Chapter 10 â Power and Influence The Meaning of Power ⢠What Is ...
Chapter 10 – Power and Influence The Meaning of Power •
What Is Power?
The capacity of a person, team, or organization to influence others. It is not the act of changing someone’s attitudes or behaviour; it is only the potential to do so. Power is based on the target’s perception that the powerholder controls a valuable resource that can help them achieve their goals. •
Dependence
Power involves asymmetric (unequal) dependence of one party on another party. Whatever the resource is, Person B is dependent of Person A (the powerholder) to provide the resource so Person B can reach his or her goal. Although dependence is a key element of power relationships, we use the phrase “Asymmetric dependence” because the less powerful party still has some degree of power – called countervailing power – over the power holder. •
Countervailing Power
Countervailing power is the capacity of a person, team, or organization to keep a more powerful person or group in the exchange relationship. Person A dominates the power relationship, but Person B has enough countervailing power to keep Person A in the exchange relationship and ensure that person or department uses its dominant power thoughtfully. •
Trust
The power relationship depends on some minimum level of trust. Trust indicates a level of expectation that the more powerful party will deliver the resource. Sources of Power in Organizations John French and Bertrand Raven identified five sources of power found in organizations. Three sources of power – legitimate, reward, and coercive – originate from the powerholder’s formal position. Two other sources – expert and referent – originate from the powerholder’s own characteristics. •
Legitimate Power - Formal
Legitimate power is having the authority associated with a position or role. Legitimate power has restrictions; it only gives the powerholder the right to ask for a range of behaviours from others. This range – known as the “zone of indifference” – is the set of behaviours that individuals are willing to engage in at the other person’s request. People in high power distance cultures tend to have higher deference to authority compared to people with low power distance. Norm of reciprocity – a feeling of obligation to help someone who has helped you. It is a form of legitimate power.
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Reward Power - Formal
Reward power is the capacity to control rewards (tangible or intangible things that people want). Managers have reward power over their employees with pay, promotions, etc. Employees have reward power over their bosses through their feedback and ratings in 360-degree feedback systems. •
Coercive – Formal
Coercive power is the ability to apply punishment. It depends on fear and can be used by both managers and employees. •
Expert Power – Informal
Originates from within the powerholder. It is an individual’s or work unit’s capacity to influence others by possessing knowledge or skills valued by others. Expert power is similar to legitimate power because many people tend to follow the guidance of these experts without careful thought. An important form of expert power is the perceived ability to manage uncertainties in the business environment. Coping strategies include: Prevention – preventing environmental changes from occurring. Forecasting – predicting environmental changes or variations. Absorption – absorbing or neutralizing the impact of environmental shifts as they occur. •
Referent/Charisma Power – Informal
People have referent power when others identify with them, like them, or otherwise respect them. It is largely a function of the person’s interpersonal skills and tends to develop slowly. Referent power is associated with charisma – a form of interpersonal attraction whereby followers ascribe almost magical powers to the charismatic individual. Contingencies of Power Four important contingencies of power are substitutability, centrality, discretion, and visibility. •
Substitutability
Substitutability is a contingency of power referring to the availability of alternatives. Power decreases as the number of alternative sources of the critical resource increases. Nonsubstitutability is strengthened by controlling access to the resource and when people differentiate their resource from the alternatives. •
Centrality
Centrality is a contingency of power pertaining to the degree and nature of interdependence between the powerholder and others. Centrality increases with the number of people dependent on you.
•
Discretion
The freedom to exercise judgement – to make decisions without referring to a specific rule or receiving permission from someone else – is another contingency of power. •
Visibility
Those who control valued resources or knowledge will yield power only when others are aware of these sources of power, in other words, when they are visible. One way to increase visibility is to take people-oriented jobs and work on projects that require frequent interaction with senior executives. Pretty much it’s a contingency of power that makes one standout. The Power of Social Networks Social networks – social structures of individuals or social units (e.g., departments, organizations) that are connected to each other through one or more forms of interdependence. Employees are more likely to form networks with co-workers that are located near them, relatives or neighbors. •
Social Capital and Sources of Power
Social networks generate power through social capital. Social capital is the knowledge and other resources available to people or social units (teams, organizations) from a durable network that connects them to others. Social networks offer a variety of resources: 1. Information and knowledge sharing 2. Increased visibility 3. Referent power •
Social Network Ties
Strong Ties Close-knit relationships (frequent, plenty of sharing, multiple roles) Offer more resources more quickly/plentifully, but less unique Weak Ties Acquaintances Offer unique resources not held by us or people in other networks Many Ties Resources increase with number of ties Limits on number of weak/strong ties one can create •
Social Network Centrality
The more central a person is located in a network, the more social capital and therefore more power he or she acquires. Centrality is your importance in that network. Factors in Centrality:
Betweenness - the extent to which you are located between others in the network. The more betweenness you have, the more you control the distribution of information. Connections – the more people connected to you, the more resources will be available. You are also more visible to members of the network. Closeness – High closeness occurs when a member has shorter, more direct, and efficient paths or connections with others in the network. Structural hole – an area between two or more dense social network areas that lacks network ties. Broker – someone who connects two independent networks and controls information flow between them. More brokering relationships you have, the more likely you are to get early promotions, higher pay, and bonuses. Consequences of Power When people feel empowered they believe they have power over themselves and freedom from being influenced by others. Empowerment tends to increase motivation, job satisfaction, etc. People who have power over others tend to be more mindful of their actions and engage in less stereotyping. Influencing Others Influence - any behaviour that attempts to alter someone’s attitudes or behaviour. •
Types of Influence Tactics
Silent Authority
Influencing behaviour through legitimate power without explicitly referring to that power base
Assertiveness
Actively applying legitimate and coercive power by applying pressure or threats
Information Control
Explicitly manipulating someone else’s access to information for the purpose of changing their attitudes and/or behaviour
Coalition Formation
Forming a group that attempts to influence others by pooling the resources and power of its members
Upward Appeal
Gaining support from one or more people with higher authority or expertise
Persuasion
Using logical arguments, factual evidence, and emotional appeals to convince people of the value of a request
Ingratiation/Impression Management
Exchange
Attempting to increase liking by, or perceived similarity to, some targeted person. The practice of actively shaping our public images. Promising benefits or resources in exchange for the target person’s compliance
Inoculation effect – a persuasive communication strategy of warning listeners that others will try to influence them in the future and that they should be wary about the opponent’s arguments. Consequences and Contingencies of Influence Tactics People react more favourably to “soft” tactics than to “hard” tactics. Appropriate influence tactic depends on: - Influencer’s power base - Organizational position - Cultural values and expectations
Influence and Organizational Politics Organizational politics – the pursuit of self-interest in an organization, whether or not this selfinterest corresponds to organizational goals.
Power used to pursue organizationally sanctioned goals through organizationally sanctioned means is not “political” Unsanctioned means or ends = politics •
Why Does Political Behaviour Occur?
Individual factors: Machiavellianism Organizational factors: competition for resources, unclear performance evaluation system, and democratic decision making
•
Machiavellianism
- Machiavellianism is a set of cynical beliefs about human nature, morality, and the permissibility of using various tactics to achieve one’s ends. - High Machiavellianism’s assume that others are gullible, are convincing liars, and are skillful manipulators of people. - Active in organizational politics. •
Minimizing Organizational Politics
- Introduce clear rules and regulations that specify the use of scarce resources. - Leaders need to actively manage group norms to curtail self-serving influence activities. - Leaders to become role models of organizational citizenship rather than symbols of successful organizational politicians. - Giving employees more control over their work and keeping them informed of organizational events. •
Consequences of Political Behaviour
- Lowered corporate morale - Diversion from organizational goals - Lower profitability - Higher turnover
What Is Power?
The capacity of a person, team, or organization to influence others. It is not the act of changing someone’s attitudes or behaviour; it is only the potential to do so. Power is based on the target’s perception that the powerholder controls a valuable resource that can help them achieve their goals. •
Dependence
Power involves asymmetric (unequal) dependence of one party on another party. Whatever the resource is, Person B is dependent of Person A (the powerholder) to provide the resource so Person B can reach his or her goal. Although dependence is a key element of power relationships, we use the phrase “Asymmetric dependence” because the less powerful party still has some degree of power – called countervailing power – over the power holder. •
Countervailing Power
Countervailing power is the capacity of a person, team, or organization to keep a more powerful person or group in the exchange relationship. Person A dominates the power relationship, but Person B has enough countervailing power to keep Person A in the exchange relationship and ensure that person or department uses its dominant power thoughtfully. •
Trust
The power relationship depends on some minimum level of trust. Trust indicates a level of expectation that the more powerful party will deliver the resource. Sources of Power in Organizations John French and Bertrand Raven identified five sources of power found in organizations. Three sources of power – legitimate, reward, and coercive – originate from the powerholder’s formal position. Two other sources – expert and referent – originate from the powerholder’s own characteristics. •
Legitimate Power - Formal
Legitimate power is having the authority associated with a position or role. Legitimate power has restrictions; it only gives the powerholder the right to ask for a range of behaviours from others. This range – known as the “zone of indifference” – is the set of behaviours that individuals are willing to engage in at the other person’s request. People in high power distance cultures tend to have higher deference to authority compared to people with low power distance. Norm of reciprocity – a feeling of obligation to help someone who has helped you. It is a form of legitimate power.
•
Reward Power - Formal
Reward power is the capacity to control rewards (tangible or intangible things that people want). Managers have reward power over their employees with pay, promotions, etc. Employees have reward power over their bosses through their feedback and ratings in 360-degree feedback systems. •
Coercive – Formal
Coercive power is the ability to apply punishment. It depends on fear and can be used by both managers and employees. •
Expert Power – Informal
Originates from within the powerholder. It is an individual’s or work unit’s capacity to influence others by possessing knowledge or skills valued by others. Expert power is similar to legitimate power because many people tend to follow the guidance of these experts without careful thought. An important form of expert power is the perceived ability to manage uncertainties in the business environment. Coping strategies include: Prevention – preventing environmental changes from occurring. Forecasting – predicting environmental changes or variations. Absorption – absorbing or neutralizing the impact of environmental shifts as they occur. •
Referent/Charisma Power – Informal
People have referent power when others identify with them, like them, or otherwise respect them. It is largely a function of the person’s interpersonal skills and tends to develop slowly. Referent power is associated with charisma – a form of interpersonal attraction whereby followers ascribe almost magical powers to the charismatic individual. Contingencies of Power Four important contingencies of power are substitutability, centrality, discretion, and visibility. •
Substitutability
Substitutability is a contingency of power referring to the availability of alternatives. Power decreases as the number of alternative sources of the critical resource increases. Nonsubstitutability is strengthened by controlling access to the resource and when people differentiate their resource from the alternatives. •
Centrality
Centrality is a contingency of power pertaining to the degree and nature of interdependence between the powerholder and others. Centrality increases with the number of people dependent on you.
•
Discretion
The freedom to exercise judgement – to make decisions without referring to a specific rule or receiving permission from someone else – is another contingency of power. •
Visibility
Those who control valued resources or knowledge will yield power only when others are aware of these sources of power, in other words, when they are visible. One way to increase visibility is to take people-oriented jobs and work on projects that require frequent interaction with senior executives. Pretty much it’s a contingency of power that makes one standout. The Power of Social Networks Social networks – social structures of individuals or social units (e.g., departments, organizations) that are connected to each other through one or more forms of interdependence. Employees are more likely to form networks with co-workers that are located near them, relatives or neighbors. •
Social Capital and Sources of Power
Social networks generate power through social capital. Social capital is the knowledge and other resources available to people or social units (teams, organizations) from a durable network that connects them to others. Social networks offer a variety of resources: 1. Information and knowledge sharing 2. Increased visibility 3. Referent power •
Social Network Ties
Strong Ties Close-knit relationships (frequent, plenty of sharing, multiple roles) Offer more resources more quickly/plentifully, but less unique Weak Ties Acquaintances Offer unique resources not held by us or people in other networks Many Ties Resources increase with number of ties Limits on number of weak/strong ties one can create •
Social Network Centrality
The more central a person is located in a network, the more social capital and therefore more power he or she acquires. Centrality is your importance in that network. Factors in Centrality:
Betweenness - the extent to which you are located between others in the network. The more betweenness you have, the more you control the distribution of information. Connections – the more people connected to you, the more resources will be available. You are also more visible to members of the network. Closeness – High closeness occurs when a member has shorter, more direct, and efficient paths or connections with others in the network. Structural hole – an area between two or more dense social network areas that lacks network ties. Broker – someone who connects two independent networks and controls information flow between them. More brokering relationships you have, the more likely you are to get early promotions, higher pay, and bonuses. Consequences of Power When people feel empowered they believe they have power over themselves and freedom from being influenced by others. Empowerment tends to increase motivation, job satisfaction, etc. People who have power over others tend to be more mindful of their actions and engage in less stereotyping. Influencing Others Influence - any behaviour that attempts to alter someone’s attitudes or behaviour. •
Types of Influence Tactics
Silent Authority
Influencing behaviour through legitimate power without explicitly referring to that power base
Assertiveness
Actively applying legitimate and coercive power by applying pressure or threats
Information Control
Explicitly manipulating someone else’s access to information for the purpose of changing their attitudes and/or behaviour
Coalition Formation
Forming a group that attempts to influence others by pooling the resources and power of its members
Upward Appeal
Gaining support from one or more people with higher authority or expertise
Persuasion
Using logical arguments, factual evidence, and emotional appeals to convince people of the value of a request
Ingratiation/Impression Management
Exchange
Attempting to increase liking by, or perceived similarity to, some targeted person. The practice of actively shaping our public images. Promising benefits or resources in exchange for the target person’s compliance
Inoculation effect – a persuasive communication strategy of warning listeners that others will try to influence them in the future and that they should be wary about the opponent’s arguments. Consequences and Contingencies of Influence Tactics People react more favourably to “soft” tactics than to “hard” tactics. Appropriate influence tactic depends on: - Influencer’s power base - Organizational position - Cultural values and expectations
Influence and Organizational Politics Organizational politics – the pursuit of self-interest in an organization, whether or not this selfinterest corresponds to organizational goals.
Power used to pursue organizationally sanctioned goals through organizationally sanctioned means is not “political” Unsanctioned means or ends = politics •
Why Does Political Behaviour Occur?
Individual factors: Machiavellianism Organizational factors: competition for resources, unclear performance evaluation system, and democratic decision making
•
Machiavellianism
- Machiavellianism is a set of cynical beliefs about human nature, morality, and the permissibility of using various tactics to achieve one’s ends. - High Machiavellianism’s assume that others are gullible, are convincing liars, and are skillful manipulators of people. - Active in organizational politics. •
Minimizing Organizational Politics
- Introduce clear rules and regulations that specify the use of scarce resources. - Leaders need to actively manage group norms to curtail self-serving influence activities. - Leaders to become role models of organizational citizenship rather than symbols of successful organizational politicians. - Giving employees more control over their work and keeping them informed of organizational events. •
Consequences of Political Behaviour
- Lowered corporate morale - Diversion from organizational goals - Lower profitability - Higher turnover
