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Plenary and Invitation Paper

MODEL OF EXCELENT LEADERSHIP IN COMPLEXORGANIZATIONS: POWER, INFUENCE AND ENERGY

1, 2, Suzana Doljanica3, 4

1 University of Kragujevac, Faculty of Science, Kragujevac, SERBIA,E-mail: srdjan_nikezic@yahoo.com

2 University of Kragujevac, Faculty of Law, Kragujevac, SERBIA,E-mail: bataveljic@jura.kg.ac.rs

3 Modern Business School, Belgrade, SERBIA, E-mail: suzana.doljanica@gmail.com4 University of Kragujevac, Faculty of Engineering, Kragujevac, SERBIA,

E-mail: adjordjevic@kg.ac.rs

Summary: Developing model of power was set up by Barton Michelson, as positive power which is continuallyused for achieving organisational, group and individual aims in order to provide more efficient operation of acompany, or complex (multinational) organisations. Model of excellent leadership was based on this model,which in current conditions in global economy and society in general, responds better to the recent changes andchallenges in complex organizations in the region. Recent researches have shown that aspects of influence,readiness for changes and agility in bringing them about are especially involved in this model. The outcome ofthis modelling is mathematical interpretation of this complex interdisciplinary, multidisciplinary andtransdisciplinary problem.

Keywords: Developing model of power, excellent leadership, influence, changes, energy.

1. INTRODUCTION

Use of power in an organisation, with help of ethic or other positive and purposeful behaviour is anobligation and self-responsibility which is a part of leadership function and its own credibility.

Michelson assumes thatleaders who use power for leadership in certain organisations have to develop organisational power asa base of efficient use of power influencing the others.His model of power is designed to show that power is differently distributed within an organisation.This model establishes an interpersonal link between basic power of a leader and alternative influencesof a strategy as a product of positive dynamic power for change.The importance of the model is that it established positive interpersonal and organisationalrelationships and that it is applicable to all organisations regardless of their size, aim, mission, andtechnology and other.Recognized and accepted literature is used for the basic structure of the model: John Kotter, RosabethKanter, David Whetton and Kim Cameron. A model, which establishes dependent and interdependedrelationships critical for the power of acquisition, transformation, dynamic changes and organisationalefficiency, was designed and extended. Harry Trumanconvince a man to do something he does not want toof the problem for every leader in every organisation is how to include others to work on achieving

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organisational goals (Cohen, 1984). There are other reasons why leaders use power as an importantpart of their job. The power of acquisition and use of power can have influence on career advancing,

(Kotter, 1979).The extended model, with previous analysis, is supplemented with new, importantecorrespond to the new market where the state elements directly affect the structure of organisationaldesign and ways and methods of business.

activities and organisational levels, the choice of adequate type of power which is located according tothe demands of expertise and knowledge and ability to plan, organise and coordinate work ofemployees and the choice of the explicit attributes of power that should be accepted. Explicit power,influence and energy of a leader and their rational and purposeful use represent essential lever ofchoice for entire system of power and influence of individuals and individual levels of power2009)

- to bear in mind twoopposite ideas at the same time and to manage to operate while doing it . Excellentleaders and companies create quality with soul and top quality of a product with traditional

on costs.

2. LEADERSHIP CHALLENGES IN COMPLEX ORGANISATIONS

Big and complex organisations can be characterised as various, highly dependent and receptive forgenerating power as dynamic category. The first characteristic of these complex systems is diversity ofcomplex parts in them, regarding the aims, values, results, assumptions and perceptions. There isinterdependence between parts and wholes in which many participants have power to influence eachother because of their own connection and vertical and horizontal integrations (Michelson). Accordingto Kotter, high level of leadership and interdepndence represent perfect condition for the developmentof power acquisition and use of influence to create a dynamic force for change.For the leader, the challenge is to work in conditions of diversity and interdependence. Makingdecisions is the way to organisational success. The challenge is similar in all organisational forms(public, private, joint-stock, non-profit) (Kotter, 1985).High level of diversity and interdependence are common cause of conflicts in complex organisations.The leader cannot ignore these conflicts, but they have to try to influence factors that are used to solvethe conflict (Kotter, 1985). Managing conflicts is particularly difficult when their roots are in the baseof complex relations of diversity and interdependent organisational units. That can cause conflictsalong vertical and horizontal lines of organisation, lines for forwarding certain findings, instructionsand advice. Depending on the stage of life cycle of complex organisations, the intensity of certainconflicts is reduced or increased .The strategy of power and influence are leadership trumps in solving conflicts. Efficient, responsibleand dynamic power for solving conflicts can be created by skilful developing of influence of power.Leadership power comes from many sources and multiple foundations to build leadership base fromwhich derives its power, and that is why it takes time, energy and power.In complex organisations, the causes of conflicts are various and can be divided into three main groupsof factors:a) the first are communicational, and they are derived from complexity of communicational process,

the way and conditions of informing social actors and organisational groups,b) the second are structural and are derived from various complexes and relationships, connections

and interdependencies in an organisation, andc) the third are reflection of behaviour of organisational members, their roles and interpersonal

reactions .Effective leaders develop their power using their knowledge, energy, creativity and skills. The powerdeveloped that way is transformed into influence in crisis situations. It is necessary to take efficientmeasures to avoid influence abuse. The power of a leader must maintain over a period of time via thescale value that is consistent for each complex organisation (figure 1).

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Leadership power

Power transformation

Leadership poweracquisition

Personalpower

Power ofposition

The influence ona complex

organisationThe influence on the

environment

Picture 1: Range of leadership power

3. DEFINITION AND SOURCES OF LEADERSHIP POWER: DISTINCTION FROMRELATED TERMS

The strong base of power is favourable for effective management and leadership position in conditionwhen the organisation is developing dynamically.A few definitions can contribute to a better understanding of the term of power in organisations. MaxWeber

White and Bednarinfluence on people or process via resources. Robbins defines power asinfluence the behaviour of a person B, so that the person B behaves in a way they would not normallybehave. Luthans generally agrees with this definition andNikezi , Grabovica, 2012).It comes out of these definitions that the power is the ability of achieving the influence of a personon other individuals and on their behaviour, by changing it in positive or negative way. That isthe ability of making an individual or a group to do or change something in a way that suits the leader.The leader who has power is in position to change other people's behaviour, to manage them, and if isabout the toxic leaders, to manipulate.The term of power includes the influence, but these two terms are different. The influence is a broadterm and means the capacity of changing people's behaviour, which is characteristic ofleadership.The terms of power are also different from the term of authority. Authority represents the source ofpower. Authority is the legitimate right to have influence, so as to gain power. Certain authors defineauthority as official power. However, unlike authority, power does not have to be legitimate. There arealso other sources of power and Nikezi ,Grabovica, 2012).Chester Barnard makes a distinctive difference between authority and power. Power is exercised inrelations of informal authority. Formal authority is explained as a way of communicating in formalorganisational structure, according to which staff or members of organisation perform the action inaccordance with the wishes of the leader. The authority should provide achieving collective ororganisational goals, while power strives to achieve certain individual goal (Grabovica, 2012 and Nikezi , Grabovica, 2012).Two conditions are basic for achieving power in organisation:a) ability of using the source of power andb) motivation to take power.

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Practical power exercising depends on leader's character and situation in which power is exercised. Onone hand, there has to be leader's readiness to exercise a certain form of power, according to powersources, and on the other hand, readiness of an individual on whom the power is being exercised, totake that from the different reasons. Motives for taking power (rewards, promotions, rotation) arenecessary as the reason for accepting the leader and their competence. In other words, there must be amotive to accept the influence of another person in individuals on whom power is exercised(Northouse, 2006).Besides the listed terms, it is necessary to finally define the term of identity as an important factor forunderstanding leader's competences. anduniqueness in certain social roles, such as leadership, but in life in general. We cannot have thesense of identity without feeling of uniqueness or feeling of integrity, as in a certain context, likeleadership position, and during the life path.Power in organisations, or leadership power, is based on the ability to use some of the availableresources, such as: knowledge, information, position, finance, relations and other. John French iBertram Raven identified five classic resources and responding types or kinds of power: power ofreward, coercive power, legitimate power, reference power and expert powerGrabovica, 2012).Unlike Servant Leadership, Authentic Leadership, Ethical Leadership and Values-Based Leadership,French and Raven do not offer any defined leadership concept, but they explore the basic powers of aleader.Widest level of power exploration was conducted by French and Raven, focusing on the base of socialpower. They observed power conceptually in their work, as the influence which person has on others,and the behaviour of people who are under the influence. Therefore, the aim was to determine powerof influence that affects a person, and a person who is under the influence.They identified five common and important bases of power: reward, coercion, legitimate, referent andexpert power. Each of these powers increasebehaviour of the others.As it was already put out, there are two main types of power in organisation: power of position andpersonal power.Power of position is a power of leadership in formal organisational systems. That is the overallcapacity of a leader that derives from the status. The types and categories of basic power are identifiedin the figure 2.

Power of position Personal powerRewardPunishmentLegitimate

ReferentExpert

Figure 2: Types and categories of basic power (Modified according to: Northouse, 2006)

Personal power is the result of leadership influence over their knowledge and personal qualities.Personal power is the result of establishing interpersonal relations with followers in which thefollowers recognise the values that other people in organisation do not have. Personal power includesreferent and expert power.French and Raven's theory:

classifies key sources of leadership power,analyzes follower's perception from the standpoint of quality and leadership position, andshows to which extend the follower's perception influences leadership power and freedom to work(French & Raven, 1959).

Leaders often use power as a mean of achieving personal goals.Unlike French and Raven, Burns (1978) points out that the leading energy pervades relationsbetween the leader and follower. Power is not a separate entity that leaders use to achieve theirgoals, but it occurs in relations and should be used by leaders and followers to promote theircommon goals (Burns, 1978).The leader uses different forms of power to achieve their goals, but they have to be consistent with

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each other and connected to the follower's goals, so that the benefits of achieving goals are the sameboth for the leader and the follower.In reference power, it is essential for the followers to identify with the leader (this can be the teacher inhigh school or on college).In professional power, the followers basically have positive perception of leadership competence(tourist guides who do their job successfully).Legitimate power is connected to the formal status, giving rise to leadership authority (the judge).The power of reward comes of the leadership capacity to provide reward for the others (a supervisorwho controls production and gives rewards to the employees who work well).The power of punishment comes out of the ability to punish somebody (a bench coach uses coercivepower).The concept of power refers to leadership because it is part of that process. Therefore, power is theability or potential of leadership influence. People have power when they have the ability toinfluence other people's beliefs, attitudes and courses of action. Ministers, doctors, coaches andteachers are the example of people who have potential to influence other people (Northouse, 2006).When it happens, using their own power as the source of influence, the leaders can influence creatingpositive or negative change in their followers.Coercion (forcing) is a specific type of power, characteristic for leaders. Coercion involves use offorce in order to make changes. That means the influence of the leader on the others to achievesomething by manipulating punishment or reward as an element of leadership power. Coercion ofteninvolves use of threats, punishments and negative schedule of awards (Northouse, 2006).A classic example of a toxic leader is Adolf Hitler in Germany, who used negative power to compelhis followers to engage in extremely negative behaviour.It is important to distinguish the leadership from coercion (forcing), because it helps distinguish thepositive attitude from the behaviour of the individuals like Hitler.Leadership is reserved only for those who influence the group in order to achieve common goals. Theleaders who use force are interested only in achieving their own goals and are rarely interested inwishes and needs of the individuals (Northouse, 2006).The leadership power is much more than using the force. The force refers to the capacity of the boss toinfluence other people's behaviour, so that they behave according to the wishes of their boss.There is not a leader without their followers. The followers have to accept leadership power or, to givepower to their leader instead. This thought was the guiding principle in researches on why peopleaccept leadership from certain leaders, and not form the others in academic circles during last century.The key researches referred to the sources of leadership power and the relation between the leader andthe follower. In their work identifiedfive types of leadership power, as we have already put out and classified them in two groups:

positional power (three sources of power) andpersonal power (two sources of power).

1) The power of reward, to reward the followers who carryout the instructions through performing the tasks.

2) The power of punishment,obey the instructions and do not perform the tasks.

3) Legitimate power, is the result of hierarchical leadership function that gives them the right to giveorders.

4) Expert power, is the result of the superior leadership knowledge, experience, expertise and skills,and gives them the opportunity to lead the followers through the challenges and performingrelevant tasks.

5) Referent power comes from the character of the leader, his previous work, charisma and visions(French, Raven, 1959).

All of the five leadership powers can be strengthened or weakened through leadership beliefs. Veryoften, the power of reward and punishment are not crucial for getting leadership trust of the follower.Expert and referent power, even though the leader does not have them, can be misused by them, butonly for a period of time, until the followers find out they cannot be trusted.The force of leadership power does not depend only on the leader, but also on perception of thefollowers. Giving and taking power is the result of the interpersonal relation established between the

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leader and follower and on whether the followers accept the leadership power willingly or not.Managers relied on the positional power for the decades, but there was a review of this assumption inthe 21st century, because the positional power is no longer a guarantee of managerial success, butexpert and reference powers began to get bigger, even crucial part in organisation.John Schemerhorn identified four sources of leadership power as: legitimate, reward, punishment, andreferent (Schermerhorn, 2009).Leadership power in the company can be classified in the following way: power of reward, power ofpunishment, legitimate power, expert power, and referent power .A successful leader, besides their own vision, must have charisma to gather and motivate others towork, and to be able to appreciate reality at the same time: to identify barriers and to work onremoving them. Besides that, they must have the power to influence the others to follow them and tobe the bearer of task performing, using his work and behaviour. Therefore, the power is the ability toinfluence the others to do what the leader wants them to do. It should not be in function of personalsatisfaction or interest, but in function of the organisation, and the employees. The sources of powercan be divided into two groups: those that are based on the position of a leader in the organisation andthose that are based on the leader as a person .Elements of power sources are shown in figure 3 via position of a leader and personal characteristics

- Ekspertska- Referentna- Informisanosti

Personal powerPower of position---- E

RewardPunishmentLegitimate

cological

Organisation LeadershipFigure 3: The source of leadership power: position and personal characteristics

Another category of power, awareness, which becomes more important in the era of the rule ofinformation (Rot, 2010) is introduced on the picture 3. give special importance tothe ecological power in today's environment, and leadership influence and power, especially in globalcompanies, to respond ethically to the challenges that are dominant in the environmental and hisown protection from the various climate and material means, regardless of the height and strength of

.

4. LEADERSHIP POWER PROFILE

The power runs through all the processes in one organisation. The leaders gain and use power forachieving certain goals at work, and also to enforce their positions. Every interaction and socialrelation in an organisation involves leadership exercise of power (Gibson, & Ivancevich, & Donnelly,1985) the process of using powerto have in (Schermerhorn, & Hunt, & Osborn, 1985).The leaders are people who are willingly followed while developing their vision as their own by theirfollowers. The power of leadership is based on concept of the influence of the leader on theirfollowers. That influence is proportional to the strength of personal profile of the leader (Mihailov

).Leadership theorists claim that if you want to identify the leader, it is only necessary to watch certain

opinions differ, and that a group strives to accept that opinion and follow the leader. RobertDilenschneider, identified three components of leadership power, shown in the figure 4.

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Figure 4: Three components of leadership powerThree components of leadership power are: communication, respect and influence. It starts with theeffective communication, which makes respect, and respect leads straight to power of influence onfollowers (Dilenschneider, 1991; Dilenschneider, 2007).The influence on the followers can be increased if the leaders are ready to accept the fact that there aremany levels of leadership. There are five levels of leadership on the picture 5 (Maxwell, 2002;Maxwell, 2011a; Maxwell, 2011b).

The climax of respectingthe leader

5 Respect

Developing of followers4 Reproduction

OrganisationalReproduction

3 Results

Permission2 RelationsPeople follow the leader bacause theywant to

Position1 RightsPeople follow the leader bacause theyhave to

People follow leaders because of whatthey are and what they represent

People follow leaders because of whatthey did for them

People follow the leader bacause of whathe did for the organisation

Figure 5: Five levels of leadership

Position is the first level where the leader has power which comes out of placing in appropriateleadership position. This position gives power only if there is a quality base for the authority andleadership position. It is disadvantageous if the influence does not happen, and especially if itcompensates lacking leadership characteristics. In the positive sense it is about position leadership,which is based on the place (position) and title, and not on predisposition for leadership. The followersfollow the leader only to the level of his formal authority which comes out of the position they take.Organizations in which position leadership prevails have low level of motivation, and the employeesdo only what they have to ( .Permission is the second part of leadership and it is the symbol of those organizations where followersfollow the leader because they want to. People follow their leaders because of their authority andquality of the decisions they made. Interaction between the leader and the follower is based on theneeds of reaching the goals and expectations of the organizations. Thus, leadership influence issignificantly extended, but the danger of this level is the case when the leader is kept for a long timeand if they do not manage to pass to the third level.Organizational production is the third leadership level on which the followers follow the leaderbecause of the success they make in managing the organization. The followers are motivated forperforming tasks and they do it efficiently. With such motivation of the followers possible problemsare easily solved because the followers respect the leader and they are orientated towards increasingresults.Follower's development is the fourth leadership level at which the organizational structure allowsprogressive development of employee potential and achieving excellent results. A leader is focused onthe development of his own leadership skills, as well as the development of the personality of the

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others. In this way the employee potential increases. The most important thing at this level is to enable

done for them. At this level people are very loyal to the leader and they identify with the organizationand its goals.Pinnacle is the highest level of leader power and influence. Rare is the leader who reaches this level atwhich leaders are respected and followed by people because of what they are. People are completelyloyal to leaders and devoted to doing tasks. The greatest pleasure for the leader is to see peoplegrowing and becoming better. Pinnacle actually represents the pinnacle of leadership and position, thelevel at which theact of following the leader represents a kind of prestige and pleasure for people.People generally believe the ones that have accepted personality traits and values. The secret ofsuccessful leaders lies in the possession of fundamental values that are rooted in human nature itself,such as: honesty, fairness, consistency, trust 11).Analyzing the five levels of leadership Maxwell noted:

You can reach the level above, but you should never leave the previous levelLeaders do not share the same level with every personThe higher the level is, the easier is for the leaders to lead the organizationThe higher the level is, the more time is necessary to reach the levelReaching the level above is a slow process, but the fall might be rapid

s five levels of leadership have stood the test of time:1.

one. A leader should never leave the previous levels. They should serve as the basis for the newdevelopment.

2. Leadership is a dynamic process, and interpersonal relations change and develop at different levels.It is a kind of leadership carousel. There are five different groups of followers at five differentlevels. Someone on their first day of work will accept the position of the first level, while someoneinto whose development the leader invested his effort, will accept the fourth leadership level(people development).

3. The higher the level is, the easier becomes to lead people. As a leader reaches the level above, hisinfluence and power increase. Thus the efficacy of people increases. As leader influence and powerincrease, it becomes easier for people to follow leaders. Limited influence results in the limitedleadership, while significant influence results in high efficacy.

4. The transition from the first to the second level takes time, effort and commitment to establishpositive relations between a leader and people. The transition from the second to the third level ofleadership is also difficult because it is more difficult to achieve productivity than to establishpositive relations with people. The transition to the fourth level of leadership is even more difficultand demanding, and it requires more time. At this level people develop in order to become goodleaders. There is no easy way to reach the fifth level of leadership.

5. Maxwell claims that it is more difficult to build a house than to destroy it. Whether a leader willreach the highest level or not depends on many things, but sometimes only one thing may cause a

which serves as a protection which allows them to reduce or prevent falls (Maxwell, 2002,Maxwell, 2011; Maxwell, 2011b).

5. ACQUISITON AND TRASNFORAMTON OF LEADER POWER IN AN ORGANIZATION

figure 6). Leadersderive power from both position and personal resources. Position power stems from the five keyfactors: central Picture of the leader, criticality, flexibility, visibility and relevance.Central/critical Picture in the organization is the leader who has a central role in work andinfluences the flow of information within the organization. The Picture structures elements of jobresponsibilities and expands communication network within the organization and in the environment.It also allows monitoring the flow of the processes in the organization: production, marketing,finances, technology, etc.

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Leader poweracquistion

Leader power

Leader individualpower

Leader powerposition

KnowledgeCentralityCriticalityFlexibilityVisibilityRelevance

IInformation

Personalatraction

Effort

Figure 6: Leadership power acquisition

Flexibility allows the leader to generate novel ideas, reduce his own participation in routine activities,increase the number of tasks for himself and the others, initiate innovative projects, and involve in theprocesses of making new decisions and avoiding standardized forms in work.Visibility increases the number of interactions with significant people, and allows making importantoral presentations, participating in problem-solving teams, publicizing accomplishments of theorganization at the right time and in the right place, as well as the possibility of gaining personalrecognition through internal and external stakeholders.Relevance allows the leader to maintain external and internal boundaries of the organization, provideservices and information to other work units that operate beyond the boundaries, and to monitor andassess the results of interpersonal work in the organization. A leader is involved in decision makingpertaining to priority goal setting and assuming a socialization role for new work-unit members(Michelson).Four attributes are associated with the building personal power: knowledge, information, personalattraction and effort (Schermerhorn, & Hunt, & Osborn, 1985).Knowledge and Information. Leader power can be increased through expertise acquired bypossession of special knowledge and information. Access to key people and data sources alsoenhances power potential.Personal attraction. Agreeable behavior, pleasant personality characteristics, and attractive personalappearance are referents that attract people to a leader.Effort of a leader put into preparing and participating in the execution of tasks, professional andpersonal traits, as well as the effort of a leader to accomplish work tasks. The effort might extend theinfluence on the others.Position power and personal power are the building blocks for the leadership model of power which inthe second phase transforms into influence to achieve desired results. Figure 7 shows the influence ofthe leader which includes willingness of people to help and work with the leader in order to achievecommon goals (Cohen & Manion, & Morrison, 2007).

Leader powertransformation

Leader unfluenceover other

Execution thatminimizesresistence

Developingeffective influence

strategies

Figure 7: Transformation of leader power

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Influence also entails any act or potential activity that affects the behavior of another person, group orset of organizational entities (Cohen & Manion, & Morrison, 2007). Transforming power intosuccessful influence requires the development of an influence strategy that minimizes resistance,resentment, and potential abuse.A leader must maintain perspective in terms of targeting power to achieve successful influence.Possessing a potentially strong power base to use power is worth little unless you are able to securecompliance, effort, and commitment from others (Michelson).

6. DEVELOPING STRATEGIES OF INFLUENCE

There are numerous ways of exercising influence. Several studies suggest that influence strategies canbe classified into three broad categories: retribution, reciprocity, and reason (Table I).

Table 1: Influence strategiesStragegies Direct approach Indirect approach

Retribution: get the others dowhat a leader says

1. Coercion (threaten) 2. Intimidation (demand)

Reciprocity: get the othersfollow leadership goals 3. Bargaining (exchange) 4. Ingratiation (obligation)

Reason: show the others that itmakes sense to do what a leaderrequires

5. Present facts (stress,immediate need)

6. Appeal to personal values(apply general principles)

David Kipnis and others have developed several general strategies of leader influence (Kipnis &Schmidt & Swaffin-Smith & Wilkonson, 1984). They list the most to least popular strategies found intheir study of managerial influence styles as shown in Table 2.

Table 2: Most-to-least popular strategies used in all countries(Source: David Kipnis et al

3 (New York: American Management Association,1984), 62.)

When managers influencedsuperiors

When managers influencedsubordinates

Most popular to least popular ReasonCoalition

FriendlinessBargaining

AssertivenessHigher authority

ReasonAssertivenessFriendlinessEvaluationBargaining

High authoritySanction

Another researcher, Gary A. Yuki, lists 11 forms of influence and a summary of leader and target-person requirements for each strategy (Yuki, 2010). Table 3 identifies the different forms of influence.The research on influence strategies indicates that each approach listed in the classifications hasadvantages and limitations. Effective leaders generally use combinations of various strategies fordifferent purposes and under different conditions.

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Table 3: Definition of eleven proactive influence tactics

Rational persuasion: Using logical arguments and evidence to show that a proposal orrequest is feasible and relevant to the achievement of work goals

Announcing: Explaining that performing tasks and supporting proposals will bringbenefit to people to be influenced.

Inspirational appeal: Focusing on the values and ideals of the organization, or appealing to

compliance with requests

Consulting: Encouraging the person to be influenced to suggest improvements in aproposal or to help in the process of activity planning or changes thatrepresent support and assistance for the person

Interchange: Providing stimulus, suggesting quid pro quo, and showing willingnessto return a favour later if the target person does what a leader demands

Cooperation: Willingness to provide resources and help the person to be influencedif the person accepts the request or approves the proposed measures

Personal appeal: A leader should not ask the person to be influenced to support a requestor proposal because of friendship, or to ask for a personal favour,before he tells what it is

Integration: Using praise or flattery during the process of influence, or showingbelief that the person to be influenced is capable of performing difficulttasks

Legitimization Requiring the legitimacy of the request, a certificate of experts orauthority for the validity of rules, policies, contracts.

Pressure Using claims, threats, frequent checking or constant reminding in orderto get a person to perform a task

Coalition tactics Asking the others to convince the person to be influenced to dosomething, or using the support of the others to make the person to beinfluenced agree

The challenge of complex organization diversity and job-related interdependence requires a leader toselect the proper influence strategy to produce positive power dynamics. Leaders should avoid thepitfall of overreliance on and overuse of a particular influence strategy. Excessive use of an influencestrategy could lead to abuses of influence that may provoke resistance leading to diminished leaderinfluence over time. It is important to maintain a balanced perception betwee

Leader should provide conditions for dynamically set goals to be achieved without unlimited use ofpower and influence which, mainly, produce negative energy that is self-destructing for all the people.Positive dynamics of power and influence is presented in tables 1 and 2 and it contributes to rationalmanagement in conditions of diversity and interdependance in organizational entities. (Kotter, 1985;Michelson).

7. POSITIVE POWER AND INFLUENCE

The right choice and use of power and influence provide positive effects in the strategy oftransformation of complex organizations. Inventive thinking by leaders and their creative problemsolving through the development of new products and services are positive force of dynamic processesof the improvement of organizational market competition, of its better adaptibility to the challenges ofthe environment and total social responsibility. The synergy in organization with great diversity of

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tasks which are inter-dependant and in creative interactions also increases. Creativity is also acondition for quality excellence in economy. By using power and influence in an adequate way, leaderoptimizes results and creates favourable working atmosphere that can face the challenges of aturbulent environment.

Table 4: Different forms of influence

Form of influence Agent requirements Target person requirements

1. Legitimate request Legitimate justification Relevant values

2. Instrumental compliance Control over rewards;credibility of promise

Relevant needs, openness tomanipulation

3. Coercion Control over punishments;credibility of threat

Fear, openness to intimidation

4. Rational persuasion Insight; technical expertise;credibility

Relevant values and need

5. Rational faith Technical expertise; credibility Low expertise, relevant need;trust of agent

6. Inspirational appeal Insight into values and beliefs;persuasive ability

Relevant values and beliefs

7. Indoctrination Control of social situation;relevant skills

Alienation, relevant needs

8. Information distortion Credibility as informationsource

Use of information forimpression formation anddecision making

9. Situational engineering Control of relevant aspects ofsituation

Willingness to accept situation

10. Personal identification Attractiveness, charisma Admiration of agent

11. Decision identification Willingness to allowparticipation; relevant skills

Desire to participate; goalsconsistent with agent goals

8. NEGATIVE POWER AND INFLUENCE

Figures 8 and 9total dynamics of a complex organization. The power of abuse is reality in complex organizations.

and interorganizational and intraorganizational conflicts. Battle for power may become a longlastingcategoproduction costs increase, innovative capacity decrease, vertical and horisontal conflicts that culminatein entropy and worsening of social tissue of the organization.(Kotter, 1985).

solved and conflicts of organizational entities, formal and informal groups, as well as individuals.Bureaucracy conflicts andthat culminates in total failure of all functional parts of the organization.

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DinamicsOrganizational

outcome

Leadersinfluence

radnika

Creativityimprovement

Power ofpositive

influence

Power ofnegativeinfluence

Adaptibility andresponsibility

increaseSynergyincrease

InventivethinkingCreativeproblemsolving

Newproducts and

services

Overdimenionedleaders roles

Negative sideof power throuth

destructivebattle

Non-existenceof vision

Internal andexternalconflicts

Non efficiencyand costincrease

Innovativecapacitydecrease

Vertical andhorisontalconflictsincrease

Employeeslay off

Figure 8: Leadership:the use of power

Figure 9: Leadership: the use of power

9. ORGANIZATIONAL EFFICIENCY

Organisatonal life described in the model of leader's power and influence suggests complex socialenvironment in which battles, manipulations, animosities and confrontations happen. That is afundamental reality in contemporary, complex organizations. The type of job, working processes,goals set and decision making are based on great diversity of jobs and their interdependance. Theefficiency of the organization is almost impossible without leader's excellence. Without excellentleadership it is impossible to achieve the goals set. The excellence in leadership can be approachedfrom the standpoint of how efficiently a leader manages the organization, makes positive energy indynamic behaviour which, in return, affects the complex organization credibility. Social pattern of acomplex organization is given in the Picture 10 and it creates an exciting challenge for a leader whohas to constantly improve his work in the organization in order to achieve organizational excellence.

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Figure 10: Leadership: the use of power(Source: Whetten & Cameron, 2011; Mchelson; Kotler, 1985)

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Power acquisition, power transformation, dynamics, organizational outcome, organizational efficiencyPower of position: Power of position: dominance, criticism, visibility, flexibility, relevanceDevelopment of effective strategy influence, positive dynamic power,Creative thinking, inventive problem solving, new products and services, creativity improvement,adaptability and flexibility increase, synergy increase, mission goal and availability, organizationalexcellence

Personal power: knowledge, information, personal effortPerformances that minimize resistance and anger, negative dynamic power, power self-increasing,

Non efficiency increase, larger costs, innovation decrease, conflicts increase, employees lay offNon-productive diversification enhanced, interdependence of similar jobs

Excellence in an organization requires a lot more than a technical competence. That is a differentconcept of managing social reality, and that is why leader's power, knowledge, creativity and skillsthat can mobilize different people connected by mutual interests, needs and goals, are needed. Leadersdevelop efficient leadership through the model, effects of synergy and force of the people.Power and misuse of the influence lead to the decrease of productivity and counterproductive acting oforganizational entities that fight for power. The end result of a negative, toxic leadership is a generalstate of non efficiency and leader's incompetence.

10. CONCLUSION

There are different types of organizations (Blau & Scott, 1962). Most of them are formed ontraditional foundations, in the shape of a pyramid with a hierarchical pinnacle, and based on militarymodel. They are called formal organizations and they have statement about the mission, tasks, as wellas the list of members, that is, employees. In order to make a rational organization, all the members are'described' through certain tables, with principles and rules, the chain of managing, uniquemanagement, scope of leadership and communication channels.For leaders in an organization it is always especially important to establish how and why informalorganizations develop inside of the formal structure. Informal organizations almost always exist,develop and can help or disturb the mission accomplishment. Establishing of management tasks andobligations, following the rules determined and responsibilities delegation are of crucial importancefor a leader.In more complex organizations, as they grow in size, the tendency of organizational units towardsspecialization becomes bigger. Specialization can improve efficiency and effectiveness, but too highspecialization can severly endanger a mission. Specialization in complex organizations requires highlevel of coordination, and coordination is of crucial importance for any organization, big one or asmall one, specialized or not. By design, most of organizations have the following components(O'Connor, 2010):

Mission of an organization is its reason of existence, that is the component that connects it to the outerworld, it is relevant and in coordination with social order and social progress.Goals are the result of a general purpose of the organization and its functional division, they arespecific enough so that employees and clients know that they refer to a specific organization.

Authenticity

Mission

Behaviour

Goals

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Authenticity is a component by which goals of one organization differ from those of others. In everyorganization, goals have to be measurable results, with a time-frame, and designed in the way thatemployees can achieve them.Behaviour refers to working productivity of employees. Responsibility for the behaviour in anorganization is held by human resources. They supervise the employees. Communication channels inan organization should provide the existence of cause and effect relation between behaviour and goalsin a certain organizational design.All organizations have managers who have authority and power at all levels, and it means ability tomotivate employees to do tasks and achieve the goals set by positive force of power and influence.Basic skills of management are contained within technical skills, administrative skills, conceptualskills and the management of interpersonal relations or organizational behaviour skills.The leader is at the highest level in an organization and his/her task is to provide planning process,budgeting, public relations and creating of positive working atmosphere with executive directors.Leader performs all of that via administrators. His most important task is to define leader's vision oforganization, and collaborators and employees should understand and accept it within five minutes, asKotter says. Leaders focus on employees via vision and mission, managers focus on the task they gotfrom leaders and administrators. Excellent leaders in complex organizations with large number ofemployees and decentralized structure, those that function in several countries, with their ownexample provide their vision accomplishment, and that vision is accepted by employees as their own.Leader's ability is to make employees do something that he/she wants, and do it willingly.Model of excellent leadership in complex organizations means analyzing an organization as a systemand a way in which a complex organization can be efficiently managed. There is no place forbureaucracy, impersonal and immoral, which represents force of evil and 'forces of order' and makingharmony into a chaos, in such organizations. Complex organization is of system type and can beanalyzed in terms of its roles, outcomes and transformational processes and the way in which itfunctions efficiently (McAuley & Duberley & Johnson, 2007).Complex organizations use redefining through four outline approaches: political, structural, humanresources and a symbolic one, as the substitute for reengineering of business processes in oder torealize more efficient and effective approach in solving their basic tasksBolman & Deal, 2008).Excellent leadership can be defined in the following way:

LPC = K + R + S + SLPC leader's power capacityK - knowledgeR - resourcesS - skillsS - situation

LI = (LPC + LII + LA) x CBFLI leader's influenceLII leader's integrity and identityLA leader's authorityCBF leader's ability to change the behaviour of people

EL = (LI + LE) x LCEL excellent leadershipLE leader's energyLC leader's changes

Note: LE = ; (e=h x t, E=H x t)h total amount of information achieved by leader's influence in timeH total possible amount of information that can be achieved by leader's influence in timet - time

Ideal situation for a complex organization and leader is: e = E, that is LE = = 1

Key components of excellent leadership are: leader's influence, leader's energy and leader'schanges.

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ACKNOWLEDGMENTS

This paper is part of the research project 41010, funded by the Ministry of Science and Technology ofthe Republic of Serbia.

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INTERNATIONAL Conference "Research and Development inMechanical Industry" (13 ; 2013Proceedings. #Vol. #1 / 13th International

Conference "Research and Development in MechanicalIndustry" - RaDMI 2013, Kopaonik,Serbia, 12-15. September 2013. ; [organizer] SaTCIP [Scientificand Technical Center for Inte

-Technical Center for Intellectual Property, 2013Banja : Scientific and Technical Center for Intellectual Property). - XXIstr, str. 1-622, XI str. : ilustr. ; 24 cm

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