Chap 12 - Power, Politics, and Ethics

Power

The capacity to influence others who are in a state of dependence

The target of power is dependent on the power holder, it doesn’t imply that a poor relationship exists between the two

Ex: Friends have power to influence your behaviour because you are dependent on them for friendly reactions) 

Power is not always perceived or exercised

Ex: Professors hold a great degree of potential power over students, but only use a small amount of this power

Power can flow in any direction in an organization

Ex: The junior auditor who obtains compromising info about the CEO may be in a powerful position if the CEO wishes to maintain a good rep in the organization 

Power asymmetry doesn’t require an organizational hierarchy, it can even be driven by an algorithm

Ex: Vendors on online platforms like eBay, Uber, and Airbnb report considerable anxiety concerning negative customer reviews, as they can lead to serious sanctions form the platform operator

Power is a broad concept that applies to both individuals and groups

Ex: An individual marketing manager might exert considerable influence over direction reports and the marketing department a XYZ Foods might be the most powerful department in a company (getting away more often than other departments). 

Legitimate power

Power derived from a person’s position or job in an organzaition

Reward power

Power derived from the ability to provide positive outcomes and prevent negative outcomes

Coercive power

Power derived from the use of punishment and threat

Referent power

Power derived form being well liked by others

Expert power

Power derived from having special info or expertise that is valued by an organization

Bases of leader power include

• Coercive

• Reward

• Legitimate

• Expert

• Referent

How do people obtain power in organizations? 

• Doing the right things

  • Extraordinary activities

  • Visible activities

  • Relevant activities 

• Cultivating the right people

  • Outsiders, subordinates, peers, superiors

Empowerment

Giving people the authority, opportunity, and motivation to take initiative and solve organization problems 

Influence tactics, putting power to work

• Assertiveness

• Ingratiation

• Self promotion

• Rationality

• Exchange

• Upward appeal

• Coalition formation

Most effective managers have the following attributes:

• High n Pow

• Use their power to achieve organizational goals

• Adopt a participative or “coaching” leadership style

• Are relatively unconcerned with how much others like them

Subunit power

The degree of power held by various organizational subunits, such as departments 

Strategic contingencies

Critical factors affecting organizational effectiveness that are controlled by a key subunit

How do subunits obtain power?

• Subunit is magnified when resources become scarce

• Uncertainty promotes confusion which permits changes in power priorities as the organizational environment changes

• Subunits whose activities are more central to the mission of the organization acquire more power

• Will have relatively little power if they can be outsourced

Organizational politics 

The pursuit of self interest in an organization, regardless of whether this self interest corresponds to organizational goals 

The dimensions of organizational politics

Sanctioned means/sanctioned ends

Power is routinely used to pursue agreed on goals. For example: a manager agrees to recommend a raise for an employee if they increase et sales by 30 percent int he next 6 months.

Sanctioned means/not sanctioned ends

Acceptable means of influence are abused to purse goals that the organization does not approve of. For example: a head nurse agrees to assign a subordinate nurse to a more favourable job if that nurse agrees to not report the superior for stealing medical supplies.

No sanctioned means/sanctioned ends

The ends are useful for the organizations but are pursued through questionable means. For example: Qatar officials were hosting the World Cup but allegedly used bribery.

No sanctioned means/not sanctioned ends

Most flagrant abuse of power, since disapproved tactics are used to pursue disapproved outcomes.

Political skill

The ability to understand others at work and to use that knowledge to influence others to act in ways that enhance one’s personal or organizational objectives

Social astuteness

Good politicians are careful observers who are tuned in to others’ needs and motives. They can read people and have high EI.

Interpersonal influence

Politically skilled individuals are convincing and persuasive.

Apparent sincerity 

Influence attempts will be seen as manipulative unless they are accompanied by sincerity 

Networking

Establishing good relations with key organizational members and outsiders to accomplish one’s goals

Several aspects to networking

• Maintaining contacts

• Socializing

• Engaging in professional activities

• Participating in community activities

• Increasing internal visibility

Machiavellianism

A set of cynical beliefs about human nature, morality, and the permissibility of using various tactics to achieve one’s needs 

Narcissism

A trait describing people who are self centred, self imporatnt, impulsive, and entitled

Knowledge hiding

Intentionally concealing or withholding info that has been requested by or is relevant to another organizational member

Defensive behaviours include

• Stalling

• Over conforming

• Buck passing

• Buffing

• Scapegoating

Ethics

Systematic thinking about the moral consequences of decisions

Stakeholders

People inside or outside of an organization who have the potential to be affected by organizational decisions

Bounded ethicality

The psychological process by which people come to engage in behaviour that violates their own ethical standards

Causes of unethical behaviour

• Personality

• Gain

• Extreme performance pressure

• Role conflict

• Strange organizational identification

• Competition

Whistle blowing

Disclosure of illegitimate practices by a current or former organizational member to some person or organization that may be able to take action to correct these practices