JULY

CHAPTER 10: POWER AND INFLUENCE IN THE WORKPLACE

The meaning of Power-Power is the capacity of a person, team or organization to influence others

-potential, not actual use-people have power they don't use (may not know they posses_-perception, not necessarily reality

Power and dependence: whoever controls resources, has power over those who don't

Model of power in organization-source of power (legitimate reward coercive expert referent) -->contingencies of power --> power over

Legitimate power-agreement that people in certain roles can request certain behaviours of others-based on job descriptions and mutual agreement-legitimate power range (zone of indifference) varies across national and org cultures-norm of reciprocity - legitimate power as a felt obligation to help others who helped you in the past

Legitimate power: Right to control information flowWheel formation: person in middle has high info controlAll channel formation: these people individually have low information control

Reward and Coercive Power-Reward power: ability to control the allocation of rewards valued by others and to remove negative sanctions-Coercive power: ability to apply punishment, peer pressure is a form of coercive power-Reward and coercive power exist upward as well as downward in hierarchies

Expert Power-the capacity to influence others by possessing knowledge or skills that they value-coping with uncertainty

-organizations operate better in predictable environment-people gain power by using their expertise to: prevent, forecast, absorb

Referent power-Occurs when others identify with, like, or otherwise respect the person-associated with charismatic leadership

Contingencies of PowerSources of power --> Contingencies of power (substitutability, centrality, discretion, visibility) -> power of others

Increasing Non substitutability -few/no alternatives to the resource-increase nonsubstitutability by controlling the resource

-exclusive right to perform medical procedures-control over skilled labour-exclusive knowledge to repair equipment

Centrality-Degree and nature of interdependence between powerholder and others-Centrality is a function of:

-How many others are affected by you-How quickly others are affected by you

Discretion and Visibility-Discretion

-the freedom to exercise judgment-rules limit discretion, limit power-Also a perception - acting as if you have discretion

-Visibility-Make others aware of your presence - more face time, locate office near busy routes-Symbols communicate you power source(s): educational diplomas, clothing etc.. (stethoscope around neck

Power and Influence Through Social Networks-Social networks - people connected to each other through forms of interdependence -Generate power through social capital

-Goodwill and resulting resources shared among members in a social network-Three power resources through social networks

-knowledge sharing-Visibility-Referent power

Social Network Ties-Strong ties

-close-knit relationships (frequent, plenty of sharing, multiple roles)-offer resources more quickly/plentifully

-Weak ties-Acquaintances-Offer unique resources not held by us or people in networks

-Many ties-resources increase with number of ties-limits on number of weak/strong ties one can create

Social Network Centrality-Person's importance in a network-three factors in centrality:

1. Betweenness - extent you are located between others in the network (i.e. information gatekeeper)

2.Degree centrality -- number of people connected to you3.closeness - stronger relationships (Faster/plentiful resources)

-Eg: "A" has highest network centrality due to all three factors; "B" has lowest centrality

Influencing Other-influence -- any behaviour that attempts to alter someone's or more power bases-applies one or more power bases-process through which people achieve organizational objectives-operates up, down and across the organizational hierarchy

Types of Influence-Silent authority:

-following requests without overt influence-based on legitimate power, role modelling-common in high power distance cultures

-Assertiveness:-Actively applying legitimate and coercive power (vocal authority) -Reminding, confronting, checking, threatening

-Information control:-manipulating other' access to information-withholding, filtering, re-arranging information

-Coalition Formation:-group forms to gain more power than individuals alone

1.pools resources/power2.Legitimizes the issue3.Power through social identity

-Upward appeal:-appealing to higher authority-includes appealing to firms goals-alliance or perceived alliance with higher status person

-Persuasion: -Logic, facts, emotional appeals-depends on persuader, message content, message medium, audience

-Ingratiation/Impress. Mgt:-increase liking by, or perceived similarity to the target person

-Exchange:-Promising or reminding of past benefits in exchange for compliance-Includes negotiation and networking

Consequences of Influence tactics Resistance -----> compliance ------> commitmentpeople oppose behaviour --->motivated by external sources(rewards)-->identify with and highly motivated to implement request

Hard Influence Tactics: silent authority, upward appeal, coalition formation, information control, assertiveness Soft influence tactics: persuasion, ingratiation & impression mgt, exchange

Contingencies of Influence Tactics-"Soft" tactics generally more acceptable than "hard" tactics-Appropriate influence tactic depends on:

-Influencer's power base-Organizational position-cultural values and expectations

Organizational politics: behaviours that others perceive as self-serving tactics for personal gain at the expense of other people and possibly the organization

Condition for Organizational Politics-Tolerance of politics-Scarce Resources-Organizational Change-Complex and Ambiguous Decisions

Minimizing Political Behaviour-introduce clear rules for scarce resources-effective organizational change practices-suppress norms that support or tolerate self-serving behaviour-Leaders role model organizational citizenship-Give employees more control over their work-Keep employees informed

CHAPTER 11: CONFLICT AND NEGOTIATION IN THE WORKPLACE

Conflict: the process in which one party perceives that its interests are being opposed or negatively affected by another party

Is Conflict Good or BadNegative consequences of conflict

Wastes time, energy, resources Less information sharing, productivity more organizational politics more job dissatisfaction, turnover, stress Weakens team cohesion (when conflict is within team)

Positive consequences of conflict Better decision (tests logic, questions assumptions) improves responsiveness to external environment increases team cohesion (when conflict outside the team)

Emerging View: Constructive versus Relationship Conflict-Constructive (task-oriented) conflict

-parties focus on the issue while maintaining respect for people having other points of view-Try to understand the logic and assumptions of each position

-Relationship conflict-parties focus on personal characteristics (not issues) as the source of conflict-try to undermine each other's worth/competence-Accompanied by strong negative emotions (drive to defend)

Minimizing Relationship ConflictGoal: encourage constructive conflict, minimize relationship conflict Problem: relationship conflict often develops when engaging in constructive conflict3 conditions that min. relationship conflict during construct conflict:

1. Emotional intelligence2. Cohesive team3. Supportive team norms

The conflict process:sources of conflict -> conflict perceptions and emotions -> <---manifest conflict ->conflict outcomes

Structural Sources of Conflicts -Incompatible Goals: one party's goals perceived to interfere with other's goals-Differentiation: Different values/beliefs, explains cross-cultural and generational conflict-Interdependence: Conflict increases with interdependence, parties more likely to interfere with each other-Scarce Resources: Motivates competition for the resources-Ambiguous rules: creates uncertainty, threatens goals, Without rules people rely on politics-Communication problems: increases stereotyping, reduces motivation to communicate, escalates conflict when arrogant

5 Conflict handling styles 1. Problem solving

-Best when: interests are not perfectly opposing, parties have trust/openness, issues are complex-Problem: other party may use information to its advantage

2.Forcing-Best when: you have deep conviction about your position, quick resolution required, other party would take advantage of cooperation -Problem: relationship conflict, long term relations

3.Avoiding-Best when: conflict is emotionally-charged(relationship conflict), conflict resolution cost is higher than benefits-Problems: doesn't resolve conflict, frustration

4.Yielding-Best when: other party has much more power, issue is much less important to you than other party, value/logic of you position is imperfect-Problem: increases other's expectations; imperfect solution

5.Compromising -Best when: parties have equal power, quick solution is required, parties lack trust/openness-Problem: sub-optimal solution where mutual gains are possible

Organizational Approaches to Conflict Resolution-emphasize super ordinate goals

-emphasize common objective rather than conflicting sub-goals-reduces goal incompatibility and differentiation

-Reduce differentiation

-remove sources of different values and beliefs-eg: move employees around to different jobs

-Improve communication/understanding-employees understand and appreciate each other's views through communication-relate to contact hypothesis-warning: Apply communication/understanding after reducing differentiation

-Reduce interdependence-dividing shared resources -combine tasks-use buffers

-Increase resources-duplicate resources

-Clarify rules and procedures-clarify resources distribution-change interdependence

Types of Third party intervention -mediation, inquisition, arbitration

Choosing the best 3rd party strategy-managers prefer inquisitional strategy, but not usually best approach-Meditation potentially offers highest satisfaction with process and outcomes-use arbitration when mediation fails

Resolving conflict through negotiation-Negotiation: conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence -Need to balance collaborative behaviours (create value) and competitive behaviours (claim value)

Bargaining Zone Model: when your position and opponent's positions is between target and resistance

Strategies for claiming value-Claiming value - aiming for the best possible outcomes for yourself and your constituents 1.Prepare and set goals2.Know your BATNA

-cost o ending negotiation; best outcome through another means3.Manage time

-avoid time pressure of you, avoid escalation of commitment effect4.Manage first offers and concessions

Strategies for creating value-Creating value: use problem solving to help both parties reach the best outcomes1. Gather information

-understand other party's needs/expectations2. Discover priorities through offers and concessions

-make multi-issue proposals

3. Build the relationship (trustworthiness)

-Common backgrounds, mange first impressions ,maintaining positive emotions, act reliably

Situational Influences on Negotiation -Location, physical setting, audience

CHAPTER 12: LEADERSHIP Leadership: the ability to influence, motivate and enable others to contribute toward the effectiveness of the organizations of which they are members

Shared Leadership-the view that leadership is broadly distributed rather than assigned to one person-employees are leaders when they champion change in the company or team-shared leadership calls for

-formal leaders willing to delegate power-collaborative culture - employees support each other-employees able to influence through persuasion

Perspectives of leadership-competency perspective

-personal characteristics that lead to superior performance in a leadership role-several competencies now identified as key influences on leadership potential and of effective leaders

-behavioural perspective-contingency perspective-transformational perspective-implicit leadership perspective

8 Leadership competenciesPersonality -extroversion, conscientiousness (and other

personality dimensions)Self-concept -positive self-evaluation

-high self-esteem and self-efficacy-internal locus of control

Drive -inner motivation to pursue goals-inquisitiveness, action-oriented

Integrity -truthfulness-consistency in words and actions

Leadership Motivation -Motivation to lead others-High need for socialized power

Knowledge of the business -understands external environment -Aids intuitive decision making

Cognitive/practical intelligence -Above average cognitive ability-Able to solve real-world problems

Emotional Intelligence -Perceiving, assimilating, understanding, and regulating emotions

Authentic Leadership

Know yourself----------------------> Be yourself-Engage in self-reflection -develop your own style-Feedback from trusted sources -apply your values-Know your lift story -maintain a positive core self-evaluation

Competency Perspective Limitations1. Implies a universal approach2. Alternative combinations of competencies might work just as well3. leadership in relational, not just something within the person4. Competencies refer to leadership potential not performance

Leader Behaviour -Directive (task-oriented) behaviours

-assign work, clarify responsibilities -set goals and deadlines, provide feedback-establish work procedures, plan future work

-Supportive (people-oriented) behaviours-concern for employee needs-make workplace pleasant-recognize employee contributions-listen to employees

Leader Behaviour Perspective Limitations-These categories mask subcategories of leader behaviour that may be distinct-assumes best leaders display a high level of both supportive and directive styles

-but best style seems to depend on the situation

Servant Leadership- Leaders serve others toward their need fulfillment, personal development and growth-Described as selfless, egalitarian, humble, nurturing, empathetic and ethical coaches-Three main features:

1.Natural calling to serve others2.Maintain a humble, egalitarian, accepting relationship3.Anchor decisions/actions on ethical principals

Path-Goal Leadership-Effective leaders provide the information support, and other resources, and ensure that rewards are linked to good performance-Several employee and situational contingencies to determine the best leader style

Path-Goal Leadership Styles-Directive

-Provide psychological structure to jobs-Task-oriented behaviours

-Supportive -Provide psychological support-People-oriented behaviours

-Participative-Encourage/facilitate employee involvement

-Achievement-oriented-encourage peak performance through goal setting and positive self-fulfilling prophecy

Path -Goal Leadership ModelLeader Behaviours: directive, supportive, participative, achievement-orientedleads toLeader effectiveness: employee motivation, employee satisfaction, acceptance of leaderintercepted by: employee contingencies, Environmental contingencies

Path-Goal Contingencies-Skill and experience

-low: directive and supportive leadership-Locus of control

-Internal: participative and achievement leadership-External: directive and supportive leadership

-Task structure-Nonroutine: directive and/or participative leadership

-Team dynamics -Low cohesion: supportive leadership-Dysfunctional norms: directive leadership

Other Contingency Leader Theories-Situational Leadership Model

-Four styles: telling, selling, participating, delegating-Best style depends on follower ability/motivation-Popular model, but lack research support

-Fiedler's Contingency Model-leadership style is stable -- based on personality-best style depends on situational control-theory has problems but uniquely points out that leaders have a preferred style, not very flexible

Leadership Substitutes-Contingencies that limit a leader's influence or make a particular leadership style unnecessary

-eg: training and experience replace task-oriented leadership- Research evidence: substitutes help, but don't completely substitute for real leadership

Transformational, Managerial, and Transactional Leadership- Transformational leadership

-changing the organization to fit environment-change agents

-Managerial Leadership-effective leaders improve employee performance and well-being in the current situation-applies contingency leadership theories (eg: path-goals)

-Transactional Leaders-influence followers through rewards, penalties and negotiation

Transformational v. Charismatic Leaders - Some leadership models say charismatic leadership is essential for transformational leadership- Emerging views -- charisma differs from transformational leadership-Charisma is a personal trait that provides referent power

-doesn't necessarily attempt to change the organization -transformational leadership is a set of behaviours to bring about change

Transformational leadership model and elements1. Create strategic vision

-image of company's attractive future-motivates and bonds employees-leaders champions the vision

2.Communicate the vision-frame message around a grand purpose-shared mental model of the future-use symbols, metaphors

3. Model the vision-walk the talk-symbolize/demonstrate the visions through behaviour-employees trust leader more

4.Build commitment to the vision-by communicating and modelling the vision-through employee involvement in shaping the shared vision

Evaluating transformational leadership-Transformational leadership is important

-higher employee satisfaction, performance, org citizenship, creativity-Transformational leadership limitations

-risk of circular logic: some research defines transformational leaders by their success rather than their behaviours-Universal theory: need a contingency-oriented theory, need to recognize cultural differences

Implicit Leadership Perspective1. Leadership prototypes

-preconceived beliefs about the features and behaviours of effective leaders2.Romance of leadership effect

-amplify effect of leaders on organizational results-fundamental attribution error-need for situational control

Cultural issues in leadership-Societal cultural values and practices affect leaders:

-shape leader's values/norms-influence decisions and actions-Shape follower prototype of effective leaders

-Some leadership style are universal, others differ across cultures-"charismatic visionary" seems to be universal-participative leadership works better in some cultures than others

Gender Issues in Leadership-Male and female leaders have similar task and people oriented leadership- Participative leadership style is used more often by female leaders-Evaluating female leaders

-still receive negative evaluations as leader due to prototypes and gender stereotypes-But evidence that they are good at emerging leadership styles (coaching, teamwork)

CHAPTER 13: DESIGNING ORGANIZATIONAL STRUCTURESOrganizational structure: division of labour and patterns of coordination, communication, workflow, and formal power that direct organizational activates -Related to many OB topics (eg: job design, teams, power, work standards, information flow)

Division of Labour-Subdividing work into separate jobs assigned to different people-Division of labour is limited by ability to coordinate work-potentially increases work efficiency -Necessary as company grows and work becomes more complex

Coordinating Work Activates1. Informal communication-Sharing information, forming common mental models-Good for flexibility, nonroutine and ambiguous situations -Easiest in small firms-Larger firms apply informal communication through

-Liaison roles-Integrator roles-concurrent engineering

2. Formal hierarchy-direct supervision-assigns legitimate power to manage others-Necessary in most firms, but has problems3. Standardization-process (job description)-output (sales target)-skills (training)

Elements of Organizational Structure -Departmentalization, span of control, formalization, centralization

Span of Control-Number of people directly reporting to the next level

-related to coordination through direct supervision-Wider span of control possible when:

1.Other coordinating mechanisms are present 2.Routine tasks3.Low employee interdependence

Tall vs Flat Structures-as companies grow they:

-Build taller hierarchy-Widen span or both

-Problems with tall hierarchies-Overhead costs-Worse upward information-Focus power around managers, so staff less empowered

Problems with Flatter Structures (Delayering) in Large Firms1.Undermines management functions2.Increases workload and stress3.Restricts management career development

Centralization and Decentralization-Centralization: Formal decision making authority if held by a few people, usually at the top-Decentralization increases as companies grow-Varying degrees of centralization in different areas of the company

-Eg: sales decentralized; info systems centralizedLocus of decision making authorityProduction: middle MgtInfo System: upper MgtSales: supervisory, frontlines

Formalization: the degree to which organizations standardize behaviour through rules, procedures, formal training, and related mechanisms-Formalization increases as firms get older, larger, and more regulated-Problems with formalization

-reduces organizational flexibility-discourages organizational learning/creativity-reduces work efficiency-Increases job dissatisfaction and work stress

Mechanistic vs Organic structures-Mech stucture

-narrow span of control-high formalization-high centralization

-Organic Structure-wide span of control-low formalization-Decentralized decisions

Effects of Departmentalization: how employees and their activates are grouped together-3 functions1. Establishes chain of command2. Creates common mental models, measures of performance3. Encourages staff to coordinate through informal communication

Features of Simple Structures-Minimal Hierarchy: staff reports directly to owner-Roles are fairly loosely defined for flexibility-Informal communication for coordination-Centralized structure: owner makes most decisions

Functional Organizational Structure: organizes employees around specific knowledge or other resources (eg: marketing, production)CEO ---> finance, production, marketing

Evaluating Functional Structures -Benefits:

-Economies of scale-Supports professional identity and career paths-Easier supervision

-Limitations-More emphasis on subunit than organizational goals-Higher dysfunctional conflict-Poorer coordination: required more controls

Divisional Structure: organizes employee around outputs, clients, or geographic areasCEO--> healthcare, lighting products, consumer lifestyle

Divisional Structure-Different forms of divisional structure

-Geographic Structure-product structure-client structure

-Best form depends on environmental diversity or uncertainty

Globally Integrated Enterprise-Few geographic divisions because

-less need for local representation-reduced geographic variation-more global clients

- Globally integrated enterprise-connects work processes around the world rather than replicating them within each country or region-Functional heads are geographically distributed-Firm's "home" country is no longer focus of business

Evaluating Divisional Structures-Benefits

-building block structure: accommodates growth-Focuses on markets/products/clients

-Limitations -Duplication, inefficient use of resources-Specializations are dispersed: silos of knowledge

-Politics/conflict among executives when company changes from one divisional form to another (eg: from geographic to product emphasis)

Team-Based Structure-Self-directed work teams-teams organized around work processes-Typically organic structure-Usually found within divisionalized structure

Evaluating Team-Based Structures-Benefits:

-Responsive, flexible-Lower admin costs-Quicker, more informed decisions

-Limitations-Interpersonal training costs-Slower during team development-Role ambiguity increases stress-Problems with supervisor role changes-Duplication of resources

Matrix Structure (Project-based)-employees are temporarily assigned to a specific project team and have a permanent functional unit

Evaluating Matrix Structures-Benefits

-use resources and expertise effectively-Improves communication, flexibility, innovation-Focuses specialists on clients and products-Supports knowledge sharing within specialty-Solution when two divisions have equal importance

-Limitations-Increases goal conflict and ambiguity-two bosses dilutes accountability-more conflict, organizational politics and stress

Network Organizational Structure-alliance of firms creating a product or service-supporting firms beehived around a "hub" or "core" firm

eg: core firm (in canada) -> product development partner (US), call center (Philippines) etc

Evaluating Network Structures-Benefits

-Highly flexible -Potentially better use of skills and technology-not saddled with same resources for all products

-Limitations-exposed to market forces, less control over subcontractors than in house

External Environment & StructureDynamic Stable-High rate of change-use team-based, network, or other organic structure

-Steady conditions, predictable change-Use mechanistic structure

Complex Simple-Many elements (such as stakeholders)-Decentralize

-Few environmental elements-Less need to decentralize

Diverse Integrated-Several products, clients regions-Use divisional form aligned with the diversity

-Single product, client, place-use functional structure, or geographic division if global

Hostile Munificent-competition and resource scarcity-use organic structure for responsiveness

-plenty of resources and product demand-less need for organic structure

Effects of Organizational Size-As organizations grow, they have:

-more division of labour (job specialization)-greater use of standardization-More hierarchy and formalization -more decentralization

Technology and Structure-Technology refers to mechanisms or processes by which an organization turns out its product or service-Two contingencies:

-variability: the number of exceptions to standard procedure that tend to occur-Analyzability: the predictability or difficulty of the required work

Organizational Strategy -Structure follows strategy

-strategy points to the environments in which the organization will operate-leaders decide which structure to apply

-Innovation strategy-providing unique products or attracting clients who want customization

-Cost leadership strategy-Maximize productivity in order to offer competitive pricing

CHAPTER 14 ORGANIZATIONAL CULTURE DEFINED -Organizational culture is the basic pattern of shared values and assumptions shared within a organization-defines what is important and unimportant-Company's DNA -- invisible, yet powerful template that shapes employee behaviour

Elements of OC-Artifacts of organizational culture: physical structures, language, rituals and ceremonies, stories and legends

-Organizational culture: shared values: conscious beliefs, evaluate what is good or bad, right or wrongShared assumptions: unconscious, taken for granted beliefs, implict mental models, ideal protypes of behaviour

Content of Organizational Culture-relative ordering of values: a few dominant values, : eg: fun-loving, customer-focused- Problems with measuring org culture: oversimplifies diversity of possible values, ignore shared assumptions, adopts an integration perspective -An organization's culture is fuzzy: diverse subcultures (frag), values exist within individuals, not work units