MGMT Chapter 13 - Leadership Power and Influence

Leadership

The use of power and influence to direct the activities of followers toward goal achievement. Effects interpretation of events, organization of activities, commitments to key goals,  relationships, followers, and access to help from other units.

Power

The ability to influence the behavior of others and resist unwanted influence in return.

What are the five sources of interpersonal power?

1. Legitimate power

2. Reward power

3. Coercive power

4. Expert power

5.  Referent Power

Legitimate Power

you have a title and are viewed as some sort of “formal authority”

Reward Power

power exerted based on the control of resources or benefits

Coercive Power

someone has the ability to control punishments in an organization

Expert Power

An organizational power based on a person’s knowledge, skill, or ability, more likely to influence those who need their expertise

Referent Power

others have the desire to identify or be associated with a person. Typically derived from affection, admiration, or loyalty towards a specific individual. Ex: political leaders

Substitutablity

 the degree to which people have alternatives in accessing resources. Leaders control resources to which no one else has access to.

Discretion

The degree to which managers have the right to make decisions on their own.

Centrality

How important a person’s job is and how many people depend on that person to accomplish their tasks.

Visibility

How aware others are of a leader and the resources that leader can provide.

Most effective Influence tactics

• Rational Persuasion

• Consultation

• Inspirational Appeals

• Collaboration

Rational Persuasion

The use of logical arguments and hard facts to show someone that a request is worthwhile.

Consultation

An influence tactic whereby the target is allowed to participate in deciding how to carry out or implement a request.

Inspirational Appeals

An influence tactic designed to appeal to one’s values and ideals, thereby creating an emotional or attitudinal reaction.

Collaboration

Seen as both a conflict resolution style and an influence tactic whereby both parties work together to maximize outcomes.

Moderately Effective Influence Tactics

• Ingratiation

• Personal Appeals

• Apprising

• Upward appeals??

Ingratiation

The use of favors, compliments, or friendly behavior to make the target feel better about the influencer.

Personal Appeals

An influence tactic in which the requestor asks for something based on personal friendship or loyalty.

Apprising

An influence tactic in which the requestor clearly explains why performing the request will benefit the target personally.

Least Effective Influence Tactics

• Pressure

• Coalitions

• Exchange

Pressure

An influence tactic in which the requestor attempts to use coercive power through threats and demands.

Coalitions

An influence tactic in which the influencer enlists other people to help influence the target.

Exchange

An influence tactic in which the requestor offers a reward in return for performing a request. used to be moderate, now least effective, you just have a tradeoff, trade or promise something for the person to do what you request, but you gotta have something that they want and deliver for it to be effective

What are the 3 responses to influence tactics?

• Internalization

• Compliance

• Resistance

Internalization

target agrees and becomes committed to the request ( behavior and attitude change)

Compliance

target is willing to perform request, but its with indifference, most common response!! (behavior change only)

Resistance

When a target refuses to perform a request and puts forth an effort to avoid having to do it. (no behavior or attitude change)

Organizational Politics

 a way of getting things outside the formal structure of the organization, directed towards the goal of furthering own self interest

Political Skills

The ability to understand others and the use of that knowledge to influence them to further personal or organizational objectives.

What are the four political skills that individuals might  develop in organizations?

1. Networking ability

2. Social astuteness

3. Interpersonal influence

4. Apparent sincerity

Networking ability

an adeptness at identifying and developing diverse contracts

Social Astuteness

 “reading the room”, figuring out what people want and look for, pushing buttons to get what you want, tendency to observe others and accurately interpret their behavior

Interpersonal Influence

adjusting to social cues, having an unassuming and convincing personal style thats flexible enough to adapt to different situations

Apparent Sincerity

 you don’t actually have to be, but people need to perceive you’re sincere and honest, benevolent (looking out for best interest) because people are more likely to trust you

Personal Characteristics that impact the organizational politics of a company

• Need for power

• Machiavellanism

Machiavellanism

 like narcissism, you will do anything you possibly can to get more power, absolute focus on acquiring power

Organizational Characteristics that impact the organizational politics of a company

• Lack or participation in decision making

• Limited or changing resources

• Ambiguity in roles

• High performance pressure

• Unclear performance evaluations

Negative Employee Reactions to an overly political environment

• Decreased job satisfaction

• Decreased organizational commitment

• Decreased task performance

• Increased strain

What are the five styles of conflict resolution?

1. Competing

2. Avoiding

3. Accommodating

4. Compromise

5. Collaborating

Competing

(win-lose) win for you, loss for other party, most assertive, least cooperative, be certain you have the power when you use this, focused, solely on yourself

Avoiding

literally just avoiding (lose-lose), never really resolves the conflict, uncooperative and unassertive, ex: how I met your mother when they scream and yell and they they take pause and it immediately stops, trying to avoid the lose-lose end result, emotions are high, precipice of saying something you cant take back, can be effective if you stop and use one of the other 4 techniques

Accommodating

(lose-win), low assertiveness and high cooperation, paying more attention to the other party’s needs/wants, you don’t have the power to win or you don’t care if you lose, you probably have a relationship with the other person

Compromise

in the middle, no lose/win, could be the best solution unless one party was absolutely right, balanced power, ongoing relationship, both parties care, moderate assertiveness and cooperation, conflict resolved through give and take concessions

Collaborating

 best one! Win-win situation, top 4 influence tactics, high assertiveness and high cooperation, strong balance of power, issue is very important to both, ongoing relationship, bro we need to work together to come up with an outcome/result

Conflict

when two or more individuals perceive their goal is more valuable/in opposition to one another

How do you choose an influence tactic

You choose which of the 5 to use based on balance of power, importance of the issue to me, whether its an ongoing relationship, and they are combinations of assertiveness and cooperation

What are the two types of bargaining that might take place in a negotiation process?

Distributive and integrative

Negotiation

a process in which two or more interdependent individuals discuss and attempt to come to an agreement about their different preferences

Distributive bargaining

A negotiation strategy in which one person gains and the other person loses, general perception of labor relations between union and management, when someone gets more the other gets less, win-lose style with fixed pie, zero-sum conditions, ex: bigger pay raise shareholders get less dividends, competing, accommodating, compromise, a little avoiding from time to time

Integrative bargaining

collaborating to come to a better result for both sides, win-win style, create greater outcomes, utilizes mutual respect and problem solving, ex: salaries increase so your employees are happier and more committed to the organization

What are the stages of negotiation?

1. Preparation

2. Exchanging information

3. Bargaining

4. Closing and commitment

Preparation

each party determines own goals and alternatives, then  figure out position of the other side, arguably the most important stage BATNA: at what point will you walk away, what is your best alternative to a negotiated agreement

Exchanging information

The second stage of the negotiation process, during which each party makes the strongest case for its position, actually start negotiations, pass along inflated positions, each party makes  a case for its position, the avoid for a little bit to reassess then come back, non confrontational and gathering info

Bargaining

both parties most likely make concessions, each party gives and takes to arrive at an agreement, depends on how well the first 2 stages were completed

Closing and commitment

the agreement is formalized, make announcements, etc

Impasse

Maybe you hit an impasse before you get to step 4, due to perceived power biases, positive nad negative emotions. Ex: microsoft tried to acquire yahoo, yahoo thought they had more power and value than they did, so microsoft said nevermind, then 8 yrs later it was acquired by verizon for 10% of the OG cost offered - he misinterpreted power balance

What biases might negotiators have that could inhibit  the sides from reaching a positive agreement?

• Perceived power relationship

• Negotiator emotions

Perceived power relationship

when you perceive you have more power than you do, your view is skewedm you’re more aggressive, concede less, and probably take a distributive approach

Negotiator emotions

positive emotions lead to more integrative bargaining and overconfidence in decisions, whereas negative emotions lead to more distributive bargaining and skewed judgement accuracy

Alternative dispute resolution

A process by which two parties resolve conflicts through the use of a specially trained, neutral third party.

What are the two methods of alternative dispute resolution?

1. Mediation

2. Arbitration

Mediation

try to get two parties back to negotiations, minor points to agree then move on to bigger things, quick solution out, mediator does not have power to make them agree to anything

Arbitration

A process by which a third party determines a binding settlement to a dispute between two parties.

Traditional arbitration

they mold positions into a new agreement and they can impose that on the two parties

Final Arbitration

there is a winner and there is a loser, arbitrator assesses the two positions and chooses one or the other

In which method of alternative dispute resolution would you put up a more extreme stane?

You would put up a more extreme position in a tradition arbitration in a traditional format because the arbitrator will work with both positions, in final offer they will choose the more reasonable position!

Upward appeals

refer to somebody higher up in the org who has the power, example: “mom told you to take out the garbage”, make sure you have the consent of the person who has the power to make you do things, long term consequences