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MGHB02H3 (269)
Anna Nagy (23)
Chapter 12

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Management (MGH)
Anna Nagy

MGTB27 Chapter 12: Power, Politics, and Ethics Power: capacity to influence others who are in a state of dependence The Bases of Individual Power  Legitimate Power o Derived from a person’s position or job in an organization  Reward Power o Derived from the ability to provide positive outcomes and prevent negative outcomes  Coercive Power o Derived from the use of punishment and threat  Referent Power o Derived from being well liked by others  Expert power o Derived from having special information or expertise that is valued by an organization How Do People Obtain Power?  Doing the right things o Extraordinary activities  Excellent performance in unusual or non-routine activities o Visible activities  Identifying visible activities and publicizing them o Relevant activities  Extraordinary, visible activities might generate consideration influence  Cultivating the right people o Outsiders  Able to acquire critical information about business conditions  Operate with little oversight and gain favours over the years o Subordinates  Gain influence if someone can identify with certain up and coming subordinates  Operate with little oversight, led to the ethical lapses o Peers  Ensure future acquisition of power  Avoid contact with peers whose has questionable reputation o Superiors  Mentors or sponsors show in a promising subordinate  Liaisons with key superior  Provide special info and useful intro to other right people Empowerment – Putting Power Where It Is Needed  Empowerment: giving people authority, opportunity, and motivation to take initiative and solve organizational problems  Freedom from bureaucratic barriers and other system problems  Hiring people who will be intrinsically motivated by power and opportunity and aligning extrinsic rewards with successful performance  Empowering lower levels employees critical for services  Fosters job satisfaction and high performance  Where it is needed to make organization effective MGTB27 Influence Tactics – Putting Power to Work  Influence tactics: used to convert power into actual influence over others o Assertiveness o Exchange o Ingratiation o Upward appeal o Rationality o Coalition formation  Coercive power  assertiveness  Referent power  ingratiation  Expert power  rationality  Depends on whom you are trying to influence Who Wants Power?  Power seekers are neurotics  To cover up feelings of inferiority, striving to compensate for childhood deprivation, or substituting power for lack of affection  Managers have high need for power, use power to achieve goals, adopt a participative leadership style, unconcerned with how much others like them  Institutional mangers  for the good of the institution  Personal power managers  for personal gain  Affiliative managers  corned with being liked than exercising power How Subunits Obtain Power  Subunit power: the degree of power held by various organizational subunits (departments)  Strategic contingencies: critical factors affecting organizational effectiveness that are controlled by a key subunit o Scarcity  Resources – budget money, office space, support staff  Able to secure scarce resources o Uncertainty  Financial commitments, long range plans, tomorrow’s operation  Most capable of coping with uncertainty will acquire power o Centrality  Work flow acquire more power than peripheral activities  Crucial impact on the quantity/ quality of product/ service  Impact is immediate o Substitutability  Specialty performance can’t be done inside or outside the organization  Jobs are scarce, power wanes Using and Abusing Power The Basics of Organizational Politics  Organizational politics: pursuits of self-interest in an organization, whether or not this self-interest corresponds to organizational goals o self conscious and intentional o individual or subunit activities o beneficial outcomes for the organization achieved by questionable tactics Influence Ends Influence Means Organizationally Sanctioned Not Sanctioned by Organization Organizationally Sanctioned Organizationally dysfunctional Non-political Job Behaviour political behaviour Not Sanctioned by Organization Political behaviour potentially Organizationally dysfunctional
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