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Chapter 4
Influencing: Power, Politics, Networking, andNegotiation
Chapter 4 Learning Outcomes
• Explain the differences between position power and personal power.
• Discuss the differences among legitimate, reward, coercive, and referent g gpower.
• Discuss how power and politics are related.
• Describe how money and politics have a similar use.
• List and explain the steps in the networking process.
• List the steps in the negotiation process.
• Explain the relationships among negotiation and conflict, influencing tactics power and politicstactics, power, and politics.
• Define the key terms listed at the end of the chapter.
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Leadership and Influence
• Leadership
– Is the “influencing” process of leaders and followers to achieve organizational objectives through change
• Influencing
– Is the process of affecting others’ attitudes and behavior in order to achieve an objective
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Influence
• Is required to:
– Gain power
– Play organizational politics
– Network
– Negotiate
– Get what you wantGet what you want
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Power
• Is the leader’s potential influence over f llfollowers
• Often does not have to be used to influence followers
• Used to get people to do what they otherwise would not dootherwise would not do
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Power (cont.)
• Can be seen as negative and manipulative
• Power within organizations should be viewed in a positive sense
• Without power, organizational objectives could not be achieved
• Required for leadership• Required for leadership
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Sources of Power
Position
Personal
Derived fromtop management
Derived from the
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Personal followers basedon leader’s behavior
Position Power
• Is derived from top management
• Is delegated down the chain of command
• Results from holding a management position
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Personal Power
• Is derived from the followers
• Is based on the leader’s behavior
• Followers can have personal power over leaders
• A manager should have both personal power and position powerand position power
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Influencing Tactics
Rationalpersuasion
Inspirationalappeal
Pressure Consultation
Legitimization IngratiationInfluencingInfluencing
TacticsTactics
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Coalitions Personalappeal
Exchange
Source: Adapted from J. French and B. H. Raven. 1959. “The Bases of Social Power.” In Studies of Social Power, D. Cartwright, ed. Ann Arbor, MI: Institute for Social Research
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Types of Power
• Legitimate power
– Is based on the user’s position power, given by the organization
– Employees agree to comply with management authority in return for the benefits of membership
– Most day‐to‐day manager–employee interactions are based on legitimate power
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Types of Power (cont.)
• To increase legitimate power:– Get management experienceGet management experience– Work to gain the perception of power– Exercise your authority regularly– Use rational persuasion
– Explain the need for the objective– Explain how others will benefit– Provide evidence that the objective can be metj– Explain potential problems and their handling– Explain why your plan is better than others
– Back up your authority with rewards and punishment
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Types of Power (cont.)
• Reward power
– Is based on the user’s ability to influence others with something of value to them
– Impacts performance expectations and achievement
– A leader’s power is strong or weak based on his or her ability to reward and punish
– Uses the exchange influence tactic
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Types of Power (cont.)
• To increase reward power:
– Have control over employee evaluations, raises, promotions, etc.
– Find out what others value, and use it to reward them
– Let people know you control rewards, and state your criteria for receiving them
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Types of Power (cont.)
• Coercive powerI l i h t d ithh ldi f d– Involves punishment and withholding of rewards to influence employee compliance
– Uses the pressure influencing tactic
– Often used by peers to enforce norms
– Used to maintain discipline and enforce rules
Without it employees may ignore the leader– Without it, employees may ignore the leader
– Overuse undermines the leader’s authority and creates hostile opposition
– Has generally been declining as an influence technique
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Types of Power (cont.)
• To increase coercive power:
– Gain authority to use punishment and withhold rewards
– Make sure employees know the rules and penalties
– Remain calm and encourage improvement
– Do not make rash threats
– Do not use coercion to manipulate others or gain personal benefits
– Be persistent, set deadlines, and check progress often
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Types of Power (cont.)
• Referent powerI b d th ’ l l ti hi– Is based on the user’s personal relationships with others
– Uses the personal appeals and inspirational appeals influencing tactics
– Stem primarily from friendship, or the employee’s attractiveness to the person using p y p gpower
– Being liked or the desire to be liked gives referent power
– Is appropriate for people with weak, or no, position power, such as with peers 17
Types of Power (cont.)
• To increase referent power:
– Develop people skills
– Remember that not only managers have referent power
– Work at having good relationships with managers, peers, and subordinates
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Types of Power (cont.)
• Expert power
– Is based on the user’s skill and knowledge
– Makes others dependent on the person with the power
– Can be a factor of personal power
– Can lead to promotion into managementp g
– People respect experts
– Uses rational persuasion
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Types of Power (cont.)
• To increase expert power:Take training and educational programs– Take training and educational programs
– Attend trade or professional association meetings and programs– Read professional and trade journals
– Get published in professional journals
– Keep up with new technology
– Project a positive self‐concept
– Let people know about your expertise to develop a reputation– Display diplomas, licenses, publications, and awards
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Types of Power (cont.)
• Information power
– Is based on the user’s data desired by others
– Distortion of data can promote position
– Employees provide information to managers, which can also be distorted
– Conveying information is part of most y g pmanagers’ jobs
– Uses rational persuasion and inspirational appeals
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Types of Power (cont.)
• To increase information power:
– Have information flow through you
– Know what is going on in the organization
– Develop and use a network of information sources
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Types of Power (cont.)
• Connection powerI b d th ’ l ti hi ith– Is based on the user’s relationship with influential people
– Is a form of politics
– Contacts or friends can influence persons you deal with
– If people know you are friendly with powerfulIf people know you are friendly with powerful people, they will tend to gain the perception that you have power as well
– Can be enhanced using the coalition influencing tactic
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Types of Power (cont.)
• To increase connection power:E d t k f t t ith– Expand your network of contacts with important managers who have power
– Join the “in crowd” and the “right” associations and clubs
– Follow the guidelines for using the coalition influencing tacticg
– Get people to know your name– Gain all the publicity you can
– Have your accomplishments known by people in power by sending notices
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Acquiring and Losing Power
• Power can change over time
• Personal power can be easily gained or lost• Personal power can be easily gained or lost
• Abuse of power will result in loss of power
• Social exchange theory explains how power is gained and lost as reciprocal influence processes occur over time between leaders and followers
• Social interaction is an exchange of benefits or favors
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Politics
• Is the process of gaining and using power
• Managers use their existing position power and politics to increase their power
• Is a reality of organizational life
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Politics Is a Medium of Exchange
• Politics has a negative connotation due to th h b liti lthose who abuse political power
• It is a medium of exchange
• Like money, political power is neither good or bad; it is its use that determines this
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Common Organizational Political Behaviors
CommonCommonOrganizationalOrganizational
PoliticalPoliticalB h iB h i
Reciprocity
Networking
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Coalitions
BehaviorsBehaviors
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Networking
• Is the process of developing relationships for th f i li i d liti kithe purpose of socializing and politicking
• Contributes most to successful management advancement; more than the other three activity categories of managers:
– Traditional managementTraditional management
– Communication
– Human resource management
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Reciprocity
• Involves creating obligations and developing lli d i th t li halliances, and using them to accomplish objectives
• Uses the exchange influence tactic
• Doing something for someone creates a debt to be collected at a future timeto be collected at a future time
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Building Coalitions
• Uses reciprocity and networking
• Is a political influence tactic
• Co‐optation
– Getting a person whose support is needed to join a coalition
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Guidelines for Developing Political Skills
Learn the organizational Reciprocity Coalitions
Learn the organizational culture and power players
Develop good working relationships,especially with your manager
Be a loyal, honest team player
Gain recognition
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Networking
Gain recognition
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Learn the Organizational Culture and Power Players
• Develop connection power through politicking
• Learn the cultural shared values and beliefs
• Learn how politics operate within the organization
• Learn who has power and what makes them tick
• Tailor presentations of ideas to fit the power player’s needs
• Network with power players
• Do favors for power players
• Develop coalitions with key players
• Select a mentor who is good at politics
• Observe those who are good at politics and copy their behavior
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Develop Good Working Relationships, Especially with Your Manager
• Learn to share goals and priorities with your manager
• Make or beat all deadlines• Make or beat all deadlines
• Ask your manager for advice
• Never let your manager be embarrassed or surprised in public because of your actions
• Avoid showing up your manager in public
• Include your manager in your network and coalitions
• Do favors for your manager
• Use the ingratiation tactic with everyone
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Be a Loyal, Honest Team Player
• Ethical behavior is important
• Do not backstab or gossip
• Earn others’ respect, confidence, and trust
• Develop a support group or team
• Remember, the trend is toward teamwork
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Gain Recognition
• Find ways to let the power players know that d i d j byou are doing a good job
• Let higher‐ups know about your expertise and contributions through your network
• Serve on committees and try to become an officerofficer
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Networking
• Is more successful than all other methods combined for finding employmentcombined for finding employment
• Is also used for:– Developing a business
– Job satisfaction
– Enhanced performance
– SalarySalary
– Power
– Promotions
• Is a learned skill that everyone struggles with, especially women
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The Networking Process
• Perform a self‐assessment and set goals
• Create your one‐minute self‐sell
• Develop your network
• Conduct networking interviews
• Maintain your network
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Perform a Self‐Assessment and Set Goals
• List and prioritize your talents and the h t i ti f id l j bcharacteristics of an ideal new career or job
• Translate your talents into accomplishments
• Tie your accomplishments to the job interview
• Set networking goals• Set networking goals
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Create Your One‐Minute Self‐Sell
• History of your career– Include:Include:
– Your most recent career or school history
– A description of the type of work or courses you have taken
• Plans for the future– State:
– The target career you are seeking
– The industry you prefer
– A specific function or role
• Questions to stimulate conversation– Encourage two‐way communication
• Write your script and practice your speech
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Develop Your Network
• Begin with who you know
• Expand to people you don’t know
– Referrals
– Volunteer work
• Develop your ability to remember peoples’ namesnames
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Conduct Networking Interviews
• Use your network list of people to set up a t ki i t i t t lnetworking interview to meet your goal
• May take many interviews to meet a goal
• Usually a phone call or 20‐minute face‐to‐face meeting
• You are the interviewer• You are the interviewer
– Be prepared
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Conduct Networking Interviews (cont.)
• Establish rapport
D li i t lf ll• Deliver your one‐minute self‐sell
• Ask prepared questions
• Get additional contacts for your network
• Ask your contacts how you might help them
• Follow upFollow up– Send thank‐you notes (FEW DO!)
– Give status reports
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Negotiation
• Is a process in which two or more parties are i fli t ki t h tin conflict working to reach an agreement
• Is a core competency in life
• Common in:
– Job searches
Labor relations– Labor relations
– Sales
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Negotiating
• Negotiation is often a zero‐sum game; one t ’ i i th th t ’ lparty’s gain is the other party’s loss
• Sell your ideas to convince the other party to give you what you want
• Try to work toward a win‐win result
• All parties should believe they got a good• All parties should believe they got a good deal
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The Negotiation Process
PlanPlanPlanPlan AgreementAgreementAgreementAgreementPlanPlanPlanPlan
PostponementPostponementPostponementPostponement
Close the deal.Close the deal.Close the deal.Close the deal.
No AgreementNo AgreementFind out why for Find out why for future future
No AgreementNo AgreementFind out why for Find out why for future future
NegotiationsNegotiationsNegotiationsNegotiations
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pppp future future negotiations.negotiations.future future negotiations.negotiations.
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The Negotiation Process: Plan
• Research the other party(ies)
• Set objectives
– Specific lower limit
– Target objective
– Opening objective
• Develop options and trade offs• Develop options and trade‐offs
• Be prepared to deal with questions and objections (especially unstated ones)
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The Negotiation Process: Negotiations
• Develop rapport
• Focus on obstacles, not the person
• Let the other party make the first offer
• Listen
• Ask questions
• Don’t give in too quickly
• Ask for something in return
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The Negotiation Process: Postponement
• When you are not getting what you want, you t t tmay try to create urgency
• When the other party becomes resistant, remember that a hard sell will not work
• If the other party is creating urgency, be sure it is really urgentit is really urgent
– Don’t be pressured into making a deal you may regret later
• If you do want to postpone, give the other party a specific time you will get back to them49
The Negotiation Process: Agreement
• Get it in writing
• Quit selling
• Start working on a personal relationship
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The Negotiation Process: No Agreement
• Accept that agreement isn’t possible
• Learn from the failure
• Analyze and plan for the next time
• Ask the other party what you did right and wrong
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Ethics and Influencing
• It pays to be ethical with influencing tactics
• Power is only unethical when used to promote your self‐interest at the expense of others
• Used ethically, power helps to meet organizational objectivesorganizational objectives
• It is tempting to be unethical but the price is often high
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Ethics and Influencing (cont.)
• Confront others for unethical political b h ibehavior
• Report unethical behavior in others
• Build networks based on mutually beneficial relationships
• Tell the truth in negotiations and demand the• Tell the truth in negotiations and demand the truth from the other party
• Use the stakeholders’ approach to ethics and create a win‐win situation
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