CONFLICT, POWER AND POLITICS

1. CONFLICT, POWER AND POLITICS Lecture 13

2. Some Definitions POWER The ability to influence others to bring about desired outcomes. AUTHORITY The right to influence others. (Bestowed by the organization) Flows down the vertical hierarchy Prescribed by the formal hierarchy (Formal authority) Vested in the position held (Positional authority) FORMAL AUTHORITY is vested in the organization�s structure. (Positional Authority) Whoever occupies the position assumes the authority.

3. More Terms ACCEPTANCE THEORY: Authority is only effective if it is accepted by subordinates. POLITICS: The use of power (influence) to affect decision making. �The application of power and authority to achieve desired outcomes.� However, much politicking is done without �authority� and for personal gain.

4. Perspective AUTHORITY The �right� to use influence POWER The �ability� to use influence POLITICS The �use� of influence

5. VERTICAL SOURCES OF POWER POSITION in the organization�s structure. It is independent of the person. A person, �holds a position of power.� The position �legitimizes� the power with formal authority. Access to people higher in the organization is also a source of power. CONTROL OF RESOURCE ALLOCATION Others become dependent on persons or departments that control and allocate resources.

6. VERTICAL SOURCES OF POWER CONTROL OF INFORMATION Information is a resource that reduces uncertainty NETWORK CENTRALITY Another form of position that puts one at the hub of organizational activity. Being connected with, or exposed to, the right people. CONTROL OF DECISION PREMISES Being able to set the guidelines for decision making by others. Controlling the decision-making constraints and parameters. These vertical sources of power become more prevalent the higher one goes in the organizational structure.

7. Clark Limited case

8. Horizontal Power Sources Deals with the relationships across departments. Those departments (or individuals) able to successfully deal with activities essential to the organization will be the most powerful. These activities are called �Strategic Contingencies.� Successful selling is a good example. Studies show that sales departments tend to have the most power in most organizations.

9. Other Horizontal Sources of Power Dependency on the department by others for information, resources and/or assistance Nearness to the organization�s critical activity (Centrality) Ability to bring in money (Financial resources) Ability to reduce, prevent or absorb uncertainty for others. (Includes forecasting events and trends.) Degree to which a department or person is irreplaceable

10. Personal Traits Some people exude power because of personal traits. Personality factors (outgoing, dynamic, self assured, personable�) Appearance (height, weight, dress, etc.) Sound powerful (resonant voice, speech quality)

11. EMPOWERMENT What is it? Making others more powerful Sharing power and a downward spread of power. There is a definite trend of empowerment in organizations. Why Empowerment? To better deal with environmental uncertainty & change Make an organization more flexible and responsive

12. Empowerment Versus Decentralization Decentralization is the delegation of decision-making authority. Giving people more decision-making rights Empowerment requires more structural and process changes. Making people more influential by� Giving them more information Giving them greater role in interacting with others Enriching their job with more variety and responsibility Rewards and publicity for notable performance.

13. POLITICS - TWO VIEWS POSITIVE VIEW A natural process for resolving differences among groups Goal: To benefit the majority NEGATIVE VIEW A self-serving activity to promote ones self. Goal: To benefit a minority

14. Organizational Politics Organizational politics includes all activities that: A. strive to acquire power B. use power to achieve desired outcomes Outcomes may be personal or organizational. Outcomes may benefit the majority or harm the majority

15. Models of organizational decision making

16. Catalysts for Political Activity Structural Change: People�s jobs, lines of authority, and areas of jurisdiction are at risk of realignment Management Succession: Vacancies, new positions, promotions Resource Allocation (including money and people) Coordination Among Departments Competition arises over areas of responsibility and resources. These situations give rise to the two major ingredients for conflict and politicking: UNCERTAINTY and DISAGREEMENT

17. Rational vs. Political Model(Not prescriptive. Only descriptive)

18. Increasing your Power Base Deal successfully with uncertainty. Predict, identify, eliminate, or absorb uncertainty for others. Create dependencies. �for information, resources, expertise. Make yourself and your department less dependent on others. Satisfy strategic contingencies Successfully handle activities critical to the organization.

19. Guides to successful politicking Build Coalitions (Politics is a game of coalitions.) Networking: Building a broader base of support that goes beyond your coalition group Enhance your legitimacy through your expertise & skills Control decision premises Setting agendas, leading meetings, selective information Make preferences explicit, but keep power implicit Be aggressively persuasive but not offensive. �Power works best when it is used quietly.�

20. Marketing � Production Classic areas of potential conflict

21. Reducing/Resolving Conflict Use horizontal linkages Cross-functional groups, liaisons, project mgrs. Negotiation Mediation (third party interventions) Job rotation across departmental lines. Shared goals

22. Win-Win Strategy ? Define the conflict as a mutual problem Pursue joint outcomes Find creative agreements that satisfy both groups Use open, honest, and accurate communication Avoid threats Communicate flexibility Win-Lose Strategy ? Define the conflict as a win-lose situation Pursue self outcomes Force other group into submission Use deceitful, inaccurate communication Use threats Communicate rigidity Negotiating Strategies

23. Checks to management�s power abuse Employee Power Unions Individual sources (Information, expertise, persuasion, manipulation, etc.) Group Norms and Values Groups resist overuse or improper use of power Whistle Blowing Legal Climate (Favors individual rights and anti-discrimination.

24. Power and Political Tactics in Organizations

26. Strategy ImplementationKarl Weick; The Social Psychology of Organizing, 1979 �Organizations facing the same environment often formulate and implement different strategies.� Selections, �. . . are by-products of bounded rationality applied by fallible rationalizers.�

27. William H. StarbuckHandbook of Organizational Design �The constraints imposed by environmental properties are not, in general, sufficiently restrictive to determine uniquely the characteristics of their organizational residents.� �Environments change continuously, as do competing firms, so consistent environmental properties are unlikely to exist.�