Organizational Power and Politics

Dr. Ashok Kumar Professor (HR & OB) IIM, Indore

Implementation through Others

Culture Shared vision Use of hierarchical authority Use of informal power

Problems in Implementation through Others

Formal authority is now less effective Developing common vision/ culture is difficult and time consuming Inability to supplement formal authority with the informal processes of power

Power
It is capacity of a person, team or organization (A) to influence other (B) so that B acts in accordance with As wishes. It is potential to do so.

What Creates Dependency?

Importance

Scarcity
Non substitutability

Counterpower

The capacity of a person, team or organization to keep a more powerful person or group in the exchange relationship.

Inter-dependence in the Power Relationship

Person A

Counter Power

Power Person B Person Bs Goal

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Coping Uncertainty
Prevention Forecasting Absorption

Bases of Power
1. Formal Power: It is based on an individuals position in an organization. Formal power can come from the ability to coerce or reward, or from formal authority. 1.1 1.2 Coercive Power: It is dependent on fear Reward Power : It is based on positive benefits. Legitimate Power: It is based on structural position
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1.3

Base of Power (Contd)

2. Personal Power: It comes from an individuals unique characteristics. 2.1 Expert Power: Experience, special skill or knowledge. 2.2 Referent Power: It is based on desirable resources or personal traits. It is also known as charismatic power.

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Operating Value of Power

Fixed

Legitimate Reward and Power Coercive Power ( Direction Style) ( Pressure Style)
Expert Power ( Logical Persuasion Style)

Free

Referent Power ( Exchange Style)

Cool

Hot
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Derived Power
Cultivating social relationship
Close and intimate relationship with the formal authority

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Contingencies of Power
Substitutability : The extent to which people dependent on a resource and alternative to that resource. Centrality: The degree and nature of interdependence between the power holder and others. The freedom to exercise judgment. When power base is visible to others.

Discretion:

Visibility :

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Power Tactics
How do people translate power bases in to specific actions for influencing others: Legitimacy Rational persuasion Inspirational appeals Consultation Exchange Personal appeals Ingratiation Pressure Coalition
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Influencing the Hierarchy

Seniors -Rational persuasion Juniors -Inspirational appeals -Pressure -Legitimacy Peers -Consultation -Coalition -Personal appeals

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Power and Organizations

Individual versus Organizational Power Power versus Authority Vertical Sources of Power Horizontal Sources of Power
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Power vs. Authority

POWER
Ability to influence others to bring about desired outcomes

AUTHORITY
Flows down the vertical hierarchy Prescribed by the formal hierarchy Vested in the position held

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Vertical Sources of Power

Formal Position Resources Control of Decision Premises and Information Network Centrality

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Horizontal Sources of Power

High Power350

Low Power

325 300 275 250 225 200 175 150 125 Co. B Co. C Co. I Avg.

Sales Production R&D Finance

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Managing with Power

Diagnose the political landscape Views of others on issues of your concern Acquiring and using power Understanding the strategies and tactics of power

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Politics
Politics is the process, the action, the behavior through which the potential of power is utilized and realized for gaining advantage in favor of goal/ ideology

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Organizational Politics

Behaviors that others perceive as self-serving tactics for personal gain at the expense of other people and possibly the organization.

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What is Political Behavior in Organizations ?

When employees in organizations convert their power into action ( which is not part of formal role ), we describe them being engaged in politics. It is influence or attempt to influence the distribution of advantages and disadvantages within the organization.
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Type of Political Behavior

Legitimate Illegitimate

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Factors Contributing to Political Behavior

Individual -Personality traits -Expectation of success by using illegitimate means -Perceived job alternatives Organizational -Low trust -Resource crunch -Promotion opportunity

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Politics in the Eye of Beholder

Political Label Blaming others Buttering Passing the buck Playing safe Creating conflict Whistle blowing Opportunistic Arrogant Effective Management Label Fixing responsibility Demonstrating loyalty Delegating authority Documenting decisions Encouraging change Improving efficiency Astute Confident
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Impression Management
The process by which individuals attempt to control the impression others form of them

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Use of Impression Management

In interviews through self-promotion In performance appraisal through ingratiation

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Impression Management Techniques

Conformity Excuses Apologies Self-promotion Flattery Favours Association

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Sources of Conflict and Use of Rational vs. Political Model

Sources of Potential Inter-group Conflict
When Conflict Is Low, Rational Model describes organization
Consistent across participants Goal Incompatibility Differentiation Task Interdependence Limited Resources Orderly, logical, rational Centralized

Organization Variables
Goals Power and Control Decision Process Rules and Norms

When Conflict Is High, Political Model describes organization

Inconsistent, pluralistic within the organization Decentralized, shifting coalitions and interest groups Disorderly, result of bargaining and interplay among interests

Norm of efficiency

Free play of market forces, conflict is legitimate and expected

Ambiguous, information used and withheld strategically

Extensive, Information systematic, accurate

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Power and Political Tactics in Organizations

Tactics for Increasing the Power Base Political Tactics for Using Power
1. Build coalitions 2. Expand networks

Tactics for Enhancing Collaboration

1. Create integration devices 2. Use confrontation and negotiation

1. Enter areas of high uncertainty 2. Create dependencies

3. Provide resources 4. Satisfy strategic contingencies

3. Control decision premises 4. Enhance legitimacy and expertise

5. Make preferences explicit, but keep power implicit

3. Schedule inter-group consultation 4. Practice member rotation

5. Create superordinate goals

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