According to Osuoha (2010), the problem with organizational power structures is how to accomplish goals with the power and influence needed.

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3 Power, politics, and conflict are an integral part of organizational behavior. It is important to examine corporate power structures, authority, and the basic forms of power used to influence others to achieve organizational outcomes. Legitimate power is the formal authority that comes from the position one holds in the organization that gives them the ability to give orders to subordinates. Reward power deals with the allocation of giving rewards, incentives, raises, and promotions to influence others. Coercive power gives the leader authority to punish and enforce disciplinary actions. Expert power is knowledge and valuable information that others respect, and people draw from their leader s expertise. Leaders with these powers can influence others and get things done, despite challenges and resistance. Referent power involves personal characteristics and charismatic actions that people admire. 3

4 According to Osuoha (2010), the problem with organizational power structures is how to accomplish goals with the power and influence needed. Although the simplicity of bureaucracy worked before, top down approaches block responsiveness, innovation, and empowerment. More productive behavior sees more matrix structures, cross functional work teams, and virtual teams. Kotter (1996) suggests several guiding elements as the first step in putting together a team to direct change to include questions such as, is there enough position power or main line managers on board, is there enough experience or expertise, does the team have credibility, and does the group have enough proven leaders? 4

5 Osuoha (2010) states that today s leaders must find a way to leverage both politics and power to face the challenges faced by strategic leaders regarding leadership, power, and influence. Understanding influence systems and organizational power are imperative to understanding efficient and effective management. Organizations operating in global markets where high uncertainty exists, with high complexities of change, and many political risk factors, need powerful leaders that tactfully and ethically use political strategies to accomplish goals. Relationships with people are strategic and involve a component of power. Even with complex reporting structures and increased globalization, by understanding personalities and social roles, respecting the values and ideas of others, and using good communication, people can work across cultures and markets as productive coworkers. 5

6 Leadership requires power, energy, endurance, sensitivity, flexibility, and the ability to confront issues. Kotter (1996) wrote that motivation and inspiration provide the energy necessary to achieve grand visions, not by forcing people in the right direction as control mechanisms, but by satisfying their most basic human needs of achievement, a sense of belonging, recognition, self esteem, a feeling of control over one s life, and the ability to live up to one s ideals. Intrinsic and extrinsic rewards cause satisfaction with one s performance, which results in self motivated ability to influence autonomy and respectability. Leaders are different in regards to leadership styles and the power tactics they use; however, power is a necessary force to align powerful coalitions, political support, and the valuable resources necessary to get things done in any organization. 6

7 Some of the most common types of organizational conflicts we see consist of personality disputes, work style differences, interpersonal relationships, cultural differences, unclear responsibilities, values, conflicts of interest, and not enough resources. McAlpine s (2000) book, entitled The New Machiavelli: The Art of Politics in Business, gives good advice on how to manage conflict. McAlpine (2000) warns us to stay aware of the motives of others and advises us to know the motivations, intentions, drive, and purpose of individuals; this advice is crucial to solving a conflict. McAlpine (2000) believes that to prevent conflict, it is better to practice fairness with clear boundaries in all situations. Mistrust and unfairness are common in today s organizations because most people have their own agendas and motivations for working. In many organizations, some people are out to win at all costs. Backstabbing, gossip, favoritism, and pulling strings are all a part of what we call office politics. This behavior breeds mistrust and blocks productivity. McAlpine (2000) highlighted promotion from within and fairness can prevent conflict, encourage others, and make adjustments easier for employees. Conflicts will arise because of unclear distribution of tasks and when promotions are given too soon because employee motivation comes from self improvement and the ability to improve their positions. Aligning employees to a position as well as the company's culture is important. Hiring the wrong people for different positions will cause immediate conflict for employees and the company (McAlpine, 2000). 7

8 In teamwork, we know that negative conflict diminishes productivity, and positive conflict can lead to cohesiveness, creativity, and group decision making. Sikes, Gulbro, and Shonesy (2010) discuss the causes, consequences, and resolutions of conflict in work teams. In addition to power, values, and social factors, the authors attribute conflict to barriers in communications and cultural differences. Different nationalities, ethnic groups, and other external factors within a work team may also contribute to conflict. 8

9 Regardless of the cause of conflict, many authors outline steps to follow toward conflict resolution. For example, Dana s (2001) recommendations are that we use preventive mediation to handle conflict by conducting ourselves in a way that prevents conflict in the first place. Preventive mediation steps include 1) not walking away, 2) do not use a power play, 3) take risks, and 4) avoid exploiting others risks. Dana (2001) believes we should use preventive thinking tools such as using feelings as data, owning our own experiences, and framing. Framing causes us to remain in control of our behavior and emotions even when we are angry or emotional. Dana (2001) calls for conflict resolution such as assessment, planning, and establishing core competencies in using mediation tools. Organizations should modify the structure, culture, and reassess their forward progress in becoming a mediating organization. Denial, competitiveness, and a lack of openness for dealing with conflict are cultural obstacles that an organization should remove to develop strategies for dealing with conflict (Dana, 2001). 9

10 Capazzoli (1995) outlines steps to resolving a conflict. Capozzoli s (1995) steps for conflict resolution are to 1) explore the reason for the conflict and do not take sides, 2) each party should come up with alternate solutions, 3) people involved should agree on the resolution, 4) implement the resolution within a specific time frame, 5) evaluate the resolution, and 6) continue to practice the resolution process. 10

11 The next few slides consist of self check questions for you to test your knowledge regarding the content covered in this unit. The correct answer will be indicated on the next slide. True or False: Expert power is knowledge and valuable information that others respect, and people draw from their leader s expertise. 11

12 True! Leaders with these powers can influence others and get things done despite challenges and resistance. 12

13 True or False: Leaders are all the same in regards to leadership styles and the power tactics they use 13

14 The answer is False! Leaders are different in regards to leadership styles and the power tactics they use. However, power is a necessary force to align powerful coalitions, political support, and the valuable resources necessary to get things done in any organization. 14

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