MBA 552

Organizational Behavior & Leadership

Historical Evolution of Management Thought

• Pre-Scientific Pre – 1880s

• Focus – – Basic principles for nature and society– Position of authority and order– Economic Rationale– Early development of division of labor

Scholars – Pre-scientific

• Jethro – Moses’ father-in-law– Gave advice to Moses regarding authority over the tribes

of Israel• Sun tzu – Wrote “The Art of War” 500BC

– Recognizes need for hierarchy, communications, and planning

• Aristotle 360 BC – Socrates 44 BC – Management related to cultural environment

• Xenophon 370 BC – Division of labor• Machiavelli – Unity of command and leadership• Adam Smith – Factory system & Division of Labor

Work and the Ruling Class

• Work – Accomplished by slaves and lower level classes of people

• Elite ruled according to traditions

The Classical Era 1880s-1930s

• Scientific Management

• Administrative school

• Structuralist school

The Classical Era 1880s-1930s

• Focus• Scientific Management

– Organizing, managing, effective, efficient

• Administrative school– Basic functions of managers

• Structuralist school– Characteristics of the ideal type of an

organization

The Classical Era 1880s-1930s

• Scholars

• Scientific Management– Frederick Taylor – work measurement– Best way to do a job– Selection of individuals for the position– Financial incentives

The Classical Era 1880s-1930s

• Scholars• Administrative school

– Henry Fayol– Planning – Organizing– Commanding– Coordinating– Controlling

The Classical Era 1880s-1930s

• Scholars

• Structuralist school– Max Weber– Bureaucratic Model

• Order via rules, procedures, authority, division of labor, functional specialization, well-defined hierarchy, differentiation of organizational functions, uniformity, and consistency

The Neoclassical Era 1830s-1960s

• Human Relations School

• Behavior schools– Group Dynamics– Leadership– Decision making

The Neoclassical Era 1830s-1960s

• Cooperative systems

• Informal roles and norms influence individual performance

• Work group dynamics influence individual and group performance

• Decision-making styles influence performance

The Modern Era 1960- present

• Systems School

• Societal Systems School

• Management science school

• Contingency school

The Modern Era 1960- present

• Systems School– Organizations are composed of systems and

subsystems

• Societal Systems School – Composed of social, technological, and

environmental subsystems

The Modern Era 1960- present

• Management science school– Quantitative methods used to solve

management and organizational issues

• Contingency school– Explores alternative organization design

configurations and managerial actions for changing situations

Expectations theory

• Self-fulfilling prophecy

Expectations theory

• Self-fulfilling prophecy– Belief that an event or outcome will take place

Expectations theory

• Self-fulfilling prophecy

• Three steps– Belief an event will occur– New behavior performed that would not have

been performed if not for the expectation– The expected event occurs

Learning

• Individual

• Team

• Organizational

Individual Learning

• Change of skills, insights, knowledge, attitudes, and values acquired by self-study, technology based instruction, insight and observation.

Power

• America’s last dirty word

• Those that openly seek it are categorized as power mongers – as if this is some sort of stigma

• They are looked down upon as lowly individuals

Concept of Power

Power - the ability to influence another person

Influence - the process of affecting the thoughts, behavior, & feelings of another person

Authority - the right to influence another person

The Meaning of Power

Power is the capacity of a person, team, or organization to influence others.

– The potential to influence others

– People have power they don’t use and may not know they possess

– Power requires one person’s perception of dependence on another person C. Price, Vancouver Province

Power

• The ability to produce change by mobilizing one or more people to take action

Power

Important to achieve organizational goals

Alliances are formed

Work gets accomplished

Leadership happens

Concept of Power

Zone of Indifference - the range in which attempts to influence a person will be perceived as legitimate & will be acted on without a great deal of thought

Zone of Indifference

Z o n e o f I n d i f f e r e n c e

Managers strive to expand the zone of indifference

Sources of PowerLegitimate PowerLegitimate Power

Reward PowerReward Power

Coercive PowerCoercive Power

Expert PowerExpert Power

Referent PowerReferent Power

Reuters Archive Photos

Sources of Organizational Power: Interpersonal

Reward Power - agent’s ability to control the rewards that the target wants

Coercive Power - agent’s ability to cause an unpleasant experience for a target

Legitimate Power - agent and target agree that agent has influential rights, based on position and mutual agreement

Referent Power - based on interpersonal attractionExpert Power - agent has knowledge target needs

Which Power is Most Effective?

Expert Power!

• Strong relationship to performance & satisfaction• Transfers vital skills, abilities, and knowledge

within the organization• Employees internalize what they observe & learn

from managers they consider “experts”

Information Power

Information Power - access to and control over important information

• Formal/informal position in communication network

• Interpreting information when passing it on

Information and Power

• Control over information flow– Based on legitimate power– Relates to formal communication network– Common in centralized structures (wheel pattern)

• Coping with uncertainty – Those who know how to cope with organizational uncertainties

gain power• Prevention• Forecasting• Absorption

Using Power Ethically

Does the behavior produce a good outcome for people both inside and outside the organization?

Does the behavior respect the rights of all parties?

Does the behavior treat all parties equitably and fairly?

Two Faces of Power

Personal Power used for personal gain

Social Power used to create motivation used to accomplish group goals

Successful Power Users

• Have high need for social power• Approach relationships with a communal orientation• Focus on needs and interests of others

belief in justice altruism

belief in the authority system

preference for work & discipline

Sources of Organizational Power: Intergroup

• Control of critical resources• Control of strategic contingencies - activities that

other groups need to complete their tasks• Ways groups hold power over other groups

– Ability to reduce uncertainty

– High centrality - functionality central to organization’s success

– Nonsubstitutability - group’s activities are difficult to replace

Power Analysis: A Broader ViewOrganizational Power

Coercive Power - influence through threat of punishment, fear, or intimidation

Utilitarian Power - influence through rewards and benefits

Normative Power - influence through knowledge of belonging, doing the right thing

Power Analysis: A Broader View

Organizational Membership

Alienative Membership - members feel hostile, negative, do not want to be there

Calculative Membership - members weigh benefits and limitations of belonging

Moral Membership - members have positive organizational feelings; will deny own needs

Kanter’s Symbols of Power

Ability to intercede for someone in trouble

Ability to get placements for favored employees

Exceeding budget limitations

Procuring above-average raises for employees

Getting items on the agenda at meetings

Access to early information

Having top managers seek out their opinion

Kanter’s Symbols of Powerlessness

First-line Supervisors• overly close supervision• inflexible adherence to rules• do job rather than train

Staff Professionals• resistance to change• turf protection

Key to overcoming powerlessness: share power & delegate decision making

Top Executives• budget cuts• punishing behaviors• top-down communications

Managers• assign external attribution - blame others or environment

Korda’s Power Symbols

Power - there are more people who inconvenience themselves on your behalf than there are people on whose behalf you would inconvenience yourself

Status - a person’s relative standing in a group based on prestige and deference

AccessTime

Furnishings

Using Power Effectively

• Use power in ethical ways• Understand and use all of the various types

of power and influence• Seek out jobs that allow you to develop your

power skills• Use power tempered by maturity and self-

control• Accept that influencing people is an

important part of the management job

Analyzing Power Dynamics

• Think

• Think

• Think

• Then Act

Analyzing Power Dynamics

• Power Distribution– Who has the power– Who needs the power– What can be done to influence the power holder

• How well do I know the power holder

• When can I get to see the power holder

• What strategies have influenced the power holder in the past

Analyzing Power Dynamics

• Structural Diversity– What is the relationship of the two projects

– Growth potential of each, profits long and short-term organizational benefits

– Do they depend on each other?

• Interdependence– Breeds dependence and creates a power

differential

Power and Dependence

PersonPersonAA

PersonPersonB’s GoalsB’s Goals

PersonPersonBB

Person B’s Person B’s counterpower counterpower over Person Aover Person A

Person A’s Person A’s power over power over Person BPerson B

Power - Legitimate

• Formal – organizationally assigned– Part of the managerial hierarchy

• Informal – Expert power– Superior expertise in the ability to perform a

particular job

Model of Power in Organizations

PowerPowerover Othersover Others

ContingenciesContingenciesOf PowerOf Power

SourcesSourcesOf PowerOf Power

Legitimate

Reward

Coercive

Expert

Referent

The Limits of Legitimate Power

The Caine Mutiny illustrates the limits of

legitimate power in organizations. Captain

Queeg (Humphrey Bogart,) asked his crew to do

more than they were willing to follow, so they

staged a mutiny.

Reuters Archive Photos

IncreasingIncreasingNonsubstitutabilityNonsubstitutability

ControllingControllingTasksTasks

ControllingControllingKnowledgeKnowledge

DifferentiationDifferentiation

ControllingControllinglaborlabor

Increasing Nonsubstitutability

Contingencies of Power

ContingenciesContingenciesOf PowerOf Power

PowerPowerover othersover others

SourcesSourcesOf PowerOf Power

SubstitutabilitySubstitutabilityCentralityCentralityDiscretionDiscretionVisibilityVisibility

CommitmentCommitment

Consequences of Power

RewardRewardPowerPower

Legitimate Legitimate PowerPower

CoerciveCoercivePowerPower

ExpertExpertPowerPower

ReferentReferentPowerPower

ResistanceResistance

ComplianceCompliance

Sources of Power

Consequences of Power

Sexual Harassment and Power

• Harasser stereotypes the victim as subservient and powerless

• Harasser threatens job security or safety through coercive or legitimate power

• Hostile work environment harassment continues when the victim lacks power to stop the behavior

Office Romance and Power

• Co-workers believe that employees in relationships abuse their power to favor each other.

• Higher risk of sexual harassment when relationship breaks off.

Organizational Politics

• Attempts to influence others using discretionary behaviors to promote personal objectives– Discretionary behaviors -- neither explicitly

prescribed nor prohibited

• Politics may be good or bad for the organization

Political Behavior in Organizations

Organizational Politics - the use of power and influence in organizations

Political Behavior - actions not officially sanctioned by an organization that are taken to influence others in order to meet one’s personal goals

Types ofTypes ofOrganizationalOrganizational

PoliticsPolitics

ManagingManagingimpressionsimpressions

Attacking andAttacking andblamingblaming

CreatingCreatingobligationsobligations

CultivatingCultivatingnetworksnetworks

Types of Organizational Politics

ControllingControllinginformationinformation

FormingFormingcoalitionscoalitions

ConditionsConditionsSupportingSupporting

Organizational Organizational PoliticsPolitics

ScarceScarceResourcesResources

Complex andComplex andAmbiguousAmbiguousDecisionsDecisions

PersonalPersonalCharacteristicsCharacteristics

Tolerance ofTolerance ofPoliticsPolitics

Conditions for Organizational Politics

Controlling Political Behavior

Peer PressurePeer PressureAgainst PoliticsAgainst Politics

RemoveRemovePolitical NormsPolitical Norms

Free FlowingFree FlowingInformationInformation

Manage ChangeManage ChangeEffectivelyEffectively

ProvideProvideSufficientSufficient

ResourcesResources

IntroduceIntroduceClear RulesClear Rules

HireHireLow-PoliticsLow-PoliticsEmployeesEmployees

IncreaseIncreaseOpportunitiesOpportunitiesfor Dialoguefor Dialogue

AudienceAudienceCharacteristicsCharacteristics

• • Self-esteemSelf-esteem• • InoculatedInoculated

CommunicatorCommunicatorCharacteristicsCharacteristics

• • ExpertExpert• • CredibilityCredibility• • AttractiveAttractive

MessageMessageContentContent

• • Present all sidesPresent all sides• • Few argumentsFew arguments• • Emotional appealsEmotional appeals• • Inoculation effectInoculation effect

Communication MediumCommunication Medium

Persuasive Communication

Effective Political Characteristics

What characteristics do effective political actors

possess?

Influence Tactics

Consultation

Inspirational appeals

Rational persuasion

Ingratiation

Coalition

Exchange tactics

Upward appeals

Pressure

Upward Influence: the boss

Downward Influence: an employee

Lateral Influence: a coworker

Managing Political Behavior

• Maintain open communication• Clarify performance expectations• Use participative management• Encourage cooperation among work groups• Manage scarce resources well• Provide a supportive organizational climate

Managing Up: The Boss

Understand Your Boss and Her Context

Her goals and objectives

The pressures on her Her strengths,

weaknesses, blind spots Her preferred work

style

Assess Yourself and Your Needs

Your own strengths and weaknesses

Your personal style Your predisposition

toward dependence on authority figures

Develop and Maintain a Relationship that Fits both your needs and styles Is characterized by mutual expectations Keeps your boss informed Is based on dependability and honesty Selectively uses your boss’s time and

resources

Managing Up: The Boss

SOURCE: Information on slides 21-22 adapted and reprinted by permission of Harvard Business Review. From J. J. Gabarro and J. P. Kotter, “Managing Your Boss,” Harvard Business Review (January-February 1980): 92-100. Copyright© 1980 by the Harvard Business School Publishing Corporation; all rights reserved.

Sharing Power: Empowerment

Empowerment: sharing power in such a

way that individuals learn to believe in their ability

to do the job!

Empowerment’s Dimensions

Meaning - fit between the work role and the employee’s values and beliefs

Self-determination - having control over the way one does one’s work

Impact - belief that one’s job makes a difference within the organization

Competence - belief that one has the ability to do the job well

E2s

Guidelines for Empowering

• Express confidence in employees

• Set high performance expectations

• Create opportunities for participative decision making

• Remove bureaucratic constraints that stifle autonomy

• Set inspirational and meaningful goals

Using Power Effectively

• Use power in ethical ways• Understand and use all of the various types

of power and influence• Seek out jobs that allow you to develop your

power skills• Use power tempered by maturity and self-

control• Accept that influencing people is an

important part of the management job

Understand and use all of the various types of power and influence

• Always say less than necessary

• Guard your reputation with your life

• Court attention at all cost

• Make other people come to you

• Win through actions, not arguments

Understand and use all of the various types of power and influence

• Avoid the unhappy and unlucky people

• Learn to keep people dependent on you

• Do not isolate yourself

• Know who you are dealing with

• Play dumb

Understand and use all of the various types of power and influence

• Keep your hands clean

• Enter action with boldness

• Act well to be treated well

• Ignore the things you cannot have

• Do not try to directly replace anyone– You may be compared to that great person

Understand and use all of the various types of power and influence

• Preach the need for change

• Never appear too perfect

• Do not go past your goal – until you are able to formulate new directions

Formula for Success

• If A equals success, then the formula is

A = X + Y + Z.

X is work.

Y is play.

Z is keep your mouth shut.

-- Albert Einstein