Power and Politics in Global Corporation: Behavioral Issues in Managing across cultures and countries

D. Chao PhD Delhi University India

Social Influence: Attempts to affect others in a desired fashion, whether or not these are successful. Power: The potential to influence others successfully Organizational Politics: Actions by individuals that are directed toward the goal of furthering their own self-interest without regard for the well-being of others or their organizations.

Social Influence, Power, and Politics: How They Are Related

Motive: To satisfy Personal interests Organizational politics Personal Characteristics

Successful Influence (had desired effect)

POWER
Organizational Position Legitimate behavior Motive: To satisfy Organizational goals

Unsuccessful Influence (did not have desired effect)

Tactics of Social Influence: Getting to Yes

Rational Persuasion Inspirational Appeal Consultation Ingratiation Exchange Personal Appeal Coalition Building Legitimating Pressure

Other Tactics of Influence

Friendship/Liking: The more we like other persons or feel friendship for them, the more likely we are to comply with their requests or to accept other forms of influence from them. Commitment/Consistency: Individuals wish to be consistent in their beliefs and actions

Other Tactics of Influence

Scarcity: In general, opportunities, objects or outcomes are valued in inverse proportion to their scarcity. Reciprocity: Individuals generally experience powerful pressures to reciprocate benefits they have received from others.

Individual Power:
A Basis for Influence

Position Power: Influence That Comes with the Office

Referral Power: Power based on ones formal position in an organization.

Legitimate Power: The individual power base derived from ones position in an organizational hierarchy; the accepted authority of ones position.

Position Power: Influence That Comes with the Office

Reward Power: The individual power base derived from an individuals capacity to administer valued rewards to others. Coercive Power: The individual power base derived from the capacity to administer punishments to others. Information Power (Expert): The extent to which a supervisor provides a subordinate with the information needed to do the job.

Uses and outcomes of Power

Source of Influence
Referral

Commitment
Likely if request is important

Compliance
Possible if request is perceived important

Resistance
Possible if request is for something that will bring harm to the leader Possible if leader is arrogant and insulting, or subordinate oppose task goals

Expert

Likely if request is persuasive and subordinate share leaders tasks Possible if request is polite and very appropriate Possible if used in a subtle very personal way Very unlikely

Possible if request is persuasive but subordinates are apathetic about the task goals

Legitimate

Possible if request or Possible if arrogant order is seen as legitimate demands are made or requests do not appear proper Likely If used in a mechanical, impersonal way Likely if used in a hostile or manipulative way

Reward

Coercive

Possible if used in a very helpful non-punitive way

Guidelines for using Power

1.

a.
b. c.

d.

e.

Referral Power: Treat subordinate Fairly Defend subordinates interest Be sensitive to subordinates needs, feelings, etc. Select subordinates similar to oneself Engage in role modeling.

Expert Power
1.

2.
3. 4. 5. 6.

Promote power of expertise Maintain credibility Act confidently and decisively Keep informed Recognize employees concern Avoid threatening subordinates, self esteem

Legitimate Power

Be cordial and polite Be confident Be clear and follow up to verify understanding Make sure request is appropriate Explain reasons for request Follow proper channel Exercise power regularly Enforce compliance Be sensitive to subordinates concerns

Reward Power

Verify compliance Make feasible and reasonable request Make only ethical proper request Offer rewards desire by subordinates Offer only credible rewards

COERCIVE POWER

Inform subordinates of rules and penalties Warn before punishing Administer punishment consistently and uniformly Maintain credibility Punish in private

Personal Power: Influence That Comes from the Individual

Personal Power: The power that one derives because of his or her individual qualities or characteristics.

4 Sources of Personal Power:

Rational Persuasion: Using logical arguments and factual evidence to convince others that an idea is acceptable. Expert Power: The individual power base derived from an individuals recognized superior skills and abilities in a certain area. Referent Power: The individual power base derived from the degree to which one is liked and admired by others. Charisma: An attitude of enthusiasm and optimism that is contagious; an aura of leadership.

Factors which make some individuals more influential:

Definite visions of future of their organizations and how to get there Excellent communicators Inspire trust Make others feel good about themselves

Individual Power
Position Power

Personal Power

Legitimate Power Reward Power Coercive Power Information Power

Rational Persuasion Referent Power Expert Power Charisma

Empowerment:
The Shifting Bases of Power in Todays Organizations

Empowerment: The process in which employees are given increasing amounts of autonomy and discretion in connection with their work.

The Empowerment Continuum: Relinquishing Control Is a Matter of Degree

No Empowerment ( workers are not free to make any decisions about how to do their jobs)

Total Empowerment Power Given To Workers ( workers are free to A do their jobs as they None great Wish)
deal

Group or Subunit Power: Structural Determinants

The Resource-Dependency Model The Strategic Contingencies Model

The Resource-Dependency Model: Controlling Critical Resources

The resource-dependency model of organizational power explains that subunits acquire power when they control critical resources needed by other subunits

The Resource Dependency Model:

Important Resources

Production

Accounting

Marketing

Unimportant Resources
Resources Needed Resources Controlled

The Strategic Contingencies Model: Power Through Dependence

(1)

(2)

(3)

A view explaining power in terms of a subunits capacity to control the activities of other subunits. A subunits power is enhanced when it can reduce the level of uncertainty experienced by other subunits, it occupies a central position in the organization, and its activities are highly indispensable to the organization

Strategic Contingencies Model: Identifying Sources of Subunit Power

High Organizational Centrality

Capacity to Reduce Uncertainty

Marketing

Subunit Power

Organizational Politics: Power In Action

Organizational Politics: The actions by individuals that are directed toward the goal of furthering their own self-interest without regard for the well-being of others or their organization

The Antecedents of Politics: Why and When It Occurs

A wide range of personal and organizational factors influence the occurrence of organizational politics.

Personal Characteristics:

High Machiavellianism High Self-Monitoring Ambition Extraversion Popularity

Organizational Factors:

Ambiguous Roles, Goals Scarce Resources History of Political Behavior High Centralization Conflicting Goals Across Units or Subunits Organizational Maturity or Complexity

Political Tactics: What Forms Do They Take?

(1)

(2)

(3)
(4) (5) (6)

Gaining control over and selective use of information Cultivating a favorable impression Building powerful coalitions Blaming and attacking others Associating with powerful others Creating obligations and using reciprocity

Organizational Politics: Its Effects

Research findings indicate that the greater the frequency of politics in an organization, the lower are job-satisfaction and organizational commitment among its employees (Grandey,etal.1997). Similarly the greater the incidence of political behavior, the stronger the intention of employees to leave (voluntary turnover).

Organizational Politics: Its Effects

Research findings suggest that some people are bothered by politics more than others. For instance, people low in conscientiousness are more strongly affected in terms of reduced on-the-job performance than persons high in conscientiousness (Hochwarter,etal.2000) In a sense, therefore, political antics are most harmful to the weakest links in an organization- those employees who are not top performers anyway

The Ethics of Organizational Politics

Ethics goes well beyond mere compliance with the law. And, society expects companies to go well beyond the ethical minimums. For these reasons- not to mention the long-term success of companies themselves- it is essential for human resource officials to help institute policies that encourage basing personnelrelated decisions on job performance instead of favoritism.

How To Combat Organizational Politics:

Clarify job expectations Open the communication process Be a good role model Do not turn a blind eye to game players

Conclusion: Political behavior may be considered ethical to the extent that it fosters organizational interests over individual greed, respects the rights of individuals, and conforms to prevailing standards of justice and fair play.

THANK YOU !