7.

1 An Example of Power
• 7.1.1 The Meaning of Power, Authority and Influence
• 7.1.2 Sources of Power
 7.1 An Example of Power
• 7.1.3 Using Power Ethically

–Does the behavior produce a good

outcome for those who are affected?
–Does the behavior respect everyone’s
rights?
–Does the behavior treat everyone
equally and fairly?
 7.1 An Example of Power
• 7.1.4 How Employees Obtain Power
 7.1 An Example of Power

• 7.1.5 How Subunits Obtain Power

– Scarcity
– Uncertainty (Risk)
– Centrality
– Absence of Substitutes
7.2 Uses and Abuses of Power:
Playing Politics
 7.2 Uses and Abuses of Power:
Playing Politics
• 7.2.1 How Managers Play Politics

–Whistle Blowing
–Line versus staff conflict
–Sponsorship & Coalition Building
–Resisting Authority
 7.2 Uses and Abuses of Power:
Playing Politics
• 7.2.2 Looking Upward: Managing the Boss
7.3 Leadership: A Conundrum of Theory
• 7.3.1 Are Leaders Different from Managers?
• 7.3.2 Merging the Concepts through Role Analysis
7.3 Leadership: A Conundrum of Theory

– Effect of Downsizing and the Use of SDTs on

Certain Managerial Roles

• 7.3.3 Coming to Grips with the Problem of

Leadership
– Trait
– Behavioral
– Situational
7.3 Leadership: A Conundrum of Theory

7.3.4 Research on Leadership Traits

7.3 Leadership: A Conundrum of Theory

• 7.3.5 The Behavioural School of Leadership

– Is there a dominant or prefered leadership style by
suboridnates?
• Initating Structure
• Considerations
– When Do Consideration and Initiating Structure
Matter?
• Time Pressure
• Own Space
• Delegation & linking to rewards
• Training
– Evaluating the Leader Behavioural Style Approach
7.3 Leadership: A Conundrum of Theory

• 7.3.6 Situational Leadership Theories

• 7.3.7 Fiedler’s Contingency Theory

– The Contingency Model in Action
7.3 Leadership: A Conundrum of Theory
7.3 Leadership: A Conundrum of Theory
• 7.3.8 House’s Path-Goal Theory
 7.3 Leadership: A Conundrum of
Theory
– Directive Behaviors

– Supportive Behaviors

– Participative Behaviors

– Achievement-Oriented Behaviors
7.3 Leadership: A Conundrum of Theory
Does Leadership Matter in all Cases?
 7.3 Leadership: A Conundrum of
Theory
• 7.3.9 Leader Reward and Punishment Behaviour: BMod
Revisited

– Distribute significant rewards based on measurable performance

standards.
– Use recognition
– Create variety in non financial rewards
– Avoid the use of punishment except in legal liability
– Don’t delay the delivery of performance-contingent rewards &
punishers
– Avoid personal biases
– Administer punishers to individuals or work groups in private
 7.4 The New Age of Entrepreneurs

• Myth:

– Entrepreneurs are doers not thinkers

– Enter pruners are born not made
– All what you need is money
– All what you need is luck
 7.4 The New Age of Entrepreneurs
• 7.4.1 How Entrepreneurs Differ from Small Business Owners
and Administrators
 7.4 The New Age of Entrepreneurs

• 7.4.2 Encouraging Entrepreneurial Behaviour

In-House

• 7.4.3 How Organisations Encourage

Entrepreneurial Employees and Innovation
– Idea Champion
– Sponsor
– Godfather
7.4 The New Age of Entrepreneurs
 Summary Points
• Power is the ability to influence someone else.
• Authority is the right to order or to ask others to do what you want them to do.
• It is bestowed by the position in the organisational hierarchy.
• Influence is a dynamic interpersonal process in which one person affects the thoughts, feelings
and behaviours of others.
• Managers who use power ethically must communicate effectively and through their words and
actions show respect for their subordinates.
• There are several sources of interpersonal power.
• Subunits in the organisation gain power by
– 1) competing for resources,
– 2) managing organisational uncertainty,
– 3) occupying a central position in the flow of work and
– 4) eliminating substitutes for the subunit’s activities.
• Organisational politics focuses on methods and results.
• Leadership is the power of one individual to guide the actions of another.
• Management is understood as a set of interlocking roles:
– 1) interpersonal,
– 2) informational and
– 3) decisional.
 Summary Points
• Behavioural style theory emphasises the leader’s consideration behaviour which is
those actions that sustain the morale and cohesiveness of the work group.
• Fiedler’s contingency theory tries to integrate the leader’s orientation to his least-
preferred co-worker and the favourableness of his leadership situation.
• The theory proposes that the situation is composed of:
– 1) leader–member relations,
– 2) leader’s position power and
– 3) task structure. The leader’s control of situational favourableness can be enhanced by
changes in leader–member relations, position power and task structure.
• The path-goal theory of leadership proposes that the leader’s job is the
clarification of pathways from workers’ effort and performance to the rewards that
they value.
• Entrepreneurs are special types of leaders who create wealth by assuming risk.
• Entrepreneurship consists of skills which can be learned.
• Entrepreneurial behaviour can be learned by employees.
 Review Questions
• 1 of 10
• Which of the following choices best completes
the sentence? The legitimacy inherent in your
job is _____ while your ability to influence a
peer is _____.
• A. power; authority
B. influence, authority
C authority; power
D. power; control
• 2 of 10
• Which of the following choices best completes
the sentence? As a subordinate you might
have _____ over your superior.
• A. authority
B. command
C influence
D. power
• 3 of 10
• Which of the following choices best completes
the sentence? You are a senior research engineer
and a colleague seeks you out for advice on a
project design problem. This is an example of
your _____ power.
• A. reward
B expert
C. referent
D. legitimate
• 4 of 10
• Which of the following sources of power is
least available to a non-supervisory, technical
worker?
• A. Expert.
B Legitimate.
C. Coercive.
D. Reward.
• 5 of 10
• Which of the following choices best completes
the sentence? A mature group would be most
likely to remain in that development stage, other
things remaining the same, if the group leader
exercised _____ and _____ interpersonal power.
• A. coercive and legitimate
B expert and referent
C. reward and legitimate
D. referent and coercive
• 6 of 10
• Which of the following should an ethical manager
employ to examine his use of power?
• A Beneficial outcomes; individual rights and fair
treatment of stakeholders.
B. Personal motive; higher-order need
satisfaction and consequences of the decision.
C. Personal growth opportunities; career effects
and promotion enhancing outcomes.
D. Downside danger to reputation; chance of
litigation and competitor retaliation.
• 7 of 10
• You are in a department that is downsizing, to keep
your job you should choose which of the following?
• A Be a knowledge worker, take risks, be creative and
give excellent performance.
B. Emphasise your cooperativeness more than your
job expertise.
C. Refrain from reorganising the job and do not
manipulate job rules in your favour.
D. Provide all sources of job and product information
to those who ask and identify with powerful managers
who control the downsizing decision.
• 8 of 10
• Which of the following would make upward
management more widespread ?
• A. The organisation uses empowerment and job
enrichment.
B. Employees are cross-trained and expected to
function effectively on self-directed teams.
C. Managers’ styles favour the use of legitimate
power and reward power.
D A and B.
• 9 of 10
• Which of the choices below would you use to
complete the question? If your boss has a highly
participative management style, then an
appropriate influence tactic for you to use is
to _____?
• A be a knowledge worker
B. develop a network to build a good support
system
C. reorganise the job
D. manipulate work rules
• 10 of 10
• Your firm is preparing for bankruptcy protection under
your country’s bankruptcy laws. The accountants in
your company would become quite powerful due to
which of the following choices?
• A. They possess advanced college degrees.
B They are the only ones who can perform the audit
function demanded by the bankruptcy laws.
C. The accounting department has slack resources.
D. They help the board of directors manage
uncertainty through the