copyright ©2004 by south-western, a division of thomson learning. all rights reserved. 4-1...

4-1Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved.

LEADERSHIP:LEADERSHIP:Theory, Application, Skill Theory, Application, Skill

DevelopmentDevelopment

2d Edition2d EditionRobert N. Lussier Robert N. Lussier

and Christopher F. Achuaand Christopher F. Achua. .

This presentation edited and enhanced byThis presentation edited and enhanced by: : George W. CrawfordGeorge W. Crawford

Asst. Prof. of Mgmt.Asst. Prof. of Mgmt.Clayton College & State UniversityClayton College & State University

Morrow, GA 30260Morrow, GA [email protected]@mail.clayton.edu


Chapter 4Chapter 4Influencing: Influencing:

Power, Politics, Power, Politics, Networking andNetworking and

NegotiationNegotiation


Chapter 4 Chapter 4 Learning OutcomesLearning Outcomes

• Position vs personal powerPosition vs personal power• Differences among legitimate, reward, Differences among legitimate, reward,

coercive, and referent powercoercive, and referent power• Relationship of power and politicsRelationship of power and politics• Similar use of money and politicsSimilar use of money and politics• Steps in networking processSteps in networking process• Steps in negotiation processSteps in negotiation process• Relationship among: negotiation, conflict, Relationship among: negotiation, conflict,

influencing tactics, power, politicsinfluencing tactics, power, politics• How leaders influence others at the How leaders influence others at the

individual level.individual level.


Influencing: Power, Politics, Influencing: Power, Politics, Networking and NegotiationNetworking and Negotiation

• To jump on the top, leader have to To jump on the top, leader have to influence followers to gain power, play influence followers to gain power, play organizational politics, network, negotiate organizational politics, network, negotiate to get what he/she wantto get what he/she want..

• BackBack to our leadership definition: to our leadership definition: “influencing process of leaders and “influencing process of leaders and followers to achieve organizational followers to achieve organizational objectives through change”.objectives through change”.

• Leaders and followers influence each other.Leaders and followers influence each other.• Influencing process is vital and called the Influencing process is vital and called the

essence of leadership.essence of leadership.• Power, politics, and negotiation are all Power, politics, and negotiation are all

ways of influencing others.ways of influencing others.


InfluencingInfluencingThe process The process of affecting of affecting others’ others’ attitudes attitudes and and behavior to behavior to achieve an achieve an objective.objective.


PowerPower• Confusion about influence Confusion about influence

and power than any other and power than any other leadership concepts.leadership concepts.

• Power is about influencing Power is about influencing others. In other words:others. In other words:

“ “ Power is the leader’s potential Power is the leader’s potential influence over followers”.influence over followers”.

The positive use of power, that The positive use of power, that influence others to achieve the influence others to achieve the organizational objectives.organizational objectives.


2 Sources of 2 Sources of PowerPower

PositionPosition

PersonalPersonal

Derived from top Mgt. and is delegated down the chain of command

Derived from thefollower basedon leader’s behavior


PowerPowerPosition Power:Position Power: is derived from top is derived from top

management and it is delegated down the management and it is delegated down the chain of command.chain of command.

Within the organization power should be Within the organization power should be viewed in a positive sense. Without viewed in a positive sense. Without power, managers could not achieve power, managers could not achieve organizational objectives.organizational objectives.

Leadership and power go hand in hand. Leadership and power go hand in hand.

Employees are not influenced without a Employees are not influenced without a reason, and the reason is often the power reason, and the reason is often the power a manager has over them.a manager has over them.

• Managers relay on position power to get Managers relay on position power to get the job done.the job done.


PowerPowerPersonal Power:Personal Power: is is

derived from the follower derived from the follower based on the leader’s based on the leader’s behavior. Charismatic leaders behavior. Charismatic leaders have personal power.have personal power.

• Today’s effective leaders are Today’s effective leaders are relying less on position power relying less on position power and more on personal power.and more on personal power.

• It is best to both personal It is best to both personal and position power.and position power.


7 Types of Power7 Types of Power• French and Raven (1950), identified French and Raven (1950), identified

five types of power (reward, five types of power (reward, coercive, legitimate, expert, and coercive, legitimate, expert, and referent).referent).

• ConnectionConnection (politics) and (politics) and Information Information power have been added to update power have been added to update the important types of power.the important types of power.

• Generally power is given to those Generally power is given to those who get results and have a good who get results and have a good human relations skills.human relations skills.


RationalPersuasion

InspirationalAppeals

Pressure Consultation

Legitimization Ingratiation

Coalitions Personal Appeals

99InfluencingInfluencing

TacticsTactics

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.


Types of PowerTypes of Power• Legal/Legitimate: Legal/Legitimate:

– Comes from appointed/elected position e.g.,Comes from appointed/elected position e.g.,– Leader assign work, coaches decide who Leader assign work, coaches decide who

plays, teacher award grade. plays, teacher award grade. – Most followers grant this to a leaderMost followers grant this to a leader (employee (employee

agree to comply with management autonomy)agree to comply with management autonomy)• Reward:Reward: “based on user ability to influence “based on user ability to influence

others with something of value to them”others with something of value to them”– Control of things valued by followersControl of things valued by followers– Based on exchange relationshipBased on exchange relationship– Reward power affects performance Reward power affects performance

expectation and achievement. (pins, jacket, expectation and achievement. (pins, jacket, hats, badges, employee of month reward)hats, badges, employee of month reward)


Types of PowerTypes of PowerReferent:Referent:

– Based on respect & personal relationshipsBased on respect & personal relationships•Earned respect increases referent power•Being better liked increases referent

power•Being seen as a team player, dedicated,

and effective increase referent power– Can be developed by anyone regardless of Can be developed by anyone regardless of

other types of power or the lack thereofother types of power or the lack thereof– Critical between: Critical between:

•Leaders & followers •Peers•Leaders & their superiors

– Excellent base for a relational or balanced Excellent base for a relational or balanced relational/structural leadership stylerelational/structural leadership style


Types of PowerTypes of Power• Expert:Expert:

– Comes from skill, expertise, Comes from skill, expertise, knowledgeknowledge

– Makes others dependent on the Makes others dependent on the person with the powerperson with the power

– Can be for advice, to fix your Can be for advice, to fix your computer, etc.computer, etc.

• Information/Resource:Information/Resource:– Comes from control of data, Comes from control of data,

information or other needed resourcesinformation or other needed resources•$$$•Equipment•Human Resources•Supplies & Material


Types of PowerTypes of Power• Coercive/Punishment:Coercive/Punishment:

– Ability to punish or withhold Ability to punish or withhold rewards rewards (the fear of lost valued outcomes or (the fear of lost valued outcomes or rewards such as receiving poor performance rewards such as receiving poor performance evaluation)evaluation)

– Often used by peers to enforce Often used by peers to enforce norms norms

• Connection:Connection:– Comes from associating with Comes from associating with

influential peopleinfluential people– PoliticalPolitical– (when you are looking job or (when you are looking job or

promotions, connections can help)promotions, connections can help)


THE SINGLE MOST EFFECTIVE THE SINGLE MOST EFFECTIVE WAY TO ACCUMULATE WAY TO ACCUMULATE

POWER IN AN POWER IN AN ORGANIZATIONORGANIZATION

Regularly provide services, Regularly provide services, favors, and assistance to favors, and assistance to

everyone within the everyone within the organization. The more organization. The more

impossible these acts are impossible these acts are to repay, the greater to repay, the greater

the power gain.the power gain.


PoliticsPolitics•The process The process

of gaining of gaining and using and using powerpower

•Fact of life in Fact of life in organizationorganizationss

•Neither good Neither good or bador bad


Networking

Reciprocity

Coalitions

33CommonCommonPoliticalPolitical

BehaviorsBehaviors


PoliticsPolitics• Networking, Networking, is the process of is the process of

developing relationships for the purpose developing relationships for the purpose of socializing and politicking. (Networking of socializing and politicking. (Networking is important to leader’s career success).is important to leader’s career success).

• Reciprocity,Reciprocity, creating obligations and creating obligations and developing alliances, and using them to developing alliances, and using them to accomplish objectives. accomplish objectives.

(e.g., when people do something for you, (e.g., when people do something for you, you incur obligation that they may expect you incur obligation that they may expect to be repaid. When you do something for to be repaid. When you do something for people, you create a debt that you may be people, you create a debt that you may be able to collect at latter when you need able to collect at latter when you need favor). favor).


PoliticsPolitics•Coalitions: Coalitions: Using coalitions as an Using coalitions as an

influencing tactic is political behavior.influencing tactic is political behavior.• Each party helps the others get what Each party helps the others get what

they want.they want.• Reciprocity and networking are used Reciprocity and networking are used

to achieve ongoing objectives.to achieve ongoing objectives.• Coalitions are developed for achieving Coalitions are developed for achieving

a specific objective.a specific objective.• Apolitical tactic when developing Apolitical tactic when developing

coalitions is to use co-optation. coalitions is to use co-optation. (getting person whose support you (getting person whose support you need)need)


Political Behavior Political Behavior SkillSkill

DevelopmentDevelopmentReciprocity Coalitions

Networking

Learn the Organizational Culture & Power Players

Develop Good Working RelationshipsEspecially with your Manager Be Loyal, Honest Team Player

Gain Recognition


Networking on the Networking on the JobJob•Key to promotion to higher Key to promotion to higher

management management •Requires social skillsRequires social skills•Is about building Is about building professional relationships professional relationships and friendshipsand friendships

•Difficult for womenDifficult for women– (It contribute to the Glass Ceiling). Networking is (It contribute to the Glass Ceiling). Networking is

about building professional relationships and about building professional relationships and friendships, through effective communications.friendships, through effective communications.


Networking to Find a Networking to Find a JobJob

•Most successful approachMost successful approach•2/3 of all jobs2/3 of all jobs

– Word of mouthWord of mouth– Informal referralsInformal referrals

•Results in more new jobs Results in more new jobs than all other methods than all other methods combinedcombined


The Networking The Networking ProcessProcess

• Perform a self-assessment Perform a self-assessment and set goalsand set goals

• Create your one-minute self Create your one-minute self sellsell

• Develop your networkDevelop your network• Conduct networking Conduct networking

interviewsinterviews• Maintain your networkMaintain your network


Perform a Self-Assessment Perform a Self-Assessment and Set Goalsand Set Goals

(clarify the skills, competencies and knowledge)(clarify the skills, competencies and knowledge)Accomplishments: Accomplishments: After completing the self-assessment, After completing the self-assessment,

you are ready to translate your you are ready to translate your talent into accomplishment. (e.g., talent into accomplishment. (e.g., previous job or university is the best previous job or university is the best evidence of your skills).evidence of your skills).

To be an effective net worker, you To be an effective net worker, you

must articulate what you have must articulate what you have accomplished in your past in a way accomplished in your past in a way that is clear, concise, and compelling that is clear, concise, and compelling your resume.your resume.


Perform a Self-Assessment Perform a Self-Assessment and Set Goalsand Set Goals

•Tie accomplishments to Tie accomplishments to the Job Interviewthe Job Interview

((what problem you have solved, or tell what problem you have solved, or tell about yourself)about yourself)

•Set Networking GoalsSet Networking Goals(Need to clearly state the goal. E.g., to get (Need to clearly state the goal. E.g., to get

mentor; to determine the expertise, mentor; to determine the expertise, skills, and requirements needed for X skills, and requirements needed for X position)position)


Create Your Create Your One-Minute Self-One-Minute Self-

SellSell “ “an opening statement used an opening statement used

in networking that quickly in networking that quickly summarizes your history and summarizes your history and career plan and asks a career plan and asks a question”.question”.

• Your message must be Your message must be concise, but it also need to concise, but it also need to be clear and compelling. be clear and compelling.


Create Your Create Your One-Minute Self-SellOne-Minute Self-Sell

• History of your career (start with History of your career (start with your career to date)your career to date)

• Plans for the future (target career Plans for the future (target career are seeking)are seeking)

• Questions to stimulate conversation Questions to stimulate conversation (to encourage two way (to encourage two way communication)communication)

• Write and Practice (write a one Write and Practice (write a one minute self-sell to achieve your minute self-sell to achieve your networking goal from work).networking goal from work).


Develop Your Develop Your NetworkNetwork•Begin with who you knowBegin with who you know

•Expand to people you Expand to people you don’t knowdon’t know– ReferralsReferrals– Volunteer workVolunteer work

•Develop ability to Develop ability to remember peoples’ namesremember peoples’ names


Conduct Conduct Networking Networking InterviewsInterviews•Not job interviewsNot job interviews

•Use network listUse network list•Use many interviews to Use many interviews to

reach networking goalsreach networking goals• Informal or via telephoneInformal or via telephone•You are the interviewerYou are the interviewer

– Be preparedBe prepared


Conducting Conducting InterviewsInterviews• Establish rapportEstablish rapport (brief introduction) (brief introduction)

• Deliver your one-minute self-sell Deliver your one-minute self-sell (summarize your background and direction)(summarize your background and direction)

• Ask prepared questionsAsk prepared questions• Get additional contacts for your Get additional contacts for your

networknetwork• Ask your contacts how you might Ask your contacts how you might

help themhelp them• FollowupFollowup

– Send thank-you notesSend thank-you notes– Give status reportsGive status reports


NEGOTIATIONNEGOTIATION• Two or more parties which Two or more parties which

are in conflict are in conflict (disagreement) working to (disagreement) working to reach an agreementreach an agreement

• Common in:Common in:– Job searches Job searches (accepting a new job (accepting a new job

compensation offer, or getting a raise)compensation offer, or getting a raise)– Labor relations Labor relations (union- collective (union- collective

bargaining)bargaining)– Sales Sales (buying and selling goods and services)(buying and selling goods and services)


NEGOTIATIONNEGOTIATION• Negotiation is often a zero-sum game in Negotiation is often a zero-sum game in

which one party’s gain is the other party which one party’s gain is the other party loss.loss.

• Negotiation is about getting what you Negotiation is about getting what you want, but at the same time it is about want, but at the same time it is about developing ongoing relationships.developing ongoing relationships.

• To get what leader want, leader have to To get what leader want, leader have to sell his/her ideas and convince the other sell his/her ideas and convince the other party to give them what they want.party to give them what they want.

• All parties should believe they got a good All parties should believe they got a good deal.deal.

The following steps in the negotiation The following steps in the negotiation process can help leaders to develop their process can help leaders to develop their negotiation skills.negotiation skills.


Negotiation Negotiation ProcessProcess

PlanPlan

PostponemPostponementent

AgreementAgreementClose the Close the dealdealNo No AgreementAgreement

NegotiationNegotiationss


PLANPLAN• Research the other party (ies), what other Research the other party (ies), what other

party wants, what they will or not to giveup.party wants, what they will or not to giveup.• Set objectivesSet objectives

– Set a Lower limit; Target Objective;Set a Lower limit; Target Objective;– Opening Objectives (objective will be Opening Objectives (objective will be

price; working condition; job security so price; working condition; job security so on)on)

• Develop options & tradeoffs (Quote other Develop options & tradeoffs (Quote other offers and to ask if the other party can beat offers and to ask if the other party can beat them)them)

• Be prepared to deal with questions & Be prepared to deal with questions & objections (especially unstated). Other objections (especially unstated). Other party may want to know why you are selling party may want to know why you are selling something, looking for a job, how the something, looking for a job, how the product or service works, or what are the product or service works, or what are the features and benefits.features and benefits.

• Be Prepared to Answer all questionsBe Prepared to Answer all questions


NEGOTIATIONSNEGOTIATIONS• Develop rapport (relationship) and Develop rapport (relationship) and

focus on obstacles, not the person. focus on obstacles, not the person. • Keep it professional, never personalKeep it professional, never personal• Try to get the other person to make Try to get the other person to make

the first offerthe first offer““Other party may offer you more Other party may offer you more

than your target objective, you than your target objective, you can close to agree)can close to agree)

• Ask questions and Listen (to focus Ask questions and Listen (to focus on meeting the other party’s needs).on meeting the other party’s needs).

• Don’t give in too quickly (ask Don’t give in too quickly (ask something for return. Those who ask something for return. Those who ask for more get more)for more get more)

• Never give something up for freeNever give something up for free


POSTPONEMENTPOSTPONEMENTWhen there doesn’t seem to be any progress, it When there doesn’t seem to be any progress, it

may be wise to postpone the negotiationmay be wise to postpone the negotiation•May be advantageous or May be advantageous or

disadvantageousdisadvantageous•Most interested party Most interested party

usually tries to avoid usually tries to avoid postponementspostponements– May try to create a sense May try to create a sense of urgencyof urgency


AgreementAgreement•Both sides should feel Both sides should feel

good about the good about the agreementagreement

•Get it in writingGet it in writing•Quit sellingQuit selling•Start work on a personal Start work on a personal

relationshiprelationship


DisagreementDisagreement•Accept that agreement Accept that agreement

isn’t possibleisn’t possible•Learn from the failureLearn from the failure•Ask the other party what Ask the other party what

you did right & wrongyou did right & wrong•Analyze and plan for the Analyze and plan for the

next timenext time


Negotiation Negotiation AdageAdage•““If you can’t afford to If you can’t afford to

walk away, or at least walk away, or at least convince the other side convince the other side that you will walk away, that you will walk away, you’ve already lost.”you’ve already lost.”– Convincing others you will walk Convincing others you will walk

away when you can’t is very away when you can’t is very tough.tough.


Discussion Question Discussion Question #1#1• What are the nine influencing What are the nine influencing

tactics?tactics?

• Inspirational Appeal; Inspirational Appeal; Consultation; Ingratiation; Consultation; Ingratiation; Personal Appeals; Exchange; Personal Appeals; Exchange; Coalition; Legitimization; Coalition; Legitimization; Pressure; Rational Persuasion.Pressure; Rational Persuasion.


Discussion Question Discussion Question #2#2• What are the seven types What are the seven types

of power?of power?• Legitimate Legitimate • RewardReward• Coercive Coercive • ConnectionConnection• Information Information • Expert and ReferentExpert and Referent


Discussion Question Discussion Question #3#3

•Which two types of Which two types of power do effective power do effective leaders most leaders most commonly use?commonly use?

•Position and Position and Personal powerPersonal power


Discussion Question Discussion Question #4#4•What is the What is the

similarity and similarity and differences between differences between social exchange social exchange theory and strategic theory and strategic contingencies contingencies theory?theory?



• Social Exchange Theory: explains how power Social Exchange Theory: explains how power is gained and lost as reciprocal influence is gained and lost as reciprocal influence processes occur over time between leaders processes occur over time between leaders and followers in small groups.and followers in small groups.

• Social interaction is an exchange of benefits Social interaction is an exchange of benefits or favors, which include respect, esteem, or favors, which include respect, esteem, affection.affection.

• If leader meets follower expectations, power If leader meets follower expectations, power is acquired and maintained. is acquired and maintained.

• If not, leader loses status and expert power If not, leader loses status and expert power with followers, and they may undermine the with followers, and they may undermine the leader’s legitimate authority as well.leader’s legitimate authority as well.



• Strategic Contingencies Theory: explains Strategic Contingencies Theory: explains how organizational units gain and lose how organizational units gain and lose power over influencing strategic power over influencing strategic decisions for the organizations.decisions for the organizations.

• Power of units depends on three things: Power of units depends on three things: (1) expertise in coping with important (1) expertise in coping with important problems, (2) centrality of the unit within problems, (2) centrality of the unit within the workflow, and (3) the extent to which the workflow, and (3) the extent to which the unit expertise is unique.the unit expertise is unique.

• Strategic Contingencies Theory fail to Strategic Contingencies Theory fail to explain how units sometimes keep their explain how units sometimes keep their power when the units expertise is no power when the units expertise is no longer critical to the organizations.longer critical to the organizations.



•What are three What are three political political behaviors and behaviors and four guidelines four guidelines for developing for developing political skills?political skills?



• Political BehaviorPolitical Behavior• Networking; Reciprocity; CoalitionsNetworking; Reciprocity; Coalitions Guidelines For Developing Guidelines For Developing

Political SkillsPolitical Skills• Learn the Organizational culture and Learn the Organizational culture and

Power PlayersPower Players• Develop Good Working Relationships, Develop Good Working Relationships,

Especially with your ManagerEspecially with your Manager• Be a loyal, Honest Team Player.Be a loyal, Honest Team Player.• Gain RecognitionGain Recognition



•Can Can management management order the end of order the end of power and power and politics in their politics in their organizations?organizations?



•Should people be Should people be judged based on judged based on their social their social skills?skills?


Discussion Question Discussion Question #8#8•Do you believe Do you believe

that networking that networking is really all that is really all that important?important?


Discussion Question Discussion Question #9#9•Do people really Do people really

need a written need a written networking list?networking list?

•Yes, if you want to Yes, if you want to become a leader become a leader within your org-.within your org-.



• You need a written You need a written networking list of people.networking list of people.

• Network list includes past and Network list includes past and present colleagues, present colleagues, professional organization, professional organization, vendors, suppliers, managers, vendors, suppliers, managers, stock broker, accountant etc. stock broker, accountant etc. Expand your list to people you Expand your list to people you know. know.

• More in your text book.More in your text book.


Discussion Question Discussion Question #10#10• How many interview How many interview

questions should you bring questions should you bring to a networking interview?to a networking interview?

• Take many interviews to Take many interviews to meet a goal, such as to get meet a goal, such as to get job. You are the interviewer job. You are the interviewer and need to be prepared and need to be prepared with specific questions to with specific questions to ask the contact regarding ask the contact regarding your targeted career.your targeted career.


Discussion Discussion Question #10Question #10

• Compose a series of questions Compose a series of questions to ask during the interview. to ask during the interview.

• Your questions should vary Your questions should vary depending on your goal, the depending on your goal, the contact, and how they may contact, and how they may help you with job search, the help you with job search, the following question can ask:following question can ask:



• What you think of my What you think of my qualifications for this field?qualifications for this field?

• With your knowledge of the With your knowledge of the industry, what career industry, what career opportunities do see in the opportunities do see in the future?future?

• What advice do you have for What advice do you have for me as I begin my career?me as I begin my career?

• If you were exploring this field, If you were exploring this field, who else would you talk with?who else would you talk with?


Discussion Question Discussion Question #11#11•What type of situation What type of situation

is the goal of is the goal of negotiation?negotiation?

Negotiation is an Negotiation is an important leadership important leadership skill, thus leader skill, thus leader should develop his/her should develop his/her negotiation style.negotiation style.



• Negotiation is appropriate, Negotiation is appropriate, such as when conducting:such as when conducting:

• Management-Union collective Management-Union collective bargaining, buying and selling bargaining, buying and selling goods and services, accepting goods and services, accepting a new job compensation offer, a new job compensation offer, or getting a raise – all or getting a raise – all situation without a fixed price situation without a fixed price or deal.or deal.


Discussion Question Discussion Question #12#12•What are the What are the

steps in planning steps in planning a negotiation?a negotiation?

•Four Steps:Four Steps:



•Research the other party Research the other party (S).(S).

(try to find out what the other parties (try to find out what the other parties want, and what they will and will not want, and what they will and will not willing to give up, before you willing to give up, before you negotiate).negotiate).

• Set Objectives. Set Objectives. (what you can (what you can expect? You have to identify the one expect? You have to identify the one thing you must come away with. Set thing you must come away with. Set lower limit, target and opening lower limit, target and opening objectives).objectives).



• Try to develop options and Try to develop options and trade-offs. trade-offs. (based on your research, (based on your research, what trade-offs do you expect from the what trade-offs do you expect from the other party. Quote other offers and to ask other party. Quote other offers and to ask if the other party can beat them).if the other party can beat them).

• Anticipate Questions and Anticipate Questions and objections, and prepare objections, and prepare answers.answers. (Other party may want to (Other party may want to know why you are selling your product, know why you are selling your product, how it works, or what are the features and how it works, or what are the features and benefits)benefits)



•What are the steps in What are the steps in negotiations?negotiations?

The following steps involved The following steps involved in negotiationsin negotiations

1. Develop rapport and focus 1. Develop rapport and focus on obstacles, not the person.on obstacles, not the person.


Discussion Question Discussion Question #13#132. Let the other party 2. Let the other party

make the first offer make the first offer3. Listen and ask 3. Listen and ask questions to focus on questions to focus on meeting the other meeting the other party’s needs.party’s needs.

4. Don’t be too quick 4. Don’t be too quick to give in, and ask for to give in, and ask for something in return.something in return.

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