14 Chapter Robbins Judge Organizational Behavior 13 th

A Definition of Power Ø Power – The capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes – Exists as a potential or fully actualized influence over a dependent relationship Ø Dependency – B’s relationship to A when A possesses something that B requires – The greater B's dependence, the more power A has – Course students wants to take © 2009 Prentice-Hall Inc. All rights reserved. 14 -1

Better Liars Ø Researchers gave one group of research subjects bigger offices and more authority, while another group received smaller offices and less authority, then half the subjects in each condition were told to steal a hundred dollar bill and convince an interviewer they hadn’t taken it. If they were able to fool the interviewer, they could keep the money. Ø Fewer signs of dishonesty and stress like shoulder shrugs and shuttering © 2009 Prentice-Hall Inc. All rights reserved. 14 -2

Poor performers Ø A laboratory mockup of a performance review was developed and participants acted the part of either powerful or un powerful managers. Ø The result? © 2009 Prentice-Hall Inc. All rights reserved. 14 -3

Contrasting Leadership and Power Leadership – Focuses on goal achievement – Requires goal compatibility with followers – Focuses influence downward Power – Used as a means for achieving goals – Requires follower dependency – Used to gain lateral and upward influence Ø Research Focus – Leadership styles and relationships with followers © 2009 Prentice-Hall Inc. All rights reserved. Ø Research Focus – Power tactics for gaining compliance 14 -4

Bases of Power: Formal Power Ø Formal Power – Established by an individual’s position in an organization – Three bases: • Coercive Power » A power base dependent on fear of negative results • Reward Power » Compliance achieved based on the ability to distribute rewards that others view as valuable • Legitimate Power » The formal authority to control and use resources based on a person’s position in the formal hierarchy © 2009 Prentice-Hall Inc. All rights reserved. 14 -5

Bases of Power: Personal Power Ø Power that comes from an individual’s unique characteristics – these are the most effective – Expert Power • Influence based on special skills or knowledge – Referent Power • Influence based on possession by an individual of desirable resources or personal traits E X H I B I T 14 -1 © 2009 Prentice-Hall Inc. All rights reserved. 14 -6

© 2009 Prentice-Hall Inc. All rights reserved. 14 -7

Dependency: The Key to Power Ø 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 that others need makes a manager powerful – Access to optional resources (e. g. , multiple suppliers) reduces the resource holder’s power Ø Dependency increases when resources are: – Important – Scarce – Nonsubstitutable © 2009 Prentice-Hall Inc. All rights reserved. 14 -8

Power Tactics Ø Power Tactics – Ways in which individuals translate power bases into specific actions – Nine influence tactics: • • • Legitimacy Rational persuasion* Inspirational appeals* Consultation* Exchange Personal appeals Ingratiation Pressure Coalitions © 2009 Prentice-Hall Inc. All rights reserved. * Most effective (Pressure is the least effective) 14 -9

Preferred Power Tactics by Influence Direction Upward Influence Downward Influence Lateral Influence Rational persuasion Inspirational appeals Consultation Pressure Ingratiation Consultation Exchange Ingratiation Legitimacy Exchange Personal appeals Legitimacy Coalitions E X H I B I T 14 -2 © 2009 Prentice-Hall Inc. All rights reserved. 14 -10

Factors Influencing Power Tactics Ø Choice and effectiveness of influence tactics are moderated by: – Sequencing of tactics • Softer to harder tactics work best – Political skill of the user – The culture of the organization • Culture affects user’s choice of tactic © 2009 Prentice-Hall Inc. All rights reserved. 14 -11

Mr. Kabir was working in an Administration Department as officer Administra tion. He was responsible for keeping account of all the Vehicles of the company apart from other arrangements including the guesthouse of the company. Mr. Kabir has been working in the company for 6 years in the same grade without promotions. He was supposed to be very honest in his job. Once the GM of the factory Mr. Rakesh Gupta requested for the company car during office time for his personal work. Mr. Kabir refused it saying that it cannot be given during the office work as the work would suffer due to its duty to go to bank. Mr. Gupta became quite upset and asked his boss Mr. Srivastava to give the car. © 2009 Prentice-Hall Inc. All rights reserved. 14 -12

Mr. Srivasatava (Sr. Manager Admin) was too happy to oblige Mr. Gupta as he wanted one of his relatives to be employed as Officer. Hence he fired Mr. Kabir for his disobedience and threatened to transfer him to stores if he continued to show disrespect to senior officers. Mr. Kabir was also active member of staff union. He immediately went to the Union President and informed him about the misuse of the company car for private purpose by GM at the cost of the office work. It was decided that Kabir would send a note in writing to Mr. Srivastava asking him to approve sending the car to the house of Mr. Gupta. Mr Srivastava understood the repercussions and refused t o sign the approval. He lent his own car to Mr. Gupta © 2009 Prentice-Hall Inc. All rights reserved. 14 -13

Questions Ø What power was being used by Kabir? Ø What power Mr. Srivastave

Unwanted Harassment: A Case of Unequal Power Ø Harassment: – Any unwanted activity that affects an individual’s employment and creates a hostile work environment • Overt actions, like unwanted touching, are relatively easy to spot • Subtle actions, like jokes or looks, can cross over the line into harassment Ø It is about abusing an unequal power relationship – Harassment can damage the well-being of the individual, work group, and organization © 2009 Prentice-Hall Inc. All rights reserved. 14 -15

Managerial Actions to Prevent Harassment Ø Make sure a policy against it is in place. Ø Ensure that employees will not encounter retaliation if they file a complaint. Ø Investigate every complaint and include the human resource and legal departments. Ø Make sure offenders are disciplined or terminated. Ø Set up in-house seminars and training. © 2009 Prentice-Hall Inc. All rights reserved. 14 -16

Politics: Power in Action Ø Political Behavior – Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization – Legitimate Political Behavior • Normal everyday politics - complaining, bypassing, obstructing – Illegitimate Political Behavior • Extreme political behavior that violates the implied rules of the game: sabotage, whistle-blowing, and symbolic protest © 2009 Prentice-Hall Inc. All rights reserved. 14 -17

Political Behavior Ø Ø Ø With holding key information from decision makers Joining a coalition Whistle blowing Spreading rumors Leaking confidential information to media Lobbying © 2009 Prentice-Hall Inc. All rights reserved. 14 -18

Eli Lilly Pharmaceutical Company Ø In 2009, four former employees of the company brought individual suit against Eli Lilly for marketing its antipsychotic drug Zyprexa for uses not approved by the U. S. Food and Drug Administration. All four employees individually discovered discrepancies and unethical doings in the company and hired attorneys to bring charges against the company. The company was marketing its drug for unapproved use against dementia in the elderly, generalized sleep disorders and more. The company admitted to these illegal practices and settled a $1. 4 billion lawsuit with the government. The whistleblowers in this case shared in 18 percent or $78 million dollars of the federal government’s part of the civil settlement. © 2009 Prentice-Hall Inc. All rights reserved. 14 -19

Misuse of confidential information Ø A project engineer working in the government was assigned to work on a highway development project where he had access to restricted information. In the tendering process for the project, a contractor who was also a close friend of the project engineer indicated immense interest. © 2009 Prentice-Hall Inc. All rights reserved. 14 -20

Cont’d Ø Just before the official tender invitation was issued, the contractor asked the project engineer if he could give him any information that would help him win the contract. He proposed that the project engineer let him know the lowest bid price by leaving a coded message on his mobile phone. The contractor would then beat that price in his bid that he would submit just before the deadline. In return, he would make the project engineer a part-time consultant of his company and share the profit from the project with him. To win the project engineer over, the contractor says that someone would get the project any way and it might as well be him, he was as good a choice as any other contractor. © 2009 Prentice-Hall Inc. All rights reserved. 14 -21

Cont’d Ø Anxious to cover the losses he had suffered in his stock investments, the project engineer indicated that he would try out the scheme proposed by the contractor. © 2009 Prentice-Hall Inc. All rights reserved. 14 -22

The Reality of Politics Ø Politics is a natural result of resource scarcity – Limited resources lead to competition and political behaviors e. g. budget, space, salary, responsibilities Ø Judgments on quality differ markedly based on the observer’s perception – “Blaming others” or “fixing responsibility” – “Covering your rear” or “documenting decisions” – “Perfectionist” or “attentive to detail” Ø Most decisions are made under ambiguous conditions – Lack of an objective standard encourages political maneuvering of subjective reality E X H I B I T 14 -3 © 2009 Prentice-Hall Inc. All rights reserved. 14 -23

Causes and Consequences of Political Behavior Ø Factors that Influence Political Behavior E X

Response Ø Sara loves her job as a write on a weekly television comedy series but hates the internal politics. “A couple of the writers here spend more time kissing up to the executive procedures than doing any work. And our head writer clearly has his favorites. While they pay me a lot and I get to really use my creativity, I am sick of having to be on alert for backstabbers and constantly having to self promote my contributions. I am tired of doing most of the work and getting little of the credit. ” © 2009 Prentice-Hall Inc. All rights reserved. 14 -25

Employee Responses to Organizational Politics Ø Most employees have low to modest willingness to play politics and have the following reactions to politics: E X H I B I T 14 -5 © 2009 Prentice-Hall Inc. All rights reserved. 14 -26

Defensive Behaviors Ø Employees who perceive politics as a threat have defensive reactions – May be helpful in the short run, dangerous in the long run Ø Types of defensive behaviors – Avoiding Action • Overconforming, buck passing, playing dumb, stalling – Avoiding Blame • Bluffing, playing safe, justifying, scapegoating – Avoiding Change • Prevention, self-protection E X H I B I T 14 -6 © 2009 Prentice-Hall Inc. All rights reserved. 14 -27

Impression Management (IM) Ø The process by which individuals attempt to control the impression others form of them Ø IM Techniques – – – – Conformity Excuses Apologies Self-Promotion Flattery Favors Association Source: Based on B. R. Schlenker, Impression Management (Monterey, CA: Brooks/Cole, 1980); W. L. Gardner and M. J. Martinko, “Impression Management in Organizations, ” Journal of Management, June 1988, p. 332; and R. B. Cialdini, “Indirect Tactics of Image Management Beyond Basking, ” in R. A. Giacalone and P. Rosenfeld (eds. ), Impression Management in the Organization (Hillsdale, NJ: Lawrence Erlbaum Associates, 1989), pp. 45– 71. E X H I B I T 14 -7 © 2009 Prentice-Hall Inc. All rights reserved. 14 -28

Cont’d Ø A manager tells his boss, “You are absolutely right on your reorganization plan for the Lahore regional office. I couldn’t agree with you more. ” Ø A sales person tells his boss, “ Ahmed worked unsuccessfully for three years to try to get that account. I sewed it up in six weeks. I am the best closer this company has. ” © 2009 Prentice-Hall Inc. All rights reserved. 14 -29

IM Effectiveness Ø Job Interview Success – IM does work and most people use it – Self-promotion techniques are important – Ingratiation is of secondary importance Ø Performance Evaluations – Ingratiation is positively related to ratings – Self-promotion tends to backfire © 2009 Prentice-Hall Inc. All rights reserved. 14 -30