Power..Meaning
• Refers to a capacity that A has to influence the
behavior of B so that B acts in accordance with
A’s wishes
The definition implies a potential that need
not be actualized to be effective and a
dependency relationship.
Forbes List of Powerful People
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Barak Obama, 1
Angela Merkel(Mrs), Chanceller-Germany, 2
Vadimir Putin, President- Russia, 3
Bill Gates, Co Chairman, Bill & Milinda Gates Foundation
Pope Benedict XVI, Pope – Roman Catholic
Ben Bernake, Chairman-Federal Reserve, USA
Xi Jinping, Gen Secy, Communist Party, China, 9
David Cameroon, PM, UK, 10
Sonia Gandhi(Mrs), 12
Warren Buffet, Chairman, Berkshire Hathway,15
Michael Duke, Wamart Stores, 17
Lary Page, CEO, Google, 20
Jeffrey Immelt, GE, 24
Mark Zuckrberg, CEO, Facebook, 25
Rupert Murdoch, CEO
Timothy Cook, Apple Ceo, 35
Mukesh Ambani, Chairman< reliance, 37
Aki Toyoda, CEO-Toyota Motors, 43
Lakshmi Mittal, CEO, Arcelor Mittal
Bill Clinton, Chairman Global Initiative, 50
GD & Questions to students-Forbes List of Powerful
People-Analysis
• Women in list of 50
• Political Leaders wield power followed by
Business Leaders
• More Indians in the list.
• It is not only position or money, it is also
about other things – Pope, Bill Clintonb Bill
Milinda Gates Foundation
Sources of Power
• Formal power
– Coercive power
– Reward power
– Legitimate power
• Personal power
– Expert power
– Referent power
• Dependency – The Key to power
– Importance
– Scarcity.
• Power tactics
Sources of Power
• Formal power
– Coercive power; Fear of negative result. Dictators thrive on this.
Fear of dismissal in organization if I value or depend on my job
– Reward power – opposite of fear, Reward.
– Legitimate power- source of power is formal position in the
organization.
• Personal power
– Expert power – some body has influence because his expertise
is valuable for organization
– Referent power – people like, respect and admire stars, hence
they exercise power over people as people want to please the
stars.
• Dependency – The Key to power
– Importance
– Scarcity.
Power & Poilitics Examples
• Resignation(poilitics) before increment. But you can not resign if
you are not good performer(power)-it can backfire.
• Do not mess up with this CEO p169
• Jkpm expert workmen
• Referent power-advertisement by Sharukh
• Gandhi.. What was his source of power
• Effective ceo use both position and personal power
• Have good relation with boss of Boss. Lesson for MT from campus.
• Skm opposed to mckinsey
• Sr leader want good people to leave orgn
• Vote bank politics
• British – divide-rule
• USA attacked Sadam/iraq because of nuclear weapon with Iraq.
What was real reason?
Power Examples
• Resignation(poilitics) before increment. But you can not resign if
you are not good performer(power)-it can backfire.
• Do not mess up with this CEO p169
• Jkpm expert workmen
• Referent power-advertisement by Sharukh
• Gandhi.. What was his source of power
• Effective ceo use both position and personal power
• Have good relation with boss of Boss. Lesson for MT from campus.
• Skm opposed to mckinsey
• Sr leader want good people to leave orgn
• Vote bank politics
• British – divide-rule
• USA attacked Sadam/iraq because of nuclear weapon with Iraq.
What was real reason?
Sources of Power
• Power Tactics (upward, downward & lateral
influence)
– Legitimacy
– Rational persuasion.
– Inspirational appeals.
– Consultation.
– Exchange.
– Personal appeal.
– Pressure.
– Coalitions..
Impression management in organizations & defensive
behaviors
• Defensive behaviors
– Avoiding action – buck passing, playing dumb,
stalling
• Avoiding blames – playing safe, justifying, scape
goating, misrepresenting
• Impression management - Conformity,
excuses, apologies, flattery, self promotion,
favors, association…
Politics – Power in Action
• When people or employees in organization
convert their power in to action, we describe
them as being engaged in politics. Those with
good political skill have the ability to use their
bases of power effectively
• Power & Politics at it’s best; The case of Indira
Gandhi & Indo Pak War
• Is politics rare in organizations?
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The case of Indira Gandhi & Indo Pak
War
Unrest & popular uprising in Bangladesh against west pak rulers
Suppression & violence by Pak Army against popular movement & people.
Exodus to India.
Backdrop-Indo Pak enimity.
Indira appeal to international community to ask Pak to refrain. What was her tactics?
Mukti bahini took birth & grew in strengths with active but covert support of India. Trained by
Indian Army. Not known by outside world
More exodus to India. Indira appealed to international community. She called Henry Kissinger in the
presence of Gen Manekshaw – ‘if you do not take action, I will ask him to deal with situation’
Mujibur Raheman imprisioned for sedition. Announced independent Bangladesh. India first country
to recognize.
Indira provoked Pak to start war. Pak fell to her trap. Why Indira did not want to start war.
India launched attack on all three front-naval, airstrike, army. Pak desparately ask for USA help. USA
threatened India. India ask for USSR.
India wanted to finish war before USA interventions.
Shimla agreement..
..
What is politics & power here
• India is superior military, But USA was supprt pak, india defence treaty with USSR
• Indira always project strengths to USA & world presence. Dare USA
Politics & organizational performance
• Too much of is bad
• How great organizations overcome it
– Shared vision & uncompromising focus on it
– Transparency. I as a Boss need to tell all why I
promoted x & not y and what basis
– Leaders.
Insight about Power & Politics
• Power is one of the important needs which drive some
people more than others
• Power is not a bad word. Intent is important.
– One of the factors that drove Henry Ford & Steve Jobs is
power
– So was the case with Hitler & Stalin
– What is the difference?
• Effective CEOs use both formal & personal power
• Power & politics negatively engaged is bad for
organizations
• As professionals, be aware of power & politics. Do not
become victim or victimize others. Leverage it for
individual & organizational excellence
What is your source of power...
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Expertise
Relationship
Personality
Goodhuman being
Ability to influence
Position
Intimidation/fear/..
What is your source of power; Exercise
• How do I influence others?
• Take feedback from one of your friends
Exercise – Forbes List
• Questions
– What does it speak
– Analysis – analytical ability of MBAs
Concept & terminology students
should be familiar with
Conflict Management
• What is conflict
• Is conflict natural process in human interaction.
Why do people get in to conflicts primarily.
• Are all conflicts bad?
• How do individuals manage conflict
• How organization create functional conflict.
• How organizations resolve conflicts
• What is your conflict management style
• Negotiation & conflict management
What is conflict
• Range from minor difference of opinion,
disagreement to destruction of other party in
other extreme.
• Conflict intensity continuum
– Minor disagreement or misunderstanding, overt
questioning or challenging others, assertive verbal
attacks, threats & ultimatum, aggressive physical
attacks, overt efforts to destroy the other party.
Question – give examples
Is conflict natural process in human interaction. Why do
people get in to conflicts primarily?
• Yes or No?
• If yes, why so? Based on OB studies.
• Conclusion…issue is not whether there is
presence of conflict or not but how effective it
can be managed.
• Are all conflicts bad?
Are all conflicts bad?
• Yes or No?
• Functional & dysfunctional outcome
– Quality of decisions, creativity & innovation,
prompts self evaluation
– Discontent, relationship, infighting, destructions
• Creating functional conflicts
– Hewlit Packards rewards dissent with respect
– IBM – formal & informal forums to criticize
management policies & leader’s action without
personalization
How do individuals manage conflict
• Competing – when person or party is seeking to satisfy own interest,
regardless of the impact on other parties to the conflict, that person or
party is competing. Example
• Collaborating – when the parties to conflict each desire to fully satisfy the
concerns of all parties, we have cooperation & the search for a mutually
beneficial outcome.
Example- organizations compete in certain areas & collaborate in certain
other areas- AV Birla & JKPM in Orissa
• Avoiding – A person may recognize that a conflict exist & want to
withdraw from it or suppress it. Example – Ignore a conflict & avoiding
others with whom you disagree.
• Accommodating – when one party seeks to appease an opponent, that
party may be willing to place the opponent interest above his or her own.
• Compromising – when each party to conflict seeks to give up something,
sharing occurs, resulting in a compromised outcome
Exercise; What is your style & take feedback based on your conduct last three
months
How do organizations manage conflict
• Shared vision & uncompromising focus on
organizational goals. Super ordinate goals
• Values, behaviors, rules of the game defined and
communicated.
• Transparency, openness, Fairness.
What it does – build trust.
Example – Formal & informal forums open discussion on issues without
personalization & no seeping under carpet
• The Leader(s)
Discussion – What Aragones did to build unity &
harmony among players in Span context?
Those who manage conflict best..
• Life Positions – how you see yourself and others
– I am ok – others are not ok. I win you lose.
Which leader come to your mind
– I am not ok you are not ok. I lose you lose
– I am not ok you are ok. I lose you win
– I am ok you are ok. I win you win
• Which is best life position
• What is your life position. Discussion how do you
know what is your life position – the behavioral
indicators
Negotiation…
• Good negotiators
– Win win as first options
– Environmental awareness…what is the context,
what goal is best..
– Negotiation skill.
Organization Structure
• Different elements of organization & their
usefulness
• What is organization structure
• Organizations design structure that suit the &
enable them.
• Do organizational design impact employee
behaviors
Different elements of organization & their usefulness
• First class – 7 S model & 8 primary &
secondary practices
What is organization structure
• Defines how job tasks are formally divided, grouped &
coordinated.
• Six elements; work specialization, departmentalization,
chain of command, span of control, centralizationdecentralization, formalization.
• Work specialization
– Ford Assembly line production & how it enable it to
produce low cost cars in mass scale quickly.
– Breaking jobs in to small standardized tasks, each
workmen need to have specialized skill in limited domain
– Advantage/disadventage & impact on satisfactiondissatisfaction
What is organization structure
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Departmentalization– Grouping of common tasks. Marketing, Production, Maintenace
– Advantages & disadvantages.
– TPM.
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Chain of command
– Line of authority or chain of command. Who will report to whom.
– Authority & unity of command
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Span of control
– How many employees can a Manager effectively direct
– Advantages & disadvantages – Narrow/small vs big span of control
– Example.
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Centralization & Decentralization
– Degree to which decision making is centralized or decentralized.
– Highly centralized organization – decision making by sr leaders.
– Current approach – decentralization & empowerment, flat organization
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Formalization
– To the degree to which jobs within organization are standardized. Standardization & freedom
for employee
Span of Control…
• Formalization
– To the degree to which jobs within organization
are standardized. Standardization & freedom for
employee
Common organization design
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Simple structure
Bureaucracy
Matrix
New organization design– Team structure
– Virtual organization
– Boundary less organization
Group Behavior..1
• Q
GD on Group Cohesiveness..2
• Question – What you can do to build
cohesiveness in various groups/group you are in?
• Action points
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Make the group smaller
Encourage agreement with group goals
Increase time members spend together
Increase the status of the group and the perceived
difficulty of attaining membership in the
group(Mumbai gymkhana club..)
– Stimulate competition with other group
– Give rewards to the group rather than to individual
member
– Physically isolate the group
Difference between Group & Team
p339 book
• Group – as two or more person interacting
who have come together to achieve particular
objectives. A ‘Work Group’ is a group that
interacts primarly to share information and to
make decision to help each member perform
within his or her area of responsibility
POWER
“Ability to influence and control
anything that is of value to
others.”
POWER vs. AUTHORITY
POWER
May or may not be
legitimate.
AUTHORITY
Legitimate.
May or may not be liked
Has a willing acceptance
by the person over whom it of the person over whom it
is exercised.
is exercised.
POWER vs. INFLUENCE
POWER
Has the ability to alter
reality.
INFLUENCE
Can only alter a person’s
perceptions about reality
and the relationships in the
organization.
TYPES OF POWER
I. Coercive Power
II. Reward Power
III. Legitimate Power
IV. Expert Power
V. Referent Power
DEPENDENCY FACTOR
Dependency is key element in study of power.
Dependency
Alternate
source
Level of dependency
Importance
Scarcity
Non-substitutes
Power corollary
• The exercise of power comes with
cost.
• It is important to maintain a
balance of power
FACES OF POWER
-ve
power
• Based on personal
power
• Win-lose situation
+ve
• Based on social
power
• Win-win situation
power
Power and control
traditional
• Centralization
• Exercised by
few key
executives
behavioral
• Decentralization
• Believes in
information
sharing
POWER STRUCTURE AND BLOCS
POWER STRUCTURE
 POWER RELATIONS EXISTING BETWEEN THE MEMBERS OF AN
ORGANISATION USUALLY MATCH THEIR POSITION IN THE
ORGANISATIONAL CHART.
POWER BLOCS
 POWER BLOCS ARE LARGE GROUP OF PEOPLE HAVING
LIMITED INDIVIDUAL POWER,WHO COMBINE THEIR POWER
TO REDUCE OR BALANCE THE POWER OF THOSE ON WHOM
THEY DEPEND.
Power structure
Direct power of ‘A’ = Indirect power of ‘A’
A
A
B
B
C
D
C
Direct power
Indirect power
Power structure
• Indirect power > Direct power
(power elites)
(subordinate power)
A
D
E
B
F
G
H
I
C
J
K
L
POWER BALANCE
• WHEN THE DEGREE OF DEPENDENCY OF THE
TARGET IS EQUAL TO THE DEGREE OF POWER
EXERCISED BY THE AGENT, THEN POWER IS SAID
TO BE BALANCED.
VARIOUS POWER PLOYS
1. UPWARD STRATGEGIES
2. DOWNWARD STRATGEGIES
3. LATERAL STRATGEGIES
CONTINGENCY APPROACHES TO POWER
Power by being in “right place”
Control over
Information
Control over
Resources
Right
Place
Control over
Position
CONTINGENCY APPROACHES TO POWER
Two Way Reciprocal Nature Of Power
Relationship
Strength Of Power
Depends Upon
Interdependency
Critical
Importance
Influencability Of
Target
Degree
Of
Dependency
Uncertainty
Culture
Influencability
of target
Personality
Traits
Age
Intelligence
Power in groups : coalitions
 People form coalition to:
Combine their resources
Increase their bargaining power.
Bring balance in power.
 Organizational coalition has large membership.
 Formation of organizational coalitions depend on
Degree of interdependence between departments
Nature of task/work.
Organizational
Politics
Politics: Power in Action
Political Behavior
Activities that are not required as part of one’s formal
role in the organization, but that influence, or attempt
to influence, the distribution of advantages or
disadvantages within the organization.
Legitimate Political Behavior
Normal everyday politics.
Illegitimate Political Behavior
Extreme political behavior that violates the implied rules
of the game.
Factors Relating to Political Behaviour
Locus of
Control
Level of
Self-Monitoring
Individual
Factors
Work
Environment
Strengths of the
Individual’s
Power motive