BUAD309 Lecture 3: Test #3

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Business Administration
Mary C Kernan

Power & Politics Lecture #1: The Bases of Power\ What is Power? • Power- A’s capacity to influence the behavior of B, so that B acts in accordance with A’s wishes o Power may exist but not be used • Dependence- most important aspect of power o A person can have power over you only if he or she controls something you desire Leadership and Power • Leaders use power as a means of attaining group goals o Goal compatibility between leader and led ▪ Power only requires dependence o Leadership focuses on the downward influence on one’s followers ▪ Power may be lateral and upward as well o Leadership research emphasized style ▪ How supportive or directive should the leader be? Bases of Power • Formal Power o Legitimate Power- managerial power in hierarchy o Reward Power- provide promotions, pay raises, etc.; can also be informal o Coercive Power- forcing people into doing something; can also be informal • Personal Power o Expert Power- specialized knowledge or info that one becomes known for o Referent Power- being an exemplar and holding values and respected, such that others will do what the referent powered person request Which Bases of Power Are Most Effective? • Personal Sources o Both expert and referent power are positively related employee’s satisfaction with supervision, their organizational commitment, and their performance o Reward and legitimate power seem to be unrelated to these outcomes • Coercive power usually backfires Dependence in Power Relationships • The General Dependency Postulate o When you possess anything that others require but that you alone control, you make them dependent upon you and, therefore, you gain power over them o Dependence, then, is inversely proportional to the alternative sources of supply What Creates Dependence? • Importance- ability to absorb uncertainty; Ex-marketing • Scarcity • Nonsubstitutability Lecture #2: Influence Tactics Nine Influence Tactics • Legitimacy – based on hierarchical position • Rational Persuasion – using logic to try to influence someone • Inspirational Appeals – more emotional appeals that target needs, aspirations, etc. • Consultation – involvement in decision making • Exchange – providing reward or benefit in exchange of giving someone power • Personal Appeals – based on loyalty and friendship • Ingratiating – giving praise, flattering making another person feel positively towards us • Pressure – making demands or threats of what negative things might happen if the individual doesn’t accept the act of power being given (coercive) • Coalitions – getting help from others to influence Influence Tactics and their Contingencies • Some tactics are more effective than others o Rational persuasion, inspirational appeals, and consultation are most effective when the audience is highly interested in the outcomes o Pressure tends to backfire o Both ingratiation and legitimacy can lessen the negative reactions from appearing to “dictate” outcomes • People in different countries prefer different power tactics o Individualistic countries see power in personalized terms and as a legitimate means of advancing their personal ends o Collective countries see power in social terms and as a legitimate means of helping others • People differ in terms of their political skill – their ability to influence others to enhance their own objectives o The politically skilled are most effective users of all influence tactics • Cultures within organizations differ markedly: some are warm, relaxed, and supportive’ others are formal and conservative o People who fit the culture of the organization to obtain more influence Does Power Corrupt? • Power can lead people to place their own interest ahead of others o Powerful people react, especially negatively, to any threats to their competence o Those most likely to abuse power are those who are low in status and gain power • Power can lead to overconfident decision making • Power led to self-interested behavior for those with weak moral identities • Power led to enhanced moral awareness for those with strong moral identities Sexual Harassment and Abuse of Power • Sexual harassment – any unwanted activity of sexual nature that affects an individual’s employment and creates a hostile work environment • 25-40% of all individual’s report being sexually harassed • Sexual harassment is wrong o Costly to employers o Negative impact on work environment • Managers have a responsibility to protect their employees from a hostile work environment, but they also need to protect themselves o Managers may be unaware of sexual harassment, but being unaware does not protect them or their organization o If investigators believe a manager could have known about the harassment, both the manager and the company can be held liable Lecture #3: Organizational Politics Political Behavior • Political behavior – activities not required as part of one’s formal role in the organization, attempt to influence the distribution of advantages and disadvantages within the organization o Outside of one’s specified job requirement o Encompasses efforts to influence decision making o Includes such behaviors as joining coalitions, exchanging favors, withholding or leaking info; whistle blowing • Factors that influence political behavior o Individual: high self-monitors, internal locus of control, high Mach personality, organizational investment, perceived job alternatives, and expectations of success o Organizational: reallocation of resources, promotion opportunities, low trust, role ambiguity, unclear performance evaluation system, zero-sum reward practices, democratic decision making, high performance pressures, self-serving senior managers o Political behavior low to high o Favorable outcomes: rewards and averted punishments Responses to Political Behavior • Organizational politics may threaten employees o Decreased job satisfaction o Increase anxiety and stress o Increased turnover o Reduced performance The Ethics of Behaving Politically • Questions to consider: o What is the utility of engaging in politicking? o How does the utility of engaging in the political behavior balance out any harm (or potential harm) it will do to others? o Does the political activity conform to standards of equity and justice? • Immoral people can justify almost any behavior • Recognize the ability of power to corrupt Impression Management • Impression Management (IM) – process by which individuals attempt to control how others view them o Mostly high self-motivation o Impressions people convey are not necessarily false – they might truly believe them o Intentional misrepresentation may have high costs • Studies show the effectiveness of IM depends on the situation, such as job interviews and performance evaluations • In general, people do not like to feel manipulated by others, so use IM techniques with caution Political Map • Create a political map of your job to determine who has the most influence on decision making and who can help in your current position to advance • Be aware of your position in the political environment *Power and politics are realities of organizational life *You will be more effective as an employee & manager if you learn how power works in organizations Organizational Structure & Design Lecture #1: Elements of Organizational Structure Organizing • Function of Management • Process of arranging tasks, people, and other resources to work together to accomplish a goal • Getting the right things to the right places at the right time Organizational Structure • System of tasks, workflows, reporting relationships, and communication channels that link together diverse individuals and groups • Formal arrangement of jobs within an organization • Organization chart Work Specialization • Work Specialization – division of labor into separate activities o Vertical – we achieve a hierarchy, that helps to complete tasks o Horizontal – representatives of different tasks, many people doing different task, but on the same level o Repetition of work – tasks are repetitive, people are trained for specific tasks o Training for specialization – can bring greater efficiency and productivity o Increasing efficiency through invention o Get to a point where there a diseconomies b/c people become alienated for being too specialized Formalization • Formalization – degree to which jobs within the organization are standardized o A highly formalized job gives the job incumbent a minimum amount of discretion o The greater the standardization, the less input the employee has into how the job is done o Low formalization – job behaviors are relatively non-programmed, and employees have a great deal of freedom to exercise discretion in their work Departmentalization • Departmentalization – grouping jobs together so common tasks can be coordinated o By functions performed o By type of product or service o By geography or territory o By process differences o By type of customer Chain of Command • Chain of Command – an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom • Less relevant today because of technology and empowerment • Two complementary concepts: o Authority – someone in hierarchy has to influence others o Unity of command – each person has a specific manager to whom they report Span of Control • Refers to how many individuals report to a manager o Fewer people in span of control, the more levels in the hierarchy Centralization and Decentralization • Centralization – degree to which decision-making is concentrated at a single point at the top of the organization • Advantages of a decentralized organization: o Can act more quickly to solve problems o More people provide input into decision o Employees are less likely to feel alienated from those who make decisions that affect their work lives Lecture #2: Organizational Design Simple Structure • Simple Structure – most widely practiced in small businesses in which the manager and the owner are on and the same o Strengths: ▪ Simple, fast, and flexible ▪ Inexpensive to maintain ▪ Accountability is clear o Weaknesses: ▪ Difficult to maintain in anything other than small organizations ▪ Risky – everything depends on one person Functional Structure • Grouping of jobs by specialty area • Example: Plant manager has managers for engineering, agriculture, etc. Bureaucracy • Bureaucracy – characterized by standardization • Highly routine operating tasks o Very formalized rules and regulations o Tasks grouped into functional department o Centralized authority o Narrow spans of control o Decision making that follows the chain of command o Strengths: ▪ Ability to perform standardized activities in a highly efficient manner o Weaknesses: ▪ Subunit conflicts ▪ Unit goals dominate ▪ Obsessive behavior ▪ Covering weak management • Only efficient as long as employees confront familiar problems with programmed decision rules Customer Departmentalization • Grouped by customer • Example; retail Matrix Organization • Matrix structure – combines two forms of departmentalization….functional and product o the strength of functional is putting specialists together o product departmentalization facilitates coordination ▪ provides clear responsibility for all activities related to a product, but with duplication of activities and costs o More than one boss, can be complex structure o Extremely large organizations use this structure Lecture #3: New Design Options Virtual Organization • Typically a small, core organization that outsources major business functions o Also called modular or network organization because they depend heavily on info tech o Highly centralized, with little or no departmentalization • Example: o Core – Executive group o Outsources –ad agency, independent r&d consulting firm, factories in South Korea, and commissioned sales reps Boundaryless Organizations • Seeks to eliminate the chain of command, has limitless spans of control, and replaces departments with empowered teams o Uses: ▪ Cross-hierarchical teams ▪ Participative decision making practices ▪ 360-degree performance appraisals • Based structure discussed in text are good examples o Lattice, network • Functional departments create horizontal boundaries • Replace these with cross functional teams organized around processes • Boundaryless organizations break down geographic and cultural barriers o Strategic alliances help blur cultural differences o Telecommuting blurs organizational boundaries Lean Organization • New organizational forms – improve agility by creating a lean, focused, and flexible organization • Downsizing – systematic effort to make an organization leaner by selling off business units, closing locations, or recruiting staff • Strategies for reducing negative impacts of downsizing o Investment in high involvement work practices o Communicate with employees early o Employee participation in the process o Severance assistance – pay, health care, job search Lecture #4: Determinants of Organization Structure Mechanistic Model and Organic Model • Mechanistic – older, describes bureaucracy, functional design o High specialization o Rigid departmentalization o Clear chain of command o Narrow spans of control o Centralization o High formalization • Organic – modern, suitable to complex environments and coordi
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