• Unit 8: Power, Politics, and Change

    This unit explores the concepts of power in organizations and the political environment within the organization. Power is related to leadership and authority; however, politics consists of the coalitions that form among groups and people. Companies can positively or negatively use power and politics as both individual actions and group processes. When managers use legitimate authority, it is fine, but they must take the use of unauthorized power into account.

    As all organizations now operate in a volatile, uncertain, and complex world, the firm must be prepared to change in response to external forces and trends. The internal environment of the business and the leadership will determine how well the company is positioned to make that change. People are naturally resistant to change, and thus it helps if the organization's leaders are resilient and visionary to help move the company forward.

    Completing this unit should take you approximately 6 hours.

    • Upon successful completion of this unit, you will be able to:

      • describe how power bases such as legitimate power, reward power, expert power, information power, coercive power, and referent power work and how they influence people in organizations;
      • explain common power tactics in organizations and power-shifting strategies to effectively manage workplace politics;
      • evaluate methods to manage organizational politics by using rational processes, strategic leader power, reducing system uncertainty, breaking up political fiefdoms, and reducing competition for scarce resources to ensure appropriate and ethical behavior;
      • summarize the models of change management in organizations, such as Lewin's Three-Step model, Kotter's Eight Step Plan, Nadler's System Model, and Action Research, as well as planned organizational development and crisis management;
      • analyze how firms use agility to address change in a complex, turbulent, and uncertain business environment; and
      • develop processes to manage change, change mindsets, and instill a collaborative culture to solve business problems.

    • 8.1: Power and Politics

      We often negatively think of organizational politics, but there are positive aspects of power and politics. Organizations consist of formal, informal, and social networks. This section will look at the sources and uses of power. Formal power is the easiest to see, as managers have the power to require certain behaviors from employees. Informal power is more difficult to see but felt within an organization. Organizational politics are informal and unofficial and usually unseen with efforts to influence the organization to achieve some objective on the part of the power holder. One of the resources says: "Effective politics isn't about winning at all costs but about maintaining relationships while achieving results". Managers and leaders need to have political awareness and skill. The following sections will explore power and politics in depth.

      • Power and Politics in Organizations Book
        This resource provides an overview of power and politics, considers the effect of conformity, and reviews studies on the effects of conformity. The text explores the relationship between dependency and power. It uses Steve Jobs as an example of all six types of power, including legitimate power, expert power, reward power, information power, coercive power, and referent power. Because leaders can abuse power, the text also examines the direction of influence.
      • Political Behavior in Organizations Book
        This text shows the organizational decisions that are most likely to involve politics. It also shows the reasons for political behavior and the most conducive conditions for political behavior. Even such things as the location of an office or its arrangement can involve politics. The text also introduces the idea of strategic contingencies.

    • 8.2: Power Bases

      Power bases are the source of a person's influence in the organization. People can have more than one power base or use several different power bases depending on the circumstances or design of the organization. If the power base is the source, we need to examine how those power bases are used. This section explores the specific tactics that managers may employ for different purposes and situations.

      • Bases of Power and Influencing Tactics Page
        Watch this video for a review of the bases of power. In the previous section, we considered some of the most common bases when looking at Steve Jobs. However, there are more bases of power, such as reward power, coercive power, referent power (personal power), legitimate power, expert power, information power, affiliation power, group power, technological power, bureaucratic power, philosophical power (such as the Pope or the Dalai Lama). Leaders use various methods to influence people to achieve the organization's goals and need different tools in their toolbox. The leader can use compliance, coercion, exchange, commitment, or relational tactics. The speaker offers examples of when each tactic is appropriate.
      • Power in Interpersonal Relations Book
        This resource asks how power bases work in organizational life. That is an excellent question whether we are in a role as a manager, leader, or follower (employee). We all have different roles within the organization, and while we might manage a division, we still report to a senior manager. The text reviews the definition of power and the bases of power. It then introduces the concept of power dependencies, where the subordinate's values, the nature of the relationship between parties, and counterpower are explored.

    • 8.3: Counterpower and Strategic Contingencies

      In organizations, power may be exhibited along the formal lines of authority, but it may also be found in informal networks. This section will help you understand the tactics that can tip the balance of power or place the manager at a different point along the continuum of the dimensions of power.

      • Uses of Power Book
        This text discusses the most common power tactics in organizations. As the text points out, some uses are more ethical than others. However, suppose you have worked at a company for some time. In that case, you will undoubtedly recognize some of these power tactics, including controlling access to persons and using outside experts. The text offers guidelines for the ethical use of power using five common bases of power.

    • 8.4: Influencing Organizational Politics

      Before studying organizational change, we need to know how to operate within the organization's political structure. We have learned that politics is not just negative but can have positive outcomes. Although the word tends to be used as a pejorative, we have learned that it is used in organizations to allocate resources and make decisions. This section demonstrates that if we want to achieve change, we must know how to exert influence in organizational politics.

      • Limiting the Influence of Political Behavior Book
        This text offers strategies to help ethically manage organizational politics. We can limit the effects of political behavior by reducing system uncertainty, reducing competition, breaking up existing political fiefdoms, and preventing future fiefdoms.
      • Politics and Politicking Book
        If managers want to be effective, they must be fully aware of the political environment and tactics. This resource examines the features of the organizational structure, its power sources, leadership styles, features, and tactics. The text recounts the strategies and tactics that organizations may use.
      • Leveraging Power and Politics Book
        This text addresses power as a motive (good or bad) and power competition. The text contrasts rational processes with political processes and which decisions are subject to one or both of those processes. Leading with power is described with tips on the specific tactics to use. The loss of power is also discussed. Note that the upcoming sections are about change and change management in organizations. If leaders cannot leverage their power in the organization's political environment, they will not be able to change the status quo.

    • 8.5: Change Management

      Change is a constant in life, as it is in organizations. An organization that cannot change cannot evolve. When organizations do not evolve, they stagnate and will eventually become irrelevant. An excellent example is the Eastman Kodak Company, once one of the most powerful brands in the United States. The company made cameras and film that allowed amateurs to take pictures and flourished from 1888 until its collapse in 2004. Despite inventing digital photography (which they used to enhance film), the company never believed digital photography would be disruptive. They could not have been more wrong.

      There are many reasons for companies to change, but regardless of the reason, the firm must manage the change well to be successful. Thus, the resources in this section will address the dimensions of change, change management, and agile changes.

      • Change Management Page
        Watch this short video for a discussion of four possible reactions to change. The speaker shares some best practices for managing change.
      • Organizational Change Book
        This text describes three types of organizational change: structural change, technological change, and cultural change. The changes that are called for will depend on the stage of growth the company is in. The text also discusses the scope of change needed, whether incremental, transformational, or strategic, and the level at which the change needs to take place.
      • Models of Change Management Book
        If we recognize the need for change and the circumstances under which it must occur, we can look to the methods of change. Organizational researchers offer models for change management. Read this article to study several models for change management, such as Lewin's Three-Step model, Kotter's Eight-Step Plan, Nadler's System Model, and Action Research.
      • Why Is Organizational Change So Difficult? Page
        This video explains why 70-80% of all planned organizational changes fail. The speaker recommends using models to address the dynamic and social change processes. She also addresses the "unintended consequences" of change and how people react.

    • 8.6: Rapid Responses in a Changing Environment

      The term "agile" stemmed from the software industry that must adapt to change rapidly and deliver products at intervals during the project, responding to product changes per customer requirements. Since being introduced, agile methods have been adopted by other industries and by organizations. More companies have adopted agile change management to quickly pivot to respond to market changes, such as a pandemic. This section explores the concept of agile in terms of it being an ecosystem of interrelated networks.

      • Leading an Organization in an Agile-Age Page
        This video addresses how organizations must change in today's complex environment. The speaker points out that many issues faced by businesses are interconnected. There is a shift in the organizational dynamic to a view that the company is a living system that must be able to evolve using divergence, convergence, and then emergence.
      • Agile Leadership Page

        In this video, the speaker says that agile leadership is entrepreneurial using mental agility. She says you must use an iterative process, build a tribe of resources, and get uncomfortable. Watch to find out what an opportunity enthusiast is.

      • Agile Culture Page
        Agility means that we must accept failure as a part of the change process. Watch this video to see why we need an agile business mindset.
      • Creating an Agile and High Performance Team Book
        This article promotes the use of the Authentic Leadership Model to manage change. The author provides examples of successful change, challenges, and solutions to help the company evolve.

    • 8.7: Changing Mindsets

      Ultimately, leading people and managing change is all about changing mindsets. This section is the culmination of the entire course. Leading people in an organization is about the changes people can make for themselves and the organization. When people can change, so is the organization. As we have seen, sometimes leaders manage downward, sometimes laterally, and sometimes upward. Having the skills and abilities to change mindsets (including our own) enables growth, whether organizational or individual. Take the time during this section to reflect on what you have learned about managing people and yourself to become leaders in your organization.

      • Changing Mindsets Book
        Developing a new mental mindset takes both individual and institutional change. Reading this article will help you understand mental models.
      • Develop the Mindset of a Leader Page
        Read this article for tips on how to change your mindset.
      • Engage the Process Book
        This resource explains the concepts of a closed, open, and dialogic mindset. It also explores the 3Cs of leadership: Commitment, Control, and Challenge. You have already exhibited the third C by taking the challenge of completing this course.
      • Strategies for Successful Organizational Change Book
        This text provides tips on how to effect and implement change in the organization using transparency, effective communication, education and training, personal counseling, and monitoring the implementation. The text defines proactive and reactive change.

    • Study Guide: Unit 8

      We recommend reviewing this Study Guide before taking the Unit 8 Assessment.

    • Unit 8 Assessment

      • Unit 8 Assessment Quiz
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.