MBA 552

Organizational Behavior &

Leadership

Historical Evolution of

Management Thought

• Pre-Scientific Pre – 1880s

• Focus –

– Basic principles for nature and society

– Position of authority and order

– Economic Rationale

– Early development of division of labor

Scholars – Pre-scientific

• Jethro – Moses’ father-in-law

– Gave advice to Moses regarding authority over the tribes of Israel

• Sun tzu – Wrote “The Art of War” 500BC

– Recognizes need for hierarchy, communications, and planning

• Aristotle 360 BC – Socrates 44 BC

– Management related to cultural environment

• Xenophon 370 BC – Division of labor

• Machiavelli – Unity of command and leadership

• Adam Smith – Factory system & Division of Labor

Work and the Ruling Class

• Work – Accomplished by slaves and lower level classes of people

• Elite ruled according to traditions

The Classical Era 1880s-1930s

• Scientific Management

• Administrative school

• Structuralist school

The Classical Era 1880s-1930s

• Focus

• Scientific Management

– Organizing, managing, effective, efficient

• Administrative school

– Basic functions of managers

• Structuralist school

– Characteristics of the ideal type of an organization

The Classical Era 1880s-1930s

• Scholars

• Scientific Management

– Frederick Taylor

– work measurement

– Best way to do a job

– Selection of individuals for the position

– Financial incentives

The Classical Era 1880s-1930s

• Scholars

• Administrative school

– Henry Fayol

– Planning

– Organizing

– Commanding

– Coordinating

– Controlling

The Classical Era 1880s-1930s

• Scholars

• Structuralist school

– Max Weber

– Bureaucratic Model

• Order via rules, procedures, authority, division of labor, functional specialization, well-defined hierarchy, differentiation of organizational functions, uniformity, and consistency

The Neoclassical Era 1830s-1960s

• Human Relations School

• Behavior schools

– Group Dynamics

– Leadership

– Decision making

The Neoclassical Era 1830s-1960s

• Cooperative systems

• Informal roles and norms influence individual performance

• Work group dynamics influence individual and group performance

• Decision-making styles influence performance

The Modern Era 1960- present

• Systems School

• Societal Systems School

• Management science school

• Contingency school

The Modern Era 1960- present

• Systems School

– Organizations are composed of systems and subsystems

• Societal Systems School

– Composed of social, technological, and environmental subsystems

The Modern Era 1960- present

• Management science school

– Quantitative methods used to solve management and organizational issues

• Contingency school

– Explores alternative organization design configurations and managerial actions for changing situations

Expectations theory

• Self-fulfilling prophecy

Expectations theory

• Self-fulfilling prophecy

– Belief that an event or outcome will take place

Expectations theory

• Self-fulfilling prophecy

• Three steps

– Belief an event will occur

– New behavior performed that would not have been performed if not for the expectation

– The expected event occurs

• Individual

• Team

• Organizational

Learning

Individual Learning

• Change of skills, insights, knowledge, attitudes, and values acquired by self-study, technology based instruction, insight and observation.

Power

• America’s last dirty word

• Those that openly seek it are categorized as power mongers – as if this is some sort of stigma

• They are looked down upon as lowly individuals

Concept of Power

Power the ability to influence another person

Influence the process of affecting the thoughts, behavior, & feelings of another person

Authority the right to influence another person

The Meaning of Power

Power is the capacity of a person, team, or organization to influence others.

– The potential to influence others

– People have power they don’t use and may not know they possess

– Power requires one person’s perception of dependence on another person

C. Price, Vancouver Province

Power

• The ability to produce change by mobilizing one or more people to take action

Power

Important to achieve organizational goals

Alliances are formed

Work gets accomplished

Leadership happens

Concept of Power

Zone of Indifference the range in which attempts to influence a person will be perceived as legitimate & will be acted on without a great deal of thought

Zone of Indifference

Managers strive to expand the zone of indifference

Z o n e o f I n d i f f e r e n c e

Sources of Power

Legitimate Power

Reward Power

Coercive Power

Expert Power

Referent Power

Reuters Archive Photos

Sources of Organizational

Power: Interpersonal

Reward Power - agent’s ability to control the rewards that the target wants

Coercive Power - agent’s ability to cause an unpleasant experience for a target

Legitimate Power - agent and target agree that agent has influential rights, based on position and mutual agreement

Referent Power - based on interpersonal attraction

Expert Power - agent has knowledge target needs

Which Power is Most Effective?

Expert Power!

• Strong relationship to performance & satisfaction

• Transfers vital skills, abilities, and knowledge within the organization

• Employees internalize what they observe & learn from managers they consider “experts”

Information Power

Information Power access to and control over important information

• Formal/informal position in communication network

• Interpreting information when passing it on

Information and Power

• Control over information flow

– Based on legitimate power

– Relates to formal communication network

– Common in centralized structures (wheel pattern)

• Coping with uncertainty

– Those who know how to cope with organizational uncertainties gain power

• Prevention

• Forecasting

• Absorption

Using Power Ethically

Does the behavior produce a good outcome for people both inside and outside the organization?

Does the behavior respect the rights of all parties?

Does the behavior treat all parties equitably and fairly?

Two Faces of Power

Personal Power

 used for personal gain

Social Power

 used to create motivation

 used to accomplish group goals

Successful Power Users

• Have high need for social power

• Approach relationships with a communal orientation

• Focus on needs and interests of others belief in the authority system belief in justice preference for work & discipline altruism

Sources of Organizational Power:

Intergroup

• Control of critical resources

• Control of strategic contingencies activities that other groups need to complete their tasks

• Ways groups hold power over other groups

– Ability to reduce uncertainty

– High centrality - functionality central to organization’s success

– Nonsubstitutability - group’s activities are difficult to replace

Power Analysis:

A Broader View

Organizational Power

Coercive Power influence through threat of punishment, fear, or intimidation

Utilitarian Power influence through rewards and benefits

Normative Power influence through knowledge of belonging, doing the right thing

Power Analysis:

A Broader View

Organizational Membership

Alienative Membership members feel hostile, negative, do not want to be there

Calculative Membership members weigh benefits and limitations of belonging

Moral Membership members have positive organizational feelings; will deny own needs

Kanter’s Symbols of Power

Ability to intercede for someone in trouble

Ability to get placements for favored employees

Exceeding budget limitations

Procuring above-average raises for employees

Getting items on the agenda at meetings

Access to early information

Having top managers seek out their opinion

Kanter’s Symbols of

Powerlessness

Top Executives

• budget cuts

• punishing behaviors

• top-down communications

Staff Professionals

• resistance to change

• turf protection

Managers

• assign external attribution blame others or environment

First-line Supervisors

• overly close supervision

• inflexible adherence to rules

• do job rather than train

Key to overcoming powerlessness: share power & delegate decision making

Korda’s Power Symbols

Power there are more people who inconvenience themselves on your behalf than there are people on whose behalf you would inconvenience yourself

Status a person’s relative standing in a group based on prestige and deference

Time

Access

Furnishings

Using Power Effectively

• Use power in ethical ways

• Understand and use all of the various types of power and influence

• Seek out jobs that allow you to develop your power skills

• Use power tempered by maturity and selfcontrol

• Accept that influencing people is an important part of the management job

Analyzing Power Dynamics

• Think

• Think

• Think

• Then Act

Analyzing Power Dynamics

• Power Distribution

– Who has the power

– Who needs the power

– What can be done to influence the power holder

• How well do I know the power holder

• When can I get to see the power holder

• What strategies have influenced the power holder in the past

Analyzing Power Dynamics

• Structural Diversity

– What is the relationship of the two projects

– Growth potential of each, profits long and short-term organizational benefits

– Do they depend on each other?

• Interdependence

– Breeds dependence and creates a power differential

Power and Dependence

Person B’s counterpower over Person A

Person

A

Person

B

Person A’s power over

Person B

Person

B’s Goals

Power - Legitimate

• Formal – organizationally assigned

– Part of the managerial hierarchy

• Informal – Expert power

– Superior expertise in the ability to perform a particular job

Model of Power in Organizations

Sources

Of Power

Power over Others Legitimate

Reward

Coercive

Expert

Referent

Contingencies

Of Power

The Limits of Legitimate Power

The Caine Mutiny illustrates the limits of legitimate power in organizations. Captain Queeg

(Humphrey Bogart,) asked his crew to do more than they were willing to follow, so they staged a mutiny.

Reuters Archive Photos

Increasing Nonsubstitutability

Differentiation

Controlling

Tasks

Increasing

Nonsubstitutability

Controlling labor

Controlling

Knowledge

Contingencies of Power

Sources

Of Power

Power over others

Contingencies

Of Power

Substitutability

Centrality

Discretion

Visibility

Consequences of Power

Sources

Consequences of Power of Power

Expert

Power

Referent

Power

Legitimate

Power

Reward

Power

Coercive

Power

Commitment

Compliance

Resistance

Sexual Harassment and Power

• Harasser stereotypes the victim as subservient and powerless

• Harasser threatens job security or safety through coercive or legitimate power

• Hostile work environment harassment continues when the victim lacks power to stop the behavior

Office Romance and Power

• Co-workers believe that employees in relationships abuse their power to favor each other.

• Higher risk of sexual harassment when relationship breaks off.

Organizational Politics

• Attempts to influence others using discretionary behaviors to promote personal objectives

– Discretionary behaviors -- neither explicitly prescribed nor prohibited

• Politics may be good or bad for the organization

Political Behavior in

Organizations

Organizational Politics the use of power and influence in organizations

Political Behavior actions not officially sanctioned by an organization that are taken to influence others in order to meet one’s personal goals

Types of Organizational Politics

Managing impressions

Attacking and blaming

Creating obligations

Types of

Organizational

Politics

Cultivating networks

Controlling information

Forming coalitions

Conditions for Organizational

Politics

Personal

Characteristics

Scarce

Resources

Tolerance of

Politics

Conditions

Supporting

Organizational

Politics

Complex and

Ambiguous

Decisions

Controlling Political Behavior

Provide

Sufficient

Resources

Remove

Political Norms

Introduce

Clear Rules

Free Flowing

Information

Hire

Low-Politics

Employees

Increase

Opportunities for Dialogue

Manage Change

Effectively

Peer Pressure

Against Politics

Persuasive Communication

Communicator

Characteristics

Communication Medium

• Expert

• Credibility

• Attractive

Message

Content

• Present all sides

• Few arguments

• Emotional appeals

• Inoculation effect

Audience

Characteristics

• Self-esteem

• Inoculated

Effective Political Characteristics

What characteristics do effective political actors possess?

Consultation

Inspirational appeals

Rational persuasion

Ingratiation

Coalition

Exchange tactics

Upward appeals

Pressure

Influence Tactics

Upward Influence: the boss

Lateral

Influence: a coworker

Downward Influence: an employee

Managing Political Behavior

• Maintain open communication

• Clarify performance expectations

• Use participative management

• Encourage cooperation among work groups

• Manage scarce resources well

• Provide a supportive organizational climate

Managing Up: The Boss

Understand Your Boss and Her Context

Her goals and objectives

The pressures on her

Her strengths, weaknesses, blind spots

Her preferred work style

Assess Yourself and Your Needs

Your own strengths and weaknesses

Your personal style

Your predisposition toward dependence on authority figures

Managing Up: The Boss

Develop and Maintain a Relationship that

Fits both your needs and styles

Is characterized by mutual expectations

Keeps your boss informed

Is based on dependability and honesty

 Selectively uses your boss’s time and resources

SOURCE: Information on slides 21-22 adapted and reprinted by permission of Harvard Business Review. From J. J. Gabarro and J. P.

Kotter, “Managing Your Boss,” Harvard Business Review (January-February 1980): 92100. Copyright© 1980 by the Harvard Business

School Publishing Corporation; all rights reserved.

Sharing Power: Empowerment

Empowerment: sharing power in such a way that individuals learn to believe in their ability to do the job!

Empowerment’s Dimensions

Meaning fit between the work role and the employee’s values and beliefs

E 2s

Self-determination having control over the way one does one’s work

Competence belief that one has the ability to do the job well

Impact belief that one’s job makes a difference within the organization

Guidelines for Empowering

• Express confidence in employees

• Set high performance expectations

• Create opportunities for participative decision making

• Remove bureaucratic constraints that stifle autonomy

• Set inspirational and meaningful goals

Using Power Effectively

• Use power in ethical ways

• Understand and use all of the various types of power and influence

• Seek out jobs that allow you to develop your power skills

• Use power tempered by maturity and selfcontrol

• Accept that influencing people is an important part of the management job

Understand and use all of the various types of power and influence

• Always say less than necessary

• Guard your reputation with your life

• Court attention at all cost

• Make other people come to you

• Win through actions, not arguments

Understand and use all of the various types of power and influence

• Avoid the unhappy and unlucky people

• Learn to keep people dependent on you

• Do not isolate yourself

• Know who you are dealing with

• Play dumb

Understand and use all of the various types of power and influence

• Keep your hands clean

• Enter action with boldness

• Act well to be treated well

• Ignore the things you cannot have

• Do not try to directly replace anyone

– You may be compared to that great person

Understand and use all of the various types of power and influence

• Preach the need for change

• Never appear too perfect

• Do not go past your goal – until you are able to formulate new directions

Formula for Success

• If A equals success, then the formula is

A = X + Y + Z.

X is work.

Y is play.

Z is keep your mouth shut.

-- Albert Einstein