copyright © 2012 pearson education, inc. publishing as prentice hall 5-1 chapter 5 power
TRANSCRIPT
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5-1
Chapter 5
Power
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5-2
Learning Objectives
Define power and its key role in leadership
Understand the cross-cultural differences in the definition and use of power
Identify the individual and organizational sources of power available to leaders
Describe the consequences of power for the leader, followers, and organizations.
Understand the role of power in the leadership and effectiveness of teams
Identify the power sources available to top executives
Explain the causes of power abuse and corruption and present ways to prevent them
Trace the changes in use of power, the development of empowerment, and explain their consequences for leadership
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Definitions
Power: the ability of one person to influence other and exercise control over them
Influence: the power to affect the course of an action
Authority: the power vested in a position
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Consequences of Power on Power-Holder
Positive Effects
More action-orientation
More sensitivity towards others
Focus on rules
More generous
Power changes those who hold it.
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Consequences of Power on Power-Holder
Negative Effects
Focus on retaining power at all costs
False belief that they understand others well
Oblivious to others’ needs
Lose ability to empathize
Take credit of others’ work
Power changes those who hold it.
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Followers’ Reaction to power
Compliance
Commitment
Resistance
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Power and Culture
Pow
er D
ista
nce
Unc
erta
inty
Avo
idan
ce
Delegation
Use of teams
Empowerment
HIGH
LOW
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Distribution of Power and Culture
The more equal the power distribution in an organization, the higher the performance
Culture strongly impacts the perception and use of power
In high-power distance culture, expectation of power sharing are low
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Individual Sources of Power
Legitimate power
Reward power
Coercive power
Expert power
Referent power
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Potential Reactions to Individual Sources of Power
Coercion
Reward
Legitimacy
Expertise
Referent
Sources of Power
Resistance
Compliance
Commitment
Potential Reactions
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Influence Tactics
Rational persuasion
Inspirational appeal
Consultation
Ingratiation
Personal appeal
Exchange
Coalition building
Legitimate tactics
Pressure
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Career Stages and Power
CA
RE
ER
PR
OG
RE
SS
ION
SOURCES POWER AND CHALLENGES
Legitimate power;
appropriate use of power
Legitimate power;
appropriate use of powerPersonal
credibility; relationships;
expertise; gaining power
Personal credibility;
relationships; expertise;
gaining power
All power sources; letting go gracefully
All power sources; letting go gracefully
Early
Late
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Organizational/Team Sources of Power
Coping with uncertainty
Centrality
Dependency
Substitutability
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Sources of Power for Top Executives
Legitimate power and position
Distribution of resources
Control of decision criteria
Centrality in organizational structure
Access
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Power Abuse and Corruption
Abuse: taking advantage of one’s power for personal gain; unethical, but not always illegal
Corruption: abusing one’s power to benefit oneself or another person; both illegal and unethical.
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Causes of Power Corruption: Leader Characteristics
Inflated view of self
Rigid and inflexible
Sense of entitlement
Willingness to exploit others
Lack of empathy
Vicious and ruthless
Overly concerned with power
Ingratiating with supervisor
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Causes of Corruption: Follower Characteristics
Fear
Silence
Agreement
Compliance
Inaction
Flattery
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Cause of Power Corruption: Organizational Factors
Organizational culture
Hiring practices
Short-term orientation
Centralized structure
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The Corruption Cycle
• Compliance• Distance from
others• Inflated view of
self• Flattery
• Dependence
ProcessesCauses Consequences
Leader Characteristics
Organizational Factors
• Poor
decisions
• Coercion
• Devaluation
of others
• Ethical and
legal
violations
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Solutions to Corruption
Clear message and consistency
Accountability
Reducing uncertainty
Training for leaders and followers
Protecting employees
Open communication
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Solutions to Corruption
Leader involvement in day-to-day activities
Reducing follower dependence on leader
Empowerment
Objective performance measures
Involvement of outsiders
Changing the organizational culture
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Empowerment: Leadership Factors
Create a positive emotional atmosphere
Set high performance standards
Encourage initiative and responsibility
Reward openly and personally
Practice equity and collaboration
Express appropriate confidence in subordinates
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Empowerment: Organizational Factors
Decentralize structure
Select and train leaders appropriately
Select and train employees appropriately
Remove bureaucratic constraints
Reward empowering behaviors
Create fair and open organization policies
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Leadership Challenge
Understand the reasons for high salaries:
Market competition
High risk jobs
Attracting talent
Fairness is highly subjective
Organizations in crisis need to attract talent
High salary differentials affect morale
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Leadership and Change: Semler
Open book management
Share information and power
Train employees to understand financial information
Sabbaticals to refresh
High performance
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Leadership in Action: Fuld
Sources of power
Legitimate title
Considerable expertise
Bullying – intimidation
Performance
Reward and punishment
Corruption Factors
Entitlement
Narcissistic personality
Lack of accountability
Compliant followers
Centralization
Organization culture focused on performance only
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5-27
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