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Having power and using power are two different things. For example, imagine a manager who has
the power to reward or punish employees. When the manager makes a request, he or she will
probably be obeyed even though the manager does not actually reward the employee. The fact that
the manager has the ability to give rewards and punishments will be enough for employees to
follow the request. What are the sources of one’s power over others? Researchers identified six
sources of power, which include legitimate, reward, coercive, expert, information, and referent.
French, J. P. R., Jr., & Raven, B. (1960).
POWER BASES
Are the methods that leaders use to influence their co-workers to do things that they might
otherwise not choose to do.
In 1959, social psychologists French and Raven identified five bases of interpersonal power
manifested by leaders in positions of authority.
They subsequently added a sixth power base. Leaders manifest their power using one or
more of these power bases.
Coaches can use this tool to draw a leader’s awareness to how they influence others. This
also opens up alternatives they might have not considered earlier.
6 BASES OF POWER
1. Legitimate Power
This is the leader’s power to get others to comply purely based on their position. In a
hierarchical organization, the executives at the top of the organization chart have
legitimate power to demand compliance from others.
Is power that comes from one’s organizational role or position.
Example: A boss can assign projects, a policeman can arrest a citizen, and a teacher assigns
grades. Others comply with the requests these individuals make because they accept the legitimacy
of the position, whether they like or agree with the request or not. Steve Jobs has enjoyed legitimate
power as the CEO of Apple. He could set deadlines and employees comply even if they think the
deadlines were overly ambitious. Start-up organizations often have founders who use their
legitimate power to influence individuals to work long hours week after week in order to help the
company survive.
2. Reward Power
This is a leader’s ability to yield power by compensating their employees for
compliance.
The ability to grant a reward, such as an increase in pay, a perk, or an attractive job
assignment. Reward power tends to accompany legitimate power and is highest when
the reward is scarce.
Leaders in this case control a desired outcome for their employees
Extra holidays, a bonus or a promotion.
When used flexibly, reward power can prove to be a strong motivator for employees.
However, if used rigidly, employees may be tempted to focus solely on the extrinsic
rewards. They may forget about the intrinsic motivation around their jobs.
Example: Bill Gross, founder of Idealab, who has the power to launch new companies or not. He
created his company with the idea of launching other new companies as soon as they could develop
viable ideas. If members could convince him that their ideas were viable, he gave the company a
maximum of $250,000 in seed money, and gave the management team and employees a 30% stake
in the company and the CEO 10% of the company. That way, everyone had a stake in the company.
The CEO's salary was capped at $75,000 to maintain the sense of equity. When one of the
companies, Citysearch, went public, all employees benefited from the $270 million valuation.
3. Coercive Power
The ability to take something away or punish someone for noncompliance.
Often works through fear, and it forces people to do something that ordinarily they would
not choose to do.
A leader who draws on their employee’s compliance through force is said to have
coercive power. This could be economic, social, emotional, political or physical.
Example: Government dictators who threaten physical harm for noncompliance. Parents may also
use coercion such as grounding their child as punishment for noncompliance.
Steve Jobs has been known to use coercion—yelling at employees and threatening to fire them.
When John Wiley & Sons Inc. published an unauthorized biography of Jobs, Jobs’ response was
to prohibit sales of all books from that publisher in any Apple retail store.
John D. Rockefeller was ruthless when running Standard Oil Company. He not only undercut his
competitors through pricing, but he used his coercive power to get railroads to refuse to transport
his competitor’s products. American presidents have been known to use coercion power. President
Lyndon Baines Johnson once told a White House staffer, “Just you remember this. There’s only
two kinds at the White house. There’s elephants and there’s ants. And I’m the only elephant.”
4.Informational Power
Similar to expert power but differs in its source.
Information power is distinguished by access to specific information.
A leader who has control over critical information that others need, is said to possess
informational power. The offer to share it or the potential threat to withhold that
information gives a leader power.
However, this form of power dissipates immediately once the information is shared with
another.
Example: Knowing price information gives a person information power during negotiations.
Within organizations, a person’s social network can either isolate them from information power
or serve to create it. As we will see later in this chapter, those who are able to span boundaries
and serve to connect different parts of the organizations often have a great deal of information
power. In the TV show Mad Men, which is set in the 1960s, it is clear that the switchboard
operators have a great deal of information power as they place all calls and are able to listen in
on all the phone conversations within the advertising firm.
5. Referent Power
Stems from the personal characteristics of the person such as the degree to which we
like, respect, and want to be like them.
Referent power is often called charisma.
Referent power is a leader’s ability to lead with trust and by example. If the leader is
perceived to be respected, and attractive by his employees, he is considered to have a
high degree of referent power.
The concept of empowerment heavily relies on referent power. Since it takes more time
to develop, it proves most effective for organizations where leaders have a workforce
with medium to low turnover.
Example: the ability to attract others, win their admiration, and hold them spellbound. Steve Jobs’
influence as described in the opening case.
6. Expert Power
Expert power relies on a leader’s specialized knowledge, domain expertise or skill-set.
Interestingly an employee with greater knowledge might have higher expert power
when it comes to a particular task.
Expert power diminishes as a leader starts sharing their knowledge with their
employees. Fearing this, leaders sometimes intentionally choose not to share their
knowledge base with employees.
While this increases the leader’s perceived power, it weakens the organization’s
effectiveness over time.
Example: If no one else in the department knows how to run a certain software program and a
specific employee does, that employee has the expert power in that situation
ORGANIZATIONAL CHANGE
Organizational Change
Workforce Demographics
Organizational change is often a response to changes in the environment. For example,
both the United States Department or Labor and Organization for economic cooperation
and development (OECD) estimate that the age of workplace is on the rise.
Technology
Sometimes change is motivated by rapid development in technology. Sometimes
technology produces such profound developments that companies struggle to adapt.
Globalization
Globalization is another and opportunity for organization, depending on their ability to
adapt to it. Organizations are finding that it is often chapter to produce goods and deliver
services in some countries compared to others.
Market Conditions
Changes in the market conditions may also create changes as companies struggle to adjust.
For example, as of this writing, the airline industry in the United States is undergoing
serious changes.
Organizational Growth
It is natural for once small start- up companies to grow if they are successful. An example
of this growth is the evolution of the Widmer brothers brewing company, which started as
two brothers brewing beer in their garage to become the 11th largest brewery in the United
States.
Poor Performance
Change is more likely to happen if the company is performing poorly and if there is a
perceived threat from the environment. In fact, poorly performing companies often find it
easier to change compared to successful companies.
Resistance to Change
Changing an organization is often essential for a company to remain competitive. Failure
to change may influence the ability of a company to survive.
Four Under the Resistance to Change:
1. ACTIVE RESISTANCE
• is the most negative reaction to a proposed change attempt.
2. PASSIVE RESISTANCE
• involves being disturbed by changes without necessarily voicing these opinions
3. COMPLIANCE
• on the other hand, involves going along with proposed changes with little
enthusiasm.
4. ENTHUSIASTIC SUPPORT
• are defenders of the new way and actually encourage others around them to give
support to the change effort as well.
INDIVIDUAL CHANGE
Individual change management is about supporting and enabling a person through transition.
AKDAR model was developed by Jeff Hiatt in the 1990s after studying the change patterns of
more than 700 organizations. The AKDAR Model is used by thousands of change leaders around
the world. This powerful model is based on the understanding that organizational change can only
happen when individuals change.
The word “AKDAR” is an acronym for the five outcomes an individual need to achieve for a
change to be successful: AWARENESS, DESIRE, KNOWLEDGE, ABILITY and
REINFORCEMENT.
1. AWARENESS
The outcome of this step is that everyone has an awareness and understanding of the need
to change. Each individual needs to be aware of why the change is happening and why the
change is necessary.
2. DESIRE
The outcome of this step is that everyone has the desire to take part in and support the
change. To achieve this outcome, it is important to work with all individuals to achieve
three aims. First, that they feel dissatisfied with the current state of affairs. Second, they
should understand the negative consequences of keeping things the same. Third, people
need to want to participate in the change. To achieve the final aim, it’s important to explain
on an individual basis what’s in it for them. This could mean enhanced job security, a sense
of belonging to a team, career advancement, or even financial incentives
3. KNOWLEDGE
The outcome of this step is the individual knowing how to change.
Knowledge is only useful when stages one and two are complete, and the individual already
has the awareness and desire to change.
4. ABILITY
The outcome of this step is that the individual can demonstrate the desired new skills and
behaviors.
A great aspect of the ADKAR Model is its distinction between theory and practice. Once
the theory of how to change is in place, that is, the knowledge, the individual needs to be
supported to acquire and practice that behavior (the ability).
Ways for management to support new working methods include providing any training
needed and providing access to any resource’s employees need to build their ability.
5. REINFORCEMENT
The final step’s outcome is that the new change and any new behaviors are reinforced
within each individual. To sustain the change, we don’t want individuals reverting to the
old ways of doing things.
Many methods exist to ensure that individuals don’t revert to previous ways of working or
thinking, including:
Taking corrective actions quickly.
Positive reinforcement.
Feedback.
Rewards and recognition.
Celebrations.
The AKDAR Model addresses these challenges by equipping leaders with the right strategies and
tools, and individuals with the right information, motivation, and ability to successfully move
through changes in the organization.
To enable individuals to achieve AKDAR outcome and move through their AKDAR journeys,
change practitioner’s barrier points along the way.
Summary
The ADKAR Model is a change management framework. The steps of the model are Awareness,
Desire, Knowledge, Ability, and Reinforcement. Unlike most other change management models,
ADKAR focuses on the human element of change. It recognizes that individuals must change in
order to make an organizational change successful.
Perception and personality affect how people relate to each other and their work. Managers will
learn how selective attention, stereotypes, and other attitudinal distortions are formed and may
contribute to group dynamics, interpersonal conflict and inequity in the workplace. Understanding
the fundamentals of social identity theory, perception and personality can assist managers in
managing and maximizing diversity, coaching employees and teams, and reducing stress in the
workplace
PERCEPTION IN ORGANIZATION
Learning Objectives
● Define perception, describe the perceptual process, and explain how perception affects
organizational behavior
● Explain what a self-fulfilling prophecy is and its importance to managers.
● Describe the Johari window and how it is used to improve employee interactions.
● Describe attribution theory and how it is used to circumvent perceptual problems in
organizations.
Perception
Each of us has a particular way of perceiving and making sense of the world around us. It
is tempting to assume that human behavior is a response to an objective reality but, as the
comedian Lily Tomlin noted, "Reality is nothing more than a collective hunch." The same
stimuli may be present in our environment, but what we do with that "stimuli" is affected
by individual differences.
The process by which people organize and obtain meaning from the sensory stimuli they
receive from the environment
The process by which we become aware of, and give meaning to, events around us.
Perception helps define "reality."
Objective reality - what truly exists in the physical world to the best abilities of
science to measure it.
Perceived reality - what individuals experience through one or more of the human
senses, and the meaning they ascribe to those experiences.
Behavioral problems arise when an individual's perceived reality does not match objective
reality.
Perception serves as a filter or gatekeeper so that we are not overwhelmed by all the stimuli
that bombard us.
● Contrast - The difference between one stimulus and surrounding stimuli that makes that
stimulus more likely to be selected for perceptual processing.
● Novelty - When the stimulus an individual senses differs from stimuli experienced in the
past.
● Intensity - The forcefulness that enhances the likelihood that a stimulus will be selected for
perceptual processing
● Change - The variety that causes a stimulus to be selected for perceptual processing.
Contrast Effect
● Motive - Increased notice of a stimuli due to an individual's current active motives such as
a deficiency (e.g., hunger) that is associated with the subject (e.g., food) of the stimulus.
● Personality - An individual characteristic that creates an increased likelihood that a
particular stimulus related to the characteristic will be noticed.
● Organization
The process of placing selected perceptual stimuli into a framework for storage."
Stimuli become associated when they:
➔ Are similar in physical resemblance.
➔ Occur in close physical (space) proximity.
➔ Occur in close time proximity.
➔ Are used for figure-ground differentiation.
➔ Are used together to achieve closure-a perception of the whole or to piece
together a message.
Figure-Ground Illustration
Closure
● Closure - The tendency to organize perceptual stimuli so that, together, they form
a complete message. (filling in the gaps)
● Transition
The stage in the perceptual process at which stimuli are interpreted and given
meaning.
Transition errors that distort perceptions (i.e., subjective reality) of objective
reality:
➔ Primacy effect
- The disproportionately high weight given to the first information
obtained about a stimulus.
➔ Recency effect
- The disproportionately high weight given to the last information
obtained about a stimulus.
➔ Stereotyping
- The generalization (application) of a person's prior beliefs about a
class of stimulus objects during encounters with members of that
class of objects.
- Stereotyping is the all too frequent result of rapid, automatic
perception and attribution processes when we are dealing with
people, we consider to be different from us.
- A stereotype is an oversimplified evaluative opinion or judgment
about a group of people applied to an individual.
- Stereotyping occurs when we attribute behavior, attitudes, motives,
and/or attributes to a person on the basis of the group to which that
person belongs.
➔ Halo effect
- The process of generalizing from an overall evaluation of an
individual to specific characteristics of the person.
- The halo effect occurs when one positive characteristic or skill
person has is used to develop an overall positive impression of that
person, often in unrelated or irrelevant areas.
- The horn effect is when one negative characteristic or skill is made
into a negative overall impression of a person.
➔ Projection
- The process by which people attribute their own feelings and
characteristics to other people.
- It is a defense mechanism which serves to transfer blame and/or
provide protection from our own unacceptable thoughts and
feelings.
➔ Selective perception
- The selection of things consistent with one's own personal viewpoint
and the rejection of things that are inconsistent with that viewpoint;
- A perceptual defense is the retention of existing beliefs that conflict
with new information
➔ Expectancy effects
- The perception of stimuli by persons in ways that confirm
expectations.
- Self-fulfilling prophecy (Pygmalion) effect-occurs when people
unconsciously adjust their behaviors to reflect their expectations in
a situation.
Our perception processes have both advantages and drawbacks. The drawbacks are that
selective attention and perceptual bias can prevent us from considering all the relevant information,
thereby making our interpretations perceptual processes improve our decision-making efficiency
by preventing information overload and saving us time by organizing the information
Self-Perceptions: The Johari Window
One way to conceptualize the possible combinations of what you know about yourself and
what others know about you.
● Self-understanding - The acknowledgement that you and people who interact with you are
susceptible to perceptual errors.
● Conscious information processing - Carefully considering the "facts" during the perceptual
process and consciously questioning the accuracy of what you perceive.
● Reality testing - The comparison of developed perceptions about a stimulus object to
another (objective) measure of the object.
PERSONALITY IN ORGANIZATION
PERSONALITY
Openness
Is the degree to which a person is curious, original, intellectual, creative, and open to new
ideas. People high in openness seem to thrive in situations that require being flexible and
learning new things. They are highly motivated to learn new skills, and they do well in
training settings.
Conscientiousness
Extra-version
Is the degree to which a person is outgoing, talkative, and sociable, and enjoys being in
social situations. One of the established findings is that they tend to be effective in jobs
involving sales.
Agreeableness
Is the degree to which a person is nice, tolerant, sensitive, trusting, kind, and warm. In other
words, people who are high in agreeableness are like able people who get along with others.
Not surprisingly, agreeable people help others at work consistently, and this helping
behavior is not dependent on being in a good mood.
Neuroticism
Refers to the degree to which a person is anxious, irritable, aggressive, temperamental, and
moody. These people have a tendency to have emotional adjustment problems and
experience stress and depression on a habitual basis. People very high in neuroticism
experience a number of problems at work. For example, they are less likely to be someone
people go to for advice and friendship.
DIMENSIONS OF PERSONALITY
Self-esteem Dimension
SELF-MONITORING
Self-monitoring
Refers to the extent to which a person is capable of monitoring his or her actions and
appearance in social situations. In other words, people who are social monitors are social
chameleons who understand what the situation demands and act accordingly, while low
social monitors tend to act the way they feel.
Proactive personality
Refers to a person’s inclination to fix what is perceived as wrong, change the status quo,
and use initiative to solve problems. Instead of waiting to be told what to do, proactive
people take action to initiate meaningful change and remove the obstacles they face along
the way. In general, having a proactive personality has a number of advantages for these
people. For example, they tend to be more successful in their job searches.
Self-esteem
Is the degree to which a person has overall positive feelings about his or herself. People
with high self-esteem view themselves in a positive light, are confident, and respect
themselves. On the other hand, people with low self-esteem experience high levels of self-
doubt and question their self-worth. High self-esteem is related to higher levels of
satisfaction with one’s job and higher levels of performance on the job.
Self-efficacy
Is a belief that one can perform a specific task successfully. Research shows that the belief
that we can do something is a good predictor of whether we can actually do it. Self-efficacy
is different from other personality traits in that it is job specific. You may have high self-
efficacy in being successful academically, but low self-efficacy in relation to your ability
to fix your car. At the same time, people have a certain level of generalized self-efficacy
and they have the belief that whatever task or hobby they tackle, they are likely to be
successful in it.
• Take a self-inventory. What are the areas in which you lack confidence? Then
consciously tackle these areas. Take part in training programs; seek opportunities
to practice these skills. Confront your fears head-on.
• Set manageable goals. Success in challenging goals will breed self-confidence, but
do not make your goals impossible to reach. If a task seems daunting, break it apart
and set mini goals.
• Find a mentor. A mentor can point out areas in need of improvement, provide
accurate feedback, and point to ways of improving yourself.
• Don’t judge yourself by your failures. Everyone fails, and the most successful
people have more failures in life. Instead of assessing your self-worth by your
failures, learn from mistakes and move on.
• Until you can feel confident, be sure to act confident. Acting confident will
influence how others treat you, which will boost your confidence level. Pay
attention to how you talk and behave, and act like someone who has high
confidence.
• Know when to ignore negative advice. If you receive negative feedback from
someone who is usually negative, try to ignore it. Surrounding yourself with
naysayers is not good for your self-esteem. This does not mean that you should
ignore all negative feedback, but be sure to look at a person’s overall attitude before
making serious judgments based on that feedback.
OTHER DIMENSIONS OF PERSONALITY
Locus of control
Deals with the degree to which people feel accountable for their own behaviors.
Occurs when people believe that internal factors (their skills and abilities) are the
determinants of their destiny.
Occurs when people believe that external factors such as luck, other people, or
organizations are the determinants of their destiny.
ADKAR Model of Change. (2018, February 23). Expert Program Management; EPM.
https://expertprogrammanagement.com/2018/02/adkar-model-of-change/
Prosci Change Management. (2019). The Prosci ADKAR Model: Why it Works.
Prosci.com. https://www.prosci.com/resources/articles/why-the-adkar-model-works