Bài giảng Principles of Management - Chapter 15 Managing Through Power, Influence, and Negotiation

Cover for Hill/McShane1egoes herechapter 15Managing Through Power, Influence, and NegotiationMcGraw-Hill/IrwinPrinciples of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.Learning ObjectivesExplain why power and influence are necessary to get things done in organizations.Identify the main sources of managerial power.Discuss the contingencies that influence the magnitude of the manager’s power.Outline the various tactics managers can pursue to increase their influence in an organization.Describe what a manager can do to increase the chance of negotiating effectively.PowerPower – the potential of a person , team, or organization to require others to do certain things.Potential is emphasized because people may not have to exercise it in order to get things doneA prerequisite – another person or group must believe that it is dependent on another person or groupCountervailing power – power that subordinates have over their superiorsQuestion The possession of power always corrupts the power holder. Do you agree? Explain.Organizational PowerThere’s no doubt that there are many greedy executives. Some are obsessed with money while others with power.But the lure of power attracts people who often prove to be extremely poor leaders.Those who amass the most power do not necessarily prove to be the best performers.Very many leaders are simply not effective in basic leadership tasks.According to one survey, between 30 and 40 percent of managers failed to give credit to their staff for work, criticized employees behind their back and even blamed them to cover up their own mistakes.Source: www.slowleadership.org, December 6, 2006Power DependencePerson APerson BPerson B’s goalsPowerCountervailing powerValuable resourceWhy is Power Important to management Effectiveness?Organizations are political entities in which different people or units control scarce resourcesTo meet goals, a manager must realize that he/she is dependent upon othersManagers must work to create power of his/her own in order to influence others to get things doneDifferent PerspectivesGREED IS GOODBE TOUGHATTACK ONLY WHEN VICTORY IS LIKELYBEAT THE ENEMYGRRED IS BADBE FAIRACT RATHER THAN REACTSEEK HIGHER CONSCIOUSNESSSun TzuBhagavad GitaOn Financial IncentivesOn Managing UnderlingsOn InitiativeOn the Ultimate Goal>>>>Source: Business Week, October 30, 2006Sources and Contingencies of PowerSources of power:Hierarchical positionExpertiseControl over informationNetwork of alliesIndividual attributesContingencies of power:SubstitutabilityCentralityDiscretionVisibilityInfluence over organizational outcomesHierarchical PowerLegitimate Power – Power deriving from an implicit agreement that people higher in a hierarchy can request certain behaviors of their subordinatesPower over Rewards and Sanctions – Managers can reward behavior that they deem consistent with company goals and punish those whose performance is below parPower over the Allocation of Scarce Resources – “He who has the gold makes the rules.” Scarce ResourcesWork SpacePlant EquipmentPeopleCapitalPower Through Information ControlWheel formation (centralized information flow)All-channel formation (decentralized information flow)High information controlAttributes for Acquiring and Holding PowerEnergy, endurance, and physical staminaThe ability to focus one’s energy and avoid wasted effortEmpathy, which makes it possible to read and understand othersFlexibility, particularly with respect to selecting various means to achieve one’s goalsThe willingness, when necessary, to engage in conflict and confrontationEloquence-the ability to make points in a logical and evocative fashionIntegrityIndividual Attributes as Sources of PowerEnergyFocusAbility to tolerate conflictIntegrityEloquenceFlexibilityEmpathyPersonal PowerContingencies of PowerSubstitutability – the availability of alternative resourcesCentrality – the degree and nature of interdependence between the power holder and othersDiscretion – freedom to exercise judgmentVisibility – the extent to which a power holder is known, or visible, to othersInfluence TacticsSilent Authority – occurs when someone complies with a request because of role expectations and the requester’s legitimate hierarchical powerAssertiveness – applying hierarchical power to influence othersNetwork Building – actively seeking and establishing relationships with people who may prove useful in the futureExchange – the promise of benefits or resources in exchange for another party’s compliance with your requestInfluence Tactics (cont.)Coalition – a group of people that comes together to cooperate in attaining a certain goalIngratiation – attempts to increase the extent to which someone likes youImpression Management – the process of actively shaping one’s public imagePersuasion – the use of reason through factual evidence and logical argumentsInoculation Effect – warning an audience you are trying to influence about opposing arguments Dave consistently works on flattering his boss in front of others, helping and volunteering for additional work when the boss or coworkers needed, and seeking his boss’s advice on actions. It appears that Dave is utilizing which of these influence tactics? ExchangeAppealing to a higher authorityAssertivenessIngratiationQuestionA Taxonomy of Influence TacticsRewardPunishmentPositive ExpertiseNegative ExpertiseLiking, IngratiationGifting, Pre-givingDebtAversive StimulationMoral AppealPositive Self-feelingPositive AltercastingNegative AltercastingAltruismPositive Esteem of OthersNegative Esteem of OthersSource: www.workingpsychology.comIngratiation and InfluenceHighLowLow HighExtent of ingratiationInfluenceModerate levels of ingratiation produce the most influenceHigh ingratiation efforts produces resistance and declining influenceConsequences of Influence TacticsResistanceComplianceCommitmentConflict & NegotiationConflict– a situation that arises when one party perceives that its interests are being opposed or negatively influenced by another partyNegotiation – an interpersonal decision-making process by which two or more parties try to reach an agreement over an issue that is being disputedNegotiation Do’s and Don’tsBone upBe prepared to bailFly soloFind the kahunaBe afraid to ask for the moonDisclose salary infoBurn the bridgesOverdo itDo’s Don'ts Source: Playbook: Best Practices; Business Week OnlineNegotiating Initial SalaryKnow the going rateSettle on a range, not a numberUnderstand what they’re buyingDon’t make the first moveMake your caseOffer optionsSource: The Wall Street Journal, August 22, 2006Bargaining Zone Model of NegotiationYour initial offer pointYour target pointYour resistance pointOpponent’s resistance pointOpponent’s initial offer pointOpponent’s target pointArea of potential agreementNegotiating EffectivelySituational FactorsPower and NegotiationBehavioral FactorsDepends OnImportance of Concessions with NegotiationsEnable the parties to move toward the area of potential agreementSymbolize each party’s motivation to bargain in good faithTell the other party about the relative importance of the negotiating items