Notes on Power and Politics in Management

Power Definition

• Power: The capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes.
  • Key Concept: Power is fundamentally a function of dependence.

Leadership vs. Power

• Differences:
  • Goal Compatibility:
  • Leadership requires goal congruence.
  • Power needs only dependence.
  • Direction of Influence:
  • Leadership focuses on downward influence.
  • Power is concerned with influence in all directions.
  • Research Emphasis:
  • Leadership emphasizes leadership style.
  • Power is a broader topic focusing on tactics used by individuals and groups.

Formal Bases of Power

• Formal power is based on an individual's organizational position:
  • Coercive Power: Compliance driven by fear of negative results.
  • Reward Power: Compliance driven by desire for positive benefits.
  • Legitimate Power: Derived from formal authority to control and use organizational resources.

Personal Bases of Power

• Personal power arises from an individual’s unique characteristics:
  • Expert Power: Influence from expertise, special skills, or knowledge.
  • Referent Power: Based on identification with individuals possessing desirable traits or resources.
  • Charisma: A compelling charm or appeal to influence others.

Effectiveness of Power Bases

• Expert and Referent Power positively correlate with:
  • Performance and commitment.
• Reward and Legitimate Power do not show correlation with organizational outcomes.
• Coercive Power negatively impacts:
  • Employee satisfaction and commitment.

Dependence and Power

• B’s dependence on A increases A’s power over B.
• Factors creating dependence include:
  • Importance: The significance of the relationship or resource.
  • Scarcity: The limited availability of the resource.
  • Non-substitutability: Lack of alternatives to what A provides.

Power (Influence) Tactics

• Tactics help translate power bases into actions that influence others.
• Some tactics are more effective than others.

Nine Influence Tactics

1. Legitimacy
2. Rational persuasion
3. Inspirational appeals
4. Consultation
5. Exchange
6. Personal appeals
7. Ingratiation
8. Pressure
9. Coalitions

Political Skill

• Definition: The ability to influence others to enhance one’s own objectives.
  • Politically skilled individuals are effective users of influence tactics.
  • Their effectiveness increases when stakes are high.
  • They can exert influence inconspicuously.

Organizational Politics

• Definition: Activities influencing the distribution of advantages and disadvantages within an organization, not required by formal roles.
• Politics arise due to:
  • Conflicting interests.
  • Limited resources.
  • Ambiguity in decision-making.

Responses to Organizational Politics

• Negative impacts on employees may include:
  • Decreased job satisfaction.
  • Increased anxiety and stress.
  • Increased turnover.
  • Reduced performance.

Impression Management (IM)

• Definition: The process of controlling the impression others form of an individual.
  • In Interviews: Self-promotion and ingratiation are effective.
  • In Performance Evaluations: Ingratiation has a positive correlation, whereas self-promotion has a negative correlation.

The Ethics of Political Behavior

• Questions to consider:
  • What is the utility of engaging in politicking?
  • How does the utility balance against the potential harm to others?
  • Does the political activity adhere to standards of equity and justice?