t1 chapter12.ppt

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BITS PilaniPilani | Dubai | Goa | Hyderabad

MMZG514 (Lecture # )Dr. Anubha Dadhich, Department of Management, BITS

Pilani.



BITS PilaniPilani | Dubai | Goa | Hyderabad

Chap # 12 (T1)

Leadership Power and Influence



BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Three Kinds of Influential Leadership

• Transformational leadership

• Charismatic Leadership

• Coalitional Leadership




Transformational leadership

• Transformational leadership is characterized

by the ability to bring about significant change

in both followers and the organization.

Transformational leaders have the ability to

lead changes in an organization’s vision,

strategy, and culture as well as promote

innovation in products and technologies.

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5

Transactional versus Transformational

Leadership

Transactional leadership

a transaction or exchange

process between leaders and

followers

Transformational Leadership

leadership characterized by the

ability to bring about significantchange in followers and the

organization




Charismatic Leadership

• Charismatic leaders have an emotional impact on

people and inspire them to do more than they would

normally do, despite obstacles and personal sacrifice.

• They may speak emotionally about puttingthemselves on the line for the sake of a cause and

they are perceived as people who persist in spite of

great odds against them.

• Charismatic leaders often emerge in troubled times,

whether in society or in organizations, because a

strong, inspiring personality can help to reduce stress

and anxiety among followers. 6


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Charismatic leadership vs transformational

leadership

• Charismatic leadership and transformational

leadership are not the same.

• Whereas transformational leadership seeks to

increase follower engagement and empowerment,charismatic leadership typically instills both awe and

submission in followers.

• Followers admire both charismatic and

transformational leaders, want to identify with them,

and have a high degree of trust in them.

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8

Distinguishing Characteristics of Charismatic and Noncharismatic

Leaders

NoncharismaticLeaders

Charismatic Leaders

Likableness Shared perspective makes

leader likable

Shared perspective and

idealized vision make

leader likable and an

honorable hero worthy of

identification and imitation

Trustworthiness Disinterested advocacy in

persuasion attempts

Passionate advocacy by

incurring great personal

risk and cost

Relation to status quo Tries to maintain status

quo

Creates atmosphere of

change

Future goals Limited goals not too

discrepant from status quo

Idealized vision that is

highly discrepant from

status quo



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Noncharismatic

Leaders

Charismatic Leaders

Articulation Weak articulation of goals

and motivation to lead

Strong and inspirational

articulation of vision and

motivation to lead

Competence Uses available means to

achieve goals within

framework of the existing

order

Uses conventional means

to transcend the existing

order

Behavior Conventional, conform to

norms

Unconventional, counter-

normative

Influence Primarily authority of

position and rewards

Transcends position;

personal power based on

expertise and respect and

admiration for the leader



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Dark side of charisma

Personalized:

self-aggrandizing, nonegalitarian, exploitative.

Based on caring about self.

Detrimental impact on long-term organizational purpose Socialized:

empowering, egalitarian, supportive.

Based on valuing others.

Related to successful organizational purpose



Coalitional Leadership

• Coalitional leadership involves building a

coalition of people who support the leader’s

goals and can help influence others to

implement the leader’s decisions and achieve

the goals



Four steps for effective coalitional leadership

• Coalitional leaders do lots of interviews.

• Coalitional leaders visit customers and other

stakeholders

• Coalitional leaders develop a map of

stakeholder buy-in

•Coalitional leaders break down barriers and

promote cross-silo cooperation

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Power and Influence

Power

– The ability of one person or department in an organization to

influence other people to bring about desired outcomes

Influence – The effect a person’s actions have on the attitudes, values,

beliefs, or actions of others

Authority- The right to influence another person

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Reward Power - agent’s ability to control the rewardsthat the target wants

Coercive Power - agent’s ability to cause anunpleasant experience for a target. Should be

reserved for disciplinary situations.Legitimate Power - agent and target agree that agent

has influential rights, based on position and mutualagreement

Referent Power - based on interpersonal attraction.Example would be a mentor. Can have a dark side.

Expert Power - agent has knowledge target needs



Responses to the Use of Power

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Compliance Resistance Commitment

Position Power Personal Power



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Power: Compliance or Effectiveness

Compliance: Focused on doing things right(management)

Reward, Coercive, Legitimate power

Least effective but most often used my managers

Followers do just enough work as is necessary to

satisfy the leader

Effectiveness: focused on doing the right

thing (leadership) Referent, expert power

Develop through interpersonal relationships with

employees



Characteristics That Affect Dependency and Power

in Organizations

Non

substitutability

Leader hascontrol over:

Resources seen

as unimportant

Widely available

resources

Resources with

acceptable substitutes

Low dependency

on leader = lower

power

Leader hascontrol over:

Resources seen as

very important

Scarce resources

Resources with

no substitutes

High dependency

on leader = higher

power

Importance

Scarcity



Strategic Contingencies that Affect

Leader Power in Organizations

19

Increased Power

Interdepartmental

Dependency

Control overInformation

Organizational

Centrality

Coping with

Uncertainty



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Four Leader

Frames of

Reference

Mind-set: Sees

organization as

machine,

economics, plansEmphasis: Goals,

systems,

efficiency, formal

authority

Dangers: Rigidity

and tyranny

Mind-set: Sees

organization as

family, belonging,clan

Emphasis:

People, support,

empowerment

Dangers: Lack of

content orsubstance

Mind-set: Sees

organization as

jungle, power,

schemes

Emphasis:

Resourceallocation,

negotiation,

coalition building

Dangers: Power

plays for purpose

of self-interest

Mind-set: Sees

organization as

theater, spiritual

meaning, dreams

Emphasis:

Vision, culture &

values, inspiration

Dangers:

“Messiah”

complex

1. Structural

2. Human

Resource

3. Political

4. Symbolic



Politics

• Activities to acquire, develop, and use power

and other resources to obtain desired future

outcomes when there is uncertainty or

disagreement about choices• People who want to increase their power

(influence) make sure their activities are

visible and appreciated by others.

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Conditions that encourage political activity

Unclear goals

Autocratic decision making

Ambiguous lines of authority

Scarce resources

Uncertainty

Performance appraisal process




Seven Principles for Asserting Leader Influence

1. Use rational persuasion

2. Encourage people to like you (be likeable)

3. Rely on the rule of reciprocity

4. Develop allies

5. Ask for what you want

6. Remember the principle of scarcity: when things are less available,

the become more desirable. Learn to frame requests and offers to

highlight unique benefits and exclusive information being provided.

7. Extend formal authority with expertise, credibility, and trust.

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Guidelines for Ethical Action

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Is the action

consistent

with the

organization’s

goals, rather

than beingself-motivated

purely by self-

interest?

Does the

action

respect the

rights of

individuals

and groupsaffected by

it?

Does the

action meet

the

standards of

fairness and

equity?

Would you

wish others

to behave in

the same

way if the

actionaffected

you? E t h i c a l C

h o i c e



THANK YOU !!

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