MNG 2101: Business Leadership - Leadership Power and Influence Notes

SCHOOL OF ENTREPRENEURSHIP & BUSINESS INNOVATION

UNIVERSITY OF GUYANA - MNG 2101: BUSINESS LEADERSHIP

Lecturer: Mr. Bruce Lovell
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

On completion of this lecture, you should be able to:

  • 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

  1. The concept of leadership is intrinsically linked to power and influence.

    • Leadership Power: Granted by an organization based on a leader’s position.

    • Personal Power: Comes from the leader’s personal style and personal relationships.

    • Four Types of Influential Leadership:

      • Transformational Leadership

      • Charismatic Leadership

      • Coalitional Leadership

      • Machiavellian-Style Leadership

TRANSFORMATIONAL LEADERSHIP

  1. Transformational leadership is defined by its ability to induce significant change within both followers and the organization.

    • Key Features:

      • Can lead changes in vision, strategy, and culture.

      • Promotes innovation in products and technologies.

    • Comparison with Transactional Leadership:

      • Transactional Leadership:

      • Transaction process between leaders and followers.

      • Focuses on recognition and exchange for performance.

      • Maintains stability and strictly follows rules.

      • Transformational Leadership:

      • Focus on vision and shared values.

      • Motivates followers beyond self-interest to achieve group benefits.

      • Elevates psychological needs to self-esteem and self-actualization.

      • Develops followers into leaders.

  2. Organizations require transformational leadership to succeed amid continuous change, and these skills can be learned, enhancing both leadership styles.

CHARISMATIC LEADERSHIP

  1. Charismatic leaders exert emotional influence, inspiring followers to exceed normal limits.

    • They can instill awe and submission; their passion drives engagement.

    • Example: Richard Branson of Virgin Group motivates through his enthusiasm for the businesses he pursues.

  2. Characteristics of Charismatic Leaders:

    • Articulate an idealized vision.

    • Set high expectations and confidence in achieving vision.

    • Communicate complex ideas clearly and compellingly.

    • Convey moral convictions aligning with followers’ needs.

    • Utilize nonverbal communication effectively.

    • Source of influence is personal characteristics, not formal authority.

Distinguishing Characteristics of Charismatic Leaders vs. Non-Charismatic Leaders

Charismatic Leaders

Non-Charismatic Leaders

Create change

Maintain status quo

Articulate inspiring vision

Poor articulation of goals

Use unconventional means

Use available means

Influence through personal power

Primarily through positional authority

COALITIONAL LEADERSHIP

  1. Focuses on collaboration among groups to achieve goals rather than relying solely on the individual leader.

  2. Coalition leaders recognize and adapt to organizational interactions and develop supportive relationships.

  3. Building coalitions is crucial to avoid conflicts that can derail leadership decisions.

    • Common Strategies:

      • Engage broadly within the organization to understand challenges.

      • Solicit input from key stakeholders.

      • Map stakeholder support for proposed changes (classifying into advocates, partners, resisters, and observers).

      • Promote cooperation across departments.

    • Example: Elon Musk emphasizes interdepartmental collaboration at Tesla to avoid silos.

MACHIAVELLIAN-STYLE LEADERSHIP

  1. Niccolo Machiavelli’s philosophy suggests that the ends justify the means in leadership, advocating for power as a necessary tool for organizational stability.

  2. Characteristics of Machiavellian leaders:

    • Alert to risks and shifting loyalties among followers, often manipulating to maintain power.

    • Willing to use fear and manipulation over preferred virtues.

    • Utilize deception and rewards/punishment to shape behavior.

  3. Machiavellian leaders prioritize personal power accumulation over organizational welfare, differing from coalitional leaders who emphasize collective influences.

TYPES OF POWER AND INFLUENCING TACTICS

  1. Power: The ability to influence others to achieve desired outcomes.

  2. Two Sources of Power:

    • Position Power (Hard Power): Derived from structured authority in an organization (e.g. managers have more power to influence than non-managers).

    • Personal Power (Soft Power): Derived from relationships and leader behaviors; informal leaders can possess significant influence.

  3. Seven Types of Power and corresponding Nine Influencing Tactics:

    • Sources and Types of Power with Influencing Tactics:
      | Source | Type | Influencing Tactics |
      |------------------|--------------------------------------|-----------------------------------|
      | Position Power | Legitimate | Legitimisation |
      | | Reward | Exchange |
      | | Coercive | Pressure |
      | Personal Power | Connection | Coalition |
      | | Information | Rational persuasion, Inspirational |
      | | Expert | Rational persuasion |
      | | Referent | Personal appeal, Inspirational appeal, Ingratiation |

LEGITIMATE POWER AND INFLUENCING TACTICS

  1. Legitimate Power: Authority granted by the organization for role fulfillment in job functions.

    • Influencing Tactics:

      • Legitimisation Tactics: Leader requests based on authority.

      • Consultation Tactics: Involving others in decision-making.

      • Rational Persuasion Tactics: Using evidence and logical arguments to influence others.

      1. Explain the objective's necessity.

      2. Articulate personal benefits for achieving the objective.

      3. Provide evidence supporting the objective's achievability.

      4. Address potential issues directly.

REWARD POWER AND INFLUENCING TACTIC

  1. Reward Power: Authority to offer rewards of value.

    • Influencing Tactic: Exchange Tactic: Leaders create an exchange relationship where compliance is rewarded.

      • To enhance reward power:

      1. Control performance evaluation processes.

      2. Clearly communicate criteria for rewards.

COERCIVE POWER AND INFLUENCING TACTIC

  1. Coercive Power: Authority to enforce compliance through punishment.

    • Influencing Tactic: Pressure Tactic: Use of threats/persistent reminders to ensure compliance.

      • Cautions: Use judiciously to prevent resentment.

      • To enhance coercive power:

      1. Acquire authority to enact punishments.

      2. Avoid rash threats and manipulation.

EXPERT POWER AND INFLUENCING TACTIC

  1. Expert Power: Authority derived from knowledge and expertise.

    • Influencing Tactic: Leverage Rational Persuasion as people trust experts.

      • To enhance expert power:

      1. Engage in lifelong learning and professional development.

      2. Promote expertise consistently.

REFERENT POWER AND INFLUENCING TACTICS

  1. Referent Power: Authority based on personal relationships and loyalty.

    • Influencing Tactics:

      • Personal Appeal Tactic: Requests made out of friendship.

      • Inspirational Appeal Tactic: Evokes enthusiasm.

      • Ingratiation Tactic: Compliments and praises given before requests, ensuring mood elevation.

      • To improve referent power: Build strong interpersonal relationships.

INFORMATION POWER AND INFLUENCING TACTICS

  1. Information Power: Based on possession and control of desired information.

    • Influencing Tactics: Use rational persuasion and inspirational appeals to leverage information power.

CONNECTION POWER AND INFLUENCING TACTIC

  1. Connection Power: Authority stemming from relationships with influential individuals.

    • Influencing Tactic: Employ coalition tactics to seek support from individuals.

      • To enhance connection power:

      1. Build networks with influential managers.

      2. Engage in strategic associations.

FOLLOWER RESPONSES TO THE USE OF POWER

  1. Using power yields three outcomes:

    • Compliance: Followers adhere to directions without necessarily agreeing.

    • Resistance: Active avoidance of compliance, particularly with hard power from excessive coercion.

    • Commitment: Enthusiastically adopting the leader's viewpoint, typical when personal power is exercised.

INCREASING POWER THROUGH POLITICAL ACTIVITY

  1. Power acquisition and utilization involves political processes, where politics refers to power dynamics in organizations.

  2. Political Skill: Developing relationships to meet leaders' objectives rather than exploiting others.

  3. Leaders employ political activities both internally and externally to resolve conflicts through informal relationships.

LEADER FRAMES OF REFERENCE

  1. Frame of Reference: A leader's perspective influencing decision-making and interactions with followers.

    • Four Frames of Reference:

      • Structural

      • Human Resource

      • Political

      • Symbolic

  2. Structural Frame: Emphasizes organization as a machine, prioritizing planning and efficiency.

  3. Human Resource Frame: Focuses on interpersonal relationships, empowerment, and meeting followers’ needs.

  4. Political Frame: Views organizations as arenas for power conflict and resource allocation.

  5. Symbolic Frame: Looks at organizations as systems of shared meanings, focusing on culture and values.

  6. Effective leaders utilize multiple frames for heightened situational responsiveness.

POLITICAL TACTICS FOR ASSERTING LEADER INFLUENCE

  1. Application of power must strategically influence decisions and drive organizational objectives.

  2. Influencing Tactics Principles:

    • Appeal to a higher vision

    • Rational persuasion

    • Liking and friendliness

    • Reciprocity

    • Developing allies

    • Direct appeal

  3. Leaders perform optimally by recognizing when to apply political tactics to enhance influence.

ABUSE OF LEADERSHIP POWER

  1. Power misuse can lead to organizational harm; thus leaders should exercise power responsibly.

    • Personalized Leadership vs. Socialized Leadership:

      • Personalized: Self-serving, lacks self-control.

      • Socialized: Altruistic focus on serving higher goals.

GUIDELINES FOR RESPONSIBLE USE OF POWER

  1. Criteria for ethical leadership actions:

    • Motivation by collective goals vs. self-interest.

    • Respect for the rights of individuals affected.

    • Adherence to fairness standards.

    • Desire for universal behavioral standards.

THE DARK SIDE OF LEADERSHIP

  1. Research highlights prevalent issues:

    • Destructive Leadership: Morally unethical decision-making undermining organizational success.

    • Managerial Incompetence: Inability to effectively lead, often assessed via the Dr. Gordy test.

    • Managerial Derailment: Associated with unpreparedness for promotion and poor interpersonal relationships.

SPIRITUAL VALUES AND LEADERSHIP

  1. Incorporating spiritual values within leadership practices enhances organizational success.

  2. Spiritual Leadership: Motivates others to fulfill spiritual well-being through a sense of calling and inclusion.

  3. Addresses higher-order needs promoting intrinsic motivation, improving performance and commitment.

  4. Spiritual leaders create compelling visions and foster cultures based on altruistic values.

  5. Workplace Spirituality: Integrating spiritual values with professional life enhances employee commitment and reduces turnover.

  6. Fostering a positive climate minimizes destructive emotions, enhancing organizational well-being.

END OF NOTES