copyright © 2012 pearson education, inc. publishing as prentice hall 5-1 chapter 5 power

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5-1

Chapter 5

Power


Learning Objectives

Define power and its key role in leadership

Understand the cross-cultural differences in the definition and use of power

Identify the individual and organizational sources of power available to leaders

Describe the consequences of power for the leader, followers, and organizations.

Understand the role of power in the leadership and effectiveness of teams

Identify the power sources available to top executives

Explain the causes of power abuse and corruption and present ways to prevent them

Trace the changes in use of power, the development of empowerment, and explain their consequences for leadership


Definitions

Power: the ability of one person to influence other and exercise control over them

Influence: the power to affect the course of an action

Authority: the power vested in a position


Consequences of Power on Power-Holder

Positive Effects

More action-orientation

More sensitivity towards others

Focus on rules

More generous

Power changes those who hold it.


Consequences of Power on Power-Holder

Negative Effects

Focus on retaining power at all costs

False belief that they understand others well

Oblivious to others’ needs

Lose ability to empathize

Take credit of others’ work

Power changes those who hold it.


Followers’ Reaction to power

Compliance

Commitment

Resistance


Power and Culture

Pow

er D

ista

nce

Unc

erta

inty

Avo

idan

ce

Delegation

Use of teams

Empowerment

HIGH

LOW


Distribution of Power and Culture

The more equal the power distribution in an organization, the higher the performance

Culture strongly impacts the perception and use of power

In high-power distance culture, expectation of power sharing are low


Individual Sources of Power

Legitimate power

Reward power

Coercive power

Expert power

Referent power


Potential Reactions to Individual Sources of Power

Coercion

Reward

Legitimacy

Expertise

Referent

Sources of Power

Resistance

Compliance

Commitment

Potential Reactions


Influence Tactics

Rational persuasion

Inspirational appeal

Consultation

Ingratiation

Personal appeal

Exchange

Coalition building

Legitimate tactics

Pressure


Career Stages and Power

CA

RE

ER

PR

OG

RE

SS

ION

SOURCES POWER AND CHALLENGES

Legitimate power;

appropriate use of power

Legitimate power;

appropriate use of powerPersonal

credibility; relationships;

expertise; gaining power

Personal credibility;

relationships; expertise;

gaining power

All power sources; letting go gracefully

All power sources; letting go gracefully

Early

Late


Organizational/Team Sources of Power

Coping with uncertainty

Centrality

Dependency

Substitutability


Sources of Power for Top Executives

Legitimate power and position

Distribution of resources

Control of decision criteria

Centrality in organizational structure

Access


Power Abuse and Corruption

Abuse: taking advantage of one’s power for personal gain; unethical, but not always illegal

Corruption: abusing one’s power to benefit oneself or another person; both illegal and unethical.


Causes of Power Corruption: Leader Characteristics

Inflated view of self

Rigid and inflexible

Sense of entitlement

Willingness to exploit others

Lack of empathy

Vicious and ruthless

Overly concerned with power

Ingratiating with supervisor


Causes of Corruption: Follower Characteristics

Fear

Silence

Agreement

Compliance

Inaction

Flattery


Cause of Power Corruption: Organizational Factors

Organizational culture

Hiring practices

Short-term orientation

Centralized structure


The Corruption Cycle

• Compliance• Distance from

others• Inflated view of

self• Flattery

• Dependence

ProcessesCauses Consequences

Leader Characteristics

Organizational Factors

• Poor

decisions

• Coercion

• Devaluation

of others

• Ethical and

legal

violations


Solutions to Corruption

Clear message and consistency

Accountability

Reducing uncertainty

Training for leaders and followers

Protecting employees

Open communication


Solutions to Corruption

Leader involvement in day-to-day activities

Reducing follower dependence on leader

Empowerment

Objective performance measures

Involvement of outsiders

Changing the organizational culture


Empowerment: Leadership Factors

Create a positive emotional atmosphere

Set high performance standards

Encourage initiative and responsibility

Reward openly and personally

Practice equity and collaboration

Express appropriate confidence in subordinates


Empowerment: Organizational Factors

Decentralize structure

Select and train leaders appropriately

Select and train employees appropriately

Remove bureaucratic constraints

Reward empowering behaviors

Create fair and open organization policies


Leadership Challenge

Understand the reasons for high salaries:

Market competition

High risk jobs

Attracting talent

Fairness is highly subjective

Organizations in crisis need to attract talent

High salary differentials affect morale


Leadership and Change: Semler

Open book management

Share information and power

Train employees to understand financial information

Sabbaticals to refresh

High performance


Leadership in Action: Fuld

Sources of power

Legitimate title

Considerable expertise

Bullying – intimidation

Performance

Reward and punishment

Corruption Factors

Entitlement

Narcissistic personality

Lack of accountability

Compliant followers

Centralization

Organization culture focused on performance only


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copyright © 2012 pearson education, inc. publishing as prentice hall 5-1 chapter 5 power

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