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Topic 3

Part One: Individuals As Leaders

Influencing: Power,
Politics, Networking,
and Negotiation

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use. 5-1
Learning Outcomes
1) Explain the differences between position power and personal
power.
2) Discuss the differences among legitimate, reward, coercive,
and referent power.
3) Discuss how power and politics are related.
4) Describe how money and politics have a similar use.
5) List and explain the steps in the networking process.
6) List the steps in the negotiation process.
7) Explain the relationships among negotiation and conflict,
influencing tactics, power, and politics.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use. 5-2
Warm-up
Form groups of five to eight (preferably with people you do
not know or do not know well) to explore what leadership
power means. Free-associate what comes to mind when
you hear the words “leadership power”. What do you feel
and think?

As a group, create something using pictures, symbols,


words, mime, or a physical demonstration or an activity to
represent your understanding of “leadership power”.

You have 15 minutes.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Power
• Recall – leadership is the influencing
process of leaders and followers.
• Power is the leader’s potential influence
over followers.
> Power is the potential to influence, not the
actual use of power.
> Often the perception of power influences
others.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Sources of Power
• There are two sources of power:
> Position power – derived from top management,
and delegated down the chain of command, and
> Personal power – derived from the followers
based on the leader’s behavior.
o Nonmanagers can have personal power but only
managers can have position power.
o Successful leaders share power (empowerment) by
pushing power down the chain of command.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use. 5-5
Discussion Questions

• Is power good or bad for organizations?


• Can management stop the use of power
and politics in their organizations?

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use. 5-6
Exhibit 5.1
Sources and Types of Power
with Influencing Tactics

We will discuss these seven types of power and explore ways


to increase each type with influencing tactics, or actions
You can acquire power without taking it away from others.

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Legitimate Power
• Legitimate power is based on the user’s
position power, given by the organization.
> Appropriate use of legitimate power:
o When asking people to do something that is within
the scope of their job.
o Helpful to use the consultation influencing tactic.
➢ Seek and are open to input.
➢ Also known as participative management and empowering
employees.

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Legitimate Use of Rational Persuasion
• Managers find the rational persuasion
influencing tactic helpful:
o when meeting objectives through employees, or
o dealing with higher-level managers over whom they
have no authority.
> Includes logical arguments with factual evidence.
• When persuading others, the ingratiation
influencing tactic is helpful:
> Give praise before asking for what you want.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Guidelines for a rational persuasion

Explain how Provide Explain how


Explain why meeting the evidence problems or
objective objective the concerns
needs met. benefits the objective will be
other party. can be met. handled.

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Increasing Legitimate Power
Guidelines for increasing legitimate power:
> Increase management experience,
o Could be part of the job such as team leader.
> Exercise authority regularly,
o Follow up making sure objectives are met.
> Follow rational persuasion guidelines,
o Especially when authority is questioned.
> Back up your authority with rewards and
punishment.

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Reward Power
• Reward power is based on the user’s
ability to influence others with something
of value to them.
> A leader’s power is strong or weak based on
ability to punish and reward followers.
> An important part of reward power is having
control over getting and allocating resources.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Appropriate Use of Reward Power
• Employees should be rewarded for doing a
good job.
• Managers find the exchange influencing
tactic helpful when dealing with others
over whom they have no authority.
> Offer a reward for helping meet objective.
> Incentive can be anything of value.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Guidelines for increasing reward power
• Gain/maintain control over evaluating performance,
determining raises, promotions and other rewards.
Gain

• Find out what others value and reward people in


that way.
Find

• Let people know you control rewards and state your


criteria for giving rewards.
Let

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Coercive Power
• The use of coercive power involves
punishment and withholding of rewards to
influence compliance.
> Also called the pressure influencing tactic.
• Appropriate use of coercive power:
> Coercive power is appropriate to use in
maintaining discipline and enforcing rules.
> Employees resent use of coercive power.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Increasing Coercive Power
Guidelines for increasing coercive power:
> Gain authority to use punishment and withhold
rewards,
> Don’t make rash threats,
o Do not use coercion to manipulate others or to gain
personal benefits.
> Be persistent,
o Follow up to make sure requested tasks are
accomplished.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Referent Power
• Referent power is based on the user’s
personal relationships with others.
> Also called the personal appeals influencing tactic.
o based on loyalty and friendship.
• Leaders can use the inspirational appeals
influencing tactic.
> Leader appeals to follower’s values, ideals, and
aspirations, or increases self-confidence by
appealing to follower’s emotions and enthusiasm.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Referent Power
• Appropriate for people with
Appropriate weak or no position power.
Use • Such as with peers or in self-
managed teams.

• Develop your people skills.


• Work at your relationships
Increasing with managers and peers.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Expert Power
• Expert power is based on the user’s skill
and knowledge.
> Often use rational persuasion influencing tactic.
• Appropriate uses:
> New managers rely on employees’ expertise,
o Followers have influence over leaders.
> Essential when working with other departments
or organizations.

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Increasing Expert Power
Guidelines for increasing expert power:
> Increase training to become an expert,
> Attend trade meetings, read publications, keep
up with current trends, write articles, become
an officer in the organization,
> Keep up with latest technology,
o Volunteer to learn something new,
> Project a positive self-concept and develop a
reputation for having expertise.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Information Power
• Information power is based on the user’s
data desired by others.
> Involves access to vital information and
knowledge and control over its distribution.
• Appropriate use of information power:
> When making rational persuasion or
inspirational appeals.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Increasing Information Power
Develop a network
Have information of information
flow through you. sources.

Know what is
going on in your
organization.
Serving on a committee helps you gain
information and increase connection power.

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Connection Power
• Connection power is based on the user’s
relationships with influential people.
> Leaders use a coalition influencing tactic when
persuading others – a political strategy.
• Appropriate use of connection power:
> When looking for a job or a promotion.
> Can help you get the resources you need.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Increasing Connection Power
Guidelines to increasing connection power:
> Expand your network to managers with power,
> Join the “in-crowd” and “right” associations,
o Sports such as golf may increase your contacts,
> Follow guidelines for using the coalition
influencing tactic,
> Get people to know your name,
o Get all the publicity you can,
o Have your accomplishments known by those in power.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Concept Application

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The Nature of Organizational Politics
• Politics is the process of gaining and using
power – power and politics are related.
• Politics is a social medium of exchange.
> Like money, politics is neither good nor bad.
o Simply a system of getting what you want.
> Money is the economic medium of exchange, but
> Politics is the organizational medium of exchange.

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Political Behavior
• Networking is the process of developing
relationships for the purpose of socializing
and politicking.
• Reciprocity involves creating obligations and
developing alliances, and using them to
accomplish objectives.
• Using coalitions as an influencing tactic:
> Developed for a specific objective, and
> Use co-optation to get a person to join your
coalition rather than compete against you.

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Exhibit 5.2
Political Behavior and Guidelines for Developing
Political Skills

Learn to read between the lines.

Use the ingratiation tactic with everyone.

Work at being a team player.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use. 5 - 28
Concept Application

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Discussion Questions

• How would you rate your political skills,


and which political behavior do you use
most often?
• How will you change and develop your
political skills?

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use. 5 - 30
Networking

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with a certain product or service or otherwise on a password-protected website for classroom use. 5 - 31
Networking
• Networking is the best way to find a job.
• “Career” networking is more than a Facebook
account.
• The Networking Process:
1. Perform a self-assessment and set goals,
2. Create your one-minute self-sell,
3. Develop your network,
4. Conduct networking interviews, and
5. Maintain your network.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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Self-Assessment and Goals
• Self-assessment can clarify your skills,
competencies and knowledge.
o A simple prioritized list will do.
> Accomplishments:
o Provide evidence of your skills and abilities.
> Tie accomplishments to the job interview,
o Use accomplishments to “tell me about yourself”.
> Set networking goals

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One-Minute Self-Sell
• The one-minute self-sell is an opening
statement used in networking that quickly
summarizes your history and career plan and
asks a question.
> Part 1. History,
o Start with a career summary.
> Part 2. Plans,
o Next, state the target career you are seeking.
> Part 3. Question,
o Last, ask a question, encouraging two-way communication.
• Write out and practice your self-sell.

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Develop Your Network
• Begin with who you know.
> Create a written list of about 200 people.
• Categorize your list into professional and
personal contacts.
• Expand your list to people you don’t know.
> Go anywhere professional people gather.
• Develop your ability to remember people
by name.
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Discussion Question

• Do people really need a written


networking list?

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Conduct Networking Interviews
Networking in person is important.
> Step 1. Establish a Rapport.
> Step 2. Deliver One-Minute Self-Sell.
> Step 3. Ask Prepared Questions.
> Step 4. Get Additional Contacts for Your Network.
> Step 5. Ask Your Contacts How You Might Help
Them.
> Step 6. Follow Up with a Thank-You Note and
Status Report.
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Maintain Your Network
• After building your network, maintain it.
> Say thank you to those who helped you.
> Keep everyone updated.
> Notify everyone of new contact information.
> Use networking to help others.
• Although many companies encourage
employees to use social media.
> Know the company policy and follow the rules.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use. 5 - 38
Discussion Questions

• How would you rate your networking


skills?
• What will you do differently in the future
to improve your networking skills?

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Networking

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Negotiation
• Negotiating is a process in which two or
more parties have something the other
wants and attempt to come to an
agreement.
> An essential career skill.
> Directly affects your success.
o Good negotiators get more favorable outcomes.
> Influencing tactics, power and politics used
often.
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Negotiating
• Negotiations are appropriate in all
situations without a fixed price or deal.
> All parties should believe they got a good deal.
o Negotiation does not have to be a zero-sum game.
o Negotiation is about building relationships.
o Negotiation should be viewed by all parties as an
opportunity to win.
> Negotiation skills can be developed by following
the steps in the negotiation process.

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Model 5.1
The Negotiation Process

The key is preparation. Face-to face is preferred.

Know what is being negotiated.

Agreement?
Put it in writing
and stop selling.

Take your time. No Agreement?


If no progress, Analyze and
postpone. improve for the
future.

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with a certain product or service or otherwise on a password-protected website for classroom use. 5 - 43
Discussion Questions

• How would you rate your negotiation


skills?
• What will you do differently in the future
to improve your negotiation skills?

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use. 5 - 44
Ethics and Influencing
• Power, politics, networking, and negotiating
are all forms of influencing.
o When influencing, it pays to be ethical.
> Influence is what you do with it.
> Confront those you think are unethical.
> Successful negotiators are trusted negotiators.
• When influencing, use the stakeholders’
approach to ethics.

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with a certain product or service or otherwise on a password-protected website for classroom use. 5 - 45
Discussion Questions

• Do you believe that most managers use


influencing (power, politics, networking,
and negotiating) for the good of the
organization or for their own personal
benefit?
• What can be done to help managers be
more ethical in influencing others?

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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