nahavandi_leadership6_ppt05 - power and leadership

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  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Chapter 5Power

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Learning ObjectivesDefine power and its key role in leadershipUnderstand the cross-cultural differences in the definition and use of powerIdentify the individual and organizational sources of power available to leadersDescribe the consequences of power for the leader, followers, and organizations.Understand the role of power in the leadership and effectiveness of teamsIdentify the power sources available to top executivesExplain the causes of power abuse and corruption and present ways to prevent themTrace the changes in use of power, the development of empowerment, and explain their consequences for leadership

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    DefinitionsPower: the ability of one person to influence other and exercise control over themInfluence: the power to affect the course of an actionAuthority: the power vested in a position

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Consequences of Power on Power-HolderPositive EffectsMore action-orientationMore sensitivity towards others Focus on rulesMore generousPower changes those who hold it.

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Consequences of Power on Power-HolderNegative EffectsFocus on retaining power at all costsFalse belief that they understand others wellOblivious to others needsLose ability to empathizeTake credit of others workPower changes those who hold it.

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Followers Reaction to powerComplianceCommitmentResistance

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Power and CulturePower DistanceUncertainty Avoidance Delegation

    Use of teams

    EmpowermentHIGHLOW

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Distribution of Power and CultureThe more equal the power distribution in an organization, the higher the performanceCulture strongly impacts the perception and use of power In high-power distance culture, expectation of power sharing are low

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Individual Sources of Power Legitimate power Reward power Coercive power Expert power Referent power

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Potential Reactions to Individual Sources of PowerSources of PowerPotential Reactions

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Influence TacticsRational persuasionInspirational appealConsultationIngratiationPersonal appealExchangeCoalition building Legitimate tactics Pressure

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Career Stages and PowerCAREER PROGRESSIONSOURCES POWER AND CHALLENGESLegitimate power; appropriate use of powerPersonal credibility; relationships; expertise; gaining power All power sources; letting go gracefullyEarly Late

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Organizational/Team Sources of Power Coping with uncertainty Centrality Dependency Substitutability

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Sources of Power for Top ExecutivesLegitimate power and positionDistribution of resources Control of decision criteriaCentrality in organizational structureAccess

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Power Abuse and CorruptionAbuse: taking advantage of ones power for personal gain; unethical, but not always illegal

    Corruption: abusing ones power to benefit oneself or another person; both illegal and unethical.

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Causes of Power Corruption: Leader CharacteristicsInflated view of selfRigid and inflexibleSense of entitlementWillingness to exploit othersLack of empathyVicious and ruthlessOverly concerned with powerIngratiating with supervisor

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Causes of Corruption: Follower CharacteristicsFearSilenceAgreementComplianceInactionFlattery

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Cause of Power Corruption: Organizational FactorsOrganizational cultureHiring practicesShort-term orientationCentralized structure

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    The Corruption Cycle Compliance Distance from others Inflated view of self Flattery DependenceProcessesCausesConsequences

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Solutions to CorruptionClear message and consistencyAccountabilityReducing uncertaintyTraining for leaders and followersProtecting employeesOpen communication

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Solutions to CorruptionLeader involvement in day-to-day activities Reducing follower dependence on leaderEmpowermentObjective performance measuresInvolvement of outsidersChanging the organizational culture

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Empowerment: Leadership FactorsCreate a positive emotional atmosphereSet high performance standardsEncourage initiative and responsibilityReward openly and personallyPractice equity and collaborationExpress appropriate confidence in subordinates

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Empowerment: Organizational FactorsDecentralize structureSelect and train leaders appropriatelySelect and train employees appropriatelyRemove bureaucratic constraintsReward empowering behaviors Create fair and open organization policies

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Leadership ChallengeUnderstand the reasons for high salaries: Market competition High risk jobsAttracting talentFairness is highly subjectiveOrganizations in crisis need to attract talentHigh salary differentials affect morale

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Leadership and Change: SemlerOpen book managementShare information and powerTrain employees to understand financial informationSabbaticals to refreshHigh performance

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    Leadership in Action: FuldSources of powerLegitimate titleConsiderable expertiseBullying intimidationPerformanceReward and punishmentCorruption FactorsEntitlementNarcissistic personalityLack of accountabilityCompliant followersCentralizationOrganization culture focused on performance only

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall5-*

    All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

    Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall