12 Power and Influence in the Workplace McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc All rights reserved Power, Influence & Politics at NAB National Australia Bank rogue trader Luke Duffy and his colleagues created losses of $350 million, thanks in part of Duffy’s power and influence tactics Craig Abraham/Fairfax Photos McShane/Von Glinow OB4e Slide 12-2 © 2008 The McGraw-Hill Companies, Inc All rights reserved The Meaning of Power • Power is the capacity of a person, team, or organization to influence others – The potential to influence others – People have power they don’t use and may not know they possess – Power requires one person’s perception of dependence on another person McShane/Von Glinow OB4e Slide 12-3 Craig Abraham/Fairfax Photos © 2008 The McGraw-Hill Companies, Inc All rights reserved Power and Dependence Person B’s counterpower over Person A Person A Person B McShane/Von Glinow OB4e Person A’s power over Person B Person B’s Goals Slide 12-4 © 2008 The McGraw-Hill Companies, Inc All rights reserved Model of Power in Organizations Sources Of Power Legitimate Reward Coercive Expert Referent McShane/Von Glinow OB4e Power over Others Contingencies Of Power Slide 12-5 © 2008 The McGraw-Hill Companies, Inc All rights reserved Source of Power Legitimate • Agreement that people in certain roles can request certain behaviors of others • Based on job descriptions and mutual agreement from those expected to abide by this authority • Legitimate power range (zone of indifference) is higher in high power distance cultures McShane/Von Glinow OB4e Slide 12-6 © 2008 The McGraw-Hill Companies, Inc All rights reserved Source of Power Legitimate Reward  Ability to control the allocation of rewards valued by others and to remove negative sanctions  Operates upward as well as downward McShane/Von Glinow OB4e Slide 12-7 © 2008 The McGraw-Hill Companies, Inc All rights reserved Source of Power Legitimate Reward Coercive  Ability to apply punishment  Exists upward as well as downward  Peer pressure is a form of coercive power McShane/Von Glinow OB4e Slide 12-8 © 2008 The McGraw-Hill Companies, Inc All rights reserved Source of Power Legitimate Reward Coercive Expert  Individual’s or work unit’s capacity to influence others by possessing knowledge or skills that they value  Employees gaining expert power over companies in knowledge economy McShane/Von Glinow OB4e Slide 12-9 © 2008 The McGraw-Hill Companies, Inc All rights reserved Source of Power Legitimate Reward Coercive Expert Referent McShane/Von Glinow OB4e  Occurs when others identify with, like, or otherwise respect the person  Associated with charismatic leadership Slide 12-10 © 2008 The McGraw-Hill Companies, Inc All rights reserved Increasing Nonsubstitutability Controlling Tasks Differentiation Increasing Nonsubstitutability Controlling Labor McShane/Von Glinow OB4e Controlling Knowledge Slide 12-14 © 2008 The McGraw-Hill Companies, Inc All rights reserved Networking and Power • Cultivating social relationships with others to accomplish one’s goals • Increases power through – social capital durable network that connects people to others with valuable resources – referent power people tend to identify more with partners within their own networks – visibility and centrality contingencies McShane/Von Glinow OB4e Slide 12-15 © 2008 The McGraw-Hill Companies, Inc All rights reserved Influencing Others • Influence is any behavior that attempts to alter someone’s attitudes or behavior – Applies one or more power bases – Process through which people achieve organizational objectives – Operates up, down, and across the organizational hierarchy McShane/Von Glinow OB4e Slide 12-16 © 2008 The McGraw-Hill Companies, Inc All rights reserved Types of Influence Silent Authority • Following requests without overt influence • Based on legitimate power, role modeling • Common in high power distance cultures Assertiveness • Actively applying legitimate and coercive power (“vocal authority”) • Reminding, confronting, checking, threatening more McShane/Von Glinow OB4e Slide 12-17 © 2008 The McGraw-Hill Companies, Inc All rights reserved Types of Influence (con’t) Exchange • Promising or reminding of past benefits in exchange for compliance • Negotiation is integral to this strategy • Networking relates to exchange influence Coalition Formation • Group forms to gain more power than individuals alone Pools resources/power Legitimizes the issue Power through social identity more McShane/Von Glinow OB4e Slide 12-18 © 2008 The McGraw-Hill Companies, Inc All rights reserved Types of Influence (con’t) Upward Appeal • Appealing to higher authority • Includes appealing to firm’s goals • Formal alliance or perception of alliance with higher status person Ingratiation/ • Ingratiation • Increasing liking/similarity to target Impress Mgt • Flattering, helping, seeking advice • Impression Management • Actively shaping our public images • Way we dress, padding résumé more McShane/Von Glinow OB4e Slide 12-19 © 2008 The McGraw-Hill Companies, Inc All rights reserved Types of Influence (con’t) Persuasion Information Control McShane/Von Glinow OB4e • Using logic, facts, emotional appeals to gain acceptance • Depends on persuader, message content, message medium, audience • Manipulating others’ access to information • Withholding, filtering, re-arranging information Slide 12-20 © 2008 The McGraw-Hill Companies, Inc All rights reserved Consequences of Influence Tactics Hard Influence Tactics Soft Influence Tactics Silent authority Persuasion Upward appeal Coalition formation Ingratiation & impression mgt Information control Exchange Assertiveness Resistance McShane/Von Glinow OB4e Compliance Slide 12-21 Commitment © 2008 The McGraw-Hill Companies, Inc All rights reserved Steve Jobs’ Reality Distortion Field Steve Jobs, CEO of Apple Computer and Pixar Animation Studios, is famous for influencing people through his persuasiveness, which draws them into his “reality distortion field.” McShane/Von Glinow OB4e Slide 12-22 © 2008 The McGraw-Hill Companies, Inc All rights reserved Contingencies of Influence Tactics • “Soft” tactics generally more acceptable • Appropriate influence tactic depends on: – Organizational position – Influencer’s power base – Cultural values and expectations – Age cohort • Gender differences McShane/Von Glinow OB4e Slide 12-23 © 2008 The McGraw-Hill Companies, Inc All rights reserved WorldCom Politics Former WorldCom CEO Bernard Ebbers (left), CFO Scott Sullivan (right), and other executives perpetrated one of the largest cases of accounting fraud in history by using assertiveness, information control, and other influence practices as political tactics to protect their financial interests McShane/Von Glinow OB4e Slide 12-24 © 2008 The McGraw-Hill Companies, Inc All rights reserved Organizational Politics Behaviors that others perceive as self-serving tactics for personal gain at the expense of other people and possibly the organization McShane/Von Glinow OB4e Slide 12-25 © 2008 The McGraw-Hill Companies, Inc All rights reserved Conditions for Organizational Politics Tolerance of Politics Scarce Resources Conditions Supporting Organizational Politics Complex and Ambiguous Decisions Organizational Change McShane/Von Glinow OB4e Slide 12-26 © 2008 The McGraw-Hill Companies, Inc All rights reserved Minimizing Political Behavior Introduce clear rules Manage team norms Free flowing information Support values that oppose politics Manage change effectively Leaders as role models McShane/Von Glinow OB4e Slide 12-27 © 2008 The McGraw-Hill Companies, Inc All rights reserved 12 Power and Influence in the Workplace McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc All rights reserved ... Influencing Others • Influence is any behavior that attempts to alter someone’s attitudes or behavior – Applies one or more power bases – Process through which people achieve organizational objectives –... reserved Conditions for Organizational Politics Tolerance of Politics Scarce Resources Conditions Supporting Organizational Politics Complex and Ambiguous Decisions Organizational Change McShane/Von... Glinow OB4e Slide 12-24 © 2008 The McGraw-Hill Companies, Inc All rights reserved Organizational Politics Behaviors that others perceive as self-serving tactics for personal gain at the expense