After studying this chapter, students should be able to understand the following:

This chapter explores how managers use power and organizational politics. Organizations today use power

and politics differently than in the past, given the uncertain environment and the shift to flatter hierarchies,

team structures, and employee empowerment. This chapter opens with a look at power, including the

individual and organizational sources, the effect of culture and gender, corruption of power, and potential

benefits of empowerment. Next, the chapter examines politics.

Power, the ability of one person to influence another, is not limited to managers. Employees at all levels and

outsiders such as customers have the ability to influence the actions and attitudes of other people. Someone

need not have power to influence another person—and those with influence may not have power. Also,

power is not the same as authority. Authority is the power vested in a particular position, such as the power

of the security director.

Power is the ability of one person to influence another. It is not the same as authority, which refers to the

power vested in a particular position. It is not synonymous with influence, either, since someone who has

power may not be able to influence others while someone without power may have the ability to influence

others. Power, authority, and influence are all integral parts of any organization, although the way

Three types of power derive from the person's formal position in the organization:

• Legitimate power: It is based on a person holding a formal

position;

• Reward Power: reward power, based on a person's access to

rewards.

• Coercive Power: coercive power, based on a person's ability

to punish.

Two types of power derive from the individual:

• Expert power,: Expert power is based on personal expertise

and knowledge

• Referent Power: referent power, based on a person's

attractiveness to others.

Organizational sources of power, which derive from the structure, depend on strategic contingencies—

elements that are essential to the performance and effectiveness of the organization, department, or team.

The three strategic contingencies that are sources of organizational power are: coping with uncertainty;

centrality in the resource network; and dependency and substitutability.

Power is necessary in an organization because it helps managers fulfill their leadership responsibilities; it

also helps all employees influence others in pursuit of organizational and personal goals. Two key benefits

are the ability to inspire commitment (as a reaction to expert or referent power) and the ability to reduce

uncertainty for others in the organization. Empowerment leads to other benefits, such as support for

creativity and reduction of bureaucratic obstacles. The main disadvantage is the potential for misuse and abuse, which can harm individuals and the organization.

Power corruption occurs when someone has a great deal of power but is not held accountable for its use.

The result is abuse of power for personal gain. The power corruption cycle starts when managers are

physically removed from their employees, they may develop an inflated view of themselves. The disparity in

power can cause employees to feel helpless, so they respond by becoming more submissive and dependent

and by flattering the manager. The consequences of the power corruption cycle are poor decision making,

use of coercion, low opinion of employees, more distance from employees, and possibly ethical or illegal

actions taken by the manager.

Organizations can prevent corruption of power by pushing for more contact between managers and

employees; reducing employees' dependence on managers; and creating an open, performance-centered

organizational culture and structure.

One of the most visible ways managers and organizations can encourage the ethical use of power is by

modeling and rewarding ethical behavior. In addition, they can establish appropriate policies and procedures

to identify and stop unethical use of power and create an organizational culture that values high ethical

standards for the use of power.

Organizational politics are activities that allow people in organizations to achieve goals without going

through formal channels. Whether political activities help or hurt the organization depends on whether the

person's goals are consistent with the organization's goals. In the rational model of organizations, people are

assumed to manage logically, based on clear information and well-defined goals.

Three elements create the conditions under which political activities thrive.

a. Changes in any of the five strategic contextual forces (environment, technology, strategy,

culture, and structure) can generate uncertainty over resource allocation, leading to an

increase in political behavior.

b. Changes in the coordination and integration of organizational activities used to achieve

common goals can also lead to an increase in political behavior.

c. Finally, changes in leadership, which change traditional relationships and processes, can

create an opportunity for increased political behavior.

Organizational politics are activities that allow people in organizations to achieve goals without going

through formal channels. In the rational model of organizations, people are assumed to manage logically,

based on clear information and well-defined goals. In contrast, the political model assumes that information

is scarce, individuals and groups have diverse goals,

negotiation and alliances drive decision making, and

individual goals take the place of rational, systematic

processes for problem solving and decision making.

Political tactics are activities that fall outside the

standardized, formal processes of the organization.

Four types of political tactics are building

relationships, controlling resources, image

management, and blame and ingratiation.

• Building Relationship

People develop relationships through coalitions, alliances, networks, and supportive managerial linkages. Coalitions are relationships formed over specific

issues; alliances are general agreements of support among different individuals and groups; and networks are

broad, loose support systems. Relationship building can either help or harm the organization.

Controlling resources and decisions, another type of political tactic, involves developing expertise,

becoming indispensable, and influencing decision criteria. Like relationship building, controlling resources

and decisions can either help or harm the organization.

Image management means remaining visible and presenting oneself in the best light within the

organization. It also means knowing when to avoid association with people who are considered deviants.

Blaming and attacking others to deflect attention from one's mistakes—and using ingratiating behavior to

gain favor—are unethical and negative types of political actions.

Managers need to manage political behavior from two directions. First, they should seek to maintain and

encourage constructive relationships, which are essential for coordination and effectiveness within the

organization. Second, they also need to reduce negative, self-interested behaviors that can hurt the

organizations. This can be accomplished through an open, supportive organizational culture; information

sharing to reduce uncertainty; use of consistent, open, and fair processes, procedures, and rewards;

increased cooperation with decreased internal competition; and rewarding and modeling constructive

behaviors.

Power and politics are linked to strategy, structure, and culture. The development and implementation of

the organization's mission, strategy, and goals entails much uncertainty, which makes the strategic planning

process ripe for political activity. To be effective, managers must apply both power and politics as they

negotiate, build relationships, and seek cooperation from others. The structure determines how power will

be distributed in the organization, and managers need power to make structural changes in response to the

environment. National and ethnic cultural values influence how managers perceive and use power. But

power and politics also affect the organization's culture; in particular, how a top leader uses power and

politics helps shape the culture.

Power Ability of a person to influence another.

Authority Power vested in a particular position.

Expert Power Based on personal expertise and knowledge in a certain area. Others

comply because they believe in the power holder's knowledge.

Legitimate Power Based on a person holding a formal position. Others comply because they

believe in the legitimacy of the power holder.

Reward Power Based on a person's access to rewards. Others comply because of the

desire to receive rewards.

Organizational Politics Activities that allow people in organizations to achieve goals without

going through formal channels.