WHAT IS POWER

 a capacity that A has to influence the behavior of B so that B

acts in accordance with A’s wishes.
BASES OF POWER
 FORMAL POWER
Formal power is based on an individual’s position in an
organization.

FORMAL POWER
 The coercive power base is dependent on fear
 An extreme form of punishment involving
threats or force to make members comply
which could lead to rebellion among the group.
EXAMPLE - PARENTING
 REWARD POWER
 The opposite of coercive power is reward power.
 People comply with the wishes or directives of
another because doing so produces positive
benefits such as recognition, promotions, bonus,
interesting work assignments, friendly colleagues
etc.
 Coercive power and reward power are counter
parts of each other. If you remove something of
positive value from another you have coercive
power over that person
 If you can give someone something of positive
value you have reward power.
LEGITIMATE POWER
 The power a person receives as a result
of his or her position in the formal
hierarchy of an organization.
 It includes presidents, managers, army
captains, principals etc.
 For example: Naina Lal Kidwai , Group
GM and Country head of HSBC Group
companies in India is a powerful
women in the banking industry. So she
is an example of legitimate power.
 PERSONAL POWER
 Power that comes from an individual’s
unique characteristics.

EXPERT POWER
 Expert power is influence wielded as a
result of expertise, special skill, or
knowledge.
 REFERENT POWER
 Referent power is influence based on
possession by an individual of desirable
resources or personal traits.
 Referent power develops out of admiration
of another and a desire to be like that
person.
 It helps explain why celebrities are paid
millions of dollars to endorse products in
commercials.
 Ways in which individuals acquire referent
power is because of their charismatic
dynamism, likeability, and emotional effects
on us.
 POLITICS: POWER IN ACTION
 Derived from a Greek word “Politika”,
which means “Affairs of the State”.
 In an organization, when employees convert
their power into action, we describe them
as being engaged in Politics.

ORGANIZATIONAL POLITICS
 Organizational politics involves actions by individuals, teams, or departments
to acquire, develop, and use power to obtain preferred outcomes when
disagreement about choices exists.
 According to Farrell and Peterson, the successful practice of organizational
politics is believed to lead to a higher level of power, and post attainment of
power, there is more opportunity to engage in political behavior.
The term POLITICS is very often heard from those who are working in
organizations, be it large or small, public or private. When people in
the organizations transform their power into action, then they are
said to be engaged in politics.
At times, it becomes one of the most disturbing elements for
employees, and they might even decide to quit the organization if
the political waters get above their heads.
An employee who has a great deal of knowledge, skill & expertise,
but does not have the ability to counter the political environment,
will get easily disappointed and this will in turn affect his/her level of
output.
The power play and the use of politics in the organization is
demonstrated in the figure below, where people unduly create
problems in the growth of an employee. As he/she rise up the
success ladder in the career path, imposed problems comes in his or
her way.
Such problems are not genuine ones but are deliberately created
to pull one down and hinder one’s growth.
THE REALITY OF POLITICS
 Politics is a fact of life in organization.
 Organizations with limited resources
often lead to conflicts.
 Ambiguous decisions leads to
misinterpretations making it difficult for
decision making.
 The above hurdles can be overcome just
by communicating with the members in
the organization.
POLITICAL BEHAVIOR
Actions by individuals in an
organization, trying to influence the
behavior of others and course of
events, in order to protect their self-
interests, meet their own needs, and
advance their own goals.
It is a non-rational influence on
decision making.
 TYPES OF POLITICAL BEHAVIOR
• Refers to normal everyday politics
1. Legitimate • Includes activities like complaining to supervisor,
Political
Behavior bypassing chain of command, forming coalitions,
etc.

• Behaviors that violate implied rules and are

2. Illegitimate extreme in nature
Political • For example – sabotage, whistle-blowing,
Behavior symbolic protests, etc.
FACTORS INFLUENCING POLITICAL BEHAVIOR
High MAC Organizational
personality Investment

Internal locus Perceived job

of control alternatives

High self Individual Expectation of

monitors Factors success
FACTORS INFLUENCING POLITICAL BEHAVIOR
Zero-sum
Low
reward
ambiguity
practices

Democratic
Promotion
decision
opportunities
making

High
Reallocation Organizational
performance
of resources Factors
pressures
FACTORS INFLUENCING POLITICAL BEHAVIOR
 ETHICS OF POLITICS
As one of many guidelines, ­The Center for Business Ethics at
Bentley College has developed six questions to help evaluate
the ethics of a specific decision. Before engaging in a
particular influence act or political tac­tic, they recommend
that a person seek answers to the following questions;

1. Is it right? (based on absolute principles of moral rights)

2. Is it fair? (based on absolute principles of justice)
3. Who gets hurt? (the fewer the better)
4. Would you be comfortable if the details of your decision
or actions were made public in the media or through
electronic mail? (based on the principle of disclosure)
5. What would you tell your child, sibling, or young relative
to do? (based on the principle of reversibility)
6. How does it smell? (based on common sense and
intuition)
 TACTICS OF ORGANIZATIONAL POLITICS
Both individuals and groups play politics
in the organization for different reasons,
like to safeguard their level of interest, to
have a greater say in the process of
decision-making, or to have a greater
autonomy over the allocation of limited
resources.
TACTICS OF ORGANIZATIONAL POLITICS
 The most commonly used power tactics that helps to translate some
power bases into a specific action are:

1. NEGOTIATIONS OR BARGAINING
 This tactic involves negotiation for
sharing of benefits between the groups.
Negotiating helps in avoiding the
conflicts.
 The individual or group with higher
bargaining power is able to get more
benefits than the sacrifices made.
 2. COOPTATION
 Under this strategy, the power holder tries
to associate the representatives of other
groups in decision making so as to avoid the
grounds of criticism about the misuse of
power.

3. ALLIANCE
 Using this tactic, two or more groups in the
organization may form a coalition or
temporary alliance on the basis of the
minimum common program.
 It serves as an interesting mix of competition
and cooperation. Members of such groups
cooperate in order to compete with other
non-group members.
4. CONTROL OVER THE AGENDA OF THE MEETINGS
 A politically inclined person(s)may have the control over deciding the
agenda of the meeting. Such person(s) can easily manipulate the
things to suit their personal interest.

5. INGRATIATION
 It is one of the most common power
tactics. People use flattery, praise or
friendly behaviour prior to making any
request. It is a tactic to make someone
feel important or good before making a
request to them. One can increase the
chances of success by using such tactic.
 POLITICAL TACTIC
MENTIONING
USING INFORMATION AS A POLITICAL TOOL
CREATING A FOURABLE IMAGE
ATTACKING OR BLAMING OTHERS
PRASING OTHERS
ASSOCIATION WITH INFLUENCE PEOPLE
DEVELOPI NG A SUPPORT BASE
FORMING POWER COALITION WITH
STRONG ALLIES
%OF MANAGERS BRIEF DESCRIPTION OF TACTICS
54% INVOLVES THE PURPOSEFUL WITHHOLDING
OR DISTORTION OF INFORMATION
54% PROACTIVE WHEN GOALS IS TO REDUCE
COMPETITION FOR LIMITED RESOURCES
53% TACTING CREDIT FOR OTHERS
ACCOMPLISHMENT
37% GETTING PRIOR SUPPORT FOR A DECISION
BUILDING OTHERS COMMITMENTS TO A
DECISION THROUGH PARTICIPATION
25% MAKING INFLUENCE PEOPLE FELL GOOD
25% TEAMING WITH POWERFUL PEOPLE WHO
CAN GET RESULTS
24% BUILDING A SUPPORT NETWORKS BOTH
INSIE AND OUTSIDE
DYSFUNCTIONS OF POLITICS
 Organizations may be viewed as a
political system wherein individuals
acquire and exercise power over each
other to satisfy their self-interests.
 When the individual and organizational
interests are complementary to each
other, the political behavior is beneficial
or functional in nature. But if the goals
of the individuals are not in sync with
the goals of the organization, then the
political behaviour becomes
dysfunctional in nature.
1. CONFLICTS
 In organizations, people play political games to
acquire power which leads to unhealthy
atmosphere in the organization. Also, the efforts
of the members of the organization get directed
towards the power struggle, instead of
performing their duties. As a consequence, work
suffers and conflicts emerge.

2. BIASED PERFORMANCE APPRAISAL

 Organizational politics affects the pay
system based on performance evaluation
most detrimentally, benefitting the less
efficient employees over the meritorious
ones.
2. DELAY IN FEEDBACK
 Feedback mechanism plays a very crucial role in
determining the success rate of the employees in
the organization.
 Due to dysfunctional political activities in the
organization, the correct feedback gets delayed.
This affects efficiency of the workers, which in turn
directly affects the organizational functioning.

3. PROMOTION OF SELF INTEREST

 Political behaviour is generally guided and
motivated by self-interest. This further promotes
politics in organizations and people are often
engaged in political behaviour.
5. ADVERSE IMPACT ON EMPLOYEES
 Power politics weaken the morale of the
employees and demotivates them. Such
an environment creates negativity in the
organization and hampers the smooth
functioning of the organization.

MANAGING POLITICAL BEHAVIOR

 It is impossible to eliminate political
behavior in the organization in totality.
But one can adopt certain measures
through which the dysfunctional
component of political behaviour can
be minimized.
The following measures may be adopted to manage political behaviour effectively and in the interest
of the organization:

1. CLARITY OF ROLES
 It is the responsibility of the management to define
the roles and authority of organizational members in a
clear and unambiguous manner. Such an attempt of
defining roles, responsibilities, authority and
accountability clearly helps in minimizing favouritism
and nepotism in the organization.

2. ETHICAL ROLE MODEL

 Top managers should work positively and ethically,
so that they serve as a role model to other
employees in the organization.
 If people at senior positions engage themselves in
playing political games, it is bound to convey a
wrong message to the subordinates and creates an
un healthy culture in the organization.
3. TRANSPARENT APPRAISAL SYSTEM
 To ensure stable and positive environment, which
is free from all sort of dysfunctional politics,
organizations must ensure sound and transparent
performance appraisal mechanisms.
 They also need to ensure that performance should
be the only basis of rewards like increments,
promotions etc.

4. FAIR DISTRIBUTION OF RESOURCES

 Organization must adopt a systematic approach for
the allocation of resources within the organization.
This would restrict the dysfunctional aspect of
politics in the organization.
5. EFFECTIVE COMMUNICATION
 Restrictions and barriers in communication
develop a land for dysfunctional political behaviour
in the organization.
 To ensure smooth functionality, organization must
ensure a two-way communication channel. There
should be free flow of information in the
organization.

6. ASPIRATION OF EMPLOYEES
 Management should be responsive to the needs
and aspirations of their employees so that they can
achieve a direct sync between the individual needs
and the organizational needs.
INFLUENCE IN AN ORGANIZATION
WHAT IS INFLUENCE
 Influence is something with which a
person can alter or bring a change in
another person’s behaviour.
 Power and politics play a vital role in
influencing behaviour.

HOW DO INFLUENCE WORK IN AN ORGANIZATION

 In an organisation everyone wants to
excel.
 So people often use influence for getting
work done.
HOW SHOULD I USE INFLUENCE OR WHERE SHOULD I START FROM

INFLUENCE TACTICS
These are techniques for creating influence
ROLE OF INFLUENCE TACTICS IN AN ORGANIZATION
 Influence tactics are used for getting things
done, more importantly the way ‘I’ want it
to be done, influence tactics are used by
every worker in the organization starting
from the daily wages to the board of
Directors. The difference comes in the
Influence Tactics
INFLUENCE TACTICS
There are nine distinct Influence Tactics:
1. Legitimacy: It states the influence on behaviour
using position or authority. This request is
generally in accordance with the policy and rules
of the organisation.
2. Rational Persuasion: Presenting logical
arguments and factual evidence to prove that the
request is reasonable.
3. Inspirational appeals:
4. Consultation: Involving people to complete task.
We can consult our boses, peers and
subordinates . This results in an increase in
motivation.
5. Exchange: Rewarding the workers with benefits,
bonuses in exchange for completing a task.
INFLUENCE TACTICS
6. Personal appeals: Asking for cooperation on the
grounds of friendship
7. Ingratiation: Using psychological techniques to
become more attractive or likeable to others and
then getting the things done
8. Pressure: Using warnings, repeated demands and
threats
9. Coalition: Using the support of others for making
or asking for a change. Eg: strikes
 RESULTS OF INFLUENTIAL BEHAVIORS
Depending on the situation and the type of influence the employee or manager
uses, one of three possible results may occur:-

 People may oppose the attitudes or behaviour

desired by the person doing the influencing.
 Compliance: People may agree to change their
attitudes and behaviours, but only in efforts to
reap benefits associated with complying or to
resist receiving negative consequences
associated with noncompliance.
 Commitment: This is the most favourable
outcome to influential behaviour which occurs
when people agree with the influencer's ideas
and are happy to change and adapt accordingly.
 UNDERSTANDING OR WHAT DO WE LEARN
 Some tactics are more effective than others. Like:
Rational Persuasion, Inspirational Appeals and
Consultation. They most often result in a positive
influence.
 Using a combination of influence tactics give favourable
results. For Eg: If an employee is looking for a raise in
his salary then he can pick a combination of Rational
Persuasion, Consultation and Ingratiation influence
tactics for achieving his/her motive.
 Organisational culture plays an important role in
influencing and is different from organisation to
organisation.
 Finally it comes down to your skills. The better skills you
have the better influence you can create. Sequencing
the tactics is all about skill. Hard work is everywhere.
CEO Vishal Shikka had to resign Infosys
 The resignation of Infosys Chief Executive Officer
(CEO) Vishal Sikka, soon after he completed 3
years at Infosys, comes as a culmination of an
unending tussle between the company board and
founder-shareholders, especially N.R. Narayana
Murthy, over issues of governance. 
 On 18th of August 2017 he stepped down as CEO
 and MD of Infosys. He quits as Executive Vice
Chairman of Infosys on 25th August, 2017.
GROWTH THROUGH ACQUISITION
 Sikka has maintained that Indian IT's older
businesses of application development &
maintenance, infrastructure management and
BPO are slowing and the margins are falling. He
believes companies need to innovate and offer
value-added services. This move also demands
significant acquisitions from basic IT
outsourcing services into more lucrative new
areas, like cloud, automation and artificial
intelligence. Ten of the 16 senior executives
Sikka had hired from his previous company,
SAP, for his innovation agenda. 

-LEGITIMATE POWER
SIKKA’s SALARY
 A sharp increase in Sikka's compensation
early last year is said to be the biggest flash-
point. The company says Sikka's cash
compensation had actually went down and
the increase has been primarily in RSUs
(restricted stock units) and stock options,
which are directly linked to incredibly steep
goals. Experts say the Infosys founders'
policy of low compensation worked as they
had huge equity stock in the company which
paid handsome dividends, an advantage.

-REWARD POWER 
INVESTIGATION REPORTS
 Recently, the rift between the board
and the founders widened over
investigations into several decisions
made by the company. Narayana
Murthy wrote a mail to the board,
demanding to make the
investigation reports public. 

-COERSIVE POWER
 Ten of the 16 senior executives Sikka had
hired from his previous company, SAP,
quit over the past year and a half and
many more in counting left Infosys after
the exit of Vishal Sikka.
-INFLUENCE
 Inspite of the Vishal Sikka being a genius
mind still the decision of Narayan Murty
and other members of board have
decided to remove Sikka from his
position.
-POLTICIS IS PERVASIVE