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MBA 552
Organizational Behavior &
Leadership
Historical Evolution of
Management Thought
• Pre-Scientific Pre – 1880s
• Focus –
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Basic principles for nature and society
Position of authority and order
Economic Rationale
Early development of division of labor
Scholars – Pre-scientific
• Jethro – Moses’ father-in-law
– Gave advice to Moses regarding authority over the
tribes of Israel
• Sun tzu – Wrote “The Art of War” 500BC
– Recognizes need for hierarchy, communications, and
planning
• Aristotle 360 BC – Socrates 44 BC
– Management related to cultural environment
• Xenophon 370 BC – Division of labor
• Machiavelli – Unity of command and leadership
• Adam Smith – Factory system & Division of Labor
Work and the Ruling Class
• Work – Accomplished by slaves and lower
level classes of people
• Elite ruled according to traditions
The Classical Era 1880s-1930s
• Scientific Management
• Administrative school
• Structuralist school
The Classical Era 1880s-1930s
• Focus
• Scientific Management
– Organizing, managing, effective, efficient
• Administrative school
– Basic functions of managers
• Structuralist school
– Characteristics of the ideal type of an
organization
The Classical Era 1880s-1930s
• Scholars
• Scientific Management
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Frederick Taylor
work measurement
Best way to do a job
Selection of individuals for the position
Financial incentives
The Classical Era 1880s-1930s
• Scholars
• Administrative school
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Henry Fayol
Planning
Organizing
Commanding
Coordinating
Controlling
The Classical Era 1880s-1930s
• Scholars
• Structuralist school
– Max Weber
– Bureaucratic Model
• Order via rules, procedures, authority, division of
labor, functional specialization, well-defined
hierarchy, differentiation of organizational functions,
uniformity, and consistency
The Neoclassical Era 1830s-1960s
• Human Relations School
• Behavior schools
– Group Dynamics
– Leadership
– Decision making
The Neoclassical Era 1830s-1960s
• Cooperative systems
• Informal roles and norms influence
individual performance
• Work group dynamics influence individual
and group performance
• Decision-making styles influence
performance
The Modern Era 1960- present
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Systems School
Societal Systems School
Management science school
Contingency school
The Modern Era 1960- present
• Systems School
– Organizations are composed of systems and
subsystems
• Societal Systems School
– Composed of social, technological, and
environmental subsystems
The Modern Era 1960- present
• Management science school
– Quantitative methods used to solve
management and organizational issues
• Contingency school
– Explores alternative organization design
configurations and managerial actions for
changing situations
Expectations theory
• Self-fulfilling prophecy
Expectations theory
• Self-fulfilling prophecy
– Belief that an event or outcome will take place
Expectations theory
• Self-fulfilling prophecy
• Three steps
– Belief an event will occur
– New behavior performed that would not have
been performed if not for the expectation
– The expected event occurs
Learning
• Individual
• Team
• Organizational
Individual Learning
• Change of skills, insights, knowledge,
attitudes, and values acquired by self-study,
technology based instruction, insight and
observation.
Power
• America’s last dirty word
• Those that openly seek it are categorized as
power mongers – as if this is some sort of
stigma
• They are looked down upon as lowly
individuals
Concept of Power
Power - the ability to influence another person
Influence - the process of affecting the thoughts,
behavior, & feelings of another person
Authority - the right to influence another person
The Meaning of Power
Power is the capacity of a person, team, or
organization to influence others.
– The potential to influence others
– People have power they don’t use and may not know
they possess
– Power requires one person’s perception of dependence
on another person
C. Price, Vancouver Province
Power
• The ability to produce change by mobilizing
one or more people to take action
Power
Important to achieve organizational goals
Alliances are formed
Work gets accomplished
Leadership happens
Concept of Power
Zone of Indifference - the range in which
attempts to influence a person will be perceived
as legitimate & will be acted on without a great
deal of thought
Zone of Indifference
Managers strive to expand the zone of indifference
Zone of Indifference
Sources of Power
Legitimate Power
Reward Power
Coercive Power
Expert Power
Reuters Archive Photos
Referent Power
Sources of Organizational
Power: Interpersonal
Reward Power - agent’s ability to control the
rewards that the target wants
Coercive Power - agent’s ability to cause an
unpleasant experience for a target
Legitimate Power - agent and target agree that
agent has influential rights, based on position
and mutual agreement
Referent Power - based on interpersonal attraction
Expert Power - agent has knowledge target needs
Which Power is Most Effective?
Expert Power!
• Strong relationship to performance & satisfaction
• Transfers vital skills, abilities, and knowledge
within the organization
• Employees internalize what they observe & learn
from managers they consider “experts”
Information Power
Information Power - access
to and control over
important information
• Formal/informal position in
communication network
• Interpreting information
when passing it on
Information and Power
• Control over information flow
– Based on legitimate power
– Relates to formal communication network
– Common in centralized structures (wheel pattern)
• Coping with uncertainty
– Those who know how to cope with organizational uncertainties
gain power
• Prevention
• Forecasting
• Absorption
Using Power Ethically
Does the behavior produce a
good outcome for people both
inside and outside the
organization?
Does the behavior respect the
rights of all parties?
Does the behavior treat all
parties equitably and fairly?
Two Faces of Power
Personal Power
 used for personal gain
Social Power
 used to create motivation
 used to accomplish group goals
Successful Power Users
• Have high need for social power
• Approach relationships with a communal orientation
• Focus on needs and interests of others
belief in the
authority system
preference for
work & discipline
belief in justice
altruism
Sources of Organizational Power:
Intergroup
• Control of critical resources
• Control of strategic contingencies - activities that
other groups need to complete their tasks
• Ways groups hold power over other groups
– Ability to reduce uncertainty
– High centrality - functionality central to organization’s
success
– Nonsubstitutability - group’s activities are difficult to
replace
Power Analysis:
A Broader View
Organizational Power
Coercive Power - influence through threat of
punishment, fear, or intimidation
Utilitarian Power - influence through
rewards and benefits
Normative Power - influence through
knowledge of belonging, doing the right thing
Power Analysis:
A Broader View
Organizational Membership
Alienative Membership - members feel
hostile, negative, do not want to be there
Calculative Membership - members weigh
benefits and limitations of belonging
Moral Membership - members have positive
organizational feelings; will deny own needs
Kanter’s Symbols of Power
Ability to intercede for someone in trouble
Ability to get placements for favored employees
Exceeding budget limitations
Procuring above-average raises for employees
Getting items on the agenda at meetings
Access to early information
Having top managers seek out their opinion
Kanter’s Symbols of
Powerlessness
Top Executives
• budget cuts
• punishing behaviors
• top-down communications
Managers
Staff Professionals
• resistance to change
• turf protection
First-line Supervisors
• assign external attribution - • overly close supervision
blame others or environment • inflexible adherence to rules
• do job rather than train
Key to overcoming powerlessness:
share power & delegate decision making
Korda’s Power Symbols
Power - there are more people who inconvenience
themselves on your behalf than there are people on
whose behalf you would inconvenience yourself
Status - a person’s relative standing in a group
based on prestige and deference
Time
Access
Furnishings
Using Power Effectively
• Use power in ethical ways
• Understand and use all of the various types
of power and influence
• Seek out jobs that allow you to develop your
power skills
• Use power tempered by maturity and selfcontrol
• Accept that influencing people is an
important part of the management job
Analyzing Power Dynamics
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Think
Think
Think
Then Act
Analyzing Power Dynamics
• Power Distribution
– Who has the power
– Who needs the power
– What can be done to influence the power holder
• How well do I know the power holder
• When can I get to see the power holder
• What strategies have influenced the power holder in
the past
Analyzing Power Dynamics
• Structural Diversity
– What is the relationship of the two projects
– Growth potential of each, profits long and short-term
organizational benefits
– Do they depend on each other?
• Interdependence
– Breeds dependence and creates a power
differential
Power and Dependence
Person B’s
counterpower
over Person A
Person
B
Person
A
Person A’s
power over
Person B
Person
B’s Goals
Power - Legitimate
• Formal – organizationally assigned
– Part of the managerial hierarchy
• Informal – Expert power
– Superior expertise in the ability to perform a
particular job
Model of Power in Organizations
Sources
Of Power
Legitimate
Reward
Coercive
Expert
Referent
Power
over Others
Contingencies
Of Power
The Limits of Legitimate Power
The Caine Mutiny illustrates the limits of
legitimate power in organizations. Captain Queeg
(Humphrey Bogart,) asked his crew to do more
than they were willing to follow, so they staged a
mutiny.
Reuters Archive Photos
Increasing Nonsubstitutability
Differentiation
Controlling
Tasks
Increasing
Nonsubstitutability
Controlling
labor
Controlling
Knowledge
Contingencies of Power
Sources
Of Power
Power
over others
Contingencies
Of Power
Substitutability
Centrality
Discretion
Visibility
Consequences
of
Power
Sources
of Power
Consequences
of Power
Expert
Power
Referent
Power
Legitimate
Power
Commitment
Compliance
Reward
Power
Coercive
Power
Resistance
Sexual Harassment and Power
• Harasser stereotypes the victim as
subservient and powerless
• Harasser threatens job security or
safety through coercive or legitimate
power
• Hostile work environment
harassment continues when the
victim lacks power to stop the
behavior
Office Romance and Power
• Co-workers believe that employees in
relationships abuse their power to favor
each other.
• Higher risk of sexual harassment when
relationship breaks off.
Organizational Politics
• Attempts to influence others using
discretionary behaviors to promote personal
objectives
– Discretionary behaviors -- neither explicitly
prescribed nor prohibited
• Politics may be good or bad for the
organization
Political Behavior in
Organizations
Organizational Politics - the use of power
and influence in organizations
Political Behavior - actions not officially
sanctioned by an organization that are taken
to influence others in order to meet one’s
personal goals
Types of Organizational Politics
Managing
impressions
Creating
obligations
Attacking and
blaming
Types of
Organizational
Politics
Cultivating
networks
Controlling
information
Forming
coalitions
Conditions for Organizational
Politics
Personal
Characteristics
Scarce
Resources
Conditions
Supporting
Organizational
Politics
Tolerance of
Politics
Complex and
Ambiguous
Decisions
Controlling Political Behavior
Provide
Sufficient
Resources
Remove
Political Norms
Introduce
Clear Rules
Hire
Low-Politics
Employees
Free Flowing
Information
Increase
Opportunities
for Dialogue
Manage Change
Effectively
Peer Pressure
Against Politics
Persuasive Communication
Communicator
Characteristics
• Expert
• Credibility
• Attractive
Communication Medium
Message
Content
• Present all sides
• Few arguments
• Emotional appeals
• Inoculation effect
Audience
Characteristics
• Self-esteem
• Inoculated
Effective Political Characteristics
What characteristics do
effective political actors
possess?
Influence Tactics
Consultation
Inspirational appeals
Rational persuasion
Ingratiation
Coalition
Exchange tactics
Upward appeals
Pressure
Upward Influence:
the boss
Lateral
Influence:
a coworker
Downward Influence:
an employee
Managing Political Behavior
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Maintain open communication
Clarify performance expectations
Use participative management
Encourage cooperation among work groups
Manage scarce resources well
Provide a supportive organizational climate
Managing Up: The Boss
Understand Your Boss
and Her Context
 Her goals and
objectives
 The pressures on her
 Her strengths,
weaknesses, blind spots
 Her preferred work
style
Assess Yourself
and Your Needs
 Your own strengths and
weaknesses
 Your personal style
 Your predisposition
toward dependence on
authority figures
Managing Up: The Boss
Develop and Maintain a Relationship
that
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Fits both your needs and styles
Is characterized by mutual expectations
Keeps your boss informed
Is based on dependability and honesty
Selectively uses your boss’s time and
resources
SOURCE: Information on slides 21-22 adapted and reprinted by permission of Harvard Business Review. From J. J. Gabarro and J. P.
Kotter, “Managing Your Boss,” Harvard Business Review (January-February 1980): 92-100. Copyright© 1980 by the Harvard Business
School Publishing Corporation; all rights reserved.
Sharing Power: Empowerment
Empowerment:
sharing power in such a
way that individuals learn
to believe in their ability
to do the job!
Empowerment’s Dimensions
Meaning - fit between
the work role and the
employee’s values
and beliefs
Competence - belief
that one has the
ability to do the job
well
E2s
Self-determination having control over
the way one does
one’s work
Impact - belief that
one’s job makes a
difference within the
organization
Guidelines for Empowering
• Express confidence in employees
• Set high performance expectations
• Create opportunities for participative
decision making
• Remove bureaucratic constraints that
stifle autonomy
• Set inspirational and meaningful goals
Using Power Effectively
• Use power in ethical ways
• Understand and use all of the various types
of power and influence
• Seek out jobs that allow you to develop your
power skills
• Use power tempered by maturity and selfcontrol
• Accept that influencing people is an
important part of the management job
Understand and use all of the various
types of power and influence
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Always say less than necessary
Guard your reputation with your life
Court attention at all cost
Make other people come to you
Win through actions, not arguments
Understand and use all of the various
types of power and influence
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Avoid the unhappy and unlucky people
Learn to keep people dependent on you
Do not isolate yourself
Know who you are dealing with
Play dumb
Understand and use all of the various
types of power and influence
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Keep your hands clean
Enter action with boldness
Act well to be treated well
Ignore the things you cannot have
Do not try to directly replace anyone
– You may be compared to that great person
Understand and use all of the various
types of power and influence
• Preach the need for change
• Never appear too perfect
• Do not go past your goal – until you are
able to formulate new directions
Formula for Success
• If A equals success, then the formula is
A = X + Y + Z.
X is work.
Y is play.
Z is keep your mouth shut.
-- Albert Einstein