Managing People in OrganizationsDavid Patient December 9,

2013

Dear, never forget one little point. It's my business. You just work here. (Elizabeth Arden, to her husband)

Agenda – December 9

• Power • Case: Lisa Benton• Article: Managing your boss

Power

• Potential• Dependence• Discretion

Power• Refers to a capacity that A

has to influence the behavior of B so that B does something he or she would not otherwise do

Dependence B’s relationship to A when

A possesses something that B requires

Dependency: Key to Power• Importance

– The things you control must be important• Scarcity

– A resource must be perceived as scarce• Non-substitutability

– The resource cannot be substituted with something else• To increase the dependency of others on you, you need to

– Control things viewed as important– The resources must be viewed as scarce– The resource must have few or no substitutes

(nonsubstitutability)

Bases of Power (Raven & French)

POSITION POWER

• Coercive power• Reward power• Legitimate power• Information Power

• Coercive power - One reacts to this power out of fear of the negative results that might occur if one failed to comply.

• Reward power – People comply with the wishes or directives of another because doing so produces positive benefits

• Legitimate power - represents the formal authority to control and use organizational resources

• Information power - comes from access to and control over information

Bases of Power (PDIO)POSITION POWER 2 – Sources of position power

• Relevance• Centrality• Autonomy• Visibility

Sources of position power• Relevance – positions have more relevance (power)

when they are closely aligned with corporate priorities– E.g., R&D managers in a company based on innovation– Line managers versus managers in staff or support functions

Sources of position power• Centrality – central positions give control over

access to important resources, including information and other people

Sources of position power

• Autonomy – the more discretion or freedom to make choices, the more power a person will have – Versus a person whose choices are

constrained, limited

Sources of position power

• Visibility– the more a person is visible within an organization, and receives credit for their initiatives and performance, the more power they will have– Versus a managers who performs well, but in

relative obscurity …..

PERSONAL SOURCES OF POWER

• Expert power• Referent power• Charismatic power

• Expert power - influence wielded as a result of expertise, special skill, or knowledge

• Referent power - based on identification with a person who has desirable resources or personal traits

• Charismatic power - extension of referent power stemming from an individual’s personality and interpersonal style

Evaluating the Bases of Power• Coercive power tends to result in negative performance

responses from individuals, decreases satisfaction, increases mistrust, and creates fear.

• Legitimate power does not have a negative effect, but does not generally stimulate employees to improve their attitudes or performance, and it does not generally result in increased commitment.

• Reward power may improve performance in a variety of situations if the rewards are consistent with what the individuals want as rewards.

• Expert power relies on trust that all relevant information is given out honestly and completely.

Assessing power dynamics• Identify interdependencies among relevant

parties• Determine sources of power of relevant

parties• What are underlying differences among

parties? How are these reflected in perceptions, assumptions, and conflict?

• Analyze the broader context• ……… UPDATE REGULARLY

Influence tactics• Push tactics– Assertiveness– Reasoning, rationality– Coercing– Stating expectations

VERSUS

• Pull tactics– Listening– Disclosing– Exchange– Finding common ground

Role playYou are the leader of a group that is trying to develop a website for a new client. One of your group members, who was assigned the task of researching and analyzing the websites of your competitors, has twice failed to bring the analysis to scheduled meetings even though he knew it was due. Consequently your group is falling behind on the project. As leader of the group, you decide to speak with your team member.

Give specific examples of 4 different types of power you could use to try to change their behavior.

1. What kind of influence is most likely to result in the desired behavior?

2. What will have the most long-lasting efects?3. What effect will using the different types of power have

on the ongoing relationship?4. Which forms of power are considered the most

acceptable? The least acceptable?

• What should a recent MSc graduate entering a new job do to maximize their power and accelerate their career progress?

MBA’s act like they know a lot more than they do. The only way to learn is on the job, and your formal education won’t help you. I’ve known some Harvard MBA’s, and I don’t like them. (Deborah Linton)

Lisa Benton – General questions

• How did Benton get into this mess?

• What could she have done differently?

• What (specifically) should she do now?

Deborah Linton• First meeting• Perceptual biases• Personal style• Sources of power

– Position• Legitimate• Coercive• Reward

– Personal• Expert• Referent

• Why does Linton behave the way she does?

Ron Scoville

• First meeting• Personal style• Sources of power?– Referent?– Network?

• Why does Scoville behave the way he does?

Lisa Benton

• Why is Benton behaving this way?• What sources of power does she have

How did she get into this mess?

• Did she take the right job?– Two important questions:

• Fit between job and who she is? (Opportunities for success)• Fit between job and who she wants to be? (learning opps)

– Research conducted • Company and division?• Position and manager?• Power dynamics, manager, colleagues?• Discrepancies?

– Personal fit and motivation?– Professional fit and experience?– Other factors (individuals, building, image, ..)?

How did she get into this mess?

• Benton did not understand the power dynamics and her colleagues– Deborah Linton– Ron Scoville– Interdependencies among parties– Differences among parties– Sources of power?

How did she get into this mess?

• Benton did not recognize her own sources of power– Expertise, skills, knowledge– Experience (Right-Away)– Network• Jack Vernon, Bob Mitchell• Peers

How did she get into this mess?

• Benton missed opportunities for action– First meeting with Linton– First meeting with Scoville– Seeing Richard Clark– Staff ad agency meetings– The typing incident (with Vernon)– The copying incident (with Scoville and Linton)– Conversation with Jack Vernon– Performance evaluation by Linton

Turning points?

• How could Benton have handled the following situations differently:– Her first meeting with Linton?– The copying incident?– Her chat with Vernon about

whether she was happy at work?– Her performance evaluation– The final yelling incident with

Scoville

What should Benton do now?

• Stay at or leave Houseworld?

• If she stays:– How to mend relationship with

Linton?– How to mend relationship with

Scoville?– Other actions?

Lisa Benton - Part B

• Does this change your recommendations?• Why was Linton behaving in those ways?• What does the end of the story teach us ...?

Article – Managing Your Boss• Understand your manager and her context:

– Goals and objectives– Challenges and pressures– Strengths and weaknesses– Preferences, biases, blindspots– Communication, interpersonal and work style

• Understand yourself• Work on the relationship

– Establish clear (mutual) expectations– Keep your manager informed– Develop trust– Ask for feedback– Complement their weaknesses– Use their time and resources wisely– Increase their effectiveness

Article – Managing Your Career• To build power over your career:– Seek positions that “fit” and offer learning opportunities– Use the “fit” to develop relationships and track record of

success– Use the learning opportunities to develop expertise and

skills– Develop personal network in terms of size, reach, and own

centrality– Focus on achieving organizational objectives, vs. Personal

ambitions– Seek opportunities to develop and display leadership

competencies– Set career objectives, and use to evaluate opportunities– Invest power to create more power

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Lesson 5 – Most important points• Power and politics

– Understand different sources of power (position, network, and personal)

• Lisa Benton– Apply material on power and politics to a situation of a new MBA

graduate facing a hostile, challenging professional situation– Discuss the sources of power available to a fresh graduate

• Managing your boss– Explore ways to develop a more productive relationship with your

manager– Use material to better understand how to build and use power to

advance careers

For December 16

• Case: Rob Parsons A *• Article: Conducting a performance appraisal

interview

* = Read and be prepared to discuss!!!

Questions?Thoughts?

Comments?

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