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Chapter Five

Chapter Five. Power and Leadership. Definitions. Power : the ability of one person to influence and exercise control over others Influence : the power to affect the course of an action Authority : the power vested in a position. Individual Sources of Power. Legitimate power

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Chapter Five

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  1. Chapter Five Power and Leadership

  2. Definitions • Power: the ability of one person to influence and exercise control over others • Influence: the power to affect the course of an action • Authority: the power vested in a position

  3. Individual Sources of Power • Legitimate power • Reward power • Coercive power • Expert power • Referent power

  4. Distribution of Power and Culture • The more equal the power distribution in an organization, the higher the performance • Culture strongly impacts the perception and use of power • In high-power distance cultures, expectations of power sharing are low

  5. Coercive Power Reward Power Legitimate Power Expert Power Referent Power Reactions to Power Resistance Compliance Commitment

  6. Influence Tactics • Rational persuasion • Inspirational appeal • Consultation • Ingratiation • Personal appeal • Exchange • Coalition building • Legitimate tactics • Pressure

  7. Organizational Sources of Power • Coping with uncertainty • Centrality • Dependency • Substitutability

  8. Power Sources for Top Executives • Legitimate power and position • Distribution of resources • Control of decision criteria • Centrality in organizational structure • Access

  9. Corruption: Leaders’ Characteristics • Inflated view of self (i.e. narcissistic) • Rigid and inflexible • Sense of entitlement • Willingness to exploit others • Lack of empathy • Vicious and ruthless • Overly concerned with power • Ingratiating with supervisor

  10. Corruption: Organizational Characteristics • Organizational culture • Hiring practices • Short-term orientation • Centralized structure

  11. Causes Processes Consequences Corruption Cycle • Compliance • Distance from others • Inflated view of self • Follower submission • Follower dependence Leader Characteristics • Poor decisions • Coercion • Devaluation of • others • Ethical and legal • violations Organizational Factors

  12. Solutions to Corruption • Involve leaders in day-to-day activities • Reduce followers’ dependency on leader • Use objective measures of performance • Involve outsiders in decision making • Change the organizational culture

  13. Empowerment: Leadership Factors • Create a positive emotional atmosphere • Set high performance standards • Encourage initiative and responsibility • Reward openly and personally • Practice equity and collaboration • Express appropriate confidence in subordinates

  14. Empowerment: Organizational Factors • Decentralize structure • Select and train leaders and employees appropriately • Remove bureaucratic constraints • Reward empowering behaviors • Create fair and open organization policies

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