Leadership Power and Influence Study Notes

SCHOOL OF ENTREPRENEURSHIP & BUSINESS INNOVATION

  • University: University of Guyana, Turkeyen Campus

  • Course Code: MNG 2101: Business Leadership

  • Lecturer: Mr. Bruce Lovell

  • Semester: 1

  • Email: jullian.lovell@uog.edu.gy

STUDENT NOTES – 7 LEADERSHIP POWER AND INFLUENCE

Lecture Outline

  • Four kinds of influential leaders.

  • Types of power and influencing tactics.

  • Increasing power through political activity.

  • Abuse of leadership power.

  • The dark side of leadership.

  • Spiritual values and leadership.

Lecture Objectives

  • Describe the four major styles of influential leadership.

  • Discuss similarities and differences among the seven types of power and the use of influencing tactics.

  • Describe the four leader frames of reference and political tactics for asserting leader influence.

  • Understand how leaders use power and politics ethically and responsibly.

  • Describe some common reasons why people fail in leadership positions.

  • Describe the principles of spiritual leadership and workplace spirituality.

FOUR KINDS OF INFLUENTIAL LEADERSHIP

  • Leadership is closely associated with power and influence, as a leader's power enables them to exercise influence.

  • Leadership power is often granted by an organization and derives from the leader's position, but leaders can also possess personal power that is independent of their job title.

  • Types of influential leadership include:

    • Transformational Leadership

    • Charismatic Leadership

    • Coalitional Leadership

    • Machiavellian-style Leadership

TRANSFORMATIONAL LEADERSHIP

  • Characteristics:

    • Transformational leaders drive significant change in followers and the organization.

    • They lead changes in vision, strategy, culture, and promote innovation.

  • Comparison with Transactional Leadership:

    • Transactional Leadership:

    • Involves an exchange process between leaders and followers.

    • Focuses on recognizing and rewarding followers' needs for fulfilling objectives.

    • Concentrates on management functions like planning and controlling.

    • Emphasizes stability over change.

    • Transformational Leadership:

    • Focuses on inspiration, vision, and shared values.

    • Encourages followers to transcend personal interests for the group's benefit.

    • Elevates concerns from basic physical needs to higher psychological needs, like self-esteem and self-actualization.

    • Aims to develop followers into leaders.

  • Learning Transformation Skills:

    • Skills for transformational leadership can be learned, while transactional skills are equally essential in a changing world.

CHARISMATIC LEADERSHIP

  • Characteristics of Charismatic Leaders:

    • They have a profound emotional impact and inspire relentless effort in followers, often leading them to pursue group goals over personal sacrifices.

    • Example: Richard Branson, founder of the Virgin Group, chooses ventures based on passion, transferring enthusiasm to others.

  • Attributes of Charismatic Leaders:

    • Articulate a compelling vision that connects with followers.

    • Set high expectations and foster confidence.

    • Communicate complex ideas in understandable ways.

    • Display nonverbal communication effectively to convey emotions.

    • Source of influence derives from personal attributes rather than formal authority.

  • Comparison with Non-charismatic Leaders:

    • Non-charismatic Leaders: Maintain status quo, weak articulation, and rely on position authority.

    • Charismatic Leaders: Encourage change, articulate an idealized vision, and engage through personal power.

COALITIONAL LEADERSHIP

  • Focuses on a coalition of supporters rather than a single leader.

  • Involves understanding patterns of interaction and influence within the organization.

  • Skills of Coalitional Leaders:

    • Develop relationships and networks.

    • Talk with a broad range of stakeholders to understand perspectives.

    • Build coalitions among advocates, partners, resisters, and observers.

    • Facilitate cooperation across departments to achieve goals.

  • Example: Elon Musk’s approach at Tesla stressing anti-silo cooperation within departments.

MACHIAVELLIAN-STYLE LEADERSHIP

  • Machiavelli's Influence:

    • Niccolo Machiavelli emphasized using power for stability and objectives, encapsulated in "the ends justify the means."

    • Contrast to contemporary views where Machiavellianism reflects unscrupulous self-serving behavior.

  • Characteristics:

    • Always vigilant against challenges to their power.

    • Prefer being feared over being liked, understanding that mercy can lead to disorder.

    • Utilization of deception and manipulation, if necessary.

    • Employ rewards and punishments to shape follower behavior.

  • Differences with Coalitional Leaders: Machiavellian leaders focus on individual power compared to coalitional leaders who focus on collaboration.

TYPES OF POWER AND INFLUENCING TACTICS

  • Definition of Power:

    • The potential ability of one person to influence others to attain desired outcomes.

    • Differentiation between position power (hard power) and personal power (soft power).

  • Position Power (Hard Power):

    • Derived from formal authority in the organizational hierarchy.

    • Essential for managers to achieve objectives.

  • Personal Power (Soft Power):

    • Based on relationships and behaviors exhibited by leaders.

    • Individuals can influence others without formal management roles.

Sources and Types of Power with Influencing Tactics

  • Sources of Power:

    • Position Power/Hard Power:

      • Types:

      • Legitimate

      • Reward

      • Coercive

    • Personal Power/Soft Power:

      • Types:

      • Referent

      • Expert

      • Information

      • Connection

  • Influencing Tactics:

    • Legitimisation

    • Consultation

    • Rational Persuasion

    • Exchange

    • Pressure

    • Coalitions

    • Personal Appeal

    • Inspirational Appeal

    • Ingratiation

LEGITIMATE POWER AND INFLUENCING TACTICS

  • Definition:

    • Authority granted by an organization allowing managers to direct employees.

  • Influencing Tactics:

    • Legitimisation Tactics: Make requests based on position authority.

    • Consultation Tactics: Include others in decision-making to enhance feedback.

    • Rational Persuasion Tactics: Use logical arguments and evidence to influence behavior.

    • Steps for Rational Persuasion:

    1. State the objective's necessity clearly.

    2. Communicate personal benefits to followers.

    3. Provide evidence supporting the objective's feasibility.

    4. preemptively resolve potential concerns.

REWARD POWER AND INFLUENCING TACTIC

  • Definition:

    • The authority to provide rewards that are valued by followers.

  • Influencing Tactic:

    • Exchange Tactic: Leaders foster reciprocal favor exchanges.

  • To enhance reward power, managers should:

  1. Control performance evaluations, salary, and promotion criteria.

  2. Clarify the rules for earning rewards.

COERCIVE POWER AND INFLUENCING TACTIC

  • Definition:

    • Authority to punish or withhold rewards to ensure compliance.

  • Influencing Tactic:

    • Pressure Tactic: Involves threats in enforcement of compliance.

  • To strengthen coercive power, leaders must:

  1. Have the authority to apply penalties.

  2. Exercise coercive power carefully to avoid resentment.

  3. Be persistent in follow-ups after requests.

EXPERT POWER AND INFLUENCING TACTIC

  • Definition:

    • Authority based on expertise and specialized knowledge.

  • Influencing Tactic:

    • Uses Rational Persuasion.

  • To increase expert power, leaders should:

  1. Pursue ongoing education and stay updated on industry trends.

  2. Leverage expertise through visibility and proof of competence.

REFERENT POWER AND INFLUENCING TACTICS

  • Definition:

    • Power derived from personal relationships and loyalty.

  • Influencing Tactics:

    • Personal Appeal Tactic: Encourage compliance through personal connection.

    • Inspirational Appeal Tactic: Generate positive emotional responses to initiatives.

    • Ingratiation Tactic: Build goodwill through praise and compliments before requests.

  • To enhance referent power, leaders should cultivate good relationships with peers and employees.

INFORMATION POWER AND INFLUENCING TACTICS

  • Definition:

    • Authority based on possessing relevant knowledge or data.

  • Influencing Tactics:

    • Employ Rational Persuasion or Inspirational Appeals to leverage information power.

  • To increase information power, maintain a flow of valuable insights within the organization.

CONNECTION POWER AND INFLUENCING TACTIC

  • Definition:

    • Power established through relationships with influential actors.

  • Influencing Tactic:

    • Employ Coalition Tactics for support.

  • To expand connection power, engage and network with key stakeholders.

FOLLOWER RESPONSES TO THE USE OF POWER

  • Follower reactions to power use can result in:

    • Compliance: Following directives without agreement, often resultant from positional power usage.

    • Resistance: Intentional avoidance of directives, often seen with coercive power being overexerted.

    • Commitment: A strong alignment with a leader's viewpoint fostered through personal power.

  • Effective leadership blends both position and personal power for optimal results.

INCREASING POWER THROUGH POLITICAL ACTIVITY

  • Organizational success often requires effective navigation of the political landscape within and outside the organization.

  • Politics encompasses the strategies employed to acquire and leverage power in response to uncertainties.

  • Leaders must build relationships as a means to achieve their goals, thereby recognizing organizational politics as critical to effective leadership.

POLITICAL TALENTS AND LEADERSHIP

  • Leaders engage in political activities to influence policies beneficial to their organizations.

  • Political behavior can positively or negatively impact organizations by allowing leaders to implement methods beyond formal policies.

LEADER FRAMES OF REFERENCE

  • A leader's worldview and frame of reference shape their interactions and decision-making approach.

  • Four Leader Frames of Reference:

    • Structural Frame: Emphasizes organization and efficiency, viewing the organization as a machine relying on authority.

    • Human Resource Frame: Focuses on interpersonal relations and empowerment, treating the organization as a clan or family.

    • Political Frame: Sees the organization as a source of tension and resource contestation, leveraging power through coalitions.

    • Symbolic Frame: Interpret the organization as a theater emphasizing culture and shared meaning to inspire commitment.

  • Leaders need to adapt and integrate perspectives for maximum effectiveness.

POLITICAL TACTICS FOR ASSERTING LEADERSHIP INFLUENCE

  • Successful leaders select the most effective approach when applying their power to influence others.

  • Six Principles for Asserting Influence:

    • Appeal to a Higher Vision

    • Rely on Rational Persuasion

    • Foster Likeability and Friendliness

    • Leverage Reciprocity

    • Build Alliances

    • Make Direct Appeals

ABUSE OF LEADERSHIP POWER

  • The misuse of power can lead to significant harm within an organization.

  • Approach to power utilization can be categorized as:

    • Personalized Leadership: Focus on self-serving motives.

    • Socialized Leadership: Aims to uplift organizational and community goals.

GUIDELINES FOR RESPONSIBLE USE OF POWER

  • Leaders should reflect on their motivations (self-interest vs. collective organizational goals) when making decisions.

  • Align actions with individual rights, fairness, and personal accountability in decision making to ensure the responsible use of power.

THE DARK SIDE OF LEADERSHIP

  • Poor leadership can stem from destructive practices, incompetence, and derailment.

  • Destructive Leadership: Effective in achieving results but often violates ethical principles.

  • Managerial Incompetence: Frequently arises from ill-prepared individuals in leadership roles.

  • Managerial Derailment: Common causes for failure in leadership roles include lack of adaptability, poor interpersonal skills, and situational misalignment.

SPIRITUAL VALUES AND LEADERSHIP

  • The infusion of spiritual values into leadership behaviors correlates with higher organizational success.

  • Spiritual Leadership: Encompasses values and behaviors that inspire meaningful work and enhanced commitment.

  • Spiritual Leadership Behaviors:

    • Creating an inspiring vision.

    • Establishing a culture of altruistic love and support.

    • Instilling hope and faith within the organization.

  • Workplace Spirituality: Provides a holistic environment that aligns individual values with organizational purpose, enhancing productivity, loyalty, and commitment.