pd lecture 7 power and politics

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Page 1: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1

Page 2: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 2

POWER AND POLITICS

Page 3: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 3

LEARNING OUTCOMES

Define power Explain the difference between power and

leadership Describe the bases of power Identify the causes and consequences of

political power

Page 4: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 4

What is Power ?

Power is the ability of one person to influence another to

act in accordance with his wishes.

Page 5: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 5

POWER

Power is a crucial ingredient to effective leadership.

There are two sources of power:

Page 6: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 6

POWER VS LEADERSHIP

Power Leaders

Used as a means for achieving goals

Focuses on goal achievement

Requires follower dependency Requires goal compatibility with followers

Used to gain lateral and upward influence

Focuses influence downward

Page 7: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 7

IMPORTANT FACTORS OF POWER

Page 8: PD Lecture 7 power and politics

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FORMAL POWER

Formal power is based on an individual’s position in an organization.

Four categories of formal power:

Page 9: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 9

COERCIVE POWER

Coercive power happens when a person who has the control over a situation imposes a penalty on his followers.

Examples of penalty or fear are:– Verbal abuse– Loss of promotion– Possibilities that name is dropped from dealing in

mega important projects– Possibilities of job losses – Delayed for promotion

Page 10: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 10

REWARD POWER

Reward power happens when a leader has the ability and power to reward or share positive values with the followers.

Benefits or rewards can be given through financial or non-financial rewards.– Financial reward - pay rates, raises or bonuses – Non-financial reward - recognition for a job well

done (a box of chocolates or gift vouchers), opportunity to work in the organization’s mega projects or trust in relationship

Page 11: PD Lecture 7 power and politics

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LEGITIMATE POWER

Is a combination of both coercive and reward power.

It is derived from the position the person holds. The person who holds legitimate power is a

person who seats in formal authority to control and uses organizational resources

Page 12: PD Lecture 7 power and politics

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INFORMATION POWER

Information power is when a person has access to the key information in the organization.

Under information power, the person is in power as:– He or she controls the flow of information to others.– He or she has the ability to manage and control

environmental uncertainties• Uncertainties can be managed through prevention,

forecast and absorption

Page 13: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 13

EXPERT POWER

A person who obtains special skills, knowledge or is an expert in certain areas. Having the special skills, knowledge and the expertise allows him or her to be in control.

Page 14: PD Lecture 7 power and politics

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REFERENT POWER

The ability of a leader to influence a follower because of the follower's loyalty, respect, friendship, admiration, affection, or a desire to gain approval.

This situation happens when followers tend to like and respect the leaders.

Page 15: PD Lecture 7 power and politics

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DEPENDENCY

The more people depend on you, the more power you have on them. The level of dependency is based on the alternatives available and the level of importance which a person has.

The key to power is the extent of dependency to power between the person who wields it and the person who are influenced by it.

The power dependency is influenced by three factors: – Importance of a resource – Scarcity of a resource – Availability of substitute

Page 16: PD Lecture 7 power and politics

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ORGANIZATIONAL POLITICS

Organizational politics generate political behaviour.

Political behaviour is defined as an activity which is not required as part of one’s formal role.

Political behaviour happens when people who lack power wish to be involved or wish to influence decision.

There are two ways to it, either via legitimate or illegitimate means.

Page 17: PD Lecture 7 power and politics

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 17

TWO (2) Main Factors that Influence Political Behaviour.

•IndividualIt is noted that employees who possess high self-monitors, high locus of control, and high need of power would be involved in political behaviour. This is because individuals who have the above criteria believe that they are able to control their environment and themselves in any situation. These are also individuals who have high expectations for success and look forward to better work offer and opportunities. •OrganisationSituation which encourages organisational politics would be situations where decisions are made based on uncertain or ambiguous evidence. Politics creates behavior which at times would be disadvantage to the organisation. Dissatisfaction due to incorrect decision-making processes, decline in employee performance levels and unhealthy relationships would lead to high turnover in organisations.