Assignment on Strategic Management Chapter 1

1. Power and Influence in the Workplace

2. The Power of Managing Your Boss Managing your boss is the process of improving the relationship with your manager for the benefit of both of you and the organization. It includes developing bases of power that enable you to influence the manager and thereby achieve organizational objectives. Most executives say it is a key factor in everyone’s career success.

3. The Meaning of Power Power is the capacity of a person, team, or organization to influence others. • Potential, not actual use • People have power they don’t use -- may not know they possess • A perception, not necessarily reality

4. Power and Dependence Person A Person B’s countervailing power over Person A Person A is perceived as controlling resources that help or hinder Person B’s goal achievement. Person B Person B’sGoal Person A’s power over Person B

5. Sources of Power Power over others Contingencies of Power Model of Power in Organizations Legitimate Reward Coercive Expert Referent

6. Deference to Authority:Le Jeu de la Mort French reality television recently revealed how far people are willing to submit to authority. Only 16 of the 80 contestants refused to administer the strongest shocks (460 volts – enough to kill a person) when another contestant gave the wrong answers. Fortunately, the other contestant was an actor whose screams were fake; he did not actually receive the shocks.

7. Legitimate Power • Agreement that people in certain roles can request certain behaviors of others • Based on job descriptions and mutual agreement • Legitimate power range (zone of indifference) varies across national and org cultures. • Norm of reciprocity – legitimate power as a felt obligation to help others who helped you in the past

8. Legitimate Power: Right to Control Information Flow Wheel formation All-channels formation This person has high information control These people individually have low information control

9. Reward and Coercive Power • Reward Power • Ability to control the allocation of rewards valued by others and to remove negative sanctions • Coercive Power • Ability to apply punishment • Peer pressure is a form of coercive power • Reward and coercive power exist upward as well as downward in hierarchies.

10. Expert Power • The capacity to influence others by possessing knowledge or skills that they value • Coping with uncertainty • Organizations operate better in predictable environments • People gain power by using their expertise to: • Prevent environmental changes • Forecast environmental changes • Absorb environmental changes

11. Referent Power • Occurs when others identify with, like, or otherwise respect the person • Associated with charismatic leadership

12. Sources of Power Power over others Contingencies of Power Substitutability Centrality Discretion Visibility Contingencies of Power

13. The Power of Nonsubstitutability Your personal brand improves career success when you offer something that is valued and nonsubstitutable. “Be unique about something. Be a specialist in something. Be known for something,” advises Deloitte Touche Tohmatsu CEO Barry Salzberg (center).

14. Increasing Nonsubstitutability • Few/no alternatives to the resource • Increase nonsubstitutability by controlling the resource • exclusive right to perform medical procedures • control over skilled labor • exclusive knowledge to repair equipment • Differentiate resource from others (i.e. be unique)

15. Centrality • Degree and nature of interdependence between the powerholder and others (reflects the person’s importance to others) • Centrality is a function of: • How many others are affected by you • How quickly others are affected by you

16. Discretion and Visibility • Discretion • The freedom to exercise judgment • Rules limit discretion, limit power • Also a perception – acting as if you have discretion • Visibility • Make others aware of your presence –more face time, locate office near busy routes • Symbols communicate your power source(s) • Educational diplomas • Clothing etc (stethoscope around neck)

17. Power and Influence ThroughSocial Networks • Social networks – people connected to each other through forms of interdependence • Generate power through social capital -- goodwill and resulting resources shared among members in a social network • Three power resources through social networks • Knowledge sharing • Visibility • Referent power

18. Social Network Ties • Strong ties: • Close-knit relationships (frequent interaction,high volume sharing, multiple roles) • Offer resources more quickly/plentifully,but less unique • Weak ties • Acquaintances • Offer unique resources not held by us orpeople in other networks • Many ties • Resources increase with number of ties • Limits on number of weak/strong ties one can create

19. Social Network Centrality • Person’s importance in a network • Three factors in centrality: • Betweenness – extent you are located between others in the network (i.e. information gatekeeper) • Degree centrality -- Number of people connected to you • Closeness – stronger relationships (faster/plentiful resources) • Example: “A” has highest network centrality due to all three factors; “B” has lowest centrality A B

20. Influencing Others • Influence -- any behavior that attempts to alter someone’s attitudes or behavior • Applies one or more power bases • Process through which people achieve organizational objectives • Operates up, down, and across the organizational hierarchy

21. more Types of Influence Silent Authority • Following requests without overt influence • Based on legitimate power, role modeling • Common in high power distance cultures Assertiveness • Actively applying legitimate and coercive power (“vocal authority”) • Reminding, confronting, checking, threatening

22. more Types of Influence (con’t) Information Control • Manipulating others’ access to information • Withholding, filtering, re-arranging information Coalition Formation • Group forms to gain more power than individuals alone • Pools resources/power • Legitimizes the issue • Power through social identity

23. more Types of Influence (con’t) Upward Appeal • Appealing to higher authority • Includes appealing to firm’s goals • Alliance or perceived alliance with higher status person Persuasion • Logic, facts, emotional appeals • Depends on persuader, message content, message medium, audience

24. Types of Influence (con’t) Ingratiation/ Impress. Mgt. • Increaseliking by, or perceived similarity to the target person Exchange • Promising or reminding of past benefits in exchange for compliance • Includes negotiation and networking

25. Consequences of Influence Tactics people oppose the behavior desired by the influencer motivated by external sources (rewards) to implement request identify with and highly motivated to implement request Resistance Compliance Commitment

26. Hard Influence Tactics Soft Influence Tactics Silent authority Upward appeal Coalition formation Information control Assertiveness Persuasion Ingratiation &impression mgt Exchange Consequences of Influence Tactics Resistance Compliance Commitment

27. Contingencies of Influence Tactics • “Soft” tactics generally more acceptable than “hard” tactics • Appropriate influence tactic depends on: • Influencer’s power base • Organizational position • Cultural values and expectations

28. Organizational Politics Behaviors that others perceive as self-serving tactics for personal gain at the expense of other people and possibly the organization.

29. Conditions that Encourage Organizational Politics Scarce resources – to safeguard own resources Ambiguous resource allocation decisions Organizational change – due to uncertainty, ambiguity

30. Minimizing Political Behavior • Introduce clear rules for scarce resources • Effective organizational change practices • Suppress norms that support or tolerate self-serving behavior • Leaders role model organizational citizenship • Give employees more control over their work • Keep employees informed

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