Introduction to Leadership Concepts Homework Questions

CHAPTER OUTLINE

Power

Sources of Power

Types of Power and Influencing Tactics, and Ways to Increase Your Power

Organizational Politics

The Nature of Organizational Politics

Political Behavior

Guidelines for Developing Political Skills

Networking

Perform a Self-Assessment and Set Goals

Create Your One-Minute Self-Sell

Develop Your Network

Conduct Networking Interviews

Maintain Your Network

Social Networking at Work

Negotiation

Negotiating

The Negotiation Process

Ethics and Influencing

Influencing: Power, Politics, N etworl<ing, and N egotiation

Learning Outcomes A~er studying this chapter, you should be able to:

0 Explain the differences between position power and personal power. p. 145

e Discuss t he diffe rences among legitimate, reward, coercive , and referent power. p. 146

e Discuss how power and politics are related. p. I54 0 Describe how money and politics have a similar use.

p. 154

e List and explain the steps in the networking process. p. 160

0 List the steps in the negotiation process. p. 166 f) Explain the relationships among negotiation and conflict,

influencing tactics, power, and politics. p. 166

CHAPTERS INFLUENC ING: POWER, POLITICS, NETWORKING , AND NEGOTIATION 14S

OPENING CASE Application I Serial entrepreneur Mark Cuban has ventured into many OPENING CASE QUESTIONS: diverse businesses. Cuban 's first step into the business I • What sources and types of power does Mark world occurred at age 12, when he sold garbage bags

Cuban have, and why has he had problems with door to door: Soon after: he was selling stamps, coins,

power? and baseball cards, which paid for his business degree at

2. Why are organizational politics important toIndiana University (IU).Whlie attending IU. Cuban bought a Mark Cuban's enterprises?Bloomington bar and named it Motley's, raising the money

by selling shares to his friends. Cuban and Martin Woodati 3. How has Mark Cuban used networking? founded MicroSolutions, and they sold the company for 4. What types of negotiations does Mark Cuban $6 million. With Woodall, he also invested in the Landma1-k engage in? Theatres, Magnolia Pictures, AXS TV (formerly HDNet),

5. Is Mark Cuban ethical in influencing others? and audio and video porta! Broadcast.com: he was also a day trader. Cuban also took acting lessons and was on the Can you answer any of these questions? You' ll find TV show Shark Tank. But Cuban is most famous, however. answers to these questions and learn more about Mark for his 90 percent ownersh:p and controversial, zeaious Cuban·s businesses and leadership style throughout the management of the NBA team Dal!as Mavencks. Cuban is chapter. listed on the Forbes 400 Richest People in America, with a To iearn more about Mark Cu ban , do an Internet net worth of $2.5 billion. 1 search.

B esides excellent work, what does it take to get ahead in an organization? To climb the corporate ladder, you will have to influence people2- to gain power, play organizational politics, network, and negotiate to get what you want. These related concepts are the topics of this chapter. Recall from our definition of leadershir

(Chapter 1) that leadership is the "influencing" process ofleaders and followers to achieve organizational objectives through change. Leaders and followers influence each other_ This chapter focuses on leadership behavior by explaining how leaders influence others at the individual level of analysis. Let's begin with power because if you want to make a difference, you need to have power. 3

Power Power is the fundamental concept in social science,4 and power skills can be taught and developed. 5 Ifwe want to understand why organizations do the things they do, we must consider the power of managers and how power differences affect team and organiza- tional performance. 6 Power is about achieving influence over others. However, power is the leader's potential influence over followers . Because power is the potential to influ- ence, you do not actually have to use power to influence others. Often, it is the perception of power, rather than the actual use of power, that influences others. In this section, we discuss sources of power, types of power, influencing tactics, and ways to increase your power.

Learning I Explain the differences between position power and personal power.

Outcome -

144

146 PART I INDIVIDUALS AS LEADERS

Sources of Power There are different sources of power,7 and here we discuss position power and personal

power.

Position Power Position power is derived from top management, and it is delegated down the chain of command. Position status can give you power. 8 Thus, a person who is in a management position has more potential power to influence than an employee who is not a manager.

9

Some people view power as the ability to make people do what they want them to do or the ability to do something to people or for people. These definitions may be true, but they tend to give power a manipulative, negative connotation, as does the old saying by Lord Acton, "Power corrupts. Absolute power corrupts absolutely." Power can also make people more self-focused. 10

Within an organization, power should be viewed in a positive sense. Without power, managers could not achieve organizational objectives, so leadership and power go hand in hand. Managers rely on position power to get the job done.11 Dr. Martin Luther King Jr. said, "Power properly understood is nothing but the ability to achieve purpose. It is the strength to bring about change."

Personal Power Personal power is derived from the followers based on the leader's behavior. Charismatic leaders have personal power. Again, followers do have some pow~r over leaders. So you don't have to be a manager to have power.

A manager can have only position power or both position and personal power, but a nonmanager can have only personal power. Today's successful leaders share power (empowerment) by pushing power and decision making down the organization. 12 As former NBA coach Phil Jackson puts it, you need to empower your players.13

Learning , 2 Discuss the differences among legitimate, reward, coercive, and referent power.

Outcome

Types of Power and Influencing Tactics, and Ways to Increase Your Power Seven types of power are illustrated, along with their source and influencing tactics, in Exhibit 5.1. In the late 1950s, French and Raven distinguished five types of power (reward, coercive, legitimate, expert, and referent). 14 Connection (politics) and information power have been added to update the important types of power. We will discuss these seven types of power and explore ways to increase each type with influencing tactics, or actions. 15 You can acquire power, without taking it away from others. Generally, power is given to those who get results and have good human relations skills that are useful to

those in power. 16

Legitimate Power Legitimate power is based on the user's position power, given by the organization. It is also called the legitimization influencing tactic. Managers assign work, coaches decide who plays, and teachers award grades. These three positions have formal authority from the organization. Without this legitimate authority, they could not influence followers in the same way. 17 Employees tend to have a felt obligation and feel that they ought to do what their manager says within the scope of the job.18

CHAPTER 5 INFLUENCING: POWER, POLITICS, NETWORKING, AND NEGOTIATION 147

Appropriate Use of Legitimate Power. Employees agree to comply with management authority in return for the benefits of membership. The use of legitimate power is appropriate when asking people to do something that is within the scope of their job. Most day-to-day manager-employee interactions are based on legitimate power.

When using legitimate power, it is also helpful to use the consultation influencing tactic. With consultation, you seek others' input about achieving an objective and are open to developing a plan together to achieve the objective. This process is also known as participative management and empowering employees. We will talk more about participa- tive management throughout the book.

Legitimate Use of Rational Persuasion. When we as managers are meeting objectives through our employees or dealing with higher-level managers and people over whom we have no authority, it is often helpful to use the rational persuasion influencing tactic. Rational persuasion includes logical arguments with factual evidence to persuade others to implement your recommended action.

When we use rational persuasion, we need to develop a persuasive case based on the other party's needs, not ours. What seems logical and reasonable to you may not be to others. With multiple parties, a different logical argument may be made to meet indi - vidual needs. Logical arguments generally work well with people whose behavior is more influenced by thinking-than by emotions. It works well when the leader and follower have the same shared interest and objectives.

When trying to persuade others to do something for us, it is helpful to use the ingratiation influencing tactic. Be friendly and praising others before you ask them for what you want-complements cost you nothing 19 (use the giving praise model in Chapter 3).

• Sources and Types of Power with Influencing Tactics

EXHIBIT

Source Position Power---------- ------------- Personal Power

f--"'-'-----+.;.;;&'-"""'....;;..".;....-+,~.;....a.;..,_d __-+-l- rr_ •__--+------+------+-..:..;.----+-------4 .,g, Tactics Leg1trm1zatton Exchange Pn:s.sun, Coalmons Rational Rational Per,;onal appeal ·i

Consultation persuasion persuasion Inspirational appeal ~g,~,, Ratio nal Inspirational .•

appeal ~- u

~--- ~ -ln~gr_at_1a_t1o_n_~----~----~----~----~- ---~-------' 9

Using Rational Persuasion. When you develop a rational persuasion, follow these guidelines:

• Explain the reason why the objective needs to be met. • Explain how the other party will benefit by meeting the objective. Try to think of the

other party's often-unasked question: what's in it for me? • Provide evidence that the objective can be met. • Explain how potential problems and concerns will be handled. Know the p otential

problems and concerns and deal with them in the rational persuasion.

Increasing Legitimate Power. To increase legitimate power, follow these guidelines:

• To have legitimate power, we need management experience, which could also be a part of the job-for example, being in charge of a team project with peers.

• Exercise authority regularly. Follow up to make sure that objectives are achieved.

148 PART I INDIVIDUALS AS LEADERS

WORK Application 5- 1 Select a present or past mar.ager who has or had coe1-cive powec Give a specific example of how he or she Jses or used reward and punishment to achieve an objective. Overall, how effective is ( or was) t his manager at using rewards and punishment?

• Follow the guidelines for using rational persuasion, especially when authority is

questioned. • Back up your authority with rewards and punishment, 20 our next two types of power,

which are primarily based on having legitimate power.

Reward Power Reward power is based on the user's ability to influence others with something of value to them. In a management position, use positive reinforcements to influence behavior, with incentives such as praise, recognition (with pins, badges, hats, or jackets), special assign- ments or desirable activities, pay raises, bonuses, and promotions. Many organizations, including Kentucky Fried Chicken (KFC), have employee-of-the-month awards. Tupper- ware holds rallies for its salespeople, and almost everyone gets something-ranging from pins to lucrative prizes for top performers. A leader's power is strong or ':eak b_ased on ability to punish and reward followers. An important part of reward power 1s havmg con- trol over getting and allocating resources. 21

Appropriate Use of Reward Power. When employees do a good job, they should_ be rewarded, as discussed with reinforcement motivation theory (Chapter 3). When dealmg with higher-level managers and people over whom we have no authority, we can use the exchange influencing tactic by offering some type of reward for helping meet our objective. The incentive for exchange can be anything of value, such as scarce resources, information, advice or assistance on another task, or career and political support. Exchange is common i 11 reciprocity22 (you do something for me and I'll do something for you-or you owe me one, for a later reward), which we will discuss in a later section on organizational politics.

Increasing Reward Power.· To increase reward power, follow these guidelines:

• Gain and maintain control over evaluating employees' performance and determining their raises, promotions, and other rewards.

• Find out what others value, and try to reward people in that way. • Let people know you control rewards, and state our criteria for giving rewards.

Coercive Power The use of coercive power involves punishment and withholding of rewards to influ­ ence compliance. It is also called the pressure influencing tactic. From fear of reprimands, probation, suspension, or dismissal, employees often do as their manager requests. Other examples of coercive power include verbal abuse, humiliation, and ostracism. Group members also use coercive power (peer pressure) to enforce group norms.

Appropriate Use of Coercive Power. Coercive power is appropriate to use in maintain- ing discipline and enforcing rules. When employees are not willing to do as requested, coercive power may be the only way to gain compliance. Employees tend to resent man- agers' use of coercive power. So keep the use of coercive power to a minimum by using it only as a last resort.

Increasing Coercive Power. To increase coercive power, follow these guidelines.

• Gain authority to use punishment and withhold rewards. • Don't make rash threats; do not use coercion to manipulate others or to gain personal

benefits. • Be persistent. If we request that followers do something, we need to follow up to makt:

sure it is done.

CHAPTER 5 INFLUENCING: POWER, POLITICS, NETWORKING, AND NEGOTIATION 149

YOU 5.1 Following Orders Make the

The armed forces are hie1-archica! by rank, based on power. Officers tend t c give orders ETHI to troops by L:sing legitimate power.When orders are followed, reward power is common. Call When orders are not followed, coe rcive power is commonly used to get the troops to

implement the order. The conditioning of the military is to respect the power of authority

and to follow orders, usually without quest ioning authority.

I. Is it ethical and socially responsible to teach people to foiiow orders without ques- t ioning authority in the military or any other organization?

2. What wou !d you do if your boss asked you to fo llow orders t hat you thought m:ght be unethicat? (Some options include the fo llowing: just do it; don't say anything but don't do

it; q uestion t he motives; look closely at what you are asked to do; go to your boss's boss

to make sure it's okay to do it; tell t he boss you wil! not do it; ask the boss to do it him-

or herself; blow the whistle to an outside so urce like the government or media: etc.)

3, Is following o rders a good justification for unethical practices?

Referent Power Referent power is based on the user's personal relationships with others. It is also called the personal appeals influencing tactic based on loyalty and friendship. Power stems pri- marily from relationships with the person using power. Charismatic leaders tend to use referent power.

Leaders can also use the inspirational appeals influencing tactic. You appeal to the follower's values, ideals, and aspirations, or increase self-confidence by displaying your feelings to appeal to the follower's emotions and enthusiasm. So rational persuasion uses logic, whereas inspirational persuasion appeals to emotions and enthusiasm. Thus, inspi- rational appeals generally work well with people whose behavior is more influenced by emotions than logical thinking.

To be inspirational, we need to understand the values, hopes, fears, and goals of fol- lowers. We need to be positive and optimistic and create a vision of how things will be when the objective is achieved. You can also include the ingratiation influencing tactic within your inspirational appeal.

Appropriate Use of Referent Power. The use of referent power is particularly appro- priate for people with weak, or no, position power, such as with peers. Referent power is needed in self-managed teams because leadership should be shared.

Increasing Referent Power. To increase referent power, follow these guidelines:

• Develop people skills, which are covered in all chapters. Remember that we don't have to be a manager to have referent power.

• Work at relationships with managers and peers.

Expert Power Expert power is based on the user's skill and knowledge. Being an expert makes other people dependent on you. People often respect an expert, and the fewer people who pos- sess an expertise and knowledge, the more power the expert individual has. 23

The more people come to us for advice, the greater is our expert power. Experts com- monly use the rational persuasion influencing tactic because people believe they know what they are saying and that it is correct.

150 PART I INDIVIDUALS AS LEADERS

WORK Application 5-2 Select a past or present Jw.Who did ( or do) you usually go to for expertise we lnforr:iatio r,? Give examples of when you wen~ to soxeone ~or expertise and when yo u went :o someone for information.

WORK Application 5-J I, Think of a present

or past manager. Which type of power does ( or did) the manager Lse most often7 Explain.

2. Whicr. one or two suggestions for increasi ng your power Dase are the most relevant to you? Exp iain.

Appropriate Use of Expert Power. Managers, particularly at lower levels, are often- but not always-experts within their departments. New managers frequently depen~ on employees who have expertise in how the organization runs and know how to get thmgs done politically. Thus, followers can have considerable influence over the leader. Expert power is essential to employees who are working with people from other departments and

organizations.

Increasing Expert Power. To increase expert power, follow these guidelines:

• To become an expert, take all the training and educational programs the organization

provides. . . . • Attend meetings of your trade or professional associations, and read their publications

(magazines and journals) to keep up with current trends in your field. Write articles to be published. Become an officer in the organization.

• Keep up with the latest technology. Volunteer to be the first to learn something new.. • Project a positive self-concept (Chapter 2),24 and let people know about your expertise

by developing a reputation for having expertise.

Information Power Information power is based on the user's data desired by others. Information powe r involves access to vital information and knowledge and control ov,er its distribution to others. 25 Managers often have access to information that is not available to subordinates, giving them power. Managers also rely on employees for information, giving them so~e power. Some administrative assistants have more information and are more helpful m answering questions than the managers they work for.

Appropriate Use of Information Power. An important part of the manager's job is t convey information. Employees often come to managers for infor~ation on wh~t to do and how to do it. Leaders use information power when making rational persuasion and

often with inspirational appeals.

Increasing Information Power. To increase information power, follow these guidelines:

• Have information flow through you. • Know what is going on in the organization. Serve on committees because it gives both

information and a chance to increase connection power. • Develop a network of information sources, and gather information from them.2

6 You

will learn how to network later in this chapter.

Connection Power Connection power is based on the user's relationships with influential people. Connection power is also a form of politics, the topic of our next major section. The right connections can give power or at ieast the perception of having power. If people know you are friendly with people in power, they are more apt to do as you request.

Sometimes it is difficult to influence others all alone. With a coalition influencing tactic you use influential people to help persuade others to meet your objective. The_~ore people you can get on your side, the more influence you can have on others. Coaht10ns are also a political strategy-a tactic that will be discussed again later in this chapter.

Appropriate Use of Connection Power. When you are looking for a job or promotio~~' connections can help. There is a lot of truth in the statement "It's not what you know; its who you know:' Connection power can also help you get resources you need.

27

WORK Appbtion 5-4 Gve three diiferent 'nkend ng tactics you or someone else ~sed to achieve an objective in an organization you have worked for.

CHAPTER 5 INFLUENCING: POWER, POLITICS, NETWORKING, AND NEGOTIATION 151

Increasing Connection Power. To increase connection power, follow these guidelines:

• Expand your network of contacts with important managers who have power. • foin the "in-crowd" and the "right" associations and clubs. Participating in sports like

golf may help you meet influential people. • Follow the guidelines for using the coalition influencing tactic. When you want some-

thing, identify the people who can help you attain it, make coalitions, and win them over to your side.

• Get people to know your name. Get all the publicity you can. Have your accomplish- ments known by the people in power; send them notices without sounding like a bragger. Now that you have read about nine influencing tactics within seven types of power, see

Exhibit 5.1 for a review, and test your ability to apply them in Concept Applications 5-1 and 5-2. Then, complete Self-Assessment 5-1 to better understand how your personality traits relate to how you use power and influencing tactics to get what you want.

lnfiuencing Tactics For each s1tuat1on, select the most appropriate individual tactic that will enhance your chances of getting a desired outcome. Wnte the appropriate letter in the blank before each item. a rational persuasion d ingratiation g coalition b inspirational appeals e. personal appeals h. leg1t1m1zat1on c. consultation f. exchange I pressure

I . Sonia is resisting helping a coworker thinking, "What's in it for me?"

2. You have an employee Hank with a big ego and who is very moody at times.You want Hank to complete an assignment ahead of schedule.

3. You believe you have accomplished things deserving a pay raise. So you decide to ask your manager for it.

4. Next week the committee you serve on will elect officers. Nominations and elections will be done at the same time.You are interested in being the president. But you don't want to nominate yourself and you don't want to run and lose.

5. Your employee Nikki regularly passes in assignments late. The assignment you are g1v1ng her now 1s very important and must be done on time.

6. You have an idea about how to increase performance of your department But you are not too sure if it will work or if the employees will like the idea

7. You are a production manager and heard rumors that the company will be purchasing some new high-tech manufacturing equipment.You would like to know if it is true, and, 1f so, are you getting it.You know a person in the purchasing department, so you decide to contact that person to try to find out.

8. The purchasing person from situation 7 gave you the information you were looking for She is calling to ask you for some informat101 ,

9. Some of your workers did not come 1n to work today You have a large order that a sales rep said would go out today It will be tough for the small crew to meet the deadline.

-- I 0. Although the crew members 1n situation 9 have agreed to push to meet the deadline, you would hke to give them some help besides your own.You have an administrative assistant who doesn't work on processing orders You decide to talk to this nonunion employee about working with the crew today