Ethical Power, Politics, & EtiquetteMatthew L. Eisenhard, Psy.D.Week 9: Psychology for Business & Industry

Power• Is a person’s ability to influence others to do something that they would not do otherwise.▫ Necessary to meet all goals in the organization.▫ Self-assessment 9.1 examines your power base.

• Who holds the power, and how they use it affects performance.▫ Excessive power decreases performance.▫ Some seek it, others reject it.▫ Leadership and power go hand in hand.

Organizational Power

• Power can be used to manipulate and corrupt – a negative connotation.▫ Properly used, it gives the ability to achieve goals.▫ Power provides strength to bring about change.▫ Skill in using power effectively and appropriately

can be developed.

Bases of Power• Two Levels• POSITION POWER

▫ Comes from top management.▫ Is delegated down the chain of command.

• PERSONAL POWER▫ Comes from your personal style and interpersonal skills.▫ Is given to you from those who choose to follow you

(earned?).

Bases of Power• It is not necessary to take power away from others to gain your own

power.▫ Positive people are more likely to gain power than negative

people.▫ Power is given to those who others genuinely like.

• 7 bases of power are…1. Coercive2. Connection3. Reward4. Legitimate5. Referent6. Information7. Expert

Coercive Power• Uses threats, punishment, being a bully.

▫ Appropriate when needed to maintain discipline and enforcing rules.

▫ Should be used minimally as it often has negative effects on human relations and productivity.

• To use it you must be in a position that gives the ability to hire, fire, and discipline employees.

Connection Power• Based on one’s relationship with influential people.

▫ Not “what,” but “who” you know.▫ If you have connections to “power,” others are more

likely to comply with your requests.• To increase your connection power, join the “in crowd.”

▫ Identify people who can help you, make alliances with them.

▫ When you need/want something, they will be your allies.

• Get your name in the public eye.• Make sure people in power know about your

accomplishments.

Reward Power• Based on your ability to influence people with something of

value to them.▫ Positive reinforcement – recognition, raises, promotions.

• Reciprocity with peers – exchange of favors.• Let the word out – let others know what rewards you offer.

▫ To use it you need to be in a position of control over resources.

▫ Find out what others value and use it as a reward.

▫ Using praise increases your reward power.

Legitimate Power• Based on the person’s perception

(credibility) in the organization.▫ People tend to feel like they should

comply with their bosses.▫ Most day-to-day interactions are based on this power.

• To increase your legitimate power, let people know about it.▫ Remember it’s all about perception. So, even if you do not

have it, give the impression that you do.▫ If others perceive you as having it, then you do.

Referent Power

• Based on your personal power.▫ You rely on your charm – “pretty please?”▫ Appropriate for people with weak, or no position

power.• To gain it, develop relationships with others, be

their advocate.▫ Gaining the confidence of

your boss will help you gain referent power.

Information Power

• Based on what information you have access to – insider information.▫ If you know things that help others, you have the

power.• To help gain information power, make sure

information has to flow through you.▫ Provide services and information to others.▫ Serve on committees – gives you information and

connection power.▫ Go to meetings, seminars, etc.

Expert Power• Based on your skill and knowledge

of a subject.▫ Being the “go to” person has it’s

advantages. The fewer people with the skill

and knowledge, the more powerful it is.

People depend on you and respect an expert.• To increase this power base, get all the education you can.

▫ Take all of the training classes offered in your organization.• Leave the routine tasks to others. Engage in complex hard-to-

evaluate tasks.• Project a positive image.

Bases of Power

• You can use different types of power in different situations with different people.▫ Knowing when, what, and with whom is

important.▫ This comes with

experience and an ability to read people well.

Influencing Tactics

• Along with power sources and bases you need to be able to persuade people.

• Persuasion takes careful preparation and proper presentation.▫ People respond well to appropriate and

compelling evidence.▫ People do not respond well to

coercion and manipulation.

Influencing Tactics• There are 5 tactics that can be used to influence people

▫ Ingratiation, rational persuasion, inspirational appeal, personal appeal, legitimization.

• Two things to consider before engaging in persuasive tactics.• READING PEOPLE

▫ If you are going to successfully influence someone you have to know who they are.

▫ Anticipate their expectations – put yourself in their position.▫ Once you know them, be sure to address them.▫ Keep a focus on what’s in it for them.

• CREATING A WIN-WIN SITUATION▫ Always look for ways to make it good for both parties involved.

Ingratiation (Praise)

• Never go a day without praising.▫ Be sensitive to others’ moods.▫ Compliment past achievements before you ask for

something more.▫ State why you are asking them instead of someone

else – personal compliment.• Acknowledge the inconvenience.

▫ Emotional appeal.▫ Basically, making it hard for them to say no.

Rational Persuasion• Using logic – just the facts please.• Works well with those who are influenced more by thinking than by

emotional appeals.• Guidelines to follow:

▫ State why you need it.▫ State how they will benefit (what’s in it for them).▫ Provide valid evidence – know what you’re talking about.▫ Give the pros and cons – what problems may be encountered and

how to deal with them.▫ Do your homework – be ready to defend your ideas with any that

may be in competition.

Inspirational Appeal

• Works well on emotionally responsive people.• Guidelines to follow:

▫ Know the values of the person you are appealing to.

▫ Appeal to that person’s sense of self.

▫ Create a vision of the end product.

▫ Be positive, optimistic, upbeat.▫ Use nonverbals – must be genuine!

Personal Appeal

• Based on loyalty and friendship.▫ Do it for me, please.

• Especially helpful when you have weak power.• Guidelines to follow:

▫ Come right out and say you need a favor.▫ Appeal to your friendship.▫ Tell the person you are counting on them.

Legitimization

• Using your valid authority.• Guidelines to follow:

▫ Refer to the organizational policies, procedures, etc. – “the law.”

▫ Show them written documentation if needed.▫ Show precedent.

Influencing Tactics

• You can mix and match tactics.▫ Fall back and regroup for a

renewed tactic if needed.• Assess the person and the

situation.▫ Rational persuasion will not

work if a person is unwilling to consider your arguments.

Organizational Politics

• A network by which power is gained, transferred, and exercised (used) on others.▫ Critical to career success.▫ You cannot escape it if you want to succeed.

• Politics is the process of gaining and using power.

• Self-assessment 9.2 consists of statements of ethical behavior.▫ Higher your score, the more political you are.

Three Primary Political Behaviors• NETWORKING

▫ Process of developing relationships.▫ Probably the most important factor in gaining success.

• RECIPROCITY▫ You scratch my back and I’ll scratch yours.▫ Involves creating obligations and debts – and using them to get

what you want/need.▫ Used to achieve ongoing goals.

• COALITION BUILDING▫ A network of alliances.▫ A network of networks.▫ Done in the service of achieving your goals.

Vertical Politics

• The relations with superiors and subordinates.

• Most important people in your professional environment.1. Relations with your boss.2. Relations with

subordinates.

Relationships with the Boss• Affects job satisfaction.

▫ Can mean the difference between success or failure on the job.

▫ Vital to develop a good relationship. A.k.a. managing your boss or leader-member exchange (LMX)

theory.

• Adapt your personal style to match the boss’s.▫ People generally like those with similar attitudes and styles.▫ Get to know what makes your boss tick and what he or she expects from you.

Common Boss Expectations• Loyalty

▫ Never talk behind the boss’s back.• Going over the boss’s head

▫ Exercise extreme caution – makes you look disloyal and unethical.• Cooperation

▫ Imperative to get along with everyone – don’t embarrass your boss.• Initiative

▫ Always look for ways to go the extra mile – volunteer.• Information

▫ Keep the boss in the loop – never cover up errors.• Openness to Criticism

▫ Everyone makes mistakes – don’t be defensive.• Regaining Trust

▫ Admit shortcomings and always apologize.

Relationships with Subordinates

• Vital for managers to develop effective human relations.▫ Don’t overlook the needs of employees!▫ Possible to do so without being liked or being

popular by maintaining professionalism.• Strive for harmonious environments.• Keep morale high.• Manager-employee relationships should

always be win-win situations.

Relationships with Subordinates• Friendships

▫ A “true” friendship relationship is inadvisable due to the power differential existing in the boss-employee relationship.

▫ Managers should be “friendly.”• Open-Door Policy

▫ Practice of being available to employees.

▫ Managers need to prioritize the amount of time spent with employees.

▫ Seek balance between keeping employees happy and getting one’s own work done.

Horizontal Politics• Relationships with your peers

in your organization and other organizations.

• To be successful you must:▫ Cooperate

Sharing and collaborating are vital.

▫ Compete Need to balance being a good team player while still making

yourself look good as an individual.

▫ Criticize Don’t seek out faults in others – when appropriate, be tactful. Go to the boss as a last resort unless a serious offense or danger

is present.

Relations Between Other Departments & Organizations• Most jobs require interactions with people

outside your department or organization.▫ Developing good human relations skills and

creating win-win situations will benefit you and your organization.

• Affects your overall job performance.

Codes of Ethics• Establish guidelines that

clearly describe ethical and unethical behavior.

• Most organizations consider these important.▫ When you feel proud of

what you’ve done, it is usually an ethical decision.

▫ If you are embarrassed to tell people about a decision or action, or if you find yourself rationalizing it, it is probably unethical.

Ethical and Unethical Politics• Ethical Politics

▫ Behavior that benefits both the individual and organization.

▫ Creates win-win situations.

• Unethical Politics▫ Creates a win-lose situation.▫ Behavior that benefits the

individual and hurts the organization.

▫ Includes management behavior that helps the organization but hurts the individual.

Business Etiquette

• Often referred to as manners.▫ The code of behavior expected in work situations.

• Many organizations weigh it as a criteria in hiring and promotions.▫ Important to project a favorable

image when representing an organization.

▫ Proper etiquette changes over time and is different in varied settings.

In-Person Etiquette Skills• Conversations

▫ Use titles and last names – unless otherwise stated and approved beforehand. Remembering names is very important!

▫ NEVER use profanity.▫ Introductions – present lower rank person to higher

rank person. If equal in rank, mention elder person first.

▫ Mention a few pertinent things about the person.▫ Shake hands.

Be cautious with other forms of touching.

In-Person Etiquette Skills• Dining

▫ Use proper table manners.▫ Person that invited pays the tab.▫ Don’t order food that is going to be messy to eat.

• Hoteling, Telecommuting, Cubicle▫ Hoteling is the sharing of space and equipment.

Clean up after yourself. Respect others privacy.

▫ Telecommuting is working from home.▫ Cubicles are open work areas – try not to be a

distraction to others – dress appropriately.

In-Person Etiquette Skills• Cell Phones

▫ Don’t do personal business on the job – follow the company policy.

▫ Don’t use business phone for personal use.▫ Don’t drive while on the phone.

In-Person Etiquette Skills• E-mail, Texting, Instant Messaging

▫ Select most appropriate media.▫ Not everyone – especially older individuals – want to text.▫ E-mail is preferred over text or IM.

In-Person or Digital? Job Interviews

In-Person or Digital? Meetings

• Be ON TIME and be prepared.• Poor manners to talk, text, etc. during a

presentation.• Dress for business even if teleconferencing.• If using PowerPoints – don’t just read them.

▫ Use bullets to summarize main points.

▫ Elaborate, show your knowledge on the topic.

In-Person or Digital? Networking

• Commonly done in both mediums.• Twitter, LinkedIn, Facebook.• Always be polite.• Don’t ask people of higher rank to be your

“friend.”▫ But, accept if they ask you.

• Exercise extreme caution about posting personal information.▫ Don’t post negative commentary about job.

Customer Satisfaction & Etiquette

• Goal of business = happy customers.▫ Happiness is based on

perception of customers.▫ To provide customer

satisfaction you must listen to their needs.

▫ You must maintain a positive attitude in dealing with customers.

What NOT To Do…• Don’t ignore customers.

▫ Greet them immediately.▫ If busy, acknowledge you will be

with them as soon as possible.• Don’t conduct personal business while waiting on

customers.▫ Give the customer your undivided attention.

• Don’t be rude or defensive with customers.▫ Stay cool, calm, and collected.

• Always apologize.▫ Even if you were not in the wrong.

Dealing with Dissatisfied Customers• Paraphrase and apologize.

▫ Stay calm – focus on helping them resolve issues.▫ Listen carefully – be sure you understand.

• Ask customer how they want to resolve the issue.▫ Cash or store credit.▫ Some people are unreasonable – you cannot always please

everyone.• Implement solution quickly.

▫ Faster = happier customer.• Prevent future complaints and follow-up.

▫ Do not keep making the same mistakes – view complaints as opportunity to make improvements.

▫ Follow-up by calling or e-mailing customers to make sure they are happy.

Power – Politics - Etiquette• Mexico, Venezuela,

Philippines, Yugoslavia, France = high power distance countries.▫ Strong power and politics

acceptable.▫ Leaders expected to behave

differently from lower ranks.▫ Differences in rank more

apparent.

• U.S., Ireland, Australia, New Zealand, Denmark, Israel, Netherlands = low power distance countries.▫ Strong power and politics not

acceptable.▫ Power is expected to be

shared with employees (empowerment).

▫ People less comfortable with differences in power.

▫ Less emphasis on social class.

Foreign Etiquette• Always make yourself aware of what behavior

is acceptable and what is not when visiting a foreign country.▫ Pointing

Considered rude in Asia and Middle East.

▫ Gift Giving Be aware if you should take a gift or not and what level of gifts are

acceptable.

▫ Dining Brush up on table manners – get a book of etiquette for that country.

▫ Drinking Alcohol Middle East = no. Most places no.

Key PointsEffects of Power, Politics, &

Ethics Seven Bases of PowerIncreasing Power BasesInfluencing TacticsOrganizational Politics and

BehaviorsTechniques to Improve Human

RelationsBusiness EtiquetteCustomer Complaints