Influence, Power, andPolitics in Organizations

Chapter 12Chapter 12

An example of power – Merrill Lynch in 2003

Stan O’Neal became the president in 2001 and eliminated top executives he saw as potential threats, and became CEO and chairman in Dec. 2002

Thomas Patrick, the second most senior executive in the firm and who helped O’Neal to get the position and to purge the company, secretly lobbied in 2003 to set his protégé Arshad Zakaria (41-year-old) as successor-designated.

O’Neal (51-year-old) forced the 60-year-old Patrick to retire first and

fired Zakaria a week later.

Dependency: The Key To Power

The General Dependency Postulate The greater B’s dependency on A, the greater the

power A has over B. Possession/control of scarce organizational

resources Access to optional resources (e.g., multiple

suppliers) reduces the resource holder’s power. What Creates Dependency

Importance of the resource to the organization Scarcity of the resource Nonsubstitutability of the resource

Dependency: Coach gets boss fired

In Kansas Univ., Roy Williams had been basketball coach for 15 years and fans and alumni loved him.

Williams graduated from UNC and was once a assistant coach there. UNC was searching for a new coach in summer 2003, and wanted Williams.

KU tried to keep Williams with whatever they can – including firing Williams’ boss, athletic director Al Bohl, who had numerous clashes with Williams.

Bohl said “Kansas basketball coach had the power to hold his athletic director in his hand like a dove…”

Despite of it, Williams finally chose to return to UNC

Basic Definitions

Social InfluenceSocial Influence: Attempts to affect another in a desired fashion, whether or not these are successful.PowerPower: The potential to successfully influence another; the capacity to have a desired effect on others.Organizational PoliticsOrganizational Politics: Actions by individuals that are directed toward the goal of furthering their own self-interest without regard for the well-being of others or their organization.

Social Influence Tactics I Rational PersuasionRational Persuasion: Using logical arguments

and facts to persuade another that a desired result will occur.

Inspirational Appeal:Inspirational Appeal: Arousing enthusiasm by appealing to one’s values and beliefs.

Consultation:Consultation: Asking for participation in decision making or planning a change.

Ingratiation:Ingratiation: Getting someone to do what you want by putting that person in a good mood or getting him or her to like you.

Exchange:Exchange: Promising some benefits in exchange for complying with a request.

Social Influence Tactics II Personal Appeal:Personal Appeal: Appealing to feelings of

loyalty and friendship before making a request. Coalition Building:Coalition Building: Persuading by seeking the

assistance of others or by noting the support of others.

Legitimating:Legitimating: Pointing out one’s authority to make a request or verifying that it is consistent with prevailing organizational policies and practices.

Pressure:Pressure: Seeking compliance by using demands, threats, or intimidation.

Principles of InfluenceFriendship/LikingFriendship/Liking: The more we like other persons or feel friendship for them, the more likely we are to comply with their requests or to accept other forms of influence from them.Commitment/ConsistencyCommitment/Consistency: Once individuals have adopted a position or committed themselves to a course of action, they experience strong pressure to comply with requests that are consistent with these initial commitments.ScarcityScarcity: Requests that emphasize scarcity or the fact that some object, opportunity, or outcome will soon no longer be available, are difficult to resist.ReciprocityReciprocity: Individuals generally experience powerful pressures to reciprocate benefits they have received from others.

Individual Power

Position Position PowerPower

Power based on one’s formal

position in an organization.

Personal Personal PowerPower

The power that one derives

because of his or her individual

qualities or characteristics.

Position Power Legitimate Power:Legitimate Power: The individual power base

derived from one’s position in an organizational hierarchy; the accepted authority of one’s position.

Reward Power:Reward Power: The individual power base derived from an individual’s capacity to administer valued rewards to others.

Coercive Power: Coercive Power: The individual power base derived from the capacity to administer punishment to others.

Information Power:Information Power: The extent to which a supervisor provides a subordinate with the information need to do the job.

Personal Power Rational PersuasionRational Persuasion: Using logical arguments and

factual evidence to convince others that an idea is acceptable.

Expert PowerExpert Power: The individual power base derived from an individual’s recognized superior skills and abilities in certain areas.

Referent PowerReferent Power: The individual power base derived from the degree to which one is liked and admired by others.

CharismaCharisma: An attitude of enthusiasm and optimism that is contagious; an aura of leadership.

Political Tactics Gaining control over and selective

use of information. Cultivating a favorable impression. Building powerful coalitions. Blaming and attacking others. Associating with powerful others. Creating obligations and using

reciprocity.

Sexual Harassment: Unequal Power in the Workplace

Politics Is in the Eye of the Beholder

Prisoners’ Dilemma

Deny Tell

Deny +1, +1 -2, +2

Tell +2, -2 -1, -1