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Lecture 9

MGCR 222 Lecture 9: Social Hierarchy
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5 Pages
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Fall 2015
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Department
Management Core
Course Code
MGCR 222
Professor
Jean- Nicolas Reyt
Lecture
9

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MGCR222Lecture9SocialHierarchy
1. Status
Respect, prestige, admiration granted by others
Influence is voluntary
Ex. You do what this person says because you respect/value them
Status is ascribed by others
a. Sources of Influence
Personal or "informal" (status)
Relationships
Reputation & track record
Expertise and knowledge
Personal attributes
Why is power/status important?
Gives you influence over others --> need influence to get things done
2. Power
Control over resources valued by others
Influences is/can be coercive
Ex. Do what this person says bc you want/need resources they have, formal
authority etc
a. Sources of influence
Positional or 'formal' (power)
Level in hierarchy
Control over rewards, resources, info
Centrality, relevance, visibility of positions
b. Reactions to feeling high power
More action oriented and less inhibited
More confident and optimistic
But also more risk taking (illusion of control)
More focused on self than others
Less influenced by situational/social cues
c. Reactions to feeling low power
Behave in more authoritarian ways
Place more restrictions on those working for them
Hold back talented employees (because threatening to one's own position)
Less liked by employees and their bosses
d. Five bases of power
By French and Raven (1959)
i. Referent power
Based on followers' identification and liking for the leader
Ex. A teacher who is adored by students
ii. Expert power
Based on followers' perceptions of the leader's' competence
Ex. Tour guide who is knowledgeable
iii. Legitimate power
Associated w having status or formal job authority
Ex. A judge who administers sentences
iv. Reward power
Derived from having the capacity to provide rewards to others
Ex. A supervisor who gives rewards to employees who work hard
v. Coercive power
Derived from having the capacity to penalize or punish others
Ex. A coach who sits players on bench for being late to practice
3. Increasing Influence without Power/Status
a. Reciprocity
People are more likely to comply with a request from someone who has previously
done smthg for them
There is a norm of reciprocity across all cultures
We seem to be hard-wired to feel obliged to pay people back when they do
something for us
Ex. If I hire your daughter at my firm, you have to hire my son at yours
Ex. Mail surveys to doctors and CEO with 1$ enclosed --> dramatically
increases response rate
Reciprocal concessions in negotiation
Concessions are construed as favors
When negotiating, if you can give smthg up first (even if its
meaningfulness to you), other side is more likely to agree to your
request
If you ask someone for something and they say 'yes', it feels like they did you a
favor
If someone asks you for something and you say 'no' and they accept this
response, it feels like they did you a favor
b. Scarcity
Opportunities and resources seem more valuable when they are less available
'while supplies last!'
Exclusivity
People pay more attention to 'secret’ or 'new' info
People want to be part of exclusive clubs or groups
Credit cards, shopper 'status'
Gain vs. Loss Framing
Instead of saying 'If you do X, you will gain Y'; say 'if you don’t do X, you will
lose Y'
Study of cali homeowners: more likely to insulate their homes when
told 'if you don’t insulate, you will lose $X' then told 'if you insulate,
you will save $X
Endowment effect:

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Description
MGCR222 Lecture 9 Social Hierarchy 1.Status Respect, prestige, admiration granted by others Influence is voluntary Ex. You do what this person says because you respectvalue them Status is ascribed by others a.Sources of Influence Personal or informal (status) Relationships Reputation track record Expertise and knowledge Personal attributes Why is powerstatus important? Gives you influence over others > need influence to get things done 2. Power Control over resources valued by others Influences iscan be coercive Ex. Do what this person says bc you wantneed resources they have, formal authority etc a.Sources of influence Positional or formal (power) Level in hierarchy Control over rewards, resources, info Centrality, relevance, visibility of positions b. Reactions to feeling high power More action oriented and less inhibited More confident and optimistic But also more risk taking (illusion of control) More focused on self than others Less influenced by situationalsocial cues c. Reactions to feeling low power Behave in more authoritarian ways Place more restrictions on those working for them Hold back talented employees (because threatening to ones own position) Less liked by employees and their bosses d. Five bases of power By French and Raven (1959) i. Referent power Based on followers identification and liking for the leader Ex. A teacher who is adored by students ii. Expert power Based on followers perceptions of the leaders competence
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