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Master of Business Administration

Week 4
Leadershlp and ower


Power
- Inuence |s the essence of |eadersh|p. 1o
be eecnve as a |eader, |t |s necessary to
|nuence peop|e to carry our requests,
support proposa|s and |mp|ement
dec|s|ons. In |arge organ|zanons the
eecnveness of managers depends on
|nuence over super|ors, peers and
subord|nates.
#
Outcomes of Influence Attempts
- Comm|tment
- Comp||ance
- kes|stance
- Dehn|non of power
- 1he capaclLy of a person, Leam or organlzauon Lo lnuence oLhers
- Sources of ower (Irench and kaven)
- Leg|nmate power (1he capac|ty to |nuence others through
forma| author|ty)
- keward power (the capac|ty to |nuence others by contro|||ng
the a||ocanon of rewards va|ued by them and remov|ng neganve
sancnons
- Coerc|ve power (the ab|||ty to app|y pun|shment)
- Lxpert power (the ab|||ty to |nuence others because of the
possess|on of know|edge and sk|||s that the others want)
- keferent power (the capac|ty to |nuence others based on the
|dennhcanon and respect that the others have for the power
ho|der)
Power
$
- 1ypes of ower (uk| & Ia|be, 1991)
- LeglumaLe power
- 8eward power
- Coerclve power
- lnformauon power
- Lcologlcal power (conLrol over Lhe physlcal
envlronmenL, Lechnology, organlzauon)
- LxperL power
- 8eferenL power
Power
- 1he |mportance of Lxpert ower
- our team |ooks to you for d|recnon and gu|dance
- our team |ooks to you for a worthwh||e d|recnon
and m|ss|on
- our team |ooks to you to |ead them towards the
ach|evement of these
Building Expert Power
%
- 8u||d Lxpert ower by
- Ga|n|ng expernse
- Demonstranng that you have the expernse
(|mpress|on management)
- Ma|nta|n|ng cred|b|||ty and protecnng the |mage of
your expert power
- 1ak|ng charge when necessary
- keep |nformed of what |s go|ng on |n the wor|d
- kecogn|ze subord|nate concerns
- 8u||d subord|nate esteem
Building Expert Power
- When us|ng |eg|nmate power
- Make po||te, c|ear requests
- Lxp|a|n reasons for requests
- Do not exceed scope of author|ty
- Ver|fy author|ty |f necessary
- Use proper channe|s
- Io||ow up to ver|fy comp||ance
- Ins|st of comp||ance |f needed
Using Legitimate Power
&
- When us|ng reward power
- Cer the r|ght type of reward
- Cer fa|r and eth|ca| rewards
- Do not over-prom|se
- Lxp|a|n cr|ter|a for rewards
- 8e nme|y about rewards
- Use rewards symbo||ca||y
Using Reward Power
- When us|ng coerc|ve power
- Lxp|a|n ru|es and regu|anons and ensure
understand|ng
- kespond to |nfracnons prompt|y and fa|r|y
- Get the facts hrst
- Cra| and wr|uen warn|ngs before pun|shment
- Adm|n|ster warn|ngs and repr|mands |n pr|vate
- D|sp|ay s|ncer|ty |n wannng to he|p the other person
- Use pun|shments that are |eg|nmate and wh|ch
commensurate w|th the ser|ousness of the prob|em
Using Coercive Power
'
- Acqu|r|ng or |os|ng power
- Soc|a| exchange theory
- Lxchange of benehts or favors
- Lxpectanons of rec|proc|ty and equ|ty
Acquiring or Losing Power
- Acqu|r|ng or |os|ng power
- Strateg|c connngenc|es theory
- 1he power of a person depends on
- (1) the expernse |n cop|ng w|th |mportant prob|ems,
- (2) centra||ty of the person w|th|n the work ow and
- (3) the extent to wh|ch the person's expernse |s un|que rather
than subsntutab|e.
- A party w||| ga|n more power over |mportant dec|s|ons |f the cr|nca|
funcnon can on|y be performed by h|m. Un|queness and
|nd|spensab|||ty
- Increased expert power = |ncreased |eg|nmate power
- nowever, power can be usurped by coa||nons from others

Acquiring or Losing Power
(
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LeglumaLe
8eward
Coerclve
LxperL
8eferenL
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ower over
others
Acquiring Power
- now much power?
- Ma|nta|n a reservo|r of good w|||
- Do not hght on every |ssue
- Inuence rather than coerce
- Deve|op persona| and pos|nona| power
- 8u||d networks
- 8eware the corrupnng power of power
Power
?
lnuence ls exerclse of power Lo change or conLrol Lhe
behavlour, amLudes, oplnlons, ob[ecuves, needs,
and/or values of anoLher parLy

lnuence ls a compeuuve ouLcome
Influence
lnuence ls one Lype of compeuuve ouLcome

Compeuuve behavlour LhaL enhances cooperauon
lncludes
- CommlLmenL of Lhe oLher parLy
- So lnuence Lacucs
Influence
@
! !"#$%"& ()*+,"+-$%. 1rylng Lo convlnce someone wlLh
reason, loglc or facLs.
! .%+(-*"#$%"& "(()"&+. 1rylng Lo bulld enLhuslasm by
appeallng Lo oLhers' emouons, ldeals or values.
! /$%+,&0"#$%. Cemng oLhers Lo paruclpaLe ln plannlng,
maklng declslons and changes.
! .%1*"#"#$%. Cemng someone ln a good mood prlor Lo
maklng a requesL, belng frlendly, helpful and uslng pralse or
auery.
! 2)*+$%"& "(()"&+3 8eferrlng Lo frlendshlp and loyalLy when
maklng a requesL.
Nine Generic Influence Techniques
! 4567"%1). Maklng express or lmplled promlses and Lradlng
favours.
! /$"&-#$% 0"6#6+. Cemng oLhers Lo supporL your eorL Lo
persuade someone.
! 2*)++,*). uemandlng compllance or uslng lnumldauon or
LhreaLs.
! 8)1-#9"#%1 0"6#6+3 8aslng a requesL on one's auLhorlLy or
rlghL, organlzauonal rules or pollces, or express or lmplled
supporL from superlors.
Nine Generic Influence Techniques
!A
The Evolution of Power:
From Domination to Delegation
None
High Power Distribution
Followers granted
authority to make
decisions.
Power Sharing
Manager/leader and
followers jointly
make decisions.
Influence Sharing
Manager/leader
consults followers
when making
decisions.
D
e
g
r
e
e

o
f

E
m
p
o
w
e
r
m
e
n
t

Authoritarian
Power
Manager/leader
imposes decisions.
Domination Consultation Participation Delegation