Leadership: Power and Negotiation

Leadership: Cheat Sheet

• Leadership: Ongoing process of exerting power & influence for group/organizational goal achievement.

• Power: Ability to influence others while resisting unwanted influence ($\text{Power}=\text{Ability to influence and resist unwanted influence}$).

• Influence: Actual exercise of authority to create behavioral/attitudinal change.

Distinguishing Leadership, Power, and Influence

• Leadership uses power and influence.

• Power = capacity; Influence = application; Leadership = process + purpose.

• Analogy: Power = “battery,” Influence = “electric current,” Leadership = “device.”

Sources of Power

• Organizational (Formal):

  • Legitimate: Formal authority.

  • Reward: Control over valued rewards.

  • Coercive: Ability to punish.

• Personal (Informal):

  • Expert: Valued knowledge/skills.

  • Referent: Admiration, respect, charisma.

Power Type Guidelines (Key Actions)

• Legitimate: Stay within rights, be polite.

• Reward: Offer achievable, attractive rewards; clarify criteria.

• Coercive: Warnings first; fit punishment to infraction; swift, unbiased.

• Expert: Provide data; share rationale; exhibit consistency/honesty.

• Referent: Honor commitments; unsolicited support; uphold followers.

Contingency Factors (Amplify or Limit Power)

• Substitutability (↓): Fewer alternatives to leader's resources = more power.

• Discretion (↑): Greater autonomy = more usable power.

• Centrality (↑): Crucial linkages to others = more impact.

• Visibility (↑): Awareness of power = more leverage.

Directions of Influence

• Downward: Managers → employees.

• Upward: Employees → managers.

• Lateral: Peers ↔ peers.

Influence Tactics (Effectiveness)

• Highly Effective:

  1. Rational persuasion: Logical arguments, data.

  2. Inspirational appeal: Link to values/ideals.

  3. Consultation: Ask for input (psychological ownership).

  4. Collaboration: Leader helps/provides resources.

• Moderately Effective:

  • Ingratiation: Flattery, friendship.

  • Personal appeal: Leverage loyalty/friendship.

  • Apprising: Explain direct personal benefits.

• Least Effective (Often Backfire):

  • Pressure: Threats, repeated demands.

  • Coalitions: Enlist others to coerce.

  • Exchange: Trade favors/resources.

Employee Responses to Influence

1. Internalization: Behavior & attitude change (highest effectiveness).

2. Compliance: Behavior change only (medium effectiveness).

3. Resistance: No change (sabotage, excuses, refusal).

Organizational Politics

• Definition: Behavior toward self-interest when resources are scarce or procedures ambiguous.

• Political Skill Dimensions:

  1. Networking ability: Building contacts.

  2. Social astuteness: Reads others accurately.

  3. Interpersonal influence: Flexible, adaptive style.

  4. Apparent sincerity: Perceived honesty.

• Negative Outcomes: ↓ Job satisfaction, performance, commitment; ↑ strain, turnover intentions.

Using Power to Resolve Conflict

• Conflict: Perceived goal opposition.

• Diagnostic Questions: Assertiveness? vs. Cooperativeness?

• Five Conflict Styles:

  1. Competing: High assertiveness, low cooperation (win-lose).

  2. Avoiding: Low both (lose-lose).

  3. Accommodating: Low assertiveness, high cooperation (lose-win).

  4. Collaborating: High both (win-win).

  5. Compromise: Moderate both (split the difference).

Negotiation Fundamentals

• Negotiation: Joint decision-making to resolve opposing interests.

• Strategies:

  • Distributive bargaining: Fixed pie, zero-sum.

  • Integrative bargaining: Expand the pie, mutually beneficial.

Four Stages of Negotiation

1. Preparation: Define goals, BATNA (Best Alternative To a Negotiated Agreement).

2. Exchanging information: Reveal positions, substantiate facts.

3. Bargaining: Make concessions, seek trade-offs.

4. Closing & commitment: Formalize agreement.

Cognitive & Emotional Biases in Negotiation

• Power Perception: Higher power → demand more, concede less (distributive); Equal power → integrative focus.

• Emotions: Positive → speed agreement (risk quick concessions); Negative → impair judgment, escalate conflict.

Alternative Dispute Resolution (ADR)

• Mediation: Neutral third party facilitates communication; parties craft solution (non-binding).

• Arbitration: Third party renders binding decision.

• Med-Arb Sequence: Mediation first, then arbitration if deadlocked.

Outcomes of Power & Influence

• Moderate positive correlation ($0.30 \le r \le 0.50$) with job performance & organizational commitment.

• Effective use leads to: ↑ Internalization of goals, ↑ citizenship behaviors, ↓ counterproductive behaviors, ↑ motivation & job satisfaction.

Quick Reference Equations & Terms

• BATNA: Value of best external option.

• Reservation Price: BATNA ± adjustments for risk, cost, value ($\text{Reservation Price} = \text{BATNA} \pm \text{Adjustments for risk, cost, value}$).

• Target Point: Ideal outcome.

• Settlement Range: Overlap between parties’ reservation prices.

Ethical & Practical Implications

• Avoid overreliance on coercive/political tactics (erodes trust).

• Leverage expert/referent power (aligns with ethics).

• Transparency & integrative negotiations foster sustainable relationships.

• Conflict style choice considers short-term wins, relational, and cultural context.