§The strange case of Carly Fiorina §Why are you here §Leadership and power §Power and dependence §Power bases and tactics §Three dimensions of the political landscape §Politics and political behavior §Abuse of power §So what? § §CEO of HP between 1999-2005 §Oversaw a fusion with Compaq §Board of directors reduced from 14 members (1999) to 11 members (2000) §Share value reduced by cca. 50% §No changes in dividends §Increased rewards for board members §100 000-105 000 (2000) to 200 000 (2004) §Leadership perspective §Role of the individual § §Downward influence § §Goal congruence Power perspective §Role of individual, group, organization § §Down, up, lateral influence § §Dependence §Power §Capacity of person A to influence person B in such a way that B acts in accordance with A’s wishes. Dependence Relationship between two people, where one controls something that the other wants. §Person A controls something that is: §Important §Scarce §Difficult to replace Person B needs that something Person B is dependent on person A Person A has power over person B §Greater satisfaction, commitment, performance •Formal •Coercive •Reward •Legitimate •Personal •Expert •Referent §Methods of transforming the power base into results: §Legitimacy §Rational persuasion §Inspirational goals §Consultation §Exchange §Personal appeal §Ingratiation §Pressure §Coalitions §Upward (on your superior) §Rational persuasion, coalitions §Downward (on your subordinates) §Rational persuasion, inspiration, pressure, consultation, ingratiation, exchange, legitimacy §Lateral (on your peers) §Rational persuasion, consultation, ingratiation, exchange, legitimacy, personal appeals, coalitions §There is no such thing as an absolute ruler. § § §A person can divide the environment into three dimensions: §Nominal selectorate (Exchangeables) §Real selectorate (Influentials) §Winning coalition (Essentials) §Stay in power and achieve goals, people obtain the support of Influentials and Essentials by giving them rewards § §These rewards come at the expense of Exchangeables § §Rules for rulers: 1.Keep the winning coalition as small as possible, 2.Keep the nominal selectorate as large as possible, 3.Control the rewards, 4.Reward Essentials to keep them loyal, 5.Don’t take rewards away from essentials to give them to Exchangeables. § §Using power to achieve goals §Engaging in Political Behavior §Activities not part of formal role §Attempts to influence the distribution of advantages §Differences between individual and organizational goals §Limited resources §Ambiguous, unclear, subjective methods of distributing rewards §Personality traits § §It is almost inevitable §Job satisfaction §Performance § §Stress, anxiety §Employee turnover § Depends on corporate culture, personality, political ability § §Forms §Bullying §Corruption §Sexual Harassment §… §Minimize abuse of power: §Create clear rules §Make reporting abuse easy and safe §Investigate every report §Punish abusers §Educate §May 2008 – massive inflation §Portion of population living off less than 1 USD/day §36% (1990) -> 80% (2006) §Life expectancy §59 (1990) -> 37 (2005) §44% of citizens suffer from malnutrition, although 70% of citizens are farmers (2008) §1997 – buying electoral support §1998 – increased food prices -> unrest §Land redistribution (2000) §70% of land taken without compensation and given to the poor § §„Local courts twice ruled that farm occupation was illegal and ordered government to drive off veterans and their supporters. As a result, Mugabe's land grabbing effectively crippled Zimbabwe‘s commercial industry“ § §Foreign aid to Zimbabwe stopped §Public sector financed by printing money § §Buying support of war veterans (Essentials) with state land §Control over food supply and food aid -> buying votes with food (Influentials) §Land redistribution to buy the support of the poor (Influentials) §Loyalty rewarded by distributing housing (Influentials, Essentials) §All of this at the expense of everyone else (Interchangeables) § §Political opposition and dissidents’ property destroyed § § §You can gain power by making others dependent on you – obtain something that is necessary, scarce, and difficult to replace §Others will try to do the same §Avoid making others feel powerless or threatened – people will do horrible things if they feel like they will lose the power they have §You can get a more accurate picture of a situation by taking politics into account § § § §Robbins, S. P., & Judge, T. A. (2017). Organizational Behavior. Pearson Education Limited §De Mesquita, B. B., & Smith, A. (2011). The dictator's handbook: why bad behavior is almost always good politics. PublicAffairs.