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Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-1
Chapter 4Influencing:
Power, Politics, Networking and
Negotiation
Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-2
InfluencingThe process of affecting others’ attitudes and behavior to achieve an objective.
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2 Sources of Power
Position
Personal
Derived from top management
Derived from thefollower basedon leader’s behavior
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Types of Power• Legal/Legitimate:
– Comes from appointed/elected position
– Most followers grant this to a leader
• Reward:– Control of things valued by
followers– Based on exchange relationship
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Types of PowerReferent:
– Based 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 other types of power or the lack thereof
– Critical between: • Leaders & followers • Peers• Leaders & their superiors
– Excellent base for a relational or balanced relational/structural leadership style
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Types of Power• Expert:
– Comes from skill, expertise, knowledge
– Makes others dependent on the person with the power
– Can be for advice, to fix your computer, etc.
• Information/Resource:– Comes from control of data,
information or other needed resources• $$$• Equipment• Human Resources• Supplies & Material
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Types of Power• Coercive/Punishment:
– Ability to punish or withhold rewards
– Often used by peers to enforce norms
• Connection:– Comes from associating with
influential people– Political
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THE SINGLE MOST EFFECTIVE WAY TO ACCUMULATE
POWER IN AN ORGANIZATION
Regularly provide services, favors, and
assistance to everyone within the organization.
The more impossible these acts are to repay,
the greater the power gain.
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Politics• The process of gaining and using power
• Fact of life in organizations
• Neither good or bad
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NetworkingNetworking
ReciprocityReciprocity
CoalitionsCoalitions
3CommonPolitical
Behaviors
3CommonPolitical
Behaviors
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Political Behavior Skill
DevelopmentReciprocityCoalitions
Networking
Learn the Organizational Culture & Power Players
Develop Good Working RelationshipsEspecially with your Manager
Be Loyal, Honest Team Player
Gain Recognition
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Networking on the Job• Key to promotion to
higher management • Requires social skills• Is about building professional relationships and friendships
• Difficult for women–Not called “the good old boy network” for nothing
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Networking to Find a Job
• Most successful approach
• 2/3 of all jobs–Word of mouth– Informal referrals
• Results in more new jobs than all other methods combined
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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
• Accomplishments• Tie accomplishments to the Job Interview
• Set Networking Goals
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Create Your One-Minute Self-
Sell• History of your career• Plans for the future• Questions to stimulate conversation
• Write and Practice
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Develop Your Network• Begin with who you
know• Expand to people you don’t know–Referrals–Volunteer work
• Develop ability to remember peoples’ names
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Conduct Networking Interviews• Not job interviews
• Use network list• Use many interviews to reach networking goals
• Informal or via telephone
• You are the interviewer–Be prepared
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Conducting Interviews• Establish rapport
• Deliver your one-minute self-sell
• Ask prepared questions• Get additional contacts for
your network• Ask your contacts how you
might help them• Followup
– Send thank-you notes– Give status reports
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NEGOTIATION• Two or more parties which
are in conflict (disagreement) working to reach an agreement
• Common in:– Job searches–Labor relations–Sales
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Negotiation Process
PlanPlan
PostponementPostponement
AgreementClose the deal
AgreementClose the deal
No AgreementNo Agreement
NegotiationsNegotiations
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PLAN• Research the other
party(ies)• Set objectives
– Lower limit– Objective– Opening
• Develop options & tradeoffs
• Be prepared to deal with questions & objections (especially unstated)
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NEGOTIATIONS• Develop rapport• Keep it professional, never
personal• Try to get the other person
to make the first offer“He who mentions a dollar amount
first, loses”, Job Hunting adage• Ask questions• Listen• Don’t give in too quickly• Never give something up for
free
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POSTPONEMENT• May be advantageous or disadvantageous
• Most interested party usually tries to avoid postponements–May try to create a sense of urgency
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Agreement• Both sides should feel good about the agreement
• Get it in writing• Quit selling• Start work on a personal relationship
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Disagreement• Accept that agreement isn’t possible
• Learn from the failure• Ask the other party what you did right & wrong
• Analyze and plan for the next time
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Negotiation Adage• “If you can’t afford to
walk away, or at least convince the other side that you will walk away, you’ve already lost.”–Convincing others you will walk away when you can’t is very tough.