Chapter 12 NOTES.pdf

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Business Administration
Business Administration 3301K

Chapter  12-­‐  Power,  Politics  and  Ethics   -­‐ Power:  The  capacity  to  influence  others  who  are  in  a  state  of  dependence   o Not  always  perceived  or  exercised   o Does  not  imply  poor  relationship  exists   o Can  flow  in  any  direction     -­‐ Bases  of  Individual  Power   -­‐ Legitimate  Power:  Power  derived  from  a  person’s  position  or  job.   o Formal  authority     o Extremes  are  military  and  Universities   o People  socialized  to  accept  it   o Employees  cite  is  as  reason  for  following  directives,  even  across  cultures   -­‐ Reward  Power:  Power  derived  from  the  ability  to  provide  positive  outcomes  and   prevent  negative  outcomes.   o Any  member  can  achieve  with  praise,  compliments  and  flattery   -­‐ Coercive  Power:  Power  derived  from  the  use  of  threat  or  punishment   o Lower  level,  use  work-­‐to-­‐rule   o Generally  ineffective  and  promotes  resistance   -­‐ Referent  Power:  Derived  from  being  well  liked.   o Especially  potent  as  people  indentify  with  power  holder  and  can  be  used  by   anyone  in  the  organization.     -­‐ Expert  Power:  Having  special  information  or  expertise  that  is  valued  (secretarie s)   o Most  consistently  associated  with  employee  effectiveness   o Women  managers  perceived  to  have  more  than  male  ones.       -­‐ How  do  People  Obtain  Power   -­‐ Doing  the  right  things   o Extraordinary  activities:   Excellent  performance  in  unusual  or  non  routine   activities   o Visible  Activities:  People  who  have  interest  in  power  are  good  at   indentifying  visible  activities  and  publicizing  them.     o Relevant  Activities:  If  irrelevant,  wont  add  influence   -­‐ Cultivating  the  right  people   o Outsiders:  Establishing  good  relationships  with  key  people  outside  ones   organization  can  lead  to  increased  power  within  the  organization   o Subordinates:  Closely  identify  with  up  and  coming  people.  Can  show  he  is   backed  by  a  cohesive  team   o Peers:  Good  relations  with  peers  is  mainly  a  means  of  ensuring  that  not hing   gets  in  the  way  of  one’s  future  acquisition  of  power.     o Superiors:  Liaisons  with  key  superiors  probably  represents  the  best  way  of   obtaining  power  through  cultivating  others.    Mentors  can  introduce  the  right   information  and  people.         -­‐ Empowerment   -­‐ Putting  power  where  needed   o Empowerment:  giving  the  authority,  opportunity  and  motivation  to  take   initiative  and  solve  organizational  problems   § Authority-­‐  legitimate  power   § Opportunity-­‐  freedom  from  barriers  and  other  system  problems   § Motivation  –  hiring  people  who  will  be  intrinsically  motivated  by   power  and  opportunity  and  aligning  extrinsic  rewards  with  success.     o People  who  are  empowered  have  a  strong  sense  of  self  efficacy   o Empowerment  fosters  job  satisfaction  and  high  performance.       -­‐ Influence  Tactics   -­‐ Tactics  that  are  used  to  convert  power  into  actual  influence  over  others   o Assertiveness  –  nagging,  ordering,  deadlines,  confronting     o Ingratiation-­‐  using  flattery  and  acting  friendly  and  polite   o Rationality-­‐  Logic,  reason,  planning  and  compromise   o Exchange-­‐  Doing  favors  or  offering  trades   o Upward  appeal  –  formal  and  informal  appeals  for  interventions   o Coalition  formation-­‐  Seeking  united  support  from  other  members.     -­‐ Someone  with  coercive  power  may  gravitate  towards  assertiveness   -­‐ Referent  power  towards  ingratiation     -­‐ Expert  power  try  rationality   -­‐ Subordinates  recipients  of  assertiveness   -­‐ Exchange,  upward  appeal  and  ingratiation  are  favored  for  influencing  both  peers   and  subordinates   -­‐ Men,  rationality  was  associated  with  better  performance  evaluations,  earning  more   money,  less  stress   -­‐ “Shotgun  style”  high  on  all  tactics,  with  emphasis  on  assertiveness  and  exchange  is   ineffective       -­‐ Who  Wants  Power   o Power  seekers  are  neurotics  who  are  covering  up  feelings  of  insecurity  or   inferiority,  striving  to  compensate  for  childhood  deprivat ion  or  substituting   power  for  lack  of  affection     § Feel  week  and  resort  to  coercive  power  to  compensate   § People  high  in  n  Pow  usually  conform  with  stereotype     § Rude,  sexually  exploitative,  abuse  alcohol  and  show  concern  with   status  symbols.     o McClelland  argues,  most  effective  managers  have;   § High  n  Pow   § Use  power  to  achieve  organization  goals   § Participative  or  coaching  style   § Unconcerned  with  if  others  like  them       -­‐ How  Subunits  Obtain  Power   -­‐ Subunit  power:  The  degree  of  power  held  by  various  organizational  subunits   such   as  departments   o Strategic  Contingencies:  Critical  factors  affecting  organizational   effectiveness  that  are  controlled  by  a  key  subunit   § Scarcity-­‐  Resources  are  scarce  (cutbacks)   • Acquire  power  when  they  are  able  to  secure  scarce  resources   that  are  important  to  the  organization  as  a  whole   § Uncertainty-­‐  Subunits  most  capable  of  dealing  with  uncertainty  will   acquire  power.  (Shifts  frequently)   § Centrality-­‐  Most  central  to  the  workflow.  May  influence  other   subunits  (finance)  Critical  impact  on  key  product  or  serv ice.  More   central  makes  impact  more  immediate   § Substitutability-­‐  If  staff  can  not  be  replaced,  they  acquire   substantial  power   • Crucial  factor  labor  market -­‐  If  constant,  subunits  highly   trained  in  technical  areas  becomes  less  substitutable  than   those  with  minimal  technical  expertise   • If  it  can  be  contracted  out,  power  is  reduced.     -­‐ Using  &  Abusing  Power   -­‐ Organizational  Politics:   The  pursuit  of  self-­‐interest  in  an  organization,  whether  or   not  this  self-­‐interest  corresponds  to  the  organization  goals.     o Political  power  is  self-­‐conscious  and  intentional     o Can  be  beneficial  through  questionable  tactics.     o 1)  Sanctioned  means/  Sanctioned  Ends   o 2)  Sanctioned  means/  Non  Sanctioned  Ends   § Assigns  nurse  benefit  to  allow  stealing  of  inventory   o 3)  Non  Sanctioned  means/Sanctioned   Ends   § Bribery   o 4)  Non  Sanctioned  means/  Non  Sanctioned  End
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