Navigating the

Informal
Organization: Power
and Culture

GROUP – 03:
Linnet Philip – MBA/06/027
Saurodeep Chatterjee – MBA/06/042
Kritika Tandekar – MBA/06/081
Anusha Malothu – MBA/06/083
Introduction

• Change leaders recognize the importance of

understanding the informal components of an
organization-culture and power-which are key forces at
play within an organization, impacting important
stakeholders in the change situation.
•  Understanding the power dynamics in an organization
is critical to a successful change process. Different
sources of power are described so change leaders can
gain leverage in their organizations.
• Force field analysis and stakeholder analysis are two key
tools to use to advance the understanding of the
informal organizational system and how to change it.
 The Change-Management Proces

Initial Organisation
Analysis

Building and Energizing the Need

for Change

Describing the
The Informal Organization
Present State
• Power dynamics
Gap Analysis • Perception of change and the
change equation
• Force field analysis
• Stakeholder analysis
Defining the Desired
Future State

Action Planning and Measuring the Change-

Implementation Designing Effective
Control Systems
Power Dynamics in Organizations
According to Robbins and Langton, Power is defined as the
capacity to influence others to accept one's ideas or plans.
For example, A manager is the most influential or powerful player
in a team. He can use this power for the betterment of people by
becoming a voice for the voiceless. On the contrary, a manager or a
leader can also use power as a tool to dominate and control others.
Basically, they have a choice to use power in a constructive or
destructive manner.
 What gives people and organizations power?

Sources of Power
Individuals have power because of the position they hold, who they are (character and reputation), and who and what they
know.
These individual Sources of power are classified as:

Positional Power – refers to the use of authority to direct a task or get it done. It is a type of power an individual exerts over
others. This form of authority is becoming less effective in today's egalitarian environment of flattened hierarchies and virtual
groups, as individuals seek to know the "why" of things.

Knowledge Power – Can be expert power, information power, or connection power.

Expert Power: Expert power is an individual's ability to influence others' behavior because of recognized skills, talents, or
specialized knowledge.
Information Power: Information power is power gained by the Possession of or control of access to important data
concerning the organization and its environment.
Connection Power: Connection power comes as a result of individuals' informal network of relationships allowing them to
access and pass on knowledge.

Personality Power – an individual' s ability to influence others' behavior as a result of being liked or admired. People's
perceptions of a person are based on their interactions with them. Personal power is influenced by reports of success (or
failure).
 In addition to the Individual Sources of Power, departments within an organization have different levels of Power which
depends on the Centrality of the work, availability of others to accomplish that task and ability of the department to handle
the organization’s environment. These can be categorized as:

Ability to cope with

Environmental Low
uncertainty Substitutability Centrality

When there is an uncertainty, When a function is essential In organizations, we’ll have

departments in an organization and no one else can perform departments whose
can either enhance or diminish it, the individual or operations are very
their power based on the department has power. important and are critical for
uncertainty aroused. other departments to
function. In this case, power
of centrality arises.
 Change Perception of Change

Understanding the Perceptions of Change

CHANGE OCCURS WHEN:

Perceived Benefits of Change > Perceived Cost of Change

Highlights:

1. Change Agents have to deal with both reality of change and its perceptions.
2. Cost of change can be more evident than benefits of change

CHANGE OCCURS WHEN:

Perception of dissatisfaction with the Status Quo

X Perception of the Benefits of Change
X Perception of the Probability of Success
> Perceived Cost of change
 Consequences Support for Change

Organizational and Individual Consequences and Support for Change

Perceived Impact of Change on Perceived Impact of the Change on Direction of Support of the Change
Organisation the Individual

Positive consequences for organization Positive outcome for the individual Strong support for change

Positive consequences for organization Negative outcome for the individual Indeterminate support for change but
very possibly resistance
Neutral consequences for organization Positive outcome for the individual Positive support for change

Neutral consequences for organization Negative outcome for the individual Resistance to change

Negative consequences for organization Positive outcome for the individual Indeterminate support for change

Negative consequences for organization Negative outcome for the individual Resistance to change
 Force Field Analysis

Force Field Analysis is done to

identify forces for and against change How to do a force field analysis

1.Identify the forces acting in the situation and

estimate their strength
2. Understand how the forces can be altered to
produce a more hospitable climate
3. Look beyond the immediate impact and
identify ways to increase support and reduce
resistance

Driving forces Restraining forces

 The Stakeholder Map
STAKEHOLDER MAP:
Visual picture of key participants and their interrelationships to
understand the dynamics of a situation.

Factors that are useful to be depicted:

1.Their wants and needs
2.Their likely responses to change
3.How they are linked
4.Their sources and level of power & influence
5.The actual influence patterns

Organizational members:
• Central Connectors
• Boundary Spanners
• Information Brokers
• Peripheral Specialist
Individual Predispositions to Change
Innovators or early adopters Individuals who seek and want variety

Early majority Individuals who are receptive to change but not first adopters

Late majority Individuals who follow others once change has been tried and tested

Laggards/ Late adopters Individuals who are reluctant to change and only do so after many others have adopted

Non adopters Individuals who will not change or adapt under most circumstances

Stakeholder’s understanding and commitment

High understanding of change Low understanding of change

High, positive commitment to change Strong consensus Blind devotion

Low, positive commitment to change Informed sceptics Weak consensus

Negative Commitment to change Informed opponents Fanatical opponents

Merci !

Thank You