Chapter 13 Leadership: Power and Negotiation

Introduction

Conceptual Foundation: Leadership is defined as the use of power and influence to guide followers towards achieving goals.
Key Focus: The chapter examines how leaders acquire and implement power and influence within organizations.

Class Agenda

Explore the dynamics of power and influence in leadership:
  - Why are some leaders more powerful than others?
  - Acquiring power.
  - Using influence.
  - Power and influence in action.
  - Negotiations.
Application: Alternative Dispute Resolution.

An Integrative Model of Organizational Behavior

Components of Organizational Behavior:
  - Organizational Mechanisms:
    - Organizational Culture
    - Organizational Structure
  - Group Mechanisms:
    - Leadership: Styles & Behaviors
    - Leadership: Power & Negotiation
    - Teams: Processes & Communication
  - Individual Mechanisms:
    - Job Satisfaction
  - Individual Outcomes:
    - Stress
    - Motivation
    - Job Performance
    - Trust, Justice, & Ethics
    - Organizational Commitment
  - Individual Characteristics:
    - Learning & Decision Making Ability
    - Personality & Cultural Values

Understanding Leadership Power

Definition of Power: Power is the capacity to influence others' behavior while resisting unwanted influence.
Mechanism of Influence:
- Individuals may withhold influence even if they have the capacity (e.g., dissenting opinions, refusal to perform tasks).

Types and Sources of Power

Organizational Power

Legitimate Power: Power stemming from an official position within an organization.
Reward Power: Control over resources and benefits, enabling leader to provide rewards.
Coercive Power: The ability to punish or sanction behaviors.

Personal Power

Expert Power: Derived from an individual's skills and knowledge.
Referent Power: Based on others’ desire to associate with and identify with a person.

Figure 13-1: Types of Power

Organizational Power: Legitimate, Reward, Coercive
Personal Power: Expert, Referent

Guidelines for Using Power

Table 13-2: Type of Power Guidelines

Legitimate Power:
- Stay within your positional rights.
- Communicate requests politely and clearly.
Reward Power:
- Offer attractive rewards.
- Ensure promises are realistic and specific.
Coercive Power:
- Provide fair warnings about punishment.
- Ensure punishment is justified and prompt.
Expert Power:
- Use evidence to support proposals.
- Be consistent and honest in requests.
Referent Power:
- Uphold commitments and assist others voluntarily.

Contingency Factors in Power Dynamics

Key Elements of Power

Substitutability: Refers to whether alternatives exist for the resources a leader controls.
Discretion: The level of independence a leader possesses in making decisions.
Centrality: The extent to which a leader’s job impacts others’ tasks.
Visibility: Awareness of a leader's power and position in the organization.
Leaders can maximize influence when they have low substitutability, high discretion, high centrality, and high visibility.

Table 13-3: Contingencies of Power

Leader’s Ability to Influence:

Increases with:
  - Substitutability: No alternatives exist.
  - Centrality: Important role.
  - Discretion: Freedom to make decisions.
  - Visibility: Awareness of the leader’s capabilities.

Using Influence

Definition and Nature of Influence

Influence: Utilization of behaviors that lead to changes in attitudes or actions of others.
Direction of Influence: Typically downward (managers to employees) but can also occur laterally or upward.
Relativity of Influence: The effectiveness of influence depends on the perceived power dynamics between the influencer and the influenced.

Most Effective Influence Tactics

Rational Persuasion: Using logic and facts.
Inspirational Appeal: Invoking values and ideals for emotional connection.
Consultation: Involving the target in decision processes.
Collaboration: Working together to achieve outcomes.

Moderately Effective Influence Tactics

Ingratiation: Flattery or favors.
Personal Appeal: Request based on friendship.
Apprising: Explaining benefits for the target.

Least Effective Influence Tactics

Pressure: Coercive threats or demands.
Coalitions: Combining forces with others to exert influence.
Exchange Tactic: Offering something in return for compliance.

Responses to Influence Tactics

Outcomes of Influence Attempts

Internalization: Agreement with behavioral and attitudinal shifts.
Compliance: Change in behavior without attitudinal agreement.
Resistance: No change in attitude or behavior.
Combination of influence tactics tends to yield better results, and softer tactics are typically more successful.

Practical Applications of Power and Influence

Applications in Leadership

Leaders utilize power to:
- Navigate organizational politics.
- Resolve conflicts.

Organizational Politics

Definition: Activities aimed at furthering self-interests within an organization.
Political Skills:
  - Networking: Building relevant contacts.
  - Social Astuteness: Observing and interpreting behaviors.
  - Interpersonal Influence: Adaptable personal style.
  - Apparent Sincerity: Displaying honesty and authenticity.

Negative Effects of Organizational Politics

High perceptions of organizational politics can lead to:
  - Decreased job satisfaction.
  - Increased stress and strain.
  - Diminished job performance.
  - Increased turnover intentions.
  - Lowered organizational commitment.

Conflict Resolution

Understanding Conflict

Definition of Conflict: Occurs when individuals perceive opposing goals.
Influencing Factors:
- Assertiveness vs. cooperativeness of leaders in pursuing goals.

Conflict Resolution Styles

Five Styles:
  - Competing: High assertiveness, low cooperation (win-lose).
  - Avoiding: Low assertiveness, low cooperation (lose-lose).
  - Accommodating: Low assertiveness, high cooperation (lose-win).
  - Collaborating: High assertiveness, high cooperation (win-win).
  - Compromising: Moderate assertiveness and cooperation (neither side wins decisively).

Situational Use of Conflict Resolution Styles

Table 13-4: Guidelines for Styles

Competing: Quick decisions, clear right or wrong.
Avoiding: Low importance issues, emotional surges.
Collaborating: Legitimate concerns from both parties.
Accommodating: Acknowledging one's error or unselfishness.
Compromising: Balanced power, interim solutions.

Negotiations

Definition of Negotiation

Negotiation: A process where two or more interdependent individuals discuss preferences to reach an agreement.

Types of Negotiation Strategies

Distributive Bargaining: Win-lose scenarios with fixed resources.
Integrative Bargaining: Win-win solutions emphasizing mutual respect.

Stages of Negotiation

Preparation: Establish goals and alternatives (BATNA).
Exchanging Information: Position cases presented.
Bargaining: Negotiators likely to make concessions.
Closing and Commitment: Formalizing the agreement.

Negotiator Biases

Perceived relationships of power between negotiators can influence outcomes:
- More perceived power leads to demanding more and conceding less.
Negotiator emotions can also impact success:
- Positive emotions may prompt premature agreements.
- Negative emotions may cloud judgment.

Importance of Power and Influence

Power and influence correlate moderately with:
- Job performance.
- Organizational commitment.
Effective use of power can lead to:
  - Internalization of attitudes.
  - Increased citizenship behavior.
  - Decreased counterproductive behaviors.
  - Higher employee motivation and job satisfaction.

Application: Alternative Dispute Resolution (ADR)

Definition of ADR

ADR: Method for resolving disputes with a neutral third party.
Mediation: Facilitator aids in dispute resolution (no binding authority).
Arbitration: Third party issues a binding decision.
Traditional sequence recommends mediation first, followed by arbitration if necessary; however, reversing this order may yield better results.