Dr.

Sanjay Saxena
Associate Professor
SMS Varanasi 1

ORGANIZATIONAL BEHAVIOR

Unit 5: POWER, POLITICS, & ORGANIZATIONAL CULTURE

POWER

Power is the intentional influence over the belief, emotions, and behaviors of people. A common
definition of leadership is, the sensitive use of power to achieve group goals. All leaders have
power some more abundantly than others but it is the way power is exercised that determines
whether or not the leader is successful. Some leaders fail to use the power they possess; others
abuse it or use it illegally or unethically; only few learn to use it skillfully. Establishing an authority
line and then protecting the authority is the only way leader expresses power. Examples of social
power are seen everywhere: influence, leadership, persuasion, selling, forcing, and coercing all
these acts are power in action. To have power or to exercise power is not, in itself, either good or
bad. Without influence (power) there could be no cooperation and no society.
Two Faces of Power: McClellands research indicated that while most people give negative
connotation to power, it is by power that things are done in the world. The exercise of power is
behind most human achievements, both good and bad. According to him the negative face of
power is characterized by a primitive need to have dominance over submissive others. The
positive face of power is characterized by a socialized need to initiate, influence, and lead. The
positive face of power is intended to enable others to reach their goals. The negative face of
power seeks domination; the positive face of power seeks more power to everybody.

SOURCES OF POWER

The sources of power can be primarily categorized into two: formal position of the leader and
personality characteristics of the leader.

Formal Position: Generally power attached to position is more potent than the person who
occupies the position. For instance, the position of the president of United States has great power,
no matter who occupies it.
Personality Characteristics of the Leader: Each individual, whether or not in a leadership role,
possesses a certain personality power. At times, people use their personality to influence others.
Leaders with positive attitude, a pleasant voice, a decisive manner, and a strong identity, generally
have the most impact. Charisma is often associated with personality power.

BASES OF POWER

There are individual bases of power, which are factors that give people the capacity to influence
others successfully. Within organizations, the distribution of power is typically unequal. The seven
bases of social power derived from the characteristics individuals possess and the nature of
relationship between individuals with or without power.


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Associate Professor
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Reward Power: Control over the Resources Valued by Followers

Individuals with the capacity to control the rewards the follower will receive are said to have
reward power over the followers. Subordinates often comply with their supervisors wishes in the
hopes of receiving the valuable rewards that the supervisors control. The rewards at the
managers disposal may be tangible, such as raises, promotions, and time off, or intangible, such
as praise and recognition. In either case, access to these resources often forms a source of
individual power in the organizations. It is worth noting here that one can actualize reward power
on followers only when the followers value that reward. To be effective, the presentation of
rewards should be closely tied with the manifestation of desired behavior from the follower. Thus
whereas access to valued resources may enhance a managers power base, the manager, to be
effective, must administer rewards properly. While using reward power base, the manager should
keep in mind that reward power results in positive reinforcement for subordinates. It is also
essential that rewards should be distributed in a fair and equitable way and should be
performance linked.

Coercive Power: Controlling Punishments

Leaders often control the punishments others receive a capacity known as coercive power.
Punishments may include pay cuts, demotions, and suspension without pay, formal reprimands,
and undesirable work assignments. While using the coercive power base, the manager should
keep in mind that this power may have adverse effects on the relationship with subordinate. If
coercive power is used in a hostile or manipulative way, it is likely to cause resistance. When mild
punishment that fits in with the persons mistake is offered, compliant behavior can be expected
from the subordinate. While offering severe punishments in case of severe mistakes, care should
be given

Legitimate power: Power Vested in Organizational Authority

This refers to managers ability to influence subordinates behaviors because of the managers
formal position in the organization. Not only managers all employees have some legitimate power
such as their right to ask others for information that will help them perform their jobs.
Legitimate power is an important organizational concept. Typically, a manager is empowered to
make decisions within a specific area of responsibility, such as customer service, quality control,
marketing or accounting. The farther that managers get from their specific areas of responsibility,
the weaker their legitimate power becomes. Employees have a zone of indifference with respect
to the exercise of managerial power. Within the zone of indifference, employee will accept certain
direction without questioning the managers power and the manager may have considerable
legitimate power to influence subordinates behaviors. Outside the zone, however, legitimate
power disappears rapidly.

Expert Power: Power Based on Skills and Knowledge
Legitimate, reward, or coercive power originates from the position a person holds in an
organization. In contrast, expert power stems from the person. It is an individuals ability to
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Associate Professor
SMS Varanasi 3

influence others behaviors because of recognized competencies, talents or specialized knowledge.
A person may possess expertise on technical, administrative, or personnel matters. The more
difficult it is to replace the expert, the greater degree of expert power he or she possesses.

Referent Power: Power Based on Charisma

Referent power is an individuals ability to influence others behaviors as a result of being
respected, admired or liked. Like expert power, referent power comes from within the person.
Referent power is associated with charisma of the person. The charismatic persons are having
great ability to inspire people. They possess extraordinary leadership qualities and motivational
skills.

Information Power: Control Based on Access to Information

This is based on the perception of one member in the relationship that another member possesses
or has access to information that is valuable to others. This power, generally, is vested in the
organizational position. An individuals position in the organization and the kind of task assigned to
him will determine how much access he has to inform and how it could be utilized as a power
base.

Connection Power: Control Derived from Networking

This power is based on the perception of one member in the relationship that another member is
connected to influential or important people. If the person has access to influential members of
the organization, the person is likely to enjoy connection power.

POWER TACTICS

People use different tactics to gain power. Power tactics are used by individuals on their own,
within groups (intra-group), and between groups (intergroup) in order to influence people and
events. Influence can be used positively or negatively. When used positively, we can expect
beneficial outcomes.

Individual and Intra-group Tactics:

1. Assertiveness: This entails setting a deadline for others to comply with a request, ordering
others to do what they are expected to do, emphasizing the importance of complying with the
request, and repeatedly reminding others of their obligations to perform.
2. Friendliness or ingratiation: This tends to make a person favorably disposed to comply with a
request. It may be flattery by lavishing praise on the person prior to the request, exaggerating
the importance of complying with the request, acting in friendly and humble way when seeking
the persons cooperation, or waiting till the person is in a receptive mood before striking.
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Associate Professor
SMS Varanasi 4

3. Rationality: Rationality amounts to using facts and information in a logical way so that the
request for compliance looks logical and well prepared. The originator of the request is
projected as a competent person.
4. Sanctions: this amounts to the use of organizational rewards and punishments for action.
Rewards may include salary raise or promotion. Subjective rating the performance appraisal or
withholding promotion may be punishments.
5. Higher authority: This consists of efforts to secure support from people further up the
organizational hierarchy, and may be exemplified by securing the informal support of superiors
and others in higher positions.
6. Bargaining: Bargaining includes give and take through a process of negotiation. Additionally,
the person seeking the favor may remind the other person of the benefits the former has
bestowed on him or her in the past in order to get the work done.
7. Coalition: This involves getting help from other parties in the organization, by building up
alliances with subordinates and co-workers. There is strength in numbers, which is manifested
when employees join unions.

Inter-group Power Tactics:

1. Uncertainty absorption: There are expert groups in the organizations whose services can be
used in times of need. When used, such expert groups absorb uncertainty normally associated
with such matters. Consequently, the expert group gains power over the users of its service.
2. Substitutability: In the example cited above, if the user of the service can find a substitute,
then the power of the specialist can be reduced or eliminated.
3. Integrative importance: Integrative importance arises when a groups services are needed to a
significant extent by other groups within the organization in order that the latter can function
effectively. Such a provider wields a lot of intergroup power. The extent of power is less if the
group providing the services is needed only to a limited extent.

ORGANIZATIONAL POLITICS

Organizational Politics involves intentional acts of influence to enhance or protect the self
interests of individuals or groups (French and Bell 1995). Allen (1977) defines organizational
politics as the management of influence to obtain ends not sanctioned by the organization or to
obtain ends through non-sanctioned influence means. French and Bell treat politics as illegitimate
power. Analysis of these definitions suggests that the concept of power and politics are very
similar. Both relate to getting ones way. Both relate to pursuit of self-interest and overcoming the
resistance of others. Organizational politics is power in action in organizations; it is engaging in
activities to get ones way in an organizational setting.
Like power, the politics has two faces. Pursuit of unsanctioned organizational goals or the use of
unsanctioned organizational means might be examples of the negative face of politics. Illegitimate
usage of authority, information, and resources might also be examples of negative face of politics.
However, a positive face of politics is shown whenever hard decisions must be made, and most
organizational members feel good about what was decided and how it was decided.
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Associate Professor
SMS Varanasi 5

Organizational politics tend to be associated with the decision making, resource allocation, and
conflict resolution processes in the organization.

ORGANIZATIONAL CULTURE

Organizational culture is defined as a set of basic assumptions, values and artifacts that a given
group has discovered and developed in learning to cope with its problems of external adaptation
and internal integration. All the members of the organization come to adapt shared values, beliefs,
norms, attitudes, language, and ways of doing things which are unique to the organization. This is
termed as the culture of the organization. As Hagberg and Haifetz (2000) concede culture drives
the organization and its actions. It is somewhat like operating system of the organization. It guides
how employees think, act, and feel. Culture is reflected in how things are done (Flanagan 1995)
and how problems are solved in an organization. Finally we can say that Organizational Culture is
a common set of accepted behavior, values, attitudes, dress, business practices, activities and
philosophy in a given organization.

ELEMENTS OF CULTURE

Edger H. Schein, a social psychologist, developed what is called an influential theory of
organization culture. In Scheins theory, culture exists on three levels: on the surface we find
artifacts, underneath artifacts lie values and behavioral norms, and at the deepest level lay a core
belief and assumptions.



Figure 5.1

















Artifacts
Beliefs and Values
Basic Assumptions
Visible but often
undecipherable
Greater level of
awareness
Taken for granted
and invisible
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Associate Professor
SMS Varanasi 6

Basic Assumptions

These are the basic percepts that characterize an organization in terms of what it is, what it stands
for and what it is all about. It is what drives the organization, and determines how it stands for,
and what it is all about. It is what drives the organization, and determines how its members
perceive, think, feel and behave. It underlies the various aspects of organizational activity and
represents the core ideology. Some examples of basic assumptions underlying organizational
culture are:
Market oriented communication system (AT &T)
Risk taking and innovation (Boeing, Hewlett Packard)
Employee participation, open communication, and security (Sony, Toyota)
Entrepreneurism, self discipline, and control (Asea Brown Boveri)

Values

These are the social principles, or standard held by members of an organization, individually and
collectively. All the organizations have a set of basic beliefs and values, which are shared by most
of its members. Essentially these belief and values provide justification for behaviors in the
organization. Values constitute the basis for making judgment about what is right and what is
wrong, which is why they also referred to as a moral or ethical code. Because values are used as
standards for making moral judgments, they are often associated with strong emotions.

According to Udai Pareek (2002), there are eight values that govern the culture of an organization.
These eight values together are responsible for making the culture of an organization strong or
weak. These are as follows:
1. Openness: This refers to free sharing of thoughts, ideas, and feelings with each other in an
organization. In situations of disagreements they are able to come out openly ad share their
concerns with each other.
2. Confrontation: With openness comes the ability to face the situation as it comes to us rather
than move away from it.
3. Trust: The surety with which people can share their confidential information with each other
without the fear.
4. Authenticity: This refers to the equivalence that members of an organization have between
their words and deeds. If people do what they say and feel, it leads to high level of openness
and trust in organizations.
5. Proactivity: Proactive organizations are taking initiatives not due to the external pressure but
due to their own judgment, belief, and strengths.
6. Autonomy: It involves giving enough space to other individuals in the organization as you
would seek for yourself. A person with knowledge and competence should be given freedom
to take the decision for the department or the organization.
7. Collaboration: People should learn to work together to develop a sense of team spirit.
8. Experimentation: Organizations can sustain themselves only if they are able to experiment
with the available resources and identify and develop better approaches to deal with the
problems. For the purpose the organization should provide freedom to fail to its members.
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Associate Professor
SMS Varanasi 7


Visible Artifacts

The visible manifestation of culture as seen in the physical and social environment of the
organization such as
1. Its structure, systems, and subsystems, symbols, and plaques.
2. Public documents it releases, media reports, and stories about it.
3. Its rituals, norms, rules, and procedures.
4. The observable behavior of its members (the way they talk, the jargon they use, the way they
dress).

TYPES OF ORGANIZATIONAL CULTURE

Low Performance Culture
It is important to know about low performance culture in order to appreciate high performance
organizational culture. Following are the attributes of low performing culture:
Managers tend to be arrogant, behaving as if they have all the answers and rarely looking
outside the firm for new and better business ideas.
Managers tend to value themselves, and their own immediate work groups.
These organizations tend to be highly bureaucratic, focusing excessively on procedures,
stability, and order.
Management believes that money is the chief motivator to staff.
Employees are viewed as expense to the company.
Organizational structures are rigid and highly hierarchical.
People are not committed to organizational mission and the core philosophy of the
organization.
Organizational members carry different and contrast set of values and beliefs.
Internal competition between and even within the departments is given preference in place of
cooperation.
People have very poor relationships with each other and stab each other at the back.
Compliance is given preference over commitment.
Rigid control systems are thought to be the best ways of enhancing employees performance.
Managers are reluctant to change and believe in status quo.

High Performance Organizational Culture
In the high performance organizational culture, there exists a positive relationship between among
the people of the organization. This relationship goes much beyond working relationships reaching
into the heart of people and generates mutual commitment for each other. Because of this intense
commitment people start caring for each other, become compassionate and are willing to take
each others responsibility. Also they feel themselves accountable for each others success and
failures. All the employees are strongly aligned and involve emotionally with organizations vision,
mission, goals, and values. The organizational performance is positive and growing with required
pace.
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Associate Professor
SMS Varanasi 8

There is effective participation of employees in decision making process and goals are determined
mutually. Employees are asked to decide the organizational focus by developing the organizational
mission. Effective measures are mutually developed to achieve the goals. Effective two way
communication prevails in the system. There exists democratic and open climate in the
organization, and transparency in all actions is maintained. People are empowered to take
decisions and frame their short term goals. There are self directed teams that monitor, and
continually improve their performance. Everyone can make a contribution and is an expert in
his/her own right. Quality and service are the responsibility of the person doing the job. Supply-
chain integration and customer focused goals prevails across all functions. Ideas are shared freely.
People feel free to disagree without fear of victimization. All are concerned with results and
outputs. People are innovative in how they do their work to achieve agreed goals. The high
performance organizational culture is adaptive in nature where managers pay close attention to all
the stakeholders of the organization and develop partnership with them. Leadership at all levels is
valued; people are encouraged to provide leadership and initiate change whenever needed to
satisfy the legitimate interests of those stakeholders.

Values within the departments in the high performance organizational culture:
Mutual trust.
Mutual respect.
Colleagues who have the guts to say it.
Mutual protection against foreign forces.
Genuine consensus and synergy.
No false behavior that seeks to impress.
Absolute communication and sharing of information.
If you are annoyed with me, tell me first.
No departmental isolation and power positioning.
A collective spirit which protects the values.
Time for one another, regular discussion, and fun.
We are here to serve the world.
Real satisfaction comes from sacrificing the needs and not from satisfying the needs.
We believe in nurturing leadership.
Beyond Empowerment