Leadership Power

and Influence

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“If a man can accept a situation in a place
of power with the thought that it’s only
temporary, he comes out all right. But
when he thinks that he is the cause of the
power, that can be his ruination.”

• Harry S. Truman

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Transactional and Transformational
Leadership
• Transactional Leadership – a transaction
or exchange process between leaders and
followers.
• Transformational Leadership –
characterized by the ability to bring about
significant change in followers and the
organization.

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 Transformational Leadership
• Develops followers into leaders
• Elevates concerns to higher level
psychological needs
• Inspires followers to go beyond their own
self-interests
• Paints a vision of desired future state and
how the change is worth the effort

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 Transformational Leadership
• Can communicate complex ideas in a
compelling manner
• Act in unconventional manners
• Inspire faith
• Earn trust by willingly incurring great
personal risk
• Source of influence is from personal
characteristics
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 Charismatic Leaders
Leaders who have the ability to inspire
and motivate people to do more than
they would normally do, despite
obstacles and personal sacrifice.

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 Black Hat of Charisma
• Used for self serving purposes
• Deception, manipulation and exploitation
of others
• Personalized behavior

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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

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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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 Where does power come
from?

Position power
• A written, spoken, or implied contract
wherein people accept either a superior or
subordinate role and see the use of
coercive as well as noncoercive behavior
as an acceptable way of achieving
desirable results.

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 Types of position powers
Legitimate Power
• Authority granted from a formal positions
in an organization.
– Rights, responsibilities and prerogatives
accrue to anyone holding a formal leadership
position
– Set goals, make decisions and direct activities

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 Reward Power
• Authority to bestow rewards on other
people
– Appointed leaders may have access to
rewards such as pay increases, promotions,
physical resources
– Influences subordinate’s behavior

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 Coercive Power
• Authority to punish or recommend
punishment
– Opposite of reward power
– Right to fire, demote, criticize, reprimand or
withdraw pay raises

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 Types of personal powers
Expert Power
• Results from special knowledge or skill
– Followers go along with recommendations
because of his/her superior knowledge
– Usually gained from experience

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 Referent Power
• Comes from personality characteristics
that command identification, respect and
admirations so that others want to emulate
the person
– Dependent on personal characteristics rather
than title
– Strong identification with leader

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 Ex. 12.3 Responses to the Use of
Power
Position Power Personal Power

ex c
se

us e
eu

es s
ri at

ve i
r op
a pp

Compliance Resistance Commitment

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 Dependency
• If a person has control over a resource
that is desired, he/she gains power
– Information
– Cooperation
– Resources

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Ex. 12.4 Characteristics That Affect Dependency and
Power in Organizations

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

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 1.The Trust of Advisors. ...
2. The Knowledge from Failure. ...
3. The Diversity of Thought from Your
Team. ...
4. The Fresh Perspectives from Think-
Tanks. ...
5. The Wisdom Inherent in Unwritten
Rules.
6. Integrity values
7. competence for the task

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 . 12.5 Strategic Contingencies that Affect
Ex
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

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 Political Activity
• Impression management – people seek to
control how others perceived them

• Executive presence – the impact you have

when walk into a room

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Ex . 12.6 Seven Principles for Asserting
Leader Influence
1. Use rational persuasion
2. Make people like you
3. Rely on the rule of reciprocity
4. Develop allies
5. Ask for what you want
6. Remember the principle of scarcity
7. Extend formal authority with expertise and credibility

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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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