CLC503: Leadership and Change · The grouping of jobs by function (e.g. accounting, sales) or division (e.g. by product, service, ... The Institutional school argues that organisations

CLC503: Leadership and Change 2.1

© 2013 Australian Graduate School of Leadership | http://imia.edu.au | Page 1

CLC503:

Leadership and

Change

Module 2: Critical Change

Issues

Topic 1: Structure, Power,

Politics and Influence

© 2013 Australian Graduate School of Leadership | http://imia.edu.au



Copyright

© 2013 Australian Graduate School of Leadership

Material drawn from various authors remains their copyright and is reproduced for the sole purpose of

reference and study by participants enrolled in this course and is not to be reproduced or used for any

other purpose.

Every effort has been made to comply with copyright law as set out in the Copyright Act 1968 (Cth) and

every effort has been made to trace and acknowledge copyright in our sources. We apologise if any

infringements have occurred and will address the situation when contacted by the copyright owners.

COMMONWEALTH OF AUSTRALIA

Copyright Regulations 1969

WARNING

This material has been reproduced and communicated to you by or on behalf of Australian Graduate

School of Leadership pursuant to Part VB of the Copyright Act 1968 (the Act).

The material in this communication may be subject to copyright under the Act. Any further reproduction

or communication of this material by you may be the subject of copyright protection under the Act.

Do not remove this notice.



Table of Contents Copyright ................................................................................................................... 2

Table of Contents ...................................................................................................... 3

Subject Overview ...................................................................................................... 4

Topic Preparation ...................................................................................................... 4

Organisational Structure and Structural Changes .................................................... 6

Power and Influence ............................................................................................... 19

Politics ..................................................................................................................... 29

Topic Review Questions .......................................................................................... 33



Subject Overview

Topic Preparation

Getting the Most from the Topic

Keep a personal journal to track change issues and events.

Read the readings on the next page.

Read the pages in this topic.

Reflect on the implications of the content given your managerial experience and your current

responsibilities.

Complete the Topic Review Questions at the end of this topic and compare your responses to the

answer guidelines provided.

Take time to consider the areas highlighted for Personal Reflection. These reflection points will enable

you to crystallise your thoughts on the issue/topic so far. Make notes of your thoughts as these may be

used in the teleworkshop.



Readings

Stace D and Dunphy D (2001) Beyond the Boundaries. 2nd Ed. McGraw-Hill:Sydney. Chapters 3 and 4

Beer M, Eisenstat RA. & Spector B. (1990) Why Change Programs Don’t Produce Change. Harvard

Business Review Nov-Dec:158

Katzenbach J. & Santamaria J. (1999) Firing Up The Front Line. Harvard Business Review May-Jun:107

Columbia Accident Report Part 2 NASA

Key Areas of Interest

This topic focuses on the relationships created through the structure of the organisation. It addresses

the broad understanding of theory and practical issues to be considered when ‘designing’ or

‘developing’ organisational change that impacts on organisational structures.

The pressures of global competition have led to a major re-think of how organisations are structured.

The shift is from rigid large bureaucracies to flexible, leaner structures. This has been made possible

through major technological innovations e.g., computers, telecommunications and improved worker

education and knowledge.

Closely related to structure are the issues of power, influence and politics. The physical organisational

structure may be outside your control, but the issues of power and politics are definitely not.

It is critical to recognise that all organisational change, in some way, attempts to alter the power and

political relationship within an organisation. These changes must be managed well, otherwise the

potential for poor performance and repercussions are high.

To assist with this we will use the NASA Columbia Accident Report Part 2 as a case to reflect on the

issues at stake and how they interrelate with each other. You are encouraged to briefly read the

accident report and have it available as you read through this material related to this entire Module.

Learning Outcomes

Understand the key issues associated with organisational structures.

Understand some of the options available when considering structural change.

Understand the various types of power and their implication in managing change.

Understand the issues of influence on organisational change

Understand organisational politics and its implication in managing change.



Organisational Structure and Structural Changes

Organisational Structure

Organisational structure is the arrangement of positions in an organisation. The positions or roles are

intentionally structured to accomplish the goals of the organisation. The issues or variables that need to

be considered are;

Organisation’s size, age, goals and sphere of operations

Managers’ cognitive and conceptual models

Workforce demographics and educational backgrounds

Environment

Industry

Technology

Complexity

National culture

Institutionalisation

Alfred Chandler in (1962) ‘Strategy and Structure’ proposed that an organisation’s structure must be

developed in concert with the strategy and also be in perspective within the total organisation;

Strategy

Structure

Systems

Culture

Technology

Individual competencies

Key tasks and processes

Theoretical Foundation

The theoretical foundation for the structural frame draws heavily on the organisation theory (OT)

tradition. The OT tradition is fragmented into opposing perspectives based on contradictory

assumptions about human nature and organisation phenomena. They differ along such dimensions as

emphasis on managerial choice versus environmental determinism, focus on change versus stability, and

so on. Organisation theory therefore offers more of a menu of choices, rather than a unified framework

of theory.



Structural View

The structural view has evolved from two intellectual sources;

Industrial analysts who wanted to design organisations for maximum efficiency e.g. Frederick

Taylor and Henri Fayol,

This led to principles focussed on specialisation, span of control, authority and delegation of

responsibility.

The Bureaucratic Model Theorists who have sought to conceptualise the ideal organisation,

researchers have included Max Weber, C. W. Perrow and G. Blau,

The ideal organisation model is based on the principles of fixed division of labour, hierarchy

of offices, sets of rules governing performance, separation of personal from private

property and rights and technical qualifications as the basis for selecting personnel.

Key Elements of Organisational Structure

The following is a summary of the key elements found in the discussion on structure. You will most

probably be familiar with them. You need to be aware of their relationships during any discussion of

organisational change.

Work specialisation or the division of labour;

Departmentalisation -

The grouping of jobs by function (e.g. accounting, sales) or division (e.g. by product, service,

region, client) or matrix combination of the above two used by FMCG (“Fast Moving Consumer

Goods”) companies.

Chain of Command -

The formal recognition and allocation of authority, accountability, responsibility.

Span of Control -

The number of workers a manager can effectively manage or supervise.



Key Elements of Organisational Structure

Formalisation -

The guidance of formal rules relating to procedures and behaviour.

Control -

The set of mechanisms used to keep actions and outputs within pre-determined limits.

Job Specialisation -

Numbers of tasks allocated to one job and the worker’s control over those tasks.

Horizontally specialised to the extent that it comprises a few narrowly defined tasks.

Vertically specialised to the extent that the worker has little control of the tasks performed.

Unskilled jobs tend to be narrowly defined in both dimensions.

“Job enrichment” refers to the enlargement of jobs in both dimensions.

Organisational Structure Models

There have been numerous organisational structural models developed and proposed over the decades.

This topic will briefly examine the theoretical aspects of these.

Organisational Development presents a focus of ‘technostructural’ change.

Restructuring to be more flexible and leaner and so, more competitive in the new global

arena. Also more adaptive to the new technologies that support modern business

operations.

Various approaches have been developed to achieve so called ‘technostructural’ change. These will be

covered in the following pages.

Two organisational theories provide insights regarding the process of organisational change;

Environmental Determinism,

Matching Structure and Environment.

Environmental Determinism – applies theories of biological evolution to organisations.

Argues that the environment selects entire groups of organisations for survival or extinction

based on their organisational form.



Matching Structure and Environment

Matching Structure and Environment is a rich body of theory which emphasises managerial attempts to

match the organisation’s resources and structures with opportunities presented by the environment.

Open Systems theories and Structural Contingency theories emphasise the appropriateness of

different organisation design characteristics in different environmental conditions.

The Resource Dependence perspective emphasises that organisations try to manage the

uncertainty created by dependence on the environment for resources.

The Institutional school argues that organisations adopt structures seen by key environmental

actors as being legitimate in order for the organisation to maintain access to key resources.

Transactional Cost theory which explains organisation structure in terms of managerial attempts

to obtain economic efficiencies.

Strategic approach which explains the interdependence of organisation strategy and structure.

Co-ordinating Mechanisms

Co-ordinating mechanisms are the most basic elements of a structure. They are the “glue that binds the

organisation together”, (Mintzberg, 1979 p.334).

These mechanisms are;

mutual adjustment,

direct supervision,

standardisation of work processes, skills and norms.

Mutual adjustment: co-ordination of work through informal communication within operating core.

Direct supervision: one person co-ordinates by giving orders to others; from strategic apex directly to

operating core.

Standardisation of work processes: the programming of the content of the work, i.e. the procedures to

be followed. These emanate from the technostructure.

Standardisation of outputs: specification of the results, these standards emanate also from the

technostructure.

Standardisation of skills: here the worker is taught a body of knowledge and skills which are then

applied to the job, this standardisation is achieved outside the organisation.



Standardisation of norms: here the workers have a common set of beliefs and can achieve co-

ordination based on that.

According to Henry Mintzberg (1979: p.334) these mechanisms fall into rough order as follows;

As organisational work becomes more complicated the favoured means of co-ordination shifts

from mutual adjustment to direct supervision,

There is then a progression to standardisation, usually of work processes otherwise, of outputs or

skills,

Finally there is a reversion back to mutual adjustment.

No organisation can rely on a single one of these co-ordinating mechanisms, all will be found in any

reasonably developed organisation.

Mintzberg H (1979) The Structuring of Organizations Prentice Hall

Organisational Control

Understanding the types and application of organisational control is critical in organisational design. It

uses systems theory in its application.

Output focuses on desired targets, e.g. production, profitability, service levels.

Process - supports managers in determining how tasks will be accomplished through;

Policies, rules and procedures,

Formalisation and standardisation,

Quality management (difference between TQM and QA/ISO).



Comparison of Older and Newer Organisation Structures

20th Century Organisations 21st Century Organisations

Bureaucratic Non-bureaucratic with fewer rules and employees

Multi-levelled Limited to fewer levels

Organised with the expectation that senior

management will manage

Organised with the expectation that management

will lead, lower level employees will manage

Characterised by policies and procedures that

created many complicated internal dependencies

Characterised by policies and procedures that

create the minimal internal dependencies needed

to serve customers.

(Kotter, J., (1996) Leading Change.Harvard Business School Press p.172)

Older Structures

Machine Bureaucracy

Description Features Vulnerabilities

Mechanistic structure

Specialised departments

Efficiency

Control, stability

Executive decision-making

Low adaptability and minimal

innovation

Difficulty of identifying

accountabilities and

performance outputs

Difficulty of cross coordination

between specialist areas

Divisional Structures


Separation of policy from

operating divisions

Product/area decentralisation

Separation of strategy from

operations

Accountabilities clear for line

divisions

Managerial decision-making,

corporate policy setting

Conflict over long-term versus

short-term goals

Corporate headquarters for

removed from customer

feedback

Bolman & Deal (1994), Reframing Organizations Jossey Bass p.75



Pressures for Change

Tall functional hierarchies have too narrow and specialist a focus, are unable to cope with rapidly

changing environment forces.

Long communication channels are dysfunctional in;

Transmission of strategy down the hierarchy,

Transmitting up information about environmental responses to strategy.

The functional hierarchy and divisional structure has become more of a career structure than an

effective organisational structure.

Newer Structures

Strategic Business Units


Fully accountable profit division or

unit within a larger corporate

structure

Full delegation and autonomy to

operational product divisions

Performance oriented, competitive

Focus on bottom line

SBU drift from corporate thrust

Loss of cross corporate synergies

Managerial career blockages

Strategic Networks


Alliance partnerships

Joint ventures

Product/market development links

Technology sharing

Financing consortia

Ability to draw upon and leverage

up strategic intelligence

Maximise cross synergies:

development is cooperative rather

than combative

Resource efficient if high

development costs are shared

May lose intellectual property to

competitors

Strategic networks can be transient

and volatile



Network Divisions


Relationship contracting

Project/venture structures with

outside organisations

Flexibility in use of best available

resources, inside or outside.

Cost effective control over outputs

Network suppliers, distributors

more responsive/relevant than

comparable internal sources

Network resources are potentially

transient

Capacity must be negotiated with

outsiders and contractually

committed

Network can become to stable and

non-innovative

Horizontal Work Teams


Semi-autonomous work teams

Parallel task focus

Project teams working across

functional boundaries

Work is organised around changing

key goals rather than historical

functions.

Teams complete whole tasks rather

than fragments of tasks

Greater work satisfaction

May lead to confused

accountabilities

Costly, if overlaid on a functional

structure

“Teaminess” may cloud a real

output orientation

Bolman & Deal (1994), Reframing Organizations Jossey Bass p.82

Technology and Organisation Design

Technology is both software (knowledge, skills, competencies, application/operation techniques) and

hardware (physical machines, resources). James Thompson (1967) - technologies classified as;

intensive - specialists used to solve problems e.g. hospitals,

mediating - links interdependent parties e.g. banks via EFTPOS,

long-linked - mass production e.g. car manufacture.

Joan Woodward (1965) - technologies classified as;

Small Batch - custom made e.g. hand made cars, couturier,

Continuous Process - products have little variation e.g. fuel refinery, steel making, mining,

Mass Production - assembly line production where one sub-system is highly dependent on

another e.g. car assembly.

Thompson J. (1967) Organizations in Action McGraw HillWoodward J (1965) Industrial Organizations: Behavior and Control Oxford University

Press



Mintzberg suggests that ‘Adhocracy’ is appropriate especially in small R&D or innovative companies.

Adhocracy -

shared decentralised decision making,

extreme horizontal specialisation, each member is a specialist,

few levels of management,

little to no formal control.

Boundaryless Organisation

The concept of the Boundaryless organisation was coined by Jack Welsh former CEO of General Electric.

Growth of global markets and increasing technology, especially real time telecommunications

information transfer, has generated the concept of the boundaryless structure, to generate creativity

and rapid response to this complex, rapidly changing and highly competitive environment. Key factors

are;

Use of telecommuting/telecommunications,

Satellite office,

Eliminate chain of command,

Widened to limitless spans of control,

Replace departments with empowered employee teams,

Use of virtual teams.

The Global Trend toward Decentralisation and Empowerment

Three beliefs are driving company preferences for flatter, more decentralised structures.

1. Traditional hierarchical structures based on functional specialisation don’t work well where

there’s a big need for cross-functional competitive capabilities.

2. Decisions are best made at the lowest organisational level capable of making competent, timely,

informed decisions.

3. Empowering employees to exercise judgment on job-related matters improves motivation and job

performance.



Downsizing

Accelerated through the 1980s and 1990s, it involves the reduction in the workforce through:

Retrenchments

Natural attrition

Redeployment

Early retirement.

It can be achieved through changing the structure by:

Reducing the number of organisational business units

Reducing the number of levels or layers

Outsourcing

Divesting non-core businesses

Restructuring.

Downsizing Tactics

Tactic Characteristics Example

Workforce

Reduction

Headcount reduction

Short term

Fosters a tradition

Attrition

Transfer and outplacement

Retirement incentives

Buyout packages

Layoffs

Organisation

Redesign

Organisation change

Moderate term

Fosters transition and potentially

transformation

Eliminate functions

Merge units

Eliminate layers

Eliminate products

Redesign tasks

Systemic Culture change Change responsibility



Downsizing - Application

Clarify the organisation’s strategy - link change to strategy.

Assess downsizing options and make relevant choices - beware of creating a climate of fear and

retribution. Need to bring all stakeholders (especially unions) on side.

Implement the changes - over communicate, be honest and consider alternatives.

Address the needs of survivors and those who leave - work hours increase, job uncertainty, community

size.

Follow through with growth plans - organisations must move on and grow.

Business Process Re-engineering

Hammer & Champy 1993 - call for radical or major re-thinking of a businesses’ processes. Mostly

focused around technology systems, change using combined hardware and software, such as SAP.

The results have been mixed - lack of clear measures. Failures of between 70% and 90%.

Hammer M. and Champy J. (1993) Reengineering the Corporation Harper Collins

Employee Involvement

This is an extension of the Emery & Trist (Tavistock Human Relations) ‘Quality of Life’ movement.

Rewards,

Safe working environment,

Development & growth of people (knowledge and skills),

Social relevance & integration,

Information.



Work Design

Linked to the organisation’s structure

Goal setting

Rewards

Work environment

Performance management

Duties and responsibilities

Skills, knowledge and competence required

Various approaches to implementing work design;

Engineering Approach - Taylor and scientific management of traditional work flows based on

repetitious tasks.

Motivational Theories - Herzberg and others of job enrichment that seeks to improve task

efficiency and human satisfaction by means of building into peoples’ jobs greater scope for

personal achievement and recognition, more challenging and responsible work, and more

opportunity for individual advancement and growth.

Sociotechnical - Emery & Trist move to teams especially self directed work teams.

Job Enrichment

Direct Feedback - The evaluation of performance should be timely and direct.

New Learning - A good job enables people to feel that they are growing. All jobs should provide

opportunities to learn.

Scheduling - People should be able to schedule some part of their own work.

Uniqueness - Each job should have some unique qualities or features.

Control Over Resources - Individuals should have some control over their job tasks.

Personal Accountability - People should be provided with an opportunity to be accountable for the job.



Problems Associated with Job Design Process

The process is time-consuming and costly.

Employees will not respond to opportunities to satisfy upper-level need if lower-level needs are not met.

Job design programs are intended to satisfy needs typically not satisfied in the workplace.

Resistance of labor unions.

Tangible improvements in performance may not be evident for several years after the beginning of the

job design program.

Structure Overview of Issues

There is no simple answer for structure, it is an ongoing dilemma can challenge for management that

results in driving change. The dilemma is presented through the trade offs in structural change. Below

are outlined some of the issues that can be drawn fro the previous pages.

Centralised vs Decentralised

Differentiated vs Integrated

High Workload pressures vs Low workload pressures

Goal specificity vs lack of goals

Low job creativity vs high creativity

Autonomy vs Independence

Hierarchal control vs loose control



Power and Influence

Structure and Power

The side effects of any organisation structure is that it creates power issues. Organisations are living

entities in that it comprises individuals who for varying reasons combine in either formal or informal

groups. As such with respect to power organisations exhibit the following:

They are comprised of multiples groups all with different interests

There will be different attitudes, beliefs, values and cultures of the workers and the different

groups within the organisation

The organisation has scare resource that will potentially generate conflict in terms of access and /

or first access rights

Bargaining for dominance to access these scare resources and for organisational prominence will

impact on goal setting and decision making

Key Terms

There are a number of key terms associated with power

and these need clarification:

Authority is “the legitimate prerogative to make decisions binding on others. This prerogative has

legitimacy based on the authority figure’s position in the organisation. Authority goes with the

job”.

Power is an individual’s capacity to influence decisions…The ability to influence based on an

individual’s legitimate position (authority) can affect decisions, but one does not require authority

to have such influence”.

Politics are the “efforts of organisation members to mobilise support for or against policies, rules,

goals or other decisions in which the outcome has some effect on them. Politics therefore is

essentially the exercise of power”.

Power and Implementation

Power is a major tool used by managers and leaders. It is critical to understand the key elements and

recognised types of power.



Power is the ability to get someone else to do things you need done in the way you want them to be

done. It is also the ability to make things happen. It is the ability or potential to control the behaviour of

others.

Influence is a behavioural response to the exercise of power.

As experienced managers, we have a general appreciation of power perhaps similar to the accepted

definition. BUT it is critical to understand power’s relationship between ‘Proper Duty’ and ‘Property

Rights’.

This is the deeply embedded value from the belief that if you own something then providing that you do

not damage the rights of other people, they are free to do what they like with their property.

Some general assumptions in management about power are;

From the last page, that a worker sells their labour power to an organisation it becomes the

worker’s duty to make sure that their labour power is available to its purchaser, so that the

purchaser can do with it as they wish.

Managers use power responsibly in pursuit of organisational goals.

Others use it irresponsibly, politically, to resist these objectives.

Power is often equated with conflict, suggesting that it is illegitimate.

A critical question in managing change is to understand ‘what is the role of power and who controls it?’

French & Raven (1959) “The Bases of Social Power” noted five sources or types of power. This is

recognised as the landmark and fundamental building block for understanding and studying power

within groups and organisations and helps us answer this fundamental question.

French’s and Raven’s (1959) ‘five types of power’ model and its relationship to influence:

Position based power

• Reward

• Coercive

• Legitimate

Person based power

• Expert

• Referent

Providepower

that when activated

becomesinfluence

that gets someone to

do something

the way you want it done

Position based power

• Reward

• Coercive

• Legitimate

Person based power

• Expert

• Referent

Providepower

that when activated

becomesinfluence

that gets someone to

do something

the way you want it done



French J. and Raven B. (1959) The Bases of Social Power in Cartwright D (ed Studies in Social Power Institute for Social Research

Managerial Power - Positional and Personal

Effective managers must build and maintain Position and Personal Power;

Position -

Central role within the organisation,

Increase job success through expanding tasks,

Build tasks that are difficult to evaluate,

Increase visibility of job performance,

Increase relevance through networks.

Personal -

Knowledge and information,

Personal attractiveness,

Effort.



Position Sources of Power

Reward Power - influence based on hope of rewards both intrinsic and extrinsic.

Coercive Power - influence based on fear of punishment. A subordinate perceives that failure to comply

with the wishes of a superior would lead to punishment or some other negative outcome.

Legitimate Power - Capacity to influence, derived from the position of a manager in the organisational

hierarchy. Subordinates believe that they “ought” to comply. Also regarded by some as ‘Formal

Authority’.

Personal Sources of Power

Expert Power - Capacity to influence related to the possession of some expertise, special skill or

knowledge that the other person does not have, but needs.

Referent Power - Power based on a subordinate’s identification with a superior. The more powerful

individual is admired because of certain traits and the subordinate is influenced because of this

admiration.

Structural Sources of Power

Other sources of power have been recognised and these are;

Resources - Power occurs when a person has open channels to resources - money, human resources,

technology, materials, customers, and so on.

Decision-Making Power - The degree to which individuals or sub-units can affect decision making

determines the amount of power required.

Information Power - Having access to relevant and important information.



Charles Handy on Power

Handy (1982) identifies three general aspects of power that provide an important context for discussion

of leadership:

Relativity of power: potential impact varies “as the constituency in which it is exercised changes

its membership” (p113)

Balance of power: “possession of a power source does not automatically mean that you can

influence someone.” One type of power can affect another. (e.g.. Money overruling expertise).

Domain of power: few sources of power are valid over all ‘constituencies’.

Relative Weight of Power

As identified by Handy (1982) all sources of power may or may not be evident in an organisation.

Power sources will not only be used differently but some sources will hold greater weight or preference

than others.

For example consider a hierarchical organisation such as emergency services, positional power

especially legitimate power is widely used, whereas in say universities or consultant client relationships,

personal power, especially expert power may be more common. The rise popularity in the charismatic

Christian churches sees a greater use of referent power, which is also common in sporting organisation.

The challenge is to identify the key source of power being used, whilst at the same time recognising that

the use of power is dynamic and all of an organisation’s stakeholders can and potentially will use

different sources of power in different ways.

It is the availability of multiple sources of power tat constrains authorities’ capacity to make binding

decisions.

C Handy (1982): “Understanding Organisations”, Penguin, Middlesex, UK



Dimensions of Power

Lukes (1974) notes 3 dimensions of power that demonstrate a relationship between power and change.

First power is held to influence and is political. It is about control and

ownership of resources especially scare resources. Can create open conflict or

debate between those with the power and those that do not or seek to obtain power.

Second maintain the status quo so conflict or debate is suppressed. Power is about the

control of the process of legitimacy to question so power is used to ensure surface

harmony. Opponents to change are sidelined from the decision making loop.

Third reflects power embedded within institutional norms or culture. This is

ideological power that negates the use of the First or Second dimension as the culture will

determine practices and behaviours related to supporting or resisting change.

Lukes (1974) Power a Radical View Macmillan

Power Summary

The following is adapted from Bermont & Warwick (1978).

‘Are the intentions and ambitions of the drivers of implementation (change) beyond reproach?

Most change agendas (also read models) intend to change the behaviour (workplace) of the worker in a

socially significant manner.

The change drivers (managers or leaders) control the resources to produce change. The intent to

produce change by using these resources is an exercise of POWER.’

This introduces the issue of ETHICS which will be covered in the next topic.



Empowerment

Empowerment is a positive use of power. It is essentially encouraging and/or assisting individuals and

groups to make decisions that affect their work environments. The following flow chart demonstrates

how it can be used.

Influence

Influence is about impacting or affecting the behaviour of others, whereas power is about a potential to

use influence.

So power is only of interest if and when a person elects to gain and exercise power in such a way that

they influence others.

The French and Raven graphic presented a simplistic relationship of power and influence. It is in fact a

far more complex relationship between the context within which influence is exerted, the rewards or

punishment available to the holder of influence and the willingness to comply or resist the influence.

Empowerment feelings are translated in

behavior (i.e. actively directed towards

accomplishing tasks).

Feelings of empowerment and strengthening of

effort-performance expectations.

Remove conditions leading to

powerlessness; provide self-efficacy information to sub-

ordinates.

Implement empowerment

strategies -participative

management, goal-setting, merit pay.

Identify existing organisational

conditions that lead to members’feelings of

powerlessness.

Empowerment feelings are translated in

behavior (i.e. actively directed towards

accomplishing tasks).

Feelings of empowerment and strengthening of

effort-performance expectations.

Remove conditions leading to

powerlessness; provide self-efficacy information to sub-

ordinates.

Implement empowerment

strategies -participative

management, goal-setting, merit pay.

Identify existing organisational

conditions that lead to members’feelings of

powerlessness.



Charles Handy on Power and Influence

Handy (1982) follows up his three aspects on power with six methods of influence:

Force: derives from physical or resource power; coercive. “Threat” may be enough. Usually

effective and short-lived.

Exchange: i.e., bargaining, negotiating. Largely from position or resource power. Rewards may be

tangible or intangible May be self-cancelling and short-lived on a transaction-by-transaction basis.

Rules and procedures: Largely from position power. Focus on a general constituency rather than

on specific individuals. May either sanction or prohibit. Usually long-lasting & non-evaluative.

Persuasion: based on logic, argument, evidence. Usually “the method of first resort”, but easily

contaminated by other methods. Stems largely from expert or personal power.

Ecology: i.e., the organisation’s physical, psychological and sociological environment. Modifying

aspects of this environment is a powerful tool of influence. Often neglected and blamed after the

event for poor outcomes.

Magnetism: application of personal power; widely used in religion, politics etc. Personal and/or

expert power and trust. Can distort or displace rationality. Is fragile and difficult to mend or

retrieve.

Choice of a Method of Influence

Handy argues that two general considerations underlie the choice of a method of influence:

Credibility: applies totally to personal and expert power, and partially to the other sources. May develop

from track record, hearsay, observed behaviour, apparent congruence of objectives and style with

expectations of subordinates.

Multiplex or uniplex: attempts to influence are more likely to succeed if based on more than one source

of power.



Handy’s Three Mechanisms for Adjusting To Influence

This is supported by three “mechanisms” which can be used to adjust for the level of influence. Note

the similarity with Yukl’s Influence Outcomes

Compliance: individuals accept influence because they have to.

Internalisation: commitment that is self-maintaining and independent of the original source of

influence. Recipients adopt the proposal as their own, perhaps even denying the influence of the leader.

Is the most difficult mechanism to activate, but also the most lasting.

Identification: recipients adopt the proposal because they identify with the initiator. Often linked with

magnetism, even dependency. Very effective but fragile and may be short-lived. Not necessarily

transferable to other constituencies.

C Handy (1982): “Understanding Organisations”, Penguin, Middlesex, UK

Influence Tactics

Yukl (1994) identified that there are behavioural tactics that are used to enhance power and the ability

to influence. There are a number of tactics and they require different skills. Their effectiveness varies

by person (traits/personality), situation and experience they have in using the tactic. They are self-

evident. The list includes

Leading by example

Rational persuasion

Developing a reputation as a subject matter expert

Exchanging favours and bargaining

Inspirational appeal and emotional display

Personal magnetism

Consultation

Forming coalitions

Silent treatment – passive influence

Ingratiation

Joking and kidding

Yukl G. (1994) Leadership in Organizations 3rd ed Prentice Hall



Yukl and Tracy (1992) examined the relative effectiveness of influence tactics. Effectiveness was based

on the tactic that led to task commitment and that was used by managers who were perceived to be

effective by the various raters.

The most effective were:

Rational persuasion

Inspirational appeal

Consultation

The least effective were:

Pressure

Coalition

Appealing to legitimate authority

Integration and exchange were moderately effective for influencing team members and peers.

Yukl G. and Tracy J. (1992) Consequences of Influence Tactics Used With Subordinates Peers and the Boss in Journal of Applied Psychology

August p 526

Identifying Power Sources

From your own perspective, which influence tactic/s do you prefer to use? Do you use these

consciously or unconsciously? If unconsciously then how do you know when you are using them? What

feedback loops do you have or use to measuring your effectiveness in influencing people?

Now reflect on those in a leadership position who influence you. Which influence tactic/s do they use?

How effective are these and how do you respond to them? With respect to influence effectiveness what

feedback do you provide to your leaders and how well do they read and/or respond to this feedback?



Politics

Politics and Behaviour

Organisational Politics, is the management of influence to obtain ends not sanctioned by the

organisation or to obtain sanctioned ends through non-sanctioned means of influence.

Political behaviour in an organisation?

Behaviour that usually is outside the legitimate, recognised power system.

Behaviour that is designed to benefit an individual or sub-unit, often at the expense or the

organisation in general.

Behaviour that is intentional and is designed to acquire and maintain power.

Playing Politics

Game Playing - Political behavior in organisations has been described by many researchers in terms of

game playing.

Political Influence Tactics - Individuals and groups engage in political behavior in order to influence the

perceptions or behavior of other individuals and groups.

Impression Management - A political strategy which refers to actions individuals take to control the

impressions that others form of them. It represents a deliberate attempt to leave a desirable impression

on others. The desired impression may or may not be an accurate one.

Politics and Organisational Change

Organisational change, particularly large scale change, brings with it potential destabilisation of

established power bases and erosion of resources to particular individuals or groups.

Individuals and groups become concerned with how the changes affect their own power and influence,

and they will act accordingly.

Some groups will become less powerful, while others will gain influence.

Those who lose power will act defensively and will seek to preserve the status quo. Those who perceive

an improvement in their position will tend to push heavily for change.



There is a tendency for individuals and groups to pursue their own interests, regardless of the

organisation’s present goals and objectives.

The result is the greater the level of change needed, the greater the level of political activity within the

organisation.

Significant organisational changes are frequently accompanied by conflicting interests, distorted

information and political turmoil.

Key Assumptions on Politics

Organisations are coalitions composed of varied individuals and interest groups (for example ,

hierarchical levels, departments, professional groups, gender and ethical sub-groups).

There are enduring differences among individuals and groups in their values, preferences, beliefs,

information and perceptions of reality. Such differences change slowly, if at all.

Most of the important decisions in organisations involve the allocation of scarce resources; they are

decisions about who gets what.

Because of scarce resources and enduring differences, conflict is central to organisational dynamics, and

power the most importance resource.

Organisational goals and decisions emerge from bargaining, negotiation and jockeying for position

among members of different coalitions.

Political Implications for Organisational Change

The process of organisational change is inherently a political one.

Research has shown that 50% to 60% of the variability in organisation structure can be attributed to

strategy, size, technology and environment.

A substantial proportion of the balance can be explained by those in a position of power choosing a

structure that will as far as is possible, maintain or enhance their control.

Structural decisions are not rational. These decisions arise from a power struggle between special

interest groups or coalitions, each arguing for a structural arrangement that best suits them.

According to Kotter (1996: pp.51-52):



“..major change is difficult to accomplish, a powerful force is required to sustain the process,

..a strong guiding coalition is needed - one with the right composition, level of trust and shared

objective.

Building such a team and charging it with the carriage of the change programme is an essential

preliminary step in successful organisational change”.

Key Political Skills Required

Agenda setting - two elements;

Vision: balancing the long term interests of the parties involved.

Strategy for achieving the vision: that recognises the full range of

concerns of the competing internal and external stakeholders.

With the vision articulated, support for the change must be mobilised and opposition to the change

neutralised.

“It makes no sense to plunge into a minefield without knowing where the explosives are buried. Yet

managers do it unwittingly all the time when launching new initiatives”.

They should map the political domain;

Determine channels of informal communications,

Identify the principal agents of political influence,

Analyse the possibilities for both internal and external mobilisation,

Anticipate the strategies that others are likely to employ.

Key Political Skills Required

Networking and building coalitions;

Figure out whose help is needed,

Develop relationships with these people so that they will be there when needed,

Recruit “cheerleader” peers, managers of related functions, stakeholders in the issue,

potential collaborators,

“Horse trade” – promise rewards in exchange for resources and support.

Bargaining and negotiating;

Two approaches either to “create value” or “claim value”,



Choice is dictated by the answers to the following questions:

How much opportunity is there for a win-win solution?

Will I have to work with this person again?

If an agreement can make everyone better off it makes sense to create value.

Value Creating - creates a win-win result:

More consistent with the structural or human resource view than the political one.

Four “rules of thumb” to create value:

- Separate the people from the problem,

- Focus on interests not positions,

- Invent options for mutual gain,

- Insist on objective criteria.

Value claiming - produces a win-lose result:

Tactics used better represent the political perspective.

Involves convincing the other party:

- They want what you have to offer much more than you want what they have,

- You have all the time in the world, while they are up against a deadline.

Political Tactics Used to Gain Influence

Tactics used to influence others fall into three categories;

Reason - persuasion based on values, needs or facts, (although facts may be chosen selectively).

Reciprocity - an instrumental approach, based on exchange (“You scratch my back and I’ll scratch

yours”) or ingratiation and the obligations it engenders.

Retribution - based on threats, intimidation and coercion.

Choice of which tactics to use depends on relative power, likely compliance of others set in the context

of the organisation’s culture.

Any player of a game has a game tactic. Research into Political behaviour has identified the following 7

most commonly ploys used by managers when seeking to use influence;

Reason – facts or information are used selectively to mount (seemingly) logical or rational

arguments.

Friendliness – the use of flattery, creation of goodwill, prior to making a request.



Coalition – joining forces with others so as to increase one’s own influence.

Bargaining – exchanging benefits and favours in order to achieve a particular outcome.

Assertiveness – being forceful in making requests and demanding compliance.

Higher authority – gaining the support of superiors for a particular course of action.

Burnes B, (2000) Managing Change: A Strategic Approach to Organisational Dynamics 3rd Ed Prentice Hall p. 177

Managing the Political Dynamics of Change

First, assess the level of power of the change agent – in order to determine how it can be used to

influence others to support that change.

Second, identify key stakeholders – these are the people or groups who have an interest in the changes

and need to be influenced to accept or support the changes.

Third, influence key stakeholders in order to amass sufficient critical mass for change.

Topic Review Questions

What are the pressures acting on current structures within your organisation?

What are the likely structural change consequences of these pressures over the next five years?

Compare your responses (one page in total) to the answer guidelines provided and be prepared to

discuss them at the next teleconference.

Documents

CLC503: Leadership and Change · The grouping of jobs by function (e.g. accounting, sales) or division (e.g. by product, service, ... The Institutional school argues that organisations