• Chapter Ten: have referent power) or claim to have

•• ••
Power and Influence legitimate or expert power.
in the Workplace

•
Learning Objectives Power Contingency: Nonsubstitutability

••
1. Describe the dependence model of power Power increases with nonsubstitutability.
and the five sources of power in organizations.
–
Increasing nonsubstitutability:
–
•
2. Discuss the four contingencies of power. Control access to the resource.

•
3. Explain how people and work units gain Differentiate the resource.
power through social networks.
–
Developing a personal brand.

••
4. Describe eight types of influence tactics, Nonsubstituability through
three consequences of influencing others, and three unique and valuable abilities.

• •
contingencies to consider when choosing an ©Rawpixel.com/Shutterstock
influence tactic. Other Contingencies of Power
5. Identify the organizational conditions and
personal characteristics associated with –
Centrality:
– Interdependence with power holder.

•
organizational politics, as well as ways to minimize How many and how quickly others are

•
organizational politics. affected by you.
–
Visibility:

•
The Power of Jeremy Gutsche Others know you control
– a valued resource.

•
Canadian entrepreneur Jeremy Gutsche has gained Social interaction, symbols

•
considerable power in his career by developing of power.
expertise and a personal brand as a trend hunter.
–
Discretion:
–
•• ••
©Marcel Bieri/EPA/Shutterstock Freedom to exercise judgment.
Rules limit discretion.

•
The Meaning of Power ©Rawpixel.com/Shutterstock
The capacity of a person, team, or organization to Power Through Social Networks
–
influence others.
Potential to change attitudes and behaviour –
Social networks:
– Connecting through forms of interdependence.
– (not actual attempt to change).
Based on target’s perception that powerholder
•
People join networks to fulfill drive to bond,
social norms, acquire resources.
– controls a valuable resource.
Requires a minimum level of trust by both –
Social capital:
Knowledge, opportunities, and other
– parties.
– resources shared in a social network.

•• •
Power involves unequal dependence. Resource sharing aided by mutual support,
trust, reciprocity, coordination.

••
Power and Dependence
Exhibit 10.1 Dependence Model of Power –
Networks offer three power resources:
– Information (expert power).

••
Access the text alternate for slide image.
– Visibility.

••
Model of Power in Organizations Referent power.

••
Exhibit 10.2 Sources and Contingencies of Power
Access the text alternate for slide image. Social Network Ties
Legitimate Power
–
Strong ties:
–
• –
Agreement that people in specific positions can Close-knit relationships.

•
request behaviours from others. Offer resources more quickly/plentifully,
Zone of indifference: but less unique.

–
Domain of behaviours that power holder can
–
Weak ties:
–
•
ask of others. Acquaintances.

••
Several factors influence size of the zone of Offer unique resources, but more slowly.
indifference.
Norm of reciprocity: Obligation to reciprocate favours. –
Many ties:
– Resources increase with number of ties.
–
Information control:
Right to control information that others
•
Information technology helps, but still a limit.

– receive.
Generates power through gatekeeping and
Social Network Centrality
Person’s importance in a network.

•• ••
framing. Three centrality factors:
Betweenness: connected between others.
Expert Power
• Degree centrality: number of connections.

• – ••
Capacity to influence others by possessing knowledge Closeness: stronger connections.
or skills that they value.

• –
Coping with uncertainty: Consequences of Power
Organizations need to reduce uncertainty – Effect of power depends on type of power.
those who control or predict the situation are Type A: Feeling empowered.

•• –
valued. Perceived power over themselves and freedom
People gain power by using their expertise to:
– from others’ influence.

• –
Prevent environmental changes. Higher motivation, but less mindful thinking,
• Forecast environmental changes. less empathy, more reliance on stereotypes.

••
Absorb environmental changes. Type B: Power over others.
Other Sources of Power – Produces sense of duty/responsibility.
Less stereotyping, more empathy, more

••
Reward power: Control rewards valued by others, mindful of how their actions affect others.

••
remove negative sanctions.
Coercive power: Ability to apply punishment.
Referent power: Capacity to influence others Influencing Others

• – •
through identification with and respect for the Any behaviour that attempts to alter another person’s
power holder -- associated with charisma. attitudes or behaviour.

• –
Problem: Deference to power Applies one or more power bases, depending on
Human tendency to mindlessly follow the power contingencies.
guidance of people who are charismatic (i.e., Essential activity in organizations:
Coordinate with others.
 –
– Part of leadership definition. nonverbal communication behaviours (i.e. signalling)

••
Everyone engages in influence. that generate interpersonal attraction and referent
Types of Influence 1 power over others as well as deference to the charismatic
–
Silent authority.
Power holder’s request or mere presence
person

• – influences behaviour.
Legitimate power (subtle).
coalition — a group that attempts to influence people
outside the group by pooling the resources and power of
–
Assertiveness.
–
its members

•
Vocal authority: Reminding, checking, bullying.
Legitimate/coercive power. countervailing power — the capacity of a person, team or
–
Information control. organization to keep a more powerful person or group in

•
Manipulating others’ access to information to the exchange relationship
change their attitudes/behaviour.
–
Coalition formation.
Pooling members’ resources and power to
dark triad — a cluster of three socially undesirable (dark)
personality traits: Machiavellianism, narcissism, and

••
influence others. psychopathy
Types of Influence 2 impression management — actively shaping through
–
Upward appeal. self-presentation and other means the perceptions and

•
Relying symbolically or in reality on higher attitudes that others have of us
authority support.
–
Persuasion.
– Logical arguments, emotional appeals.
influence — any behaviour that attempts to alter
someone's attitudes or behaviour

•
Effects of persuader, message, channel,
audience. inoculation effect — a persuasive communication
–
Impression management.
Actively shaping others’ perceptions and
strategy of warning listeners that others will try to
influence them in the future and that they should be
– attitudes of us. wary of the opponent’s arguments

•
Includes self-presentation, personal brand,
ingratiation. legitimate power — an agreement among organizational
–
Exchange.
– Exchange of resources for desired behaviour.
Exchange is used in negotiation, reciprocity,
members that people in certain roles can request certain
behaviours of others

••
social networks. norm of reciprocity — a felt obligation and social
expectation of helping or otherwise giving something of
Consequences of Influence value to someone who has already helped or given

••
Exhibit 10.6 Consequences of Hard and Soft Influence something to you
Tactics

•
Access the text alternate for slide image. organizational politics — the use of influence tactics for
Contingencies of Influence personal gain at the perceived expense of others and the

••
“Soft” tactics produce more commitment; “hard” organization
tactics produce more compliance and resistance.
Appropriate influence tactic depends on: persuasion — the use of facts, logical arguments, and
•• Influencer’s power base.
Organizational position.
emotional appeals to change another person's beliefs

••
Personal, organizational, and cultural values. and attitudes, usually for the purpose of changing the
person's behaviour
Organizational Politics
Using influence tactics for personal gain at perceived power — the capacity of a person, team, or organization
•• expense of others and organization.
Negative consequences, not beneficial.
to influence others

•
••
Minimizing organizational politics:
Provide sufficient resources.
Clarify resource allocation rules.
referent power — the capacity to influence others on the

••
Manage change effectively. basis of an identification with and respect for the power
Discourage political behaviour.
©Elnur/Shutterstock holder

• Chapter Glossary continued

social capital — the knowledge, opportunities, and other
resources available to members of a social network,

••
along with the mutual support, trust, reciprocity, and
Continuing working on Assignment #2 coordination that facilitate sharing of those resources
Read ChapterConflict & Negotiation in the

••
Workplace (Chapter 11) and Leadership social networks — social structures of individuals or
(Chapter 12)
Have a wonderful week social units that are connected to each other through one
Reach out if you have any questions.
‘or more forms of interdependence
CHAPTER GLOSSARY FOR CHAPTER 10
centrality — a contingency of power pertaining to the structural hole — an area between two or more dense
degree and nature of interdependence between the
power holder and others social network areas that lacks network ties
charisma — a set of self-presentation characteristics and
 – Risk of conflict increases with level of
interdependence.
upward appeal — a type of influence in which someone ©Jacob Lund/Shutterstock
Structural Sources of Conflict 2
with higher authority or expertise i called upon in
–
4. Scarce resources.
Creates competition for the resource.
reality or symbolically to support the influencer’s
–
5. Ambiguous rules.
Creates uncertainty, politics.

CHAPTER 11 and 12: –

6. Communication problems.
– Poorly stated messages escalate conflict.
Is Conflict Good or Bad?
Negative Outcomes
• Lower performance.
– Conflict causes emotive messages.
Less communication amplifies conflict.
©Jacob Lund/Shutterstock
• Higher stress, dissatisfaction, turnover. Interpersonal Conflict Handling Styles
• Less information sharing and coordination. Exhibit 11.3. Interpersonal Conflict-Handling Styles.
• More organizational politics. Sources: C. K. W. de Dreu, A. Evers, B. Beersma, E. S. Kluwer,
• Wasted resources. and A. Nauta, “A Theory-based Measure of Conflict
• Weaker team cohesion (when conflict within team). Management Strategies in the Workplace,” Journal of

• •
Positive Outcomes Organizational Behavior, 22 (2001), pp. 645–68. For other
Better decision making. variations of this model, see: T. L. Ruble and K. Thomas,

•• Tests logic of arguments. “Support For a Two-Dimensional Model of Conflict Behavior,”

Questions assumptions. Organizational Behavior and Human Performance, 16 (1976),

•• Generates creative thinking. p. 145. R. R. Blake, H. A. Shepard, and J. S. Mouton, Managing

More responsive to the changing environment. Intergroup Conflict in Industry, (Houston: Gulf Publishing,
Stronger team cohesion (when conflict with outside 1964); M. A. Rahim, “Toward a theory of managing
opponents). organizational conflict.” International Journal of Conflict
Management 13, no. 3 (2002): 206–235 .
Emerging View: Task versus Relationship Conflict Access the text alternate for slide image.

–
Task conflict.
– Focuses on quality of ideas/arguments.
Conflict Handling Styles Contingencies (1 of 3)
1. Problem solving.

– Shows respect for all participants.

Avoids critiquing opponent’s competence or
Best when:
•• Interests are not perfectly opposing.
power.
• Parties have trust/openness.

–
Relationship conflict.
Focuses on (critiques) opponent’s experience,
Issues are complex.
Problems: sharing information that other party might use to

– intelligence, credibility.
Invalidate ideas indirectly by attacking the
their advantage.
2. Forcing.

–
–
opponent, not the idea.
Relies on status, assertive behaviour.
Best when:
•• Quick resolution required.

••
Dysfunctional consequences: Your position has stronger logical or
Triggers defence mechanisms.
Reduces trust: emphasizes • moral foundation.
Other party would take advantage of

• interpersonal differences. cooperation.

Reduces motivation to communicate: Problems: relationship conflict, long-term relations.
escalates conflict.
Conflict Handling Styles Contingencies (2 of 3)
Minimizing Relationship Conflict during Task Conflict 3. Avoiding.
Goal: encourage task conflict, minimize relationship conflict. Best when:
•
–
1. Emotional intelligence.
– Better at regulating emotions, less hostility.
Better at reframing other’s hostility. ••
Conflict is emotionally-charged
(relationship conflict).
Parties want to maintain harmony.

–
2. Team development.
– Better mutual understanding.
High cohesion: motivation to minimize
Cost of resolution outweighs its
benefits.
Problems: conflict unresolved; causes frustration/uncertainty.
relationship conflict. 4. Yielding.

–
3. Psychological safety team norms.
– Perceived safety to constructively disagree.
Best when:
• Issue is less important to you than
Norms encourage respect, show interest,
open-minded. • other party.
Value/logic of your position is

The Conflict Process •• imperfect.

Parties want to maintain harmony.
Other party has much more power.
Exhibit 11.2. Model of the Conflict Process.
Access the text alternate for slide image. Problems: increases other’s expectations.
Structural Sources of Conflict in Open Offices
Open-plan and nonterritorial workspaces have been fuelling Conflict Handling Styles Contingencies (3 of 3)
workplace conflict, most of which occurs as subtle irritation 5. Compromising.
and resentment among co-workers.
©Jacob Lund/Shutterstock
Best when:
• Single issue conflict with opposing
Structural Sources of Conflict 1
• interests.

–
1. Incompatible goals.
One party’s goals seem to interfere with
other’s goals. ••
Parties lack time or trust for problem
solving.
Parties want to maintain harmony.

–
2. Differentiation.
Different training, values, beliefs, and
experiences.
Parties have equal power.
Problem: Sub-optimal solution where mutual gains are
possible.

–
3. Interdependence.
All conflict requires interdependence. Conflict-Handling Style Contingencies
Cultural and Gender Differences in 3. Compare managerial leadership with
Conflict-Handling Styles transformational leadership, and describe the
–
Cultural differences.
Conflict handling preferences vary across
features of task-oriented, people-oriented, and
servant leadership.
– cultures.
Example: more avoidance style in collectivist
cultures.
4.
5.
Discuss the elements of path–goal theory and
leadership substitutes theory.
Describe the two components of the implicit
–
Gender differences.
– Men use more (women less) forcing style. 6.
leadership perspective.
Identify eight personal attributes associated with
– Female managers use more avoiding style.
Women use slightly more problem solving, 7.
effective leaders and describe authentic leadership.
Discuss cultural and gender similarities and
– compromising, yielding.
Reasons: motivation or expectations to protect
relationships.
differences in leadership.
Chapter Glossary
Structural Approaches to Conflict Management 1 Laurie Schultz: Transformational Leader
•
••
Emphasize superordinate goals.
Focus on common goals.
Reduces goal incompatibility and may
Galvanize CEO Laurie Schultz is recognized as one of Canada’s
best business leaders due to her vision, role
modelling, transparent communication, and personalized
reduce differentiation. support for employees at the Vancouver-based GRC software
•
••
Reduce differentiation.
Create common experiences.
Methods: meaningful interaction,
company.
Photo by Good Side Photo and provided by the Greater
Vancouver Board of Trade
rotating staff through
departments/regions, build a strong Leadership Defined
culture. The ability to influence, motivate, and enable others to
•
•
Improve communication and understanding.
Clearer awareness of and respect for
contribute toward the effectiveness of the organizations of
which they are members.
• one another’s situation.
Methods: daily interaction, Johari
•
•
Leaders influence and motivate others.
Leaders are enablers.
• Window, intergroup mirroring.
Warning: Need to first reduce
differentiation.
Photo by Good Side Photo and provided by the Greater
Vancouver Board of Trade
Shared Leadership
Structural Approaches to Conflict Management 2 The view that leadership is a role, not a position assigned to
•
••
Reduce interdependence.
Create buffers. –
one person.
Employees lead each other.
• Use integrators.
Combine jobs into one. –
Shared leadership flourishes where:
– Formal leaders are willing to delegate power.
•
•
Increase resources.
Weigh costs versus conflict. – Collaborative (not competitive) culture.
Employees develop effective influence skills.
•
••
Clarify rules/procedures.
Establish rules. Perspectives of Leadership
Clarify roles, responsibilities, schedules,
etc. –
Four main perspectives of leadership:
– Transformational.
Critical Thinking
At your tables take the time to discuss this scenario. Once
–
–
Managerial.
Implicit leadership.
Personal attributes of leaders.
completed have one member share your rationale for
addressing this conflict.
You have just been transferred from one unit of the Transformational Leadership Model
organization to another unit. On the last day of work in the Exhibit 12.1 Transformational Leadership Model
first unit, your current manager calls your new manager,
informing her that you are a tough candidate and that you Features of a Strategic Vision
possess an attitude. The would-be manager calls you, Vision is an aspirational future with a higher purpose.
providing you with the information, and expresses
apprehension. How would you resolve this conflict?
Features:
–
– Linked to personal values.
Types of Third-Party Intervention
Exhibit 11.5. Types of Third-Party Intervention.
–
–
Challenging objective.
Abstract future state.
A unifying ideal.
Access the text alternate for slide image.
Choosing the Best Third-Party Intervention Strategy Transformational Leadership Elements 1
–
Managers prefer inquisitional strategy.
Problems: Least effective. Poor –
1. Develop/Communicate the vision.
– Use symbols, metaphors, symbols.

–
Mediation:
procedural justice.
Highest potential satisfaction with process and
– Frame the vision.
Leaders communicate with humility,
sincerity, passion.

–
Arbitration:
outcomes.
Use when mediation fails.
–
2. Model the vision.
– Enact the vision (“walk the talk”).
Leader’s own behaviour symbolizes,
©pathdoc/Shutterstock – • demonstrates the vision.
Two functions:
Legitimizes and demonstrates the
Chapter Twelve:
Leadership in Organizational Settings
Learning Objectives
• vision.
Builds employee trust in the leader.
1. Define leadership and shared leadership. Transformational Leadership Elements 2
2. Describe the four elements of transformational
leadership and explain why they are important for
organizational change.
–
3. Encourage experimentation.
Encourage employees to question
current practices.
 – Support a learning orientation. – Achievement-oriented.
–
4. Build commitment to the vision.
Commitment built from communicating,
©mentatdgt/Shutterstock
Path-Goal Leadership Model
– modelling, and encouraging experimentation.
Commitment also built through rewards,
recognition, celebrations.
Exhibit 12.3 Path-Goal Leadership Model
Access the text alternate for image.
Leadership Behaviours
1.Directive — same as task-oriented leadership • Clarify
Transformational Leadership and Charisma performance goals, means to reach goals, performance
Charismatic leadership differs from transformational standards
leadership. 2. Supportive — same as people-oriented leadership •
1a Charismatic leadership: relies on a personal trait (referent Friendly, approachable, makes work pleasant, shows
power) to motivate followers. respect/concern
1b Transformational leadership: relies on behaviours that 3. Participative — employee involvement in decisions •
motivate followers toward a vision. Leader consults with employees, asks for suggestions, applies
2a Charismatic leadership: applies referent power, which ideas
produces dependent followers. 4. Achievement-oriented — encourage peak performance •
Sets challenging goals, continuous improvement, shows high
confidence • Applies goal setting, positive self-fulfilling
2b Transformational leadership: applies persuasion and trust, prophecy
which empower followers.
Path-Goal Leadership Contingencies
Risk that charismatic leaders become intoxicated by their
charisma. –
Skill and experience.
Low: directive and supportive.
Elizabeth Holmes 2015 - –
Locus of control.
– Internal: participative and achievement.
External: directive and supportive.
Evaluating Transformational Leadership
–
Transformational leaders make a difference. –
Task structure.
Nonroutine: directive and/or participative.
Higher satisfaction, commitment, performance,
OCBs, decisions, creativity. –
Team dynamics.
– Low cohesion: supportive.
••
Transformational leadership perspective limitations:
Circular logic.
Dysfunctional norms: directive.
©mentatdgt/Shutterstock
• Mixed models (mixes behaviour with attributes).
Universal theory.
Case Study - A WINDOW ON LIFE
LaCroix Industries in St. Jean, Quebec manufactures wood-
framed windows. Gilles LaCroix, the company founder,
Managerial Leadership continually reinforced the need to make quality windows
Daily activities that support/guide the performance and well- because they provided “a window on life” for so many
being of employees and work unit to support current families. He consistently repeated this point by talking with
objectives and practices. all employees at every convenience. He began taking pictures
–
Managerial leadership vs. transformational leadership:
– Assumes environment is stable (vs. dynamic).
Micro-focused (vs. macro-focused).
of people looking through LaCroix windows and this led to
the company’s popular marketing campaign. LaCroix also
actively involved employees in organizational decisions.
Transformational and managerial leadership are Eventually, the company’s continued success depended on
interdependent. expansion to other parts of the country, so a majority share
was sold to Build-All Products, a conglomerate with
Task versus People Styles of Leadership international marketing expertise in building products. Build-
–
Task-oriented behaviours:
– Assign work, clarify responsibilities.
All brought in Jan Vlodoski to oversee production while
LaCroix met with developers around North America.
– Set goals and deadlines, provide feedback.
Establish work procedures, plan future work.
Vlodoski was a less participative and more directive manager
who tried to shift the emphasis from product quality to
–
People-oriented behaviours:
– Concern for employee needs.
inventory cost efficiency. Inventory costs were reduced, but
product rejects increased markedly during the first year.
–
–
Make workplace pleasant.
Recognize employee contributions.
Listen to employees.
Employee morale dropped significantly and some people quit
in spite of the poor labor market. After 18 months, LaCroix
realized that Build-All’s actions were inconsistent with his
Both styles necessary, but have different effects. vision of the company, while Build-All was not sufficiently
©Ruth Bonneville/Winnipeg Free Press pleased with the company’s return on equity (not quite the
18 percent required by Build-All)
Servant Leadership
Serving followers toward their need fulfilment, personal Case Study Questions
development, and growth. • Identify the symptoms indicating that problems
Selfless, egalitarian, humble, nurturing, empathetic, ethical exist at LaCroix Industries, Ltd
coaches. Use one or more leadership theories to analyze the
••
•
Servant leader characteristics: underlying causes of the current problems at
Natural calling to serve others. LaCroix Industries. What other organizational
• Humble, egalitarian, accepting relationship.
Ethical decisions and actions.
•
behaviour theories might also help to explain some
of the problems?
What should Gilles LaCroix do in this situation?
Path-Goal Leadership
–
Contingency model.
Best style depends on employee and situation.
Leadership Substitutes
Contingencies that limit a leader’s influence or make a
–
Leaders vary styles to:
– Clarify P-to-O expectancies. –
particular leadership style unnecessary.
Example: Training/experience replace task-
– Influence outcome valences.
Facilitate goal achievement. – oriented leadership.
Example: Cohesive team replaces supportive
–
Four path-goal leadership styles.
– Directive.
–
leadership.
Research evidence.
– Supportive.
Participative.
Substitutes help, but don’t completely
substitute for real leadership.
 best alternative to a negotiated agreement (BATNA) —
Implicit Leadership Perspective the best outcome you might achieve through some other
Follower perceptions relevant to leader effectiveness. course of action if you abandon the current negotiation
–
1. Leadership prototypes.
Preconceived beliefs about the features and conflict — the process in which one party perceives that
– behaviours of effective leaders.
Favorable evaluation to leaders who fit the
prototype.
its interests are being opposed or negatively affected by
another party

–
2. Romance of leadership effect.
Distort leader’s perceived effect on firm’s
negotiation— the process in which interdependent
parties with divergent beliefs or goals attempt to reach
–
–
success.
Due to need to simplify explanations.
Due to need for situational control.
agreement on issues that mutually affect them
psychological safety — a shared belief that itis safe to
engage in interpersonal risk-taking; specifically, that
Personal Attributes of Effective Leaders 1 presenting unusual ideas, constructively disagreeing
–
Personality.
Extroversion, conscientiousness, but other Big
Five factors also predict.
with the majority, and experimenting with new work
behaviours will not result in coworkers posing a threat to
their self-concept, status, or career
–
Self-concept.
Complex, internally consistent, clear self-view relationship conflict — a type of conflict in which people
– as a leader.
Positive self-evaluation.
focus their discussion on qualities of the people in the

–
Leadership motivation.
– Motivated to lead others.
Strong need for socialized power.
dispute, rather than on the qualities of the ideas
presented regarding a task-related issue
Drive.
–
– Moderately high achievement need.
Inquisitiveness, action-oriented, boldness.
superordinate goals — goals that the conflicting parties
value and whose attainment requires the joint resources
and effort of those parties
Personal Attributes of Effective Leaders 2 task conflict — a type of conflict in which people focus
–
Integrity.
– Truthfulness, consistent words/actions.
Apply personal values.
their discussion around the issue (i.e., the “task”) in
which different viewpoints occur while showing respect
for people involved in that disagreement
–
Knowledge of the business.
– Understand firm’s environment.
Understand firm’s internal workings.
third-party conflict resolution — any attempt by a
relatively neutral person to help the parties resolve their
–
Cognitive and Practical Intelligence.
– Above average cognitive ability.
differences

– Able to analyze choices/opportunities.

Practical intelligence.
win-lose orientation — the belief that conflicting parties
are drawing from a fixed pie, so the more one party
–
Emotional Intelligence.
Recognize/regulate emotions in self and
others.
receives, the less the other party will receive
win-win orientation — the belief that conflicting parties
will find a mutually beneficial solution to their
Authentic Leadership disagreement
–
Know yourself.
– Engage in self-reflection.
– Receive feedback from trusted sources.
Understand inner purpose.
CHAPTER 13:

–
Be yourself.
– Develop your own style.
Sobeys Redesigns its Organizational Structure
By redesigning its organizational structure, Sobeys recovered
– Self-discipline – anchor around personal values.
Maintain a strong, positive self-evaluation.
from a disastrous acquisition and became a strong competitor
among Canadian grocery retailers.
©kevin brine/Shutterstock
Leader Attributes Perspective Limitations
• Assumes a universal approach. Organizational Structure Defined
• Different combinations of attributes may be equally Division of labour and patterns of coordination,
good. communication, workflow, and formal power that direct
• Views leadership within person – whereas organizational activities.
leadership is relational. ©kevin brine/Shutterstock
• Link between attributes and effective leadership is
muddied by implicit leadership. Division of Labour and Coordination
• Attributes indicate only leadership potential, not
performance. –
Division of labour.
Results in specialization, separate jobs for
Cultural and Gender Issues in Leadership – different people.
Improves work efficiency.
–
Societal cultural values and practices:
– Shape leader’s values/norms. –
Coordination of work.
Division of labour limited to ability to
– Influence leader’s decisions and actions.
Shape follower prototype of effective leaders. – coordinate that work.
Coordinating work can be costly.
–
Gender Issues in Leadership
Similar task- and people-oriented leadership –
Three coordinating mechanisms:
– Informal communication.
– across genders.
Female leaders use more participative – Formal hierarchy.
Standardization.
– leadership.
Women perform better on emerging
leadership, but gender stereotypes affect
ESA Coordinates through Concurrent Engineering
The European Space Agency (ESA) coordinates satellite
followers evaluation of female leaders. designs and missions partly through informal communication.
It forms temporary cross-disciplinary concurrent engineering
CHAPTER 11/12 GLOSSARY:
teams, whose members work together in ESA’s Concurrent – Establishes chain of command (supervision
Design Facility in the Netherlands.
©Dean Mouhtaropoulos/Getty Images – structure).
Creates common mental models, measures of
Coordination Through Informal Communication
All firms use informal communication to coordinate work.
Vital in nonroutine and ambiguous situations.
– performance.
Encourages coordination through informal
communication.
Increasingly possible in large firms through technology.
–
Larger firms also apply: –
Simple Structure.
Small firms — few people, only one distinct
–
–
Liaison roles.
Integrator roles. –
–
product or service.
Minimal hierarchy.
Temporary teams.
©Dean Mouhtaropoulos/Getty Images
Other Coordinating Mechanisms
–
–
Roles are broadly defined.
Centralized structure.
Coordination also through informal
–
Formal hierarchy:
– Direct supervision.
communication.

– Assigns legitimate power to manage others.

Necessary in larger firms but has problems.
Functional Structure
Organizes employees around specific knowledge or other
–
Standardization:
– Standardized processes.
resources (e.g., marketing, production).

– Standardized outputs.
Standardized skills.
Evaluating Functional Structures
Benefits:
–
©Dean Mouhtaropoulos/Getty Images
Elements of Organizational Structure – Economies of scale.
Supports professional identity and career
Span of Control – paths.
Easier supervision.
–
Number of people directly reporting to the next level.
Narrow span of control — few people report –
Limitations:
Emphasizes subunit more than organizational

••
directly to a manager.
Wider span of control is possible when:
Other coordinating mechanisms are present.
–
–
goals.
Higher dysfunctional conflict.
Poorer coordination – requires more controls.
• Routine tasks.
Low employee interdependence. Divisional Structure
Exhibit 13.5 Three Types of Divisional Structure.
Tall versus Flat Structures Diagram (a) shows the geographic divisions at Saputo;
••
As companies grow, they:
Build a taller hierarchy and/or
Widen the span of control.
diagram (b) depicts the four product divisions of Medtronic;
diagram (c) shows the five client divisions of Thomson
Reuters. None of these firms has a pure divisional structure.
–
Problems with tall hierarchies:
Executives receive poorer quality, less timely
At all three companies the top executive team also includes
the heads of functional units. Medtronic executives reporting
–
–
information.
Higher overhead costs.
Undermines employee
to the CEO are responsible for products (shown), geographic
areas, or functional responsibilities.
.
empowerment/engagement. Evaluating the Divisional Structure
Also problems with flattening the hierarchy too much. Benefits:
– Building block structure – accommodates
Centralization/Decentralization
Centralization – Formal decision-making authority is held by a – growth.
Focuses on markets/products/clients.
few people, usually at the top.
Firms decentralize as they get larger and older.
Varying degrees of centralization in different areas of the
–
Limitations:
– Duplication, inefficient use of resources.
Silos of knowledge – expertise isolated across
company.
– Example: sales decentralized; info systems
centralized.
– divisions.
Difficult to identify best divisional structure in
complex environments – changes disrupt
executive power dynamics.
Formalization at Fulfilment by Amazon
Fulfilment by Amazon has very high formalization due to the Team-Based Structure
standardization of work processes. Scanner displays direct Self-directed work teams organized around work processes.
employees to the next task, including time allowed. Typically an organic structure.
Computers calculate how many products employees should Usually found within divisional structure.
pick, move, pack, and store per hour. ©Pond Saksit/Shutterstock
©Matthew Horwood/Alamy Stock Photo Evaluating the Team-Based Structure
Formalization
Standardizing behaviour through rules, procedures, training,
Benefits:
–
– Responsive, flexible.
etc.
Older, larger, regulated firms usually have more – Lower administrative costs.
Quicker, more informed decisions.
formalization.
–
Problems with formalization. –
Limitations:
– Interpersonal training costs.
–
–
Less organizational flexibility.
Discourages creativity. –
–
Team development.
More stressful.
–
–
Less work efficiency.
More job dissatisfaction and stress.
Rules/procedures become focus of attention.
– Team leader issues.
Duplicated resources.
©Pond Saksit/Shutterstock
©Matthew Horwood/Alamy Stock Photo Randon’s Product-Functional Matrix Structure
Mechanistic versus Organic Structures Exhibit 13.6 Matrix Organizational Structure Similar to
Exhibit 13.3 Contrasting Mechanistic and Organic Randon S.A. This is a representation of part of Randon’s most
Organizational Structures recent structure. The complete top-level structure also has
. nonmatrixed functional executives reporting to the CEO or
Departmentalization and Simple Structure COO.
Three functions of departmentalization:
Evaluating Matrix Structures – Providing unique products or attracting clients
Benefits:
–
– Uses resources and expertise effectively.
Potentially better communication, flexibility, –
who want customization.
Cost leadership strategy:
Maximize productivity in order to offer
–
–
innovation.
Focuses specialists on clients and products.
competitive pricing.

– Supports knowledge sharing within specialty.

Solution when two divisions have equal
importance.
CHAPTER 13 GLOSSARY:
centralization — the degree to which formal decision-
making authority is held by a small group of people,
–
Limitations:
More conflict among managers who share
typically those at the top of the organizational hierarchy
divisional structure — an organizational structure
–
–
power.
Two bosses dilute accountability.
Dysfunctional conflict, stress.
in which employees are organized around geographic
areas, outputs (products or services), or clients
Network Structure formalization — the degree to which organizations
Alliance of firms creating a product/service. standardize behaviour through rules, procedures, formal
–
Increasingly common due to:
– Focus on core competencies.
Rapidly changing technology, complex work
training, and related mechanisms
functional structure — an organizational structure in
processes. which employees are organized around specific
Benefits:
–
– Highly flexible.
knowledge or other resources

– Not saddled with old facilities, resources.

Potentially more efficient.
matrix structure — an organizational structure that
overlays two structures (such as a geographic divisional
–
Limitations:
– Exposed to market forces.
Less control over subcontractors.
and a functional structure) in order to leverage the
benefits of both
mechanistic structure — an organizational structure with
External Environment & Structure 1 a narrow span of control and a high degree of
••
Dynamic
Rapid change, unique situations.
Use organic structure.
formalization and centralization
network structure — an alliance of several organizations
••
Stable
Regular cycles, predictable change.
Use mechanistic structure.
for the purpose of creating a product or serving a client
organic structure — an organizational structure with a
wide span of control, low formalization, and
decentralized decision making
organizational strategy — the way the organization
positions itself in its setting in relation to its
External Environment & Structure 2 stakeholders, given the organization's resources,
••
Diverse
Many products, clients, etc.
Use divisional structure and decentralize.
capabilities, and mission
organizational structure — the division of labour as well
••
Integrated
Single product, client, area.
Less need for divisional structure, decentralization.
as the patterns of coordination, communication,
workflow, and formal power that direct organizational
activities
span of control — the number of people directly
reporting to the next level in the hierarchy
team-based structure — an organizational structure built
Effects of Organizational Size around self-directed teams that complete an entire piece
••
As organizations grow, they:
Increase division of labour (job specialization).
Coordinate more with standardization and formal
of work
CHAPTER 14:
• hierarchy.
Become more decentralized.
©kevin brine/Shutterstock Reinventing Microsoft’s Organizational Culture
Microsoft has transformed its organizational culture into one
Technology and Structure that embraces internal collaboration and a growth-
Mechanisms/processes for making products or services. oriented “learn-it-all” mindset.
–
Two contingencies:
Task variability: how predictable are job duties
©James D Morgan/Shutterstock

– each day.
Task analyzability: how much work follows
known procedures.
Organizational Culture Defined
• The values/assumptions shared within an organization.
Provides direction toward the “right way” of doing
–
•
Recommendations: things.
High task variability, low task analyzability – Company’s DNA is invisible, yet powerful template for
–
•
apply an organic structure. employee behaviour.
Low task variability, high task analyzability – ©James D Morgan/Shutterstock
apply a mechanistic structure.
Elements of Organizational Culture
Organizational Strategy Access the text alternate for image.
–
Structure follows strategy.
Strategy points to the environments in which
Exhibit 14.1 Artifacts of Organizational Culture
Content of Organizational Culture
– the organization will operate.
Leaders decide which structure to apply.
Innovation strategy:
The relative ordering of values.
•
Problems with org culture models and measures:
Oversimplify diversity of possible values.
•• Ignore shared assumptions.
Assume company cultures are clear and unified.
–
An organization’s culture is fuzzy:
– Diverse subcultures (“fragmentation”).
Values exist within individuals, not work units.
Exercise

Organizational Culture Profile At our tables:

Exhibit 14.2: Organizational Culture Profile dimensions and Using into recent news, articles or company website, list
Characteristics examples of the invisible and visible aspect within the
Source: Based on information in C.A. O’Reilly III, J. Chatman, assigned organization.
and D.F. Caldwell, “People and Organizational Culture: A
Profile Comparison Approach to Assessing Person– How can understanding both visible and invisible aspects of
Organization Fit,” Academy of Management Journal 34, no. 3 culture be beneficial in managing and leading organizations?
(1991): 487–518.
Artifacts: Physical Structures/Symbols
Exhibit 14.2: Organizational Culture Profile dimensions and Building structures may shape and reflect culture.
Characteristics
Source: Based on information in C.A. O’Reilly III, J. Chatman,
and D.F. Caldwell, “People and Organizational Culture: A
–
Office design conveys cultural meaning.
Furniture, office size, wall hangings, friezes.
© Donna McClement
Profile Comparison Approach to Assessing Person– Organizational Culture Strength
Organization Fit,” Academy of Management Journal 34, no. 3 How widely and deeply employees hold the company’s
(1991): 487–518.
–
dominant values and assumptions.
Most employees understand/embrace the

Organizational Subcultures
–
–
culture.
Institutionalized through artifacts.
Long-lasting – possibly originate with
–
Dominant culture:
Values/assumptions shared most consistently
–
founder(s).
Three functions of strong cultures:

–
Subcultures:
and widely.
–
–
Control system.
Social glue.
– Located throughout the organization.
Countercultures are subcultures that oppose
aspects of the dominant culture.
Sense-making.
Organizational Culture and Effectiveness
–
Two functions of countercultures:
– Surveillance and critical review.
Source of emerging values.
Exhibit 14.4 Potential Benefits and Contingencies of Culture
Strength
Access the alternate text for image.
Contingencies of Culture Strength
Moose Artifacts at Galvanize
Galvanize employees often utter the phrase “put the moose
on the table,” which means that an awkward but necessary
–
Culture content is aligned with the environment.
Misaligned culture guides wrong decisions and
behaviours for relations with stakeholders.
topic needs to be discussed. The Vancouver-based software
firm even has moose artifacts to remind everyone of this
important practice.
–
Culture strength is not the level of a cult.
– Cults lock people into mental models.
Cults suppress subculture dissenting values.
©Reven T.C. Wurman/Alamy
Organizational Culture Artifacts
–
Culture is an adaptive culture.
– External focus: need for continuous change.
Support continuous improvement of internal
–
Observable symbols and signs of culture:
Physical structures, ceremonies, language, – work processes.
Learning orientation.
– stories.
Maintain and transmit organization’s culture.
Need many artifacts to accurately decipher a company’s
Merging Cultures: Bicultural Audit
Audit is part of the merger’s due diligence.
culture. Minimizes cultural collision by diagnosing companies.
©Reven T.C. Wurman/Alamy
••
Three steps in bicultural audit:
Identify cultural artifacts.
Artifacts: Stories and Legends
Social prescriptions of desired (or dysfunctional) behaviour.
Realistic human side to expectations.
• Analyze data for cultural conflict/compatibility.
Identify strategies and action plans to bridge
cultures.
–
Stories and legends are most effective when they:
– Describe real people.
©alexmillos/Shutterstock

–
–
Are assumed to be true.
Are known throughout the organization.
Are prescriptive.
Merging Organizational Cultures
• Assimilation: Acquired firm staff embrace acquiring
culture.
• Deculturation: Acquiring firm imposes its culture and
Artifacts: Language, Rituals, Ceremonies practices.
Language:
– How employees address others, express
• Integration: Composite culture preserves best of past
cultures.
– emotions, describe stakeholders, etc.
May occur naturally by employees or
deliberately reinforced by leaders.
• Separation: Merged firms keep their own corporate
cultures and practices.
©alexmillos/Shutterstock
Rituals:
– Programmed routines (e.g., how visitors are
greeted).
Changing/Strengthening Organizational Culture 1
Exhibit 14.6 Strategies for Changing and Strengthening
Organizational Culture.
Ceremonies:
– Planned activities for an audience (e.g., award
Access the text alternate for the image.
Changing/Strengthening Organizational Culture 2

Exercise
ceremonies).
–
1. Model desired culture through actions of founders/leaders.
– Founder’s values/personality.
Transformational leaders can reshape culture
and organizational change practices.
–
2. Align artifacts with the desired culture.
Artifacts keep culture in place.
 to attract, select, and retain people with values and
Changing/Strengthening Organizational Culture 3 personality characteristics that are consistent with the
–
3. Introduce culturally consistent rewards and recognition.
Rewards are powerful artifacts.
organization's character, resulting in a more
homogeneous organization and a stronger culture
–
4. Support workforce stability and communication.
– Takes time to understand culture.
Strong culture depends on frequent,
bicultural audit — a process of diagnosing cultural
relations between the companies and determining the
open communication. extent to which cultural clashes will likely occur
–
5. Use attraction, selection, and socialization for cultural ‘fit.’
– Attraction-selection-attrition theory.
Socialization practices.
ceremonies — planned displays of organizational
culture, conducted specifically for the benefit of an
audience
Attraction-Selection-Attrition Theory
– •
Culture strength increases through:
Attraction:
Applicants self-select based on
learning orientation — a set of collective beliefs and
norms that encourage people to question past practices,
learn new ideas, experiment putting ideas into practice,
– • compatible values.
Selection:
Firms select applicants with compatible
and view mistakes as part of the learning process
organizational culture — the values and assumptions
shared within an organization
– • values.
Attrition:
Employees with incompatible values
organizational socialization — the process by which
individuals learn the values, expected behaviours, and
quit/removed. social knowledge necessary to assume their roles in the
organization
Organizational Socialization
The process by which individuals learn the values, expected psychological contract — the individual's beliefs about
behaviours, and social knowledge necessary to assume their the terms and conditions of a reciprocal exchange
roles in the organization. agreement between that person and another party
–
Learning Process:
Newcomers develop organizational
(typically the employer)

– comprehension.
Learn about expectations, power dynamics,
realistic job preview (RJP) — a method of improving
organizational socialization in which job applicants are
– culture, jargon.
Form social relationships.
given a balance of positive and negative information
about the job and work context
–
Adjustment Process:
– Newcomers adapt to new work setting. reality shock — the stress that results when employees
–
–
Develop new work roles/social identity.
Adopt new team norms/behaviours.
Newcomers with diverse work experience
perceive discrepancies between their pre-employment
expectations and on-the-job reality
adjust better. rituals — the programmed routines of daily
organizational life that dramatize the organization's
Psychological Contracts culture
Individual’s beliefs about the terms and conditions of a
reciprocal exchange agreement between that person and CHAPTER 15:
another party.
–
Transactional contracts:
– Short-term economic exchanges.
Well-defined responsibilities.
Leading Change at Blueshore Financial
Blueshore Financial relied on communication, involvement,
–
Relational contracts:
– Long-term attachments.
Broad range of mutual obligations.
and other organizational change strategies to transform itself
from a regular credit union into a successful “financial spa”
business on Canada’s west coast.
©Blueshore Financial
Stages of Organizational Socialization
Exhibit 14.7 Stages of Organizational Socialization Driving and Restraining Forces
Access the text alternate for the image.
Improving Organizational Socialization –
Driving forces:
– Push organizations toward change.
–
Realistic job preview (RJP):
A balance of positive and negative information
–
External forces or leader’s vision.
Restraining forces:

– •
about the job and work context.
Socialization agents: – Resistance to change.
Employee behaviours that block the change
Supervisors:
Technical information, performance – process.
Try to maintain status quo.
– • feedback, job duties.
Co-workers:
Ideal when accessible, role models,
©Blueshore Financial
Force Field Analysis Model
tolerant, and supportive. Exhibit 15.1 Lewin’s Force Field Analysis Model.
Access the text alternate for image.
CHAPTER 14 GLOSSARY: Understanding Resistance to Change
adaptive culture — an organizational culture in which –
Many forms of resistance.
Complaints, absenteeism, passive
employees are receptive to change, including the
ongoing alignment of the organization to its – noncompliance.
Subtle resistance more common than overt.
environment and continuous improvement of internal
processes –
View resistance as task conflict.
Signals that employee lack readiness for
change or that change strategy should be
artifacts — the observable symbols and signs of an revised.
organization’s culture
attraction-selection-attrition (ASA) theory — a theory
–
View resistance as a form of voice.
Redirect resistance into constructive
conversations.
which states that organizations have a natural tendency
 – Encourages better decisions through
–
3. Involvement: employees involved in the process.
– involvement.
Voice and involvement increase commitment –
–
More personal responsibility/ownership.
Minimizes not-invented-here syndrome.
to change.
Why People Resist Change 1
–
–
Reduces fear of unknown.
Better decisions about the change initiative.
Problems: time-consuming, potential conflict.
–
1. Negative valence of change.
Negative more than positive outcomes. –
4. Stress management: help staff cope with change.
– Removes some negative valence of change.
–
2. Fear of the unknown.
– People assume worst.
Perceive lack of control.
–
–
Less fear of unknown.
Less wasted energy.
Problems: time-consuming, costly, doesn’t help
–
3. Not-invented-here-syndrome.
Staff oppose change in their area introduced by
everyone.

– others.
To protect self-esteem.
Reducing the Restraining Forces 3
–
5. Negotiation.
(man) Jacob Wackerhausen/Getty Images, (blocks) Mark
Dierker/McGraw Hill Education – Influence by negotiation reduces direct costs.
For those who clearly lose (negative valence
Why People Resist Change 2 – from change).
Problems: expensive, gains compliance not
•
–
Breaking routines.
Changing routines/habits is uncomfortable,
–
6. Coercion.
commitment.

•
–
learning new behaviours takes time/effort.
Incongruent team dynamics.
Team norms conflict with desired change.
–
–
When other strategies fail.
Assertive influence.
Dismissals remove outdated mental models,
•
–
Incongruent organizational systems.
Systems/structures reinforce status quo.
(man) Jacob Wackerhausen/Getty Images, (blocks) Mark
– routines.
Problems: reduces trust, may create subtle
resistance, organizational politics.
Dierker/McGraw Hill Education
Refreezing the Desired Conditions
Unfreezing, Changing, Refreezing Systems and structures hold (refreeze) changes.
Force field model: unfreeze the current situation, move to a
desired condition, refreeze the system so it remains in this
Examples:
–
– Alter rewards to reinforce new behaviours.
desired state.
–
Three strategies for unfreezing: – Change career paths.
Revise information systems.
–
–
Increase driving forces.
Weaken/remove restraining forces.
Increase driving forces AND reduce restraining
(man) Jacob Wackerhausen/Getty Images, (blocks) Mark
Dierker/McGraw Hill Education
forces (preferred strategy). Transformational Leadership and Change
Critical Thinking Exercise –
Transformational leaders are change agents.
– Champion vision of desired future.
Scenario 1 –
–
Communicate the vision meaningfully.
Act consistently with the vision.
Encourage employee experimentation.
Scenario 2 –
Strategic vision and change.
– Provides a sense of direction.
Identifies critical success factors to evaluate
Creating an Urgency for Change at Slack –
–
change.
Links employee values to the change.
A few years ago, when Slack didn’t have any serious
competitors, Canadian co-founder Stewart Butterfield
generated an urgency for change. “It’s up to me to instil the
– Minimizes employee fear of the unknown.
Clarifies role perceptions.
message that we have a year, maybe 18 months, before we Coalitions, Social Networks, and Viral Change
really have to lock horns with anyone,” said Butterfield.
Slack Technologies, Inc –
Guiding coalition.
– Group has strong commitment to change.
.
Creating an Urgency for Change – Diagonal representation of the firm.
Informal influence leaders.
Inform employees about driving forces.
–
Customer-driven change:
Reveals problems and consequences of
–
Social networks and viral change.
– Word-of-mouth, viral marketing.
Network members have mutual trust and
– inaction.
Human element energizes. – referent power.
Network members learn new behaviours
–
Create urgency without external drivers.
– Requires persuasive influence.
Positive vision rather than threats.
through observation.
© franckreporter/Getty Images
Pilot Projects and Diffusion of Change
Slack Technologies, Inc Rely on pilot projects and diffuse through MARS model.
.
Reducing the Restraining Forces 1 –
Motivation.
– Pilot project successful, rewarded.
–
1. Communication.
– Highest priority, first strategy. Ability.
–
Minimize resistance to change.

–
–
Generates urgency to change.
Reduces uncertainty.
Problems: takes time, costly. –
Employees learn pilot behaviour.
Role perceptions.
Translate pilot to other situations.
–
2. Learning.
– Provides new knowledge/skills.
Strengthens self-efficacy, more commitment to
–
Situational factors.
Provide resources to apply pilot elsewhere.
© franckreporter/Getty Images
– change.
Problems: potentially time consuming and
costly.
Action Research Approach
–
Action orientation.
Diagnose, conduct interventions to achieve
change.
Reducing the Restraining Forces 2 Research orientation.
 –
– Data-driven, problem-oriented approach.
Use data to diagnose problems, evaluate
change success.
–
Open systems view.
– Organization has many interdependent parts.
Need to be aware of unintended
consequences.
–
Highly participative process.
Change requires employee knowledge and
– commitment.
Employees are co-researchers and participants.
Action Research Process
Form client-consultant relationship.
Diagnose need for change.
Introduce intervention.
Evaluate and stabilize change.
Disengage consultant’s services.
Appreciative Inquiry Approach
Frames change around positive and possible future, not
problems.
• Positive principle: Focus on positive, not problems.
• Constructionist principle: Conversations shape reality.
• Simultaneity principle: Inquiry and change are
simultaneous.
• Poetic principle: We choose how situations are
perceived (glass half full).
• Anticipatory principle: People are motivated by
desirable visions.
Four-D Model of Appreciative Inquiry
Exhibit 15.6 The Four-D Model of Appreciative Inquiry.
Access the text alternate for image.
Large Group Interventions
Highly participative events involving employees and other
–
stakeholders.
– Involve the “whole system”.
Future oriented, usually to create a shared
vision.
–
Limitations of large group interventions:
– Limited opportunity to contribute.
– Risk that a few people will dominate.
Focus on common ground may hide
– differences.
Generates high expectations about ideal
future.

–
Parallel Learning Structure Approach
– Highly participative social structures.
Members representative across the formal
–
–
hierarchy.
Applies the action research model of change.
– Sufficiently free from firm’s constraints.
Develop change solutions; then applied back
into the larger organization.
©FrameStockFootages/Shutterstock
Cross-Cultural, Ethical Concerns with Change
–
Cross-Cultural Concerns.
Assumes that change occurs in a linear
– sequence.
Assumption that change is necessarily
punctuated with tension and overt conflict.
–
Ethical Concerns.
– Privacy rights of individuals.
– Management power.
Individuals’ self-esteem may be undermined.
Organizations Are about People
“Take away my people, but leave my factories, and soon grass
will grow on the factory floors. Take away my factories, but
leave my people, and soon we will have a new and better
factory.”
Andrew Carnegie (1835-1919)