MNGT 5590Organizational Behavior

Week 6: Chapters 10, 11, 12

Dr. George Reid

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• Chapter 10: Power and Influence

• Chapter 11: Conflict and Negotiation

• Chapter 12: Leadership

10

Power and Influence in the Workplace

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

10-4

Whale Power at JP Morgan

Through unconstrained power and influence, a handful of traders (including the infamous London Whale) in the London bureau of JP Morgan’s chief investment office produced a mammoth $7 billion loss.

10-5

The Meaning of PowerThe capacity of a person, team, or

organization to influence others

Potential to change attitudes and behavior (not actual change)

People may be unaware of their power

Perception –target perceives powerholder controls a valuable resource

Power involves unequal dependence

10-6

Power and Dependence

Person B’sGoal

Person B’s countervailing

power over Person A

Person A

Person B

Person A’s power over Person B

Person A is perceived as controlling resources that help or hinder Person B’s goal achievement.

10-7

Model of Power in Organizations

Contingenciesof Power

Powerover others

Sourcesof Power

Legitimate

Reward

Coercive

Expert

Referent

10-8

Legitimate Power

Agreement that people in certain roles can request certain behaviors of others

Zone of indifference -- range of behaviors for deference to authority

Norm of reciprocity -- felt obligation to help someone who has helped you

Information control -- right to distribute information to others

Creates dependence

Frames situation

10-9

Expert PowerCapacity to influence others by possessing

knowledge or skills that they value

Coping with uncertaintyOrganizations operate better in predictable

environmentsPeople gain power by using their expertise to:

Prevent environmental changesForecast environmental changesAbsorb environmental changes

10-10

Other Sources of PowerReward power

Control rewards valued by others, remove negative sanctions

Coercive powerAbility to apply punishment

Referent powerCapacity to influence others through

identification with and respect for the power holder

Associated with charisma

10-11

Contingencies of Power

Contingenciesof Power

Substitutability

Centrality

Discretion

Visibility

Powerover others

Sourcesof Power

10-12

Increasing NonsubstitutabilitySubstitutability – availability of alternatives

More power when few/no alternatives

Reduce substitutability through:Monopoly over resourceControlling access to the resourceDifferentiating the resource

10-13

Other Contingencies of Power

CentralityDegree and nature of interdependence with powerholder

Higher centrality when (a) many people affected and (b) quickly affected

VisibilityYou are known as holder of valued resource

Increases with face time, display of power symbols

DiscretionThe freedom to exercise judgment

Rules limit discretion

Discretion is perceived by others

10-14

Power Through Social NetworksSocial networks – people connected to

each other through forms of interdependence

Generate power through social capital -- goodwill and resulting resources shared among members in a social network

Three power resources through networksInformationVisibilityReferent power

10-15

Social Network TiesStrong ties:

Close-knit relationships (frequent interaction, high sharing, multiple roles)

Offer resources more quickly/plentifully,but less unique

Weak tiesAcquaintancesOffer unique resources not held by us or

people in other networks

Many tiesResources increase with number of tiesLimited capacity to form weak/strong ties

10-16

Social Network CentralityPerson’s importance in a network

Three factors in centrality:Betweenness – extent you are located

between others in the networkDegree centrality -- Number of people

connected to you Closeness – stronger relationships

Example: “A” has highest centrality due to all three factors; “B” has lowest centrality

A

B

10-17

Influencing OthersInfluence is any behavior that attempts to alter

someone’s attitudes or behavior

Applies one or more power bases

Essential activity in organizations Coordinate with others Part of leadership definition Everyone engages in influence

10-18

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

• Reminding, confronting, checking, threatening

Silent Authority

• Following requests without overt influence• Based on legitimate power, role modeling• Common in high power distance cultures

more

Types of Influence

10-19

Coalition Formation

• Group forms to gain more power than individuals alone1. Pools resources/power 2. Legitimizes the issue3. Power through social identity

more

Types of Influence (con’t)

Information Control

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

information

10-20

Upward Appeal

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

status person

more

Types of Influence (con’t)

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

message medium, audience

10-21

Types of Influence (con’t)

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

• Negotiation, reciprocity, networking

Impression Management

• Actively shaping or public image• Self-presentation• Ingratiation

10-22

Manipulating/influencing others:

Negative: For personal gain or approval (narrow self-interest)

Positive: For the benefit of others or the future (enlightened self-interest)

Organizational Politics

10

Power and Influence in the Workplace

10-23

11

Conflict and Negotiation in the Workplace

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

11-25

Is Conflict Good or Bad?

Negative Outcomes Positive Outcomes

• Wastes time, energy, resources

• Less information sharing, productivity

• More organizational politics

• More job dissatisfaction, turnover, stress

• Weakens team cohesion (when conflict is within team)

• Fuller debate of decision choices

• Decision assumptions are questioned

• Potentially generates more creative ideas

• Improves responsiveness to external environment

• Increases team cohesion (conflict with other teams)

11-26

Emerging View: Task Versus Relationship Conflict

Task (constructive) conflictParties focus on the issue, respect people with

other points of viewTry to understand logic/assumptions of each

position

Relationship conflictFocus on personal characteristics (not issues) as

the source of conflictTry to undermine each other’s

worth/competenceAccompanied by strong negative emotions

11-27

Minimizing Relationship ConflictGoal: encourage task conflict, minimize

relationship conflict

Problem: relationship conflict often develops when engaging in task conflict

Three conditions that minimize relationship conflict during task conflict:Emotional intelligenceCohesive teamSupportive team norms

11-28

The Conflict Process

Sources ofConflict

ManifestConflict

ConflictOutcomes

Conflict Perceptions

and Emotions

Conflict Escalation Cycle

11-29

Differentiation

Interdependence

• Different values/beliefs• Explains cross-cultural, generational,

merger conflict

• Conflict increases with interdependence• Parties more likely to interfere with each

other

IncompatibleGoals

• One party’s goals perceived to interfere with other’s goals

Structural Sources of Conflict

11-30

Ambiguous Rules

Communication Problems

• Creates uncertainty, threatens goals• Encourages political behavior

• Rely on stereotypes • Less motivation to communicate• Arrogant language escalates conflict

Scarce Resources

• Motivates competition for the resource

Structural Sources of Conflict

11-31

Ass

erti

ven

ess

Cooperativeness

Forcing Problem-solving

Compromising

Avoiding Yielding

High

Low High

Five Conflict Handling Styles

11-32

Conflict Handling ContingenciesProblem solving

Best when: Interests are not perfectly opposing Parties have trust/openness Issues are complex

Problem: other party may use information to its advantage

ForcingBest when:

you have a deep conviction about your position quick resolution required other party would take advantage of cooperation

Problems: relationship conflict, long-term relations

11-33

Conflict Handling ContingenciesAvoiding

Best when: conflict is emotionally-charged (relationship conflict) conflict resolution cost is higher than benefits

Problems: doesn’t resolve conflict; causes frustration

YieldingBest when:

other party has much more power issue is much less important to you than other party value/logic of your position is imperfect

Problems: increases other’s expectations; imperfect solution

11-34

Conflict Handling Contingencies

CompromisingBest when:

Parties have equal powerQuick solution is requiredParties lack trust/openness

Problem: Sub-optimal solution where mutual gains are possible

11

Conflict and Negotiation in the Workplace

11-35

12-36

Leadership Defined

Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members

12-37

Shared LeadershipThe view that leadership is a role, not a

position assigned to one personEmployees lead each other – e.g., champion

ideas

Shared leadership flourishes where:Formal leaders are willing to delegate powerCollaborative (not competitive) cultureEmployees develop effective influence skills

Distributed leadership…

12-38

Transformational Leadership Model

Develop/communicate

a strategic vision

Model the vision

Encourage experimentation

Build commitment to the vision

Elements of

Transformational

Leadership

12-39

Managerial LeadershipDefinition: Daily activities that support and guide the performance and well-being of individual employees and the work unit to support current objectives and practices

Managerial leadership differs from transformational leadershipAssumes environment is stable (vs dynamic)Micro-focused (vs macro-focused)

Transformational and managerial leadership are interdependent

12-40

Task vs People Styles of Leadership

Task-oriented behaviorsAssign work, clarify responsibilitiesSet goals and deadlines, provide feedbackEstablish work procedures, plan future work

People-oriented behaviorsConcern for employee needsMake workplace pleasantRecognize employee contributionsListen to employees

Both styles necessary, but different effects

12-41

Servant LeadershipLeaders serve followers toward their need

fulfillment, development, growth

Described as selfless, egalitarian, humble, nurturing, empathetic, and ethical coaches

Servant leadercharacteristics:1. Natural calling to

serve others

2. Humble, egalitarian,accepting relationship

3. Ethical decisions and actions

12-42

Other Managerial Leadership TheoriesSituational Leadership Model

Four styles: telling, selling, participating, delegating

Best style depends on follower ability/motivationPopular model, but lacks research support

12-43

Authentic Leadership

Know Yourself

• Engage in self-reflection

• Feedback from trusted sources

• Know your life story

Be Yourself

• Develop your own style

• Apply your values

• Maintain a positive core self-evaluation

12-44

Gender Issues in Leadership

Male/female leaders have similar task- and people-oriented leadership

Female leaders use more participative leadership

Women rated higher on emerging leadership styles

12

Leadership inOrganizational Settings

12-45