Management & Org

Dynamics

POWER

Shahid 13
 INTRODUCTION

 power A capacity that A has to influence the behavior of B so

that B acts in accordance with A ’s wishes.

 dependence B ’s relationship to A when A possesses

something that B requires.
5 BASIS OF POWER
 FORMAL POWER

 Formal power is based on an individual’s position in an

organization. It can come from the ability to coerce or reward,
or from formal authority

 Coercive Power The coercive power base depends on fear of

the negative results from failing to comply. It rests on the
application, or the threat of application, of physical sanctions
such as the infliction of pain, frustration through restriction of
movement, or the controlling by force of basic physiological
or safety needs

 Reward Power The opposite of coercive power is reward

power, with which people comply because it produces positive
benefits; someone who can distribute rewards others view as
valuable will have power over them
 FORMAL POWER

 Legitimate Power In formal groups and organizations,

probably the most common access to one or more of the
power bases is through legitimate power. It represents the
formal authority to control and use organizational resources
based on structural position in the organization. Legitimate
power is broader than the power to coerce and reward.
Specifically, it includes members’ acceptance of the authority
of a position
 PERSONAL POWER

 Many of the most competent and productive chip designers at

Intel have power, but they aren’t managers and have no
formal power. What they have is personal power , which
comes from an individual’s unique characteristics

 Expert power is influence wielded as a result of expertise,

special skill, or knowledge. As jobs become more specialized,
we become increasingly dependent on experts to achieve
goals. It is generally acknowledged that physicians have
expertise and hence expert power

 Referent power is based on identification with a person who

has desirable resources or personal traits. If I like, respect,
and admire you, you can exercise power over me because I
want to please you
 POWER

 Which is most important to have?

 Research suggests pretty clearly that the personal sources of

power are most effective.

 Both expert and referent power are positively related to

employees’ satisfaction with supervision, their organizational
commitment, and their performance, whereas reward and
legitimate power seem to be unrelated to these outcomes.

 One source of formal power—coercive power—actually can

backfire in that it is negatively related to employee
satisfaction and commitment
 POWER TACTICS

 Ways in which individuals translate power bases into specific

actions. Researchers have identified nine:

 Legitimacy. Relying on your authority position or saying a

request accords with organizational policies or rules.

 Rational persuasion. Presenting logical arguments and factual

evidence to demonstrate a request is reasonable.

 Inspirational appeals. Developing emotional commitment by

appealing to a target’s values, needs, hopes, and aspirations.

 Consultation. Increasing the target’s support by involving him

or her in deciding how you will accomplish your plan.
 POWER TACTICS

 Exchange. Rewarding the target with benefits or favors in

exchange for following a request.

 Personal appeals. Asking for compliance based on friendship

or loyalty.

 Ingratiation. Using flattery, praise, or friendly behavior prior

to making a request.

 Pressure. Using warnings, repeated demands, and threats.

 Coalitions. Enlisting the aid or support of others to persuade

the target to agree
 POWER TACTICS

 Rational persuasion, inspirational appeals, and consultation

tend to be the most effective, especially when the audience is
highly interested in the outcomes of a decision process

 Pressure tends to backfire and is typically the least effective

Management & Org
Dynamics

CONFLICT AND
NEGOTIATION

Shahid 14
 CONFLICT

 conflict A process that begins when one party perceives that

another party has negatively affected, or is about to
negatively affect, something that the first party cares about.

 traditional view of conflict - The belief that all conflict is

harmful and must be avoided.

 interactionist view of conflict - The belief that conflict is not

only a positive force in a group but also an absolute necessity
for a group to perform effectively.

 functional conflict Conflict that supports the goals of the

group and improves its performance
 CONFLICT

 dysfunctional conflict - Conflict that hinders group

performance.

 relationship conflict - Conflict based on interpersonal

relationships. (Affective Conflict)

 task conflict - Conflict over content and goals of the work.

(Substantive Conflict)
CONFLICT
CONFLICT PROCESS
 STAGE I – POTENTIAL OPPOSITION

 Communication

 Structure

 Personal Variable
 STAGE II – COGNITION &
PERSONALIZATION
 perceived conflict Awareness by one or more parties of the
existence of conditions that create opportunities for conflict
to arise.

 felt conflict Emotional involvement in a conflict that creates

anxiety, tenseness, frustration, or hostility
STAGE III - INTENTION
 STAGE III - INTENTION

 Competing - When one person seeks to satisfy his or her own

interests regardless of the impact on the other parties

 Collaborating When parties in conflict each desire to fully

satisfy the concerns of all parties, there is cooperation and a
search for a mutually beneficial outcome. In collaborating , the
parties intend to solve a problem by clarifying differences
rather than by accommodating various points of view. to find a
win–win solution

 Avoiding A person may recognize a conflict exists and want to

withdraw from or suppress it.

 Accommodating A party who seeks to appease an opponent

may be willing to place the opponent’s interests above his or
her own, sacrificing to maintain the relationship
 STAGE III - INTENTION

 Compromising - there is no clear winner or loser. Rather,

there is a willingness to ration the object of the conflict and
accept a solution that provides incomplete satisfaction of
both parties’ concerns. The distinguishing characteristic of
compromising, therefore, is that each party intends to give up
something.
STAGE IV - BEHAVIOR
 STAGE V- OUTCOMES

 Increase or decrease in group performance

 NEGOTIATIONS

 A process in which two or more parties exchange goods or

services and attempt to agree on the exchange rate for them

 There are two general approaches to negotiation— distributive

bargaining and integrative bargaining

 distributive bargaining Negotiation that seeks to divide up a

fixed amount of resources; a win–lose situation.

 integrative bargaining Negotiation that seeks one or more

settlements that can create a win–win solution
NEGOTIATIONS
NEGOTIATION PROCESS
 PREP & PLANNING

 What’s the nature of the conflict?

 What’s the history leading up to this negotiation?
 Who’s involved and what are their perceptions of the conflict?
 What do you want from the negotiation?
 What are your goals?
 Develop a range of outcomes—from “most hopeful” to
“minimally acceptable”—to keep your attention focused.
 Assess what you think are the other party’s goals are
 What are they likely to ask?
 How entrenched is their position likely to be?
 What intangible/hidden interests may be important to them?
 On what might they be willing to settle?
 BATNA

 Determine your and the other side’s best alternative to a

negotiated agreement, BATNA determines the lowest value
acceptable to you for a negotiated agreement.

 Any offer you receive that is higher than your BATNA is better
than an impasse.

 Conversely, you shouldn’t expect success in your negotiation

effort unless you’re able to make the other side an offer it
finds more attractive than its BATNA.

 If you go into your negotiation having a good idea of what the

other party’s BATNA is, even if you’re not able to meet it you
might be able to elicit a change.
 TPN

 mediator A neutral third party who facilitates a negotiated

solution by using reasoning, persuasion, and suggestions for
alternatives

 arbitrator A third party to a negotiation who has the authority

to dictate an agreement

 conciliator A trusted third party who provides an informal

communication link between the negotiator and the opponent
THANK YOU