ORGANIZATIONAL BEHAVIOR Chapter 14 Power and Politics Finance

ORGANIZATIONAL BEHAVIOR Chapter 14 Power and Politics Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

OBJECTIVES LEARNING AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO UNDERSTAND: 1. Define power, and contrast leadership and power. 2. Contrast the five bases of power. 3. Identify nine power or influence tactics and their contingencies. 4. Distinguish between legitimate and illegitimate political behavior. 5. Identify the causes and consequences of political behavior. 6. Apply impression management techniques. Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Power: The capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes – Power is a function of dependency – The greater B's dependence on A, the greater A’s power in the relationship Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Contrasting Leadership and Power: Leadership Power Leader use power as a means of attaining group goals Power is a means of facilitating their achievement A Leader can be a powerful person A Powerful person not necessarily can be a leader. . Leadership is what you already have in you Power is what everybody wants and can get even if they have no leadership qualities A Leader leads and people follow him willingly A Powerful person demands people to follow him and people are forced to follow him. . . unwillingly and helplessly. Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Contrasting Leadership and Power(Contd. ): Leadership Power Leadership require some Power does not require goal congruence between the goal compatibility, merely of the leader and those being dependence led Focuses influence downward Used to gain lateral and upward influence Research Focus. Leadership styles and relationships with followers Research Focus Power tactics for gaining compliance Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Contrast the five bases of power: Formal Power: Established by an individual’s position in an organization 1. Coercive Power: A power base dependent on fear. 2. Reward Power: Compliance achieved based on the ability to distribute rewards that others view as valuable 3. Legitimate Power: The formal authority to control and use resources based on a person’s position in the formal hierarchy Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Contrast the five bases of power(Contd. ): 4. Expert Power: Influence based on special skills or knowledge 5. Referent Power: Influence based on possession by an individual of desirable resources or personal traits Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Identify nine power or influence tactics and their contingencies : Power Tactics: Ways in which individuals translate power bases into specific actions Nine influence tactics: 1. Legitimacy: Relying in one authority position or stress that a request is in accordance with organizational policies or rules. 2. Rational persuasion: Presenting logical arguments and factual evidence to demonstrate that a request is reasonable. 3. Inspirational appeals: Developing emotional commitment by appealing to a target’s values, needs, hopes and aspirations. Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Identify nine power or influence tactics and their contingencies (Contd. ) : Power Tactics: Nine influence tactics (Contd): 4. Consultation: Increasing the targets' motivation and support by involving him or her in deciding how the plan or change will be accomplished. 5. Exchange: Rewarding the target with benefits or favors in exchange for following a request. 6. Personal appeals: Asking for compliance based on friendship or loyalty. Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Identify nine power or influence tactics and their contingencies(Contd. ) : Power Tactics: Nine influence tactics (Contd): 7. Ingratiation: Using flattery, praise or friendly behavior prior to making a request. 8. Pressure: Using warnings, repeated demands and threats. 9. Coalitions: Enlisting the aid of other people to persuade the target or using the support of others as a reason for the target to agree. Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

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 Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Factors Influencing Power Tactics: Choice and effectiveness of influence tactics are moderated by: üSequencing of tactics • Softer to harder tactics work best üPolitical skill of the user üThe culture of the organization • Culture affects user’s choice of tactic Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Distinguish between legitimate and illegitimate political behavior: Organizational Politics: focused on the use of power to affect decision making in an organization or an behaviors by members that are self-serving and organizationally nonsanctioned. 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. Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Distinguish between legitimate and illegitimate political behavior(Contd. ): – Legitimate Political Behavior • Normal everyday politics - complaining, bypass, obstructing – Illegitimate Political Behavior • Extreme political behavior that violates the implied rules of the game: sabotage, whistle-blowing, and symbolic protest Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Identify the causes and consequences of political behavior: Figure: Factors that Influence Political Behavior Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Employee Responses to Organizational Politics: Figure: Most employees have low to modest willingness to play politics and have the following reactions to politics: Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Defensive Behaviors: q. Employees who perceive politics as a threat have defensive reactions May be helpful in the short run, dangerous in the long run q. Types of defensive behaviors – Avoiding Action • Overconforming, buck passing, playing dumb, stalling –Avoiding Blame • Bluffing, playing safe, justifying, scapegoating –Avoiding Change • Prevention, self-protection Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Impression Management (IM): üThe process by which individuals attempt to control the impression others form of them üIM Techniques –Conformity –Excuses –Apologies –Self-Promotion –Flattery –Favors –Association Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

IM Effectiveness: Job Interview Success –IM does work and most people use it –Self-promotion techniques are important –Ingratiation is of secondary importance Performance Evaluations –Ingratiation is positively related to ratings –Self-promotion tends to backfire Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU

Questions Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU