OB_FINAL_review - Leader as Politician Power Potential...

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Leader as Politician Power :   Potential ability to influence others so they do things they would not do otherwise Bases of Power : Coercive power : dependent on fear Reward power : compliance achieved based on the ability to distribute rewards that others view as valuable; positive benefit Legitimate power : power received as result of position in formal hierarchy of organization; Expert power : Influence based on special skill or expertise Referent Power : Influence based on possession of desirable resources or personal traits. Power as dependency - The greater the dependency, the greater the power “A” has power over “B” to the extent: “A” has control over something “B” values (importance ) “B” cannot obtain it elsewhere (scarcity ) “B” cannot easily find substitutes for it (nonsubstitutability ) Compensation & Prestige of Professions (example of barber vs. medical doctor) Need to Professionalize: Barriers to Entry – learn special skills Business Schools and Professionalization – different schools, different prestige, different $ outcome. Organizational Politics: Definition : using power beyond formal role to gain rewards Reasons - scarce resources – if not, everybody could have what they want - different interests - ambiguous goals and performance outcomes - technical and environmental uncertainty - organizational change Political Techniques - controlling information and communication - controlling agenda and decision making parameters - game playing - impression management - building coalitions Politicking – people within organizations will use whatever influence they can to taint the facts to support their goals and interests
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Leader as Structural Architect Elements of Structure Work specialization – degree to which activities in the organization are subdivided into separate jobs Chain of command – unbroken line of authority that extends from the top of organization to the lowest echelon and clarifies who reports to whom Span of control – the number of subordinates a manager can efficiently direct – 5-7 Centralization – degree to which decision making is concentrated at a single point in the organization Formalization – degree to which jobs within the organization are standardized. Departmentation – the basis by which jobs are grouped together By function – eg. Manager accounting, sales By product – eg. Fuels, chemicals R&D By customer – eg. Retail accounts, wholesale accounts By geography – eg. VP Asia, North America Organization Designs Simple Structure - Authority centralized in owner. Informal--lack of structure. Benefits Inexpensive, Flexible; Costs – Inefficient, Dependent on owner Bureaucracy - Functional departments, Standardized tasks, High formalization and centralization. Benefits
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