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Leadership and Team Management

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Leadership & Team Management ­ MGMT 623
VU
Lesson 18
UNDERSTANDING POWER
We started discussing concept of power and try to differentiate power, influence and authority.
Power - the ability to influence another person
Influence - the process of affecting the thoughts, behavior, & feelings of another person
Authority - the right to influence another person. Legitimate power is known as authority.
Sources of Power:
Organizations are composed of people who come together to achieve their common goals. When
resources are scarce, people and groups have to compete for them, and some achieve their goals while
others do not. In an organization, leaders have the primary responsibility to ensure that competition for
resources is free and fair and that people who obtain power over resources do so because they possess
skills and abilities that will, in the long run, benefit all members of the organization. Similarly leaders
also use different sources of power to influence followers and get things from them.
Sources of Power
1. Reward power
Other Sources of Power
- giving something of value.
2. Coercive power (Punishment)
Connection power
- force against the will (threat of firing).
Information power
3. Expert power
- use of knowledge, competence, expertise.
Group decision making power
4. Referent power
Organization power
- use of charisma to influence others (inspiration)
5. Legitimate power
Coalition power
- position power.
6. Numbers power
7. Others- legal, public, money
1. Reward power: When someone has power to give some thing of value or withhold this. Reward
power is the power to give pay raises, promotions, praise, interesting projects, and other rewards to
subordinates. As long as subordinates value the rewards, a manager/leader can use reward power to
influence and control their behavior.
2. Coercive power (Punishment): Coercive power is the power to give or withhold punishment.
Punishments range from suspension to demotion, termination, unpleasant job assignments, or even the
withholding of praise and goodwill. The ability to reward or punish subordinates gives supervisors great
power, which is sometimes abused. It is for this reason that most organizations have clearly defined
rules concerning when and how employees are to be rewarded or punished. Review boards and
promotion committees may be used to assist management in this respect.
Coercive power and reward power are actually counterparts of each other. If you can remove something
of positive value from another or inflict something of negative value upon him/her, you have coercive
power over that person. If you can give someone something of positive value or remove something of
negative value, you have reward power over that person.
3. Expert power: Expert power is "influence wielded as a result of expertise, special skill, or
knowledge." Expertise has become a powerful source of influence as the world has become more
technological. As jobs become more specialized, we become increasingly dependent on experts to
achieve goals. Generally, people who possess expert power are promoted up the hierarchy of authority
so that their informal power eventually becomes formal.
4. Referent power: Its base is identification with a person who has desirable resources or personal
traits. If I admire and identify with you, you can exercise power over me because I want to please you.
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Leadership & Team Management ­ MGMT 623
VU
Referent power develops out of admiration of another and a desire to be like that person; it is a lot like
charisma. These individuals are often noted for their agreeableness, extroversion, or conscientiousness.
Fame is one sign that a person has acquired referent power.
5. Legitimate power: In formal groups and organizations, the most frequent access power is one's
structural position. It represents the power a person receives as a result of his/her position in the formal
hierarchy. Positions of authority include coercive and reward powers. Legitimate power, however, is
broader than the power to coerce and reward. It includes acceptance of the authority of a position by
members of an organization. Legitimate power confers on an individual the legitimate authority to
control and use organizational resources to accomplish organizational goals. Legitimate power is the
ultimate source of an individual's power in an organization.
6. Numbers power: The formal and informal power using by an individual same time. Especially when
number maters. More people are on your side, you can use this to influence.
7. Others: other powers are the legal power uses according to the law, public power given by the public
to an individual as leader and money power based on financial resources and influences others with the
power of money.
Other Sources of Power:
Connection power: connection power is the power based on good connection inside and out side
the organization. And by using this power a leader can have achieve the organizational goals.
Information power: Information power is power stemming from access to and control over
information. The more information a manager possesses, the better able he or she is to solve
problems facing subordinates. Lack of information power forces subordinates to be dependant on
superiors for their information needs. Many managers are unwilling to share information power.
The most effective organizations do not do this.
Group decision making power: is a power in which leaders make decision in the group and
influence the group members.
Organization power: Leaders in particular functions or divisions can take advantage of other
sources of power to enhance their individual power. A division or function becomes powerful when
the tasks that it performs give it the ability to control the behavior of other divisions or functions, to
make them depend on it, and thereby increase its share of organizational resources. The power of a
function or division also stems from its importance, or centrality, to the organization. (a. How
central it is to the organization's operations and the degree to which it lies at the center of
information flows. (b. These functions or divisions have access to a lot of information, which gives
them power.
Coalition power: Those "out of power" and seeking to be "in" will first try to increase their power
individually. If ineffective, the alternative is to form a coalition--an informal group bound together
by the active pursuit of a single issue. Predictions about Coalition Formation. First, coalitions in
organizations often seek to maximize their size. Another prediction relates to the degree of
interdependence within the organization. Finally, coalition formation will be influenced by the
actual tasks that workers do.
Responses to the Use of Power
Responses of the use of power can be divided into three different behaviors. If positional power is used
appropriately the response of followers will be compliance. While excessive power use can create
resistance behavior. In case some one is using personal power the response is always commitment of
followers. Same can be understood from the following figure.
The more you will move toward excessive or coercive power the more you can experience resistance.
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Leadership & Team Management ­ MGMT 623
VU
Using Power:
Knowing the persons who matter in your sphere of influence
Knowing who holds power
Using power appropriately to build consensus
Using Power Appropriately
Avoidance of power plays
Using Power Ethically: There are some questions that a leader should be asking to him
Does the behavior produce a good outcome for people both inside and outside the organization?
Does the behavior respect the rights of all parties?
Does the behavior treat all parties equitably and fairly?
Three ethical decision criteria are utilitarianism, rights, and justice. The first question you need to
answer addresses self-interest versus organizational goals. Ethical actions are consistent with the
organization's goals.
The second question concerns the rights of other parties. The final question that needs to be addressed
relates to whether or not the political activity conforms to standards of equity and justice.
Unfortunately, the answers to these questions are often argued in ways to make unethical practices
seem ethical. Powerful people can become very good at explaining self-serving behaviors. They can
persuasively argue that unfair actions are really fair and just.
Negative Consequences and Power
Abraham Lincoln once said: "Nearly everyone can stand adversity, but if you want to test a person's
true character, give him power". Historian Lord Acton once said, "Power corrupts, and absolute power
corrupts absolutely."
How do you get power?
Key words:- Management, People, Motivation, Organization, Team, Culture, Influence, Politics etc.
Influencing: The process of affecting other's attitudes and behavior to achieve an objective. Leadership
focuses on the downward influence on their followers. Power does not minimize the importance of
lateral and upward influence patterns.
Types of Influence Tactics:
Rational persuasion
Consultation
Personal appeals
Coalition tactics
Legitimizing tactics
Pressure tactics
Inspirational appeals
Outcomes of Influence
Same way as in case of power, the more you will move toward excessive or coercive influencing tactics
or use of power the more you can experience resistance.
Politics: Activities to acquire, develop, and use power and other resources to obtain desired future
outcomes when there is uncertainty or disagreement about choices. Or "Those 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 and disadvantages within the organization." This definition encompasses key
elements.
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Leadership & Team Management ­ MGMT 623
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Political behavior is outside one's specified job requirements.
It encompasses efforts to influence the goals, criteria, or processes used for decision making.
It includes such varied political behaviors as withholding key information from decision makers,
whistle blowing, spreading rumors, leaking confidential information, etc.
We can also say that Politics is the art of Influencing the Allocation of Scarce Resources. Politics;
Is an interpersonal endeavor
Is a collective activity
Requires analysis and planning
Involves image
The Reality of Politics: Politics is a fact of life in organizations. Organizations are made up of
individuals and groups with different values, goals, and interests. This sets up the potential for conflict
over resources. Resources in organizations are also limited, which often turns potential conflict into real
conflict. Because resources are limited, not everyone's interests can be provided for causing the
conflict.
Gains by one individual or group are often perceived as being at the expense of others.
These forces create a competition.
The most important factor leading to politics within organizations is the realization that most of the
"facts" that are used to allocate the limited resources are open to interpretation.
What is good performance?
What's an adequate improvement?
Most managerial decisions take place in the large and ambiguous middle ground of organizational
life.
Because most decisions have to be made in a climate of ambiguity, people within organizations will
use whatever influence they can to taint the facts to support their goals and interests. These are
activities we call politicking.
It is possible for an organization to be politics free, if all members of that organization hold the
same goals and interests, however, that is not the organization most people work in.
Political Tactics:
Attacking or blaming others
Using information as a political tool
Creating a favorable image (impression management)
Developing a base of support
Praising others (ingratiation)
Forming political coalitions with strong allies
Associating with influential people
Creating obligations (reciprocity)
Organizational Factors Which Contribute to Political Behavior
Role ambiguity
Low trust
Self-serving senior managers
Democratic decision making
Unclear evaluation systems
High performance pressures
Zero-sum allocations
Scarcity of resources
Factors Contributing to Political Behavior
Organizational Factors
Political activity is probably more a function of the organization's  characteristics than of
o
individual difference variables.
When an organization's resources are declining, when the existing pattern of resources is
o
changing, and when there is opportunity for promotions, politics is more likely to surface.
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o  Cultures characterized by low trust, role ambiguity, unclear performance evaluation
systems, zero-sum reward allocation practices, democratic decision making, high pressures
for performance, and self-serving senior managers will create breeding grounds for
politicking.
o  When organizations downsize to improve efficiency, people may engage in political actions
to safeguard what they have.
o  Promotion decisions have consistently been found to be one of the most political in
organizations.
o  The less trust there is within the organization, the higher the level of political behavior and
the more likely it will be illegitimate.
o  Role ambiguity means that the prescribed behaviors of the employee are not clear.
o  There are fewer limits to the scope and functions of the employee's political actions.
o  The greater the role ambiguity, the more one can engage in political activity with little
chance of it being visible.
o  Subjective criteria in the appraisal process
o  Subjective performance criteria create ambiguity.
o  Single outcome measures encourage doing whatever is necessary to "look good."
o  The more time that elapses between an action and its appraisal, the more unlikely that the
employee will be held accountable for his/her political behaviors.
o  The zero-sum approach treats the reward "pie" as fixed so that any gain one person or
group achieves has to come at the expense of another person or group. If I win, you must
lose!
o  This encourages making others look bad and increasing the visibility of what you do.
o  Making organizations less autocratic by asking managers to behave more democratically is
not necessarily embraced by all individual managers.
o  Sharing their power with others runs directly against some managers' desires.
o  The more pressure that employees feel to perform well, the more likely they are to engage
in politicking.
o  If a person perceives that his or her entire career is riding on the next "whatever," there is
motivation to do whatever is necessary to make sure the outcome is favorable.
o  When employees see top management successfully engaging in political behavior, a
climate is created that supports politicking.
Managing Organizational Politics
Reduce System Uncertainty
Reduce Competition
Break Existing Political Fiefdoms
The exercise of power is an essential ingredient of organizational life, so it is important for an
organization to manage organizational politics and harness it to support organizational interests. The
management of organizational politics falls primarily on the CEO/leader.  If the CEO/leader is
perceived of as being weak, other top managers will lobby for their own interests and compete among
themselves for control of resources. To avoid power struggles, an organization must have a strong
CEO who can balance and manipulate the power structure. When there is a balance of power, the
decisions that result from the political process are more likely to favor the long-term interests of the
organization.
Managing Political Behavior:
Maintain open communication
Clarify performance expectations
Use participative management
Encourage cooperation among work groups
Manage scarce resources well
Provide a supportive organizational climate
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Table of Contents:
  1. INTRODUCTION, ORGANIZATION THE STAGE FOR LEADERSHIP:Challenges, Value creation
  2. FOCUSING ON PEOPLE: THE KEY TO SUCCESS:People in the Process, Developing and Sustaining A World-class Workforce
  3. LEADERSHIP:Characteristics of Successful Leader, Why Study Leadership?
  4. LEADERSHIP (CONTD.):Characteristics of Leaders Who Fail, Why Leaders Fail?
  5. MANAGERS VS LEADERS:Characteristics, Effective Leadership, Respect for Diversity
  6. FOLLOWER-SHIP:Importance of Followers, Follower-ship Style
  7. LEADERSHIP PROCESS:Strategies for Cultivating Exemplary Followers, Important Traits of Leaders
  8. LEADERSHIP PROCESS (CONTD.):Qualities of Leaders, Self-Confidence, Integrity
  9. LEADERSHIP THEORIES/ APPROACHES:Personal Characteristics of Leaders, Managerial Grid
  10. CONTINGENCY THEORIES OF LEADERSHIP:The Fiedler Model, Situational Leadership Theory, Path-Goal Theory
  11. TRANSACTIONAL, CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP:Visionary Leadership
  12. THE LEADER AS AN INDIVIDUAL:Personality, Situation, Heredity, Environment
  13. ATTITUDE-PERSONALITY:Job Satisfaction, Work Situation, Self - Monitoring
  14. BIG FIVE MODEL, MYERS BRIGGS TYPE INDICATOR (MBTI):Sub-Categories Defined, Information Gathering
  15. SITUATIONAL FACTORS:Social and psychological climate, Culture of the organization
  16. BECOMING A LEADER! WHAT DOES IT MEAN & HOW DO YOU GET IT?:Mission Statement, Leading oneself
  17. BECOMING A LEADER:Elements of Leadership, CONCEPT OF POWER,
  18. UNDERSTANDING POWER:Sources of Power, Responses to the Use of Power, Managing Political Behavior
  19. LEADERSHIP POWER & INFLUENCE:Positional Power, Being an Effective Leader
  20. LEADERSHIP AND EMPOWERMENT:Power sharing and Empowerment, Share Information
  21. MOTIVATION:Guidelines for Delegating, Human Resource Approach
  22. MOTIVATION AT WORK, MOTIVATION AND LEADERSHIP:What Factors Diminish Motivation in the Workplace
  23. LEADERSHIP COMMUNICATION:Communication & the Four Management Functions
  24. REVIEW-1:Organizational Performance, That is the Role of Management?, Leaders Vs Managers
  25. GROUP & TEAM CONCEPT:Groups versus Teams, Deciding When to Use a Team
  26. TEAM DYNAMICS:Stages of Group Development, Problem-Solving Teams, Benefits of Teams
  27. BUILDING THE TEAM:Leadership success requires, Strategies for Team Building
  28. A TEAM-BASED ORGANIZATION:Basic Steps, Span of Control, Categories of Decisions
  29. DECISION MAKING:Categories of Decisions, The Decision-Making Process
  30. TEAM DECISION MAKING:Team Problem Solving Techniques, Concept of QC
  31. EFFECTIVE TEAM COMMUNICATION:Team/Group Communications
  32. CONFLICT IN TEAM:Sources of Conflict, Scarcity of Resources, Dysfunctional Outcomes
  33. TRAINING/LEARNING OF TEAM:Training Methods, Phases of Learning Cycles
  34. LEARNING ORGANIZATION:A Litmus Test, Work Relations
  35. REWARDING & RECOGNIZING TEAMWORK:Compensating Teams, Individual or Team Rewards?
  36. MANAGING/LEADING VIRTUAL TEAMS:Communications in Virtual Organizations, Virtual Leadership
  37. EFFECTIVE TEAM MEETINGS:Better Meetings, Meeting Roles, Meeting Room Facilities
  38. LEADING TEAM:Team Leadership Structures, Leadership Demands and Duties, Leadership Direction
  39. REVIEW-II:Types of Teams, Characteristics of High Performance Teams, Sources of Conflict
  40. STRATEGIC LEADERSHIP:Strategic Management, Determining Strategic Direction, Developing Human Capital:
  41. LEADING CHANGE:Dynamics of Change, Change Models, Unfreeze
  42. CREATIVE LEADERSHIP:Awaken Your Senses, How Might These Definitions Be Integrated
  43. ETHICS IN LEADERSHIP:Character Traits Reflect Ethics, Manifests Honesty
  44. LOOKING AT THE FUTURE: WHAT COMES NEXT:Benefits of Teams, Ethical Leadership,
  45. TEAMWORK: LEARNING FROM NATURE:Social Behavior, Termites, Learning from Nature