14–0 Power – meaning Power is one’s ability to influence other people Power is an exchange relationship between an agent & a target Agent is a person who uses the power and target is the receipt of the attempt to use power According to Stephen. P. Robbins, “Power us defined as the ability to influence and control anything that is of value of others” According to G.R.Salancik and N.Pfeffer, “ Power is the ability to get things done the way one wants them to be done” A Definition of Power Power A capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes. A B Dependency B’s relationship to A when A possesses( have) something that B requires. 14–2 Nature of Power 1) Reciprocal Relationships: Power relationships in an organization is reciprocal because it exists in a relationship between two or more persons . It is based on two way traffic influencing others and being influenced. Therefore it is incorrect to say that power exists with top ranking officials or with the managers. 2) Dependency Relationships: This is an important characteristics of power. When a person is more dependent on a person more power is exerted on him 3) Power is specific: Power is specific in the sense that specific person can exercise it on some specific occasions only. Power cannot be exercised at all times and by all the people © 2005 Prentice Hall Inc. All rights reserved. 14–3 Nature of Power 4) Unequal Distribution: Power is not equally distributed among members since different individuals have varied type and levels of knowledge, experience, education, skill and hierarchical authority. They are therefore likely to differ in terms of their power to influence others. 5) People differ in terms of values: In terms of their values, people differ and on the gain and exercise of power. Research indicates that the amount of power exercised by an individual is the function of his on her power motive 6) Resistance to change: Power holders resist attempts to change the distribution of power. Person who strives for power and are able to acquire it, are willing to share it with other members of the group © 2005 Prentice Hall Inc. All rights reserved. 14–4 Nature of Power 7) Power losers attempts to form coalition: Power losers usually attempt to increase their power individually and if they failed, form a coalition. To regain influence by becoming a power holder, he loses attempt to build personal power base, though it may be difficult, risky and costlier 8) Power can expand or contract: It will depend on the person who habituated to exercise power to expand it or contract. When a person reaches a higher position his legitimate power attached with his position simultaneously increase. When such a person is shifted from one department to another his power contracts © 2005 Prentice Hall Inc. All rights reserved. 14–5 Sources of Power Coercive Power Reward Power Legitimate Power Expert Power Referent Power Reuters Archive Photos Consequences of Power Sources of Power Consequences of Power Expert Power Commitment Referent Power Legitimate Power Compliance Reward Power Coercive Power Resistance SOURCES OF POWER 1)Formal Power Is established by an individual’s position in an organization; conveys the ability to force or reward, from formal authority, or from control of information. a)Coercive Power A power base dependent on fear. Individuals ability to influence others behaviors by punishing their undesirable behavior e.g. dismissal, suspension, demotion 14–8 SOURCES OF POWER b)Reward Power Individual’s ability to influence other’s behavior by rewarding their desirable behavior. Compliance achieved based on the ability to distribute rewards that others view as valuable. E.g. pays, promotions, recognition © 2005 Prentice Hall Inc. All rights reserved. 14–9 SOURCES OF POWER c)Legitimate Power The power a person receives as a result of his or her position in the formal hierarchy of an organization. Manager’s ability to influence sub –ordinates behavior because of the managers formal position in org. © 2005 Prentice Hall Inc. All rights reserved. 14–10 SOURCES OF POWER d)Information power: The power that stems from access to and control over information. Informational power comes from access to facts and knowledge that others find useful or valuable © 2005 Prentice Hall Inc. All rights reserved. 14–11 SOURCES OF POWER 2)Informal Power: The power that comes from individual characteristics is called the informal power a)Expert Power Influence based on special skills or knowledge. Individuals ability to influence others behavior because of recognized competencies, talents or specialized knowledge b)Charismatic Power An extension of referent power stemming from an individual’s personality and interpersonal style. SOURCES OF POWER c)Referent Power Individuals ability to influence other’s behavior as a result of being respected, admired, liked. Influence based on possession( control) by an individual of desirable resources or personal traits. Individuals strength 14–13 SOURCES OF POWER 3)Sources of Functional and Divisional Power – Ability to control uncertain contingencies • A contingency is an event or problem that could occur and must be planned for, by having people and resources in place to deal with it. – Irreplacability • A function or division gains power when it is irreplaceable and no other function or division can perform its activities – Centrality • The power of a function or division also stems from its importance, or centrality, to the organization that is how central it is to the organization’s operations and the degree to which it lies at the center of information flows – Ability to control and generate resources • The ability to control and generate resources for an organization is another source of functional and divisional power © 2005 Prentice Hall Inc. All rights reserved. 14–14 SOURCES OF POWER 4)Structural Sources of Power :I mportant structural sources of power include knowledge, resources, decision making and networks. a)Knowledge as Power: The concept of knowledge as power means that individuals, teams, groups, or departments that possess knowledge are crucial in attaining the organisation's goals. Intellectual capital represents the knowledge, knowhow, and competency that exist in the organisation. This intellectual capital can provide an organisation with a competitive edge in the marketplace. b)Resources as Power: Organizations need a variety of resources, including money, human resources, equipment, materials, and customers to survive. The importance of specific resources to an organisation's success and the difficulty in obtaining them vary from situation to situation. The departments, groups, or individuals who can provide essential or difficult-to-obtain resources acquire more power in the organisation than others. © 2005 Prentice Hall Inc. All rights reserved. 14–15 SOURCES OF POWER c) Decision making as Power: The decision making process in an organisation creates more or less power differences among individuals or groups. Managers exercise considerable power in an organisation simply because of their decision making ability. Although decision making is an important aspect of power in every organisation, cultural differences make for some interesting differences in the relationship. For example, in Chinese organisation, decision making power was more decentralised in manufacturing firms than in service organisations. The reverse was true in British firms, with power being more decentralised in the service organisations than in the manufacturing firms. d) Networks as Power: The existence of structural and situational power depends not only on access to information, resources and decision making, but also on the ability to get cooperation in carrying out tasks. Managers and departments that have connecting links with other individuals and departments in the organisation will be more powerful than those who don't have. © 2005 Prentice Hall Inc. All rights reserved. 14–16 Power Tactics Power Tactics Ways in which individuals translate power bases into specific actions. Influence Tactics: • Legitimacy • Rational persuasion( balanced) • Inspirational appeals • Consultation- discussion • Exchange • Personal appeals • Ingratiation- humble way • Pressure- positive • Coalitions • Bargaining, sanction, 14–17 Nine Generic Influence Power Tactics Rational persuasion. Trying to convince someone with reason, logic, or facts. Inspirational appeals. Trying to build enthusiasm by appealing to others’ emotions, ideals, or values. Consultation. Getting others to participate in planning, making decisions, and changes. Ingratiation. Getting someone in a good mood prior to making a request; being friendly, helpful, and using praise or flattery(sweet talk) Personal appeals. Referring to friendship and loyalty when making a request. Nine Generic Influence Tactics Exchange. Making express or implied promises and deal favors. Coalition tactics. Getting others to support your effort to persuade someone.- unions Pressure. Demanding compliance or using intimidation(fear) or threats. Legitimating tactics. Basing a request on one’s authority or right, organizational rules or polices, or express or implied support from superiors. Power Centres Power centre is a person who is in close vicinity of higher management and whom management trusts and takes feedback from. The power centres people may be from different caters and it need not be the person who is holding higher post in the organization. It may be the boss relatives, friends or driver etc Ways to use power centres: 1) Destabilise: Power centre creates a crisis or hires a change agent that will be empowered to shake people up. It will help to improve the flexibility of people to work in the organization. Power centres can be used to weaken the environment 2) Communicate: It clearly articulates an inspired vision for the change and overall organization. This helps to communicate views of one © 2005 Prentice Hall Inc. All rights reserved. 14–20 person to another Power Centres 3) Defuse Resistance: It also exploits channels of influences like relationship power. This results in fragmentation of old alliances, causing the organization to create new alliances and establish power at lower levels within the ranks 4) Be Deliberate: Power centres create an insight to know the human behaviour in a better way and do not overlook them. It helps to understand the needs and self interests of staff members. By using some power to satisfy a portion of those needs. It is possible to create alignment with the transformation process 5) Dominate Sequence: It becomes necessary as leader to determine how the change/ transformation process will begin. Power centre dominates forward as a way to lead the path for the transformation © 2005 Prentice Hall Inc. All rights reserved. 14–21 process Power Centres 7) Create Definitive systems: Leaders need to be at every level of the organization to champion the transformation process. Those who have been selected as transformation leaders will need the appropriate training to know how they should behave, what is expected of them, how to operate in the changing environment and how to use their own power to carry out the change sequence. © 2005 Prentice Hall Inc. All rights reserved. 14–22 POLITICS Organizational Politics are the activities managers engage in to increase their power and use it to achieve their goals. According to Stephen Robbins,”Politics in organization are those 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 and disadvantages within the organization” Politics arises when employees aspire to achieve something beyond their authority and control in a short span of time Lack of supervision and control at the workplace Too much of gossip at work lead to politics Arrogant superiors Jealous © 2005 Prenticecolleagues Hall Inc. All rights reserved. 14–23 POLITICS LEVEL OF POLITICAL ACTION: 1) Individual level: At the individual level, personal self interest are pursued by the individual. 2) Coalition level: People with common interests can become a political coalition In an organizational context, a coalition is an informal group bound together by the active pursuit of a single issue. Coalitions may or may not coincide with formal group membership. 3) Network Level: Networks are loose associations of individuals seeking social support for their general self interests. Politically, networks are people oriented, while coalitions are issue oriented. © 2005 Prentice Hall Inc. All rights reserved. 14–24 To make effective use of organizational politics, leader must be aware of specific political tactics & strategies There are three major tactics Gaining Power Building relationship with superiors & co-workers Avoiding political blunder © 2005 Prentice Hall Inc. All rights reserved. 14–25 1)Gaining Power All political tactics are aimed at gaining & maintaining power, even the power to avoid a difficult assignment. Five techniques to gaining power Develop power contacts Control vital information Control lines of communication Bring in outside expert Make a quick showing © 2005 Prentice Hall Inc. All rights reserved. 14–26 2)Building relationship Much of organization politics involve building relationship with network member who can be helpful now or later Strategies for building relationship Make & manage impression on others Ask satisfied customers to contact your boss Be courteous, pleasant & positive Flatter others sensibly Ask advice Send thank you notes to large number of people © 2005 Prentice Hall Inc. All rights reserved. 14–27 3)Avoiding political blunders A strategy for retaining power is to refrain from making power eroding blunders which can prevent one from attaining power Criticizing the boss in public forums By passing the manager Overt display of disloyalty Being or perceived as a poor team player Act in haste Declining an offer from top management Burning your bridges © 2005 Prentice Hall Inc. All rights reserved. 14–28 Types of Political Activity Attacking or blaming others Selectively distributing information(political tool- source of power) Controlling information channels - interactions Forming coalitions – puts pressure to change, get things done Associating with powerful line executives Managing impressions- create a desired image of yourself Reasons for organizational Politics – Unclear goals – Autocratic decisions – Discretionary( unrestricted) authority – Power – Biased performance appraisal – Saturation in promotion Managing Org Politics Jobs need to be clearly defined Management should discourage the dysfunctional behavior of people Actions should be taken to stop the dysfunctional behavior People should be rewarded objectively Strategies to minimize dysfunctional effects of politics – Open communication – Reduction of uncertainty( insecurity, hesitation) – Awareness Tactics used to gain political power 1)Bargaining or Trade off: It refers to negotiation. Each party to the conflict offers some benefits to the other so that there can be some stability in their relationships 2) Competition; The resources in the organization are limited. Various groups compete with each other to have a greater source of resources. For this, they try to influence the criteria used as the basis for resource distribution in the form of funds, support staff etc 3) Co potation: This occurs when a group gives some of its important positions to the members of other groups or include them in policy © 2005 Prentice Hall Inc. All rights reserved. 14–31 making committee Tactics used to gain political power 4) Coalition: It is a temporary alliance of a number of individuals or groups who combines their efforts and energy for their common goals. For eg: National Democratic Government was formed in india on the basis of coalition arrangement between a numbers of political parties. By forming a coalition, the members are able to increase their power or area of influence 5) Pressure: It is a hostile method of gaining power. For eg: a trade union might threaten a strike or slow down of management does not accept its demands. In a similar vein, the management might threaten a lock out in the factory if the trade union does not accept it terms © 2005 Prentice Hall Inc. All rights reserved. 14–32 Tactics used to gain political power 6) Control over Information: It is a very much a part of political behaviour to control the dissemination of critical information to others. Releasing a good or bad news when it is likely to have an fullest impact can promote someone’s self interest and may ruin the hopes of others 7)Control over communication channels: People who are in lower level positions but have some control over the channels of communications can acquire considerable political power. For eg: the secretary may have considerable power in deciding who sees the boss and who does not at a given time © 2005 Prentice Hall Inc. All rights reserved. 14–33 Employee Responses to Organizational Politics E X H I B I T 13–5 © 2005 Prentice Hall Inc. All rights reserved. 14–34