13th International Conference
Research and Development in Mechanical Industry
RaDMI 2013
12-15 September 2013, Kopaonik, Serbia
Plenary and Invitation Paper
MODEL OF EXCELENT LEADERSHIP IN COMPLEX
ORGANIZATIONS: POWER, INFUENCE AND ENERGY
1
,
2
, Suzana Doljanica3,
4
1
University of Kragujevac, Faculty of Science, Kragujevac, SERBIA,
E-mail: srdjan_nikezic@yahoo.com
2
University of Kragujevac, Faculty of Law, Kragujevac, SERBIA,
E-mail: bataveljic@jura.kg.ac.rs
3
Modern Business School, Belgrade, SERBIA, E-mail: suzana.doljanica@gmail.com
4
University of Kragujevac, Faculty of Engineering, Kragujevac, SERBIA,
E-mail: adjordjevic@kg.ac.rs
Summary: Developing model of power was set up by Barton Michelson, as positive power which is continually
used for achieving organisational, group and individual aims in order to provide more efficient operation of a
company, or complex (multinational) organisations. Model of excellent leadership was based on this model,
which in current conditions in global economy and society in general, responds better to the recent changes and
challenges in complex organizations in the region. Recent researches have shown that aspects of influence,
readiness for changes and agility in bringing them about are especially involved in this model. The outcome of
this modelling is mathematical interpretation of this complex interdisciplinary, multidisciplinary and
transdisciplinary problem.
Keywords: Developing model of power, excellent leadership, influence, changes, energy.
1. INTRODUCTION
Use of power in an organisation, with help of ethic or other positive and purposeful behaviour is an
obligation and self-responsibility which is a part of leadership function and its own credibility.
Michelson assumes that
leaders who use power for leadership in certain organisations have to develop organisational power as
a base of efficient use of power influencing the others.
His model of power is designed to show that power is differently distributed within an organisation.
This model establishes an interpersonal link between basic power of a leader and alternative influences
of a strategy as a product of positive dynamic power for change.
The importance of the model is that it established positive interpersonal and organisational
relationships and that it is applicable to all organisations regardless of their size, aim, mission, and
technology and other.
Recognized and accepted literature is used for the basic structure of the model: John Kotter, Rosabeth
Kanter, David Whetton and Kim Cameron. A model, which establishes dependent and interdepended
relationships critical for the power of acquisition, transformation, dynamic changes and organisational
efficiency, was designed and extended. Harry Truman
convince a man to do something he does not want to
of the problem for every leader in every organisation is how to include others to work on achieving
36
organisational goals (Cohen, 1984). There are other reasons why leaders use power as an important
part of their job. The power of acquisition and use of power can have influence on career advancing,
(Kotter, 1979).
The extended
model, with previous analysis, is supplemented with new, important
e
correspond to the new market where the state elements directly affect the structure of organisational
design and ways and methods of business.
activities and organisational levels, the choice of adequate type of power which is located according to
the demands of expertise and knowledge and ability to plan, organise and coordinate work of
employees and the choice of the explicit attributes of power that should be accepted. Explicit power,
influence and energy of a leader and their rational and purposeful use represent essential lever of
choice for entire system of power and influence of individuals and individual levels of power
2009)
to bear in mind two
opposite ideas at the same time and to manage to operate while doing it
. Excellent
leaders and companies create quality with soul and top quality of a product with traditional
on costs.
2. LEADERSHIP CHALLENGES IN COMPLEX ORGANISATIONS
Big and complex organisations can be characterised as various, highly dependent and receptive for
generating power as dynamic category. The first characteristic of these complex systems is diversity of
complex parts in them, regarding the aims, values, results, assumptions and perceptions. There is
interdependence between parts and wholes in which many participants have power to influence each
other because of their own connection and vertical and horizontal integrations (Michelson). According
to Kotter, high level of leadership and interdepndence represent perfect condition for the development
of power acquisition and use of influence to create a dynamic force for change.
For the leader, the challenge is to work in conditions of diversity and interdependence. Making
decisions is the way to organisational success. The challenge is similar in all organisational forms
(public, private, joint-stock, non-profit) (Kotter, 1985).
High level of diversity and interdependence are common cause of conflicts in complex organisations.
The leader cannot ignore these conflicts, but they have to try to influence factors that are used to solve
the conflict (Kotter, 1985). Managing conflicts is particularly difficult when their roots are in the base
of complex relations of diversity and interdependent organisational units. That can cause conflicts
along vertical and horizontal lines of organisation, lines for forwarding certain findings, instructions
and advice. Depending on the stage of life cycle of complex organisations, the intensity of certain
conflicts is reduced or increased
.
The strategy of power and influence are leadership trumps in solving conflicts. Efficient, responsible
and dynamic power for solving conflicts can be created by skilful developing of influence of power.
Leadership power comes from many sources and multiple foundations to build leadership base from
which derives its power, and that is why it takes time, energy and power.
In complex organisations, the causes of conflicts are various and can be divided into three main groups
of factors:
a) the first are communicational, and they are derived from complexity of communicational process,
the way and conditions of informing social actors and organisational groups,
b) the second are structural and are derived from various complexes and relationships, connections
and interdependencies in an organisation, and
c) the third are reflection of behaviour of organisational members, their roles and interpersonal
reactions
.
Effective leaders develop their power using their knowledge, energy, creativity and skills. The power
developed that way is transformed into influence in crisis situations. It is necessary to take efficient
measures to avoid influence abuse. The power of a leader must maintain over a period of time via the
scale value that is consistent for each complex organisation (figure 1).
37
The influence on
a complex
organisation
The influence on the
environment
Power transformation
Leadership power
acquisition
Personal
power
Power of
position
Leadership power
Picture 1: Range of leadership power
3. DEFINITION AND SOURCES OF LEADERSHIP POWER: DISTINCTION FROM
RELATED TERMS
The strong base of power is favourable for effective management and leadership position in condition
when the organisation is developing dynamically.
A few definitions can contribute to a better understanding of the term of power in organisations. Max
Weber
White and Bednar
influence on people or process via resources. Robbins defines power as
influence the behaviour of a person B, so that the person B behaves in a way they would not normally
behave. Luthans generally agrees with this definition
and
Nikezi ,
Grabovica, 2012).
It comes out of these definitions that the power is the ability of achieving the influence of a person
on other individuals and on their behaviour, by changing it in positive or negative way. That is
the ability of making an individual or a group to do or change something in a way that suits the leader.
The leader who has power is in position to change other people's behaviour, to manage them, and if is
about the toxic leaders, to manipulate.
The term of power includes the influence, but these two terms are different. The influence is a broad
term and means the capacity of changing people's behaviour, which is characteristic of
leadership.
The terms of power are also different from the term of authority. Authority represents the source of
power. Authority is the legitimate right to have influence, so as to gain power. Certain authors define
authority as official power. However, unlike authority, power does not have to be legitimate. There are
also other sources of power
and Nikezi ,
Grabovica, 2012).
Chester Barnard makes a distinctive difference between authority and power. Power is exercised in
relations of informal authority. Formal authority is explained as a way of communicating in formal
organisational structure, according to which staff or members of organisation perform the action in
accordance with the wishes of the leader. The authority should provide achieving collective or
organisational goals, while power strives to achieve certain individual goal (
Grabovica, 2012 and Nikezi ,
Grabovica, 2012).
Two conditions are basic for achieving power in organisation:
a) ability of using the source of power and
b) motivation to take power.
38
Practical power exercising depends on leader's character and situation in which power is exercised. On
one hand, there has to be leader's readiness to exercise a certain form of power, according to power
sources, and on the other hand, readiness of an individual on whom the power is being exercised, to
take that from the different reasons. Motives for taking power (rewards, promotions, rotation) are
necessary as the reason for accepting the leader and their competence. In other words, there must be a
motive to accept the influence of another person in individuals on whom power is exercised
(Northouse, 2006).
Besides the listed terms, it is necessary to finally define the term of identity as an important factor for
understanding leader's competences.
and
uniqueness in certain social roles, such as leadership, but in life in general. We cannot have the
sense of identity without feeling of uniqueness or feeling of integrity, as in a certain context, like
leadership position, and during the life path.
Power in organisations, or leadership power, is based on the ability to use some of the available
resources, such as: knowledge, information, position, finance, relations and other. John French i
Bertram Raven identified five classic resources and responding types or kinds of power: power of
reward, coercive power, legitimate power, reference power and expert power
Grabovica, 2012).
Unlike Servant Leadership, Authentic Leadership, Ethical Leadership and Values-Based Leadership,
French and Raven do not offer any defined leadership concept, but they explore the basic powers of a
leader.
Widest level of power exploration was conducted by French and Raven, focusing on the base of social
power. They observed power conceptually in their work, as the influence which person has on others,
and the behaviour of people who are under the influence. Therefore, the aim was to determine power
of influence that affects a person, and a person who is under the influence.
They identified five common and important bases of power: reward, coercion, legitimate, referent and
expert power. Each of these powers increase
behaviour of the others.
As it was already put out, there are two main types of power in organisation: power of position and
personal power.
Power of position is a power of leadership in formal organisational systems. That is the overall
capacity of a leader that derives from the status. The types and categories of basic power are identified
in the figure 2.
Power of position
Reward
Punishment
Legitimate
Personal power
Referent
Expert
Figure 2: Types and categories of basic power (Modified according to: Northouse, 2006)
Personal power is the result of leadership influence over their knowledge and personal qualities.
Personal power is the result of establishing interpersonal relations with followers in which the
followers recognise the values that other people in organisation do not have. Personal power includes
referent and expert power.
French and Raven's theory:
classifies key sources of leadership power,
analyzes follower's perception from the standpoint of quality and leadership position, and
shows to which extend the follower's perception influences leadership power and freedom to work
(French & Raven, 1959).
Leaders often use power as a mean of achieving personal goals.
Unlike French and Raven, Burns (1978) points out that the leading energy pervades relations
between the leader and follower. Power is not a separate entity that leaders use to achieve their
goals, but it occurs in relations and should be used by leaders and followers to promote their
common goals (Burns, 1978).
The leader uses different forms of power to achieve their goals, but they have to be consistent with
39
each other and connected to the follower's goals, so that the benefits of achieving goals are the same
both for the leader and the follower.
In reference power, it is essential for the followers to identify with the leader (this can be the teacher in
high school or on college).
In professional power, the followers basically have positive perception of leadership competence
(tourist guides who do their job successfully).
Legitimate power is connected to the formal status, giving rise to leadership authority (the judge).
The power of reward comes of the leadership capacity to provide reward for the others (a supervisor
who controls production and gives rewards to the employees who work well).
The power of punishment comes out of the ability to punish somebody (a bench coach uses coercive
power).
The concept of power refers to leadership because it is part of that process. Therefore, power is the
ability or potential of leadership influence. People have power when they have the ability to
influence other people's beliefs, attitudes and courses of action. Ministers, doctors, coaches and
teachers are the example of people who have potential to influence other people (Northouse, 2006).
When it happens, using their own power as the source of influence, the leaders can influence creating
positive or negative change in their followers.
Coercion (forcing) is a specific type of power, characteristic for leaders. Coercion involves use of
force in order to make changes. That means the influence of the leader on the others to achieve
something by manipulating punishment or reward as an element of leadership power. Coercion often
involves use of threats, punishments and negative schedule of awards (Northouse, 2006).
A classic example of a toxic leader is Adolf Hitler in Germany, who used negative power to compel
his followers to engage in extremely negative behaviour.
It is important to distinguish the leadership from coercion (forcing), because it helps distinguish the
positive attitude from the behaviour of the individuals like Hitler.
Leadership is reserved only for those who influence the group in order to achieve common goals. The
leaders who use force are interested only in achieving their own goals and are rarely interested in
wishes and needs of the individuals (Northouse, 2006).
The leadership power is much more than using the force. The force refers to the capacity of the boss to
influence other people's behaviour, so that they behave according to the wishes of their boss.
There is not a leader without their followers. The followers have to accept leadership power or, to give
power to their leader instead. This thought was the guiding principle in researches on why people
accept leadership from certain leaders, and not form the others in academic circles during last century.
The key researches referred to the sources of leadership power and the relation between the leader and
the follower. In their work
identified
five types of leadership power, as we have already put out and classified them in two groups:
positional power (three sources of power) and
personal power (two sources of power).
1) The power of reward,
to reward the followers who carry
out the instructions through performing the tasks.
2) The power of punishment,
obey the instructions and do not perform the tasks.
3) Legitimate power, is the result of hierarchical leadership function that gives them the right to give
orders.
4) Expert power, is the result of the superior leadership knowledge, experience, expertise and skills,
and gives them the opportunity to lead the followers through the challenges and performing
relevant tasks.
5) Referent power comes from the character of the leader, his previous work, charisma and visions
(French, Raven, 1959).
All of the five leadership powers can be strengthened or weakened through leadership beliefs. Very
often, the power of reward and punishment are not crucial for getting leadership trust of the follower.
Expert and referent power, even though the leader does not have them, can be misused by them, but
only for a period of time, until the followers find out they cannot be trusted.
The force of leadership power does not depend only on the leader, but also on perception of the
followers. Giving and taking power is the result of the interpersonal relation established between the
40
leader and follower and on whether the followers accept the leadership power willingly or not.
Managers relied on the positional power for the decades, but there was a review of this assumption in
the 21st century, because the positional power is no longer a guarantee of managerial success, but
expert and reference powers began to get bigger, even crucial part in organisation.
John Schemerhorn identified four sources of leadership power as: legitimate, reward, punishment, and
referent (Schermerhorn, 2009).
Leadership power in the company can be classified in the following way: power of reward, power of
punishment, legitimate power, expert power, and referent power
.
A successful leader, besides their own vision, must have charisma to gather and motivate others to
work, and to be able to appreciate reality at the same time: to identify barriers and to work on
removing them. Besides that, they must have the power to influence the others to follow them and to
be the bearer of task performing, using his work and behaviour. Therefore, the power is the ability to
influence the others to do what the leader wants them to do. It should not be in function of personal
satisfaction or interest, but in function of the organisation, and the employees. The sources of power
can be divided into two groups: those that are based on the position of a leader in the organisation and
those that are based on the leader as a person
.
Elements of power sources are shown in figure 3 via position of a leader and personal characteristics
Power of position
- Reward
- Punishment
- Legitimate
- Ecological
Personal power
- Ekspertska
- Referentna
- Informisanosti
Organisation
Leadership
Figure 3: The source of leadership power: position and personal characteristics
Another category of power, awareness, which becomes more important in the era of the rule of
information (Rot, 2010) is introduced on the picture 3.
give special importance to
the ecological power in today's environment, and leadership influence and power, especially in global
companies,
to respond ethically to the challenges that are dominant in the environmental and his
own protection from the various climate and material means, regardless of the height and strength of
.
4. LEADERSHIP POWER PROFILE
The power runs through all the processes in one organisation. The leaders gain and use power for
achieving certain goals at work, and also to enforce their positions. Every interaction and social
relation in an organisation involves leadership exercise of power (Gibson, & Ivancevich, & Donnelly,
1985)
the process of using power
to have in
(Schermerhorn, & Hunt, & Osborn, 1985).
The leaders are people who are willingly followed while developing their vision as their own by their
followers. The power of leadership is based on concept of the influence of the leader on their
followers. That influence is proportional to the strength of personal profile of the leader (Mihailov
).
Leadership theorists claim that if you want to identify the leader, it is only necessary to watch certain
opinions differ, and that a group strives to accept that opinion and follow the leader. Robert
Dilenschneider, identified three components of leadership power, shown in the figure 4.
41
Figure 4: Three components of leadership power
Three components of leadership power are: communication, respect and influence. It starts with the
effective communication, which makes respect, and respect leads straight to power of influence on
followers (Dilenschneider, 1991; Dilenschneider, 2007).
The influence on the followers can be increased if the leaders are ready to accept the fact that there are
many levels of leadership. There are five levels of leadership on the picture 5 (Maxwell, 2002;
Maxwell, 2011a; Maxwell, 2011b).
5 The climax of respecting
Respect
the leader
People follow leaders because of what
they are and what they represent
4 Developing of followers Reproduction
People follow leaders because of what
they did for them
3 Organisational
Results
Reproduction
People follow the leader bacause of what
he did for the organisation
2 Permission
Relations
People follow the leader bacause they
want to
1 Position
Rights
People follow the leader bacause they
have to
Figure 5: Five levels of leadership
Position is the first level where the leader has power which comes out of placing in appropriate
leadership position. This position gives power only if there is a quality base for the authority and
leadership position. It is disadvantageous if the influence does not happen, and especially if it
compensates lacking leadership characteristics. In the positive sense it is about position leadership,
which is based on the place (position) and title, and not on predisposition for leadership. The followers
follow the leader only to the level of his formal authority which comes out of the position they take.
Organizations in which position leadership prevails have low level of motivation, and the employees
do only what they have to (
.
Permission is the second part of leadership and it is the symbol of those organizations where followers
follow the leader because they want to. People follow their leaders because of their authority and
quality of the decisions they made. Interaction between the leader and the follower is based on the
needs of reaching the goals and expectations of the organizations. Thus, leadership influence is
significantly extended, but the danger of this level is the case when the leader is kept for a long time
and if they do not manage to pass to the third level.
Organizational production is the third leadership level on which the followers follow the leader
because of the success they make in managing the organization. The followers are motivated for
performing tasks and they do it efficiently. With such motivation of the followers possible problems
are easily solved because the followers respect the leader and they are orientated towards increasing
results.
Follower's development is the fourth leadership level at which the organizational structure allows
progressive development of employee potential and achieving excellent results. A leader is focused on
the development of his own leadership skills, as well as the development of the personality of the
42
others. In this way the employee potential increases. The most important thing at this level is to enable
done for them. At this level people are very loyal to the leader and they identify with the organization
and its goals.
Pinnacle is the highest level of leader power and influence. Rare is the leader who reaches this level at
which leaders are respected and followed by people because of what they are. People are completely
loyal to leaders and devoted to doing tasks. The greatest pleasure for the leader is to see people
growing and becoming better. Pinnacle actually represents the pinnacle of leadership and position, the
level at which the
act of following the leader represents a kind of prestige and pleasure for people.
People generally believe the ones that have accepted personality traits and values. The secret of
successful leaders lies in the possession of fundamental values that are rooted in human nature itself,
such as: honesty, fairness, consistency, trust
11).
Analyzing the five levels of leadership Maxwell noted:
You can reach the level above, but you should never leave the previous level
Leaders do not share the same level with every person
The higher the level is, the easier is for the leaders to lead the organization
The higher the level is, the more time is necessary to reach the level
Reaching the level above is a slow process, but the fall might be rapid
s five levels of leadership have stood the test of time:
1.
one. A leader should never leave the previous levels. They should serve as the basis for the new
development.
2. Leadership is a dynamic process, and interpersonal relations change and develop at different levels.
It is a kind of leadership carousel. There are five different groups of followers at five different
levels. Someone on their first day of work will accept the position of the first level, while someone
into whose development the leader invested his effort, will accept the fourth leadership level
(people development).
3. The higher the level is, the easier becomes to lead people. As a leader reaches the level above, his
influence and power increase. Thus the efficacy of people increases. As leader influence and power
increase, it becomes easier for people to follow leaders. Limited influence results in the limited
leadership, while significant influence results in high efficacy.
4. The transition from the first to the second level takes time, effort and commitment to establish
positive relations between a leader and people. The transition from the second to the third level of
leadership is also difficult because it is more difficult to achieve productivity than to establish
positive relations with people. The transition to the fourth level of leadership is even more difficult
and demanding, and it requires more time. At this level people develop in order to become good
leaders. There is no easy way to reach the fifth level of leadership.
5. Maxwell claims that it is more difficult to build a house than to destroy it. Whether a leader will
reach the highest level or not depends on many things, but sometimes only one thing may cause a
which serves as a protection which allows them to reduce or prevent falls (Maxwell, 2002,
Maxwell, 2011; Maxwell, 2011b).
5. ACQUISITON AND TRASNFORAMTON OF LEADER POWER IN AN ORGANIZATION
figure 6). Leaders
derive power from both position and personal resources. Position power stems from the five key
factors: central Picture of the leader, criticality, flexibility, visibility and relevance.
Central/critical Picture in the organization is the leader who has a central role in work and
influences the flow of information within the organization. The Picture structures elements of job
responsibilities and expands communication network within the organization and in the environment.
It also allows monitoring the flow of the processes in the organization: production, marketing,
finances, technology, etc.
43
Leader power
acquistion
Leader power
Leader power
position
Leader individual
power
Knowledge
IInformation
Personal
atraction
Effort
Centrality
Criticality
Flexibility
Visibility
Relevance
Figure 6: Leadership power acquisition
Flexibility allows the leader to generate novel ideas, reduce his own participation in routine activities,
increase the number of tasks for himself and the others, initiate innovative projects, and involve in the
processes of making new decisions and avoiding standardized forms in work.
Visibility increases the number of interactions with significant people, and allows making important
oral presentations, participating in problem-solving teams, publicizing accomplishments of the
organization at the right time and in the right place, as well as the possibility of gaining personal
recognition through internal and external stakeholders.
Relevance allows the leader to maintain external and internal boundaries of the organization, provide
services and information to other work units that operate beyond the boundaries, and to monitor and
assess the results of interpersonal work in the organization. A leader is involved in decision making
pertaining to priority goal setting and assuming a socialization role for new work-unit members
(Michelson).
Four attributes are associated with the building personal power: knowledge, information, personal
attraction and effort (Schermerhorn, & Hunt, & Osborn, 1985).
Knowledge and Information. Leader power can be increased through expertise acquired by
possession of special knowledge and information. Access to key people and data sources also
enhances power potential.
Personal attraction. Agreeable behavior, pleasant personality characteristics, and attractive personal
appearance are referents that attract people to a leader.
Effort of a leader put into preparing and participating in the execution of tasks, professional and
personal traits, as well as the effort of a leader to accomplish work tasks. The effort might extend the
influence on the others.
Position power and personal power are the building blocks for the leadership model of power which in
the second phase transforms into influence to achieve desired results. Figure 7 shows the influence of
the leader which includes willingness of people to help and work with the leader in order to achieve
common goals (Cohen & Manion, & Morrison, 2007).
Leader power
transformation
Leader unfluence
over other
Execution that
minimizes
resistence
Developing
effective influence
strategies
Figure 7: Transformation of leader power
44
Influence also entails any act or potential activity that affects the behavior of another person, group or
set of organizational entities (Cohen & Manion, & Morrison, 2007). Transforming power into
successful influence requires the development of an influence strategy that minimizes resistance,
resentment, and potential abuse.
A leader must maintain perspective in terms of targeting power to achieve successful influence.
Possessing a potentially strong power base to use power is worth little unless you are able to secure
compliance, effort, and commitment from others (Michelson).
6. DEVELOPING STRATEGIES OF INFLUENCE
There are numerous ways of exercising influence. Several studies suggest that influence strategies can
be classified into three broad categories: retribution, reciprocity, and reason (Table I).
Stragegies
Retribution: get the others do
what a leader says
Reciprocity: get the others
follow leadership goals
Reason: show the others that it
makes sense to do what a leader
requires
Table 1: Influence strategies
Direct approach
Indirect approach
1. Coercion (threaten)
2. Intimidation (demand)
3. Bargaining (exchange)
4. Ingratiation (obligation)
5. Present facts (stress,
immediate need)
6. Appeal to personal values
(apply general principles)
David Kipnis and others have developed several general strategies of leader influence (Kipnis &
Schmidt & Swaffin-Smith & Wilkonson, 1984). They list the most to least popular strategies found in
their study of managerial influence styles as shown in Table 2.
Table 2: Most-to-least popular strategies used in all countries
(Source: David Kipnis et al
3 (New York: American Management Association,
1984), 62.)
When managers influenced
When managers influenced
superiors
subordinates
Most popular to least popular
Reason
Coalition
Friendliness
Bargaining
Assertiveness
Higher authority
Reason
Assertiveness
Friendliness
Evaluation
Bargaining
High authority
Sanction
Another researcher, Gary A. Yuki, lists 11 forms of influence and a summary of leader and targetperson requirements for each strategy (Yuki, 2010). Table 3 identifies the different forms of influence.
The research on influence strategies indicates that each approach listed in the classifications has
advantages and limitations. Effective leaders generally use combinations of various strategies for
different purposes and under different conditions.
45
Table 3: Definition of eleven proactive influence tactics
Rational persuasion:
Using logical arguments and evidence to show that a proposal or
request is feasible and relevant to the achievement of work goals
Announcing:
Explaining that performing tasks and supporting proposals will bring
benefit to people to be influenced.
Inspirational appeal:
Focusing on the values and ideals of the organization, or appealing to
compliance with requests
Consulting:
Encouraging the person to be influenced to suggest improvements in a
proposal or to help in the process of activity planning or changes that
represent support and assistance for the person
Interchange:
Providing stimulus, suggesting quid pro quo, and showing willingness
to return a favour later if the target person does what a leader demands
Cooperation:
Willingness to provide resources and help the person to be influenced
if the person accepts the request or approves the proposed measures
Personal appeal:
A leader should not ask the person to be influenced to support a request
or proposal because of friendship, or to ask for a personal favour,
before he tells what it is
Integration:
Using praise or flattery during the process of influence, or showing
belief that the person to be influenced is capable of performing difficult
tasks
Legitimization
Requiring the legitimacy of the request, a certificate of experts or
authority for the validity of rules, policies, contracts.
Pressure
Using claims, threats, frequent checking or constant reminding in order
to get a person to perform a task
Coalition tactics
Asking the others to convince the person to be influenced to do
something, or using the support of the others to make the person to be
influenced agree
The challenge of complex organization diversity and job-related interdependence requires a leader to
select the proper influence strategy to produce positive power dynamics. Leaders should avoid the
pitfall of overreliance on and overuse of a particular influence strategy. Excessive use of an influence
strategy could lead to abuses of influence that may provoke resistance leading to diminished leader
influence over time. It is important to maintain a balanced perception betwee
Leader should provide conditions for dynamically set goals to be achieved without unlimited use of
power and influence which, mainly, produce negative energy that is self-destructing for all the people.
Positive dynamics of power and influence is presented in tables 1 and 2 and it contributes to rational
management in conditions of diversity and interdependance in organizational entities. (Kotter, 1985;
Michelson).
7. POSITIVE POWER AND INFLUENCE
The right choice and use of power and influence provide positive effects in the strategy of
transformation of complex organizations. Inventive thinking by leaders and their creative problem
solving through the development of new products and services are positive force of dynamic processes
of the improvement of organizational market competition, of its better adaptibility to the challenges of
the environment and total social responsibility. The synergy in organization with great diversity of
46
tasks which are inter-dependant and in creative interactions also increases. Creativity is also a
condition for quality excellence in economy. By using power and influence in an adequate way, leader
optimizes results and creates favourable working atmosphere that can face the challenges of a
turbulent environment.
Table 4: Different forms of influence
Form of influence
Agent requirements
Target person requirements
1. Legitimate request
Legitimate justification
Relevant values
2. Instrumental compliance
Control over rewards;
credibility of promise
Relevant needs, openness to
manipulation
3. Coercion
Control over punishments;
credibility of threat
Fear, openness to intimidation
4. Rational persuasion
Insight; technical expertise;
credibility
Relevant values and need
5. Rational faith
Technical expertise; credibility
Low expertise, relevant need;
trust of agent
6. Inspirational appeal
Insight into values and beliefs;
persuasive ability
Relevant values and beliefs
7. Indoctrination
Control of social situation;
relevant skills
Alienation, relevant needs
8. Information distortion
Credibility as information
source
Use of information for
impression formation and
decision making
9. Situational engineering
Control of relevant aspects of
situation
Willingness to accept situation
10. Personal identification
Attractiveness, charisma
Admiration of agent
11. Decision identification
Willingness to allow
participation; relevant skills
Desire to participate; goals
consistent with agent goals
8. NEGATIVE POWER AND INFLUENCE
Figures 8 and 9
total dynamics of a complex organization. The power of abuse is reality in complex organizations.
and interorganizational and intraorganizational conflicts. Battle for power may become a longlasting
catego
production costs increase, innovative capacity decrease, vertical and horisontal conflicts that culminate
in entropy and worsening of social tissue of the organization.(Kotter, 1985).
solved and conflicts of organizational entities, formal and informal groups, as well as individuals.
Bureaucracy conflicts and
that culminates in total failure of all functional parts of the organization.
47
Organizational
outcome
Dinamics
Inventive
thinking
Creative
problem
solving
New
products and
services
Power of
positive
influence
Leaders
influence
Creativity
improvement
Adaptibility and
responsibility
increase
Synergy
increase
Overdimenioned
leaders roles
Negative side
of power throuth
destructive
battle
Power of
negative
influence
Non-existence
of vision
Internal and
external
conflicts
Non efficiency
and cost
increase
Innovative
capacity
decrease
Vertical and
horisontal
conflicts
increase
Employees
radnika
lay off
Figure 8: Leadership:the use of power
Figure 9: Leadership: the use of power
9. ORGANIZATIONAL EFFICIENCY
Organisatonal life described in the model of leader's power and influence suggests complex social
environment in which battles, manipulations, animosities and confrontations happen. That is a
fundamental reality in contemporary, complex organizations. The type of job, working processes,
goals set and decision making are based on great diversity of jobs and their interdependance. The
efficiency of the organization is almost impossible without leader's excellence. Without excellent
leadership it is impossible to achieve the goals set. The excellence in leadership can be approached
from the standpoint of how efficiently a leader manages the organization, makes positive energy in
dynamic behaviour which, in return, affects the complex organization credibility. Social pattern of a
complex organization is given in the Picture 10 and it creates an exciting challenge for a leader who
has to constantly improve his work in the organization in order to achieve organizational excellence.
48
Figure 10: Leadership: the use of power
(Source: Whetten & Cameron, 2011; Mchelson; Kotler, 1985)
49
Power acquisition, power transformation, dynamics, organizational outcome, organizational efficiency
Power of position: Power of position: dominance, criticism, visibility, flexibility, relevance
Development of effective strategy influence, positive dynamic power,
Creative thinking, inventive problem solving, new products and services, creativity improvement,
adaptability and flexibility increase, synergy increase, mission goal and availability, organizational
excellence
Personal power: knowledge, information, personal effort
Performances that minimize resistance and anger, negative dynamic power, power self-increasing,
Non efficiency increase, larger costs, innovation decrease, conflicts increase, employees lay off
Non-productive diversification enhanced, interdependence of similar jobs
Excellence in an organization requires a lot more than a technical competence. That is a different
concept of managing social reality, and that is why leader's power, knowledge, creativity and skills
that can mobilize different people connected by mutual interests, needs and goals, are needed. Leaders
develop efficient leadership through the model, effects of synergy and force of the people.
Power and misuse of the influence lead to the decrease of productivity and counterproductive acting of
organizational entities that fight for power. The end result of a negative, toxic leadership is a general
state of non efficiency and leader's incompetence.
10. CONCLUSION
There are different types of organizations (Blau & Scott, 1962). Most of them are formed on
traditional foundations, in the shape of a pyramid with a hierarchical pinnacle, and based on military
model. They are called formal organizations and they have statement about the mission, tasks, as well
as the list of members, that is, employees. In order to make a rational organization, all the members are
'described' through certain tables, with principles and rules, the chain of managing, unique
management, scope of leadership and communication channels.
For leaders in an organization it is always especially important to establish how and why informal
organizations develop inside of the formal structure. Informal organizations almost always exist,
develop and can help or disturb the mission accomplishment. Establishing of management tasks and
obligations, following the rules determined and responsibilities delegation are of crucial importance
for a leader.
In more complex organizations, as they grow in size, the tendency of organizational units towards
specialization becomes bigger. Specialization can improve efficiency and effectiveness, but too high
specialization can severly endanger a mission. Specialization in complex organizations requires high
level of coordination, and coordination is of crucial importance for any organization, big one or a
small one, specialized or not. By design, most of organizations have the following components
(O'Connor, 2010):
Mission
Goals
Authenticity
Behaviour
Mission of an organization is its reason of existence, that is the component that connects it to the outer
world, it is relevant and in coordination with social order and social progress.
Goals are the result of a general purpose of the organization and its functional division, they are
specific enough so that employees and clients know that they refer to a specific organization.
50
Authenticity is a component by which goals of one organization differ from those of others. In every
organization, goals have to be measurable results, with a time-frame, and designed in the way that
employees can achieve them.
Behaviour refers to working productivity of employees. Responsibility for the behaviour in an
organization is held by human resources. They supervise the employees. Communication channels in
an organization should provide the existence of cause and effect relation between behaviour and goals
in a certain organizational design.
All organizations have managers who have authority and power at all levels, and it means ability to
motivate employees to do tasks and achieve the goals set by positive force of power and influence.
Basic skills of management are contained within technical skills, administrative skills, conceptual
skills and the management of interpersonal relations or organizational behaviour skills.
The leader is at the highest level in an organization and his/her task is to provide planning process,
budgeting, public relations and creating of positive working atmosphere with executive directors.
Leader performs all of that via administrators. His most important task is to define leader's vision of
organization, and collaborators and employees should understand and accept it within five minutes, as
Kotter says. Leaders focus on employees via vision and mission, managers focus on the task they got
from leaders and administrators. Excellent leaders in complex organizations with large number of
employees and decentralized structure, those that function in several countries, with their own
example provide their vision accomplishment, and that vision is accepted by employees as their own.
Leader's ability is to make employees do something that he/she wants, and do it willingly.
Model of excellent leadership in complex organizations means analyzing an organization as a system
and a way in which a complex organization can be efficiently managed. There is no place for
bureaucracy, impersonal and immoral, which represents force of evil and 'forces of order' and making
harmony into a chaos, in such organizations. Complex organization is of system type and can be
analyzed in terms of its roles, outcomes and transformational processes and the way in which it
functions efficiently (McAuley & Duberley & Johnson, 2007).
Complex organizations use redefining through four outline approaches: political, structural, human
resources and a symbolic one, as the substitute for reengineering of business processes in oder to
realize more efficient and effective approach in solving their basic tasks
Bolman & Deal, 2008).
Excellent leadership can be defined in the following way:
LPC = K + R + S + S
LPC leader's power capacity
K - knowledge
R - resources
S - skills
S - situation
LI = (LPC + LII + LA) x CBF
LI leader's influence
LII leader's integrity and identity
LA leader's authority
CBF leader's ability to change the behaviour of people
EL = (LI + LE) x LC
EL excellent leadership
LE leader's energy
LC leader's changes
Note: LE = ; (e=h x t, E=H x t)
h total amount of information achieved by leader's influence in time
H total possible amount of information that can be achieved by leader's influence in time
t - time
Ideal situation for a complex organization and leader is: e = E, that is LE =
=1
Key components of excellent leadership are: leader's influence, leader's energy and leader's
changes.
51
ACKNOWLEDGMENTS
This paper is part of the research project 41010, funded by the Ministry of Science and Technology of
the Republic of Serbia.
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CIP -
,
621(082)
621:004(082)
005.6:621(082)
INTERNATIONAL Conference "Research and Development in
Mechanical Industry" (13 ; 2013
Proceedings. #Vol. #1 / 13th International
Conference "Research and Development in Mechanical
Industry" - RaDMI 2013, Kopaonik,
Serbia, 12-15. September 2013. ; [organizer] SaTCIP [Scientific
and Technical Center for Inte
Technical Center for Intellectual Property, 2013
Banja : Scientific and Technical Center for Intellectual Property). - XXI
str, str. 1-622, XI str. : ilustr. ; 24 cm
ISBN 978-86-6075-042-8