McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

Power and Influence in the

Workplace

Chapter NineCraig Abraham/Fairfax Photos

9-2

Power, Influence & Politics at NAB

National Australia Bank (NAB) rogue trader Luke Duffy and his colleagues created losses of $350 million, thanks in part of Duffy’s power and influence tactics.

Craig Abraham/Fairfax Photos

9-3

The Meaning of Power

Power is the capacity of a person, team, or organization to influence others. Potential, not practice People have power they

don’t use -- may not know they possess

Power requires one person’s perception of dependence on another personCraig Abraham/Fairfax Photos

9-4

Power and Dependence

Resource desired by person B

Person B’s countervailing

power over Person A

Person A Person A’s control of

resource valued by person B

Person B

Person A’s power over Person B

9-5

Model of Power in Organizations

Contingenciesof Power

Powerover others

Sourcesof Power

LegitimateRewardCoerciveExpert

Referent

9-6

LegitimateLegitimate Agreement that people in certain roles can request certain behaviors of othersBased on job descriptions and mutual agreement from those expected to abide by this authorityLegitimate power range (zone of indifference) is higher in high power distance cultures

Sources of Power

9-7

LegitimateLegitimate Ability to control the

allocation of rewards valued by others and to remove negative sanctions

Operates upward as well as downward

Sources of Power

RewardReward

9-8

LegitimateLegitimate

Ability to apply punishment Exists upward as well as

downward Peer pressure is a form of

coercive power

Sources of Power

RewardReward

CoerciveCoercive

9-9

LegitimateLegitimate

Individual’s or work unit’s capacity to influence others by possessing knowledge or skills that they value

Employees gaining expert power over companies in knowledge economy

Sources of Power

RewardReward

CoerciveCoercive

ExpertExpert

9-10

LegitimateLegitimate

Occurs when others identify with, like, or otherwise respect the person

Associated with charismatic leadership

Sources of Power

RewardReward

CoerciveCoercive

ExpertExpert

Referent

9-11

Information and Power

Control over information flow Based on legitimate power Relates to formal communication network

Coping with uncertainty Those who know how to cope with organizational

uncertainties gain power— Prevention— Forecasting— Absorption

9-12

Contingencies of Power

Contingenciesof Power

SubstitutabilityCentralityDiscretionVisibility

Powerover others

Sourcesof Power

9-13

Increasing Nonsubstitutability

Increase control over the resource Medicine -- exclusive right to perform medical

procedures Labor unions -- control over skilled labor Specialists -- exclusive knowledge how to operate

or repair equipmentDifferentiate resource from others Services provided by consulting firms

9-14

Centrality

Degree and nature of interdependence between powerholder and othersCentrality is a function of: How many others are affected by you How quickly others are affected by you

9-15

Discretion and VisibilityDiscretion The freedom to exercise judgment Rules limit discretion, limit power Also a perception managers with internal locus of

control act like they have discretionVisibility Symbols communicate your power source(s)

— Educational diplomas— Clothing etc (stethoscope around neck)

Salience— Location where others are more aware of your presence

9-16

Social Networking and Power

Cultivating social relationships with others to accomplish one’s goals

Increases power through: social capital -- durable network that connects

people to others with valuable resources referent power -- people tend to identify more

with partners within their own networks visibility and centrality contingencies

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

Influencing Others

Power and Influencein the Workplace

9-18

Influencing Others

Influence is any behavior that attempts to alter someone’s attitudes or behavior Applies one or more power bases Process through which people achieve

organizational objectives Operates up, down, and across the organizational

hierarchy

9-19

AssertivenessAssertiveness • Actively applying legitimate and coercive power (“vocal authority”)

• Reminding, confronting, checking, threatening

Silent Silent AuthorityAuthority

• Following requests without overt influence• Based on legitimate power, role modeling

• Common in high power distance cultures

more

Types of Influence

9-20

Coalition Coalition FormationFormation

• Group forms to gain more power than individuals alone

1. Pools resources/power 2. Legitimizes the issue3. Power through social identity

more

Types of Influence (con’t)

Information Information ControlControl

• Manipulating others’ access to information • Withholding, filtering, re-arranging

information

9-21

Ingratiation/ Ingratiation/ Impress. Mgt.Impress. Mgt.

• Ingratiation

• Impression Management

Upward Upward AppealAppeal

• Appealing to higher authority

• Includes appealing to firm’s goals• Alliance or perceived alliance with higher

status person

more

Types of Influence (con’t)

9-22

PersuasionPersuasion • Logic, facts, emotional appeals• Depends on persuader, message content,

message medium, audience

Types of Influence (con’t)

ExchangeExchange • Promising or reminding of past benefits in exchange for compliance

• Includes negotiation and networking

9-23

Consequences of Influence Tactics

ResistanceResistance ComplianceCompliance CommitmentCommitment

Persuasion

Ingratiation &impression mgt

Exchange

Soft Influence Tactics

Hard Influence Tactics

Silent authorityUpward appeal

Coalition formationInformation control

Assertiveness

9-24

Steve Jobs’ Reality Distortion Field

Steve Jobs, CEO of Apple Computer and Pixar Animation Studios, is famous for influencing people through his persuasiveness, which draws them into his “reality distortion field.”

9-25

Contingencies of Influence Tactics

“Soft” tactics generally more acceptable than “hard” tacticsAppropriate influence tactic depends on: Organizational position Influencer’s power base Cultural values and

expectations

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Politics

Power and Influencein the Workplace

9-27

Organizational Politics

Behaviors that others perceive as self-serving tactics for personal gain at the expense of other people and possibly the organization.

9-28

ConditionsConditionsSupportingSupporting

Organizational Organizational PoliticsPolitics

ScarceScarceResourcesResources

Complex andComplex andAmbiguousAmbiguousDecisionsDecisions

Tolerance of Tolerance of PoliticsPolitics

OrganizationalOrganizationalChangeChange

Conditions for Organizational Politics

9-29

Minimizing Political Behavior

Introduce clear rules for scarce resourcesEffective organizational change practicesSuppress norms that support or tolerate self-serving behaviorLeaders role model organizational citizenshipGive employees more control over their own workKeep employees informed

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

Power and Influence in the

Workplace

Chapter NineCraig Abraham/Fairfax Photos