Power..Meaning

• Refers to a capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishesThe definition implies a potential that need not be actualized to be effective and a dependency relationship.

Forbes List of Powerful People

• Barak Obama, 1• Angela Merkel(Mrs), Chanceller-Germany, 2• Vadimir Putin, President- Russia, 3• Bill Gates, Co Chairman, Bill & Milinda Gates Foundation• Pope Benedict XVI, Pope – Roman Catholic• Ben Bernake, Chairman-Federal Reserve, USA• Xi Jinping, Gen Secy, Communist Party, China, 9• David Cameroon, PM, UK, 10• Sonia Gandhi(Mrs), 12• Warren Buffet, Chairman, Berkshire Hathway,15• Michael Duke, Wamart Stores, 17• Lary Page, CEO, Google, 20• Jeffrey Immelt, GE, 24• Mark Zuckrberg, CEO, Facebook, 25• Rupert Murdoch, CEO• Timothy Cook, Apple Ceo, 35• Mukesh Ambani, Chairman< reliance, 37• Aki Toyoda, CEO-Toyota Motors, 43• Lakshmi Mittal, CEO, Arcelor Mittal• Bill Clinton, Chairman Global Initiative, 50

GD & Questions to students-Forbes List of Powerful People-Analysis

• Women in list of 50• Political Leaders wield power followed by

Business Leaders• More Indians in the list.• It is not only position or money, it is also about

other things – Pope, Bill Clintonb Bill Milinda Gates Foundation

Sources of Power• Formal power– Coercive power– Reward power– Legitimate power

• Personal power– Expert power– Referent power

• Dependency – The Key to power– Importance– Scarcity.

• Power tactics

Sources of Power• Formal power

– Coercive power; Fear of negative result. Dictators thrive on this. Fear of dismissal in organization if I value or depend on my job

– Reward power – opposite of fear, Reward.– Legitimate power- source of power is formal position in the

organization.• Personal power

– Expert power – some body has influence because his expertise is valuable for organization

– Referent power – people like, respect and admire stars, hence they exercise power over people as people want to please the stars.

• Dependency – The Key to power– Importance– Scarcity.

Power & Poilitics Examples

• Resignation(poilitics) before increment. But you can not resign if you are not good performer(power)-it can backfire.

• Do not mess up with this CEO p169• Jkpm expert workmen• Referent power-advertisement by Sharukh• Gandhi.. What was his source of power• Effective ceo use both position and personal power• Have good relation with boss of Boss. Lesson for MT from campus.• Skm opposed to mckinsey• Sr leader want good people to leave orgn• Vote bank politics• British – divide-rule• USA attacked Sadam/iraq because of nuclear weapon with Iraq. What

was real reason?

Power Examples

• Resignation(poilitics) before increment. But you can not resign if you are not good performer(power)-it can backfire.

• Do not mess up with this CEO p169• Jkpm expert workmen• Referent power-advertisement by Sharukh• Gandhi.. What was his source of power• Effective ceo use both position and personal power• Have good relation with boss of Boss. Lesson for MT from campus.• Skm opposed to mckinsey• Sr leader want good people to leave orgn• Vote bank politics• British – divide-rule• USA attacked Sadam/iraq because of nuclear weapon with Iraq. What

was real reason?

Sources of Power• Power Tactics (upward, downward & lateral

influence)– Legitimacy– Rational persuasion.– Inspirational appeals.– Consultation.– Exchange.– Personal appeal.– Pressure.– Coalitions..

Impression management in organizations & defensive behaviors

• Defensive behaviors– Avoiding action – buck passing, playing dumb,

stalling• Avoiding blames – playing safe, justifying, scape

goating, misrepresenting

• Impression management - Conformity, excuses, apologies, flattery, self promotion, favors, association…

Politics – Power in Action• When people or employees in organization

convert their power in to action, we describe them as being engaged in politics. Those with good political skill have the ability to use their bases of power effectively

• Power & Politics at it’s best; The case of Indira Gandhi & Indo Pak War

• Is politics rare in organizations?

The case of Indira Gandhi & Indo Pak War

• Unrest & popular uprising in Bangladesh against west pak rulers• Suppression & violence by Pak Army against popular movement & people.• Exodus to India.• Backdrop-Indo Pak enimity.• Indira appeal to international community to ask Pak to refrain. What was her tactics?• Mukti bahini took birth & grew in strengths with active but covert support of India. Trained by Indian Army. Not

known by outside world• More exodus to India. Indira appealed to international community. She called Henry Kissinger in the presence of

Gen Manekshaw – ‘if you do not take action, I will ask him to deal with situation’• Mujibur Raheman imprisioned for sedition. Announced independent Bangladesh. India first country to recognize.• Indira provoked Pak to start war. Pak fell to her trap. Why Indira did not want to start war.• India launched attack on all three front-naval, airstrike, army. Pak desparately ask for USA help. USA threatened

India. India ask for USSR.• India wanted to finish war before USA interventions.• Shimla agreement..• ..

What is politics & power here• India is superior military, But USA was supprt pak, india defence treaty with USSR• Indira always project strengths to USA & world presence. Dare USA

Politics & organizational performance• Too much of is bad• How great organizations overcome it– Shared vision & uncompromising focus on it– Transparency. I as a Boss need to tell all why I

promoted x & not y and what basis– Leaders.

Insight about Power & Politics

• Power is one of the important needs which drive some people more than others

• Power is not a bad word. Intent is important.– One of the factors that drove Henry Ford & Steve Jobs is power– So was the case with Hitler & Stalin– What is the difference?

• Effective CEOs use both formal & personal power• Power & politics negatively engaged is bad for organizations• As professionals, be aware of power & politics. Do not

become victim or victimize others. Leverage it for individual & organizational excellence

What is your source of power...

• Expertise• Relationship• Personality• Goodhuman being• Ability to influence• Position• Intimidation/fear/..

What is your source of power; Exercise• How do I influence others?• Take feedback from one of your friends

Exercise – Forbes List• Questions– What does it speak– Analysis – analytical ability of MBAs

Concept & terminology students should be familiar with

Conflict Management• What is conflict• Is conflict natural process in human interaction.

Why do people get in to conflicts primarily.• Are all conflicts bad?• How do individuals manage conflict• How organization create functional conflict.• How organizations resolve conflicts• What is your conflict management style• Negotiation & conflict management

What is conflict

• Range from minor difference of opinion, disagreement to destruction of other party in other extreme.

• Conflict intensity continuum– Minor disagreement or misunderstanding, overt

questioning or challenging others, assertive verbal attacks, threats & ultimatum, aggressive physical attacks, overt efforts to destroy the other party.

Question – give examples

Is conflict natural process in human interaction. Why do people get in to conflicts primarily?

• Yes or No?• If yes, why so? Based on OB studies.• Conclusion…issue is not whether there is

presence of conflict or not but how effective it can be managed.

• Are all conflicts bad?

Are all conflicts bad?

• Yes or No?• Functional & dysfunctional outcome– Quality of decisions, creativity & innovation,

prompts self evaluation– Discontent, relationship, infighting, destructions

• Creating functional conflicts– Hewlit Packards rewards dissent with respect– IBM – formal & informal forums to criticize

management policies & leader’s action without personalization

How do individuals manage conflict

• Competing – when person or party is seeking to satisfy own interest, regardless of the impact on other parties to the conflict, that person or party is competing. Example

• Collaborating – when the parties to conflict each desire to fully satisfy the concerns of all parties, we have cooperation & the search for a mutually beneficial outcome. Example- organizations compete in certain areas & collaborate in certain other areas- AV Birla & JKPM in Orissa

• Avoiding – A person may recognize that a conflict exist & want to withdraw from it or suppress it. Example – Ignore a conflict & avoiding others with whom you disagree.

• Accommodating – when one party seeks to appease an opponent, that party may be willing to place the opponent interest above his or her own.

• Compromising – when each party to conflict seeks to give up something, sharing occurs, resulting in a compromised outcome

Exercise; What is your style & take feedback based on your conduct last three months

How do organizations manage conflict

• Shared vision & uncompromising focus on organizational goals. Super ordinate goals

• Values, behaviors, rules of the game defined and communicated.

• Transparency, openness, Fairness.What it does – build trust.

Example – Formal & informal forums open discussion on issues without personalization & no seeping under carpet

• The Leader(s)

Discussion – What Aragones did to build unity & harmony among players in Span context?

Those who manage conflict best..• Life Positions – how you see yourself and others– I am ok – others are not ok. I win you lose.

Which leader come to your mind– I am not ok you are not ok. I lose you lose– I am not ok you are ok. I lose you win– I am ok you are ok. I win you win

• Which is best life position• What is your life position. Discussion how do

you know what is your life position – the behavioral indicators

Negotiation…• Good negotiators– Win win as first options– Environmental awareness…what is the context,

what goal is best..– Negotiation skill.

Organization Structure• Different elements of organization & their

usefulness• What is organization structure• Organizations design structure that suit the &

enable them.• Do organizational design impact employee

behaviors

Different elements of organization & their usefulness

• First class – 7 S model & 8 primary & secondary practices

What is organization structure• Defines how job tasks are formally divided, grouped &

coordinated.• Six elements; work specialization, departmentalization,

chain of command, span of control, centralization-decentralization, formalization.

• Work specialization– Ford Assembly line production & how it enable it to produce low

cost cars in mass scale quickly.– Breaking jobs in to small standardized tasks, each workmen

need to have specialized skill in limited domain– Advantage/disadventage & impact on satisfaction-dissatisfaction

What is organization structure• Departmentalization-

– Grouping of common tasks. Marketing, Production, Maintenace– Advantages & disadvantages.– TPM.

• Chain of command– Line of authority or chain of command. Who will report to whom.– Authority & unity of command

• Span of control– How many employees can a Manager effectively direct– Advantages & disadvantages – Narrow/small vs big span of control– Example.

• Centralization & Decentralization– Degree to which decision making is centralized or decentralized.– Highly centralized organization – decision making by sr leaders.– Current approach – decentralization & empowerment, flat organization

• Formalization– To the degree to which jobs within organization are standardized. Standardization & freedom for

employee

Span of Control…• Formalization– To the degree to which jobs within organization

are standardized. Standardization & freedom for employee

Common organization design• Simple structure• Bureaucracy• Matrix• New organization design- – Team structure– Virtual organization– Boundary less organization

Group Behavior..1• Q

GD on Group Cohesiveness..2• Question – What you can do to build cohesiveness in

various groups/group you are in?• Action points– Make the group smaller– Encourage agreement with group goals– Increase time members spend together– Increase the status of the group and the perceived difficulty

of attaining membership in the group(Mumbai gymkhana club..)

– Stimulate competition with other group– Give rewards to the group rather than to individual member– Physically isolate the group

Difference between Group & Team p339 book• Group – as two or more person interacting

who have come together to achieve particular objectives. A ‘Work Group’ is a group that interacts primarly to share information and to make decision to help each member perform within his or her area of responsibility

POWER

“Ability to influence and control anything that is of value to

others.”

POWER vs. AUTHORITY

POWER AUTHORITY

May or may not be legitimate.

Legitimate.

May or may not be liked by the person over whom it is exercised.

Has a willing acceptance of the person over whom it is exercised.

POWER vs. INFLUENCE

POWER INFLUENCE

Has the ability to alter reality.

Can only alter a person’s perceptions about reality and the relationships in the organization.

TYPES OF POWER

I. Coercive PowerII. Reward PowerIII. Legitimate PowerIV. Expert PowerV. Referent Power

DEPENDENCY FACTORDependency is key element in study of power.

Dependency

Alternate

source

Level of dependency

Importance

Scarcity

Non-substitutes

Power corollary

• The exercise of power comes with cost.

• It is important to maintain a balance of power

FACES OF POWER

-ve power

• Based on personal power

• Win-lose situation

+vepower

• Based on social power• Win-win situation

Power and control

traditional

• Centralization• Exercised by few

key executives

behavioral

• Decentralization• Believes in

information sharing

POWER STRUCTURE AND BLOCS

POWER STRUCTURE

POWER RELATIONS EXISTING BETWEEN THE MEMBERS OF AN

ORGANISATION USUALLY MATCH THEIR POSITION IN THE

ORGANISATIONAL CHART.

POWER BLOCS

POWER BLOCS ARE LARGE GROUP OF PEOPLE HAVING LIMITED

INDIVIDUAL POWER,WHO COMBINE THEIR POWER TO REDUCE

OR BALANCE THE POWER OF THOSE ON WHOM THEY DEPEND.

Power structure

A

B C D

A

B

C

Direct power of ‘A’ = Indirect power of ‘A’

Direct power Indirect power

Power structure• Indirect power > Direct power (power elites) (subordinate power)

D E F G H I J K L

A B C

POWER BALANCE

• WHEN THE DEGREE OF DEPENDENCY OF THE

TARGET IS EQUAL TO THE DEGREE OF POWER

EXERCISED BY THE AGENT, THEN POWER IS SAID

TO BE BALANCED.

VARIOUS POWER PLOYS

1. UPWARD STRATGEGIES

2. DOWNWARD STRATGEGIES

3. LATERAL STRATGEGIES

CONTINGENCY APPROACHES TO POWER

Power by being in “right place”

Right Place

Control over

Resources

Control over

Information

Control over

Position

Strength Of Power Depends Upon

Interdependency Critical Importance Influencability Of Target

CONTINGENCY APPROACHES TO POWER

Two Way Reciprocal Nature Of Power Relationship

Degree Of

Dependency

Personality TraitsAge

Uncertainty

Intelligence

Influencability of target

Culture

Power in groups : coalitions People form coalition to:

Combine their resources

Increase their bargaining power.

Bring balance in power.

Organizational coalition has large membership.

Formation of organizational coalitions depend on

Degree of interdependence between departments

Nature of task/work.

Organizational

Politics

Politics: Power in ActionPolitical Behavior

Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization.Legitimate Political BehaviorNormal everyday politics.

Illegitimate Political BehaviorExtreme political behavior that violates the implied rules of the game.

Individual Factors

Level of Self-Monitoring

Locus of Control

WorkEnvironment

Factors Relating to Political Behaviour

Strengths of theIndividual’s

Power motive