Chapter 12

Leadership Power and Influence

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Transactional versus Transformational
Leadership

Transactional leadership
a transaction or exchange
process between leaders
and followers

Transformational Leadership
leadership characterized by the
ability to bring about significant
change in followers and the
organization
See page 357 for differences
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Ex. 4.5 Distinguishing Characteristics of Charismatic and Noncharismatic
Leaders

Noncharismatic Charismatic Leaders

Leaders
Likableness Shared perspective makes Shared perspective and
leader likable idealized vision make
leader likable and an
honorable hero worthy of
identification and imitation

Trustworthiness Disinterested advocacy in Passionate advocacy by

persuasion attempts incurring great personal
risk and cost

Relation to status quo Tries to maintain status Creates atmosphere of

quo change

Future goals Limited goals not too Idealized vision that is

discrepant from status quo highly discrepant from
status quo
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 Noncharismatic Charismatic Leaders
Leaders
Articulation Weak articulation of goals Strong and inspirational
and motivation to lead articulation of vision and
motivation to lead

Competence Uses available means to Uses conventional means

achieve goals within to transcend the existing
framework of the existing order
order
Behavior Conventional, conform to Unconventional, counter-
norms normative

Influence Primarily authority of Transcends position;

position and rewards personal power based on
expertise and respect and
admiration for the leader

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Dark side of charisma

 Personalized:
 self-aggrandizing, nonegalitarian, exploitative.
 Based on caring about self.
 Detrimental impact on long-term organizational purpose
 Socialized:
 empowering, egalitarian, supportive.
 Based on valuing others.
 Related to successful organizational purpose

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Power and Influence

Power
 The ability of one person or department in an organization
to influence other people to bring about desired outcomes
Influence
 The effect a person’s actions have on the attitudes, values,
beliefs, or actions of others

Authority
 The right to influence another person

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Ex. 12.2 Five Types of Leader Power

•Legitimate •Expert
•Reward •Referent
•Coercive

Position Power Personal Power

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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. Should be
reserved for disciplinary situations.
Legitimate Power - agent and target agree that agent
has influential rights, based on position and mutual
agreement
Referent Power - based on interpersonal attraction.
Example would be a mentor. Can have a dark side.
Expert Power - agent has knowledge target needs

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Ex. 12.3 Responses to the Use of Power

Position Power Personal Power

Compliance Resistance Commitment

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Power: Compliance or Effectiveness

 Compliance: Focused on doing things right

(management)
 Reward, Coercive, Legitimate power
 Least effective but most often used my managers
 Followers do just enough work as is necessary to
satisfy the leader
 Effectiveness: focused on doing the right
thing (leadership)
 Referent, expert power
 Develop through interpersonal relationships with
employees
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 How to spot an asshole (Sutton, 2007)

1. After talking to the alleged asshole, does

the ‘target” feel oppressed, humiliated, de-
eneergized, or belittled by the person? In
particular, does the target feel worse about
him or herself?
2. Does the alleged asshole aim his or her
venom at people who are less powerful
rather than at those people who are more
powerful? (Kiss up, kick down)
 Ex. 12.4 Characteristics That Affect Dependency and Power in
Organizations

Resources: e.g. jobs, rewards, financial support, expertise, materials, information, time

Leader has Leader has

control over: control over:

Resources seen Resources seen as

as unimportant Importance very important

Widely available Scarce resources

resources
Scarcity

Resources with Non Resources with

acceptable substitutes substitutability no substitutes

Low dependency High dependency

on leader = lower on leader = higher
power power
Ex. 12.5 Strategic Contingencies that
Affect Leader Power in Organizations
Interdepartmental
Dependency

Control over
Information
Increased Power

Organizational
Centrality

Coping with
Uncertainty

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Politics

• Activities to acquire, develop, and use power

and other resources to obtain desired future
outcomes when there is uncertainty or
disagreement about choices
• People who want to increase their power
(influence) make sure their activities are
visible and appreciated by others.

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 Conditions that encourage political activity

 Unclear goals
 Autocratic decision making
 Ambiguous lines of authority
 Scarce resources
 Uncertainty
 Performance appraisal process

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 Ex. 12.6 Seven Principles for Asserting Leader
Influence
1. Use rational persuasion
2. Encourage people to like you (be likeable)
3. Rely on the rule of reciprocity
4. Develop allies
5. Ask for what you want
6. Remember the principle of scarcity: when things are less
available, the become more desirable. Learn to frame
requests and offers to highlight unique benefits and exclusive
information being provided.
7. Extend formal authority with expertise, credibility, and trust.

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 Ex. 12.7 Guidelines for Ethical Action

Is the action Does the Does the Would you

consistent action action meet wish others
with the respect the the to behave in

Ethical Choice
organization’s rights of standards of the same
goals, rather individuals fairness and way if the
than being and groups equity? action
self-motivated affected by affected
purely by self- it? you?
interest?

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Dean’s Disease (extra reading)
 What is the dean’s disease?
 What are the three reasons why the dean’s
disease occurs?
 How do “true leaders” act (p. 168)
 What are the safeguards?
 What are the suggestions for staying on
course?

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