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Module:
Leadership &
Management
Dr Tamer Karam
Chapter 5
Power
Copyright © 2015 Pearson Education 1-2

Learning Objectives
• Define power, its consequences, and its

cultural roots
• Apply the different sources of individual and
team power to achieve goals
• Explain the sources and process of power abuse,
corruption, and destructive leadership and how
to prevent them
• Analyze the changes in use of power and the
development of empowerment, and explain
their consequences for leadership
The Leadership
Question
Power is essential to
leadership.
Can also be abused? How can
leaders use power to get
things done without becoming
autocratic or abusive?

Every day, we move and
operate within systems of
power that other people
have constructed.
But we’re often
uncomfortable talking about
power. Why?
Eric Liu describes the six

sources of power and
explains how understanding
them is key to being an
effective citizen.
Copyright © 2015 Pearson Education 5
Definitions
• Power: the ability of one person to

influence others and exercise control
over them
• Influence: the power to affect the
course of an action
• Authority: the power vested in a
position

Impact of Power on Power
Holder
NEGATIVE
Want to acquire more
Oblivious to others’ needs
Cannot empathize
Addiction to power
Take credit
Negative stereotypes of others
Distance from
others
POSITIVE
Essential to leadership
Essential to organizations
More action oriented
More sensitive
Focus on rules
More generous

Culture and Power
Power Uncertainty
distance avoidance
Organizational CLT: team

culture orientation
Group CLT:
culture participation

Distribution of Power and
Culture
• The more equal the power distribution

in an organization, the higher the
performance
• Culture strongly impacts the perception
and use of power
• In high-power distance culture,
expectations of power sharing are low

Individual Sources of Power
• Legitimate power
• Reward power
• Coercive power
• Expert power
• Referent power

Potential Reactions to
Individual Sources of Power
Sources of power Potential reactions
Coercion
Resistance
Reward
Legitimacy
Compliance
Expertise
Referent
Commitment

Career Stages and Power
Late
All power
CAREER PROGRESSION
sources;
letting go
Legitimate gracefully
power;
Personal appropriate
credibility; use of power
relationships;
expertise;
gaining
power
Early
SOURCES POWER AND CHALLENGES

Influence Tactics
• Rational • Personal appeal

persuasion • Exchange
• Inspirational • Coalition building
appeal • Legitimate tactics
• Consultation
• Pressure
• Ingratiation

Career Stages and Power

Sources of Power for Teams
• Coping with uncertainty

• Centrality
• Dependency
• Substitutability

Sources of Power for Top
Executives
• Legitimate power and position

• Distribution of resources
• Control of decision criteria
• Centrality in organizational
structure
• Access

Take A Position: Any Other thoughts

Power Abuse and Corruption
• Abuse: taking advantage of one’s power for

personal gain; unethical, but not always illegal
• Corruption: abusing one’s power to benefit

oneself or another person; both illegal and
unethical
• Destructive or toxic leadership: leadership

that violates the interest of the organization
and the well-being of followers

Causes of Abuse and Corruptions:
Leader Characteristics
• Inflated view of self

• Arrogant and controlling
• Rigid and inflexible
• Sense of entitlement
• Willing to use and exploit others
• Lack of empathy and caring for
others
• Disinhibited, vicious, ruthless
• Overly concerned with power
• The Dark Triad

Copyright © 2015 Pearson Education
Causes of Abuse and Corruption:
Follower Characteristics
• Fear
• Silence
• Agreement
• Compliance
• Inaction
• Flattery
• Submissiveness
• Anxiety
• Conformity
• Collusion

Causes of Abuse and Corruption:
Organizational Factors
• Organizational culture
• Separation of leaders and followers
• Hiring practices based on personal
relationships rather than objective criteria
• Short-term-oriented reward system with
limited criteria
• Centralized organizational structure
• High uncertainty and chaos
• Highly unequal power distribution

Power Abuse and Corruption
Cycle
Leader
characteristics
Follower Leader’s
compliance Organizational perceived
policies, power
actions,
climate, and
culture
Abusive
Follower behavior
flattery and toxic
leadership
• Poor decisions • Low performance

• Low engagement • Ethical and legal
• Low satisfaction violations
• High turnover

Solutions to Corruption
• Clear message and consistency

• Accountability
• Reducing uncertainty
• Training for leaders and followers
• Protecting employees
• Open communication

Solutions to Corruption
• Leader involvement in day-to-day

activities
• Reducing follower dependence on
leader
• Empowerment
• Objective performance measures
• Involvement of outsiders
• Changing the organizational culture
Empowerment: Leadership Factors
and Organizational Factors

The Leadership
Question Revisited
• Using power well is all about balance and
moderation. Leaders should use all sources of
power and influence available to them.
• Winning the hearts and minds is a long-term
solution, but sometimes you have to push to get
things done.
• The exercise of power must be aimed at
achieving organizational goals ethically.
• Leaders must demonstrate integrity and care for
followers as they take action to achieve goals.

Leadership Challenge
§ Understand the reasons for high

salaries:
- Market competition
- High risk jobs
§ Attracting talent
§ Fairness is highly subjective
§ Organizations in crisis need to attract
talent
§ High salary differentials affect morale

Leading Change:
Semler
• Open book management

• Share information and power
• Train employees to understand
financial information
• Sabbaticals to refresh
• High performance

Group
Dicussion
Group
Dicussion

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Module:

Copyright © 2015 Pearson Education 1-2

• Define power, its consequences, and its

Copyright © 2015 Pearson Education 5-4

Eric Liu describes the six

• Power: the ability of one person to

Copyright © 2015 Pearson Education 5-6

Copyright © 2015 Pearson Education 5-5

Organizational CLT: team

Copyright © 2015 Pearson Education 5-8

• The more equal the power distribution

Copyright © 2015 Pearson Education 5-9

Copyright © 2015 Pearson Education 5-10

Copyright © 2015 Pearson Education 5-11

SOURCES POWER AND CHALLENGES

• Rational • Personal appeal

Copyright © 2015 Pearson Education 5-13

Copyright © 2015 Pearson Education 5-14

• Coping with uncertainty

Copyright © 2015 Pearson Education 5-15

• Legitimate power and position

Copyright © 2015 Pearson Education 5-16

Copyright © 2015 Pearson Education 5-17

• Abuse: taking advantage of one’s power for

• Corruption: abusing one’s power to benefit

• Destructive or toxic leadership: leadership

Copyright © 2015 Pearson Education 5-18

• Inflated view of self

Copyright © 2015 Pearson Education 5-19

Copyright © 2015 Pearson Education 5-21

Copyright © 2015 Pearson Education 5-22

• Poor decisions • Low performance

Copyright © 2015 Pearson Education 5-23

• Clear message and consistency

Copyright © 2015 Pearson Education 5-24

• Leader involvement in day-to-day

Copyright © 2015 Pearson Education 5-26

Copyright © 2015 Pearson Education 5-27

§ Understand the reasons for high

Copyright © 2015 Pearson Education 5-28

• Open book management

Copyright © 2015 Pearson Education 5-29

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