CHAPTER # 4

INFLUENCING: POWER, POLITICS, NETWORKING, AND NEGOTIATION

Presented by

Faiza Majid

Urooj Fatima

Maria Shahid

Samina

SZABIST ISLAMABAD

Date: 12/15/2013

Chapter 4Learning Outcomes

• Explain the differences between position power and personal power.

• Discuss the differences among legitimate, reward, coercive, and referent power.

• Discuss how power and politics are related.

• Describe how money and politics have a similar use.

• List and explain the steps in the networking process.

• List the steps in the negotiation process.

• Explain the relationships among negotiation and conflict, influencing tactics, power, and politics.

• Define the key terms listed at the end of the chapter.

InfluencingThe process of affecting

others’ attitudes and

behavior to achieve an

objective.

4-3

RationalPersuasionRational

PersuasionInspirational

AppealsInspirational

Appeals

PressurePressure ConsultationConsultation

LegitimizationLegitimization IngratiationIngratiation

CoalitionsCoalitions Personal Appeals

Personal Appeals

9Influencing

Tactics

9Influencing

Tactics

ExchangeExchange

Source: Adapted from J. French and B.H. Raven. 1959. “The Bases of Social Power.” In Studies of Social Power. D. Cartwright, ed. Ann Arbor, MI: Institute for Social Research.

POWER

Power• Confusion about influence and power than any other leadership

concepts.

• Power is about influencing others. In other words:

“ Power is the leader’s potential influence over followers”.

The positive use of power, that influence others to achieve

the organizational objectives.

POWER: CASE STUDY

Clark Limited Case• The management services group of Clark Limited was asked by the board of directors

to recommend which of six computer manufacturers should receive the order for a large server and computer system. The board of directors had formal authority to decide from which company the system would be purchased.

• Jim Kenny, the Senior Information Technology Manager, was in charge of the Management Services Group, that included the programmers headed by Bob Turner, and the systems analysts headed by Mike Reilly. Kenny met with the other managers, but disagreed with them about which system to purchase.

• Kenny controlled the information received by the board, and thus he influencing the board’s thinking toward selecting the system he preferred. The board decided to purchase the large server and computer system recommended by Kenney.

• This is not unusual in a vertical hierarchy of authority and decision making. How can this type of bias and politicking be reduced?

Clark Limited case cont.

Kenny controls information given to the board, thereby influencing the board’s decision to purchase a large computer system.

The Board

Kenny Director Management

Services Group

The Board has formal authority to decide from which company a large computer system would be purchased.

The Board asked the Management services group to recommend which of six computer-system companies should receive the order.

Turner Programmers

Reilly Systems Analysts

Turner and Reilly disagree with Kenny disagree with Kenny on who to recommend, but Kenny convinces the Board to go with his decision.

SOLUTION

• One person should never control the information that is provided to the decision makers.

• That person can filter and bias the information.

• Multiple sources of information must be sought.

• The board should have interviewed many people.

• Unfortunately, this is typical of the bottom-up information flow in many organizations.

Remember this when you are in decision-making positions and reliant on others for the information you need.

POLITICSBy: Urooj Fatima

Politics:• Greek word polis “aggregate of many members”

• Politics- means of creating order out of diversity while avoiding forms of autocratic rule for social welfare (Aristotle)

4-27

Organizational perspective (Conventional view)

• Processes, actions, behaviors through which potential power is utilized & realized (Pfeffer, 1992)

• Informal approaches to gaining power through means other than merit or luck (Dubrin, 2001)

Uses• Used primarily to achieve power, either directly or indirectly,

e.g., by being promoted, receiving a larger budget or other resources, or gaining desirable assignments

…

• Networking: Process of developing relationships for the purpose of socializing (Networking is important to leader’s career success)

• Coalitions: An influencing tactic in political behavior. Each party helps the others get what they want.

Politics- Divine or Evil ?

• Considered to be unavoidable phenomenon & taboo in organizations.

• Common perception of it is that pursuing self-interests at the ex pense of others.

• When we win on an issue, we call it leadership; when we lose, we call it politics.

…• Leadership is a dynamic process; varies with time and context

• Globalization creates the demand for new forms of international leadership: as the flows of people , production, investment, information, ideas, and authority across the (Masciulli and Day 2006)

Political leadership

• Managing the varying desires of different people towards organizational outcomes for common good.

• Emerging definition- Good politics & bad politics.

In a nutshell,

• Organizational politics is an inescapable and intrinsic reality.

• There is nothing either good or bad but thinking makes it so (Shakespeare)

NETWORKINGBy Maria Shahid

Networking

• Power, politics and networking have same thing in common

• Network is a learned skill.

• Women are generally not as skilled at networking as men.

How women can hone their networking skills

• The recent CIMA report “Breaking glass: strategies for tomorrow’s leaders”

highlighted increased visibility as a key strategy for success for its female

members.

• Mercer’s recent “Women’s Leadership Development Survey” revealed that

only five per cent of organizational respondents provide a “robust program” to

develop female leaders.

Cont’d

• Self-promotion

• Networking

• Networking within the organization

• Networking outside the organization

NETWORKING: CASE STUDY

THE DOOMED AOL-TIME WARNER MERGER

Case Statement:

you’ve got to focus on (people) to understand what’s going on, what

the context is and make sure you get people aligned around the right

priorities ... it came down to poor execution of what I thought was a

good idea, and that was largely attributable to people and relationships

and resentments and pride and egos.

Networking Process

Perform a self-assessment and set

goals

Create your one-minute self-sell

Develop your network

Conduct networking interviews

Maintain your network

1) Perform a Self-Assessment and Set Goals

• Accomplishments

• Tie your accomplishments to the job interview

• Set networking goals

2) Create Your One-Minute Self-Sell

• Part 1. History

• Part 2. Plans

• Part 3. Question

3) Develop Your Network

• Networking is important, so how do individuals generate networks?

• Personal and Professional contacts

• Where should you go to develop your network?

4) Conduct Networking Interviews

Step 1. Establish Rapport

Step 2. Deliver your one-minute self-sell

Step 3. Ask prepared questions

Step 4. Get additional contacts for your network

Step 5. Ask your contacts how you might help them

Step 6. Follow up with a thank you note and status report

5) Maintain Your Network

• Keep your network informed

• Networking doesn’t stop

• Networking is all about helping others

Research Paper:

“How Leaders Create and Use Networks “

by Ibarra & Hunter, 2007

• Networking – Time Consuming

• Networking – Creating a fabric of personal contacts who will provide support, feedback, insight, resources and information

• Majority of the managers we work with find networking insincere or manipulative – at best, “an elegant way of using people”

Forms of Networking

Cont’d • Just do it

• Mind your mind-set

• Work from the outside in

• Ask and you shall receive

• Stick to it

NEGOTIATIONBy Faiza Majid

Negotiating , چیت بات مذاکرات

The negotiation is a process where two or more parties make a deal to satisfy the interests or needs of each other.

• Networking can lead to negotiating.

Negotiation Cont..

• Negotiating involves:

1. Shared interest (parties want to agree and exchange)

2. Opposing interest (parties want different things and don’t agree on everything)

3. Resulting in a conflict of interest.

• Thus, negotiating can sometimes create a conflict situation

Win-Win Negotiation Strategy

• A win-win strategy is a strategy in which is designed in a way that all participants can profit from it in one way or the other.

• In conflict resolution, a win-win strategy is a conflict resolution process that aims to accommodate all participants.

• Negotiation is generally considered an essential managerial skill (Greenhalgh,2001; Lax & Sebenius,1986; Mintzberg1973)

• This helps to maintain a positive working relationship afterwards.

Stages/Process of Negotiation

Preparation

Discussion

Certificate of Goals

Negotiate towards Win-Win

outcomes

Agreement

Implementation of course Action

The Negotiating Process: No Agreement

• If you cannot come to an agreement:

• Analyze the situation.

• You may also ask the other party for advice (the mediator).

• Look for Alternatives.

• Terminate negotiation process without harming relationship.

Conclusion: Negotiation actually is:

Negotiation:

Case Study & Research Papers

CASE STUDY

“Win-Win Negotiation Badly Executed”

Bayou Steel in Laplace, Louisiana. in January, 1993

This case study discusses some of the critical errors that can be made in a Management and Union Labor negotiation, where Management were

trying to achieve a win-win negotiation.

• Management hired two facilitators to guide through win win negotiation process and helped them to identify each other (parties) concerns

• 90% issues of the contract were resolved & went good but at the economic issue disagreement took place.

• Result: union members walked away.

Case study Concluded.

1. Lack of preparation before meeting.

2. Poor communication between the parties.

3. Resolving issue collectively sometimes preferred over resolving issues one by one, hence increasing the chances to tradeoff/concessionary strategy.

4. It suggests that a strong leadership strategy is an important aspect of securing agreements.

Research Paper # 1

“Initiation Behavior in Negotiations: The Moderating Role of Motivation on the Ability–Intentionality Relationship”

by R Volkema - 2013

• Initial stages of negotiation:

1. Engaging one's counterpart

2. Making a request or demand

3. Optimizing that request

• To complete your negotiation process (3 steps) motivation and ability plays a vital role.

Motivation & Ability Relationship

Research Paper # 2

Current trends in business negotiation research An overview of articles published 1996-2005

by Henrik Agndal Stockholm School of Economics

Crux of RP:

Believed that effective communication within the negotiation process includes the following:

• Seeing the world as the other party views it.

• Expressing ideas in a way that ensures the other person fully understands them.

• Encouraging the other party to share ideas and views without fear that they will be misunderstood or judged.

Case Study & Research Papers Conclusion:

• “Negotiating is the art of reaching an agreement by resolving differences through creativity”

• Although difficult, effective negotiation is not impossible. Create a collaborative and trusting environment for negotiating parties is important.

• Strategic leadership and motivation plays a vital role in successful negotiation.

• Talks may fail at once but do not give up.

• Find out competitive advantage for mutual benefit

• A Good Negotiator Is..→Creative→Versatile→Motivated →KSAOs→Has the ability to walk away

Thank you !