Power, Politics, and Ethics.

Power

• Connotation—good bad. Why?

Sept 26 read Enron p585

• Answer questions

• What political tactics were used see 578. Explain.

• What could be done?

Goals

• Social power and link to leadership styles and effectiveness.

• Power, politics, ethics.

• Impression management/career management.

Social Power

Social Power ability to get things done with human informational, and material resources

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Five Bases of Power

1) Reward Power 2) Coercive Power3) Legitimate

Power positive and negative

4) Expert Power5) Referent Power

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Link to leadership style.

Which style are generally most effective.

• Good supervisors more likely to use expert and reward power.

• Bad supervisors more likely to use coercive power.

Question

• Why the emphasis on poor performance.

• Video Valassis.

Delegation/empowerment

• Barriers to it:

• Low trust

• Little job definition

• Punishment for taking risks (not doing things right).

• Little control

• (substitutes for leadership).

Book offers little on Doing it right

• Information sharing.

• Expect performance problems and work through them.

• Hire self-motivated individuals.

• Often rely on teams (peer pressure)

• Using the right incentives.

Impression Management

• Impression Management getting others to see us in a certain manner

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Generic Influence Tactics

1) Rational persuasion (blow your horn)

2) Inspirational appeals3) Consultation

(participation)4) Ingratiation (acting

like others)5) Personal appeals6) Exchange (quid pro

quo)7) Coalition tactics8) Pressure9) Legitimizing tactics

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McGraw-Hill .

Darker Side of Power

Organizational Politics

• Organizational Politics intentional enhancement of self-interest

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McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Lots of examples

• Major issues is appointments to boards of directors and corporate governance.

• Agency theory vs Stewardship theory.

Video Wall Street Takeover of Airline firm.

Fissures in Organizations

• Two opposing views– especially in change efforts. Old way is good, new way is better. Classic story of successful change with Pet foods.

Resistance to change is politics.

Political Tactics

1) Attacking or blaming others2) Using information as a political

tool3) Creating a favorable image

(impression management)4) Developing a base of support5) Praising others (ingratiation)6) Forming political coalitions with

strong allies7) Associating with influential people8) Creating obligations (reciprocity)

16-18Table 16-2

McGraw-Hill

Are You Politically Naïve, Sensible, or a Political Shark?

Bully; misuse information, cultivate and use “friends” and other contacts

Manipulate; use fraud and deceit when necessary

Self-serving and predatory

Politics is an opportunity

Sharks

Negotiate, bargain

Network; expand connections; use system to give and receive favors

Further departmental goals

Politics is necessary

Sensible

None—the truth will win out

Tell it like it is

Avoid it at all costs

Politics is unpleasant

Naïve

Favorite tactics

Techniques

Intent

Underlying attitude

Characteristics

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McGraw-Hill

Summary

• Power required as a leader, but power has a dark side.

• How will you manage power.

• How will you manage power influencing?

• Last Video AA video