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Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. 4-1 Chapter 4 Influencing: Power, Politics, Networking and Negotiation

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Page 1: Ch04 leadership

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

Chapter 4Influencing:

Power, Politics, Networking and

Negotiation

Page 2: Ch04 leadership

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.

Page 3: Ch04 leadership

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2 Sources of Power

Position

Personal

Derived from top management

Derived from thefollower basedon leader’s behavior

Page 4: Ch04 leadership

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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

Page 6: Ch04 leadership

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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

Page 7: Ch04 leadership

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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

Page 8: Ch04 leadership

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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.

Page 9: Ch04 leadership

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Politics• The process of gaining and using power

• Fact of life in organizations

• Neither good or bad

Page 10: Ch04 leadership

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NetworkingNetworking

ReciprocityReciprocity

CoalitionsCoalitions

3CommonPolitical

Behaviors

3CommonPolitical

Behaviors

Page 11: Ch04 leadership

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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

Page 12: Ch04 leadership

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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

Page 14: Ch04 leadership

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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

Page 16: Ch04 leadership

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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

Page 17: Ch04 leadership

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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.