styles
Has understood goals and expectations
Has effective communication
Is based on respect and performance
Tip: Always offer solutions not problems!!
4 How Subunits Gain Power
Subunits difer in:
 Employee number
 Budget size
 Facilities
 DM impact
5 Organizational Politics
Unit ability to control strategic
management outcomes through:
Determined by:
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Defn: influence to obtain non-sanctioned ends
or sanctioned ends through non-sanctioned
means
Granting of permission
Provision of resources
Work completion
Provision of critical
information
Results
Conditions for:
Process
Approved
Scarcity of resources: If there is plenty to go around then there is no power in
having them.
Non-Approved
Uncertainty: subunits that can help reduce uncertainty have power. We do not
like uncertainty. Ex. A unit in a merger that provides information on who will
now be doing what has power. Effect most notable in Bounday spanner units,
those that tie organization to external environment (that is where most
uncertainty probably comes from) Sales & marketing, legal, R&D.
Crentrality. Units performaing tasks on critical path. This units play a critical
role such as authority (budget allocation) or process such as Q&A in industry
where quality is important
Absence of Substitutes. Dependancy under another name. Basically you have
a monopolistic power within the organization. If there are alternatives you lose
power.
Approved
Non-Approved
Sanctioned work that is
efficient/effective (based on 3
questions under Ethics)
Rules followed but achieve undesirable
results Cause of whistle blowing,
inequity perception
Pursue valued results with
questionable methods
Worst case. Insider trading is an
example.
Whistle blowing: Belief that the organization is violating his/her instrumental/terminal
values, or the law. Bypasses organizational hierarchy to go external. Based on high
ethical standards, often best interest of the organization in mind.
6
How Managers
Play Politics
Political Strategies
Line vs. Staff conflict: Staff measures put in place to enhance organization, yet both staff
& line practice: 1) witholding info 2) gaining access to powerful execs 3) image
enhancement 4) increasing centrality. This must be managed or else org suffers.
Sponsorship/coalition building: gaining of politicalpower through association
(interpersonal power bases of sponsor). Rules. 1) loyalty 2) follow orders 3) let sponsor
take the credit 4) show gratitude (sounds like brown nosing)
Insurgency/Resisting Authority: Going too far, following the rules in a manner not
desired by management. Work to rule is an exam,ple.
9 Research on Leadership Traits
8 Leadership Vs. Management
Situational
Leadership
3 approaches
Managers ‘handle things’ (Latin root for hand) Status Quo
Leaders instigate change (go in new directions hence, the name)
Managerial Categories (Mintzberg)
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Interpersonal – establish working relationships
Informational – collection and distribution of
information
Decision roles – setting, implementing and monitoring
progress towards goals. Good interpersonal and
information aspects needed for good DM roles.
Mintzberg’s Role of the Manager
3 Categories
10 Roles
Interpersonal
Figurehead*
Leader *
Liaison
(performs ceremonies)
(motivates employees)
(builds networks)
Informational
Monitor
Disseminator
Spokesperson*
(information scanning)
(information sharing – internal)
(information sharing – external)
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
(seeks change)
(responds to pressures)
(provides resources)
(reaches agreements)
Decisional
Note: 48% of time spent with subordinates. 7% with superiors. 44% with peers and
outsiders. Managers spend very little time alone without being interrupted. Leadership
Challenge cites 9 minutes.
* These roles have disappeared to a large extent in fully decentralized organizations
Trait
Approach
Behaviour
Approach
Non-observable
 Core assumption – leaders possess traits that allow them
to rise above the crowd (physical, social, intellectual etc.)
 Result of early research disappointing (bogus theory)
 Bennis & Nanus refined theory:
 Logical thinking
 Persistence
 Empowerment
 Self control
Observable
 Core assumption - Leaders exhibit behaviour that
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Theory fails to take into account the situation in which
leadership occurs (does the leader make the situation or does
the situation make the leader? If latter can be the case then
‘trait’ approach is futile) Situation is important as Churchill
was not considered a great leader until wartime.
Condition
IS
C
o Time pressure, ambiguity, threat
Up it
----
o Interesting & challenging work
Reduce Reduce
o Goals certain, task clarity
Lwr it
Up it
o Lack job knowledge, job vague
Up it
----
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influences subordinate performance and satisfaction
Two fundamental behaviours:
 Initiating Structure (the process):
o Work procedures
o Planning assigning tasks
o Clarifying work roles
10
o Supervising workers
o Asking for results
 Consideration (the people):
o Approachability
o Supportiveness
o Maintenance of high morale in work unit
o Concern for group welfare
o Maintenance of collaborative atmosphere
"One Best" style is where leader rates high in both aspects
Improvement over Trait approach since it concentrates on
what a leader does, rather than what they are like. It
therefore implies that leadership can be learned.
Theory fails to address the issue of leadership as a cause or
effect. I.e. if a team is highly successful, it may bring out
consideration behaviour in the coach. (Chicken or egg
dilemma).
11
Situational Leadership Theories
Called contingency since it is contingent on the situation as to what
type of leader to use (high/low LPC)
Fiedler's Contingency Theory
Based on orientation of leader to LPC
(least preferred Coworker)
LPC
Use working thoughts about LPC to determine if Leader is
task or relationship oriented.
Leader behaviour interacts with
favorableness of situation
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High LPC will empathize with LPC and have feelings
(he is not so bad)
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Low LPC will look primarily at results and not the
person (He sucks and doesn’t get the job done)
3 Components to Favourableness of Situation
Leader/member relations
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Most important component
Quality of atmosphere
Examples are loyalty and trust
If absent, insubordination,
absenteeism etc may be present
Task structure
Position Power
 Clarity of work and goals
 Easier to influence people with clear
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Note: The leaders orientation cannot be easily changed. It is preferred to match the
leader to the situation. If situation changes then change leaders.. This is awkward
and practically leaders may have to remain constant, in which case the leader must
try to adapt. If so follow below:
 Leaders legitimate authourity
 The more of this the more
performance measures when present
If not present there is ambiguity and
members question leader
favourable the situation.
Modify leader-member relations:
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Spend more leisure time
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Request certain people/eliminate certain people
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Supervise troublesome employees
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Improve morale with rewards
Situational Favourableness
When situation is highly favourable, there
is little stress and the task oriented leader
can behave in a relationship based way. If
the situation is highly unfavourable then
there is stress and the team needs a leader
to help them focus on the task. In between,
the leader must shore up leader member
relations which is the strength of the high
LPC relationship oriented leader.
High
Low
Leader – member
Relations
Good
Task structure
Structured
Modify Task structure:
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Create less structured tasks by giving the group new problems to solve
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Create more structured tasks by organizing tasks into structured, standardized,
smaller, more controlled pieces
Poor
Unstructured
Structured
Unstructured
Position Power
S
W
Task
S
W
S
Relationship
Most effective leadership orientation
W
S
W
Task
Modifying Position Power:

To raise position power: show group who’s boss (use legitimate power) and
ensure all information channeled through the leader
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To reduce position power: invite members to participate in planning and
decision making, delegate increased power and authority.
12 Leader Reward & Punishment
House’s Path-Goal Theory
Leaders main job is clarification of
pathways between workers
performance to rewards. Therefore a
transactional theory of leadership.
LEADERSHIP
Based on BM principles:
Positive, negative re-inforcers,
punishment & extinction
 Performance Contingent Reward Behaviour.
Extent to which leader provides rewards based on performance. Associated with high
levels of job performance and satisfaction. Stresses perception of leader fairness.
Pathway = effort to performance; performance to rewards
 Performance Contingent Punishment Behaviour.
Punishments based on performance. Mixed results for job performance and job
satisfaction.
Based on 2 situational factors
 Non-Contingent Reward Behaviour.
Worker task ability and
need for achievement
Environmental factors:
task clarity, routineness
and challenge
Power Politics Influence
Extent to which a leader provides reward regardless of performance. If leader provides
rewards in arbitrary fashion (favouritism), then there is immediate negetive reaction
magnified by kick in of the equity theory. Good performs will leave or work less to
achieve equity.
13 Neutralizers/Substitutes
 Neutralizers: reduce effect of influence attempts.
 Substitutes: reduce need for influence attempts.
Neutralizers can become substitutes. All based on
dependency. If worker has other means to achieve
rewards or goals then these other means become
neutralizers. If however these other means still
support the leaders goal, they become substitutes.
Ex. Team highly cohesive may have a lot of intrinsic
rewards in work. External influence may not be as
powerful (neutralizer) but also may not be necessary
(substitute) as the team has its own governance
mechanisms.
 Non-Contingent Punishment Behaviour.
Therefore leader must develop following behaviours:
(dependant on situation)
Provision of punishment regardless of performance. This has a strong negative reaction
on job performance and satisfaction.
 Directive: work planning, setting standards, giving
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instructions, clarifying work expectations. Direct them.
Good for workers who prefer high work structure that
provides feedback. Also good when workers question
their own task ability-tell them what to do.
Supportive: friendly, supportive, caring, considerate.
Support them.
Participative: Using workers ideas in problem solving.
Get them to participate.
Achievement-oriented: Setting goals and expecting
achievement. Keep them focused on the goal. Good for
subordinates with strong achievement drive.
If tasks are clear and procedures are routine, any leadership
behaviour may be seen as intrusive. If there is ambiguity and
challenge the directive and participative works best.
How to use rewards/punishment (recap of module3)
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Ensure rewards are based on clear, well understood and
measurable performance standards
Use recognition
Create as much variety in reward system as possible
Avoid punishment unless necessary, then fo it in private
Avoid delays in use of both reward and punishment
1. Power, authority, influence.
2. Sources of interpersonal power
3. Methods used be employees to gain power
4. How subunits become powerful
5. Conditions that make political behaviour more likely
6. How managers play politics
7. Effective methods for upwards management
8. Leadership v.s. behaviour
9. Difference between leadership research
10. Consideration and initiating structure
11. Situational leadership
12. Leader reward and punishment behaviours
13. Neutralizers and substitutes
14. The entrepreneural profile
15. Entrapreneural vs administrative behaviour
16. Organizational factors encouraging entrepreneurship
Entrepreneurship
Defn: a process of opportunity recognition followed
by a plan to exploit the opportunity.
Entrepreneural traits are acquired not inherited
15 Entrepreneur v.s others
14 Entrepreneural Profile (flawed)
Behaviour Dimension
Suffers from the same problems as the trait approach to
leadership. You can only partly understand a phenomenon if
it is removed from its context.
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Entrepreneurs:
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Are stubborn (tenacious, make sacrifices, handle failures)
don’t give up.
Are driven (seeks accomplishment, strong desire, master
of own destiny, clear vision of goals).
Exercise ownership (assume responsibility, problem
solving)
Are novel (in approach to things, catch things others
miss)
Are focused. Even in face of ambiguity can be
productive, lower risk with careful planning
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Strategy
Opportunity
Exploitation
DM
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Resource Allocation
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Reward practices
Entrepreneur
Administrators
Spot opportunities
Effectiveness through change
Control resources
Efficiency through status quo
Welcomes change, believes always room for
improvement, org structure that is flexible
Minimize risk by renting, leasing (more
flexibility, money not tied up in assets)
Salaries high to retain high value workers,
creative reward sys (proactive)
Change and opportunity not linked, believes in
heirarchy for sake of tight control
Own stuff (more conservative) expand when
market is right (reactive)
Periodic salary surveys to keep competitive
(reactive-keep up with others)
Dissatisfied with the status quo
Start off in similar way as small business owners, but outgrow that classification
Exploit opportunities others miss
16 Organizational Encouragement of Entrepreneurship
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Idea Champion (me) – recognizes a problem and generates a solution
Sponsor (boss) – lends positional power to the cause. Nutures the idea and allocates resources.
Godfather (Commander) – authority to say “make it happen – this is the way it is going to be!”
In addition the organization must allow for horizontal coordiantion to protect the innovation teams from
outside interference. Gailbraith call these Islands for unecumbered thinking or ‘greenhouses’. They are
different from other parts of the firm. They are often physically removed, and take on unique
charactieristics that reflect the work habits of the team members.