CHAPTER FOUR

1. CHAPTER FOUR POWER AND LEADERSHIP

2. Learning Objectives • Define power and its key role in leadership. • Understand the cross-cultural differences in the definitions and use of power. • Identify the individual and organizational sources of power available to leaders and describe their consequences for followers and organizations. • Understand the role of power in the leadership and effectiveness of teams. • Identify the power sources available to top executives. • Explain the sources of power corruption and present ways to prevent its occurrence. • Trace the changes in use of power and explain their consequences.

3. Sources Of Individual Power • Legitimate power • Reward power • Coercive power • Expert power • Referent power

4. Coercive Power Reward Power Legitimate Power Expert Power Referent Power Potential Reactions To Individual Sources Of Power Resistance Compliance Commitment

5. Influence Tactics • Rational persuasion • Inspirational appeal • Consultation • Ingratiation • Personal appeal • Exchange • Coalition building • Legitimate tactics • Pressure

6. Organizational Sources Of Power • Coping with uncertainty • Centrality • Dependency • Substitutability

7. Power Sources For Top Executives • Legitimate power and position • Access to resources • Control of decision criteria • Centrality in organizational structure

8. Power with access to resources and no accountability Distance from employees • Consequences: • Poor decision • Coercion • Low opinion of • employees • Ethical violations • More distance Inflated view of self • Employee reactions: • Compliance and flattery • Submissive behaviors • and dependence Power Corruption Cycle

9. Solutions To Corruption Of Power • Involve leaders in day-to-day activities • Reduce followers’ dependency on leader • Use objective measures of performance • Involve outsiders in decision-making • Change the organizational culture

10. Leadership Factors In Empowerment • Create a positive emotional atmosphere • Set high performance standards • Encourage initiative and responsibility • Reward openly and personally • Practice equity and collaboration • Express appropriate confidence in subordinates

11. Organizational Factors In Empowerment • Decentralize structure • Select and train leaders appropriately • Select and train employees appropriately • Remove bureaucratic constraints • Reward empowering behaviors • Create fair and open organization policies

12. Leading Change:New Scientists at Roche • Old culture relied on competition • Change in environment requires new styles • New focus on cooperation inside and between teams • Use of very diverse cross-functional teams

13. Leadership In Action: Darla Moore • Task focused and highly competent • Makes full use of power • Uses her expertise, legitimate title, reward and punishment as her main sources of power • Does not rely on reference power • The way she uses power fits her industry

14. The Leadership Challenge • Understand the reasons for high salaries: • Market competition • High risk jobs • Attracting talent • Fairness is highly subjective • Organizations in crisis need to attract talent • High salary differentials affect morale