Topic 7 Power, Politics and Leadership

Introduction
This week’s topic provides you with insights into power and politics. Research shows that
power and leadership behaviour are related. The interaction between leader power, leader
traits and the situation, often determine different types of outcomes. This topic covers the
nature of power, how power is acquired and used, how others are empowered in this process
and the use and control of organisational politics. The application and effectiveness of
influencing tactics is also examined.

Learning Objectives
 Recognize the various types of power.
 Identify tactics used for becoming an empowering leader.
 Know how to use delegation to support empowerment.
 Pinpoint factors contributing to organisational politics.
 Describe both ethical and unethical political behaviors.
 Explain how a leader can control dysfunctional politics.

Sources and Types of Power

To function effectively, leaders must use power effectively, including applying political
tactics to acquire and retain power. A leader needs to have power in order to influence others
in many areas, including decision-making and the use of resources. Power and the use of it is
a multidimensional, complex process bounded by context, personality and expertise. To
exercise influence a leader must have power, the potential or ability to influence decisions
and control resources. The authority of position does not necessarily bestow power.

As a prelude to understanding the mechanics of acquiring power, one needs to be conversant

with the types of power that exist, as well as their sources and origins. What follows is a
discussion on the seven different types of power.

Position Power
A standard method of classifying power is based on whether the power stems from the
organization or the individual.
1. Legitimate Power. Power granted by the organization is referred to as legitimate power.
This power increases as one moves up the organization ladder.
2. Reward Power. The authority to give employees rewards for compliance is referred to as
reward power.
3. Coercive Power. The power to punish for noncompliance is referred to as coercive
power. It is based on fear.
4. Information Power. Having formal control over information that people need to do their
work is referred to as information power.

Personal Power
Three sources of power stem from the characteristics or behaviours of the power actor: expert
power, referent power, and prestige power. All are classified as personal power because they
are derived from the person rather than the organisation. Prestige power is the power
stemming from one’s status and reputation.
Power Stemming from Ownership
The strength of ownership power depends on how closely the owner is linked to shareholders
and board members. A leader’s ownership power is also associated with how much money he
or she has invested in the firm. The CEOs of high-technology firms are typically company
founders. The New Golden Rule applies: The person who holds the gold, rules.

Power Stemming from Dependencies

According to the dependence perspective, a person accrues power by others being
dependent on him or her for things they value. Dependence can be positional or personal.
Richard M. Emerson noted that power resides implicitly in the other’s dependence.
According to the resource dependence perspective, the organization requires a continuing
flow of human resources, money, customers and clients, technological inputs and materials if
it is to continue to function. Organizational sub-units, or individuals who can provide these
key resources, accrue power from this ability. Losing power to control resources leads to a
decline in power.

Power Derived from Capitalizing on Opportunity

Power can be derived from being in the right place at the right time and taking appropriate
action. You also need to have the right resources to capitalize on the opportunity. Go where
the action is in order to capitalize on opportunity power.

Power Stemming from Managing Critical Problems

The strategic contingency theory of power suggests that those units best able to cope with
the firm’s critical problems and uncertainties acquire relatively large amounts of power. Also,
a sub-unit acquires power by virtue of its centrality - how much its activities are linked into
the system of organizational activities.

Power Stemming from Being Close to Power

The closer a person is to power, the greater the power he or she exerts. Likewise, the higher a
unit reports in a firm’s hierarchy, the more power it possesses. Acquiring power alone does
not make for great leadership. Creating and implementing a useful vision is also required.

Tactics for Becoming an Empowering Leader

In a competitive environment increasingly dependent on knowledge, the most successful
organisations will be those that effectively use the talents of all employees. As team members
receive more power, they can accomplish more. If the manager shares credit for their
accomplishments, the manager becomes more powerful. To empower others is to be
perceived as an influential person. Thus, it is paradoxically true that power and influence
increase when the leader shares power with others.

What is the nature of empowerment?

Empowerment is the passing of decision-making authority and responsibility (of any form of
participative management) from leaders/managers to group members. A leader’s power and
influence increases when shared with others, and group members with more power tend to
accomplish more.

Empowerment incorporates
Meaning - Value of a work goal, evaluated in relation to a person’s ideals or standards
Competence- Individual’s belief in his/her capability to meet performance requirements
Self-Determination - Individual’s sense of having a choice in imitating and regulating
actions and
Impact - Degree to which the worker can influence strategic, administrative or operating
outcomes on the job.

Tactics for Becoming an Empowering Leader

The practices that foster empowerment supplement standard approaches to participative
management such as conferring with group members before reaching a decision. Specific
empowering practices are:
1. Foster Initiative and Responsibility. Encourage team members to take the initiative and
give them broader responsibility.
2. Link Work Activities to the Goals of the Organisation. Empowerment works better when
the empowered activities are aligned with the strategic goals of the organisation.
3. Provide Ample Information. Give employees ample information about everything that
affects their work. This is the basis of open-book management.
4. Allow Group Members to Choose Methods. Explain to the individual or group what needs
to be done and let the people involved choose the method. Also explain why the task
needs to be done.
5. Encourage Self-Leadership. Encourage team members to practice self-leadership because
it is at the heart of empowerment. The basic idea of self-leadership is that all
organizational members are capable of leading themselves - at least to some extent. When
employees lead themselves, they feel empowered.
6. Establish Limits to Empowerment. To prevent dysfunction, workers need a clear
perception of the boundaries to empowerment.
7. Continue to Lead. Although the leader empowers group members, the leader should still
provide guidance, emotional support and recognition.
8. Take Into Account Cultural Differences. Cross-cultural factors such as cultural values
influence an individual’s acceptance or reluctance to be empowered.

Effective Delegation and Empowerment

A major contributor to empowerment is delegation, the assignment to another person of
formal authority and responsibility for accomplishing a specific task. Delegation is narrower
than empowerment because it relates to a specific task. Delegation can be motivational
because it offers group members the opportunity to develop their skills and demonstrate their
competence. Delegation is a major contributor to empowerment.
Without delegation, effective leadership and management cannot take place.

To lead is to inspire and persuade others to accomplish tasks, not to accomplish everything by
working alone.

Effective delegation is achieved through the following guidelines:

 Assign duties to the right people
 Delegate the whole task
 Give as much instruction as is needed
 Allow the group members to choose the method
 Retain some important task for yourself
 Obtain feedback on the delegated task
 Delegate both pleasant and unpleasant tasks to group members
 Step back from the details
  Evaluate and reward performance

Factors that Contribute to Organisational Politics

Organizational politics refers to informal approaches to gaining power through means other
than merit or luck. Politics are played to achieve power. The biggest political mistake made is
to assume that organisational politics do not exist. Leaders need to be fully aware of the
potential benefits and dangers so that the outcome of political behaviours can be positive for
the organisation.

Views of organizational politics are becoming increasingly positive, such as “Political skill is
an interpersonal style that combines social awareness with the ability to communicate well.”
However, many people continue to view organizational politics as being negative.

A number of individual and organisational factors that contribute to political behaviour are as
follows:
Pyramid-Shaped Organization Structure fosters a power chase because a pyramid concen-
trates power at the top and leads to competition for limited resources.
Subjective Standards of Performance fosters political behaviour. People often resort to
organizational politics because they do not believe that the organization has an objective and
fair way of judging their performance and promotability.
Environmental Uncertainty and Turbulence fosters politics because when people operate
in an unstable and unpredictable environment, they tend to behave politically. It is difficult to
specify what people should be doing in an uncertain situation.
Emotional insecurity can lead to political behaviour as people attempt to ingratiate
themselves with superiors because they lack confidence in their talent and skills.
Machiavellian tendencies is when you manipulate others for personal gain.
Encouraging admiration from subordinates often takes place because the manager sends
out subtle signals that they want praise, such as smiling after receiving a compliment. Also,
admirers are more likely to receive good assignments and high performance standards.

Political Tactics & Strategies

To make effective use of organisational politics, leaders must be aware of specific political
tactics and strategies. Here is a representative group of political tactics and strategies
categorized as ethical versus unethical.

Ethical Political Tactics and Strategies

Ethical political methods are placed into three related groups: those aimed directly at gaining
power, those aimed at building relationships with superiors and co-workers and those aimed
at avoiding political blunders. All of these tactics help the leader gain or retain power, and
they help the leader succeed in and manage a stressful work environment.
1. Strategies and Tactics Aimed at Gaining Power. The following eleven techniques
help a person gain power directly: (a) develop power contacts, (b) have a compelling vision,
(c) control vital information, (d) control lines of communication, (e) do what the political
environment demands, (f) bring in outside experts, (g) make a quick showing—a quick
display of dramatic results can lead to acceptance of future proposals, (h) remember that
everyone expects to be paid back, (i) be politically correct, (j) be the first to accept
reasonable changes, and (k) develop positive psychological capital.
2. Strategies and Tactics Aimed at Building Relationships. Much of organizational
politics involves building positive relationships with network members who can be helpful
now or later. Several representative strategies and tactics follow: (a) display loyalty; (b)
manage your impression; (c) ask satisfied customers to contact your boss; (d) be courteous,
pleasant, and positive; (e) ask advice—show your trust in the other person’s judgment; (f)
send thank-you notes to large numbers of people; and (g) flatter
others sensibly.

3. Strategies Aimed at Avoiding Political Blunders. A strategy for retaining power is to

refrain from making power-eroding blunders. Some of these key blunders are (a) criticizing
the boss in a public forum, (b) bypassing the boss, (c) declining an offer from top
management, (d) putting your foot in your mouth, (e) not conforming to the company dress
code, and (f) writing embarrassing or incriminating e-mail messages.

Unethical Political Tactics and Strategies

Any political tactic might be considered unethical if it is carried to extremes or is aimed at
gaining power through devious methods
These approaches, however, are unequivocally unethical: (a) back stabbing, (b) embrace or
demolish (take no prisoners), (c) set a person up for failure, (d) divide and rule (have
subordinates fight among themselves, therefore giving you the balance of power), (e) playing
territorial games, (f) creating then resolving a false catastrophe, and (g) abusing power relates
to behaviour outside formal responsibilities.

Exercising Control Over Dysfunctional Politics

Carried to excess, organisational politics can hurt an organisation and its members. A study
showed that the presence of political behaviour can lead to lowered commitment and a
stronger turnover intention. Also, people who dislike politics will suffer from lowered
morale.

A comprehensive strategy to control politics is for leaders to be aware of its causes and
techniques. Open communication can also help minimize politicking. Avoiding favoritism
and cronyism is a major way of reducing politics. Setting good examples at the top may
reduce the frequency and intensity of politics. Goal congruence between the individual and
the organization helps. Politics can sometimes be constrained by threatening to discuss
questionable information in a public forum. Hiring people with integrity helps reduce
dysfunctional politics.

Summary
As organisational power is derived from many sources, leaders and managers must be
proficient in understanding these sources of power if they wish to acquire and retain power.
Along with power, a successful leader requires an understanding of what empowerment is
and how to effectively delegate.

Organizational power may be derived from position power, personal power, ownership,
dependencies, capitalizing on opportunity, managing critical problems, and being close to
power. Fully-fledged empowerment includes the dimensions of meaning, self-determination,
competence, impact, and internal commitment. Delegation is an important part of
empowerment.
To acquire and retain power, a leader must skillfully use organizational politics.
Organisational politics and game playing are an intrinsic part of business. To ignore
organisational politics is naïve and ill-advised. Leaders may choose not to play political
games but it is an essential survival tactic to at least recognise that game playing is occurring.
Political tactics and strategies may be either ethical or unethical. Carried to the extreme,
organizational politics can hurt an organization and its members.