Patterns of Management Power

PATTERNS OF MANAGEMENT POWER

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PATTERNS OF MANAGEMENT POWER Russell W. McCalley Foreword by Robert Eggert

Q

Quorum Books Westport, Connecticut • London

Library of Congress Cataloging-in-Publication Data McCalley, Russell W. Patterns of management power / Russell W. McCalley : foreword by Robert Eggert. p. cm. Includes bibliographical references and index. ISBN 1-56720-507-0 (alk. paper) 1. Management. 2. Power (Social sciences). 3. Organizational sociology. 4. Office politics. I. Title. HD31.M3822 2002 658—dc21 2001057866 British Library Cataloguing in Publication Data is available. Copyright © 2002 by Russell W. McCalley All rights reserved. No portion of this book may be reproduced, by any process or technique, without the express written consent of the publisher. Library of Congress Catalog Card Number: 2001057866 ISBN: 1-56720-507-0 First published in 2002 Quorum Books, 88 Post Road West, Westport, CT 06881 An imprint of Greenwood Publishing Group, Inc. www. quorumbooks. com Printed in the United States of America

<~r The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.48-1984). ++++++++++++++++++++++++++++

To my wife Grace, who is a gifted teacher, musician, and herself an author. Her editing contributions to the manuscript with appropriate words, punctuation, and grammatical correctness focused many of my original efforts into clearly understandable statements and a more readable script. For the days and months of devotion to this task, my thanks and appreciation are boundless.

Management is, in the end, the most creative of all the arts—for its medium is human talent itself. —Robert McNamara

Contents Foreword by Robert Eggert Preface Acknowledgments PART

I The Six Positions of Power in an Organization

1 2 3 4 5 6 7 8 PART

ix xi xiii

Introduction to Power in an Organization Position Power The Power of Providers The Power of Participation Presumed Power Policy Power The Power of Persuasion Power Enhancers

3 11 31 47 59 71 81 97

II The Power Structure, the Manager, and Management

9 Power in the Organizational Structure 10 The Manager's Power

119 137

viii

Contents

11 Management's Role: Direct and Control III 12 13 14 15 16 17 Epilogue PART

Using Power to Manage Manage People with Authority and Power Manage Functions by Accountability When to Manage, When to Lead Manage with Power and Style Manage Problems, Improve Productivity The Pathology of Power Follow the Yellow Brick Road Annotated Bibliography and References Index

147 163 181 195 213 231 247 261 265 269

Foreword Robert Eggert

During my seventeen years with the Ford Motor Company, I had frequent and firsthand experience with many types of management power. Lee Iacoca and Robert McNamara, friends as well as business associates, each followed a different pattern in use of their management power which is so well identified by McCalley in this book. Whereas Iacoca was a strong position power manager, he also possessed great persuasion abilities and used that power very effectively. Readers of this book can also learn how to blend persuasion with their position power. McNamara, on the other hand, was a brilliant manager who would make his point intellectually yet seldom try to convince those who did not fully embrace his point of view. This volume accurately, clearly, and with great understanding presents the various patterns of management power that are created and at work in many organizations. The six positions of power McCalley describes with unique precision are found in every organization, but seldom recognized and dealt with by management because they have not been so specifically identified. I was particularly drawn to the description of how committees are chaired or managed depending upon what their members will allow. During my service as an economic adviser to the Congressional Budget Office and as a consultant to the president's Council of Economic Advisers, I could easily spot those chairpersons who McCalley identifies as managing the committee and assuming position power over its decisions. These patterns of man-

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Foreword

agement power exist, but are too often missed by managers who do not know what to look for. This book will be a valuable reference for managers, teachers, and trainers to use with every level in the organizational hierarchy. The examples presented ring true of circumstances in many organizations and provide excellent venues for understanding the patterns that management will construct to use their power, either for self-promoting interests or to control problems and promote productivity. As a vice president with RCA for over eight years, I observed the effective application of what McCalley describes as the power boosters. At RCA very little was considered more important than communication. This book clearly identifies how one can develop excellent communication skills to enhance the effectiveness of management power. The combining of the power boosters with the six positions of power is a unique and important management tool offered in a way that can be easily adopted. My concluding impression of this book results in one piece of advice for all managers: Read it and profit.

Preface Everyone who is a member of society is familiar with the use of power. We recognize the power in the laws of our governments, both national and local, and the power of foreign governments as well. We can identify the power in the organizations to which we belong, whether they are unions, corporations, churches, or our families. Our recognition of authority is assisted in many ways, from the uniforms of our police and the military to the position-title designations of corporate or government organizations. Our religious organizations provide rigid hierarchies with nearly unquestioned authority concerning the theological and social messages offered to their parishioners, along with the operations of their business. Other power positions, such as those held in clubs, are more democratic and flexible to the needs and wants of those who are part of the organization. We daily come into contact with the use and abuse of power and the subversion of our laws, whether it is the person in the "Nine Items or Less" check-out line at the supermarket with fifteen items in the cart or the congressman who channels millions of dollars to his home district to benefit a few constituents. They all are using power for personal benefit. If their power goes unchallenged, these people will provide benefits for a few at the expense of many. It is also likely that the abuse of power will grow as the person learns there is no penalty associated with the deception.

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The proper use of power in organizations is essential to maintain efficient productivity. Those who are in established positions of power are responsible to use it for the benefit of the organization. They may need to direct and control its use through subordinates at many levels, who may have little or no power in their position but who will attempt to develop it for their own benefit. This book identifies and analyzes various forms of power whether structured as a function of the organization or developed for personal benefit. The final six chapters show how power and management can work together to improve productivity and provide a place for employees to work that encourages them to reach their highest potential. There is also a view of how some managers use their power to denigrate and demean their employees with tragic consequences. There are many illustrations throughout the book of how power is used under different situations. These illustrations and examples come from actual corporate situations. The profiles provide examples of both beneficial and detrimental uses of power and authority. The scenarios have been altered to disguise the identities of corporations or specific individuals, but the situations described are from actual experiences. There are a very few contrived examples used to facilitate understanding to some of the more involved concepts. For these there is no reference made to an organization or specific location. From this book the reader should gain an insight into how individuals with authority and power can and do use their positions to direct and control the employees and functions of an organization. One should also gain a significant understanding of how to manage in a variety of circumstances by using and controlling all of the sources of power that can be generated in an organization. The sources of power that can be found in an organization are identified and presented as "positions of power." By learning where and why the power exists, how it evolves, and how the power positions affect those in the organization, one can ascertain the most efficient way to use it under a variety of management situations.

Acknowledgments During the time period dedicated to writing this volume, executives, educators, professional consultants, and career government managers, who represented many levels in their hierarchies, made direct contributions by relating to me their personal experiences with management power. The sharing of these factual experiences added variety and a broad understanding of the way patterns of management power are developed under different organizational formats. This information also provided the essential validation for the concepts presented. My sincere thanks to fellow workers, competitors, and associates who participated in this project. A large measure of gratitude also goes to my publisher, Eric Valentine, who directed my efforts to concentrate on specific aspects of management power and who inspired the writing of the final chapter.

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PART I The Six Positions of Power in an Organization

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ONE Introduction to Power in an Organization Any group of people large enough to have organized into a company, partnership, or even a club must have developed some type of hierarchy in order to accomplish objectives. The hierarchy designates the division of power and authority within the organization. Most organized groups of a moderate size will have a president, vice president, secretary, and a treasurer named as the officers. The people in these positions will hold authority over the function for which they are responsible as well as the people who work in that area. In larger organizations, a full staff of employees may serve each of the positions of power designated by the hierarchy. In addition to the officers of the group, there may be operational management engaged in manufacturing, administration, legal, marketing, sales, as well as those units responsible for providing resources and services for the organization. The assigning of authority and the distribution of positions of power evolve because of the need to serve and facilitate the operation of the business, club, cooperative, union, government, or whatever the organizational designation. Each of the patterns is based on the common theme of power, and together they comprise the six positions of power used by man-

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The Six Positions of Power

agement and individuals within the structure of a hierarchy. How this power is acquired and used either for the benefit of the group or the individual in the power position is the subject of this book. THE EVOLUTION OF POWER

Looking back in history we can surmise that the first organizations were small families of people. Being the strongest, the dominant male likely managed his family by the power derived from the strength of his arm and the size of his club. He provided himself a position of power that was founded on his personal strength. Later, when families banded together to protect themselves from wild animals and other predatory groups of people, the need for someone to direct the activities of the group led to the position of chief. Again, he probably was the strongest man in the group and could withstand the challenges of other individuals who coveted his status. His strength, and the fear of it, established his position. This example can also be seen in groups of wild animals, such as a pack of wolves, that embrace the hierarchy of position power. In the progress of time, and with the clustering together of many people into settlements, it became necessary for men and women to organize to protect the village. In time, armies were formed, and the hierarchy of authority and power was established from the general down to the private. Before the development of modern-day organizational hierarchies, the use of power was characterized by one-person authority. The owner of a small business represented all of the power in the organization and everyone who worked for him or her recognized it. His or her position was sustained by the economic dependence of most employees, who were in fear of being without work. When the owner's son became old enough to enter the business, the father usually shared his power but reserved the ultimate authority for himself, and in so doing established a hierarchy. Today we have organizations with a variety of management systems and many levels of authority. How position power has evolved from the time of the cave man to today is the next logical consideration. Do managers use position power? Do they use the symbolic "club"? Do they establish their authority with fear? These questions can be answered by recognizing that position power works the same today as it did at the beginning of mankind and will continue to do so whenever it is used. Techniques have been developed to modify the impact of position power and make it more palatable, even useful, yet until the chief puts down his club and learns a better way to manage, raw position power will continue to be with us. One may question the use of position power if other methods of managing can be more effective. The answer is revealed throughout this book, but in short, it is the easiest, most efficient, and most uncomplicated

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5

management system one can use. It can also be the most easily corrupted of the six positions of power. THE DIVISION OF POWER

Hierarchies, bureaucracies, cooperatives, and other organizational structures are created in an attempt to control and focus the power of an organization on its most constructive and efficient application. For many organizations the balance of power is seldom considered, as it is not shared. Branches of government act independently. For businesses, it is uncommon for one section to be independent of another, since each department or group supports the other. Organizations that have strong officers and executives who keep the decision making at their level tend to have weak managers. These organizations reflect dependence upon strong power from the top down and become slow to react to changing conditions. Fear is the motivating force and positive motivation becomes nonexistent. Today there is great sophistication in the power structures for businesses, governmental agencies, political groups, labor unions, the military, religious organizations, and every type of organizational structure one can imagine. In all of these, there is a strong thread of commonalty that generates the energy propelling a manageable unit. This thread is the power used to manage and accomplish the fulfillment of responsibilities. When shared with executives at all levels, power becomes the energy of the organization that can drive it forward to great achievements. When withheld from lowerlevel executives, the lack of power leads to inactivity and loss of spontaneity. The same condition exists when the misuse of power takes place on any level in the organization. Workers who are exposed to too much power are likely to respond much like those who see no evidence of authority in the leadership. Neither are provided the direction and control needed to propel an organization to productive activities. This volume evaluates the application of power in various hierarchical structures as well as the development of power positions not found on any organizational chart but nevertheless found in most organizations. The effects of the uncharted positions of power in the working environment, along with the mitigating effects of this power, are discussed in meaningful detail. The role of power is chronicled with factual examples regarding organizational effectiveness, the generation of power, decision making, developing employee attitudes, preventing and solving problems, the role of management, management styles, and the effects of all this on the productivity of the organization. Examples of how power is used by different organizations are provided from actual cases in industry, government, religion, and other hierarchies. In today's working environment, the use of power may be much more subtle

6

The Six Positions of Power

and affect the organization in ways that management did not intend or would ever expect. THE HIERARCHY

The term "hierarchy" originally was applied to church organization. The "Roman Hierarchy" as applied to the Catholic Church is a reference to the system of church government by priests graded into ranks. The Random House Dictionary of the English Language defines a hierarchy as "any system of persons or things where one is ranked above the other." Every organization in which people are managed must of necessity be a hierarchy. It is the power that managers apply from their positions of authority that makes it possible for them to effectively perform. Without the appropriate use of power, managers of people, functions, resources, or services would not be able to enforce the managing mandates of their jobs. The importance of knowing the kinds of power that impact the working environment is critical to every member of the organization, but especially to managers. This book consists of three parts, with a separate chapter for each of the six positions of power and another dedicated to what is described as power enhancers or boosters. The following are the six positions of power: 1. 2. 3. 4. 5. 6.

Position Power—Supervisory position over others. Provider Power—Based on the need for resources and services. Persuasion Power—Convincing and influential. Participation Power—Group pressure and organization. Presumed Power—Taking power not provided. Policy Power—Circumvention of policies.

There are, of course, other types of power, but from the standpoint of managing most do not provide the ability to use power as a direct tool of management. The power of knowledge is undisputed, yet it is individual and used to serve the one who has the knowledge. The power of loyalty is also part of the response to inspirational leadership. One can find power and strength in using truth, trust, love, honesty, insight, emotion, coercion, association, flattery, fear, pain, dishonesty, beauty, and many other realities. Yet the impact of these attributes on influence is more personal and does not fit into a management situation. The obvious exceptions are fear and coercion, which are strong motivators and may be used by managers at any level in an organization. The manager's authority is formally established by the structure of the organization and is usually outlined in a detailed job description. A table of organization will identify the position, its location in the organizational hi-

Introduction to Power in an Organization

7

erarchy, and in some cases the extent of its authority and responsibilities. An individual job description should list the specific actions, functions, and limitations ascribed to the one who holds the position. How a manager does his or her job, and whether or not authority and power are used, is determined by the abilities and proclivities of the one occupying the position. The readers of this volume will be informed how those in the hierarchy use power, authority, influence, leadership, and the five power boosters that enhance the six basic positions of power. This information is applied universally to managing within a business hierarchy, government bureaucracy, religious organization, trade union, cooperative, or structure of any enterprise that has more than one level of authority. Managers must know how power is organizationally structured, how and who uses it, and how it can be pursued for personal gain, even by those who are not a part of the management structure. Probably the most easily understood modern hierarchy is that established by military organizations. In the military, each rank is named and identified by special emblems on the uniforms that are visible to all in the organization. The military also provides insignia showing the type of unit in which the person is placed, the individual's medals for outstanding accomplishments, the areas where service took place, and the time spent in the military. All these designations, and many others, immediately provide the observer a significant amount of information about an individual without a word spoken. Military organizations are unique to all other hierarchies in the fact that the only power essential to manage is position power. It does not always work that way, but nevertheless that is the hierarchical intention of the military format. The higher the rank, the greater the power. The ability to successfully use the power of one's position or rank is another matter entirely and may call for the skillful application of more subtle types of power. THE POWER ENHANCERS

This volume is a study of managing all of the power in an organization that can affect the manager's span of authority. A thorough understanding of how it may be acquired and applied to a variety of situations provides the reader with the basic knowledge of both managing and using power in any organizational structure. The word "power" is used as a noun with great frequency throughout the text. It is unfortunate that there are not more appropriate words that can be used as alternatives. "Authority" is established by the use of power. "Influence" is derived from the perceived power one represents. "Strength" may come from power, but in a hierarchy the strength of a manager may benefit only a few. The manager's vested power, and that which is recognized as the authority of one's position, represent real and present forces that can be

8

The Six Positions of Power

used to facilitate or frustrate the function of managing. In every situation, managing cannot take place without using some form of power or authority. To make the use of power more effective, the following power enhancers or boosters are available to managers who learn how to use them: 1. 2. 3. 4. 5.

Communication—To superiors, subordinates, and peers. Facilitation—Of employee's work and capabilities. Motivation—For employees, teams, and providers. Evaluation—Of problems, progress, and potentials. Support—Of the enterprise, subordinates, and tasks.

The proper use of the power boosters is critical in almost every management situation. They are referred to throughout the book in reference to a manager's use of power and are covered in detail in Chapters 8 and 10. DIRECTING A N D CONTROLLING POWER

To exercise one's authority, control must be established over all of the power sources that influence the manager's responsibilities. The primary actions for which all managers are held accountable are found in the diverse application of two words: directing and controlling. In this book three distinct but integrated areas of managing are recognized: the management of people, of functions, and of resources. The most difficult of these to successfully accomplish is the management of people. Managing functions, such as a legal department, an accounting section, or an advertising group, is primarily concerned with the productivity of the area managed rather than the day-to-day people-management concerns found in sales or production areas. Managing either people or the functions of an organization relies initially on the action of providing directions. The followup control activities apply as an ongoing review. Managing the allocation of resources, or controlling the availability of services, has less to do with directing the actions of people than with the functions of an organization. The allocation of resources requires that managers exercise a significant amount of control by analyzing how well those with this authority serve as productive providers. It is here that we find the application of provider power. How fairly it is used determines how well the organization is served. An important section of this volume deals with the differences between leadership and managership. Successful managers are evaluated by their accomplishments. Leaders are recognized by how their influential persuasiveness promotes loyalty and dedication among their followers. To varying degrees, both leaders and managers are required to accomplish the job of managing while providing the most successful use of power. Since many

Introduction to Power in an Organization

9

managers do not develop leadership qualities it is difficult for them to embrace management styles that go beyond position power. Readers should be alert for the specific differences between leadership and managing and how power is used in support of each. The necessity for managers to effectively control all of the power that affects their working environment is a theme that runs through the book. Managers must extend the scope of their influence beyond their area of direct authority if they are to maintain control within the workplace for which they are responsible. THE SIX POSITIONS OF POWER

The first part of the book is comprised of eight chapters, including this introduction. The next six chapters describe the six positions of power that make up the patterns of power that can be used by management. The final chapter in the first part of the book involves the use of the five basic power boosters that enable the use of power to be more effective. In Part II, "The Power Structure, the Manager, and Management," the interrelationship between the structure of the organization, the manager's power, and the role of management is viewed as the environment in which power is used to further the objectives of the organization. The six concluding chapters comprise Part III, "Using Power to Manage." These chapters bring together all of the important tenets of the book and demonstrate how they may be applied to a variety of management situations that can be found in most organizations. The important topics of managing people and the ability to develop and use true leadership are covered in great detail. This part of the book also delves into the misuse of power and authority. The examples noted involve the destructive impact of power on individuals and organizations both large and small. I have not dealt with what is commonly termed "company politics." It is generally recognized that in most organizations politics do exist to some extent. For the most part, the use of one's political power is not a tool of managing. Political influence with those in power positions can bring favor to some who have no power or authority of their own, but that favor is seldom sufficient to be effective in managing others. The most beneficial use of power is in its application to facilitating the productivity of the organization. When properly directed, all six of the power positions presented here can lead to greater productivity. Achieving the greatest benefits from the use of power and authority in a management position is presented in this final section of the book. The final chapter provides the reader a first-person insight into how destructive the pathological use of power can become. The actual cases detailed in this chapter show the sickness one can contract from the unchecked

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The Six Positions of Power

use of power exploited for one's own benefit. Those in responsible and trusted positions who disregard how their misuse of power affects the lives of others leave a trail of financial ruin, anguish, and destruction that challenges one's imagination. SUMMARY

An organization must have a structure and positions of authority in order to accomplish the tasks and objectives it designates as its business. The development of some type of hierarchy is required to establish the positions of power and identify the responsibilities of those who will use it to manage. The development and use of power will evolve in order to satisfy the organizational needs (sometimes also the personal needs) of the one with a position of power. This book identifies how a power system is organized, who uses it, and how it is most productively applied for the benefit of the organization or misused by managers in search of ego satisfaction.

TWO Position Power The proper use of position power can lead to the most efficient type of management in almost any kind of organization. It can also be the most destructive. Managers should never use their power to exploit subordinates and by this means further their own ambitions. Successful managers will nurture and develop subordinates who are capable and productive. This cannot be accomplished by people who feel exploited. The use of one's authority is considered appropriate when it benefits the organization or its employees. Some executives rationalize, "If it's good for me, it's good for the company." Managing people or functions, controlling the availability of resources and services, or even enforcing the organization's policies represent the presence of authority that lends itself to position power. Every management position possesses the potential to use some type of power. Thus one may assume that position power can be used by any manager. Those who manage the supply and availability of services can exert their power by either providing benefits to the best of their ability, or they can withhold, prioritize, or provide their service with prejudice. The same can be said for those who manage resources, such as budgets, or the availability of manpower. These managers are "providers." Therefore, the power they represent is treated in this book as provider power rather than position

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The Six Positions of Power

power. The special power that can be exercised by those who are providers is distinctively different from any other position of power in the hierarchy. The impact of provider power in a management situation is covered in detail in Chapter 3. THE DESIGNATION OF POSITION POWER

It is important for the reader to understand that the term "position power," as applied in this volume, is attributed only to managers who have authority over other people. Position-power managers have the option, and perhaps even the obligation, to incorporate into their management activities all five of the power boosters: communicating, facilitating, motivating, evaluating, and supporting. Managers who are providers can only communicate, facilitate, and support those activities they serve. The effective influence of managers with position power is enhanced by their ability to motivate subordinates and evaluate their progress. Providers motivate those they serve only by their good services. POWER OVER SUBORDINATES

Subordinate employees are often intimidated by managers who project a self-important attitude. Often this type of manager uses fear to exert power. Conversely, another in the same type of working environment can provide benefits available from an environment managed by one who is interested in the success of his or her fellow employees. Since position-power managers use their authority to direct and control people, they have a significant effect on productivity. This influence may either elevate or diminish the performance of subordinates. Power exercised to elevate the importance of the manager will usually suppress productivity. Those who use their power to control the working environment for the benefit of all who work there will not only reap the benefits of greater productivity, but will also elevate the value of every employee as well as their own contribution. Resource providers can ensure the benefits of their position without the need to exercise power. Their authority is intended to have only an indirect effect on the functions of the managers and employees they serve. However, when they use their provider power, the effect can be the same as that of a position-power manager who either enhances or denigrates the value of their services and their position. The use of power to facilitate productivity does not go unnoticed by other managers, especially those in uppermanagement positions. As previously stated, position power is identified as a top-down relationship between a supervisor and subordinates. Those with supervisory positions exercise power over those below them in the hierarchy justified only

Position Power

13

by the authority of the position. Many managers are unaware that there are other ways to deal with employees. The use of one's authority surely is the least complicated style of management. When a manager expects subordinates to do as they are instructed, with no questions asked, the initiative of people is nearly eliminated. In most situations where the manager uses topdown power the results will not be as satisfactory as expected. In a few instances, where the work is highly repetitive or must be performed in precise detail without deviation, unadorned position power can be a productive management style. THE NEW MANAGER'S USE OF POSITION POWER

When an employee is new in a supervisory position, the first power that he or she will try to use is often position power. If responsible for services or the allocation of resources, more than likely the manager will have few people on his or her staff. Nevertheless, a secretary or secretarial services will be available. "Ms. Smith, will you please place a call to Ray Jackson for me?" is an order using position power, but since it is not used for selfish purposes and Ms. Smith is a secretary, the order is taken as a request with a positive and appropriate meaning. First-time managers of resources or services are less inclined to use position power than those who have management responsibilities over other people. Those who manage people have less time for thoughtful consideration in response to employee's questions, whereas managers of resources and services can be more reflective. In either situation, one cannot manage without using some kind of power to initiate action. Again, it should be clear that all managers have power in the authority of their position. Since they must direct and control the activities for which they are responsible, it is appropriate for them to use this power to ensure progress. Unfortunately, unbridled pressure is not appropriate in most situations. The dictatorial use of one's authority discourages employees from taking independent action that they may be more inclined to initiate in a more encouraging working environment. With the freedom to be creative and innovative, employees can make significant contributions to the company. New managers should take notice of suggestions and independent thinking to determine whether there is spontaneity emanating from the workforce. If there is none, look to using less top-down position power. In its place, ask for subordinates to contribute their ideas as frequently as appropriate. Example of Too Much Top-Down Power

A midwest manufacturing company was in the process of planning to introduce a new, superior pesticide for the control of insects in food pro-

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The Six Positions of Power

cessing plants, restaurants, hospitals, and other public places. It was required by federal regulations that the new product be applied only by licensed pest-control operators (PCO). A new general manager, who was very experienced in the overall use of pesticides, headed up this group even though he had no experience with commercial pest control in public buildings. The new manager, following the knowledge of his experience, decided that a high-quality, very detailed, technical brochure should be produced to inform the pest-control operators how to apply the product according to the regulations established by the Environmental Protection Agency (EPA). This was the standard method of providing such information to the agricultural community and those who served it. In addition, a technical brochure would document for the EPA that the company had thoroughly informed all potential users of the proper method of application. The brochure would also include safety precautions, clean-up details, and container disposal requirements. The general manager called the division's director of technical services into his office and outlined what he wanted. Progress on the new informative brochure was very slow, with many questions from the technical director to the new general manager concerning the use and applicability of various sections. After several weeks the new manager lost patience and called the technical director into his office for a progress report and a "showdown" on the project. He demanded to know why the work was taking so long and what was so difficult about it. What he learned was a revelation. PCOs do not operate like agricultural pesticide applicators or farmers. They start in their jobs untrained, with no experience in the field, and are paid low wages for the work they do. The operators are trained by their employer in a classroom environment, which almost always includes visual presentation of what they need to know. Slide presentations and videocassettes are the backbone for providing training information. The trainee will seldom be sufficiently educated to read and understand a technical brochure. New trainee operators participate in onthe-job training with an experienced operator until they have reached the level of proficiency to pass a licensing examination. When the new general manager realized he was not sufficiently grounded in knowledge for the training of pest-control operators, he turned the project over to the technical director with full authority and support to produce a training program appropriate for the task. The result was an excellent film, on-the-job reference aids, and follow-up classroom reinforcement programs. The program earned high recognition by the PCO industry and a national award for excellence in training. The new product launch was one of the most successful ever experienced in the industry. When the general manager realized that it was the technical director's skillful use of power that would get the job done, and not his, he became a competent manager. When position power was used as a facilitating force, it became enabling and promoted innovation. Using unbending position power

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can provide short-term ego-building euphoria, but it cannot compare to the accolades of success. THE POWER SURGE

Consider this example of position power in action provided by a company heavily involved in research and development. A skilled research scientist is promoted to supervise the activities of a laboratory and the twenty people who work there. His confidence to succeed is buoyed by the excellent ratings he received during his participation in the company's training programs. As the chairman of a joint research committee, his excellent organizational abilities stand out and attract the attention of the personnel department. It is expected that this highly intelligent scientist will perform well in a management position. Although as a new manager he will report to the director of research and development, he has a high degree of autonomy in his laboratory. About the fourth week into his new job, one of the scientists in the lab came to him with a request. "I have just located the right person to hire as a technician for my project. The additional help will significantly cut development time and the budget for this position has already been approved. With your agreement," he concluded, "I would like to make an offer to her early next week." The adrenaline surge the new manager felt from holding power over a subordinate was almost overwhelming. This was his first opportunity to use the authority of his position to control the outcome of a situation as he wanted. The first thought, "I am in control," overpowered his judgment as to what was best for the work of the laboratory. "I believe this step needs some further thought," he replied. "Ask your job applicant to be patient for another two weeks, then come back to me for a final decision." The scientist in this recital told his story to me during a management training seminar I was presenting for his employer. It was clear that he was yet untrained and inexperienced in using the power of his position. Fortunately his intellect took over from his emotions and he came to realize that managing was significantly different from what he had envisioned. What should have been his reply to the request? As a manager, his responsibility is to encourage the greatest possible productivity from his group. A more appropriate reply would be, "Tell me about your applicant. What has she done, and why do you feel she is the best person for the job? If you really believe she is outstanding, I would like to interview her myself. Can you ask her to come in for talk?" The manager remains in control of the situation and suggests a course of action, offers encouragement, and even offers to share the risk in the decision-making process. All these considerations are appropriate for a manager who is concerned with the well-being

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The Six Positions of Power

of his employees as well as the fulfillment of his responsibilities. The laboratory manager enrolled in several carefully selected management courses over the period of the next year. This experience enabled him to blend his organizational abilities with empathy for his subordinates and an understanding of the dynamics required in a working environment. He became a manager that his employees respected, even though they continued to recognize that his actions reflect his authority. In order to improve his relationship with those in the laboratory, the plan was to attempt to incorporate the five basic power enhancers into his behavior. He expressed a lack of confidence in using motivation and to a lessor extent even communication. For this manager, being a good facilitator, a proficient evaluator, and a reliable supporter was sufficient to encourage other scientists to excel under his management. The new lab manager commented that he was not convinced of the necessity to frequently communicate his ideas and plans with others in the laboratory. His fellow scientists seemed to agree and accept this without concern. Neither did he care whether they thought him to be motivational, as long as his actions were seen as fair and represented the interest of their group. The idea that motivational stimulation was unnecessary in furthering scientific discovery was commonly held by those in the laboratory. Every working environment has its special uniqueness. In this situation, the use of leadership by example and insistence upon high standards of performance was much more important to facilitate excellent work than looking for motivational stimuli. Lesson One: Managers who are new and inexperienced will tend to misuse position power. THE EXPERIENCED MANAGER'S USE OF POSITION POWER

Those who have been in management positions for several years have come to learn that using the authority of one's position to control the activities of subordinates is not the only way, or even the best way, to get results. Experienced managers who use position power as their primary management style know there is a cost that accompanies its use. The price one pays for expedience can be acceptable only in the short term. When an acceptable reason is communicated to those subjected to significant pressure, they will be motivated to perform without conflict. When people know why they are being asked to put forth extra effort, they will more willingly comply. This is the use of communication as a power booster. Subordinates must feel that the manager is their champion and will extend his or her authority to protect employees as well as to project them into greater opportunities and rewarding work experiences. Competent managers using position power will diligently seek out ways

Position Power

17

to use the five power enhancers. When they effectively communicate with those over whom they have authority, the employees will believe those in charge care about their opinions and will begin to make creative suggestions. The results obtained by facilitating the work of subordinates significantly increases the perception that productivity and job excellence is not only recognized, but encouraged. Managers who provide motivation will stimulate innovation and the feeling of self-worth in their employees. When a manager takes the time to evaluate the progress of an employee's efforts, that person is encouraged to initiate a self-review and critical examination of his or her work. Position-power managers, who can effectively employ these four elements of management, will significantly subdue the negative aspects of the use of power. Employees who feel that they have their manager's support are more inclined to put forth the effort to improve productivity and suppress conflict in the working environment. These managerial actions encourage subordinates to apply their abilities with enthusiasm. Although some managers will not give the use of power as their primary management style, whenever possible they need to build a more flexible and open relationship with employees. Using the five power enhancers can greatly improve the position-power manager's relationship with subordinates. Managers of long standing, who are entrenched in a company, know how to use the power of their position quite effectively. These power managers will be well thought of by their employees. It is noteworthy that they also tend to have people working for them who are less aggressive than would be found under the management of those who do not emphasize the power of their position. This can be understood when we consider that aggressive people seek domination, not confrontation. Others who are aggressive will avoid working for power managers. Often this type of manager has an independent mind-set and will seldom be told what to do. Those who are effective, even though they use a top-down power style of managing, will keep an open mind and be reasonably accessible to receiving suggestions. Sales Manager Example

The regional sales manager of an industrial chemicals company informed upper management that he would not accept either advancement or transfer. The reason given was a long-time family involvement in his community. He was a very strong manager and several of the employees he trained went on to responsible management positions in the company. This man loved his job and the authority it gave him as the company's top regional manager. He performed very effectively, using his power with consideration and understanding. This effective manager saw his job as giving strong direction to subordinates while being fairly flexible in aspects of control. His employees knew, without question, what was expected of them, yet within certain parameters they felt how they got the work done was up to their own discre-

18

The Six Positions of Power

tion. Andy Franz, who was an exceptional regional sales manager, was exactly where he wanted to be and could manage with a high degree of productivity, competence, and job-related enjoyment. Lesson Two: Experienced position-power managers should be sufficiently flexible to incorporate the use of the five power boosters and leadership into their actions to reduce conflict, promote cooperation, and increase productivity.

Those who supervise experienced managers must understand that should independent people resist or decline a promotion, they are not in a state of rebellion. Their action is more often an expression of a preferred option, and they may leave the company before yielding to a superior's authority. Strong managers seldom believe that they have no choice concerning what they can or cannot do. They are also inclined to allow subordinates to make some independent choices in their work because they are not fearful of the consequences. Highly competent managers can make their power felt both upward and downward in the hierarchy. INCOMPETENT MANAGERS AND POSITION POWER

The manager who has been in the same position for many years may have been passed over for advancement at least once and more than likely several times. L. J. Peter, in his book The Peter Principal, would have us believe, "In a hierarchy, every employee tends to raise to his level of incompetence." As evidenced by an extraordinary run of twenty-five printings of his book between February 1969 and March 1970, it is logical to believe his opinion was shared by many. Fortunately, there have been many changes in management culture over the past thirty years. It is no longer thought an affront to the company for a manager to turn down advancement or transfer to a better position at a new location. Today's employees are more independent and a lack of advancement does not necessarily mean that the person has been passed over for promotion. In many cases employees enjoy what they are doing and do not want to change; also, with two-career families a move to another location raises a consideration of the impact on both working partners. In addition, the widespread use of computers and Internet communications may make moot the question of location relative to performing one's job. Such employees do not go into the office on a regular basis, and for a part of the week do their work at home. Those who actively seek advancement but are passed over, know that they are at the end of their promotion potential with the company and there-

Position Power

19

fore will not often continue to strive for improvement. Managers who have been passed over must be closely observed to determine if they have been promoted beyond their level of competence. Many in this situation are thankful that they do not have to compete with those who demonstrate superior management capabilities. They are happy to be in their niche and will strive to stay there without attracting too much attention either by their incompetence or their willingness to accept minimal productivity from subordinates. When managers realize they are going no further up the hierarchy of the organization, they seem to gravitate to one of two opposing positions of management. Some will feel it necessary to control everything within their limited sphere of influence, while others will try to become invisible. Strong managers will attempt to protect what they can control and will emphasize their authority by closely overseeing everything for which they are responsible. Others will avoid the visibility of management action, if at all possible, and manage by doing nothing that would draw attention to the way they handle or mishandle their responsibilities. They will allow presumed power and participation power, or some combination of both, to be exercised by their subordinates. Employees in this working environment will replace the manager's reluctance to use authority by supplying their own. One must remember that all management action requires the use of power and authority. Those who are reluctant to use it will allow those beneath them to exert the leadership and/or power necessary to keep the work moving. This phenomenon is evident in the following example. A manager of technical services was raised to the position of a divisional vice president. He was ill-prepared to perform the intellectual duties of his new job. His subordinates knew that he was less than satisfactory as a manager in his previous technical services position. Fortunately for him, during his tenure . as manager of the technical service group all six people over whom he held authority were very competent self-motivated achievers. He was promoted to vice president of the division even though he had been passed over to fill either of the two marketing director's jobs that would now report to him. This very large company in the medical field was renowned as being well managed and felt it was important for high-level managers to have earned the title of doctor. This overshadowed the reality that he did not have the ability to function at the job level to which he was ascending. His performance was predictable. He allowed those under his management to intimidate him and act independently in order to fill the void of his indecisiveness and lack of ability to use the authority of his position. On one occasion the two marketing directors met with the new vice president seeking a decision that was clearly his to make. He was asked to decide which of the two marketing groups would undertake the introduction of a new product that was soon to become available. Since the new product was very important and could fit equally well into either marketing area, it was

20

The Six Positions of Power

logical to think the controlling authority should decide which direction to go. Predictably, he deferred to them by saying, "You two know this area better than I, so whatever you decide I will go along with it." This man was clearly at or above his highest level of competence. Lesson Three: Managers who are marginally effective, will rely on their power to defend their position, or they will fail to use any power at all in fear of making the wrong decision. REQUIRED POSITION POWER

The use of position power is not limited to those who lack the skill or experience to manage in any other way. Even the most resourceful managers will, at times, find it necessary to act with authority. There are occasions when even those who prefer not to give top-down direction or direct orders to subordinates will find it necessary to do so. When a manager has been given specific instructions to take action, carry out an order, or enforce a directive, it is usually necessary and prudent to take the most expedient action to get the job done. In general, when a superior manager has given directions to take action, it is appropriate to carry out the action as directed, using whatever power is needed. Employees who are accustomed to a manager who seldom uses position power will respond with alacrity and without conflict when power is occasionally used, provided they understand the urgency of the situation. Knowing why provides the necessary motivation to act without conflict or animosity. For the sake of efficiency, some organizations are structured to favor the use of position power. The chief surgeon in an operating room is expected to be in charge and use his authority. Captains of ships and airplanes, or coaches in professional sports, will be expected to use their personal positions of power in the performance of their duties. In a like manner, managers who are in charge of a group of inexperienced workers will frequently find it necessary to give specific directions and check the anticipated results of each worker to ensure they are properly followed. Keep in mind that providing direction and maintaining control of the work process is the primary task of a manager. These two activities are most easily performed by the use of authority and power. When the quality of the work is more critical than productivity, position power provides the most effective use of one's authority. Some very successful managers prefer to use position power without exception because they want things done their way. There is no question concerning the efficiency of top-down direction. As previously established, position power is the management style of the military, and also the most often used power style in many religious organizations. The managers, generals, bishops,

Position Power

21

and others in these positions wish to make it known that they are the controlling authority. Their management style, supported by the position they hold in the organizational hierarchy, mandate that their orders are followed. Those who want their orders carried out specifically as directed will frequently facilitate the action to be sure it is accomplished as requested. The infantry sergeant who orders his troops to march ten miles with full equipment and without a break may provide a good meal before the march and extra water while in progress. He will also be at the head of the march column and offer an extended rest and recreational incentive at the end. When salaried employees are asked to put in a few extra hours to complete a critical report, the manager may bring in additional secretarial help, establish that he or she is taking everyone to dinner when the report is finished, participate in the work at hand, and articulate his or her appreciation for the extra effort before it is made. Managers who demonstrate their consideration for employees can ask for extraordinary effort and receive it with enthusiasm. They also can use forceful position power and not create conflict. When managers of this type make it known what they want, employees know it is the only voice of authority. They know by experience that when the manager uses power, he or she is also capable of making sure it is acceptable. Lesson Four: When the work must be done precisely as directed without comment or consultation, the use of strong position power is appropriate and productive. Managers who have been given specific instructions to initiate action may use the same direct power to see that the instructions are carried out. THE PHYSICAL SYMBOLS OF POSITION POWER

It is unfortunate, but there are organizations so rigidly structured in their hierarchy that they include the physical symbols of position power at nearly every job level. Most would agree that the president of a company may need a big office with expensive furniture and thick carpets. He or she represents the strength, stability, and character of the company. The ambiance of the president's office establishes the impression of success. How far down the ladder of hierarchy these symbols of power and superiority can be effectively used without also encouraging unproductive reactions is another question. There are companies that designate the number of square feet of space in the offices for each level of management. They also specify the number and size of the pictures allowed in an office, the type of desk, number of side chairs and lamps, type of carpeting, if any, and how many walls may be paneled or papered if that is allowed. One company provides chauffeured limousines to pick up and deliver

22

The Six Positions of Power

executives to the airport when they travel, providing that they have the title of vice president or higher in the hierarchy. On one occasion a vice president of this company was making a trip with his immediate subordinate, a marketing director, who lived within two blocks of his residence. Since the airport was over thirty miles away and no one else was riding with the vice president, the marketing director assumed he would be picked up and taken to the airport. The day before the trip he was informed by the vice president that, in his opinion, policy would not permit him to provide transportation for anyone who was not entitled to receive it on their own authority. The marketing director had to leave thirty minutes earlier than the vice president in order to park his car at the airport and meet him at the executive lounge before the flight. This is a true story, which clearly illustrates how far an executive's position power can be carried, even when it makes no sense whatsoever. Carrying the emblems of authority or extending executive privilege to this extreme encourages pettiness, minimizes individuality, and draws attention away from the value of productivity as the most significant measurement of one's success. The segregation of privileges and benefits also creates an artificial executive class in the ranks of management. Feelings of resentment are the consequence of such symbols of distinction. If managers are paid well for the ability to inspire others to be productive in their work, they should also be able to afford their own symbols of success. Yet it would be naive to believe there is no motivational impact created by providing privileges. Executives love them and can be motivated to do extraordinary things just to "earn" such perks as an executive parking permit. The problem comes when the incentives are too conspicuous and carried to extremes. There is no doubt that those who receive these benefits along with the prestige and special attention usually enjoy them to the fullest. Some managers find these amenities a strong motivating factor to strive for promotion. When the signs of success become so important as to require a wall to be moved one foot (which actually occurred) in order to provide the proscribed number of square feet in a manager's office, one would concur that the policy is taken too far. Managers should have reasonable privileges. They should first and foremost be paid well for the work they do. In addition, the necessary space and office equipment required to aid in performing the duties of their position should be provided. The "executive suite" may have its place at some level in the organization, but for every managerial level to be recognized by observable distinctions of rank is beyond reason. Only for the military is it appropriate for one's rank to be instantly distinguishable. It is usually counterproductive to carry the physical symbols of one's position to the point of having the amenities of the office identified with the manager's exact position in the hierarchy. This is particularly true when the manager seldom has visitors from outside the corporation.

Position Power

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MANAGING THE POSITION-POWER MANAGER

When one is provided with position power, it is expected that it will be used. Logic would also tell us that the one who receives this power should be trained in the way it can be best put into action. Unfortunately, there are few programs available that train managers to effectively use the power and authority of their positions. Considerable attention is placed on teaching them how to do their work, but little or no attention is given to training how to properly use authority. It is only too true that most new managers are more intrigued with the power of their position than the other activities essential for their success. These same managers will learn how to use management information systems, apply credit policy, interact with labor, interface with standing committees, cooperate with other managers, and be informed concerning the niceties of interdepartmental relations. It is assumed that the manager will be proficient in the day-to-day endeavors involving his or her area of expertise. Marketing managers will be well trained in the disciplines of marketing. Administrative managers must be capable administrators, and those who manage functions relating to finance, manufacturing, legal, sales, or any other corporate group must have the ability to perform the responsibilities of their positions. Only after one has established credibility for performance in the position held can they begin to establish and use their authority. MANAGING THE EFFECT OF TOP-DOWN POSITION POWER

The effect of position power is determined by how it is used, how often it is put into action, and how inflexible the position-power mandate is presented. For top-down management to be effective, the appropriate use of power is essential. The energy that managers project in using their position power is quite individual and selective. It is not required for a manager to make his or her actions a boss and employee relationship in order to establish authority. More can be accomplished with a "We have a job to do," attitude than a "Here is what I want you to do," order to the employee. Logic, reason, trust, support, and an understanding of each other's job responsibilities make up the necessary considerations for a productive relationship between a boss and his or her subordinates. The overpowering use of authority is neither necessary nor productive. The effect one wants to establish in subordinates is to act with responsibility rather than reacting without choice. When there is a need for high quality in the work product rather than a high rate of production, a more forceful (or more watchful management) involvement is acceptable. At Intel, during the production of computer chips,

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The Six Positions of Power

one would assume the quality of production to be the top priority. For this reason, Intel managers closely monitor the care that goes into the way one does his or her job. At a sugar refinery, where a fixed process, dedicated equipment, and frequent sampling ensure quality of the product, the management emphasis will be on producing a maximum number of units per shift. Close and frequent supervision of the people involved is not as essential in the sugar refining process as in making quality computer chips. Supervising a top-down manager is not an easy job. There are many variables and the personal energy or force used by the manager greatly influences the acceptability of his or her use of power. In order to make the supervision of these forceful people more analytical, it is helpful to use a structured process that can be easily understood and implemented as needed. The process suggested is one that has been used successfully in business organizations, but should be adaptable to almost any organizational structure. It is known as the four EPIC steps to managing position power: Step One Step Two Step Three Step Four

Evaluation of the manager's actions Planning for improvement if needed Implementation of the improvement plan Confirmation of the results or progress

When it is considered necessary to initiate the four EPIC steps, this action should be undertaken with measured caution and realistic expectations. Managers who exclusively use position power understand the use of authority and are keenly aware when it is directed at them. In many cases the one involved will know that he or she will frequently use too much force or become overbearing with subordinates. There is every reason to believe these people take pleasure from the fact that they are in a position to be forceful. With this in mind, the controlling supervisor must first consider whether there is a realistic expectation that the manager to be evaluated has the ability to make constructive changes. In most situations, when one is informed that his or her group has a substandard performance record in one or several areas, the evaluation process will be welcomed or at least tolerated without conflict. Step One: Evaluation

The supervising manager must first make a fair and unbiased appraisal of how the subordinate manager is using his or her power along with its effect. Since position power is used only with people, the reactions of employees will provide an accurate way of determining whether or not changes should be considered. That is to say, if the manager's employees are not forthcoming, are highly reluctant to be innovative, lack creativity, and never provide

Position Power

25

positive comments in support of their boss, one would expect too much topdown force from the manager. It is usually best for the evaluation to be made with the cooperation of the one being evaluated. A thorough determination is impossible without the manager involved being aware that it is taking place. For this reason the manager's help in understanding why specific aspects of his or her work seem to need attention is essential. The manager should be told that his or her employees may be asked to provide information about how they feel toward the manner in which the company (the organization) treats its employees. No questions will be asked that in any way relate only to the manager. Keep in mind that a substandard performance has dictated the need for action. The standard checkpoints that a supervising manager should use to determine the effects of a subordinate manager's use of power are these: (1) Are employees convivial or in conflict? (2) What is the level of morale (motivation)? (3) Do employees feel trust or distrust? (4) Is there stability or high employee turnover? (5) Can one find creativity and innovation? (6) What is the level of productivity? These points comprise most of what goes into the evaluation. There may also be concerns about prejudice, fairness, honesty, and alcohol or drug abuse that may not be revealed in the evaluation of how power is used. Rigid or overbearing behavior directed at specific employees and flexibility in dealing with others may be the result of personal prejudice. These situations will require specific individual attention. The reaction of employees to a manager's use of power will vary from person to person, but usually only by the degree of their concern. One employee may think the working environment is highly oppressive, while another believes it is only moderately so. Nevertheless, they will both agree that it is an oppressive environment. During the evaluation process, the supervising manager will determine if employees are experiencing conflict, either within the group or with the manager. Conflict and distrust are often the result of unfairness by the manager or too much pressure used in the control of common activities where little or none is needed. If only a few employees express concerns with conflict or trust, there may be some favoritism involved. If there is a general lack of enthusiasm for the manager's actions, or if employee morale is low, one can assume the problem is real and needs correcting. A high rate of turnover in the group indicates a long-term and systemic problem. The first information that must be developed is to learn whether employees leave because they have a better opportunity actually available to them, or because they want out of the troubled environment. Do they leave of their own volition or are they fired? It is interesting to note that most position-power managers who use a high degree of coercion with their employees are rarely prone to fire them. These managers believe that they can correct anything by using sufficient dominance, and employees who have problems can be brought under control through fear. The one exception is the employee who is a chronic under-

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The Six Positions of Power

performer. Power managers will not tolerate this person on their team for very long. They do not have the patience to facilitate progress with employees who are not committed. The manager who uses too much and too frequent pressure in dealing with subordinates is usually negligent in the use of one or more of the five power enhancers. The evaluation process must include a review of the manager's ability to communicate, facilitate, motivate, evaluate, and support those who are in his or her charge. Whether innovation or creativity by employees is evident goes hand in hand with the manager's ability to encourage independent action. A manager who does not motivate employees by using some or all of the power boosters will not find innovation and creativity. One of the most easily determined measurements of a manager's inappropriate use of power is substandard performance by the group. No direct questions about the manager need to be made in order to secure this information. The statistical facts related to a group's performance will be readily available from standard company records. Step Two: Planning for Improvement

Managers who have cooperated in the evaluation process will already know that the next step will be to create a plan intended to improve and prepare him or her for a more effective performance. Each potential or actual problem should be reviewed, making specific reference to the evaluation findings. An open communication dialogue between the person in question and the one doing the evaluation is essential if the information developed is to be useful. In most situations managers will not be evaluated unless there is evidence that a significant problem exists. Clearly defining the problem during the evaluation leads to Step Two. The improvement plan should be prepared by the offending manager under the direction of his or her supervisor. When subordinate managers prepare their own plans for self-improvement they are much more likely to make essential adjustments that will lead to meaningful changes. The options for improvement will be identified in the evaluation process. Recommendations for creating beneficial change will include all of the "how-to" actions that make it possible for the manager to improve. It is important to gain agreement between the manager and the evaluator concerning the findings of the evaluation and acceptance of what needs to be changed. Unless the problem manager has a significant part in the plan preparation, it will more than likely go unused or be received with doubt of its objectivity. When position-power managers are aware that they have problems with employees, one would logically think that they would do something about it. This is not necessarily the case with those who choose to use their top-down power. It is not uncommon for this type of manager to

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27

enjoy the use of power. They believe that if employees have a problem they should learn to make some accommodations. For position-power managers it is critical to realize the effect of their actions, especially when negative results are identified in an evaluation. When these managers are made aware of the problems they are causing and do nothing to change, they must expect that their boss will initiate corrective measures. The specific remedial plan will be unique to the person involved. Yet there are areas of commonalty for almost all improvement plans. In this step, the supervisor determines what should be done to help the one who is being evaluated. Those who cause problems and do nothing to change, are not likely to voluntarily provide a solution. Planning should be done with a free exchange of ideas between the supervisor and the offending manager, ending in an agreement for the proposed changes and what is to be accomplished. Managers who are accustomed to being in control are often difficult to convince that they are in the wrong. The excessive use of position power is quite common, but it is uncommon for these managers to voluntarily make significant changes in the way they manage. Nevertheless, for those who misuse position power it is essential for them to express how they think they can initiate improvements. Once committed to the process, they will often make very helpful suggestions about how their problems may be corrected. By making these suggestions, they maintain a degree of control in what they will do. Their willingness to make changes is vital to success. With a participative effort, a course of action can be crafted with the potential to improve the manager's effectiveness. Position-power managers with problem employees must make frequent supervisory follow-up to put into place effective and lasting changes. Since they are not easily convinced that the problems are significant, they tend not to follow directions with sufficient commitment to make the plan for change work. Top-down managers do not want to lose control or even allow the appearance of losing it. In order to provide both parties with a general checklist for development of an improvement plan, the following outline is offered as a starting place: 1. 2. 3. 4.

List and gain agreement that the problems noted need to be corrected. Prioritize and select the areas that have the most urgent need for improvement. For each problem noted, propose the how-to actions expected to bring success. With each how-to action, identify the expected result and the benefit it will bring to the manager and those under his or her supervision.

This outline can be used independently by both the controlling manager and the one who must make changes. After reconciling what needs to be done, the details of how the plan is to be implemented will follow.

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The Six Positions of Power Step Three: Implementation of the Plan

When a plan has been constructed and mutually agreed upon by both managers, it should be written in detail, with a timetable for the improvements to be carried out. As each point in the outline is put into effect, a review should take place to be sure it is properly executed. Proper implementation is crucial for success. Many position-power managers will be tempted to use their authority and tell subordinates what to do and how to do it rather than giving them good reasons (motivation) for the action and provide the necessary support to accomplish the expected results. Since implementation of the plan will usually require problem managers to deviate from their normal management style, the supervising manager will need to stay in close contact to be sure the process stays on track. Evaluation and Improvement Plan Example

Step One and Step Two are consolidated in this example. In addition, the example selectively identifies the problems to simplify how the process works. The manager in question is one of five district sales managers employed by a West Coast food-products marketing company. He supervises ten sales representatives that call directly on retail stores. During the past three sales periods the same two representatives have each missed their sales quotas by about 10 percent. The district as a whole has consistently reached or exceeded its sales objectives. This has been possible because of the overperformance by several of the other eight sales representatives in the district. The general sales manager had no idea there was a problem with this district until one of the sales representatives made a comment to him at a sales meeting. She said that she was sorry to have missed her quota for two sales periods in a row, but it would not happen again, and she did not want the manager to lose confidence in her. Following up on her "confession," the general manager checked the detailed sales reports and found that not one but two of the three female sales representatives in the district had underperformed. He further checked the records for this district and discovered that it was the last district in the company to hire female sales representatives. Since all the other salespeople in the district routinely reached or exceeded their quota figures and the district met its sales goals year after year, no serious overall management problem was noted that affected the performance of the district. The general manager did not think it wise to interview any of the district's sales representatives and disclose that there was a potential problem. He asked the manager to meet with him to discuss the underperformance of his two female employees. Their discussion indicated a prejudicial bias on the part of the district manager concerning the female sales representatives. This man was a very forceful top-down manager, somewhat vulgar with

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29

male salespeople but not intimidating or overbearing. His management style with the females in his district was nearly a hands-off policy. He gave them as little attention as possible, and his top-down power style discouraged the two underperformers from initiating any conversation with him. The district manager was simply uncomfortable trying to tell them what to do to improve their sales performance. He had never dealt with female subordinates and did not know how to start a dialogue. First, the general manager and the district manager jointly identified the problems and agreed on what needed to be corrected. Second, they prioritized what was to be done by recognizing that communication needed to be more relaxed and available to the two employees. Third, the how-to actions for the district manager were outlined. Fourth, the results and expected benefits of the action were identified. The solution to the problem included instructions to the female salespeople to be more aggressive in seeking help. The manager expected them to succeed, but it would be difficult for him to initiate the conversation. At the same time, the manager was encouraged to make greater contact and improve communication with the female employees. A suggestion was also made for the manager to take an objective and impersonal approach by discussing the problems independent from the personalities involved. Over a period of several months a comfortable relationship between boss and employee was established. The benefit of these actions were expected to be twofold: improved sales performance and the elimination of potential conflict in the district. The district manager would also be comfortable with his modified management style for female employees. Not all people can be successfully managed with the same style. In this situation, the manager needed to be more of a facilitator and supporter of his female employees. He did not change his top-down position-power style with the men in his division. The important point in this example is that by using an established process the problems resulting from top-down power management could be identified and corrected. Step Four: Confirmation of the Results

Supervisory managers must understand that there are frequently two sets of objectives and measurements when dealing with subordinate managers. In the example provided, the primary objective was to improve the manager's performance in motivating and supporting the work of the two female sales representatives by improving communication. The result of this action is analytically measured by the secondary objective, identified as an initial 10percent improvement in sales for each of these employees and subsequently for them to maintain achievement of their sales quotas. The improvement plan must clearly provide for a specific means to measure the success of the planned changes. This measurement should be mostly

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The Six Positions of Power

analytical, with as few subjective measurements as possible. In the example provided, nothing specific is said as to what the manager should do to improve motivation other than to make more contacts and improve communication. Both of these actions are motivational, especially when performed by a top-down manager. The details required for measurement of the subordinate manager's success were limited to the performance of his two female employees. When supervising other managers, one should keep in mind that they will feel it necessary to be a part of any action going on in their area of responsibility. They want to know what is happening and feel it is necessary that they control the action. For this reason, the supervising manager must be sure that the subordinate manager is implementing the changes identified in the improvement plan outline. It would not be uncharacteristic for a topdown power manager to step into the territory of a sales representative long enough to correct the problem of low sales production and let his or her example provide the solution to the problems identified in the evaluation. That would not deal with the objectives enumerated. The supervising manager will refer to the plan to ensure that the results of the changes were the ones agreed upon. SUMMARY

Once again, the use of power is essential for managing to take place. Unfortunately, the use of position power without incorporating some or all of the five basic power enhancers can create problems resulting in sporadic productivity. Effective communication followed by the necessary facilitation and motivation will allow the position-power manager to give effective and acceptable directions to subordinates. An evaluation of how well subordinates are performing is followed by providing support for an improvement plan. With these actions, the control aspects of managing become palatable, even for top-down power managers. Since power is inherently incorporated into every management position, the use of power is essential. For position-power managers their power is always directed to other people, be they subordinate managers, staff positions, or other nonsupervisory employees. Those who manage resources or allocate services are involved with provider power. The only other position in a hierarchy that may justify the enforcement of top-down power is the person who is responsible for the administration of the policies of the organization. Should an irresponsible manager choose to ignore policy infractions by a chosen employee, that individual can develop a significant position of power by being "above the law" of the organization. None of the other positions of power, specifically the powers of persuasion, participation, or presumption, lend themselves to direct power management of other employees. The power of these positions will be dealt with in specific chapters for each.

THREE The Power of Providers For the manufacture and marketing of pharmaceutical products, it is necessary to thoroughly test each batch of a prescription product before it can be certified and released for delivery to doctors and registered pharmacists. The certification process can be quite lengthy for some materials. The potency must be within very close limits and the product may need to be biologically tested to be sure it will perform as claimed. In addition, products will not be packaged and labeled before the process is complete. The manager in charge of scheduling the certification process for each batch of finished product has a position with considerable authority. Nothing moves to market without his approval. When one of the marketing directors sent him two tickets to a Broadway play that had been sold out for over six months, he was puzzled because he had no pending certifications for any of this manager's products. Just minutes before he could phone the marketing director, his secretary came into his office with an envelope that she explained somehow had become separated from the tickets. The envelope was a letter from the marketing director thanking the manager for his support by consistently releasing his products before the estimated clearance date over the past six months. The reliable product availability resulted

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The Six Positions of Power

in record sales for his marketing group. It was noted that a copy of the letter was sent to the manager's boss. The manager in charge of product certification was a key provider of services for all of the marketing divisions. Since he worked to establish efficiency and dependability as the hallmark of his group, he was rewarded by the marketing director with the tickets. If he had been a manager who used his position to invite favors, he might have made it known that a pair of tickets to a Broadway play could influence a priority position for a product's certification. In one instance a reward is earned, whereas in the other a bribe would be invited. STRUCTURED AUTHORITY

The authority for those who are providers is formally structured within the hierarchy of most organizations. Providers are the people who supply resources and services to other areas of the organization. Service providers are empowered to authorize, prioritize, approve or disapprove, and schedule many different activities, from manufacturing to shipping or providing legal services. The providers of resources are defined as those who deal in tangible items such as money, manpower, time, and materials. There is a significant amount of authority vested in the positions of most providers. The example at the opening of this chapter demonstrates that the manager in charge of product certification was one who held a significant amount of authority. Had he been one who extended the control of his position to suggest he would appreciate favors from those he served, his provider power would have been easily recognized. Since the authority of providers is structured into the organization, it cannot easily be overlooked. THE PROVIDER'S INFLUENCE

Resource and service people who are in positions that offer the opportunity to develop control over others soon become aware that they may choose between being facilitators, as the position is intended, or may use their authority to provide personal advantage. Most who decide to use their position to benefit themselves will develop their power over a period of time. Since providers interface with many people in their companies who need their cooperation, they will test and slowly establish just how much independence they can exercise with different departments. Some managers will not tolerate even the slightest imposition of provider power, whereas others feel more dependent and are willing to submit to the influence of those who are supposed to serve. Many managers are proud of the confidence placed in them and will conscientiously do their best to unselfishly promote the interests of their companies. Others will be unable to resist the temptation of promoting the

The Power of Providers

33

essential need for their services into a power base we identify as "provider power." THE POWER OF A PROVIDER'S AUTHORITY

In Chapter 2 and again in Chapter 10 reference is made to the power of the position compared to the power of the person who is in the position. This is particularly true for providers, since their potential source of power is found in the authority of their position rather than in the power of the individual who holds it. These managers may have several employees reporting to them to supply information and carry out the obligations of the job. They may well exert rigid control over their employees, but it will seldom have an impact on those who seek their support. These managers are authorized to establish the availability of what they provide according to the standards set by the company, but they usually have great flexibility in how they apply the standards, and it is in this area of judgment where they seek to satisfy their personal ambition. Consider the potential for coercive pressure that can be used by a qualitycontrol inspector who is responsible for determining whether or not products are assembled in compliance with company standards. The authority vested in the position of this individual allows him or her to judge (hold power) over those who are involved with product assembly. If the judgment is impartial, and each inspection is held to the same standards, there is no misuse of authority. When favoritism or prejudicial judgment influences a decision, provider power is used at the whim of the inspector. In most situations these judgments are made without question. Some inspectors may pass products that are marginally acceptable and others may fail them. When acceptance or failure is based on the inspector's partiality, provider power is in operation. Managers who must rely on others to satisfy their essential needs should be diligent in determining that there is no significant pressure affecting their employees. Employees who frequently interface with providers should be made aware that there is the potential for serious problems. Supervisors of these employees must make it clear that they have management support in dealing with reluctant providers. THE POWER OF SERVICE PROVIDERS

As we have indicated, there are two types of providers found in most organizations: those who offer services and those who dispense resources. Services providers are more prone to discriminate between those they serve because it is easy to accomplish in a short time frame and often goes undetected. In addition, usually there are few people involved in the transactions of dispensing a service. It is often difficult to discern whether a service is given arbitrarily or with equality.

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The Six Positions of Power

Reluctant Service Provider Example

The south central district manager for an agricultural chemical company telephoned his home office in Kansas City to speak with the vice president in charge of research and technical services. He explained that the extension service was holding a meeting on pest control and asked the district manager if his company wanted to provide a speaker to discuss product development and any new products the company expected in the near future. It was a timely invitation, as the company anticipated the introduction of a new pesticide for control of cotton insects for the next season. The vice president of research inquired of the meeting date and assured the manager that the company would be happy to provide a speaker. He would decide who was best to send and advise the district manager in time for the name to be included in the program. Within a few days the name was received and forwarded to the extension service entomologist in charge of the meeting for inclusion in the program. The district manager felt good about getting everything in place almost six weeks before the meeting. Two weeks prior to the meeting date he telephoned his home office and confirmed that the speaker was prepared, had the date and place correct, and was looking forward to the meeting. When he did not arrive the night before the meeting, the district manager placed an urgent message to Kansas City and learned the speaker had an emergency appendectomy and was on a two-week convalescent leave of absence. The surgery had been successfully completed with no complications ten days prior to the meeting date. The district manager talked with three levels of management only to be told by each that they thought he had been informed. Not withstanding, no one provided for a substitute speaker or took the responsibility for causing the problem. Lacking the interest to be a competent provider, the research department failed its mission as a provider. The fact that events took place within a short time frame and few people were involved made it possible for those who were at fault to escape the consequences of their failure. The following list provides a way of separating services from resources Services Legal Accounting Training Public Relations Quality Inspection Information Scheduling Approvals

Resources Money/Financial • Budgets • Spending control Manpower • Hourly or temporary • Staffing Time •Utilization and deadlines

The Power of Providers

Authorizations Market Research

35

• Allocation and management Materials • Physical resources

Services are performed for those who require them, whereas resources are given to those who will take them to use as needed. A quality-control inspector, a dispatcher, an auditor, a corporate attorney, a training manager, or the person who controls production can impose either a positive or negative impact on the success of those who are dependent upon them. Providers who assume a "can-do" attitude will extend a positive influence. Those who conscientiously work to help others will be recognized as facilitating the interest of the company and its employees. It is appropriate to exercise provider power only for the common good of the company and its people. One who is identified as serving others should think of his or her job as assisting them to fulfill their responsibilities. These people are expected to be dependable, but unfortunately this is not always the case. The following list shows examples of how a service provider can be either a conscientious facilitator or attempt to become a selective controller of those they serve: Quality control Dispatcher Auditor Training Lawyer

Facilitator Follows standards Fair and equal Follows all rules Impartial service Corporate interest

Provider Power Selective judgment Preferential Breaks the rules Shows favoritism Protects self

Service providers who act in the best interests of the company will follow standards, give fair and equal service to all, follow the rules, provide impartial services, and place the position of the company over self-interest. Provider power is selfishly used with selective judgment, preferential treatment, breaking rules, showing favoritism, and putting self-interest over those of the company. Pet Food Manufacture Example

The person in charge of allocating plant facilities for production performs a very important service. The importance of this function is supported by the authority given to the position and the high degree of responsibility vested in the person who performs this work. With the authority to select and prioritize the jobs for assignment to one of several plant facilities, the production manager in this example had the opportunity to establish a significant personal power base by misusing his authority.

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The Six Positions of Power

The vice president of sales for this company, located in Minnesota, came to the production manager with a request to significantly increase production for a specific product. He explained that a new account had just placed their initial order to stock retail stores in their mid western sales area. The order would nearly double the normal requirements for the product over the next thirty days. The production manager's reply to the request for increased production was not good news for the vice president of sales. He confirmed that the increased production could indeed fit into the schedule, but questioned whether he should do it. Euphoria for the new business began to fade when the follow-up comment indicated that the production would need to be placed in an overtime period if it was wanted within the next thirty days. The sales executive reluctantly agreed to the overtime charges and left with a new concern about the profitability of the new business. Back in his office, the production manager called in the person responsible for scheduling and told her to place the new order into the local plant in an overtime period, which would obviously increase the labor cost for the initial production run. When she suggested that the new order could be placed in another plant within the same shipping area to avoid the overtime charges, she was forcefully told to do as directed. She wondered about the waste of money and went back to her desk with the feeling that there was more to the story than she was aware. Later she learned that the overtime schedule was used as a means of providing the local plant crew with extra pay just prior to their vacation break. By using his provider power, the production manager was able to obligate the foreman of the plant's crew for future favors at the expense of the sales department. In this example the production manager successfully appropriated money from the sales budget to provide overtime pay for some of his plant employees. This illustrates how providers can expand their authority to proffer many benefits, even to spending the budget of another department. It is obvious that the production manager was not concerned with what was good for the company; he was mostly interested in developing his own power. THE POWER OF RESOURCE PROVIDERS

Resources are tangible and easily quantifiable. We have placed resources into four categories: money, manpower, time, and materials. One could convincingly argue that time is not a tangible resource, and should be in a category of its own. It is placed in the resource group because it is a significant factor in the use of the other three more physical resources, and is also expendable rather than ongoing, as are services. There is very little difference between the way resource managers and those who provide services exploit their authority. In each situation, exerting control can be done quite easily, but not without a price. The initial cost

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is always paid by the one making the request. But there is a way to solve this problem. Reacting to Provider Power

The manager who is confronted by a contrary provider should not be too easily intimidated. More favorable cooperation can often be obtained when pressure is applied. If a manager can tie the obstinate provider to lower performance, loss of an order, serious customer or client dissatisfaction, or increased costs, the self-convicting evidence will very likely stimulate a change in attitude. Documentation is essential to tie the misuse of power to the negative effect it causes. The facts of the problem must be correct for this to succeed and presented with convincing data in a very positive way in order to discourage the likelihood of retaliation. One who intends to be a facilitator will not like to be identified as the source of a problem, and will usually find a way to either shift the blame or provide the e^fcuse of a misunderstanding. Those who come into contact with reluctant providers have no trouble identifying them. Usually other managers will have had the same problems. To counteract this abuse they can sometimes band together (with participation power) and apply sufficient pressure on the provider to secure better service. Participation Power Overcomes That of Providers

The use of participation power was very effective in a situation where slow credit approvals delayed the processing of firm orders already in hand. In this situation the provider was the credit manager. Although the credit requests were made for established customers with good financial standing, the manager delayed the credit approval necessary before the order could be shipped. His tactic was to require the various division directors to contact him directly with a plea for action. In this way he drew attention to the importance of his position and himself personally. Since he had not experienced a negative reaction to his delaying action from any of the division heads, he continued his tactics without sufficient caution. The problem caused by the credit delay was coincidentally revealed by those participating in an executive meeting called to discuss the problem of lower-than-expected profits on carload orders. It was discovered that the delay for credit approvals on a significant number of orders necessitated the use of trucks rather than rail cars to meet the promised delivery schedule. When a product is priced for rail delivery and it becomes necessary to use trucks at a higher cost, the profit on the transaction will obviously suffer. The credit delay was found to be a common problem for all divisions. When the person in charge was confronted with the negative impact on profits resulting from his delaying action, he realized that he was hurting

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The Six Positions of Power

himself more than anyone else and rapidly changed his attitude. Those who are charged with the task of facilitating the company's operations do not like to have adverse attention drawn to themselves. In this example the credit manager made an unsuccessful attempt to shift the blame to the division heads by indicating that he was not kept informed of the need for "haste" in approving the carload orders. Frequently an early follow-up to the resolution of a problem will reveal the use of an insufficient excuse that, when challenged, can keep the offender from further attempts at establishing power. Resource providers can control many essential elements required for the day-to-day fiinctioning of an organization. Under the four headings (money, manpower, time, and materials) the following list shows how these categories impact those who depend upon resource providers. Here, again, the judgment is whether the manager involved is acting as a facilitator or exercising negative position power:

Money Manpower Time Materials

Facilitator Available as budgeted Provided as needed Reasonable allocation Meets requirements

Position Power Overly controlled Restrictive policy Controlled allocation Prioritized supply

Those who control essential resources may choose to facilitate the operations of their organization or impose personal position power to obstruct progress. Money

Most organizations will allow money to be budgeted for use over a specific period of time, such as an annual budget allocation. Once the budget is established and approved, the executives in control will usually be provided with the spending authority to use it as needed. However, there is always the understood requirement to stay within the budget allocation. In some organizations budgets are compartmentalized, with specific amounts placed in various categories or accounts, such as manpower, materials, inside and outside services, travel, advertising, and other common needs for the maintenance of operations. When this is the situation, the financial manager controlling the accounting or release of budgeted funds can establish an annoying position-power attitude or become a facilitator. Those providers who will offer timely, heads-up information will facilitate the ability of those they advise to control expenditures within budget. It is not uncommon for marketing managers to shift funds from the productpromotion budget to advertising or vice versa. The expectations are that the

The Power of Providers

39

shift will bring about a better result than staying within the allocated budget. The financial manager who is trying to facilitate rather than control will readily allow the reallocation of money from one budgeted area to another within the same general category when presented with a reasonable plan and request for the change. The self-oriented providers who are only interested in control will obstruct any changes and usually try to establish for themselves the perception that by diligence they are protecting the company from an irresponsible request. For these managers it is more important to control the budget than to facilitate a better use of the money provided. Money Control Example

In this example the control of money entailed much more than expenditures. The company, one of the largest of the Fortune 500, tied its money control to the production of revenue as well as the release of budgeted expenditures. The planning instructions and sample documents for the sales and marketing units of this conglomerate corporation made a book of over forty pages. Control was established by coding the documentation for expenditures with letters such as R-l for the first page of expenditures in the research area or P-3 for the third page in the production planning documentation, and was followed by pages coded for each area of spending or revenue production in the marketing plan. The amounts presented were cross-checked to be sure that all areas of the company were using the same numbers. As an example, if the S-8 page in the marketing plan showed sales of product #TB-15 to be $35 million by the end of the first quarter, all other planning pages related to product #TB-15 would need to be consistent with numbers of that magnitude. The production department would need to show the product to be available at that level, and all expenditures, such as materials, packaging, manpower and so on, would support production of the product to allow sales of $35 million as specified in the planning documents. The marketing plan would show the cost of selling, product promotion, advertising, and sales service related to $35 million in sales and the expected revenue. Should the actual figures fall 15 percent below the forecasted level, a previously prepared and approved contingency plan would automatically kick into operation. The contingency plan was required to produce the same revenue dollars as the original marketing plan even with 15-percent less sales at the end of the marketing period. Should the shortfall actually occur, the manager could present an alternative contingency plan for approval based on current conditions in the market, as long as the result produced the same level of revenue with no additional costs. In these situations, "related budgets" could be shifted from one period to another. That is to say, a marketing director could shift money from advertising scheduled in the third or fourth quarter to product-promotion expenditures in the second quarter. The one rule that was never violated was that no matter what

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The Six Positions of Power

changes were made, at the end of the budget period (in this case one year) the revenue generated was required to be nothing less than that approved in the original marketing plan. The important question is this: What is the role of provider power in planning, securing approval for changes, and keeping commitments to producing revenue? Obviously the control is focused on money. Should sales forecasts be less than 85 percent accurate, contingency action is required to ensure the revenue commitment. The restrictions on spending, which by plan are tied into the production of revenue, is programmed provider power. By such a rigid planning process, this particular company took away much of the ability to generate power from local managers and concentrated almost all of it into the planning commitments. In this situation, the power of the provider (the company) was very real and was a controlling pressure on all operating divisions. As the example demonstrates, provider power was an always-present pressure, but it was not initiated to furnish anyone with a power base. Since the resource was money rather than manpower, materials, or time, it could be moved from another source of funds already allocated. As managers were allowed to move funds from one period to another and from one related use to another, they were not denied the opportunity to use their power to manage the situation. In that the overall financial plan was established for the good of the company and its employees, the contingency actions taken to ensure control of the expected revenue were not considered to be unduly restrictive. In this situation the provider power was appropriate, as it came from the company, and productive because it intended to produce revenues as forecasted. This would not be the case if the power was used for personal gain rather than for the good of the company. Manpower and Restrictive Policy In many organizations manpower is a fixed resource, whereas in others it is increased or decreased according to current needs. When companies are involved in the activity called "downsizing," the restrictive justification for less manpower is mandated as an act of position power, but the effect is restrictive provider power. In traditional companies, provider managers who are responsible for the allocation of manpower can establish a very strong power base. When productivity is directly tied to the availability of workers and the provider restricts labor by selective justification, playing favorites, or using prejudicial judgment, he or she is expanding the authority of his or her position. This resource restriction is difficult to overcome, since the affected managers may be faced with even greater reductions for needed manpower resources should they complain.

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Time and Controlled Allocation

One may argue that time cannot be allocated, as it is infinite. Time, in the context of a resource, refers to setting deadlines for work completion or for the use of equipment, along with time devoted to analysis and study, time for training and development, and time to make plans and complete them. The allocation of time takes place at all levels of the organization. Sales representatives must plan their time to call on customers, managers must plan the timing of projects, and high-level executives will plan for timely investment. One who establishes deadlines or provides for the allocation of time is in control and has the power to act as a facilitator or as one who can restrict the availability of time to complete one's obligations. In most corporate situations the availability of time to plan, prepare, and implement a task is routinely available according to what is required. Employees and executives are frequently poor managers of time. When one is not disciplined to properly utilize time he or she tends to waste the resource provided. This can be said of any resource, but time is the least visible and most individually controlled. When employees complain of not being provided sufficient time to perform a task, the first place to look is with the user rather than the provider. Materials and Prioritized Availability

The availability of normally needed materials in the day-to-day operation of an organization is seldom restricted or prioritized to favor one group over another. However, when one unit has an unjustified priority over others to receive special or selective materials, it is the beneficiary of provider power. The one making the priority judgment is establishing power over the recipient. As an illustration of how a manager who is responsible for providing materials can establish a power base, consider the following: The marketer of a popular brand of children's sneakers ordered a substantial overrun of these shoes in order to deplete the stock of components used to produce them. The children's sneakers were made once each year and sold in quantity just prior to the start of school. The overrun, which would be sold at a discounted price, was considered a more favorable action than having money tied up for a full year in unusable inventory. In order to sell the additional amount of merchandise without disrupting the price in all of its markets, only one district was designated to receive the overrun merchandise along with their regular order. This action required all of the children's sneakers sent to the specified district to be sold at the sale prices. The result of this action was considered to be satisfactory because of the expected increase in units sold, greater retail participation in support of the sale, and increased brand recognition in the market by consumers.

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The Six Positions of Power

The district that received the overrun shoes should have been selected because of the ability to handle the increased sales with the least disruption in the market. Unfortunately, the manager in charge of allocating the product used his provider power to obligate a chosen district manager and preferentially allocated the shoes to his district. There were two chain-store retailers in the district who reshipped some of their lower-cost inventory into other markets and caused a significant problem for the company. The only good that came from this action was that the manager responsible was exposed for his poor judgment in allocating the special merchandise to a district that did not control the corporate program. Had the district manager who received the reduced-cost sneakers been more circumspect, he could have prevented reshipment of the product to other stores. No doubt he lost his priority position with the provider manager involved, who also lost his power by being exposed. In much less obvious situations, managers who wish to exercise provider power in the allocation of materials may be involved with office or warehouse space, office machines, equipment and supplies, parking spaces, or anything for which they are the source. BENEFICIAL PROVIDER POWER

In most situations the use of provider power is the opposite of beneficial. There are, however, circumstances when the deliberate use of provider power can be an act of facilitation. Money Providers

When one is in jeopardy of overspending money budgeted for a specific project, it is beneficial for the provider who determines this information to advise the manager involved of his or her situation. It is not uncommon for a provider to shift funds from one budget category to another to cover expenditures beyond what is authorized. The independent use of provider power for beneficial purposes is always welcome. Generally, those who provide financial resources are less inclined to exercise provider power because they will normally have sufficient position power to satisfy their need for recognition. Time Providers

Occasionally those who are responsible for enforcing the time restraints for completion of a task may also become unavoidably responsible for delaying a service. When service providers are not allocated sufficient time to complete their service, they may appear to be using their provider power. As an illustration, the purchasing agent who is not given sufficient time to locate and secure an essential material needed for the production of a prod-

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43

uct may be accused of not providing the essential resource. The fault may actually be with the manager of materials procurement for not advising the purchasing agent in sufficient time to meet the production schedule. In the role of a resource, time will normally involve deadlines that can be viewed as either flexible or inflexible. For example, when the due date for a report is eminent and there is good reason to delay submission for the inclusion of new information vital to the subject, the time provider can justifiably facilitate a delay or insist on keeping the due date for the report as being more important than the information it contains. The use of power in this situation indicates that the provider considers his or her responsibility as more important than that of those who submit the information. Since all providers are responsible to facilitate the operations of the company, any restrictive action is not consistent with this objective. It is well worth stating again that managers who are adversely affected by providers need to seek relief. Problems associated with those who allocate time often require a forceful manager to seek an extension of the due date from whoever has the power to provide it. In many situations involving time, the provider will back down from a restrictive position if the affected manager is willing to put up resistance. Providers will favorably respond to position power, participation power, and (on occasion) persuasion power. Manpower Providers

The one who is well informed of manpower needs and how to most effectively satisfy these requirements is working for the best interest of the company. The availability of workers for short-term needs is a different consideration than those required as a continuing resource. It is almost always more difficult to justify a continuing manpower position than one that is for a short duration. In most cases the more permanent ones are planned and budgeted in advance of the expected placement date. Short-term manpower needs may be related to shift work, promotional periods, data gathering, reaction to a competitive problem, or other temporary requirements. Since the precise necessity for short-term manpower is not often known in advance, the provider has a greater opportunity to exercise power than when more permanent employees are needed. Managers who must depend on labor allocations to fill short-term requirements should always remain alert for the possibility of restrictions on availability. If problems arise, the one in charge should not easily give up trying to satisfy requirements. Seek the help of someone who has sufficient position power to alter the decisions of the provider. Material Providers

The most beneficial action for those who provide materials is to keep their commitments. Here again, time is a factor in filling requests for mate-

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The Six Positions of Power

rials that are expected and in common use. There should seldom be a problem with these commodities. There are situations when the need for specific or unusual materials may call for an exceptional effort by the provider. When the unexpected request for a specific ingredient is experienced by the manufacturing group, it will welcome beneficial support from the materialsprocurement managers who are responsible for these resources. When a person is a facilitator, he or she will do the job with a willing effort to satisfy an expedited requirement of manufacturing and will not obligate the recipient with "You owe me one" for doing the work. Service Providers

The service providers who inquire if there is anything they can do to help are the ones who will be thought of as facilitators. Their satisfaction comes from being able to fulfill all of the demands that come their way. Since the need for services is often routine, their ability to correct a problem is limited, yet they can be invaluable in preventing them. Service managers who seek self-recognition can be very difficult to control. Usually the need for their service is immediate, and thus the ability to bring pressure on them with position power is limited. Service providers are often the most flagrant abusers of their authority. They can more easily justify why they are not in a position to provide a service or to obscure their responsibility in creating a problem. This is not so easy for resource providers dealing with money, time, manpower, and materials. Managers who must depend upon services to fulfill their responsibilities should always be on the alert for providers who seek to gain personal benefit from their authority. They should also have well-established sources of backup power available to impress an offending service manager that it is best to be cooperative. SUMMARY

Providers are charged with the responsibility to be contributors to the success of their organization. Every unit in a company or bureaucracy is dependent upon those who provide services and resources. These managers are essential to facilitating the day-to-day operations of any organization. For this reason one would think that the most dedicated people would be placed in these jobs. That is sometimes the case, but too often the people who are in charge of providing for others are not selected for their ability to use or develop effective interpersonal skills. Providers will frequently underestimate the value of developing effective working relationships with line managers and staff personnel who are in charge of critical functions. It is more often the obligation of those who are receivers to initiate a relationship with the providers who are important to the success of their operation. Building a solid manager-to-manager accord with both service

The Power of Providers

45

and resource providers is the best way to ensure their cooperation when it is most needed. The authority of a provider should be challenged when it shifts the importance of the activity to the provider or places the user in a position of obligation. Yet one can win the battle with provider-power managers. These people do not like to be tied to negative implications resulting from the performance of their jobs. Their primary obligation is to facilitate the success of those they serve. For this reason, even the most subtle misuse of power by providers can usually be negated by a strong manager who will not allow the provider's authority to create a position of power.

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FOUR The Power of Participation Corporations are organized with the intention of bringing together all of the elements required to operate a business. In the broad sense of the word business, it may be a cooperative, trade union, religious organization, city government, nonprofit homeowners association, or any other group that has organized for its members to function collectively. Those who become a part of the organization will participate according to the mandates of their charter, which provides for the division of duties and assigns the responsibilities. Individually, the members of the corporation may have very limited power. Yet as the authorized representative of the corporation, an individual may bring to bear the full power of the entire corporate organization. This is participation power. A shift worker in an automobile manufacturing plant requested reassignment to hours that would allow him to complete his shift by three o'clock in the afternoon. Since his wife had recently taken a nine-to-five job he needed to be home when the children returned from school at three-thirty. After two weeks had passed and his foreman had taken no action, the worker called his union representative and presented the problem. It was quickly resolved when a local union official telephoned the company and suggested that it would be a shame if the production line became as slow as the foreman in responding to their members request. This also is participation power.

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The Six Positions of Power

GROUP RECOGNITION AND COLLECTIVE BARGAINING

The major consideration concerning participation power is whether it is usable as a tool of management or is only useful to the members of the organized group. In order to respond to this question it is necessary to consider how recognition is gained and who will benefit from using the power that can be developed. Group Recognition

At the time a business is organized the initial objective is to provide a structure that includes all of the resources, operational activities, and functional services (such as administration, legal, and financial) that are necessary for the ongoing operation of its affairs. Questions may be considered as to whether the company needs to do its own research or outsource this activity. Is it necessary to purchase trucks or can the corporation use common carriers for delivery? In general, the initial organizational concerns will be to satisfy the operational requirements of the company. There is no consideration for providing self-serving participation power. As an illustration, recognition of the need for an in-house legal department will be based upon the requirements of the company, not a desire to create a group with a significant power base in the corporation. Legal departments are recognized for the contributions they can make to a company with the advantage of their intimate knowledge of its operations. Can legal departments develop self-serving participation power? Unlike most groups providing a resource or service, it would be difficult, unlikely, and serve no significant purpose for legal staffs to impose provider power. Collectively, lawyers have the power of being essential resources to the corporation, but to bring pressure on the company or other executives for special benefits would bring few privileges not already enjoyed. There can be exceptions where personal gain is the objective. Ambitious Attorney Example

The company in this example has a large legal department with attorneys representing every aspect of the law applicable to business. One of the company's marketing groups prepared a brochure that emphasized significant benefits from using one of their new products. The claims were backed by four years of research conducted according to a protocol established by the Food and Drug Administration. When the research was presented to substantiate product claims, the government agency requested modifications for the language in the brochure in a way that actually eliminated any claim of benefit from its use. When used as directed, the drug protected the user from experiencing the negative effects of a pathogen that was ubiqui-

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tous in the target environment. Those who used the drug were able to experience good health and those who did not would almost always suffer health problems related to the specific pathogen controlled by the drug. The government refused to let the company claim the "good health" benefit or make any reference to it because the drug itself did not provide the good health; rather, elimination of the pathogen provided the benefit. Claims could be made only for control of the pathogen, but could not refer to the benefits this provided the user. The argument the producer made was that using the drug was like a vaccination, which provided the user the benefit of immunity from a specific disease, a claim allowable under the protocol and the department's regulations. When the FDA refused to budge from their position, the company's legal department was asked by the marketing group to come to its rescue and present a case for allowing the claims. Since there was only one government research reviewer that objected to the claim it was expected that the prohibition would be easily overturned. The company attorney who was assigned the task of filing for a formal review to overturn the government's decision refused to take any action. There was no doubt controversy in the company's request, and since he was being considered for advancement to become the head of that legal group he did not want any attention that could possibly have a negative result. The rest of the staff in that legal section supported the decision of the one that was to become their new leader. The matter ended with no action taken. This case of participation power was unique in that it benefited a provider. The Potential Power of Participation

Individually, secretaries are not in a position to exploit power in an organization. If they are members of an office worker's union, they are collectively a power to be recognized. Once the group has status by recognition of their potential power and by the intimidation of the power that may be brought to bear, the group can effectively have a voice in matters related to their work. An executive secretary will usually work for one person. Ideally the relationship between the secretary and his or her boss is one of mutual respect and cooperative productivity. They will look out for each other's well-being and be thoughtful of each other's work-related needs. Why would this person join an office worker's union? In part, the answer is to participate in an organization with those of common interests, gain greater recognition, support others in similar positions, and gain the benefits that the organization can negotiate for its members with its participation power. Executive secretaries (or executives) may move to positions offering greater opportunities. If one is a member of a recognized organization, the benefits accrued by membership will move with them to the next position. On a lesser scale, but based on the same principles, recognition may be solicited by a group of people brought together by a common pioblem.

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When a public street in a neighborhood has been neglected by the city maintenance department for so long that it becomes a hazard, the neighbors may band together, petition the city government for help, and get action. As a group with a common interest, people can gain recognition from those who have the power to solve the problem. The same principle holds true in a business situation. To organize for recognition, the only requirement is that those who participate must have something in common that binds them together. Specialinterest groups seeking to gain power and privilege epitomize the formation of participation power. For many of these organizations the members have little in common other than one theme of sufficient motivational interest to attract many who wish to participate. The power they generate can be extremely significant. When one considers the participation power represented by a class action law suit, it is easy to recognize the vast power of the collective action of a large group. In the class action case surrounding silicone breast implants, the participation power was sufficient to bankrupt a strong and long-established company, even though not one piece of research could establish a direct link between silicone and any pathogenic effect on the user. Collective Bargaining

The term "collective bargaining" comes from the negotiations between unions and the organizations that employ their members. It implies that the union represents the collective interest and negotiation position for all of its members. The union has the power of being recognized as the voice of its members as well as controlling the members to accept the negotiated agreement. This is participation power where a few officials have the right to use all of the power of the group. Once again, the power of the individual is insignificant, but as a whole the union has enormous power. Collective bargaining may be used by any group that has a continuing, perhaps contractual relationship between members of the group and the organization that employs them. A negotiated settlement of a dispute is not collective bargaining, although it is similar. Bargaining may take place over a period of years, whereas the negotiated resolution of a situation is usually much less time consuming and probably will not recur. INFORMAL PARTICIPATION POWER

One of the commonly known acts of informal participation power is found in our public duty to vote during elections. When we cast our vote we are participating with a group of people that we cannot even identify. Nevertheless, we have a common bond with them by voting for the same person or initiative even though we are unaware of this relationship. There may be

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political party affiliations that identify our preferences, but when we go into the voting booth we share nothing with anyone. The kind of informal participation power one finds in a business group is much less organized, but it is easier for the participants to identify with whom they are affiliating. A group of employees decided to form a bowling team to represent the company in the city league. They elected a captain and cocaptain to represent the team and sent the elected leaders to ask the company to buy shirts and jackets displaying the company name on the back. As bowlers, these employees have a very informal relationship within the company, and yet they collectively were able to bring sufficient participation power to bear to successfully accomplish their goal. This was a one-time group effort, rapidly resolved. In this case the group had two things in common, bowling and an employer. At their national sales meeting, a group of fifteen representatives were discussing a common problem relating to the automobiles provided by the company. This was at an informal gathering that took place in a hospitality suite after the scheduled meetings. There was no planned agenda and no attempt to organize the discussion, and it was only by chance that the common problem was identified. The sales representatives for this company were obligated to carry a rather extensive inventory of company product samples, a record file containing information about the prospects they would visit during the week, and a container to pick up outdated samples still in the hands of those they were scheduled to visit. The standard company car was a two-door compact model with a small trunk. The fifteen sales representatives all found the necessity to keep some of what they carried in the front seat. This condition was considered to be not only inconvenient, but also unsafe. The group decided to present a petition to the national sales manager signed by all fifteen. They asked for the company to consider providing fourdoor standard model automobiles to improve safety and offer time-saving convenience for their sales representatives. Stimulated by a common interest and accompanied by a reasonable request, the participation power of the group was sufficient to change the company's automobile policy. MANAGEMENT'S USE OF PARTICIPATION POWER

In that management has position, provider, policy, persuasion, and even presumed power, why, how, and when would they need to use the power of participation to further the extension of their control? If a high executive can persuade every employee in the company to participate in contributing to the United Way fund drive, is this persuasion power, position power, or participation power? Probably some of each. The high executive has position power, which makes what is said more persuasive than that coming from others. If the message is that the company wants to be a 100-percent

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contributor in their participation for this worthy cause, the persuasion is reasonable, since it is not selfish. When the executive concludes his message with the pledge that when 100 percent of the employees participate the company will match their contributions, a strong common reason to unify is presented to the employees. As a practical management tool, bringing together a group of employees to provide a unified action is a challenging task. The example that follows comes from one of the largest food-product companies in our country. One of the major divisions of this company made the commitment to expand their operations into a new line of products. The new line would be sold to retailers through food brokers, which was the traditional distribution channel for products of this type. The division sold all of its products directly to retailers and had done so for many years. There were two logical options on how to market the new line: either form a new marketing group within the division to take the line to food brokers or rely on the retail marketing people to establish and maintain the new product line with the brokers, a marketing channel unfamiliar to them. It seemed logical for some of the current retail salespeople to handle sales to the brokers and use the rest of the salesforce to service the products at the retail level. The company was confident that its outstanding retail service would provide the in-store support necessary to bring success to the new product line. Since retail salespeople are compensated only for the products they sell, they considered their retail service activities as a necessary effort to stimulate faster product turnover resulting in follow-up sales. Success of the suggested shared responsibility for sales and service was dependent upon the retail salespeople providing in-store services for products they did not sell. To motivate this activity a bonus was provided for the retail employees who did the service job required. This bonus was based on product turnover for the new line. The most important element of the program was to provide sufficient motivation to ensure an enthusiastic participation of the retail salesforce in the program. To provide a cooperative effort by both the broker salespeople and those in retail sales, teams were formed—including one broker salesperson coordinating the service objectives provided by the retail salespeople covering the stores sold by his brokers. Participation was motivated by individual bonuses, team incentives, and an overall company pride program to provide the common reason for all to pull together. The company gave this program two years to become functional, but they were unable to settle the conflict that persisted between the retail sales group and those selling to brokers. The new product line was sold to a competitor whose business was with brokers and the company reverted back to business as usual. The example shows the difficulty for managers to motivate group participation. It also provides a look at what needs to be considered if one tries such a program. One of the most important lessons learned from this expe-

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rience was that participation power, used by management, could be sustained for only a relatively short period of time. "Let's pull together," may work in a storm when everyone in the boat wants to reach the shore, but it is not often that management can provide such compelling motivation. TRADE ASSOCIATIONS AND SPECIAL-INTEREST GROUPS

There are so many different organizations that claim to be the voice of millions that it is difficult to know which of these are true and which are only activists seeking a platform of influence. Some of the largest have voluntary membership with annual fees to support the organization. The American Association of Retired Persons (AARP) is one of the most influential and broad based. Few of its membership have a voice in the formulation of AARP policies, and it is anything but a homogeneous group that actually supports the economic and political positions of the AARP board of directors. Yet the political potency of its potential participation power is preposterous. The implication is that AARP can influence the behavior of its huge membership to follow what it projects as its policies. The only common bond in this organization is that members are of an age to be retired. This broad commonalty hardly provides the cohesiveness of its membership that would allow the organization to exert the kind of power that it implies is possible. One of the unions that represent teachers, the National Education Association (NEA) has a much stronger relationship among its members, as is the case with most union organizations. To a significant degree these strong unions not only represent the interests of their members but also control them and their working environment, even to dictating the teaching methods and curriculum they can use. Many of the members of this organization do not embrace the political orientation of the NEA leadership, but they have very little opportunity to bring sufficient power to bear on the leaders to change their policies. Most large religious organizations follow the same dictum. Organizations like the American Automobile Association provide emergency services for their members at prices that would not be available to nonmembers. The participation power here is that of preferential pricing to the national association that is passed on to its members. Organizations that have the greatest impact on businesses fall into three groups: (1) unions, (2) industry trade associations, and (3) special-interest groups. Unions

The power of unions has been sufficiently covered in this volume. Their members are closely bonded, have many common characteristics, and are usually bound together with their employer by not only their common interest, but also by contract.

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Trade Associations Industrywide trade associations are the most common of these organizations and are united by what they manufacture or the services they provide. Representatives of these organizations, such as the Pharmaceutical Manufacturers Association or American Medical Association, use participation power in several ways. They share technological information, provide a united front to address governmental regulations, and seek to influence a favorable public opinion concerning their trade. Trade associations will frequently carry out public relations programs, including advertising and lobbying efforts to influence both the public and government. In this way competitors for the consumer dollar can cooperate in a united effort to benefit each other that would otherwise be impossible and possibly illegal. Whereas two competitive companies cooperating to influence the market may be viewed as engaging in collusion to reduce competition, which may adversely affect the consumer, when the whole industry embarks on these programs they are viewed as performing a public service. Special-Interest Groups The impact of special-interest groups on industries varies significantly with the size of the companies involved, their geographical location, and the products or services they provide. In general, there are environmental groups, such as Greenpeace and the National Wildlife Federation, that lobby for regulatory control on industries and create public awareness of what they visualize are important issues such as global warming, air pollution, clean water, and toxic waste disposal. There are also those seeking increased representation, better working conditions, impartial hiring practices, and restrictions on prejudicial policies. In this group we find the National Association for the Advancement of Colored People (NAACP), the National Organization for Women (NOW), the American Association of Disabled Persons (AADP) with over forty-nine million members, and many other organizations with similar interests. The programs of these groups will require serious consideration by many corporations and other organizations in our country. Special-interest groups make a significant impact on the decisions of many executives in their daily business activities. The American Civil Liberties Union is very likely the most politically influential special-interest group in our country. It has significantly influenced companies, local governments, whole industries, the federal government, and the U.S. Supreme Court. The primary agenda of this group is in liberalizing social reform, reducing the influence of our capitalistic business environment, and establishing laws that provide the individual with power, under the law, to challenge both governments and businesses when what it

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perceives to be civil rights have been abrogated by prejudice or circumstances beyond the individual's control. The power of the people is indeed found in the voice of a large cohesive group represented as one by the powers that represent them. tXPEDIENT PARTICIPATION

In the day-to-day management tasks of most organizations there are occasions when employees or subordinate managers will make a request representing a group of people, a consensus opinion, or even the views of several fellow managers. It is more often expedient for the controlling manager to grant permission or agree with the request without further reference or even checking back to see the outcome. When the request seems reasonable, the manager will usually go along with what is asked. Should there be an increasing number of special situations that require the manager to respond to this type of participation power, it would be wise to confirm the need and the degree of participation that exists. Executives will often use subordinates to put forth and champion the manager's agenda. Knowing that it is not uncommon for those in support positions to create the illusion of authority to elevate the importance of their position, managers may allow nonsupervisory people to establish personal authority in an attempt to make the management job easier. There are two common ways that this is accomplished: 1. Borrowed Authority. The one who borrows authority will often start request memos with a statement like, "I have been asked by our Division Director [title of the authority to be borrowed] to request that you provide the following information," or "Company policy dictates that every employee complete the enclosed questionnaire." 2. Implied Authority. "As chairman of the Compliance Committee, I must request that. . .," or "I have been made responsible to see that all personnel..." Both implied and borrowed authority are sometimes positioned as presumed power, but usually they are viewed as participation power encouraged by the manager. In these two examples the one attempting to direct the actions of others is doing so with authority that is not a structured part of his or her position. On occasion, this is an acceptable practice to get something done in the easiest way. All too frequently those who become dependent upon the authority of others as a way of facilitating their work or enhancing their position may be trying to manage the result rather than accomplish the task by their own efforts. Managers who participate in lending their authority to subordinates must keep a short string on the loaned power and be sure the authority is returned when the specific need is fulfilled. The use of both borrowed and implied authority should be allowed only in specific authorized situations.

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It is not unusual for subordinate managers to attempt to position themselves between their superior and other managers or employees. They usually present themselves as representing the point of view of their peers and have been asked to speak for them. If they become the messenger from the boss back to other subordinates, they assume unproductive position power. When they claim to be representing their peers or other employees, the one in charge should challenge this claim before taking action. Should the request be verified as represented, then the manager, rather than an intervening person, should directly advise those groups. Quite often such situations will involve the use of funds for purposes not covered in the budget. When the one in charge is asked to provide funds based on a request that starts with a statement like, "We have decided it would be best to provide our group with cell phones rather than pagers and telephone calling cards," the manager had better have a conversation with all who make up the group described as "we." PRACTICAL PARTICIPATION Most companies provide many programs in which they encourage their employees to participate. In a manufacturing plant there are hard hat areas and other safety programs that require participation. Some corporations have credit unions that offer individual saving plans, insurance programs, and preferential purchasing privileges arranged by the company for the employees who choose to participate. The military Post Exchange operations are extensive and can provide lifetime benefits to retired military people. Employee participation in company-sponsored social events, such as picnics, parties, and sports, are most common and well supported. These examples show the extent to which companies are willing to go to provide practical participation programs for the benefit of their employees. The only influence intended by these programs is to foster a positive company image by providing employees the opportunity to participate as a company unit. The influence of participation power may also be used to direct specific groups of employees into greater productivity. A Midwestern company with a large retail sales force calling directly on hardware stores provided a highly motivational program identified as the Man of the Year (MOTY) program. Sales representatives who exceeded their sales quota figures by a significant percentage were recipients of the MOTY award. One year the company had over twenty salesmen who qualified for the award, which was an all-expense-paid ten-day trip to Europe for the man and his wife, including a cash bonus that was intended to offset a shopping spree or otherwise enhance the pleasure of the trip. The drama of this award was of great suspense because the winners never knew who they were until the presentations were made at the national sales meeting by the wives of the winners, who came out from behind a spotlighted screen on stage to call their spouses

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from the audience. Companies who participate in programs as well planned as this one will cement their salesforce together and garner mountains of good will for the company. SUMMARY

There are few individuals in an organization that can develop usable power from the participation of others. The real power of participation is centered in large organizations such as unions, trade organizations, and special-interest groups. Unions are probably the most important to businesses and government. The negotiations they conduct will be for large numbers of people over the span of an entire industry and for a contract period of significant duration. Unions are unique in that they propose not only to control the working environment of many industries but also the behavior of their membership. Within the confines of departments or other smaller business units one can find participation power at work to influence the resolution of specific problems and gain privileges for small groups of employees. The most important consideration for managers is to determine who benefits from the use of participation power. With this information one can decide whether the power of participation is productive for the company and what management action should be taken.

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FIVE Presumed Power Nearly everyone, at some time, presumes to be something that they are not qualified or authorized to be. The service station attendant may presume to be a mechanic when he gives advice about the malfunction of an automobile engine. A drugstore clerk may presume to be a pharmacist by giving advice about over-the-counter medications. When a friend gives advice about buying or selling a stock, they presume to have the information of an analyst. In a business-related example, the manager who knowingly takes an action contrary to company policy presumes to have a better understanding of what is good for the business than those in higher positions who instituted the policy. Many of those who develop an effective use of presumed power are capable users of persuasion power. Occasionally managers with substantial position power may wish to elevate their authority to a higher level, or the president of the company may presume to have a better understanding of what is required than the research department or the financial director. Nearly everyone in an organization can develop an effective use of presumed power and many do. For the most part, it is not destructive and often not even self-serving. In some situations it is necessary to facilitate an indecisive manager. The opposite is true when this power is used for personal gain or to suppress the work of fellow employees.

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THE ORIGIN OF PRESUMED POWER

Presumed power can be spontaneous, yet more often it is developed over a period of time with specific objectives. When one member of a committee chronically dominates the discussion or assumes himself or herself to be the voice of authority for the group, the power in use is presumed to be appropriate. Employees that carefully ingratiate themselves with their superiors may be in the process of developing an advantage not otherwise available. Presumed power may originate from several diverse sources and for very different reasons. The following is a list of common origins for those who use presumed power on a continuing basis: Origin Seniority Superiority Power void Audacity Opportunity Charisma

Power Source Experience, maturity, deference, respect Intellect, accomplishments, prestige Ability, availability, willing to act Arrogance, dominance, patronizing Unsupervised, undetected, immunity Persuasion, presence, personality, stature

The continued use of presumed power can take place only as long as the one with superior position power allows it. The discussion that follows explores each of the origins of presumed power, how it is developed, and how it sustains itself over a period of time. THE POWER OF SENIORITY

Career staff managers who have reached the position of being senior to others may either develop or have bestowed upon them a vested position of presumed power. Their maturity, experience, and respect may gain consideration for them not available to younger employees. To a great degree these managers have earned a special place in the hierarchy of peers. During their tenure they will have achieved many things that benefit not only the company or themselves, but also those who follow. Better working conditions, increased benefits, and improved policies and procedures can be attributed to the efforts of long-term employees. The Positive Influence of Seniority

It is not uncommon for these trusted employees to become mentors for new managers who come into their area. At times they may even function to indoctrinate a superior who is new to the company. In this context their use of presumed power is not for personal gain but rather to serve.

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Magnificent Mentor Example

When presumed power is bestowed upon senior managers or employees, they will accept it as a responsibility to perform with dignity and competence. Often they will use personal time and resources to be of service. In this true case, the mentor was a senior manager with experience in several areas of the company. He was well informed concerning the company's capabilities in manufacturing, marketing, and distribution. A young and highly capable general manager was transferred from a subsidiary company into the subject organization as vice president of operations. The experienced senior executive was named executive director of administration, working directly under the new vice president. It was understood by most executives in the company that the senior man, who was less than five years from retirement, could credibly handle the job as vice president of operations himself. Those close to him also knew that although he was in reasonably good health he had suffered a mild heart attack two years previously. Stress was his enemy. The senior graciously accepted his new responsibilities and for the next two years trained the younger man in the ways of the company without infringing upon his authority or preempting his decisions. He was a mentor in the best meaning of the word. When asked, he advised. When not asked, but necessary, he diplomatically made strategic suggestions, guided the new vice president through corporate ambiguities, and introduced him to talented people and procedural shortcuts that would make his job much easier to assimilate. He also used presumed power when representing the vice president at meetings or intercepting problems he could competently deal with. He was the voice of the vice president in these situations and presumed the power to act in his behalf when it was appropriate. The presumed power gave him the needed authority in situations when he was acting as surrogate vice president. The senior executive gave many hours of overtime and instilled the essence of his many years of experience into the new vice president. He also proved, without a doubt, that presumed power, when properly used, can be a significant tool in managing. The Negative Influence of Seniority

Those with seniority may also develop a position of presumed power with the objective of providing personal privileges. Since they may believe to have helped the promotion of some who have moved up in the organization by correcting their errors and covering their mistakes, a unique relationship always exists. The privileges these people seek will usually have little effect on anyone but themselves. They like to sit at the head table during company meetings, attend the most prestigious industry meetings, and be assigned to important committees. It is common to see them fraternize with executives above their level in the organization as a carryover from past associations when they may have been equals.

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The adverse effects of their presumed power occur when they block a more deserving person from committee membership or attendance at a meeting. They may also avoid unpleasant tasks that are subsequently assigned to their peers and have been known to rest on their past accomplishments, expecting others to contribute more to make up for their lack of initiative. This behavior appears to be more common in the educational system and government positions than for businesses, but corporations are not immune. The negative aspects of seniority are tolerated by most organizations as temporary and innocuous, although at times annoying. When one who is senior and not performing up to the standards of the position, he or she may be relieved of the staff position to accept assignments that make for progress. Nonmanagerial Seniors

The value or annoyance of nonmanagerial seniors is nearly the same as with staff managers, except they are on a different level of responsibility. Senior salespeople can become mentors for those new to the job. The problem is that they frequently teach their bad habits along with their good ones. In these situations managers must be aware that a career salesperson remained in that position for his or her own reasons, which may not serve the objectives of the manager. One can expect that senior salespeople who are in a position to use presumed power will use that advantage in their own way, possibly with self-serving ego implications. At the lower levels of responsibility, it is more common to see those who have retired on the job. How companies handle these situations depends on different circumstances and may vary significantly. The problems they cause are found in two areas. The first is the example they set for those with less experience. If it is not clearly understood that an accommodation is being made to placate a specific senior employee who has presumed to act as though he or she has the power to make choices not open to others, their example may set a standard for those who are contemporaries. The second problem is related to their productivity. Presuming to have the power to exempt oneself from an acceptable level of productive work hurts everyone in the unit. It is not just self-defeating but, again, may also adversely affect others. Negative presumed power should be tolerated only at a low level and for a short period of time. SUPERIORITY

It is realistic to believe that in many organizations there are individuals who are significantly superior to others in the same position. These people may be more intellectually gifted, better educated, and have earned recognized honors. They also are able to list significant achievements and are accepted into prestigious societies. However measured, these traits are con-

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sidered superior qualities. None of these characteristics may provide them a vehicle to climb higher in the hierarchy, but they often find ways to exercise presumed power over peers. Some fellow employees are simply awed by individuals who attain this classification and even some supervisors will be found in this group. When that is the situation, the use of presumed power by the one reflecting superiority is often enabled by the power of the supervisor who has legitimate position power. Supervisor's Assistance

Often, when the supervisor is impressed by the superior individual it is because a type of symbiotic relationship has developed that allows the manager to utilize some of the outstanding attributes of this person while the subordinate employee is allowed a presumed-power position with peers. The use of this power will not usually result in power over peers. More often it is manifested in privilege: a better office location, higher budget approval, flexible hours, higher performance reviews, and opportunities to represent the supervisor at meetings or trade functions. When these perks are bestowed, they represent the personal benefits of presumed power. Not all superior people are provided the benefit of an impressionable manager. Yet many are still able to claim the benefits of presumed power. Perhaps the designation as superior is more accurately identified as unique. Most people have some superior attributes over others, yet they would not be considered unique. The ones we have characterized as superior have easily identifiable attributes that are characterized as outstanding by normal standards and most of their peers. They are also unique in that these superior traits have not gained the individual a high standing in his or her organization. It may be that their ambition or motivation to gain position power is not important to them. The are often satisfied knowing that they are superior individuals, regardless of their standing in the organizational hierarchy. To develop and consistently use presumed power, those who are confident of their superior nature will attempt to become identified as the expert, accepted authority, or most capable in some facet of the work regimen of their peer group. This recognition will sustain their condescending but usually pleasant attitude and establish a position as the person of choice to perform where there is recognition of their superior expertise. POWER V O I D

Occurring too often to be overlooked is the situation where the controlling manager is reluctant or unable to use his or her authority or position power to provide the needed impetus to manage. Some executives are just not capable of managing people. They may have highly competent expertise in the work involved, but are unable to provide the management power

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required to direct and control the activities of those for whom they are responsible. One on one, these managers may provide an example, instruct, or be reactive to questions an employee initiates. This manager will not attempt to act as a leader. He or she manages only the technical aspects of the work or will review for correctness what workers produce. Working in this environment can be very difficult without someone using presumed power to take the initiative in providing direction and exercising control. Under these conditions most employees will gladly follow someone who is available, has the knowledge, and is willing to act by presuming to fill the leadership void. Providing the power required to direct and control the work is essential if the unit is to be cooperatively productive. The one who steps in and presumes to fill the power void can successfully guide the unit as a capable helper for as long as necessary. It will not work as well if the presumed power is also expanded to bring position power to the unofficial leader. Power Void Example

An autonomous division of a large conglomerate food-products company embarked on a substantial reorganization and expansion of the division's facilities. There were fourteen manufacturing plants located in all parts of the United States. Several of the plants were scheduled for modernization, others were to be enlarged, and one new one was to be built within two years. An experienced executive was brought into the division from a competitive company as its president. Within six months the president had hired six new plant managers and a vice president, all from other companies in the same industry. The new president had an extensive background in finance and manufacturing. His new vice president was a senior marketing executive with experience as president and chief executive officer of a privately held company that was the leader in its field. Preoccupied with the plant modernization plans, building a new facility, and establishing modern financial systems in all fourteen plants, the president allowed the vice president to assume the responsibility of running the current business. Everyone knew that the president was the supreme authority for the division, but if an answer concerning current operations was to be forthcoming, it was directed to the vice president. The second in command became the "go-to" executive for most of the plant managers and home-office executives for all matters pertaining to running daily operations. Since he was not interested in more position power than he already had and realized that the president was preoccupied, he gladly presumed the power to make necessary decisions. Both executives were busy, capable, and free to manage without conflict during a very critical time for the division. This was a productive use of ongoing presumed power that benefited everyone involved in the operation.

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Presumed Power for Self-Benefit

The use of presumed power can take place at any level in an organization. At lower levels the one who presumes to have power will use it for his or her own benefit rather than to help others. Should the sales manager fail to communicate with salespeople about the number of prospects they should visit in relation to the number of customer calls, the salespeople will presume to have the flexibility do as they please. When they are chastised for not developing prospects, their retort may indicate that they were unaware that prospecting was a requirement of their work. When the manager does not direct and control the activities of subordinates, they will presume to have tacit approval to follow alternatives of their own choice. AUDACITY Whether audacity by itself is an origin of presumed power may be questioned. However, there are dominant, patronizing, and arrogant managers or subordinates who at every opportunity will take control of the task in which they are involved. These people presume to be correct in all of their opinions and cannot resist dominating the action. If they are in a staff position, their effort will be to presume having authority over other staff managers. If they are lawyers, they will presume that their opinion is more valid than that of others on the staff. When audacity is the source of presumed power, it is often supported by an attitude of superiority, yet the individual may not have the intellect, prestige, or accomplishments of one who is actually superior in some facets of the work. The audacious one will try to establish presumed power on the basis of their chutzpah. Audacious people are obvious in their actions. Yet when they are confronted by someone with conviction, it is sometimes all that is needed to put a stop to the domination of those with real capability. Herein is the problem with presumed power originating from audacity. This source of power is always negative and self-serving and often succeeds in suppressing those who are more qualified. OPPORTUNITY

The branch manager of a field sales office is the highest authority in a very small part of the company's business. He or she can act with considerable independence, based on the fact that the immediate supervisor may be hundreds of miles removed from the branch location. The presumed power of people in this position is legendary. Usually the branch manager has hired or approved the hiring of most of the people in the office. He or she controls the expenditures of the branch and approves, or not, the expenses of those who are branch employees. Since our example is a branch sales

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office, we will assume that there are several salespeople traveling from this location to contact the company's customers. Orders are placed and processed at the branch and shipments are initiated, if not authorized, by branch employees. If this were not enough focus on control at the branch, it is also the communications center for those who travel from the location. If there was ever an ideal environment for the development of presumed power, it is the one we have just described. The activities of the branch manager can easily go undetected for a significant period of time. The one in charge is unsupervised (no close direction or control) in day-to-day operations, and by controlling what the home office learns can develop immunity from almost any problems that arise. Problems are always some other person's fault. There are many areas in which this person with the opportunity to develop presumed power can operate. Of paramount importance are these: financial control, hire and fire decisions, timely communications, home-office contacts, order placement, shipment priority, and the enforcement of company policies and procedures. The choice to presume power as a helper or for self-aggrandizement is substantially up to the manager. There will always be "after-the-fact" reviews, audits, and inquiries if needed. This deferred control activity has little effect on the dedicated presumed-power manager. CHARISMA

Most people who have what we identify as charisma have gained presence by their bearing, stature, from a pleasing personality, and they have mastered the art of persuasion. We happily follow these people without question. Since those with personal magnetism depend upon people to look favorably upon them, they do not often abuse the power of persuasion. They will easily use presumed power with little thought of providing themselves with a benefit. Authority is bestowed upon them and will be used as a normal occurrence. The problem with appealing persuasion power is that there is no guarantee it will be used wisely. People who have the power to fascinate and persuade are not always noted for their accuracy or intellect. If they have these attributes, it is used only to support their influence. We question the value of charisma not for lack of sincerity, but because of personal abilities. Those who have the gift of persuasion are as convincing to themselves as they are to others. Unfortunately, they are often unaware of what they do not know. Problem with Charisma Example

The president of this company, an American subsidiary of a very large German company, was a man of significant charisma. He may have finished

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high school, but that was never confirmed. He was a self-taught classical musician, a master machinist and tool designer, an inventor, a superb and sought-after public speaker, and an executive who surrounded himself with capable people. This chief executive officer had a sparkling personality, presence, and stature, and persuasion powers that were overwhelming. The product development group of his company discovered a very unique product that captured his full attention. The product was a very safe, watersoluble, and odorless pesticide that when combined with sugar and water would quickly attract and kill common houseflies by the thousands. With his experience in tool design and as an inventor, the president, along with his research people, produced a product that could be used in the home, restaurants, or anywhere flies were found. It was cleared by the Environmental Protection Agency to be sold for fly control through out the United States. The president held meetings with high executives of prominent drug and hardware chain stores to plan a very big nationwide launch for the product, which was named "Fly Charmer," since it attracted flies to feed, then fly away and die. Only one person in the company had the courage to speak out about what, to him, was an obvious flaw in the testing procedure used to determine the efficacy of the product. He was an entomologist who had transferred from the research group to marketing but was asked to read the technical report and give his opinion to the director of research. When no action was taken on his opinion, he went directly to the president of the company and asked to talk with him. He told the CEO of his concern as to whether there had been sufficient seasonal testing in the areas of the country where the product was to be marketed. His misgivings were given no consideration. The product was introduced into the Los Angeles market as the location for the kick-off promotion. Fly Charmer was successfully tested in California in the summer and the introduction was early the following spring. Unfortunately, the predominant fly species in the spring was not the common housefly that was so effectively controlled by Fly Charmer. In the spring a species locally referred to as a hover fly emerged in large numbers. The hover fly would not land on surfaces and feed like a common housefly, preferring to hover in the air until evening and then cling to the ceiling of a building or house. To be effective, the Fly Charmer product required that flies land on a small platform and feed on the sugar, water, and pesticide mixture on its surface. It worked very effectively for the common housefly, but would not kill the hover flies because they were not attracted to the Fly Charmer. Within one month of the disastrous introduction, carloads of Fly Charmers were consigned to the dumps of major cities across the country where the introductory inventories were stored. The president of the company presumed to know more about product testing than the entomologist who dared to ask a critical technical question. The young man was silenced by the president's dominating position power. The president had his following and his folly.

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The following are the common origins of sporadic presumed power: Origin Self-service Convenience

Power Source Wants and needs Control of circumstances

Presumed power may be used for the occasional satisfaction of specific needs and wants or to facilitate convenience. SELF-SERVICE

The use of sporadic or spontaneous presumed power is almost always founded on self-satisfaction. The rapid or responsive attempt to influence or provide a personal benefit will seldom involve more than two people: one who seeks the benefit and another who allows it to take place. The most consistent origin for sporadic presumed power lays within ourselves. When we have control over our time, it becomes possible to satisfy many personal wants and needs with presumed power. To accomplish this we sometimes take matters into our own hands. The salesman in the field who is having a bad day decides he needs a break and takes the afternoon off to play golf. He will not call his manager to seek permission; rather, he presumes to have the power to give it to himself. An office worker calls in sick and goes shopping. She has presumed to have the power to set her own schedule for that day. The personal use of company equipment is another area where presumed power is used to satisfy a need. The company car, copy machine, laptop computer, cell phone, or pager may be a few of the items we give ourselves permission to use. Whenever we are able to usurp the time, materials, money, or other resources of the company for our own benefit, we are presuming to have powers not otherwise provided. When we act without authorization that is normally required, we presume to have the power of our superior. CONVENIENCE

Consider the plight of a crew foreman who has been asked to provide one of his workers with a tool that requires a requisition from the front office. He will lose valuable hours doing the red-tape paperwork for a small piece of equipment he knows will be used for no more than an hour. Justified by saving time, he goes to supply and asks the clerk for the tool for one hour. He gives the clerk an IOU and walks out with what his worker needs. A shipping clerk in New York answers the telephone at quarter after four in the afternoon to the anxious voice of the production manager at their

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plant in San Francisco. The manager asks if his weekly truck has left New York and learns it is in the process of final checkout before the doors are sealed. He has overlooked a very important item needed with the shipment, but if he does not get it with the rest of the load his production run for the coming week will be held up or they will have to ship by air, which is too costly. The clerk is asked if he can hold up the truck and get authorization to include the item. "Relax," he tells his friend in San Francisco, "I'll get it on the truck and send it on its way within a half-hour. Put the item on your order for next week's truck and I'll ship it now, but don't count it into inventory till next week. I'll send my bill of lading for next week's truck to include the item, but it won't show on the shipment going out today." After receiving thanks from his plant manager friend he wondered how far out he had extended his neck. Yet presumed power got the job done, and the clerk thought the company was better served by it. Convenience can be a strong motivating influence to initiate sporadic presumed power. SUMMARY

The use of presumed power can be very subtle or flaunted with audacity. It may be used by those with the ultimate power in an organization or by those who only work part time. In all of its applications, it provides a degree of power that is not intended to be used. It can make a significant difference, as with the company president who presumed to be more technically competent than the young entomologist, or of little significance at all. Most presumed power is developed and used over a period of time, yet it can be transitory and used for only one specific occurrence. When it is selfserving, it usually will benefit only one person, perhaps to the detriment of others. The most positive use of presumed power is when it is provided to fill the power void of managers who are indecisive. Power is needed to manage, and it will come from some source in the working environment even if it is acquired by presumption and used by a conscientious employee. The use of presumed power to conveniently provide service or be helpful is also very positive. There is risk involved when it is used for convenience, since it exposes the one presuming to hold the power to a charge of having acted without proper authority. In these situations, presumed power is intended to facilitate, and is applied as a power booster more than an individual act to use power that is not authorized.

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SIX Policy Power Policy power is unlike any of the other power positions. The objective of using policy power is to eliminate authority rather than to use it. Policies are established to provide rules that all members of the organization are obligated to follow. Most employees understand that policies provide guidelines that are established to benefit the company and its employees. There are those who will also seek to create a personal power base by finding ways to become exempt from policies that get in their way or inhibit their ambition. The objective in circumventing the rules is to provide benefits only to the one who perpetuates the infraction. Most policy breakers do not want to be discovered, as they act alone and use this power intermittently. Occasionally there are people who try to establish an elaborate system of bypassing policies in order to provide an ongoing personal power base. To accomplish this, several fellow employees may be persuaded to become involved in supporting or directly participating in the subterfuge. POLICIES REPRESENT AUTHORITY

Policy power cannot be selectively used as a management tool in the same way as position power or any other of the positions of power. Policies are broken to provide an individual with special privileges or benefits not

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available to those who abide by the policy. This will not usually provide power that can be used over others in the organization. However, when the one in charge either supports or ignores the policy infractions, those who garner the benefit do so under position-power protection. To be viewed as positive, policies must be recognized as universally applicable to all employees. Their fair and equal implementation and enforcement is essential to prevent the perception that all policies are negative. Employees can tell the good ones from the bad ones, but they also know that some workers will comply and others may not. In general, most people find that the policies of their company are reasonable and acceptable, and they will follow them with little inconvenience or comment. The policies of an organization represent authority at the highest rank. Yet enforcing them is delegated to managers at nearly every level in the hierarchy. It is interesting to note that the manual of official company policies, or whatever form is used, will usually have the signed endorsement of the president of the company. The authority for establishing policy goes high in the organization. Some policies are not actually articulated, but are deferred to a statement such as, "Our company fully endorses Equal Employment Opportunity for all applicants." Companies do not often change their policies. Most have been in force for years and may be reviewed only occasionally for relevancy, but too often they are instituted and then ignored. Policies that become obsolete need to be removed or revised if employees are to take them seriously. When employees are left to selectively ignore some policies and observe others, it is their discretion that determines which are relevant and which are not. There may even be some confusion as to who is responsible for policy enforcement. Managers should make it clear that there are no exceptions to established policies and that they will enforce them. EXCEPTIONS TO ENFORCEMENT

Approving an exception to established policy can be necessary and understood when it is made for the good of the company or its employees. On rare occasions, a policy exception can be justified to benefit one person. These exemptions are usually for hardship situations or handicapped employees. Problems arise when a few known policy breakers are immune to discipline. One of the best courses of action is never to allow any policy to be routinely ignored. Following the company's edicts should apply to everyone, from the owner or CEO to the part-time employee. Fortunately, there are surprisingly few rules that, if broken, would provide anyone a major benefit. On the other hand, a policy that is routinely disregarded by one group of employees can provide a reason for low morale or conflict with others who are not in a position to break the policy and get away with it.

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Los Angeles Company Example

The international headquarters building for this company is located on the "miracle mile," which is Wilshire Boulevard in Los Angeles. Commuting to this area from almost anywhere in the Los Angeles area is a frustrating task. Three executives who lived north of the office in Ventura county had a thirty-five-mile commute. They could drive to the office in forty-five minutes if their entrance on to the Ventura Freeway was by six fifteen A.M. Any time after that, the commute could take from an hour and fifteen minutes to an hour and a half. They reached the office between seven o'clock and seven ten most mornings. The official office hours were from eight A.M. to four thirty P.M. If these executives left the office by four ten P.M., their ride home would take the same forty-five minutes of driving as the morning's commute. Should they delay leaving the office to four thirty P.M. (the official closing time), it would normally take one and a half hours or longer to reach their homes. Since they normally gave nearly a full hour of extra time in the morning, they felt justified in leaving twenty minutes prior to the official closing time. Many employees experienced similar commuting problems and solved them in the same way by an early exodus. The president of the company ended this practice with a memo to all employees reaffirming that the policy of a four thirty P.M. departure time would be strictly enforced. The policy called for termination of any employee who left early more than three times during the year. It had been confirmed that many of the employees who were leaving early also arrived late. There was no official way to tell who had arrived early and who did not. By strictly enforcing the departure policy, the president reestablished fairness to all. Perhaps a better solution to the policy problem would have been to create "flex time" hours to accommodate those who wanted to arrive and depart early to shorten their commuting time. There was also discussion of exempting some levels of management from the policy, but that was not adopted. In reality, some managers exempted themselves on occasion by leaving for "business appointments" at convenient hours. The only sure way to locate rule breakers is to maintain a watch for strict compliance with the few policies that would provide a benefit to the guilty party. Those who expect to significantly gain by practicing policy power (using the power of exemption) are the ones who will break policy. If these people are not disciplined, others will observe that policies are not enforced and an epidemic may follow. Since the primary management objective is to prevent anyone from exerting a negative influence (power) over productive people, managers who discipline policy breakers will improve their image with those who are being affected. This is a job that never ends, since policy breakers will surface in the most unlikely places. When a manager identifies and stops the actions

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of those who seek policy power, he or she will be recognized as a manager who makes a high priority of protecting the interest of all employees. This action is well worth the effort. ESTABLISHED POLICY POWER

The following is a true case of what happened in a major American corporation when specific policies were routinely disregarded for one individual. The job of national sales manager for this company required that he had to travel three weeks in nearly every month of the year. His travel expenses were high and required a considerable amount of cash, as well as the use of a company-paid credit card for use in purchasing airline tickets. Over a period of time this executive had gained approval to have his expense reports mailed directly to the treasurer of the company, who would immediately issue a check to cover the expenses and deposit it into the sales manager's checking account. The sales manager's direct supervisor, a marketing director, did not receive his expense reports and did not approve or disapprove the expenditures. The treasurer, understandably, delegated the responsibility to one of the accountants to check the correctness of the figures and deposit the checks he authorized. He also assumed that a postaudit would be made of each expense report, and if adjustments were needed, they would be handled within the marketing department. This did not occur because the review policy was routinely ignored. When this marketing director moved on to a different position, he was replaced with a new manager from outside the company. The new man quickly attempted to put a stop to the direct payment by the treasurer of expenses to the national sales manager. The company's president questioned the need for tighter control, pointing to the fact that the policy exception was in place even before he joined the company. This information did not stop the new marketing director from indicating that a poor example was being set for the rest of the salesforce. "The authority to approve expenses is placed in the marketing director's position. This authority is necessary to control the expense budget," he stated in defense of his inflexible position. The marketing director made his point by auditing the sales manager's past two years expense reports, which proved he had systematically defrauded the company of $25 to $35 thousand in each of the two years audited. It was later learned that the fraud had been going on for nearly ten years. In addition to the sales manager's expense problems, he also corrupted two other managers whose expenses he approved. Further digging revealed, unknown to anyone, that he had two wives, two families, two company cars, two approved separate phone numbers listed as business phones, and other charge accounts he managed to have routinely paid without being audited. With all of the complications in his life, one can recognize that he badly needed money.

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This sales manager had been with the company for over sixteen years and was not once suspected of deception. The end result of his policy-power exploitation was that the national sales manager and two other employees lost their jobs. New procedures were quickly adopted to ensure that all company policies were followed. The point is this: Policies must apply to everyone. Policies that are routinely ignored should be eliminated. The flagrant disregard of a policy may be creating a problem far beyond what is seen on the surface. Management should review its policies to be sure they produce the intended results. The rule should be that if a policy cannot be enforced, it should be eliminated. The routine disregard of policies can be developed into a power base that may disrupt management action and create a negative business environment. In the example, the national sales manager created a power base far beyond the imagination of anyone. His ability to manipulate policies also corrupted others. Managing policy infractions becomes a necessity when it is obvious that there is a problem in this area. Identify which policies are being ignored, then identify who would benefit from the transgression. This leads to an evaluation of the effect of the offender's actions. How one deals with them depends upon the extent of the damage they are causing. This is a four-step management process: Step One Step Two Step Three Step Four

Identify which policy is being ignored. Determine who would benefit. Evaluate the seriousness of the offense. Take remedial action.

Should the discovery of a problem in the workplace reveal that it is caused by a policy infraction by an unidentified person, the four steps are in the correct order. Should it first be discovered that a specific person is a policy breaker, then Step Two becomes Step One and Step One becomes Step Two. Those who enjoy the benefits of policy power are usually very selective in how they establish their privilege. Most will seek policy exemption for a specific personal purpose. They try to avoid any type of confrontation, preferring instead to remain undetected and unchallenged. This makes the detection job very difficult and is the reason that the problem often becomes evident before the person responsible for causing it. POLICY POWER AND PERSUASION

There is little question that to develop a significant policy-power base, such as in the national sales manager example, one must be effectively persuasive with the one who has the authority to overlook or grant the exception. It is also likely that persuasion power coupled with presumed power is used to maintain the situation. The combination of persuasion and presumed power is covered in Chapter 7.

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POLICY-POWER POTENTIAL

There is the potential for some employees to break policies at any time and any place, which is often done with little concern by the manager responsible for enforcement. In some situations a ten-minute coffee break will be extended into fifteen or twenty minutes by everyone. The consequences of this infraction are not significant unless only a favored few are allowed to take advantage of a longer coffee break, which may cause conflict between the employees in the workplace. Company Parking Lot Example

The unauthorized use of a restricted parking area by the company's outside sales representatives, who occasionally visited the home office, created resentment in many employees who worked there. Like many company parking lots, there was an area for general parking that allowed the first to arrive to take the better parking places. This company also provided the usual area designated for visitor parking. It was the habit of the company's sales representatives to park in the visitors' area when they occasionally visited the office building. The rationale was that since they did not work in the office building, they were visitors and had the right to park in that area. Although there were complaints from time to time, nothing was done to stop this practice. When a two-day district sales meeting was held at the home office it resulted in twenty of the salesmen's automobiles filling all the space designated for visitors. The policy infraction became very obvious. It also happened that the president of the company called an emergency meeting of the board of directors on the same day as the sales meeting and when the board members arrived in their own cars they had to walk the equivalent of a long city block, in a light rain, from the general parking area to the office building. Following the president's very loud but short position-power interruption of the sales meeting, twenty cars were seen quickly scurrying for spaces in the general parking area. One can never know when a policy infraction will become highly visible and create a problem of disproportionate severity to what one may view as a minor incident. KEY AREAS OF POLICY-POWER ABUSE

There are only a few types of policies that provide anyone with sufficient power or personal benefit to make the risk worthwhile: 1. Financial policies—budgets, expense accounts, approval of payments, credit purchases, returned merchandise, cash receipts. 2. Equipment and materials use—company vehicles, specialized equipment (fork lift), supplies and materials, computers, copiers, cell phones, pagers.

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3. Accounting documentation—this area is specific to the organization involved. 4. Time-use accountability—office hours, outside sales and service, personal use of company time, abuse of "sick days." Policy power can be developed for individual benefit when money, equipment and materials, accounting documentation, or time use are the subject of the policy. Depending upon the type of organization and the way legitimate power is developed and used, there will be either a high or low potential for policy problems to emerge. Some organizations will issue each employee a manual or booklet of their established policies and request a signed statement that they have been read and are understood. I have also seen signs on the wall of some companies that make humorous comments relating to policy, such as, "We have one policy, the boss is always right," or "Company Policy, Rule One; The boss is always right. Rule Two, refer to Rule One." Obviously there is considerable latitude in how companies view their policies. Financial Policies

Most managers believe they have control of the money allocated to their area of responsibility when budgets are not exceeded. This is an extremely naive perception of how money is used. Over time budgets tend to become larger with very little justification. Funding for projects no longer being pursued is common in government, public schools, state universities, and even some businesses. This practice is much less prevalent in private schools. Policies that require budgeted money to be returned if it is not spent usually prompt last-minute spending for unneeded items. It is much easier to control budgets by releasing money as needed for justified requirements than to attempt restricting expenditures under a budget cap. Credit Control Example

When this function is managed properly, it will facilitate the ability of the sales department to plan orders for important customers who may frequently run close to the limits on their lines of credit. When credit limits are set and administered with little or no flexibility, the credit manager will be controlling the credit policy for compliance rather than for the satisfaction of their customers' need for credit. A very different situation exists when the credit policy is managed with sufficient flexibility to accommodate special circumstances. In this case the credit manager will work with the salespeople to learn when exceptions to the established policy are anticipated. Managing the situation rather than the policy will be evident to a manager who is knowledgeable of both the policy and the people it affects. The type of business or organization will dictate whether a strict adherence to policy is required or if flexibility to accommodate circumstances

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can be applied. Strict adherence to policy reflects the use of the position's authority (policy power), whereas a less strict application of the rules brings into play the power in the hands of the people who are in control. Equipment and Materials Use

A sizable consumer food-products company estimated that over 25 percent of the miles put on company vehicles were the result of unauthorized personal use. This abuse is difficult to control when it occurs simultaneously at three levels of management. In this case salesmen, district managers, and area sales managers were all exempting themselves from the policy regarding personal use of company vehicles. Trucks and specialized equipment were also misused for personal purposes. Office equipment, especially copiers, were routinely used in violation of company policy. The question that companies ask themselves relates to the cost of controlling the problem compared to the loss of control over the circumstances. When the abuse becomes outrageous, and in many cases it eventually does, the company will take action to make the necessary changes. A steel manufacturing company with a plant on Neville Island, Pennsylvania, had a company policy that all automobiles leaving the island had to have their trunk open until they passed the guard station at the edge of the company property. Yet the loss of tools and materials continued unabated by the policy. It was not until a large industrial lathe was missing that a private-investigation company was hired to solve the mystery. The lathe was driven out on a company truck, right past the guards, with the explanation it was going to a repair shop. No paperwork was required to be presented. The small tools and materials were sent out by United Parcel Delivery at company expense. New appropriate policies and a few new employees resolved the situation. Accounting Documentation

In most companies there are ample accounting procedures to record vast quantities of numerical information and provide a variety of reports on standardized information-processing documents. When one usurps the power to exempt the input of specific information, or to restrict the distribution of the reports that are produced, a significant amount of policy avoidance may be evident. When data are reported showing only the net sales for an operation, it may satisfy the sales manager but not others. Net sales may indicate accurately how many dollars of various products were sold, but it does not tell the most important information concerning the success of the operation. The sales manager may be able to evaluate the performance of his or her salespeople on the basis of net sales, but not the success of his or her department. Here is a sample of what the one responsible for profits needs to

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know: product returns, the number of canceled orders, products back ordered, net sales by product, net revenue by product and product group, related sales costs, advertising and product promotion costs allocated by product group, prorated corporate costs, and a number of other possible calculations that are figured into the cost of doing business. In cases where there are unexpected abnormalities, unexplained shortfalls in revenue, or exaggerated expenditures, the manager in control should look for someone that has found a way to benefit from the situation. Policy power may be at work. Time-Use Accountability There is no doubt that everyone occasionally wastes time. This is not a policy problem. When one person or a particular group can exempt themselves from time constraints that are applicable to others, a problem is in the making. The example of the employees who were leaving their office twenty to thirty minutes before the official closing time is an excellent illustration of what happens when the policy is not enforced. Even though in the example there seemed to be justification for an early departure, the managers were engaged in a self-benefiting action established against company policy. Policy problems that affect many can and must be corrected. It was several years before flex-time was instituted to allow employees the opportunities to avoid undue traffic delays during their commute to and from the office. This was a case where the policy did not serve either the company or its employees. It was outdated in view of current traffic conditions and should have been changed years before. Policies should not be continued when they provide no benefit. Without a punch clock it is difficult for employees to account for their time. Employees who work away from the environment of an office will provide reports of how their time is used in the pursuit of company business. These can be checked. With the advent and wide use of pagers and cell phones, it is becoming more and more difficult to exclude oneself from contact for any length of time. With the continued rapid development of electronic data access and the vast amounts of data that are almost instantaneously available, the quality use of time is also more measurable than ever. In this era of very rapid communication of all types, those who do not make the best use of their time, or try to use company time for personal profit, find it very difficult to avoid self incrimination. SUMMARY Should managers be concerned with policy abuses on a day-to-day basis? Probably not. The problems caused by the circumvention of policies are not usually systemic in the organization and can normally be handled with one-

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on-one redemption. In situations where ignoring policies brings harm to the company or its employees, managers must determine how best to resolve the problem. In situations where the policy cannot easily be enforced, perhaps the answer is to change or eliminate it. Policies are most often broken for personal benefit. When one person or a group have developed a way to avoid a policy and replace it with a direct gain, it is the manager's responsibility to uncover and correct the subterfuge. In many situations the problem is that employees perceive that special consideration is being bestowed by management on the policy breakers. This happens when there is no discipline imposed on those who evade policies. However, special circumstances may permit a well-noted exception. Consider this true case. A young field-research entomologist who had been with his company less than a year was about to embark on a critical three-week trip. His assignment was to visit over thirty research experiment stations in the South and Southeastern parts of the United States to establish the acceptance of projects essential to the company. It would be a grueling trip by company car and require long hours of driving between contacts. The young man had been married only two months prior to the trip. He appealed to his boss to allow his new wife to accompany him and do a significant part of the driving. The request was granted despite the fact that company policy forbade the wives of employees to accompany their husbands on routine company trips. There was no question that this exemption to policy was a concession to the young entomologist, but was this a serious problem for the company? The answer is that even though an advantageous policy exception was allowed, the company also received a significant benefit by the assistance of the wife in driving while the entomologist recorded and analyzed his notes for speedy forwarding to the company. No power was used that affected any other employee. The company notified those that needed to know that the wife was accompanying her husband as an assistant in the work that had to be done, which put an end to any reasonable protest. Some of the examples given in this chapter note extreme policy-power situations that are not common; neither are they remote. Serious and unauthorized policy exemptions do occur in most companies. The problems they create may not become serious until the company president calls an emergency board meeting on a rainy day. Competent managers do not allow policy power to become established in their area of responsibility.

SEVEN The Power of Persuasion The power of persuasion may be familiar to most people. Yet we seldom equate what we see and hear around us as the use of power. The advertising on display in print media, billboards, the radio, and on television is so overwhelming that we have become desensitized to much of its influence. Yet many organizations spend more money on developing a convincing means of persuasion than they do on research and product development or any other individual endeavor. When persuasion power is used to influence the thinking and actions of others, the power is real, and it makes a significant impact on every organization no matter how large or small. Corporations succeed in convincing employees, the government succeeds in influencing the citizenry, and individuals can be successful in persuading each other. We have been told that people cannot be convinced against their will, which may be true, but for persuasion power to be successful it only needs to convince one individual who has the power to influence others to follow. THE POWER OF PERSUASION IS POSITIVE

As a general rule the power of persuasion is beneficial. In most situations the one who is persuasive must offer convincing evidence or provide other

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incentives to be believed. The convincing arguments offered by a gifted politician can propel that- individual into the highest office of our country. This can be accomplished even when the statements offered are either untrue or distortions of the truth. In either case, those who vote for the politician believe they have done a good thing and are content with their decision. There is no power in any organization more capable of influencing change than the power of persuasion. Position power by itself cannot impose the magnitude of change that can be accomplished by a convincing message. Position power may enforce the suppression of people, even into slavery, but when a populace is persuaded that taking the lives of millions of people is a good thing for the country, we see the unbelievable impact of the power of persuasion to either change opinion or suppress reaction. Facts can be irrelevant to the one capable of persuading others that what he or she says is what really matters. This situation can take place on the international stage or within a small organization. The power of persuasion is paramount to all other uses of power, especially in a hierarchy, where the barrier of organizational strata often separate the users of the power from those most affected by it. The importance of this statement deserves the clarification of a short example. In the strict hierarchy of the U.S. Marine Corps the most widely recognized message of persuasion employed in the recruiting of new marines is the statement that they need only "A few good men," and of course those who become Marines believe that they are one of the few. Throughout their training and experience as Marines, men and women believe that the severe training, strict discipline, and self-deprivation required to become a Marine are all worth the effort. The message is so deeply ingrained in the life of a Marine that most who serve continue to believe they are special long after they have left the corps. This is a testament to the power of the message and the persuasiveness of its presentation. No amount of top-down position power can instill that loyalty or response to a given order. Through the power of persuasion, Marines are so convinced of the exclusivity of the corps that, for many, this conviction lasts a lifetime. ACQUIRING THE POWER OF PERSUASION

Obviously there is no one way or assured method for developing the ability to become convincing and persuasive. There are several techniques used by people who must be convincing to succeed. These techniques can be successfully employed by anyone when they are properly utilized. In the following list, the manager's techniques for persuasion, a specific element of persuasiveness is identified with people of different disciplines in order to illustrate the concept:

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Technique Novelist Lawyer Teacher Salesperson

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Effect Creates immediate interest in the topic. Uses facts to construct a convincing strategy or argument. Tests for understanding and seeks agreement. Establishes urgency in responding to a message.

To be persuasive, one must create immediate interest, present factual information, seek agreement, and establish an urgency to place the proposal into use. One outstanding skill is characterized by each of the four specific techniques that make up the overall method of being persuasive. Although this list applies specifically to managers, it is usable by anyone. Nonmanagers can use the first two elements of the technique with their superiors and have outstanding success. Managers will understand the proposition presented by subordinates and will determine for themselves the degree of urgency required. Normally, subordinates will not be in the position to be persuasive about circumstances that have a significant impact on the company. Nevertheless, when an employee at any level in the organization can influence decision makers to accept his or her ideas or proposals, this person has gained access to the power and authority of those who have become convinced. The planning and development of a persuasive message or proposition will be minimal for nonmanagers, as their influence is mostly strategic and infrequently put into use. Yet those with authority will spend a considerable amount of time in preparation before making a proposal that they expect to be influential and convincing. Integrated into the planning should be the four elements of the manager's techniques for persuasion. The Novelist

One of the key elements in the telling of a story is to get the reader or listener quickly involved. Attracting one's immediate attention encourages one to read further by creating interest and inquisitiveness that must be satisfied. Nicholas Evans, author of The Horse Whisperer, opens his book The Loop with this attention-grabbing sentence: "The scent of slaughter, some believe, can linger in a place for years." The famous author Dale Carnegie, who wrote the much-read book How to Stop Worrying and Start Living, offers as his opening statement for this volume, "In the spring of 1871, a young man picked up a book and read twenty-one words that would have a profound effect on his future." The inciting words of these very different but attention-getting opening statements should sufficiently attract the attention of most readers to ensure that they continue. To become persuasive, we must first have the attention and interest of those whom we intend to impress. With the power of a novelist, those who

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wish to be persuasive should construct an opening statement that will focus attention on a specific part of the presentation that is to follow. When a tax accountant presents his client with the current year's return to be signed and forwarded with a check to the Treasury Department, he or she does not want to start the discussion of the completed work with an apology for the great amount of taxes his client will have to pay. It might be better to say something like, "You have had a most successful year, my friend, and I appreciate this opportunity to show how we have helped to enable you to enjoy the greatest benefit from your work." The focus is on the fact that the client had a very successful year, rather than a less-attractive reality that the next action is writing a large check. Attention is also focused on the selfserving assumption that the accountant has done an outstanding job. Establishing immediate interest in what is to follow is the first requirement for one who wishes to influence another. The Trial Lawyer

Trial lawyers who are not persuasive find employment in other areas of the law. The hallmark of success is centered on convincing judges and juries that what they say is the most believable argument for the situation at hand. Meticulous research to establish authoritative precedence and permit the presentation of reliable evidence is presented on behalf of the positions they take. Trial lawyers want to be believed so the information they offer is presented in a way that it can be accepted as the truth. Nothing is more compelling in the presentation of a convincing message than indisputable facts. Having gained immediate interest in what is to follow, a well-prepared proposition is offered with a believable and sincere presentation. To be convincing, one should assume the role of a trial lawyer in the preparation of a reasonably acceptable position on the matter. The Teacher

Testing is a part of every teacher's routine. It is important that students understand what has been presented in order to establish the probability of accepting what comes next. If one is to believe that knowing the value for two of the three letters in the formula A + B = C is all one needs to know to determine the value of the third letter, the method of calculation must be presented in a way that is comprehensible. By testing, one can confirm whether what has been presented is both understood and accepted. Once we have the attention of our audience and have presented an authentic, sincere, and believable message, we must then confirm cognition and acceptance. Whether we have been sufficiently persuasive is learned by asking questions (testing). This is not done by direct questioning, such as, "Does everyone agree with what I have presented?" Testing agreement is

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best determined by what is termed "situational involvement." Present a situation to the listener or group and then involve that person in it by asking how they would respond. The situation offered is one that is based upon the proposition for which the speaker is trying to gain acceptance. Once an audience is involved they will hopefully respond by giving an answer that shows comprehension and affirmation of the speaker's original proposition. Following up on the A + B = C example for situational involvement, the speaker would ask his listeners, "If A = 1 and B = 2, then what is the value of C?" If all conclude that C has a value of 3, then there is agreement with the proposition that when one knows two of the values for A, B, or C one can determine the third. By this method the message is confirmed as being persuasive. Of course, we would like to know that they have also learned how to determine the value of A when the values for B and C are given. The acceptance of ideas starts with learning the truth, rather than with emotional involvement. The Salesperson

Creating a sense of urgency is usually not too difficult when one has stimulated an interest, presented a factual proposition, and confirmed that it is accepted. The decision one wants made is a person's commitment to take appropriate and timely action. The one who is trying to influence the decisions of others cannot wait for them to independently make up their minds. Establishing a decision-making urgency is sometimes necessary. The often-taught closing for selling cars is called the "Yes! Yes! Yes!" method. It works like this. Following completion of the sales presentation, the salesperson asks three questions that can only be answered with a yes. "This is the model you have decided upon, isn't it?" "Yes!" "Is this the color you asked for?" "Yes!" "And you have already agreed that the price is right?" "Yes!" "Then let's write it up and put you behind the wheel of your new car." This method of closing does create a sense of urgency. Of course, the closing statement may be answered with a "No," in which case the salesperson will ask, "Is there something more you would like to know?" Not all attempts at being persuasive require immediate action, but it is important that there is a clear follow-up activity with an idea of how a response will be handled. In most situations, giving assignments, confirming plans, or taking a first step to implement the proposition is sufficient to confirm that one's persuasion has been effective. W H O USES PERSUASION POWER?

The simple answer to this question is that anyone who is convincing or influential can and will develop some level of persuasion power. When we become convinced by another individual that he or she is speaking the truth,

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or what is proposed is reasonable and can be accepted as factual, we have come under the power of persuasion. This action can take place at any level in the organization between one person and another. It also may involve many individuals. Persuasion power is usually considered to be broadly beneficial. When it is used inappropriately it can be more destructive than any other force. Persuasion power can also be quite fickle, for when we are presented with a more persuasive message from another source, we may quickly change our minds. Upper-Level Management Persuasion Power

In the higher echelons of an organization, persuasion power can be subtle and yet effective. At middle and lower levels, persuasion power may be more forceful and directed to individuals or smaller groups. When a company wishes its employees to accept a change, it may present convincing information over a period of time that will eventually play a decisive role in the acceptance of what it wishes to bring about. The change can be as simple as repainting the color of the walls in the company cafeteria that may inconvenience some employees with a temporary adjustment of the time they eat their lunch. Those affected will be notified and provided with the needed information in a way that induces their good-natured acceptance of the inconvenience in order to receive the aesthetic benefit of a better-looking cafeteria. Persuasion power becomes even more important when big changes are to take place. When a major corporation decided to move its executive offices from Cleveland, Ohio, to Houston, Texas, it was very concerned about damaging the effectiveness of its corporate functions and demoralizing the key members of its staff. The monumental anticipated problems brought about by the change were overcome by a substantial persuasion-power effort to facilitate the position power used in making the decision. Once the determination to move was made, the power of persuasion was directed to its key employees to soften the significant changes it would bring to their lives. The eventual success of this operation proved without a doubt that persuasion was the most critical element in making it possible to solve the enormous problems that occurred during the moving process. It should be noted that the company included some very significant monetary and personal-comfort incentives to enhance the power of their persuasion. It is not unusual to combine other incentives to heighten the effectiveness of persuasion. Middle-Management Persuasion Power

When middle managers use persuasion with employees, it is usually selective and often directed to a small group. In these situations the element of leadership becomes an important factor. Employees who trust their manag-

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ers and have had many good experiences with them will be willing to be convinced by their leader. In situations where the middle manager wishes to influence his or her boss or another manager in a different department, it is usually a direct one-on-one involvement. The method of convincing that one manager uses with another is more personal and less formal than one would use when confronting a group. For this reason, factual arguments, established data, and mutually beneficial objectives should be used to enhance one's persuasiveness. When one wishes to influence another manager, either upward, downward, or laterally, one's intentions are usually quite visible and recognized for what they are. It is very difficult for one person to make an effective appeal to another without conveying that the first intention is to influence. For that reason, the need to be perceived as offering a factual argument is critically important. Most people like to believe that for them to be convinced the argument must be rationally informative rather than emotionally compelling. The manager's techniques for persuasion can be very effective in one-onone situations. Obviously, a manager will not use the same approach for his or her superior as for subordinates. When appealing to a supervising manager, one should emphasize the factual basis of the proposition and try to influence the superior's intellect rather than to rely on enthusiasm or place urgency into the persuasion. Recognizing the truth in what is said will prompt enthusiastic acceptance and expeditious action by the one in a position to use his or her authority and assure that a sound proposal is acted upon. The Persuasive Power of Nonmanagers

At the lower levels in an organization, persuasion is used by many and often very frequently. The conversational influence that takes place at this level is not necessarily intended to bring power to the user. Too often this takes the form of gossip or perpetuating a rumor. The element of truthfulness is missing in these attempts at being persuasive. For employees who have no position power or provider power, the most effective way to influence others is by persuasion. Anyone who has the ability to speak convincingly can develop power by what they say. When used by nonmanagerial employees, attempts to influence are often directed at another for personal gain. There are times, however, when lowerlevel employees court favor with their superiors by performing unnecessary acts and personal services. Managers should be aware when this type of action is taking place and quickly discourage it. The power one may garner from "kissing up" to the boss is usually of short duration, and the superior who allows this to take place will soon find that it is very divisive to the unity of his or her organization. In most firms some nonmanagerial employees will be able to establish a significant position of influence with their superior or other decision mak-

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ers. The power of this influence is often gained as the result of the employees' exceptional ability in fulfilling the responsibilities of work. Outstanding results will draw the attention of those in positions of authority. When a dependable performer has the attention of superiors, he or she can also develop a dialogue that includes factual statements intended to favorably influence the decision makers. The two elements necessary for nonmanagers to be persuasive are (1) attracting attention and (2) presenting a factual argument. It is through the recognition of one's abilities that nonmanagers can develop power and influence. It is not only by doing good work, but also by using the ability to gain recognition, that one brings persuasion power into the picture. As an illustration of the nonmanager's ability to become influential, consider how a salesperson may create a power position. It was not unusual for the North Central district of an agricultural-products company to find their ability to reach spring and fall quarterly sales forecasts was significantly compromised by unpredictable weather conditions. The district sales manager would often call each of his six salespeople to try and "dig up" some orders needed to close the gap between what was forecasted and what looked like underperformance. One salesman, working out of Minneapolis, always came through with the dollars needed to reach the forecast expectations. It was only natural that the district sales manager would listen to this man when he had suggestions to make. At the district sales meetings the sales manager would look to the Minneapolis salesman to lead discussions representing all six of the salesmen. He also would provide the favored salesman with a preview of things he wanted to discuss at the meeting in order to enlist his support with the other salesmen. It could be argued that the Minneapolis salesman deserved his position of influence with the sales manager and the other salespeople because of his performance. Nevertheless, it is risky for any manager to allow a subordinate to assume a position of power that detracts from the voice of authority. Most would agree that to be effective a significant amount of persuasive skills are required. A well-trained professional will know how to make a capable presentation and gain agreement. For many it is a short step to use these skills with the sales manager or others in a position of authority. In this way, those who are convincingly persuasive can acquire a degree of power with those in authority. It should be recognized that when one salesperson in the group develops a special rapport with the sales manager, the others will be well aware of this fact. This allows the one who has the attention of legitimate power to extend their influence to include power over the other salespeople. When this occurs it is not unusual for the one with leverage to become the group's spokesperson. In this situation we see persuasion power with the boss evolving into position power with fellow employees. If the salesperson does not abuse this influence it can be accommodated in the organization for the good of

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the whole unit. The risk that managers take in allowing one employee to assume a decisive role with their peers is that the one with the power may be enticed to use it for his or her own benefit rather than for the good of the group. When this occurs it is difficult for the manager to detect and correct the problem without creating friction. PERSUASION POWER COMBINED WITH OTHERS

With the exception of employees who have no other vested power, persuasion power is usually found in conjunction with one of the other positions of power. The power of providers can be enhanced when they are influential with those they serve. The position-power manager can lessen the impact of giving commands or directing actions by being persuasive with employees. One can also improve the participation of others by convincing them that it is important to take part. When combining persuasion power with any of the other forms, the objective is to superimpose a more effective method over the one that is less significant or may be objectionable. The most acceptable influence one person can impose on another is almost always the power of persuasion. There are exceptions for expedience and in emergency situations, when a more forceful position is needed. Persuasion power may not be the most efficient, since time is required to make the convincing appeal and create the urgency for action to take place. In most situations there is sufficient time to employ the most appropriate power combination. Usually a top-down power manager will try to be persuasive in an attempt to make his or her management style more palatable. On the other hand, those who depend on persuasion as the dominant influence in managing may use some form of position power to enhance authority. There is no arguing that managers using the power of their position can get the immediate attention and cooperation of their employees, though perhaps reluctantly. Persuasion and Position Power

There are three variations of this combination that are significantly different. Two will show how persuasion is used to make the impact of position power more acceptable. The third uses authority to strengthen the manager's influence. Variation One

It is easily understood that managers can be more effective when they get attention, are understood, and are believed when a reasonable motive is provided to take action. Nevertheless, developing the demeanor of one who is trying to be influential usually takes more time and more patience than

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power managers are accustomed to. Yet in the long run it takes less time to gain acceptance of a new concept or a change in plans when it is presented with the objective of being convincing rather than demanding. Strong topdown power managers have no problem in getting people to do what they want, but for employees to believe the manager is correct requires a certain amount of assurance. Forceful managers will usually attempt to be convincing by presenting what they believe are acceptable reasons why employees should do what they are asked. Since these managers believe that employees should do their job without any incentive, there will be few choices offered to convince otherwise. Obviously, this is not the attitude of one who is trying to be persuasive. The attempt to gain acceptance by offering good reasons is abrogated by the implication that employees are being unreasonable. Strongwilled managers do not believe it is necessary to persuade workers to do their jobs. Neither is creating a more enjoyable working environment a high priority. Managers who intend to be visibly in control will normally hire people with the ability to gladly comply with the authoritative management style. They are not too concerned with the nuances of dealing with subordinates. These executives can become more effective and will contribute to a more auspicious working climate for everyone, including themselves, if they learn that influencing employees to comply is more effective than compelling them. Variation Two

The manager who likes to use top-down power but is also a naturally persuasive person will combine these two positions of power very differently from those who prefer to use their authority and will only occasionally try to be persuasive. Managers should always be aware that anyone who can effectively sway the opinions of others will use this power whenever they have the opportunity. Accepting this concept leads to understanding why some executives who possess ample authority will often try to convince employees before using more forceful means. When managers have firmly established that they are in control, employees will realize that position power is always available should it be needed. For this reason, when persuasion is employed it is readily accepted and usually very effective. Those who manage from the full authority of their position but have learned how to communicate with consideration will discover that they have developed the most effective use of power a manager can possess. They have established their authority, yet are considerate about using it and their subordinates will believe that on these occasions it is necessary. This brings a great amount of efficiency into the management process. Even though these executives are skilled at being persuasive, they will not often negotiate with employees: They know what they want and how they want it done. Usually

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subordinates find little reason to question the intentions of a strong but convincingly articulate supervisor. They trust, respect, and believe that this person will use his or her authority for the good of the organization. This sounds very much like an acceptable definition for leadership, and that is what it turns out to be. Managers who have established their authority, and supervise employees with consideration have learned to perform the important tasks of direction and control with the most efficient and productive use of power that can be found in any organization. Variation Three

The third variation is a situation where the manager is a true user of persuasion. These leaders will first try to be convincing because they believe that employees who fully understand why they are being asked to perform a task, and have been given consideration, will be more productive. This executive places communication, facilitation, and motivation above the use of authority to get things accomplished. Nevertheless, failing to convince, they will use their top-down position power to be sure the tasks that need to be performed will be accomplished. As one would expect, those who augment their authority with communications that include the interests of employees are well liked because they invest time in developing relationships. If they are only modestly effective, they will sacrifice efficiency, but those who use position power as a backup will not compromise accountability to gain influence. These are still very effective managers, even if they are not the most efficient. Persuasion and Provider Power

In their preferred role as facilitators, providers are in the position to make those they serve more productive. When reaching to achieve recognition for themselves, it can be accomplished in two ways. Either providers are recognized as accomplished and constructive in the way they perform or they become problematic. When at their most effective, providers will not only perform well but also inquire how they can better serve those for whom they provide resources or services. If the provider is not an objective team player, he or she may attempt to establish provider power. To illustrate this point, consider the following example of how a provider can establish a power base. Persuasive Provider Example

One of the better-managed Fortune 500 companies maintains an extensive middle-management training program. There are six divisions in this company, all of which are required to have 100 percent of their middle managers complete the proscribed program. After each employee completes

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the training, their personnel file includes information about their current management abilities, attitudes, and potential for advancement, with a recommendation for further training opportunities if this is consistent with the employee's capabilities. A middle manager who has not completed the basic training program is at a substantial disadvantage when consideration for increases in pay, promotion, and advanced training become available. Because of this program's importance to the corporation, each division is required to furnish the training manager a list of those who are to be included in the program, with the priority of each candidate to be scheduled. The program instructor is an excellent communicator who has built a solid reputation with the company and with most of the division directors. The exception is one of the newer directors who has made an outstanding record for his division during the three years he has been its leader. A routine review of personnel records reveals that during the past year not one of his middle managers has been called to participate in the program. His telephone call to the training manager to inquire why his employees had not been included in the program was received with a note of concern and a promise to get back to him with the information requested within twentyfour hours. The explanation he received the next day bothered him considerably. He was informed that some of the other divisions were further behind in the training of their middle managers than were his. He was also told that the places reserved for his people were reassigned to other divisions with the approval of his managers, who were asked to defer their inclusion in the program. Further inquiry revealed that the training manager was playing favorites, and that in fact the new director's division was the least represented in all of the training schedules, but especially in the middle-management program. By using his provider power, the training manager could favor other divisions who were not doing as well as the one headed by the new division director. He used his skill as a very persuasive communicator with the people who were scheduled to take the training by convincing them that "in the best interests of the company," they should be willing forfeit their positions in the training schedule. The division director was not swayed by the explanation that his employees were being treated fairly. By confronting the training manager with the truth, he was able to put an end to the use of provider power that was prejudicial. He also put an end to the use of the trainer's influence in promoting the acceptance of the lie that others were more deserving of the training than his employees. When one is armed with the truth, it is easy to identify what is not consistent with reality. By being factually informed, the division director could place the integrity of the training manager in question, a position that providers adroitly try to avoid.

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Persuasion and Participation Power

It is the intention of those who engage in participation power to become more powerful and influential as a group than they would be individually. The group may be a few people who come together once for a special appeal, or it can be as large as the United Auto Workers Union. Since participation power is a group activity, the use of persuasion becomes more an act of intimidation than one of influence. When we think of the power exercised by union management, we find persuasion comes into the situation during collective bargaining action. Yet there is always the implied threat of a strike, a slowdown, or other work-related actions that turn the attempt to be accommodating into intimidation by a group who has a considerable amount of participation power. That is not to say unions will avoid using the power of persuasion, since they can induce their members to accept the offer of management even when it is not popular. They can also persuade management to accept a union offer that is not to its liking. The combination of persuasion power with the power of group solidarity is similar to having position power as a backup. The size and strength of the group's organization is always present, even when direct pressure is not being applied. The smaller the group, the less will be the effect of their participation power. On the other hand, small informal groups who band together for a specific purpose usually do not present management with monumental problems. Four or five managers who unite to ask their employer to change the date of a scheduled management meeting will usually find little resistance to their request. Should they try to secure a raise in the pay scale for their position, or even for employees who work for them, the power represented by four or five managers will not likely be sufficient to bring success. In these situations a small group will put forward the most convincing and persuasive argument to gain acceptance of their proposition. The collective action of a few managers may force consideration of a common problem, but if they are to be successful, the power of their persuasiveness will be the deciding factor. In general, large groups will rely heavily upon the power represented by participation in their organization, whereas small groups will focus their efforts on their ability to be convincing that what they propose is needed and reasonable. Persuasion and Presumed Power

In any organization the person who intends to use presumed power must use persuasion to establish his or her position. One cannot presume to have power and effectively use it without the cooperation of those over whom they intend to wield it. To secure this cooperation will require a consider-

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able amount of persuasion. To use and maintain one's presumed power over a period of time involves constantly convincing others that it is needed and that the value of support is worth their cooperation. For presumed power to be effective, it almost always requires that it be used in association with the power of persuasion or by mutual agreement. The example given in Chapter 5 involved new executives with top divisional management positions of a food-products company. The new president was so busy with the reorganization he allowed the even newer but very experienced vice president to presume having the power to run the day-to-day business while the president dealt with the problems of branch operations. Since there was no abuse of power or attempt to gain selfbenefits by the vice president, the mutual agreement for temporary use of presumed power was good for both executives. The persuasion in this example was accomplished by the vice president in his contacts with other managers, who normally would be in direct communication with the president. Skillful persuasion by the vice president that he was facilitating the president with his actions maintained a calm and trouble-free transition of power. Persuasion and Policy Power

In this combination the use of persuasion to establish and maintain policy power is closely bonded. Usually when one finds a way to be excluded from policy adherence, it is because the person in authority does not know what is going on behind the scenes. Obviously, in this situation persuasion is not required to establish a privileged position. Since the establishment of policy power is not common or usually of great consequence, it is quite often secured by persuasion. Someone in authority must be persuaded to grant another the exemption to the established policy. Here again, persuasion power is the most dominant force in supporting the use of a lessor position of power. In Chapter 6 the sales manager who was able to have his expenses repaid without the proper approval had persuaded both the treasurer and the president of the company that what he was asking was necessary. The power he was able to garner was considerable. Even when exempting oneself from a policy is justified with an assumption that it does not apply (as with the salesmen parking in the visitor's section of the company parking lot), the element of persuasion is involved. One must convince oneself and those who would enforce the policy must be satisfied that no harm is being done by the subterfuge or that those breaking the policy should be exempt. The moment of truth will come when the reason that the policy was adopted is confronted by the effect of its being abrogated.

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SUMMARY

It should be understood that the ability to use persuasion power is vastly different between individuals. Some people are naturally convincing, while others must work at developing the ability to become even marginally influential with others. For the most part, managers have exhibited more than an average ability to be persuasive in order to achieve a position with authority. Some will prevail by the power of leadership, which will instill trust and loyalty in their followers. Others will gain influence by the power of their ability to present factual rationales to support their positions. Managers must gain attention, present a truthful proposition, test its understanding, and then put their plans into operation with their own unique blending of the powers that work best for them. Most managers will use persuasion power in combination with one of the other positions of power. In my experience the skillful use of persuasion coupled with the power established by the authority of one's position most advantageously utilizes the strength of each. The accepted position-power manager who is naturally persuasive provides an efficient and usually very effective use of power that is applicable to most management situations. Whatever management style a manager normally uses can almost always be enhanced by the proper use of persuasion.

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EIGHT Power Enhancers The concept of a power enhancer or booster relates to how managers can more effectively use the power they posses. If a manager uses position power or provider power, one or more of the five basic power boosters will provide a way to make his or her management more dynamic and effective. THE FIVE BASIC POWER ENHANCERS

The actions that support a manager's power or authority are quite simple when compared to the complexity of managing. These power enhancers do not themselves provide a position of power, since they do not represent even a trace of authority. Furthermore, anyone can use them to increase their effectiveness, whether they are a manager or an individual in an organization. When properly developed and used in combination with one or more of the six positions of power, they will elevate the ability of the one who has authority to more capably manage and gain the cooperation of employees. Employees know when managers use their authority unselfishly or to serve their own ambitions. Use of the power boosters gives a more positive thrust to managers' actions. The following are the five power enhancers:

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1. 2. 3. 4. 5.

Communicate—factually, fully, and frequently. Facilitate—helping employees and their work. Motivate—address the motivation needs of key individuals. Evaluate—why employees excel or underperform. Support—the actions taken by employees to improve.

Power enhancers may be used to improve the effectiveness of any of the six positions of power. They may also be used alone or in conjunction with each other. Managers who can effectively develop and use these skills to boost the power they use will build a bridge of mutual understanding with their employees without giving up any of their authority. These efforts create trust, loyalty, and self-motivation in subordinates. They also expose problems and intuitively provide ways to eliminate them. Managers who fail to use power boosters are often perceived to be self-serving and indifferent. Those who are thought to be indifferent to subordinates will have trouble influencing them to become more productive or possibly even to recognize authority. The Power of Communication

Because of its importance, communication is listed as the first of the manager's five power enhancers. We are all familiar with references to the power of the pen. This would lead one to believe that those who can effectively communicate will generate influence with those willing to listen. Highly successful managers know that the most important element in convincing others is to be sure they are fully informed. The only way for this to happen is to communicate factually, fully, and frequently. Most successful managers use a simple formula that becomes a natural behavior pattern for how they communicate. There are many different ways to develop effective communications, but the essential elements are the same for all: Step One: Open with a simple, easily understood, and acceptable statement. Step Two: Add a sufficient amount of detail to give the statement purpose and direction Step Three: Secure a responsive agreement and/or confirmation of what is communicated. Step Four: Provide or develop the action plan for accomplishment or resolution of the message. Offer an acceptable proposition, establish purpose and direction, confirm understanding and agreement, then detail and discuss the intended action.

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Illustration of the Four Steps

The general manager of a supermarket calls his five unit managers together for a meeting. He opens the meeting by saying, "One month from today will mark the first anniversary of our grand opening. I want every customer who shops with us next week to feel that they are a part of that celebration." This opening is simple, easily understood, and noncontroversial. It is not likely to cause an argument or challenge. The manager follows his opening with, "I would like every department to feature a special shopping opportunity that will include some of the most often purchased items." This comment clearly sets out the purpose and direction of what the manager wants done. At this point the general manager asked each unit manager to provide an example of what they might wish to do in their department. From their responses he concludes that they understand what is to be done and agree with the general plan. To satisfy Step Four, the department managers are asked to provide their suggestions by the end of the next week along with all of the support details for the shopping opportunity they would like to use in their department for the celebration. It was once popular to say that an effective communication was accomplished when the speaker declared, "Tell them what you are going to say, then say it, and conclude by telling them what you said." Today's sophisticated high-tech means of communication provides many more opportunities to reinforce our verbal exchanges with hard-copy verification. Nevertheless, the reiteration of one's message, in one form or another, is a useful tool to ensure that understanding has been accomplished. The one initiating a message has the responsibility to secure understanding. When a supervising manager asks the sales manager for a copy of his sales forecast and he receives the current months estimate, he will be disappointed if what he was looking for was a projection for the entire quarter. When managers receive the wrong information, they need to be sure they communicated clearly. It is always correct to first determine what was asked when an unexpected response is received. Accuracy is difficult to achieve when communicating over the telephone. There is usually no written record of the conversation, there is no opportunity to read facial expression, and one cannot interpret body language over the phone. In many situations where verbal instructions fail to produce the expected results, the reason can be found in a failure to verify understanding. When one responds in agreement to what was said, it should be much more than, "O.K., I understand." When this is the response, the manager must ask, "What is it that you understand?" The response to this question will give information about what was heard, as well as what is asked. Step Four, which involves planning, also includes facilitating and motivating to enable the action that should follow. These are management concerns that give purpose and direction to support the task that is undertaken.

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Managers who are committed to staying in close touch with employees learn firsthand what is happening in the workplace. Even though gossiping is unproductive behavior, rumors and loose talk are normal occurrences in groups of people. Supervisors should not become watchdogs of the trivial, but it is important to keep well informed of work-related matters and take decisive action when necessary. What follows is an example of the danger that managers face when incorrect information is accepted and not verified by those in authority. Step Three Confirmation Example

The division director, specialty chemicals, for an American subsidiary of a German chemical giant prepared a reorganization for his division. Substantial changes were carefully documented in support of the reorganization. A plan of action was also detailed and placed into a presentation book that was expected to justify the need for the proposed changes. The action plan would remove the division from its current reporting relationship, which was to the corporate vice president, marketing, and repositioning it to report directly to the president of the company. The rationale was that specialty chemical products were sold into markets substantially different from the agricultural markets that were the primary business for the rest of the company. Growth of the specialty line was being held back by the need to follow marketing strategies designed for the field of agriculture favored by the marketing vice president. The volume of business forecasted for specialty chemicals represented a significant dollar increase for the company within a short period of time, but could not rival that of the large-volume sales of agricultural products. On the other hand, specialty chemicals were very profitable and provided the agricultural products division a way to mask their shrinking profits by combining specialty chemicals sales with theirs. The vice president needed the specialty chemicals sales to keep his profit numbers acceptable. Several managers in the agricultural products area were envious of the high praise the specialty chemicals group was getting for their excellent performance. The marketing vice president tolerated this divisional competitiveness, but when he was informed by the agricultural chemicals national sales manager that the specialty chemicals director had given plans for reorganization to the president, it was more than he could take. Upon hearing this, he called the director into his office and fired him on the spot. He then asked for a copy of the reorganization proposal. The specialty chemicals executive turned his back and walked out of the vice president's office, suggesting as he left, "If you want to read the proposal ask the president for his copy." Within an hour the vice president came into the office of the specialty chemicals executive and informed him that the president had no knowledge of the

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proposal and surely had no document outlining what was recommended. He then reinstated the director, took a copy of the proposal from him, and filed it away forever. Within a few months, die director of specialty chemicals left the company to accept a position in a more compatible environment. Communication is completed only when both talking and listening are included in the exchange. If a manager plans to use position power based upon an allegation, he or she must communicate directly with the one involved to reveal the facts before action is taken. Communicating factually, fully, and frequently is one of the greatest power boosters a manager can develop. When it is used in combination with persuasion power, communicating is highly effective. Facilitating Enhances the Manager's Power

Subordinate employees are often encouraged to seek help from their manager as a normal and expected part of their relationship. It is also important that managers be sufficiently in tune with the progress of subordinates that, when needed, they can provide assistance without being petitioned to provide it. When managers facilitate the actions of subordinates, their authority is enhanced with the power of a provider. Failed Facilitating Promise Example

A Midwestern manufacturer and marketer prepared to introduce a new line of consumer products. The technical services manager and general manager of the consumer-products division concluded a very successful and promising test-marketing program that foretold a bright and profitable future. The general manager presented the president of the company with a substantial and aggressive introduction plan. The president was so impressed he promised to contact each member of the board of directors with the outstanding test-marketing results and then personally recommend adoption of the requested budget for the introductory program. The general manager was to provide each board member with a copy of the product introduction proposal a week before the meeting. When the general manager came before the board with his proposal, he was shocked to find the president was not present and there was little support for his program. He had provided each member with a copy of his proposal a week prior to the meeting, as asked for, but the president had failed to contact anyone with the critical test-marketing results. The president's power to facilitate was clearly needed to accomplish what was proposed. The general manager was not placated by the president's promise that he would have another shot at getting the budget approved at the next board meeting. That timing would set back the introduction of the new line a full year.

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This account exemplifies the fact that power required to facilitate the work of a subordinate must come from one who has the authority to ensure the completion of the proposed facilitating action. The subordinate looks to those who can facilitate their work readily, dependably, and with no hint of reciprocity. The act of facilitation is not a bargain between a manager and an employee where the help needed is contingent upon some quid pro quo. Facilitating obligations must be completed as promised; the manager who fails to do so will be thought of as undependable. In the example, it is clear that the president of the company failed to communicate with the general manager that he had not completed the promised action. Neglecting to perform the two important management actions of communicating and facilitating resulted in failure. Those who are not managers also require direct facilitation and frequent support. These employees include those holding staff positions that may carry titles like manager, research scientist, salesperson, or anything else denoting an employee who is not a supervisor of others. The managers of these people must exert authority and power on their behalf when it is needed. The challenge is to facilitate progress without encouraging employees to become dependent on the manager's power. On most occasions when managers provide facilitation for nonsupervisory employees it will be for routine assistance. The manager will be die one to initiate the action; therefore, specific criteria to determine the need should be established. The objective is to provide assistance, resources, support, or even in those situations where the manager allows borrowed authority in a way that will not intimidate the employee or lead to dependency on the manager. The following is a checklist for facilitation: Contact—Make frequent and direct contacts with subordinate employees to determine needs. Participate—Share the risk-taking aspects of decision making to stimulate innovation and independent action. Energize—Provide power to support employees without causing dependency or requiring retribution. Protect—Ensure the security of the working environment from unnecessary and obstructive outside influences. By following this checklist the manager will learn what is needed, how help should be provided, when and what type of support is required, and where the manager should be involved to ensure a productive ambiance in the workplace. Contact The first step is the simple act of effectively communicating with subordinates. The manager must stay in touch with his or her people, but espe-

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cially to confirm whether those asking for help are appropriately representing the type of help required to facilitate their work. Participate

By participating in the decision-making process and execution of tasks the manager will encourage subordinates to take independent, innovative, and creative action by making it known that he or she is there to share the risks. This is done by giving support, staying in touch, and keeping others from interfering. Giving a helping hand should not actually result in doing the task for others; rather, the power boost that comes from facilitation shows subordinates the path that will take them to success through their own efforts. With the objective of minimizing the possibility of error, managers too often step into the role of the decision maker that should be the responsibility of subordinates. Should this intervention become a frequent occurrence, employees will often become dependent upon the manager or routinely defer to their supervisor to make decisions for them. Strong managers need to avoid the possibility of turning a facilitating act into one with negative after-effects. Sharing the risk is not eliminating it. A willingness to share the consequences of a decision may not be fully successful when encouraging the employee to take reasonable risks. It should also be noted that those who are capable of making good decisions will resent frequent interference in their work; managers must make sure their help is wanted and then give only what is needed. Risk-Sharing Example

A major organizational change that included combining the operations of two field offices into one was proposed to the divisional vice president. The two existing offices were in the same locale, but they represented two different field operations. The manager who presented the idea was convinced that combining the offices would greatly improve efficiency for the operations. Those who were opposed to the idea tried to make the point that the work of the two offices were very different and combining the workforces would cause confusion. This proved not to be a problem of any significance. The divisional vice president decided to approve the plan and present it to the board of directors for review. In order to give the manager who initiated the idea the experience of meeting with the board, he asked him to present the proposal. The vice president would be with him in the event he needed moral support, but since it was the manager's idea, it was unlikely he would need assistance. This was a wonderful experience for the manager, and he did a very competent job with his presentation. He received credit for his good work,

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and the vice president was seen as an unselfish manager who was as interested in his employees as he was in the welfare of the company. Energize and Protect

The third point of the checklist asks managers to make power available when needed. This type of facilitating assistance should be the least used and most carefully monitored. It is also the most abused by those who do not have authority in their own position. When needed, borrowed or implied power used with the knowledge of the manager can facilitate the work of employees who have no authority of their own. It also provides valuable experience that may not otherwise be available. The final point reminds the manager that one's primary responsibility is to provide working conditions for employees that are free from interference, either from within or outside of the organization. Facilitating the work of employees has two primary objectives, one is to provide resources for an employee to help accomplish a task, and the other is to facilitate learning or training to expand the employee's ability to excel. The easiest way for a manager to know when to offer assistance is to ask the employee. When an employee initiates a productive self-help project, he or she should be allowed to control its progress. Everyone benefits when managers use their power to help employees through providing needed assistance. Enhancing the Manager's Power by Motivation

Motivation is intended to stimulate action or sustain the momentum of productive effort. To direct progress requires the use of power or authority. Employees who are motivated believe their response is in their own best interest. The motive is the well-conceived reason for a person or a group to take a specific and predictable action. Employees who believe that what they are doing is reasonable, productive, or exciting have no trouble sustaining their enthusiasm. On the other hand, when their reaction is based on emotion, it will have little sustaining power. Emotions fluctuate quickly and unpredictably, and are usually short lived. Similarly, using a challenge as an inducement may lose its motivational value once employees rationalize the chances of success. If the task is too easily accomplished, the tendency will be to curtail the effort. If the challenge is too difficult or remote, usually only normal effort will be forthcoming. Challenges can be motivational for periods of relatively short duration, but only when the reward equals the effort required to succeed. Planning strategies to elevate motivational energy should be done with great care. Providing a motivational rationale to stimulate a specific re-

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sponse requires information in four specific steps. The following list provides a step-by-step method to reach an identified objective: Step One Step Two Step Three Step Four

Clearly state the motivational objective. Establish a logical reason to act. Provide the plan to reach the goal. Make individual assignments.

The four steps provide the what, why, how, and who in the process. In short, to motivate action, clearly establish what you want accomplished, why it is important, how it is to be done, and who does what. Step One

Plan and set the objectives. A clear understanding of the mission to be undertaken and its objectives will identify the direction in which everyone will be going. Whenever possible, the importance of what is to be accomplished should be personalized for each employee by identifying individual objectives with specific reasons to make one's best effort. Individual objectives are not the team goal, but only that person's contribution to accomplishing the mission. Identifying the individual targets provides each participant with a way of measuring his or her own success and perhaps being rewarded for his or her contribution to the team effort. Recognition is an important incentive for lively cooperation. Even so, managers must realize that what motivates one employee can be very different from what will interest another. Step Two

When one expects to motivate an employee, an essential element is to provide a logical reason to support the project. Answering the question, "Why should I do this?" with a significant reason is an important requirement for creating the level of motivation required. This is the time to make sure everyone understands and agrees with why the project is undertaken. Verification of understanding is fundamental with any communication. Step Three

The preparation of the how to plan can be accomplished collectively by all involved or by the manager prior to engagement in the project. Once all of the employees who are involved understand what is to be done and why, the manager can start to discuss how the activity will proceed. Instructions must be in sufficient detail to ensure understanding. Verification of the communication is required to be sure of a well-coordinated effort.

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Step Four

Employees must be committed to their assignments if they hope to perform as expected. To be committed, sufficient information about the total effort is needed to understand the importance of their contribution to the project. They must also be informed what others will be doing that has a bearing on their individual effort. Within reasonable limits, the assignments of others should be communicated on a "need to know" basis. Motivation Example

Think of yourself as one of the four members of a one-mile relay team. The mission of the team is to cover the one-mile course in the fastest time they can manage. Each team member will run a one-quarter-mile segment of the race as a contribution to the team effort. The purpose of the race is to successfully compete with the other team and win. Expectations are high because your team is the defending champion of the one-mile relay. There is a natural inclination to be successful and retain the champion's title. In a meeting with all four team members, the coach assigns each runner his or her running position. They are then informed which runner they can expect to be competing against on the opposing team. The strategy for winning is detailed for each quarter mile with the effort that is needed from each runner. The first runner is expected to have a five-yard lead when he passes the baton to the second. The runner in the second position is to maintain the five-yard lead for his quarter mile. Runner number three is given the assignment to pass the baton to the team's last runner in a position no worse than even for the final quarter mile. Since the team's fastest runner is assigned the final quarter mile, it is expected that he will give the team its best opportunity to win. This explanation provides each team member with a clear picture of the strategy to win (the direction), a reason why it is taking place, how the team is expected to reach its goal, and the individually assigned objectives required to complete the mission as planned (who does what). Step Three is also a communications step. Uncertainty is the greatest inhibitor to the initiation of effort. Those who are uncertain of what is expected are not committed until all points are made clear. In the example, it is expected that if the second runner finds that he is not five yards ahead when the baton is passed, he will then try harder to make up some of the deficit before he passes it to the third runner. When people are informed and clearly understand what they are to do and why, they can be or are motivated. The final question to the runners would probably be to verify a complete understanding of their instructions. Whenever a motivational incentive is offered, it should be appropriate for the mission. When much is asked, a significant reason (motive) to put forth

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the additional effort is required. If the task is to be sustained for a longer than normal period of time, an occasional stimulating reinforcement may be called for. When the objective is easily accomplished, a lesser incentive may do the job. In any case, the employees involved must accept the reason to act as appropriate for the task at hand. The effectiveness of a manager cannot help being enhanced when employees are motivated to do their best. When a reason to act is offered with the power of persuasion, the effectiveness of motivation is elevated to a higher level. The Power of Evaluation

Even in the best of circumstances there is the potential for Murphy's Law to come into play: "If something can go wrong, it will." Diligent managers will know the weak spots in their organization and will be alert to prevent them from becoming problems. It is also important to evaluate the commitment and capability of key employees. The success of the enterprise is dependent upon these people. When the suspicion of wrongdoing or a lack of effort is evident, one should first confirm that there is indeed a need for correction. Since managers are responsible to direct and control the progress of their unit, they must evaluate the capability and commitment of those most critical to success. This is an important part of the manager's job: It is through the power of evaluating that supervisors inspire employees to seriously look at their performance and to realize whether they are fulfilling their expectations. There is a degree of direct power in the evaluation process; employees will either be jubilant at a highly favorable report or depressed by one that is less favorable. In this process managers can couple participation power with the evaluation by eliciting cooperation from employees to become engaged in identifying a practical solution to whatever problem may exist. Offering to work together to improve a situation provides the employee with the manager's power to facilitate success. When corrective action is required, the fear of failure can boost the employee's interest in participation power offered by the manager. It is popular in current management training to place emphasis on problem solving rather than problem prevention. To be sure, problem-solving skills are required by managers, yet the emphasis should be on avoidance as the first effort. Evaluation of the status quo constitutes a problem-prevention action that must be taken seriously. Through evaluation, managers can discover problems before they are serious enough to be openly evident and require immediate remedial action. There are four "C's" of evaluating: 1. Commitment—Is the employee fully engaged in the work? 2. Capability—Do the skills of the worker fit the job?

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3. Compatibility—Are there conflicts with fellow workers? 4. Continuity—Is the person a consistent producer? All four of the questions posed by the C's must be accurately answered if the power boosting qualities of the evaluation are to be provided. Commitment

An employee's commitment to his or her work, whether a task, an assignment, or performing an ongoing function, is obviously important but also difficult for many managers to determine. The sincerity of one's commitment to perform in a specific way may vary from time to time and depends upon the pace of progress and the influence of external factors. Sometimes a manager may need to make more than one evaluation regarding an employee's commitment in order to get a true picture. There are three elements involved in assessing a person's commitment: 1. Enthusiasm—Are employees enthusiastic about their work? 2. Distraction—Are employees easily distracted? 3. Urgency—Do employees show a lack of urgency in completing their assignments? Employees who are enthusiastic do not become diverted from their work and are eager to complete it. Enthusiasm It is usually not difficult to perceive genuine excitement. People who are eager about what they are doing are usually committed to performing well and will show their spirit in the way they work. The job of the manager in this part of the evaluation process is to determine not only if a person is enthusiastic, but if not, why not? The following questions may reveal the cause: • Does the employee require help that should be provided? • Is motivation needed to generate participation? • Is there sufficient management involvement to support the work and the employee? Once these questions have been answered, the manager can move on the next step in the evaluation. Distraction To determine whether employees are easily distracted from their primary obligations takes a concerted effort by the manager. By frequent and de-

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tailed inquiry, a manager can usually learn where an employee is spending his or her time. Frequently managers will find that when an employee's attention is too easily diverted, the work is too readily accomplished or there is a lack of interest. Those who become distracted will find interest in divergent pursuits or show a willingness to leave the assigned task for others. These people are following the traits of the uncommitted. They may even help others rather than to do their own work. Obviously, they are not fully engaged in their own task and need a reason to become rededicated. It is not uncommon to find that people do not see their interest in other areas as a lack of commitment to their own responsibilities. They equate their part in advancing the work of the group as equivalent to doing their own job. The problem is one of priorities. Employees that are easily distracted must redirect their commitment to first complete the tasks for which they are held responsible. After satisfactory progress, a productive diversion may be provided as a reward. The objective should be to find assignments more suited to the basic interests of the employee, provide a motivational challenge, or create a feeling of importance about what he or she is doing. An employee's interest may also be drawn away for lack of understanding of what is expected. If employees do not know what they should be doing, they may become inattentive to the work at hand and seek a diversion. The answer to this problem is to communicate factually, fully, and frequently in order to avoid misunderstanding. Managers must assure employees that asking questions concerning their work does not indicate a lack of capability; rather, it shows interest in doing it well. Urgency The third reason why employees lose commitment is a lack of urgency to stay involved. This point differs from being easily diverted in that the employee stays at the job but does not seem to expend his or her effort to bring it to a timely conclusion. If a task is not sufficiently challenging to attract and keep one's focused attention, the employee will not be urgently committed. Employees can also lose interest in a project or in an assignment when the time needed to complete it is too long. If one does not posses a sufficient amount of sustaining initiative to see work through to the end, urgency is lost and devotion to the objective slackens. In these situations the one in charge has the choice of providing a new assignment of shorter duration or structuring periodic reviews of interim objectives to provide an avenue for approval and recognition. Establishing short-term objectives to completing a task can provide urgency to many situations. To measure an employee's commitment, managers must look for enthusiasm, a focused interest in the objectives, and an urgency in getting the work completed.

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Capability

Most employees are capable of doing the job that has been assigned to them. It is assumed that they have the skills to perform as expected or they would not have been given the work. This assumption should be based on the employee's record of past performance, and not only on the expectation that a greater challenge will produce a greater effort. Greater challenges can be stimulating or become overwhelming. The first task of the manager is to document whether the one in question has performed well at the job for which he or she is currently responsible. Confirmation that this person can produce quality work should lead to further investigation. When one is capable but fails to perform up to expectations, the failure is usually connected to some factor that is inhibiting the proper use of his or her talent. These factors can be categorized as follows: Personal problems—Leads to loss of focus on work. Lack of support—Produces confusion of priorities. Loss of motivation—The compelling reason to succeed is compromised. Outside interference—Creates distractions. Capable people fail when they are confronted with personal problems, lose their focus on priorities, or are distracted by outside interference; hence, motivation becomes overshadowed. Compatibility

The third C of the evaluating process is to ascertain the compatibility of employees in their working environment. In situations where there is incompatibility with fellow workers, productivity can seriously deteriorate. Sometimes the simple act of relocating an employee to a different work station or position in an office will result in significant improvement. Problems with compatibility often occur when there are changes in the mix of employees. Established relationships are disrupted, and the new people in the workplace often create problems for no reason other than that a change has taken place. Even stable relationships between employees or managers and subordinates can become strained if a question of trust arises or the commitment of a fellow worker is in question. Trusted managers should ask specific questions from troubled employees and expect to get straight answers. Whenever problems of compatibility follow a significant change in working conditions, the manager should immediately get involved and exert the appropriate power to manage the situation. It is in circumstances related to problem solving that managers must establish their authority and manage to resolve the disruption of the work.

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In some instances managers of other departments may show a reluctance to interact with people they do not know well or with whom they have little experience. These feelings can break the needed direct line of communication and greatly complicate the relationship between different units of the company. Managers need to look beyond the immediate work environment to determine if interdepartmental hostility exists. When people are difficult to work with, there is usually little reluctance by those affected to identify whom they see as the culprit and why that person is a problem to others. All that is required is a relationship that promotes an honest conversation between the manager and his or her employees. Sometimes the manager needs to look no further than into a mirror to find the one with whom the employee is having difficulties. Managers do not always comprehend how their employees feel about them, but peers of the manager will know. Supervisors must be open to self-examination when a compatibility problem is noted. Incompatibility can follow any significant change in the working environment, a change in fellow workers, in location, in supervisors, or even in managers of other departments in the company. Continuity

When an employee is in a cycle of producing good work followed occasionally by an effort that is less than acceptable, he or she lacks continuity. Commitment and continuity are inseparable. One cannot be an erratic performer and be committed. The lack of a consistent performance is one of the most certain signs of a relapse in commitment. The difference between the work of one who is lacking in continuity and an employee who is incompatible or shows a deficiency in capability is the quality of what they produce. Periods of high productivity will indicate a very capable employee who is compatible with others in the working environment. When employees produce consistently high-quality work, it indicates that they are capable, committed, and compatible within the environment. An employee who shows a lack of commitment differs from one who is distracted in a very subtle but important way. As we have pointed out, distractions occur when employees have a lack of interest in their work or they do not understand what is expected of them. A lack of continuity by a capable and wellintegrated employee is usually centered in the loss of proper motivation. These people are not easily distracted and they do not lack interest or understanding, as they are usually high producers and show significant achievement in their work. When they are not motivated to put forth the effort that exemplifies their superior ability, any or all of the symptoms represented by the four C's may be present. Variations in the productivity of an employee can be moderated by a manager who knows when and how to motivate. Some workers are slow to

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build enthusiasm at the beginning of a new project. It is just as common for others to start with high initial enthusiasm but to sag in the middle or near the end of work in progress. When this behavior is not from distraction or lack of support, the manager must analyze the highs and lows in the work cycle to determine if there is a pattern to the lack of continuity. When this is determined, the proper adjustment can be made with a revised approach to producing consistent motivational stimulation to encourage the needed effort. Most capable employees wish to work at a high level of productivity. When confronted with a cycle of ups and downs, they very often will offer excellent suggestions for correcting the problem. This is particularly true when there is interference from sources outside of the working environment. Achievers want to be at their best at all times and will eagerly accept the help of a power boost from a competent manager. Personal Problems

An employee's health or a disturbing relationship can significantly impact one's ability to concentrate. Consulting directly with the employee on these matters is required before further investigation is initiated. How one manages personal anxiety depends upon the nature of the situation. The first inquiry may be about the employee's health, because it is the easiest place to start dialogue. If an employee or member of the employee's family requires medical attention not being provided, the manager can go through the proper channels to get help. Financial difficulties also rank high as a personal anxiety factor. Employees do not easily discuss their personal affairs, but when in confidential communication with a superior, most subordinates recognize the one person who can significantly help. Frequently financial difficulties are coupled with medical problems. If an employee is having problems with a relationship, managers would do well not to get involved. This is an area where professional counsel is recommended. Lack of Support

It is not uncommon for capable employees to fail because of the need for managerial support. Some are hesitant to request help because they feel it shows a lack of ability to do their work or a failure on their part. Managers must make it known that they are willing to lend a hand and that there is no retribution for seeking occasional assistance. If employees too frequently request attention, it is necessary to determine if the assistance is needed for lack of facilitation by the manager or because the employees failed to expend the required effort. Capable employees seldom ask for help, but if requests become frequent it may be that they are asking for someone else to do the thinking. The manager's reaction must be to support the effort not replace it. Managers should listen carefully to determine the true intention

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of a request for aid and why it is needed. This is not the facilitating act of a provider; rather, the effort is directed to the work itself. The support provided by a manager should not be so intrusive as to indicate position-power supervision, but rather it should be provided as an available boost welcomed by the employee. Loss of Motivation

Sustaining the motivational energy of capable employees includes more than facilitating their needs or supporting their actions. It also includes the careful evaluation of a person's motivational requirements. When there are no personal problems to contend with and no request for support that has gone unattended, the next thing to do is evaluate the energy level of the employee. Those who have superior capability often require greater challenges than others. They appreciate recognition from their manager and find it more stimulating than less-talented employees. Recognition provides a kindred association with upper levels of management. The motivational challenges provided by a manager to superior employees must be well conceived, as these people know they are competent. The reasons that compel them to be exceptionally competitive are more individual and complicated than for others. I have been told by an industrial psychologist that sometimes gifted people may withdraw with little participation in projects for which they have no interest. They do not see this as failure because they know they can excel whenever they want. The lack of a motivational reason to react is the place to start. Often the accomplished nonproducer will openly tell the manager what is wrong along with what is required to activate their interest in the project. The power-enhancing effect of frequent communication is essential to improve the productivity of those who can do the work but are unproductive. Outside Interference

From time to time capable employees may not perform up to expectations because of the impact of external forces. Among these distracting influences are interference from other managers, the failure of providers to deliver expected resource materials, the neglect of service managers to perform duties as expected, failure to receive approvals before work can progress, or the negligence of any contributor to the work process. When interference comes from outside of the manager's direct line of authority, the employee may conclude the problem is not within the manager's ability to control and may be reluctant to get the supervisor involved. Those managers who get to the facts of the situation by initiating a conversation directly with the underperforming employee (communication) will be able to deal with the problem.

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When interference is holding back productivity, most employees will be very willing to accept help from the manager in solving the problem, but they need to feel secure in asking for assistance. It should be well within the expectation of most employees, as well as lower-level managers, to feel that their superiors will aid them when they, by themselves, do not have the power to move problems out of the way. This is particularly true for lowerlevel managers who are trying to improve their managerial profile and may be reluctant to ask for remedy. The Hierarchy of Peers

In most organizations of any size there exists what is recognized as the hierarchy of peers. All who participate in this hierarchy have the same title, but they will play different roles. For example, within a group of sales representatives those who have more seniority may try to assume the role of the senior partners. The ones with the highest sales performance may model themselves as the superstars. Newcomers may be relegated to the role of the uninitiated. Most employees seek to improve or at least maintain their competitive position relative to those with whom they work on a day-to-day basis. That is to say, they are motivated to "hold their own" with their peers. When employees start to lose their competitive position within their own unit, the manager should become involved as soon as possible to determine why this is taking place and evaluate the person's commitment, capability, compatibility, and continuity. Employees who lack the capability to perform successfully should be replaced or given remedial training if they have the potential to improve and regain their position as a satisfactory worker. Supporting Action

Throughout this discussion of the five basic power enhancers a number of references to supporting the employee have been included in varying contexts. Even though support is listed individually as one of the power enhancements of managing, it is also a part of the first four elements. A competent manager will provide effective communication to effect understanding, include facilitation to encourage the activities of employees, and offer motivation to stimulate effort and create interest. Evaluating the problems employees face is a way to measure their progress and can in itself be supportive as well as motivational. The element of support relates more to assisting employees in the fulfillment of their work obligations than to facilitating the individual as a provider. Support can relate to preventing a problem, blocking interference, lending power, providing motivation, improving communications, or in many other ways. When the support helps the individual, it also facilitates progress.

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When Support Is Lacking

A research person trained to seek the truth with scientific exactness was employed by a large pharmaceutical company. When he was asked by his supervisor to go along with a degree of flexibility in reporting the results of his work, he hesitated, but was coerced to comply. The scientist felt that he could not refuse his superior when asked to write an evaluation of his results in a way that made the product look more effective than the facts justified. He was directed to omit some negative data he had compiled for the candidate product he was screening and to report only that which was positive. He was advised that his contribution was only part of a larger report and that the "problem issues" would be addressed in a separate section. No regard was given to what effect the altered report would have on the reputation of this person should the facts surface. In this case, by comparing the company data to its own, a governmental review exposed the inconsistencies in the company report. To protect itself, the company quickly fired the scientist who wrote the evaluation. This is an example of blatantly failing to support an employee who was hired because of his ability to find the truth and then coerced, by fear, to unknowingly participate in a deception against his own best interest. Competent managers support their subordinates rather than exploit them. It is a basic concept of upper management that managers should support the activities of their productive employees. Although it hardly seems necessary to mention, one essential element of support is too frequently overlooked. The supervisor's advocacy should address not only the employee's productivity, but also their integrity. In this way managers can convey that they considerately value those who report to them. A manager can easily express appreciation for the work of those they manage, yet one should go beyond the work product and also be directly supportive of the person. This concept includes the idea that managers should not compromise another's integrity. Consider the following true illustration: A new manager in the accountspayable section of a very large and prosperous Fortune 500 company instructed a subordinate to deal with the company's creditors by delaying payment, using misleading tactics, lying, or in other ways "protecting the company's interests" in a manner inconsistent with her personal habits. She always paid her bills on time, and was scrupulous about her personal credit rating and personal honesty. These exemplary personal attributes were stressed as critical in the company's decision to put her in the important position she held. She felt that her high standards were valued and shared by the company. However, because the manager showed no interest in her standards, she became depressed and unhappy in her job. She was of the opinion the lack of support showed that the company cared little about her and the position in which she

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was placed. There is no question that her supervisor lacked the ability to look beyond the job to the person doing the work. His interest was in being perceived as a tough executive who could use delaying tactics in paying the company's bills. This was not a position representative of the company's reputation. Being aware of this fact, he made sure that creditors directed their criticism to the subordinate for these tactics. Managers who support the integrity of employees will not try to elevate themselves at the expense of those who report to them. The Manager's Motives

The motives of self-serving executives will not be trusted and will not promote an inspired effort in others. "We need more," will not necessarily result in "We get more." For the act of managing to be at its most successful, those in charge must show employees they are in control, but will also use the power enhancers to encourage and support those who are productive. SUMMARY

To manage requires the use of power. Some executives will employ many of the different positions of power in exercising the responsibilities of their position. The five power boosters, communication, facilitation, motivation, evaluation, and support, are used in combination with authority to enhance the effectiveness of the power and style that is used to manage. Subordinates will excel under the care and guidance of a supervisor who replaces fear with trust as the motivation to work. When this is accomplished, workers will be happier, more creative, and individually productive. Few people fail in a job they love. Commitment Power

Coupling the six positions of power to the inspiration of leadership creates a new and unbeatable power booster. It is called commitment power. This is the first step in the four C's of evaluating. Managers and employees who are committed to their work (and their organization) generate an infectious zeal that quickly spreads throughout an organization.

PART II THE POWER STRUCTURE, THE MANAGER, AND MANAGEMENT

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NINE Power in the Organizational Structure A well-functioning organization is physically structured to provide each of its units the ability to effectively interface, freely communicate, and cooperatively utilize all of its resources and services. For most corporations the structure is formed as a skeleton that shows its general shape, size, and diverse segments. This is depicted on the charted table of organization, which establishes the position of each major group in the hierarchy in its relationship to all of the others. For large and complex organizations, such as a bureau or department of government (see Figures 9.2 through 9.7), the complete table of organization is seldom a point of reference. The various department heads of the bureau will administrate their individual areas of responsibility with little need to contact other departments except at the administrative level. Government departments tend to be quite autonomous in their activities. The highest level in our government organization are the departments (e.g., the Department of Interior) headed by secretaries who are cabinet members. The departments are segregated into several bureaus, such as the Bureau of Land Management, the Bureau of Indian Affairs, and the Bureau of Reclamation. In addition to the departments, the government has permitted independent establishments and government corporations, such as the Federal Communications Commission, the Peace Corps, and the Small Business Administration. For the most part these establishments and corpo-

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rations are under the direction of commissioners. Agencies, represented by the Environmental Protection Agency, the Social Security Administration, the National Labor Relations Board, and the U.S. Postal Service are headed by administrators. The figures of organization for some of these government groups are found at the end of this chapter. These separately functioning groups do not exist to provide services to each other as one would find in a business organization. In businesses there is a much greater need for interdepartmental communication because each unit serves or is served by many of the others. Business organizations are developed with the intention that the major departments will serve both the internal and external activities of the whole corporation. This is not the situation with our government agencies. STRUCTURE AND POWER

It is logical for one to ask, "How does the structure of the hierarchy affect the manager and his or her use of power?" In many situations there is little or no relationship between the organizational structure and the manager's ability to perform with authority. Referring back to the opening statement of this chapter, the structure of the hierarchy facilitates those in a corporation to effectively communicate and cooperatively utilize all of the company's services and resources. The interface between the segments or units of the organizational structure and the people within that hierarchy is where the use of power and authority comes into the picture. The use of power and the impact of one's authority is much less standardized than the formal table of organization. The reporting relationships are easily identified, yet how the actual managing or operational relationship is established is left to those who occupy the positions. The controlling authority for any group of people will maintain a working environment that is consistent with his or her management style. For this reason it is not uncommon for employees who work in organizations with identical physical structures tofindthe actual workplace significantly different. Little is learned about the working environment from consulting a table of organization. How the people in the hierarchy use their authority and power dictates the similarity or differences in the operational relationship. The Operational Relationship

The usefulness of the formal table of organization of an enterprise (its physical makeup) can be compared to that of a road map. One can identify and locate departments, divisions, and all of the other corporate services on a table of organization, detailed in much the same way as streets and addresses are found on a city map. Unfortunately the notation of streets and addresses tell the reader nothing about the appearance of the neighborhood,

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the condition of the roads, the relationships between the people who live there, or how it is governed. The value of arranging the positions into a specific corporate design is no different. One can locate where specific activities take place, but the usefulness of this information stops far short of providing definitive data. Also, one will seldom find names assigned to the positions indicated on these charts. People may come and go, but the structural design of the company remains substantially the same. Yet for the manager, knowing how the corporation is structured can be significant. By identifying where services are located and how the authority in the organization is placed, one finds the routes to the available resources and services. The manager will identify names for each of the positions that are important to him or her. An effective operational relationship can be established only after determining which people are the most critical to the manager's operation. Development of the proper approach and use of power to influence a favorable relationship can then be effectively implemented. As an illustration, a traveler can easily coult a road map and de+termine. that if driving west on Interstate 40 the distance from Albuquerque, New Mexico, to Flagstaff, Arizona, is about 340 miles. There is also a change in altitude from 4,900 feet to nearly 7,000 feet in Flagstaff. If it is winter and there is rain falling in Albuquerque, one might suspect that there will be snow in Flagstaff. The road map provided some useful information, but the critical question that goes unanswered is whether there is snow in the Flagstaff area. To determine road conditions, one must call the Arizona Highway Patrol or the Department of Transportation. Having the necessary phone numbers at hand would greatly facilitate one's ability to gain the information about whether to proceed or not. In like manner, consider the actions of a marketing director who has just been advised by the advertising agency that a new advertisement is being released for national television. He cannot remember whether the company's legal department has signed off on the approval to run the new ad. Neither can he find any documentation in his file that confirms it has been given approval. Fortunately the marketing director does not need to consult a table of organization to find the legal department. He knows which section of the legal-services group handles advertisement approvals and calls the number provided in his company directory. Having easily reached the correct area, he asks for the lawyer who provides the legal services for his group and gets the necessary information. It is always people that do the work or have the information. For this reason, one must complete the "road map" of the organization by adding the names of people who are in positions of importance. These names are followed by noting the power they control and the authority they answer to. Knowing where to find resources may be useful, but knowing who to contact and their power position in the hierarchy is critical. Competent managers will develop and maintain contacts of this type as a normal part of their managerial preparedness.

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THE POWER OF ORGANIZATIONAL STRUCTURE

In business organizations we find divisions, departments, units, and groups of various kinds are created to perform tasks or provide services for specific corporate needs and the company as a whole. Where these groups fit into the organizational structure and how they are staffed will be determined by the services they provide and the relationship between the service provider and the user. As an illustration, consider the duties of a legal department within a corporation. There will be many areas of interest and legal involvement for the top corporate executives. The need for licensing agreements, joint-venture contracts, financial commitments, regulatory obligations, tax matters, and the like may be required on a continuous basis. The structural format linking legal to corporate executives will accommodate the need for the executives and lawyers to have adequate and easy access to the information required. If the organizational structure required that every contact between the legal department and other corporate executives was to start at the top of the department, free and easy access would be very limited and organizational efficiency severely compromised. Also consider the legal requirements of other departments. Research may need patent information, marketing may require contracts to be written and approval for advertising copy, production is involved with waste-management regulation and labor-union negotiations, and the personnel department must deal with equal opportunity employment regulations. Each of these departments must have functional access to the appropriate area of the legal department to effectively use their services. Should the controlling manager of the legal-services department decide to establish provider power, it can be accommodated in the structural authority of the organization. By restricting access to this resource only through his or her office, the structure is used to inhibit free and easy access and the controlling manager has established self-serving provider power to the detriment of the company. This same principal applies to all groups in the corporate hierarchy that provide services or perform tasks for any part of the organization. A poorly conceived organizational structure, such as one that is not serviceable for those that must use it or one imposed for the benefit of exercising a provider's power, will lead to inefficiencies in performance by the units affected. General Organizational Structure

The structure of the general table of organization shown in Figure 9.1 does not indicate that the marketing and manufacturing divisions are interrelated concerning their contribution to the success of the corporation. It is only when one becomes involved with what they do that we find these two groups will exercise the greatest power in the organization.

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Figure 9.1 General Business Structure President and CEO

Vice President Research and Development

Vice President Manufacturing

Vice President Marketing

Vice President Corporate Services

Personnel Department

Legal Services Department

Financial Services Department

This basic corporate structure is separated into four primary divisions of authority. Each of these divisions is headed by a vice president who reports directly to the president of the company. These four vice presidents are all on an equal basis as far as their level of authority is concerned. The vice presidents will organize their areas to efficiently provide services and perform tasks for the whole corporation. There may be several plant managers under manufacturing, different marketing divisions under the vice president of marketing, and the research and development area may have a number of experimental laboratories, a quality-control unit, field research, and a technical-service group located within their department. Even though these divisions are on the same level in the hierarchy, they will each have a very different but closely related function and importance to the success of the entire company. The power and authority the leaders of the individual divisions are able to exercise within the corporation will also be significantly different and reflect the importance of their function. One may find clues related to the value and influence of a specific corporate function by noting the size of their budgets and the number of people in their organizations. At the very least, money and people represent substantial costs to the company, which in turn relates to profitability. Revenue-generating or high revenue-using functions are always near the top in importance to any corporation. One may conclude that the marketing areas, who are the producers of revenue, will have significant power and authority in the corporate structure. In addition, because it generates high costs and controls product availability, manu-

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facturing will also represent a position of great influence. Noting the contributions of these two groups does not diminish the importance of the research and administrative divisions, but rather places the emphasis on controlling costs and producing revenue as the priorities of greatest importance in the productivity of the company. Both research and administration are "fixed-cost" activities that are controlled by an established budget with a periodic review of how it is being administered. Marketing operates in an ever-changing competitive environment over which they must have the power and authority to be effectively reactive. The manufacturing division either expands its budget requirements or restricts them based upon the need for products, the cost of materials, and the utilization of labor. The departments listed under the vice president of administration and corporate services are personnel, legal, and financial services. These departments would serve the three areas managed by the other vice presidents and the president. These vital internal corporate entities give the vice president of administration considerable importance, but much less power than the other divisions in the corporate structure. Even so, the physical makeup of the organization must accommodate the administrative group with the required access to the other corporate divisions, not only at corporate headquarters, but at all company locations. Each of the departments may also need to have the capability to work with companies or agencies outside of the corporation when called upon to do so. These activities would be at the request of one of the other vice presidents or the president of the company. The environments over which managers are given supervisory responsibility, along with the power to direct and control, are often nearly identical within the framework of the company. Balance and organizational continuity can easily be diagrammed on a piece of paper. Although hierarchies vary from company to company, there is usually consistency in design as well as titles within the same organization. THE INTERNAL AND EXTERNAL ORGANIZATIONAL SYSTEMS

The framework of most organizational structures is based on the development of two systems, one to serve the needs of the internal corporate organization and one that serves the external or marketing-channel contacts of the company. For those organizations that are not private businesses, such as government, service organizations, religious groups, and other bureaucracies, the external system is much different from that of a marketing channel. The government provides many services, enforces regulations, collects taxes, investigates crime, funds projects, studies the environment, conducts foreign affairs, and is involved with every citizen of our country in one way or another. The groups that contact citizens, corporations, local

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governments, regulatory agencies, foreign governments, and the like are extremely varied and large, yet they must effectively communicate with each other in order for the organization as a whole to be manageable. More formalized and structured communication between the various groups provide continuity and manageability. The size and complexity of our government demonstrates the essential need for both the internal and external systems to be so structured as to ensure an easy and open exchange of information between them. Maintaining control of intradepartmental contacts is a difficult task for large organizations. For this reason the communication between them is usually limited to fewer higher-level people who make referrals and assignments for action within their units as well as to other bureaus and agencies who are external to their organization. Internal Organizational System

The internal system provides for the flow of information and services between all parts of the hierarchy no matter who they serve. Most of the internal structure is formally diagrammed on the table of organization. For a business, the areas that provide services to many of the company's units are exemplified by the following: marketing information services, accounting and budget control, production, financial services, shipping, warehousing, billing, secretarial services, legal services, and many others. For bureaucracies, the internal system will be rigidly organized, with an established communication network, structured reporting relationships, and uniform documentation. Standard forms are common communication documents. Standing Committees

In most enterprises of any size there are standing committees that may be made up of people from several different parts of the company. A standing committee is one that regularly meets on a set schedule. It may or may not appear on the table of organization, yet will function as though it is a part of the hierarchy. As an example, a pharmaceutical manufacturer formed a committee to keep all of their marketing divisions apprised concerning the developmental progress of specific products in research. By the timely review of critical information between the marketing planning and the product development groups, each were kept abreast of changing priorities. In the event that a new competitive product should unexpectedly appear or a significant price reduction of a leading product take place, the marketing people would need to report changes in their assumptions for the requirements of their candidate products under development. If the research group projects that the development schedule had been delayed or would progress faster

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than expected, marketing would need to adjust the new product introduction and marketing plans. The most efficient use of time and money was facilitated with the exchange of information at the committee meetings. There are many groups within an organization that have the need to exchange information on a scheduled or periodic basis. When it is known that such information is needed and not available from routine reports, it is sometimes very helpful to create a heads-up (standing) committee that is charged with providing timely information. These committees will not usually appear on the table of organization, but they are a vital link in providing services to those responsible for maintaining a smooth-running operation. Managers must be well informed concerning the work of the standing committees. It is the intention of such groups to keep very current with changes in their area of expertise; thus, they are an excellent source of vital information. Managers who develop a relationship with members of a standing committee can often add significant power to their position and effectiveness to their influence in the internal organization. External Organizational System

As a general statement, one can assume that the structure of an established market is usually inflexible and may not be easily changed by participating organizations. For a private business or corporation the competitive environment of the marketplace dictates the type of organizational structure required to be an acceptable participant. If specific services are provided as a market practice, all who enter into the market will have to provide equivalent accommodations or find themselves at a disadvantage. The structure of the external market organization possesses a significant amount of power over those who intend to become participants. Customers of organizations, such as insurance providers, expect their needs to be fully satisfied by those they retain. The users of these products will not modify their requirements to be compatible with their potential suppliers. It is nearly always the suppliers of services and products that must be responsive to the requirements of the consumer. Different channels of trade for similar markets are the result of consumer market forces molding the retail structure to serve their needs. The market suppliers, in a like manner, will develop services and organizations capable of meeting the requirements of their customers. Consider the following example provided by a major marketer of veterinary products who decided that its marketing position was powerful enough to tell the channel structure how it would participate in the market. A national marketing company located in Phoenix, Arizona, sells its products both to veterinarians and through retail outlets such as pet stores, drugstores, and farm-supply retailers. The veterinarians are sold to through veterinary-supply companies who act as retailers. Salespeople contact vet-

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erinarians who will use or dispense the products they purchase. All nonveterinary outlets are sold to by distributors or wholesalers whose salespeople contact retail stores. The company in our example is primarily a manufacturer and marketer of pet- and horse-care products. It has only a few products that are restricted to be sold (or used) by licensed veterinarians. Nevertheless, these products are very profitable and important to the company. Were this not the case, the company would have abandoned its efforts to develop sales to veterinarians. Since the company was compelled to sell these few important products directly to veterinarians or to their suppliers (wholesalers), they decided to also include some of their over-the-counter products (sold to retailers) as a part of the marketing effort. Trying to "force sell" products to the veterinarians that could also be bought at pet stores, drugstores, and farm-supply outlets resulted in conflict with the doctors and a strong reluctance by them to purchase anything from this marketer. In the end the company was forced to develop different formulas and professional packaging labeled "veterinarian only" for the products previously sold to over-the-counter retailers. This large and successful pet product's company found it necessary to satisfy the needs of the veterinary trade (the external structure) before they could become an acceptable participant and supplier. The power of the established market structure serving veterinarians could not be overcome. For suppliers, an external marketing channel, service, or information channel is already in existence and is not subject to substantial changes. For this reason most companies, government bureaucracies, and other organizations will use the lines of communication, avenues of distribution, type of sales contact, and available services frequented by nearly all of those who wish to reach consumers, users, or clients. The physical structure of the external organization is well established by existing phone lines, rail lines, roadways, television, radio, the U.S. mail, e-mail, newspapers, and the Internet, as well as service organizations such as United Parcel Service, direct mail, telephone solicitation providers, and many others. The Supreme Hierarchy

There are very few organizations individually powerful enough to dictate to those they serve how they will be served. The most noteworthy of these are the military, our government bureaucracies, and the hierarchies of religious organizations. How the public is served by the U.S. Postal Service or the Internal Revenue Service is the way the service wishes it to be. The Catholic Church, being the oldest and probably the most influential in the lives of its followers, is a good example of a religious organization. The hierarchy of the Catholic Church is established to make governing its size and complexity possible and efficient. It also identifies the positions of power

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with appropriate titles for each of the levels in the hierarchy, as is also the case in the military. Most religions establish their hierarchy to serve the needs of the organization rather than the needs of their members. This is not to say that the organization neglects the needs of its members, but that services are provided in the way the church hierarchy and protocol dictates, rather than by what may be more acceptable to the followers. The internal structure of the church hierarchy is developed to serve those who run the operation of the organization rather than it members. The parishioners (the external organization) must accept what is dictated to them with little or no influence on the way ministration is offered. The hierarchies of the Catholic Church, the Mormon Church, the Methodist Church, and many other religious organizations are specific and unchangeable. Administration and regulation of these groups is in the hands of those who are in control of the internal operations. Not a part of the governing hierarchy, the members have little to say concerning how the church should organize to serve congregational needs. As an illustration, the hierarchy of the Methodist Church has determined that the ideal person to appoint pastors for a congregation is the bishop of the district. This person is not required to visit or consult with congregations that are in need of a pastor. In one case the bishop placed a very young and inexperienced youth pastor, proudly displaying a heavy beard and long hair, as the leader of a congregation comprised mostly of sophisticated, well-to-do retirees. It was soon apparent that the new pastor was an extremely poor choice. His style of leadership and worship services ultimately led to incompatibility with many of the congregation. The bishop would not replace him nor would the young pastor take guidance from the local church leaders. A large number of members left to find a church home with which they could personally identify. When there is little or no responsibility to those in the external environment (the congregation), the people who have authority and power in the hierarchy can frequently make great changes, create much conflict with those they serve, and still answer to no one. These fixed organizational structures draw our attention to the essence of managing. It is the person occupying a position of authority, in any hierarchy, that makes the dictates of the organization either acceptable or not. The exceptional priests, clergy, bureaucrats, managers, or officers in any organization are the ones that make the hierarchy function effectively. These people attempt, and usually succeed, to make the power and discipline of the structure acceptable to those who work within it. Unions and Cooperatives

Both unions and cooperatives operate as gigantic committees. The decisionmaking mechanism includes planning groups, stewards, or unit representa-

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tives at many levels, starting locally and leading all the way to the top of the organization. Unions

The organizations identified as unions have evolved over many years. In the beginning their purpose was to give the workers in a factory, a mine, or a privately owned business a voice in establishing better working conditions and pay rates. To accomplish the presence of a voice in their affairs, local committees were formed to represent the workers. These committees were organized by an election of the members. Today the representative for a union local (group) may be a shop steward appointed by the union or an elected representative of the workers. In the case of the United Mine Workers of America the top-level committee is the International Executive Board, which is made up of representatives from each major coal-producing area. The organizational structure of unions in the CIO (Congress of Industrial Organizations) format is intended to provide representation for every major group in each of the specific industries they organize. The intention is to provide a democratic method of selecting those who represent the rank-and-file members. The advent of unions and cooperatives initially attempted to provide for their members a way to generate participation power. The American Federation of Labor (AFL) was formed in 1886 with the sole purpose of bringing economic power to bear on major companies through collective bargaining. In the beginning there was no interest in political influence. The AFL, with Samuel Gompers as its leader, had a very simple organizational structure. There were union leaders at the top of the hierarchy and local representatives at the bottom. The latter were appointed or approved by the union leaders at each unionized plant facility. Teams of union organizers were trained and controlled by the union leadership to visit facilities targeted to be brought into the union. Across-the-table collective bargaining for better working conditions and bigger paychecks were the primary objectives of these sessions. The initial efforts of the AFL were directed at individual companies rather than at specific industries. With the formation of the CIO by John L. Lewis, a new form of organizing was initiated that was directed at industrywide bargaining (steel, auto, rubber, coal). The success of John L. Lewis created greater sophistication and more powerful union organizations, which became similar to the corporations they intended to unionize. In the context of an organizational power structure (participation power), the modern unions of today wield vast political and economic influence for their members. The power in the union organization, and the authority to use it, is primarily concentrated at the top. These top executives, usually a president, vice president, and secretary-treasurer, can act with great inde-

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pendence and little accountability because of the rules that provide for great discretionary power in their actions. Lower-level union executives have power over the rank and file, but they do not usually act independently except to enforce established union policy. Union officials governing today's organizations use position power to keep the rank and file controlled. Some union policies do not represent the interests of the majority of the members, yet their voices go unheard by the union officials. Much of the control over members is established by union rules and regulations instituted to benefit those in the hierarchy rather than its members. In that the federal government has some power to oversee and regulate labor unions, there is implied pressure that can be exercised for the good of the individual members. Were this not the case, the union hierarchy would resemble that of some religious organizations that hold the expressed belief that they know what is best for their members and, without consulting them, act accordingly. Cooperatives

Cooperatives were started by organizing farmers and ranchers to pool their collective purchasing power for commodities such as gasoline, oil, fertilizer, and seed for planting. This beginning quickly expanded into collective selling contracts for products such as corn, wheat, and potatoes that the farmers produced. These organizations represent a structure that promises a voice for every member at the policy level of the hierarchy through their elected representatives. Cooperatives present a much looser organizational structure than one would find in a union; nevertheless, there is power in their structure because of the size of their organizations. Many of the members have a common interest but are also competitor producers. As an illustration, the potato growers in the Red River Valley of North Dakota and Minnesota formed a marketing organization in an attempt to control the supply of potatoes from their area and thus stabilize prices at a higher level than they were receiving. The organization found it difficult to deal with competing members who were reluctant to accept the quantity of potatoes they were allocated to contribute for the collective marketing program. Many members overproduced and were forced by the organization to withhold their excess production from the market. For farmers to give up their independence and accept this decision was very difficult. Nevertheless, if the marketing program was to work it was essential for all members to fully participate. Since all of the local producing areas were represented by an elected member on the governing board, it was perceived to be fair and the competitive farmers cooperated to form an effective program. The structural organization for both unions and cooperatives can vary greatly from one group to another. In general, the larger the group, the less

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they represent the members and the more they look like a large corporation. The authority of these groups is not centered in the members, but is strongly established and exercised by those executives who occupy the top positions and exercise the power of the hierarchy to maintain control. SUMMARY

One can learn how a corporation, bureaucracy, religious group, union, or cooperative is structurally constructed by consulting the table of organization. To learn how it actually functions, firsthand knowledge of those who hold power and how they use it is critical. How managers use their power and develop the ability to control the influences of external and internal pressures on the working environment determines the ambiance of the workplace, not its physical structure. Along with its policies and procedures, the hierarchy of an organization applies to all within it. This is necessary in order to standardize the organizational workplace. The individuality of any group or enterprise is determined by the distribution of authority and how each person with authority uses his or her power. The philosophies of the managers, the directives of an organization, and the personalities of those in key positions also greatly affect the conditions under which people must work. It is essential for managers to understand how this uniqueness is established and maintained in order to effectively perform and use their power without conflict. Most companies, even those with inflexible structural formats, will tolerate wide diversity in the way their various units are managed as long as they are functioning productively and without conflict. The next chapter introduces the impact of the management system on the structure of the organization and all those who are a part of it.

Figure 9.2 Government of the United States CONSTITUTION I

J: LEGISLATIVE BRANCH Congress Senate House Architect of the Capitol U. S. Botanic Garden General Accounting Office Library of Congress Congressional Budget Office

Agriculture Dept.

Interior Dept.

EXECUTIVE BRANCH President Vice President Executive Office

JUDICIAL BRANCH Supreme Court

White House Office - Office of the U. S. Trade Representative Office of Management and Budget - Counsel of Economic Advisers - Counsel on Environmental Quality - National Security Council - Office of Science and Technology Policy Office of National Drug Control Policy - Office of Administration - Office of Policy Development - Office of Vice President

Commerce Dept

Justice Dept

Congressional Quarterly 2000-2001

Defense Dept.

Labor Dept.

Education Dept.

State Dept

Energy Dept.

Transportation Dept.

U. S. Courts of Appeals U. S. District Courts U. S. Courts of Federal Claims U. S. Court of International Trade Territorial Courts U. S. Court of Appeals for the Armed Forces U. S. Court of Veterans Appeals Administrative Office of the U. S. Courts U. S. Sentencing Commission U. S. Tax Court Federal Judicial Center

Health and Human Services Dept

Treasury Dept

Independent Establishments and Government Corporations

132

Housing and Urban Development Dept

Veterans Affairs Dept

Figure 9.3 U.S. House of Representatives

Majority Leader

HOUSE OF REPRESENTATIVES

Majority Whip Inspector General

Sergeant at Arms

Minority Leader

I

Minority Whip

Committee on House Administration

The Speaker

Chief Administrative Officer

Chaplain

Clerk General Counsel

Parliamentarian Congressional Quarterly 2000 - 2001 Legislative Counsel

133

1

Law Revision Counsel

Figure 9.4 U.S. Senate Vice President

Chaplain

Majority Leader

Secretary of the Senate *

I •

Information Systems

General Counsel Human Resources

I

Assistant Majority Leader

Library Interparliamentary Services

Minority Secretary *

• I I

Disbursing Office

Legislative Counsel

Legal Counsel

Deputy Sergeant at Arms Capitol Guide Board

Media Galleries

Executive Office

Curator Facilities

Senate Computer Center

Financial Management

Human Resources

Photographic & Recording Studio

Service Dept

Leglislative Parliamentarian Journal Clerk Leglislative I Clerk Executive Clerk

Historical Office Conservation and Preservation

Gift Shop

BUI Clerk Enrolling Clerk Official Reporters of Debates Senate Daily Digest

Chief Counsel for Employment

State Office Coordination

General Counsel & Procurement

Senate Post Office

Telecommunications

Page School

Captioning Service

Public Records

Doorkeepers Capitol Guides

Leadership Senate Security

Assistant Minority Leader

Sergeant at Arms*

Printing and Document Services Stationary Room

Minority Leader

T=k

T T Majority Secretary *

Assistant Secretary Administrative

President Pro Tempore

ID/Parking Garage

Capitol Police Board

Senate Page Dorm. Capitol Police Direct responsibility Oversight responsibility Elected officers of the Senate

Congressional Quarterly 2000-2001 134

Figure 9.5 Department of Agriculture SECRETARY Deputy Secretary

r

Chief Financial Officer

General Counsel

Inspector General

Executive Operations

Director of Communications

Natural Resources & Environment

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Figure 9.6 Federal Communications Commission COMMISSIONERS

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TEN The Manager's Power Even though each area of an organization has an ambiance that is uniquely its own, every worker in the company, division, department, hospital, private office, or even individually managed units of a large bureaucracy must effectively deal with the established power structure of the organization. It is to this power, rather than the organizational hierarchy, that employees must routinely respond. DEVELOPING AND USING POWER

This chapter deals with how managers develop and use power for the benefit of the company and its employees or selfishly for personal gain no matter what the cost to others. There are many locations within an organization where power can be developed and used. The basic premise is that when people wish to acquire power and use it, they will find a way to accomplish this goal. If the motive is to make a contribution to the company rather than for personal gain, they will seek power by becoming more valuable to the company and earn advancement into a position that allows them to facilitate their worthwhile objectives. Conversely, if the motive to gain power is only for personal gain they may be very destructive to those in the company who stand in their way.

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This is not to imply that those who impugn other employees are without talent and personal potential, since quite often the opposite is true. Those with high ambition are not weak people afraid of taking risks. They oppose and assail others as one would remove a roadblock with no concern about the defamatory consequences of their actions. Other employees, company policies, truthfulness, the common good, and corporate productivity are all inconsequential to the self-serving executive who seeks greater power for his or her own benefit. Quite often the personal strength portrayed by these people is attractive to the several echelons above them. Those who are close to the power seekers quite often experience the full effect of their harmful misuse of power. Developing the availability of power and being able to use it as one would like is dependent upon the corporate environment and the individual manager's need to exercise power over other people or functions. For the most part it is tied to the manager's ego and the motivational stimulation one receives from using power. The hierarchy or organizational structure and the way management positions interface can either encourage or restrict the availability of power. Some corporations use very strong position power as the dominant management style from the top down. In these situations the use of position power is not only tolerated but encouraged. Those managers who are capable of a more productive use of power can be at a disadvantage in these environments, where persuasion is considered the tool of weak managers. The very top positions in a corporation will set the standard of performance for other levels of management. How the president uses his ultimate position of power will be emulated by managers at lower levels. Some in key positions, like division heads, may choose to set their own standards for the use of power within their areas of responsibility. These managers will absorb the power from above and deal with it at their level, but not allow those within their jurisdiction to become involved. In these situations a more productive and directly applicable use of power can be developed and become the paradigm for those who seek to institute their power as the standard within the area of their responsibility. The development of power can be a systemic reaction to corporate leaders, or it may be directly responsive only to the immediate manager. Using one's power must be governed by the real need indicated by the situation at hand. It should not be the result of exercising a manager's ego. Ego boosting is not productive, even for those executives who are capable of exceptional achievements. Ego-oriented managers are not interested in what is good for the corporation or the unit; they are interested only in themselves and managing their careers rather than their corporate commitments. They will not become involved in anything that will detract from their image, but the objective is to promote themselves. There are many ways in which the use of management power is productive, as presented in Chapters 2 through 8. Developing productive management abilities takes time and dedication to that end. It begins with being

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well informed where power is located and how it can be used. The six positions of power point the way to identifying of the kind that is being used in the workplace. The chapters that follow provide many ways in which one can develop a positive use of power appropriate for the situation in which it is to be used. Personal Success at any Price

The person in this case study rose from the position of a territory sales representative to CEO and chairman of the board of a major U.S. corporation. His face was seen on the cover of Business Week and other major magazines. One would suspect that this was a very talented and exceptional executive to have reached such heights. He was successful, but the price paid by those who were close to him was very high. The first step into management was earned on the merit of his success as a salesman joined with the ability to influence his boss to promote him over other deserving salesmen. As a regional sales manager he became one of six men in consideration to assume the national sales manager's position when it became available because of the death of the previous manager. He acquired the position with little opposition, even though two candidates were more experienced and held seniority over him. His ability to use the power of persuasion was unparalleled when it was directed upward in the hierarchy. The vice president of marketing was extremely influenced by this person and placed a high degree of confidence in his management ability. The sales manager had hardly settled into his new position when he started a campaign to become a close associate of the company president. Within a year he presumed that his influence with the president was greater than that of the vice president of marketing. Although this was probably true for matters related to sales, he had not yet established himself as a corporate executive. It would take two or three more years before he had his plan in place to topple the vice president. When he had secured the support of all of the regional managers to back him in a takeover, he made his intentions known to the president by documenting many personal transgressions committed by the vice president and presented letters from customers expressing dissatisfaction with his handling of their business relationship. The evidence was significant and factual, but it failed to accomplish what the sales manager thought was a sure thing. To remove an officer of the company required board approval and the board did not know enough to have confidence in the relatively new national sales manager. The end result was that the vice president of marketing was given the job of terminating him. The six region managers who sided with the sales manager all stated that they were coerced into supporting him under threat of losing their jobs when he became the vice president. None of them were fired, but neither did they ever

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have an opportunity for advancement. The next sales manager would come from the technical sales group, which in this company was sales service. It was soon learned that the national sales manager who left had secured a position as general manager with a competitive company before he made his unsuccessful attempt to become vice president. Within two years he unseated his boss in the new company and became a vice president. In less than a year he made a strategic move to a bigger, more diversified company and found "coattails" there he would to ride to the top. In the new company his use of power to move up the ladder was ever present to those below him, but invisible to those he would replace on his way to becoming president, CEO, and chairman of the board. When the company's stock plunged after too many costly decisions his tenure was over. He was terminated, but enjoyed a substantial "golden parachute" severance package. Throughout most of his career this person successfully coupled the power of persuasion with position power to influence those above him and intimidate those who were his subordinates. He eventually engineered himself into a position that exposed his incompetence, and he failed. Many of those who were his associates and subordinates also suffered greatly because of his unprincipled use of power. The companies he used as stepping stones to further his career counted their losses in several other ways. They lost significant amounts of money either directly or by lower stock prices. The loss of market-share position, blockbuster new-product opportunities, and the loss of good people were directly related to the self-serving misuse of power by this one man. Yet most of those with whom he worked would agree that he was a successful leader. THE INTEGRITY OF POWER

Use of the word "integrity" in relation to power was selected with consideration of the meaning of "structural soundness." The potential power of the atom is probably the most structurally sound of any source of power. In fact, it is so sound that to utilize atomic power is a very difficult task. Conversely, the structural soundness of nitroglycerine is fragile. Because of its extreme instability it also is difficult to control as a useful power source. In the context of management, power that has integrity is both stable and available in sufficient quantity to be used without fear of repercussions. The power of a manager should be like electricity. It should be very stable, easily controlled, always dependable, and consistently available. The manager's power should be developed and used with the objective of acquiring these same characteristics: Stable—It never gets out of hand in any situation. Controllable—When in use, the right amount of power is applied for the conditions at hand.

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Dependable—One can count on power being used when it is needed. Available—The power source is developed and readily available whenever it is called for. Ineffective managers are known because of their misuse of power or their failure to use it when needed to establish control. The Manager's Power Characteristics

The hydrogen atom, when combined with oxygen, is extremely stable under standard conditions. The formula for water,++++ 20,++++++++++++++ are two hydrogen atoms and one of oxygen to make a single molecule of water. Water covers over 70 percent of our planet's surface and is found in every living thing. It has the unique capacity to take many meteorological forms, such as rain, ice, snow, sleet, or hail, and yet it is the sam+++++++ 2 0 in whatever form it is found. Ice, snow, sleet, and hail all melt to again become water. Even steam given off from boiling water will condense back into the form of water. The stability of a manager's power will never reach that of water, but the objective always to keep it under control is one that should be accepted. When the situation is volatile and the use of power reaches the boiling point, like steam, it should return to its original and stable form without becoming distorted or going off on a new tangent. If the conditions become frigid and the manager's power becomes as immobile as a block of ice, when the situation thaws the power should return to its original form and once again become useful. When the manager allows the use of his or her power to transform into anger, disappointment, overexuberance, pique, unresponsiveness, or any form that changes its effectiveness it has lost its stability. Whatever form of power the manager uses, it should be the form that is maintained for the situation at hand. Stable Power Example

The company involved sent four sales representatives and a manager to a trade show where it was introducing a new product to the retailers who would visit its booth. The manager established the ground rules along with a schedule for each to take their turn attending to the booth and talking with the retailers who stopped to visit. The basic rule was that there was never to be less than two people in the booth at any time. Each was given specific hours to attend, with the manager taking his turn as well. Two of the representatives were unsatisfied with the hours they were given and complained to the manager. When he tried to adjust the hours to their satisfaction the other two representatives became unhappy with the revised schedule and bickering between the men became loud and boisterous. All five, including

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the manager, were upset over the situation. Failing to settle the dispute, the manager stormed out of the room, telling the sales representatives to get together, work out a new schedule, and bring it to the booth within an hour. He attended the booth alone for two hours before they returned without an accord. The manager then reached into his pocket, produced the original schedule, and told the representatives that his decision was final. Analysis of the Example

The manager started by using his authority to produce the schedule and then used his position power to give directions to the representatives. The situation was stable and under control. When his directions were questioned as being unfair, he became emotional, and because he displayed anger and disgust his judgment became undependable. He could have retained stability by remaining in control of his emotions and settling the issue with his position power. At this point he decided to let the four representatives solve the problem. This may have worked if he had retained the leadership and used participation power to broker a satisfactory solution. In that he withdrew from his position of authority, there was no power available to negotiate a settlement. He then broke his own rule for two people to be in the booth at all times, which indicated that he lost control altogether. When the representatives could not come to an agreement, the manager correctly returned to his position power, but failed to use any of the power boosters to help gain acceptance. Persuasion would have been helpful to establish a motive to support the schedule. The situation would remain unstable until control was reestablished by the manager. The first rule to regain stability is to get the situation under control. Had the manager remained consistent with his position power and managed the situation with the strength of his authority, aided by persuasion, and then presented a reasonable motive to accept his plan, he may have temporarily had two unhappy representatives, but the problem would have been avoided. The conflict started when stability was lost. The manager started with position power, attempted participation power, then relinquished his power position, and finally returned to position power. There was no stability in the way power was used, which led to losing control and resulted in continuation of the problem. Control the Power

Using the same example, control should have been maintained by elevating the position power to quiet the objections of the two complaining representatives. By asking them to develop a mutually agreeable schedule, the manager was encouraging them to jointly participate in finding an answer. When this failed the manager had a second opportunity to control the situa-

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tion by applying more forceful position power or leading a negotiation by participation, but he did not. Had he chosen to control, he never would have allowed conflict to take place. The circumstances cried out for the voice of authority to take charge. Dependable Use of Power

Employees expect their managers to be dependable in difficult situations. In our example the manager quickly became angry, changed his directions, and allowed his emotions to bring doubt as to whether or not his decision could be depended upon. Dependability would have been sustained had the manager taken charge using the appropriate type and amount of power to resolve the problem himself. Available Power

The power was shut off when the manager walked away from the situation. Supervisors who are facing a problem must maintain their competence and authority to resolve the situation. If those involved see no authority available to direct and control the circumstances leading to settlement of the difficulty, it probably will escalate out of control until a reliable source of power becomes available to take command. Managers at every level in an organization must use their advantage to provide direction and control over their responsibilities. The type of power used to resolve the situation is the manager's choice. In the example it is likely that an agreement could have been reached with all five participating in a negotiation controlled by the manager. His presence would have provided leadership and authority to the process. He also could have used the power of persuasion, enhanced by motivation, to convince those involved that the schedule he provided had merit and should be adopted. THE INFLUENCE OF POWER

The beneficial use of power permits the hierarchy of an organization to operate effectively. Most organizations are structured to provide those in management positions with the opportunity to become either positive or negative influences on their employees. Those who hold management positions must control the environment they intend to manage, supporting the positive and exercising control over the negative. This is logical. To accomplish and maintain this position takes effort, requires judgment, and may obligate the managing authority to take action against those who are performing in a way detrimental to the organization. These decisions are not easy, and sometimes not even popular, but they are essential.

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It is important to note the relationship between the use of power by managers and its effect on productivity. Although a minority of management problems are centered in corruption or self-serving purposes, those who are responsible for the activities of other managers must not be reluctant to use their "muscle" at whatever level it is needed. The effects of inadequate management may first become apparent in the reduction of productivity as the result of an inferior performance by a group or even one influential individual within the group. Productivity can also be inhibited by the manager who is overbearing and acts as a bully to cover his inadequacies. Overbearing Vice President Example

The president of a marginally productive but large and important division of a company was promoted to the level of corporate vice president of marketing for several smaller divisions. This person, who had inherited a large block of the company's stock, was by this move placed out of the way for expansion plans for his old division. He was not far enough away to occasionally be a problem for those now under his command. On one occasion the new vice president called to meet with the marketing director and a divisional vice president. The purpose of the meeting was to inform the marketing director that his request for a $100,000-increase in his product promotional budget was being approved for only half the requested amount. He added that marketing always asked for twice what they expected, so he was cutting it back to that amount. The marketing director explained that there was an unusual competitive situation threatening to severely curtail sales of a major product and that he was trying to overcome the problem with a $l-per-unit price-off promotion to counter the competitive challenge and maintain loyalty with retailers who would support them. The budget was needed to offset the $1 price reduction on 100,000 units of product. The now angry corporate vice president stated that he did not care what the excuse was, he would approve only $50,000 and expected the full 100,000 units to be sold. As the marketing director tried to explain that the dollars needed were a direct function of the units sold he was interrupted by the vice president and told that if he could not handle the job he would find someone who could. The marketing director took the money, priced 100,000 units at $1 off, made his sales figures, and took a profit markdown from $4 to $3 on 50,000 units of the product. He felt the cost properly belonged in the promotion budget and should not be a temporary price reduction, but it was all he could do. In this example the new corporate vice president used his position power for control, but also for an ego-boosting exercise that provided no benefit to anyone. Unpredictable behavior by managers can produce inconsistent effort and noticeable anxiety in many subordinates. Anxiety will directly relate to lower productivity. Low productivity by an employee feeds his or her anxiety and

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the bad situation becomes self-perpetuating. These circumstances prompt productive employees to look for placement in a more compatible working environment. Those who cooperate with problem managers compound the problem for those who do not, and all contribute to the loss of productive work. Contrary to what one might expect, marginally acceptable management practices can often be traced to those who have been in their positions for a long time. Outstanding managers are either promoted into more responsible positions or find employment elsewhere. Marginally productive managers are left behind and often perpetuate poor management practices. Since newcomers usually do not make waves, those who are new to their positions may be easily led into the poor habits of the older employees. In these situations the authority of a senior manager is needed to restore order. When managers tolerate the poor habits of senior employees, they are tacitly encouraging the same behavior in others. Organizations that will tolerate supervisors that lack management skills can drive ambitious people to question the priorities of the company. Those who set poor behavior examples or disregard company policy must be censored if others are expected to conform to the rules. Managers are aware of these problems, but too few who have the power to make changes do anything about them because they do not know how to effectively use their power. Many managers place too high a value on being liked rather than earning the respect of a competent manager who will use authority and power to benefit all. THE COMPETENT MANAGER

To provide the kind of management that will propel a group of employees or an entire department to a high level of productivity requires the skills and conviction of a competent manager. Much of the ability required to sustain competence in management positions is centered in the use of power. Most who reach the management level are competent in their chosen field of expertise. Unfortunately, many have little or no training in the proper use of the authority that accompanies the responsibility to manage. Lacking managerial experience leaves many unable to ask the right questions concerning how a manager should develop and use power and authority. It is very difficult for some managers to evaluate their own effectiveness. Human nature tends to blind us to our shortcomings and increases tolerance of our faults. There is also a tendency for most people to focus on matters where they excel rather than what needs to be improved. Competent managers will focus on improving their capabilities to manage by constantly reviewing the appropriateness of their actions. When conditions change, the manager's use of power may also need to change to maintain its effectiveness.

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It is necessary for managers to acquire a management philosophy (or method) that will ensure a positive and consistent interface with their employees. Acquiring and competently using the manager's five basic power enhancers, covered in Chapter 8, will accomplish much of what is needed to be a successful manager. Learning to skillfully communicate, facilitate, motivate, evaluate, and support the efforts of employees is the correct way for managers to underscore their power and establish their authority. It is also essential to adopt a dominant power position and develop an effective management style. The following list details the positions of power most useful in normal management situations, coupled with the appropriate power boosters. Even though provider power is not used here, the power boosters most helpful to providers are listed in Chapter 3. Power Source Position Power Persuasion Power Participation Power

Power Booster Communicate, motivate, facilitate Communicate, support Communicate, facilitate, support

Most managers will combine more than one power source and booster. In many situations managers will use the power of persuasion as a constant backup to their primary power source. SUMMARY

When managers realize that they need power to facilitate progress, they can easily conclude that it is beneficial. If the objective is to improve working conditions, facilitate progress, and improve productivity, the manager will be using his or her power as it is intended. It is natural to conclude that wrongly used power is not productive. Nevertheless, even for those who frequently misuse it there are significant rewards. Employees who are near to people that use power for their own benefit will pay the price, and in the long run so will the companies who allow it to take place. Managers must stabilize their power source, control the level of power needed for the circumstances at hand, be dependable in using it when required, and maintain the availability of sufficient power when it is called for. Competent managers will establish their authority and develop an effective position of power. They will also facilitate its use by the incorporation of the appropriate power enhancers to elevate the productivity of those they manage.

ELEVEN Management's Role: Direct and Control The obligation of management is to ensure that the organization is capable of performing its duties and fulfilling its commitments according to an accepted plan. All who assume the significant responsibilities of management are required to direct and control the activities of the organization and its employees. Management is responsible for the performance of employees, operating the functions of the organization, planning for its future, and facilitating its current success. The key word for management executives is responsibility. They must deal with an ever-changing environment of competitive pressure and/or the demands of those who look to the organization for services and resources. In order to direct and control the actions of employees and the activities that represent management's responsibilities, the availability of power must be coupled with the ability to properly use it. Management is also charged with the responsibility to provide employees with a vision of what the organization represents and its management philosophy. The actions of key managers will project much of what employees believe are the motivating factors involved in managing the people and the objectives of the organization. Providing leadership and exercising authority over people does not necessarily mean being involved in everything that they do. Much of the directing is incorporated in planning that leads to producing objectives and goals

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to be accomplished. Directing also includes giving instructions for work in progress and for making or altering plans and activities that must adjust to changing conditions. Each employee is an integral contributor to the organization and therefore must meet expectations; failing to do so may cause the whole organization to underperform. To ensure the consistency of an employee's efforts is a part of the managing activity. One can easily agree that those who accept the responsibility to see that goals are reached should be vested with sufficient authority to direct people and the power to control the environment in which they work. DIRECTION

The management action of directing is primarily one of gathering and providing information. Management will provide directives, specialized training, educational opportunities, and offer many benefits as motivational incentives to direct the action and influence the attitudes of employees. The first objective is to be sure that everyone within the manager's area of responsibility knows without question what is expected from them. How directions of this nature are communicated depends on the situation at hand. They can be initiated both verbally and in writing. Plans that have been approved by the manager will establish the formal directives for everyone involved. The written information can be very detailed for each subordinate, or it can be an outline of the tasks that must be performed. The manager of an accounting section will not provide details of how his or her employees should perform accounting procedures. They know how or they would not be in the job. The manager's task, in this situation, is to gather information to confirm that employees know their objectives and are progressing to reach them. When one is in a position that involves frequent and rapidly changing circumstances, such as would be the situation with a marketing executive, even the details of dedicated planning can change rapidly and require new instructions from the manager. In these situations the effective exchange of information is critical for making sure the direction of the action is on target. Skillful communications are required to ensure the necessary results. Communicating is the first and most important power enhancer used by management to provide direction for all employees. Most employees know how to successfully perform the work for which they are held responsible. Managers who have confirmed the capability of their employees should direct as few activities as possible and focus upon the people who make significant differences in the group's success. Some of these functions would be budget control, productivity goals, personnel requirements, fulfilling commitments, competitive awareness, costs and materials management, financial matters, and the like.

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The following are the five steps in giving direction: 1. Communicate—Select an appropriate method of communicating the directions to be given. 2. Confirm—Be sure employees understand what has been directed and have accepted their responsibility. 3. Measure—employees' progress by periodic evaluations. 4. Maintain—a stable working environment. 5. Follow up—to ensure directions are performed as given. Giving instructions, directing activities, evaluating progress, and correcting problems may take place before and/or during the work process. The first concern for management should always be to select a method of communication that will be effective for the situation. Detailed verbal instructions may save time, but cannot be referred to for accuracy or completeness. Written directions are always preferred for any task that requires a significant amount of time to complete. Confirmation that employees understand the directions should immediately follow and take place before the action has started. Having been assured that the performance expectations are understood and accepted, the manager will advise those who are involved in performing the action that periodic determinations of progress will be made at appropriate times. Holding scheduled and unscheduled discussions or reviews with employees will identify where any guidance is needed. The objective is to confirm that employees are aware of their progress, and whether or not they are following the specific directions given to fulfill their responsibilities. This review should cover both committed plans and less-formal assignments. When required, management will need to guide employees back to their assigned tasks and motivate the pace of their progress. The fourth point is to determine whether or not there are any negative influences at work, either from other employees or providers. The use of one's authority may be needed to eliminate interference or motivate the expected support action of others, including providers. It is management's responsibility to maintain stability in the working environment. In some cases the problems may come from outside of the manager's influence and authority. Even so, whatever is taking place in the manager's jurisdiction, especially the use of power, comes under his or her mandate. The follow-up tasks include confirming that the directions given continue to be appropriate. This is especially important in rapidly changing business environments. Gathering information should be routine to determine if there is understanding and whether employees have the resources to accomplish what has been assigned to them. To make this possible the manager must know what is needed to stay on target. Since the requirements will usually be different from one employee to another, management must find a way to be a re-

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sourceful facilitator. This step is more often thought of as providing resources, but it can also involve motivation and giving assurance that support will be available if it is needed. The key to providing effective direction is in establishing an effective communication system between the manager and his or her employees. Gathering information is a continuous and essential process for the manager to effectively provide direction to the workforce that is relevant and timely. The follow-up activity should not be intrusive and get in the way of the work in progress. Follow-up is most concerned with confirmation that changes in the objectives or directions given have been assimilated into the process to be sure that completing the task will gain the objectives expected. The Pattern of Power in Giving Directions

The pattern of power management in giving direction is always to provide sufficient authority in the position of those who give directions in order to establish the importance of the communication. This is then supported by allowing sufficient use of power to enforce confirmation of the directions given, to measure the progress of the work, to maintain control over all of the influences in the working environment, and then to follow up to be certain the progress being made will lead to the objectives as planned. CONTROL

This is the second half of management's essential activities. Managing is a continuous function that involves many areas on several levels of the organization. Direction and control obligations should be performed in an overlapping sequence of actions. Control is involved as the follow-up to giving directions, but both are normally occurring at the same time. The primary difference between giving direction and providing control is the timing of the activity. Directions precede and control follows the start of a task or project. Occasionally it is necessary to redirect the actions of some individuals while the work is in progress, but this is not controlling what is taking place; rather, it is changing what is to happen. The control activity may become involved in the work itself, whereas directing will not. The activities involved in providing control will include the people doing the work and the work process itself. The following are the manager's control tasks: 1. Establish progress reviews—Check that assignments are being followed and that objectives are reached on time and provide the results expected. 2. Control problems—Provide a plan to control the problems of the people doing the work and the progress of the work in process. 3. Provide support—Facilitate obtaining resources and services, provide motivation and support.

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The control activity takes place at the time the work is being performed. It monitors progress, corrects or prevents problems, and supports progress. The manager's control involvement is nearly the opposite from that of directing. Whereas direction takes place before and during the action, controlling is a review and evaluation process during the progression of the work. After determining that it is necessary, a manager may become directly involved by implementing and monitoring the control action. Most managers do not have the time to be watchdogs over everything that is happening within their spheres of responsibility, but it is their obligation to exercise control over the efforts of all those in their work areas, especially immediate subordinates. The second element of control is to provide a plan that will solve whatever problems are preventing planned progress. When it is determined that corrective actions are needed, the first consideration must be to determine why the problem occurred. This is necessary to avoid making the same mistake that created the problem. Obviously, those who are performing the work must be a part of the planning process to produce a remedy that will have their support. Once a plan is devised and put into action, a close follow-up with continued support for the effort is a part of the manager's control. It is a fine point but an important one that management's control function is participating in the action rather than simply giving directions and allowing employees to carry out what they understood. Both creating the corrective plan and providing support requires that the manager be available to participate in the activity. A word of caution to those who wish to be problem solvers: Clearly identify what the problem seems to be before trying to make corrections. When possible, check more than one source for information. Employees who do the work do not always have a sufficiently objective point of view to offer factual reasons for failure. Taking steps to solve a nonexisting problem or the wrong one is an exercise that is more than a waste of time, since a new problem may be created. Control Example

Following a thorough training program a new sales representative was placed in a large Texas territory. He had great expectations of success and decided to start slowly in order to "get his feet on the ground." At the end of the first month he was only at 50 pecent of his sales quota and had made an average of just over two sales calls per day. All others in the district averaged five or more sales calls during the same period. The district manager called him and told him to immediately make a dramatic increase in his daily sales calls. At the end of the next week he turned in a report showing eight calls per day. The following week he had raised the level to ten. The

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number of orders taken during the two-week period was zero. As strange as it seemed, he thought he was doing what he was instructed to do to solve the problem: "Make more calls!" The district manager was called in for a serious discussion with his supervisor concerning how one evaluates a problem, how to provide a plan to resolve it, and then how to give support to be sure the remedy is working. During the discussion of a manager's primary responsibilities for giving direction and providing control, the reader should have noticed certain key words. These words were communicate, facilitate, motivate, evaluate, and support, the manager's five basic power boosters. When a manager learns to properly incorporate the use of the five power boosters with the power of his or her position, the responsibility to direct and control is more easily accomplished. MANAGEMENT'S SPHERE OF RESPONSIBILITY

Those who represent management will have both direct and indirect responsibilities. The direct responsibilities are found in two areas. The first is managing subordinates and their work and the second is managing functions. Indirect responsibilities are centered in developing relationships with people in the organization who are important to the manager and his or her responsibilities. This may focus on several of the functional activities of the corporation, such as legal, accounting, manufacturing, research, administration, or others. Direct Responsibilities

The direct responsibilities of a manager are first concerned with the expertise of the individual in his or her chosen field of work. This may be manufacturing, administration, marketing, legal, or any other of the many functional activities found within the organization. The second obligation is to direct and control the activities of the people, functions, or services for which the manager is responsible. Whatever the field of expertise, he or she should exhibit a thorough general knowledge of the work to be managed. It is expected that there may be employees whose specific knowledge of the field significantly exceeds that of their supervisor. In some areas, such as technology, it is often necessary for the specialized skills of some employees to far exceed those of the manager. This presents no problem, since the job is to control and direct the application of the employee's skills to satisfy the needs of the enterprise. Competent managers will use their power and authority to ensure that a productive working environment is maintained for all. Whether the employee is more competent in job-related specifics is incidental as long as the manager maintains his or her authority position and management power.

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Consider this example: A major producer of lawn fertilizers and grass seed products brought a marketing and sales executive into the company at the very top of the hierarchy. This new executive would be responsible for over 300 people in his department. The fact that he had no experience with lawn fertilizers or grass seed was of no concern to the president of the company. The new executive had knowledge of the lawn and garden industry at the manufacturing, distribution, and consumer levels but did not have direct experience with retailers. The company sold its products exclusively to retailers. An excellent track record as a manager of people and corporate functions with significant experience in the industry were the key considerations. The fact that the new manager was well versed in directing and controlling the activities of employees overshadowed a temporary lack of expertise in product knowledge and retail distribution. His subordinates were well founded in these areas. Professional managers will successfully perform the important tasks of their position even when their subordinates have the advantage of superior expertise in other areas. This is particularly evident in the upper echelons of an organization. Performing the tasks of management in any organizational environment is a daunting undertaking. The impact of those who can use power to exercise influence, whether from within the organization or from other areas, is a critical concern and must have the manager's attention if control is to be maintained. Indirect Responsibilities

Managers have the responsibility to develop relationships with superiors, contemporaries, and resource and service people, as well as administrative personnel or any other person or activity that has a significant bearing on the success of their operation. They must become familiar with all of the important areas of the company that are likely to make an impact on their managerial effort. Knowing how to productively interface with indirect influences in the company is indispensable. The manager's power of persuasion, enhanced by effective communication, will significantly improve his or her ability to control the indirect influences in the working environment. Managing up and down the hierarchy, as well as across the many lines of activity that keep an efficient corporation functioning, is discussed in significant detail in later chapters. THE MANAGER'S INFLUENCE

A competent manager can stimulate average workers to produce at a level beyond their normal expectations. On the other hand, a less-talented manager may appear to be performing satisfactorily because of the outstanding work of his or her highly competent staff. Unfortunately, neither of these

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situations constitute a sustainable relationship between a supervisor and subordinates. Successful managers will not ignore the poor performance of any employee. They will use the power of their position to make changes, because to sustain success, improvement is a continuous effort. Productive employees will not indefinitely sustain a high level of productivity for a poor manager. They will find both direction and control lacking and will steadily retreat to the lowest level the manager will accept or move to a more suitable situation. A Manager's Destructive Influence

The influence a manager holds over those who are within the sphere of his or her responsibility can be highly advantageous or extremely harmful. A major Midwestern manufacturer with nationwide distribution employed a vice president who provided an outstanding example of a manager's influence with subordinates. He was an All-American football player while in college. From the example of his behavior, he also must have spent a significant amount of time cultivating a taste for alcohol and the company of coeds. His success in business was centered in his ability to turn friendships into sales. He had a way of getting people to do things for him not uncommon to those who stand six feet four inches tall and weigh over 280 pounds. He was intimidating, never took no for an answer, and charmed the company's clients with his stories of the gridiron and the famous people he called friends. This man perfected what we call "street smarts." The president of the company, who elevated him to the vice president position, was also intimidated, and although he disapproved of this man's drinking habits he did nothing to interfere. The tragedy of this situation is how this vice president diminished the lives of several subordinates, blocked the progress of others who were very capable, and tolerated less than average work from those who would support him. Good men and women were either fired, frozen out, or left at the first reasonable opportunity. The president ignored the problems caused by this executive and placed the blame on his subordinates who allowed themselves to be intimidated. In this situation the only one with the power to make a change that would benefit many failed to act. Were it not for the fact that the company was blessed with many unique and proprietary products this executive would have been an obvious failure. He caused three divorces, fathered a child by a secretary in a branch office, led others into serious drinking problems, was dishonest in his business dealings, and generally corrupted the lives of many that he touched. He was never fired, disciplined, or in any way brought under control. Did this manager influence the lives of those under his power? The answer is obvious. In my experience as an executive in several large corporations and a consultant to many others I have often encountered managers who provide

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the benefits of a positive influence on careers and personal lives. Channing Jones, the man who founded the Ortho Lawn and Garden division for Chevron, was one such person. He generated a feeling of self-worth with every employee in his division, whether they were a manager or a territory sales representative. Channing was fair, honest, supportive, intuitive, emotional about his people, proud of his company, a direct communicator, and yet realistic. With a booming voice, he was the indisputable leader of any group in which he participated and was never shy about using his authority when necessary. One of his greatest attributes was the willingness to give opportunity to those who were deserving, and then to direct the credit for achievement to the one who did the work. He was secure in the assumption that his opinion was nearly always correct and defended his convictions strenuously. Nearly all of those who worked in the Ortho Lawn and Garden division of Chevron loved, respected, admired, or at least tolerated Channing's strong character without serious conflict. This consummate manager always attempted to make things better while he provided the leadership and power to make it possible. He was a manager who truly enjoyed the achievements of others. When he retired he enrolled in college to fulfill one of his lifelong ambitions, and at age seventy-two he received his bachelor of arts degree. There are many fine men and women in organizations of all types who, as managers, sincerely try to make life better for those who know them. This does not imply that they make things easier; usually they do not. They will use their power to provide opportunities for the people willing to expend the required effort to become successful. In some cases the manager may ask more from subordinates than they feel capable of giving. If they fall short of these expectations, they will still exceed their own perception of what they could accomplish. Supported by the manager's power, a positive influence can bring out the best in most employees. MANAGEMENT'S POWER POTENTIAL

As stated earlier, it is the responsibility of management to provide managers with both the necessary authority in their position and the use of power to carry out the tasks of direction and control. The managers performing these tasks would like to possess the authority and power needed without interference or the need to seek approval from superiors. Earlier in this chapter it was established that those who have the title "manager" have power in their position, but it is not necessarily power over people. The ability to create programs, enforce regulations, commit resources, provide services, or direct research for new products does not inherently require power over people. As previously noted, a product manager will have a significant amount of responsibility, yet very little power is required to be successful in the position. This is commonly considered to be a staff position. Staff managers

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will direct and control a function (the activities of their job) by the significance of their expertise. They will usually have no direct power over other people, but they can make a great impact on the productivity of many. The admonition to product managers at one Fortune 500 company was for them to know more about their products and markets than any other person in the company. The same high level of dedication to knowledge was required concerning products in development and for the markets in which they were expected to compete. The power of factual information was very evident in this environment and essential for the managers of products. Executives who are proficient in performing their duties will also develop the power of influence with those in higher positions. The ability to act responsibly (avoiding the creation of problems) and to produce quality work, coupled with the contribution it makes to the function it serves, helps to build influence and provide these managers the power to control the working conditions for which they are responsible. When it is possible for managers to influence those possessing greater power, they may occasionally appropriate the power of a superior to serve their own objectives. Specifically, when a manager is known to have the support and trust of upper management he or she can exert power not inherent in their position. The ability of staff managers to create rapport with those in power positions represents the management aspect of their jobs. In general this employs the use of persuasion power. Much of the persuasion effort by product managers will be in the form of indisputable facts in support of their statements. One product manager in a company for which I was a consultant was a rather arrogant person with underdeveloped interpersonal skills. Yet his facts were never in question. Being correct is a very powerful position to occupy; however, being influential can overcome and replace many factual positions. When facts are presented as a challenge or an obstacle to overcome, someone with persuasive communication ability will step forward and accept the challenge. THE POWER OF THE POSITION

As we have previously noted, position power relates to the power of the manager over subordinates. The power of the position relates to the authority of the position, not the person who fills it. We all recognize the power held by police officers. We respond to the authority the badge represents when a policeman asks us for our driver's license. The power of a position is usually enforced by strict regulations and legal consequences for those who challenge the established authority. The position represents authority that has a supporting power source behind it.

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Power of the Position Example

Government employees charged with the responsibility to inspect foodprocessing plants for compliance with applicable regulations have a significant amount of power in their position. The success of their supervision will be measured by how well they direct and control the inspection program and uphold the regulations they seek to enforce. Inspectors can immediately close down a food-processing operation if they find the plant is not in compliance with important applicable regulations. This fact provides the position with considerable power, yet the only power attributable to those holding the position is in the discretion to enforce the regulations they are entrusted to uphold. They do not coerce the owner or manager of the plant to follow regulations, nor can they withhold judgment as to the plant's compliance. In cases where corrective action is required, the proper enforcement actions are ordered and others with the power to do this job take over. Although they are very similar, the power of a position differs significantly from provider power. Those with provider power (managers who control the availability of resources or services) may contribute to accomplishing an action by supplying goods or services critical to get the job done. This fact also presents providers an opportunity to hold power over those whom they serve. Government employees enforce regulations established by law and the only real power they have is in the law. How strictly they enforce the regulations may lead to some personal authority, but their actions can be very visible and are subject to immediate review. These people represent the power of their position rather that the power of the one in the position. THE MANAGER'S SUPERVISORY INVOLVEMENT

Managing is not an act of establishing who is the boss. It starts with confirming who has the authority and the capability to control all of the power under the supervisor's responsibility, whether it is people, functions, resources, or services. Even though all management positions are vested with a degree of authority, some managers will have little or no direct control over other employees. These are managers of functional activities who establish control by the mandate of authority. They are authorized to allocate resources, such as money, manpower, time, or materials. Other managers of functions may provide the availability of essential services, such as shipping, giving legal opinions, purchasing, or the scheduling of production to facilitate the activities of the organization. Although managers of services may have subordinates reporting to them, their true power in the organization is that which is vested in their position as providers. True position power is exercised by

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managers whose primary responsibility is to supervise the activities of other employees. There is a distinct difference between position power, where the manager has the power, and the power of the position, where the authority is vested in the job. Position power is in the hands of the manager, but providers manage their responsibilities with the authority of the position. The way in which each of these managers direct and control the activities of their function will be very different. The following shows the three areas of a manager's supervisory involvement: 1. Managing people—All levels of the hierarchy are included: nonmanagerial employees and managers of functions, resources, services, or other people. 2. Managing functions, tasks, or activities—The management of activities such as credit control, purchasing, product management, and writing contracts may be included. 3. Managing resources and services—Primarily involving money (budgets), materials (equipment and supplies), manpower (staffing), and time (scheduling) as elements in gaining approvals and priorities. Managers or others with authority, supervise the people, functions, resources, and services of an organization. They use their power to direct and control the activities for which they are responsible. The type of power used will depend upon the position of the manager. Many managers have the responsibility to supervise all three of these areas. In a marketing organization the director of marketing may be responsible for the overall functional activities of marketing as well as a staff of managers working at different positions. The activities of market research, advertising, product promotion, planning for product development, organizational planning, budgeting, allocation of resources, forecasting, sales management, and many more activities may be a part of this person's management responsibilities. Those who report to the director of marketing may manage only a single function, such as product management. Although they may not supervise other people, product managers must develop an effective rapport with many others in order to be successful at their job. On the other hand, the manager for a market-research group may supervise several analysts. His or her management concerns will be centered on the validity of the data the group produces. With this in mind, the manager will likely be more involved with the quality of the work produced than the people doing it. That is to say, the market-research manager will act as though he or she is managing an activity or function rather than the professional analysts. The quality of the work rather than the rate of production will be the primary measurement of success. This fact may lead to close supervision of what is being produced, with less attention given to who is doing the work.

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The involvement of a marketing director can be very different from those who do not manage other people. The need to direct and control the activities of employees requires the manager to know their responsibilities and how best they can be fulfilled. To gather this information on a current basis requires frank, factual, and frequent communication, which is the manager's primary power booster. As a general rule, success for most managers is centered in guiding the energies and intellects of employees to produce the best work that is consistent with their capability. The use of power or the authority behind it to facilitate employees' accomplishments is most productive when it encourages rather than pressures them to participate. For this reason, those in control of other people should always try to understand what is needed to motivate employees and stimulate their desire to succeed. One cannot inspire employees to excel if the misuse of power becomes antagonistic. The manager's power should facilitate and support the efforts of his or her subordinates. THE NEW MANAGER

It is not uncommon for managers to act with uncertainty when they first become responsible for the performance of other employees. This confusion occurs for many reasons, but primarily because managers are unable to effectively communicate and understand the difference between a controlling management and one that provides for supportive leadership. New managers may feel the necessity to be quickly identified as the one in command while neglecting to establish interrelationships with subordinates. To take control of a group requires the use of position power, but to become its leader only requires that its members participate. The management situation one is facing will dictate what comes first, the need to establish control in the unit or gain affiliation with those in it. If there is a lack of discipline, the new manager must contain the activities of those involved and use his or her authority to restore productive order. Should the group be well established and productive, the new manager may find it prudent to first gain a fraternal relationship with employees before trying to exercise the authority of the position. SUMMARY

To facilitate direction and control, management must ensure that both the authority and the use of power related to these responsibilities is afforded to those who manage. Management also must take the necessary steps to be sure that managers know how to use their power to bring about the results intended. Giving directions includes not only communicating effectively what is required, but also confirmation that there is understanding by the subordinates who do the work. Measurement of progress and maintenance

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of a stable working environment are accomplished by the judicious use of the manager's power. The manager's control tasks include maintenance of progressive reviews to ensure that objectives are reached, problem prevention and solving, and a system of support for providing the resources and services required. Managers' direct and indirect responsibilities and their influence on employees are critical concerns of management related to the productivity of the enterprise and those who must follow directions with enthusiasm.

PART III USING POWER TO MANAGE

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TWELVE Manage People with Authority and Power Two of the most important activities for most supervisors are managing the people who are their subordinates and managing the functions of the organization for which they are responsible. The next two chapters are dedicated to these subjects. MANAGING PEOPLE

Managing people is without question a difficult task. The diversity of individual characteristics and the response of different individuals to the pressures and motivations of management require constant evaluation. It may be necessary to react to the differences between male and female employees, their age spread, or the variation in employee experience. Territorial differences can require the manager to change his or her approach to suit different locales. Texans and New Yorkers will seldom react to people or pressures in the same way. One should always keep in mind that people are resources in much the same way as money or time. How a manager uses the people resource at his or her disposal is a part of the challenge. One can subvert an activity by not providing sufficient manpower to do a job, or by providing people who are not sufficiently qualified, which may cause confusion and inefficiency.

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Matching the right people for the job is an ongoing evaluation. This requires that competent managers be well informed of each employee's abilities, experience background, motivational preferences, dislikes, energy level, willingness to accept responsibility, and other appropriate attributes important to the assignment. Consider this interesting example of an employee's appropriate attributes for the position in which they are placed. This new employee was a graduate of the University of California, Los Angeles (UCLA). He was well educated and possessed a newly acquired MBA degree from Fairly Dickinson University in New Jersey. The company that hired him did a poor job of developing his background data. He was assigned to a sales territory in New England where, after one year, he was failing to maintain the level of sales established before he assumed responsibility for the territory. After an in-depth interview, it was obvious that he held a strong preference for the lifestyle found in California and specifically the Los Angeles area. Had the company been thorough in its interviewing process, they would have learned that he had been a football star at UCLA during his quite recent college years and was well known in the area. He also had family living on the West Coast from whom he received most of his emotional support. Given the opportunity to transfer to an opening in a California sales district resulted in transforming a person who was close to failure into a productive performer. Acquiring and using detailed background information for new employees is important when it comes to matching the person to the position. Managers who believe that they can "bring into line" anyone they hire fail to recognize that, for success, the more important consideration is how to maximize the contribution that employees can make rather than standardizing everyone into a paradigm of the manager's liking. Managing people involves a resource that is difficult to evaluate. Nevertheless, it is well worth the effort for managers to learn what it takes to facilitate employees to work at their full capability. Chapter 2 and the six chapters that follow provide many insights into solving the riddle of managing people. Each position of power described in these chapters and then coupled to the five basic power enhancers listed in Chapter 8 provides the reader with a method to follow when confronted with the variety of management problems associated with supervising people. Managing people becomes much easier when the manager can use his or her power with the appropriate booster to enhance the positive benefits of using power effectively. Who Are the People?

Probably the most important question a manager can ask is, "Who am I managing?" Unquestionably, the manager will know the identity of each employee who is in a subordinate position, but in the broad application of the word "who" we are seeking to determine much more than an identity.

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The people managed are individuals and as such each will react differently to the manager's style and use of power. The importance of this simple question was amplified by the introduction and wide acceptance of the "management grid" concept in the early 1970s. The idea was to provide a standard means to identify the psychological orientation of employees and to be able to predict how they would react to various situations involving the behavior of managers or circumstances concerning their work. The principle was that people act and react with predictable behavior related to the stimuli offered. The system designated each participant in the program with a numerical location on a grid ranging from 1:1 to 9:9. The 1:1 designation indicated very little response and more reflective behavior in the specific situation presented, whereas 9:9 people were overreactive, strong position-power types. This program had some benefit in that the manager could consider what type of people he or she was managing and how they would react under specific situations. It was limited, however, in that it could not consider the vast number of possible stimuli combinations and variations in a related behavioral response. Managing people starts with attempting to identify how they will respond to managerial authority and the use of power. Extroverts we expect to be outspoken and directly reactive. Most managers are aware that introverts will usually be thoughtful and reflective before they take any action. Here is an example provided by a psychologist in Kansas City. He said, "When addressing a group of people, never ask all of the introverts in the audience to raise their hands; none will be raised. Conversely, if you ask all of the extroverts to raise their hand, some will jump to their feet thrusting their hand in the air to be the first to respond." The vast majority of employees will exhibit attributes of both extremes under certain conditions. In a recent program broadcast over National Public Radio, a person, interviewed as a management expert, made the statement that introverts make the best managers because they do not get involved with the social aspects of the workplace. I can think of nothing farther from reality than expecting a manager to know how their employees will react to situations if they omit the social aspects of their relationship. The workplace or any place where people gather to be together is a social environment no matter how professional the work. Managing people is a social endeavor: We are dealing with intellects, emotions, motivations, reasoning, fear, and feelings of loyalty, trust, and belonging. To eliminate consideration of these social attributes from management is simply asinine. The workplace is a culture of its own. It is usually developed by upper management with a corporate philosophy that permeates the entire organization. Social relationships will differ significantly from organization to organization. A very large East Coast pharmaceutical company does not encourage employee social relationships other than those sponsored by the company. A Midwestern chemical company significantly encourages managers to include

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their employees in their circles of friends away from the business. Neither position is inherently superior to the other, but it is my opinion that extending the hierarchy of the business environment to include spouses and families unnecessarily complicates the manager's ability to manage without bias. The Two Worlds in Which We Live

Can there be any doubt that the world where we do our work is significantly different from that where we spend our discretionary hours? The vice president in charge of manufacturing for a large fabricating company was a strong, top-down, dominant position-power manager at work, but at home he seldom did anything without his wife's permission. An accountant in a responsible management position for a giant food-processing company on the West Coast was Mister Invisible at the office. At home, every action taken by his wife or children required his attention and approval. Even those who are the same well-integrated people at home as at the office will agree that the pressures of each environment fosters different feelings of individual need. The Hierarchy of Human Needs

Sigmund Freud, Abraham Maslow, and B. F. Skinner all made outstanding contributions to understanding human behavior. Yet in the writings of these scholars there is seldom a significant reference to the effects on human behavior attributed to working under the pressures of an organizational hierarchy that is driven by several different sources of power. There are many comments by these distinguished researchers related to power, fear, and other imperatives that affect one's behavior, but none sufficiently specific to relate to those found in a business hierarchy. By comparing the priority of human needs for those in a business environment to those proposed by Abraham Maslow in his writing on this subject, we find an excellent example of how the business hierarchy changes human behavior that is under its authority. Maslow's theory proposed that the most basic need for man is survival, expressed as physiological needs such as water and food. Once these are satisfied, comfort or safety become the most important. The next priority is for love or acceptance. Having fulfilled the first three, one begins to consider status or esteem as the most important requirement. The final priority in Maslow's theory is self-actualization, sometimes expressed as self-fulfillment. In a business hierarchy the pressure of responsibilities imposed at different levels in the organization modifies and significantly controls the behavior of those who hold these positions. The employee's priority of needs no longer conforms to those expressed by Maslow, but are shifted to different preferences by the powers of the business hierarchy. There is no opposition

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to the fact that one's behavior while on the job can be quite different from how one would act at home or at a nonbusiness social gathering. In short, human behavior changes when one is obligated to perform under the pressures and conditions imposed by the power of a hierarchy. Here is a true illustration. A sales trainer was presenting a selling-skills seminar to a group of experienced salesmen. The objective was to point out faults in their presentations that might get in the way of closing the sale. The leader established a role-playing situation in which each of the participants had to make a presentation to the trainer. The trainer would make an objection that the salesperson was to overcome by using one of the techniques presented in the class. Having successfully resolved the problem, the salesman could then continue with his presentation, leading to the closing statement and request for an order. One participant, a former All-American football lineman, stood six feet nine inches tall and weighed over 270 pounds. When the trainer presented an objection and then refused to buy after the salesmen made a very poor attempt to address the objection, the former football player picked up the trainer, shook him and said, "If you don't buy, I'll break you in two." It appeared that his normal combative instincts took over. This person was truly frustrated and used aggression to satisfy his feelings of failure. According to Maslow and Skinner, the aggressive behavior should have been expected in response to the stress this man internalized: His normal reaction to conflict was to become physical. If we place the football player within the hierarchy of a business (not a training session), he will respond very differently. Had the action taken place in the presence of his boss or with a customer in a normal course of business, his response would more than likely have been tempered by his lower position in the business hierarchy. He would not have been able to respond in a way that, for him, was a natural reaction to an obstacle. One just does not threaten to break apart one's boss or one's customer to gain agreement. The more responsibility people have in their positions, the more keenly aware they are of how their personal actions will be viewed by superiors. What they accomplish is important enough to bring attention. The behavior of those with little responsibility is also affected; even when they are involved with tasks of little consequence, they are concerned with being accepted and doing a good job. The controlling factor is not simply the level of one's position in the hierarchy, but is more closely related to the priority of the person's individual need at whatever level he or she is in the hierarchy. Those with significant responsibilities routinely interface with many authority figures, resource people, and other managers over whom they hold no position power. The impression they make in these situations is controlled by their position in the hierarchy related to those they contact. A product manager, when dealing with the director of research, will try to make a good impression on his superior, but when he is dealing with the one

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doing the research, his peer, it will be on an equal basis. When outside of their usual surroundings, employees will respond to the level of the position held by those whom they are with. Within the setting of their direct involvement with peers and superiors, they will respond to their personal priority of need. The Hierarchy of Needs in a Business Environment

There is no fixed relationship between how employees act in response to the pressures of the business hierarchy and their desire to satisfy their personal needs. No matter how high one stands in the organizational hierarchy, he or she can personally be at the lowest level in the hierarchy of individual needs. These divergent positions prompted the development of the theory presented here. The two theories are presented for comparison: In a Corporation (McCalley) Acceptance and approval Maintenance of self-respect Job security Opportunity for advancement Vicarious involvement

In Society (Maslow) Survival/food Comfort/safety Love/acceptance Status/esteem Self-actualization (self-fulfillment)

This list shows the individual needs of people in a business hierarchy compared directly to those proposed by Maslow's theory. Maslow's five levels of human need have been widely accepted as applicable in a modern society. Maslow would have us recognize that the first and most basic of all human needs is to survive. In most business situations, physical survival is not a consideration. Having learned how to gather food, defend ourselves, and keep away from life-threatening troubles, Maslow suggests that we will seek comfort. The relevance of comfort to business is not physical but rather physiological. Maslow's next priority is companionship (love and acceptance). Now we come into the relationship experiences that have parallels in the business setting. The development of one's status in society is directly related to seeking status in business, but for different reasons. To gain social status may be directly related or have little to do with one's business relationship. We seek recognition and acquire objects or positions that others recognize as status symbols. Maslow finishes his list with the need for self-fulfillment. When we look beyond our physical and social needs for a way to contribute to others or to mankind in general we have reached the top human need in Maslow's theory. The goal is similar in our business environment. The relationship is not social but more confined to our standing with peers in the business world. Consider the two lists and relate the priority of behavior in a business hierarchy (McCalley) to that in society (Maslow). Please note that in the

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business climate the first two levels of need noted by Maslow are not considered relevant. When we get to the point of being engaged in employment, our concerns for survival and the need for comfort or safety are considered to be satisfied. Approval and Acceptance

It is generally agreed that before any other priority can be addressed, people in the workplace must feel that they are accepted. Feeling that we are personally included by fellow employees may be superficial when the real objective is to have our work found satisfactory. To be personally accepted by one's peers is difficult if the work one produces is not up to standards. Most employees begin their relationships with peers and contemporaries. This may not hold true in high-tech and research environments where the work achievement is so closely related to self-respect. Personal acceptance holds a lower priority in these situations. Self-Respect Is Needed for Survival

Having achieved acceptance, maintaining one's self-respect becomes the next priority in business settings. Employees will show little initiative when put in positions that require them to provide a service or act in a way that challenges their value systems or self-respect. The values that one attributes to trust, honesty, sincerity, loyalty, truthfulness, trustworthiness, and the like will vary significantly between individuals. Some may be offended by what they are asked to do, while others will not be in the least affected when performing the same tasks. This area relates to Maslow's survival position. When we are in danger of losing our self-respect, we feel threatened because our values are not in tune with those important to our success. In this regard we see ourselves as adversaries of our supervisors. To maintain a positive perspective, employees must be able to perform their work without compromising their self-respect. This could also be equated to being "comfortable" with what one is asked to do to satisfy superiors. This is not comfort in the physical sense (Maslow's priorities), but rather the psychological. For companies of modest size, most of the employees will have more than one task to perform. If a secretary is expected to clean the pot and have hot coffee waiting for the arrival of the executives, it would make this job more acceptable if others took their turns. However, if the person involved is not bothered by making coffee, it will be no threat to his or her self-respect. The Need for Security

Following the first two levels of individual needs, employees will look to the satisfaction of security concerns. When content with the fulfillment of work responsibilities, one will seek a way to make proficiency provide se-

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curity. Employees will measure their security by the positive feedback they receive, such as raises, promotions, and recognition from their superiors. One's security must be intact before seeking involvement in greater opportunities within the company. Security is internalized when those in authority express their approval of one's abilities and accomplishments. Security is not just money or a responsible position, but also includes a consideration of one's future potential. Being able to convert current successes into future rewards is an important perception of how secure one feels in their working environment. As the basic requirements for security are fulfilled, employees will become interested in the availability of more responsibility and greater opportunities. The Need for Opportunity

Key people are dependable, stable, and, for the most part, self-motivated. They will have reached at least the minimum level of security, mostly by their own efforts. To have available the opportunity for advancement is not usually caused by one's own efforts. Employees may feel that their work qualifies them for greater opportunities, but the important evaluation is the prerogative of those in higher positions. Once the manager has identified an employee's individual needs, the action required to satisfy them is greatly simplified. If the employee has reached the point where the desire is for greater opportunity, the manager can tell the employee where he or she stands in comparison to peers. This will lead to an evaluation of what is needed to improve the chances for consideration when an opportunity becomes available. It is also important for those who seek advancement to be apprised of the company's ability to generate such openings for deserving employees. Vicarious Involvement

This is the highest level in the business hierarchy. It relates to participation in activities not directly related to one's job. In this application, the word "vicarious" means acting as a substitute, surrogate, or representative, either for one's corporation or others in the hierarchy. Presented here, the behavioral priorities in the business environment represent the opinions of industrial psychologists and business leaders consulted throughout the country. The words that one may use will vary, but the priority of need is essentially the same. By offering vicarious involvement to deserving employees, managers confirm that they are accepted. Productive people have little trouble maintaining their self-respect or feeling secure in their jobs because of the recognition they routinely receive. This may also be interpreted as qualifying one for promotion. Being offered the privilege to represent the company at a trade meeting or in a corporate committee raises the importance beyond opportunity to the level of significant recognition.

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The Manager's Influence

The manager's positive influence over a person's behavior, attitude, and ambition is directly reflected in that person's willingness to work productively. It is this motivation that provides the stimulus for workers to set for themselves a high level of achievement and the willingness to sustain it. The more one is able to become self-motivated, the greater the potential for improved productivity. In other words, when highly productive people believe there is a good reason to excel, they will make the effort to do so. THE DETERMINATION OF INDIVIDUAL NEEDS

Experienced managers recognize that the reasons why productive people excel are influenced by significantly different motives. What will take first precedence for Jack might be far down the list for Jill. The manager's job is to identify the emotional and physical needs of important employees and place them in the proper priority. What is more important than to offer satisfactory reasons for these people to be more productive? High achievers are not motivated by "hype," but rather by thoughtful analysis and good reasons to put forth the effort required. The following questions are offered to help managers determine the current level of individual requirements for key employees. These questions are provided as examples and are not intended to be applicable in all situations. Managers can compile their own lists of questions to better suit the circumstances of the situation. As an illustration, should the answers be unfavorable to questions relating to opportunity, the person is more than likely concerned with advancement into more challenging assignments. With this information, the manager can assume the way to motivate this employee is to provide a pathway to new opportunities. Managers who will periodically use this checklist or their own to evaluate their top employees can usually come to a decision as to how they rank their priorities. In general, these people are in a position to either facilitate or depress progress. The questions can be answered by the manager, asked of the employee, or both. Each inquiry relates to one or more of the five levels of behavioral need, which is shown in parentheses at the end of the question. 1. How long has it been since the employee received his or her last raise, and how does this compare to other employees with similar positions and tenure? (security) 2. How long has the employee been in the same position without advancement? (opportunity/security) 3. When was the last formal or written expression of appreciation or recognition for an achievement of this employee? (self-respect/approval) 4. Was the persons last performance review given on schedule and was it favorable? (security)

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5. Has any special training been offered and accepted? (opportunity) 6. Is this person allowed to attend industry meetings? (involvement) 7. Does this employee serve on any committees? Has he or she been asked to participate in special assignments? (involvement) 8. Has this employee recently been reprimanded, demoted, laterally transferred, or passed over? If yes, has the employee formally been advised if he or she has made progress in overcoming the problem? (self-respect/security or opportunity) 9. Can this employee perform at a higher level of productivity? (security/opportunity) 10. Is this person in line for advancement in the foreseeable future? (opportunity) 11. Is this employee included in departmental (company) functions? (acceptance/ vicarious involvement) 12. How does this person compare with his or her peers in receiving merit pay increase or other types of formal recognition? (security) 13. Does the manager know this employee's first name, his or her spouse, and the number of children in the family? (acceptance or approval) 14. Is this person asked to perform special tasks that are not a part of the job assignment, such as get coffee, do shopping, run errands, make untrue excuses, or perform personal favors or services? (self-respect) 15. Has this employee ever been selected to represent the manager or the unit at a meeting or at a business function? (involvement) 16. If the employee is passed over for an advancement given to a peer, would he or she be informed why the other person was selected? (opportunity/self-respect) 17. Does the employee compare well with peers in the relative ranking of base salary or overall compensation? (security) 18. Is this employee well accepted by his or her business associates? (acceptance/ self-respect) 19. If asked to dinner by the employee, would the supervising manager readily accept or try to avoid the social commitment? (acceptance/self-respect) 20. Is the supervising manager capable of providing the needed motivation to improve this employee's productivity? (opportunity/security) Evaluating Individual Needs and the Place for Power

The development of information from the list of twenty questions can apply to all. In the context of improving productivity, this information is useful when it is used to evaluate the potential of competent individuals in the organization. Determining why a usually capable person is not performing up to his or her potential or discovering what is inhibiting the progress of a past top producer holds the opportunity for significant improvement in productivity. It is with this thought in mind that managers must undertake the job of using their power to facilitate the expansion of productivity. Becoming well informed of the positions of key people in the hierarchy of individual needs is where it starts. Refer to Chapter 8 for additional information on this subject.

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Approval and Acceptance

Approval is a basic individual need for people in business. It will maintain its importance even when one is fully motivated and highly productive. When it is withheld, nothing else seems to matter. The expression of one's acceptance can be done in very simple ways. When the manager comes into contact with an employee, he or she can extend a friendly greeting. This may sound too simple to be effective, yet open and frequent positive communications will quickly build feelings of belonging. Employees who actively seek favorable recognition may ask the following types of questions: How did you like my work on that last project? Am I making the kind of progress you expected? How do I stand in regard to other employees doing the same work? When you have time, stop by and take a look at what I'm working on. Managers who listen carefully can learn a great deal by what employees say and the questions they ask. Some subordinates will seek any kind of contact with their boss just to let them know they are on the job. Employees need to experience appreciation for who they are and acknowledgment for what they have accomplished. Again, this leads to selfrespect. Some employees actively seek attention, and as responsibilities increase the need to be reassured that they are valued also becomes more important. To insure cooperation between employees, it is important that managers help to maintain the feeling of belonging for the whole group. If one employee is ostracized, others will be affected. The need for approval will never disappear. Established and very secure executives also need a pat on the back and knowledge that they are valued and appreciated. The recognized top performers may not be concerned with their approval rating, but for those with growing responsibilities the need to know they are doing well is always present. Poiver and Acceptance

A manager can make one feel accepted by directly giving attention to the person in question. To influence this person's fellow workers is more difficult. Setting an example for peers to follow is a good objective. When the manager includes the new employee in discussions, meetings, or inquires if he or she is becoming acclimated, these are expressions of acceptance. The manager can also use his or her power of persuasion (coupled with position power) to convince an influential peer of the employee to help. The power of the manager's example can significantly influence others to help in resolving the problem of acceptance. The two primary expressions of acceptance are

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1. Set an example for others to follow. Use position power to include the employee in meetings and group discussions. 2. Use appropriate participation and persuasion power to gain a pledge of help from an influential fellow employee. Self-Respect

When new employees or those new to a job feel that they are approved by their peers, they will usually have no problem with self-respect. However, self-respect may be easily threatened when managers ask employees to perform in a manner that is contrary to accepted social behavior or sound business judgment. All too frequently, subordinates will give in to the pressure of a strong and self-serving manager. Productive employees will seldom give up self-respect to gain approval. What this suggests is that when people feel they must bend the rules of conduct or propriety to be found acceptable they lose the desire to be productive and their willingness to participate is seriously diminished. The employee has the added concern that a manager who will ask a subordinate to do something that is not quite ethical may also have the opinion that he or she is not viewed as having ethical standards. When a manager adversely affects one's perception of self-worth, the reason (motive) to work productively is also jeopardized. As a member of the business hierarchy, much of an employee's actions will represent behavior that may have no direct relationship to his or her personal lives. In fact, the business life is dominant for many executives as well as those who work for them. Even so, if an employee is frequently asked to perform a service or act in a manner unacceptable to his or her basic lifestyle, a decline of self-esteem will result. Conversely, when employees find their work to be inspiring it enhances self-worth. Any action by managers that prompts employees to feel good about themselves is seen as a factor that can promote self-respect. Power and Self-Respect

Confirmation that employees have personal doubts about the place where they work is difficult to establish. All too frequently managers are a part of the problem when this becomes an issue with an employee. In general, the most important action a manager can take is to control the negative power in the workplace. Negative influences by fellow workers often cause one to lose self-respect. Employees who have these problems provide some of the most difficult situations for managers to resolve. In many cases compatibility with fellow workers or the supervisor is the problem. When an employee complains that he or she feels unacceptable to the rest of the group, the manager must determine why and what can be done to correct the situation.

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The following is an action plan to improve self-respect: 1. The manager should consult with the troubled employee to locate the source of the problem. Use persuasion and position power to get the needed information. 2. The employee should be advised what action will be taken to remedy the situation. Provider power with a booster of facilitation should be used. 3. A follow-up by the manager is needed to determine if the remedy is working. Both persuasion and participation power work together. Security

Job security is rarely equated on the basis of income alone. One begins to feel secure when approval has been gained and self-respect is maintained with only a nominal concern for money. As Maslow points out, when people are no longer concerned by the very basic levels of individual need, they feel sufficiently secure to think about their status (esteem) in society. The same holds true in the workplace. In a business hierarchy feeling safe in one's job incorporates both acceptance and self-respect. Employees cannot establish stability without knowing that their work is acceptable and that they are included in the fellowship of their peers. It is important for managers to realize that approval by executives in the higher echelons of the company may be even more important to those seeking advancement than approval by a direct supervisor. Obtaining either greater opportunity or vicarious involvement often depends upon the approval of upper management. Employees who seek greater opportunities or wish to become active outside of their job responsibilities realize that higher authorities may need to give approval. It is the manager's obligation to create the bridge that can carry these employees to greater achievements. As an example of the need to maintain high levels of approbation for key employees, consider this true story about a man we will call Joe D. This was an unusually intelligent person, well educated, productive, independently wealthy, and, at the time, the manager in charge of national accounts for his company. With over fifteen years of successful experience in his field, many recognized him to be the ideal person for his job. Everything Joe attempted he accomplished with more than a sufficient amount of competence, dignity, and charm. He was the epitome of what is called "old money" and Ivy League education. The only person in the company who did not recognize the value of Joe was the president of the company. The president, who came from a "working class" family, said that he felt "uncomfortable" about Joe D. The only complaint he could devise was that "Joe just doesn't seem to fit our business." This was a serious problem of deteriorating acceptance by one person, but that person was the ultimate decision maker. Even after months of trying to rebuild a satisfactory level

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of appreciation for his abilities, Joe was fired. He started his own business and, of course, was very successful. In this example there was nothing Joe's manager could do to change the outcome. With greater diligence, or earlier detection of the problem, it may have been possible to prevent the loss of this dependable and talented employee. In this story it is easy to see that acceptance is an integral part of job security. The priority of individual needs can revert to the very first level at any time in one's career. Crises can come at any time. It is also common that a person who is promoted into a new position will find it necessary to reestablish his or her acceptance as a competent employee who is capable of assuming the increased responsibilities. Before attempting to deal with an employee's insecurity, a manager must first determine what, to that person, symbolizes security. Reviewing the answers to the twenty questions regarding the individual's needs can provide much of that information. With this knowledge, a strategy can be developed relating to the employee's specific requirements. Insecurity comes from not knowing one's status with the boss and others in the hierarchy with whom one is in frequent contact. Competent managers will communicate to their subordinates that they are doing well or advise them when their performance is not up to the expected standard. They should provide encouragement, give recognition, review salary potential, and be sure that employees know of their concern about their welfare. Much of this information may be incorporated into a standard performance review. When the subject is tactfully introduced, most employees will be willing to discuss what represents security to them and what will be needed to attain this level of comfort. It is up to supervisors to present a plan to subordinates that will enable them to satisfy their need for security. A plan is constructed with the participation of the one who feels the need for security. An insightful supervisor can help employees become more confident and more secure, and to perceive the availability of opportunity by identifying the path that will lead to intermediate and long-term career goals. Not all will reach their objectives, but most will gain confidence in the thought that they have the encouragement of a conscientious manager to try. Few executives ever feel completely secure under the pressure of a business hierarchy. Stability is tied to one's expectations at a specific point in time as well as to maintaining self-confidence in one's capabilities. True security comes from a firm belief in the ability to succeed in nearly any situation. Power and Security

Most managers have nearly unlimited power to improve the security position of their employees. They can provide excellent performance evaluations, significant opportunities, raises in compensation, and many other

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accruements that exemplify a successful person. The appropriate use of power to heighten the perception of security for an employee will usually include several of the positions of power. The most often used is position power, as it is the authority to make significant changes that allows a manager to provide promotions and increase compensation. Intangibles such as company politics and the availability of high-level exposure also play a part in job security for highly productive individuals. Providing the opportunity (the next level of individual need) for one to show ability where and when one can gain meaningful exposure is one place for the manager to use leadership. Providing the opportunity for selfimprovement also leads to job security and greater productivity. The following are ways to reinforce security: Show a willingness to use authority for the benefit of the employee, use position power to provide opportunities and exposure to decision makers, and with concern and trust facilitate self-improvement programs to prepare employees for greater opportunities. Opportunity

When an employee perceives that advancement will not be forthcoming no matter what is accomplished, it can significantly inhibit productive work. Employees feel defeated in an atmosphere of futility. When one perceives that under their immediate working conditions opportunities do not exist, the reason to work more productively disappears. Managers must maintain the perception that if one seeks promotion it is available to those who deserve it. When employees feel that they need to cultivate a close association with specific decision makers in order to be promotable but are not among those afforded this opportunity it is difficult to maintain their enthusiasm. If one is of the opinion that a degree from one of the "right" schools is the requirement to qualify for promotion, an attitude of defeat will prevail if one does not have it. Usually this perception is not a reality, but rather is an excuse for some other problem that an employee does not want to face. It is the duty of the supervisor to learn whether key people have incorrect perceptions of what is required to be considered for opportunities that become available. A careful examination of the answers to the twenty questions of individual needs is a good starting place to gather information that will lead to insightful answers. Productive people should be encouraged to seek a variety of opportunity options. Some will be interested in short-term assignments that will enhance their current situation, while others look to future career development that takes them beyond their current position. The pursuit of self-improvement will bring different levels of satisfaction for each person who seeks it. Not everyone will achieve recognition, obtain a raise in pay, or receive advancement, even when one feels it has been earned. Most of those who pursue advancement are aware of this fact. The critical objective for the

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manager is to preserve the perception that those who sincerely try will have a fair chance to succeed. Opportunity, Peer Pressure, and Power

At the opportunity level in the business hierarchy of individual needs competition with peers becomes a significant factor. It is likely that most employers would agree advancement should be available to those who are deserving, yet this is not always possible. There are seldom the same number of new positions available as there are deserving employees. The element of competition presents the manager with yet another variable in considering what may be affecting an employee's progress and contribution to success. Jealousy, a feeling of inferiority, or both can significantly affect the ability to become motivated to improve productivity. These and other "competitive elements" must be considered by managers who are evaluating individual requirements and needs. There is nothing wrong with competition among employees as long as they are competing to achieve a high level of performance. When the competition is for a position of influence with a manager, destructive behavior is nearly inevitable. It is imperative that employers clearly establish that the pathway to greater rewards is founded upon achieving specific goals, and is not founded upon influence, their school affiliation, or who one knows in the upper echelons of the hierarchy. Realistically, when one is productive, enthusiastic, goal oriented, and successful in accomplishing the given tasks, upper management will recognize such performers. The recognition leads to opportunities for occasional association. An appreciation for the power of persuasion and the ability to use communication as a power enhancer is essential if one is to become consequential with those who hold significant power and have the authority to provide opportunities. Opportunity Options

The manager must use full, factual, and frequent communication to keep employees informed of their position in the promotion line. The use of persuasion coupled with all five of the power enhancers is a requirement. To address insecurity, managers should use their authority to provide opportunities and self-improvement programs for worthy employees. Vicarious Involvement

In the discussion of vicarious involvement we identified that this activity takes an employee outside of his or her usual working environment. This is a fairly high-level desire for top performers. Competent and competitive

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employees are eager for recognition and like to participate in activities that take them away from of their usual business surroundings. When they feel secure and self-assured, are comfortable with the approval of superiors, and perceive a realistic opportunity to succeed, the need to get involved in activities beyond the everyday job becomes a compelling priority. The availability of vicarious involvement can be a significant motivational carrot for employees at any level, but this is especially true for the most capable and productive in the organization. Those who are selected to participate in corporate activities or attend meetings as the company's representative will experience a significant lift in self-esteem from the recognition of their peers as well as those outside of the peer environment. These experiences encourage employees to push their priorities to a higher level. The act of including people in new endeavors provides a very positive stimulus and offers a variety of stature-building experiences with little personal risk. When qualified people are provided the opportunity to look over the horizon of their normal environment they will become inspired to think more expansively about what they do. Company and industry meetings, trade shows, and specific seminars that are also attended by people from other companies and industries offer excellent opportunities for vicarious involvement. Power and Vicarious Involvement

As with security and opportunity, a manager can easily find ways to provide vicarious involvement for those who deserve it. Since this is an added dimension of exposure that goes beyond the employee's actual job responsibilities, it is a carrot for the manager to use when dealing with top performers. This gives the manager the power of a provider which may be used to encourage greater productivity and increase the value of the employee to the company. Employees who are allowed to participate in industry meetings, company committees, and the like gain positive position power with their peers and contemporaries in the company. This provides a relatively risk-free opportunity for top producers to gain valuable experience and stature. The following are ways vicarious involvement brings victory: Become a provider for those who can gain from the experience of outside experiences and facilitate the availability of these opportunities with the power of a provider. The manager should use the authority of his or her position to provide the vicarious activities that are appropriate. Managing People and Leadership

A significant amount of the job of managing people may be, and probably should be, centered in leadership rather than managing. As covered in Chapters 14 and 15, learning the skills of a leader is not a subject often found in

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training programs. Chapter 14 provides guidelines for managers to follow when confronted with several common management situations. Managing people becomes much easier if the qualities of leadership can be incorporated into one's management style, as addressed in Chapter 15. A competent manager will possess the skills to manage as well as to provide the level of leadership the job requires. SUMMARY

One of the most important aspects of managing people is to set them free to innovate, create, and aspire to engage the optimum use of their potential. Managing people is not making them robots subject to overbearing power, or even unquestioning followers of inspirational leaders. The ability to accomplish this model is to find and identify who these employees are and where they stand in the hierarchy of business-related needs. With this knowledge, managers can relate to the significant realities in the lives of their employees and find ways to use power to improve their productivity while contributing to their well-being where they work.

THIRTEEN Manage Functions by Accountability In a business functions are specific activities such as legal services, administration, manufacturing, or marketing that support the operation of the company and make up the tasks that are performed in pursuit of its enterprise. For government the functions would be represented by such activities as law enforcement, social services, transportation, legislation, or parks and recreation. In most of these situations the managers at the top, and for several levels below, would not only be responsible for specific activities of the function, but also would manage the people doing the work. To a great degree the level of a manager's responsibilities will dictate the way he or she will manage. The higher the position, the more detached the manager becomes from the people actually doing the work. Many of the managers responsible for functions will be involved as providers. Legal services, purchasing, accounting, administration, personnel, and the like are providers. These functions normally operate with smaller staffs than manufacturing or marketing and will manage their interdepartmental responsibilities by their authority. Within their own group they will seldom manage subordinates with position power, as the work is highly structured and less responsive to position power or even motivation. The quality of the work product is frequently the most reliable measurement of

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successful management for functions like accounting, legal, purchasing, and other providers. The management task here is related to providing services or resources to facilitate the organization. Management of the people who work as providers will focus on their efforts to further this goal as its primary emphasis. MANAGING FUNCTIONS

Managing the functions, resources, and services of a company is a much different job than that of managing people. Executives who may not manage people but are responsible for providing resources and services or facilitating a function deal with elements of the corporate structure that are not reactive. That is to say, an accounting procedure will not give feedback. Neither will a budget, a contract, a legal opinion, or the routing of a shipment. Managers of these activities place their emphasis on being knowledgeable in their area of expertise and providing very professional quality work. They do not manage reactive or responsive entities, as one finds in managing people. The activities that make up the marketing function may include advertising, market and product planning, market research, sales goals, product promotions, pricing, profit plans, personnel requirements, competitive evaluations, marketing-information services, packaging, product logistics, and other tasks that relate to the marketing channel. None of these tasks can be accomplished without people, but the work involved is more analytical than interactive on a person-to-person basis. These are the marketing tasks that make up the function in a business. The concerns of management will first be directed to an evaluation of the quality of the work produced and then to the people who perform the tasks. In the event there is a problem with the work or a change in directions, the priority will shift to the people involved. Less-analytical tasks such as sales and manufacturing are more often managed by directing the people involved and controlling their activities. High-level executives who manage entire functions of an organization can find their jobs exceedingly complicated because they will need to direct specific activities as well as the people involved in them. Managing people who are engaged in the internal aspects of the business, such as legal, accounting, production, or research, is much different than what other managers experience in the sales, marketing, or manufacturing areas. Those who manage lawyers, accountants, engineers, or scientists may have little to do with their day-to-day work. These executives will deal more with accountability than with the direction and control required of the managers of people that have less-structured job requirements. Managers will seldom become involved in directing the work of providers unless they are asked. The following example illustrates the differences between managing functions and managing people.

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Managing Functions Example

A regional feed-manufacturing company in Pennsylvania produces five basic rations for feeding dairy animals. All these products are produced under one company brand and at the same production facility. Corn, soybean meal, barley, alfalfa, and wheat are common ingredients in all five of the rations. These materials are purchased to maintain established minimum and maximum inventory levels at all times. For each specific formula, special ingredients such as vitamins, minerals, medications, and the like are also part of the inventory. The manager of production scheduling provides a monthly forecast of ingredient requirements to the purchasing manager at least sixty days in advance of when it is needed. The objective is to have no less than a one month's supply of these ingredients on hand. There are no requirements for packaging, as the dairy feed products are sold and delivered in bulk truckloads. The manager of production scheduling has only clerical positions reporting to him, thus he has no direct authority over those who do the manufacturing. He will normally receive a quarterly volume forecast for each product from the sales and marketing people, with a thirty-day lead time in case there is a need to make changes in the production schedule. With this information the production calendar can be established sixty days in advance of the expected shipping date. The manufacturing department can secure the availability of needed manpower, assign the use of equipment in the most efficient manner, and establish a schedule for their trucks to deliver the product to the customers. Since dairy animals cannot go without feed for even one day without affecting their production of milk, it is essential to be sure the feed is available and the transportation to the farm is secured. Most farmers do not have the ability to store large amounts of feed, so they order deliveries every week to ten days. The sales manager of the feed company created a crisis when he advised the manager of production scheduling that his group had just completed an agreement with the largest dairy in their region to start supplying them with all five of the company's rations. Although this was good news, a problem resulted because the first shipment was needed within a week and would represent a 20-percent increase in production. In the second, third, and fourth weeks, another 20-percent per week was needed, representing an 80percent increase in production for the month. Considering that there was a one-month inventory of the basic ingredients on hand and that the plant had the capacity to produce at least 20 percent more feed each week, the new orders were taken. By good management planning, frequent communication with suppliers and service organizations, and excellent rapport with employees, the new business was accommodated. The application of these skills and a practical knowledge of people management

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was of great help to the manager of production scheduling, who successfully integrated the new orders into their normal business activities. This example provides the reader with an understanding of the many ways in which the manager of a function (in this case production scheduling) may be critically involved with having and using power directed to managing people. Other considerations included ordering ingredients, committing facilities, and ensuring the money was available to finance the increase in business. Even so, all the other concerns for manpower and the necessity to completely reforecast everything in order to make new production schedules required a monumental management task involving many people not directly responsible to this manager. The ability to solicit the help and cooperation of all departments in the company indicates a leader who is capable of influencing people as well as having the ability to manage the functions of the job. In addition to everything else, the scheduler also provided convincing rationales for the purchasing department to seek expedited orders from their ingredient suppliers. This example illustrates that managers must be skillful in communicating exactly what is required while facilitating the action with critical information, motivating the level of action needed at any specific time, evaluating the progress of the process, and finally supporting all those who must successfully complete the task. All five power enhancers incorporated with persuasion power were required to bring success to this project. The Function of Institutional Management

In government bureaucracies, the hierarchies of churches, and educational institutions, the title "manager" is seldom used. Most organizations that are exclusively involved with providing services will avoid positionpower management. In a government bureaucracy individual position power is not used in the same way as it is in corporations. The focus is on developing and managing a function that operates by the promulgation of regulations rather than directing people. The authority of most positions in government is established by law, through regulatory authority and administrative directives. Many government positions are directed or controlled by civil service regulations. The parameters of supervision for these employees is outlined by written guidelines. Those occupying government positions that have direct authority over other people tend to rely on regulations, directives, and formal performance evaluations as managing initiative. Employees are given performance ratings as an expression of their supervisor's perception of their work contribution and ability to perform as specified in their job descriptions. Even these ratings are negotiable between the employee and his or her supervisor. Frequently there is a rating scale applied to employees doing essentially the same job. The objective is to be rated in the top 10 percent of the scale

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if one is interested in advancement and to avoid the lower classifications. Those in the lowest 10 percent may be candidates for replacement. A government position that is structured to have authority will be accompanied by specifically defined regulations and procedures on how the authority may be used. Those in authoritative government positions along with their employees (who may be protected by the civil service) are buffered from the direct day-to-day management influences one would find in a corporate environment. On several occasions I have had meetings with fairly high-level government officials, and in each instance two or three staff members subordinate to the official were present at the meeting. Perhaps most of the opinions asked of the ranking official were answered as a consensus position of those present. The ranking member in the meeting seldom volunteered a suggestion without first asking the others present to participate in the discussion. This is considered to be consultative decision making to reach a consensus opinion. The intention is to share the responsibility and individually avoid negative consequences. Government employees, college professors, and most others protected by union contracts are buffered from individual involvement and are less reactive to motivational incentives or even the potential of disciplinary actions. This is the environment of institutional management. It recognizes the reality of participation power called collective bargaining. Union officials control the agenda and the issues that are to be offered to management for negotiation with the intent to benefit the union's constituency. Members of the union find that their voices in negotiations are either amplified or silenced, depending upon the willingness of the negotiators to listen to their points of view. The problem with collective bargaining is that to be forceful all members must stand together, whether they agree with the issues or not. As people feel more secure in their positions, they become more independent and less manageable by participation power. The security of one's employment is epitomized in our educational organizations. The use of management principles in the hierarchy of a university is similar to that of government. Professors, instructors, deans, and directors are responsible to higher authority in the hierarchy, but seldom are they managed in the daily performance of their duties. With their ultimate job security and independence, tenured professors are seldom managed or even evaluated as to how well they carry out their duties. In the hierarchy of a university bureaucracy the title "manager" is rarely found to exist, since managing is not a normal activity applied to people. The managing of functions, however, is similar in most hierarchies. Area of Functional Management Control

The area over which a manager exercises control will indicate the extent of the authority placed in the position. It may be only a small section, or it

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may be an entire organization. Obviously, the president, CEO, or chairman of the board cannot manage the entire corporation the same way one would manage a single activity. They will frequently adhere to a management philosophy that can be carried throughout the whole organization. As an example, a major pharmaceutical company created a philosophy to direct its research and development function. It dictated that the main interest of the company was to discover drugs that would successfully treat symptoms of diseases rather than cure or eradicate them. If a drug is successful in maintaining blood pressure at a level that is normal without producing deleterious side effects, taking the drug makes one feel as though a cure has been accomplished. The important difference is that a daily dose of the drug is required to continue feeling normal. Those who must take a drug every day to suppress the symptoms of a disease are customers for as long as they live. However, if the disease is cured the company can no longer count that patient as a customer. For most of these diseases there is no cure; therefore, controlling the symptoms is the optimum procedure. In fairness to the company who established this philosophy, the vaccines they produce are designed to prevent contracting a disease after only one (or two) uses of the vaccine. This logic directs the company's efforts to make one-time customers of the entire population that may be susceptible to a specific disease. High-level managers with important organizational functions may have little or no direct accountability in managing people. Yet the managers of smaller areas, such as a sales district, may be directly responsible for the productivity of each person under their supervision. The area of management control may be determined geographically, such as by country, region, district, or territory. It can even be a specific product, market, or the type of distribution serving the market. The area of control may also be defined as a function, such as manufacturing, legal, accounting, finance, or personnel management. In many organizations there is an understanding, either officially or casually observed, as to how many people a manager can effectively direct and control. This number will vary significantly from industry to industry and by the complexity of the management tasks to be carried out. In governmental organizations, where managing people is less direct and more dependent upon the organizational structure, there may be dozens of people who will identify the same supervisor. In business organizations managers provide a more direct and frequent contact with significantly fewer subordinates. Contrasting business organizations with government bureaucracies, the business manager will be more concerned with those aspects of management dealing with facilitating and motivating employees to perform at higher levels (as with salespeople during a promotional period). Managers of businesses are required to provide leadership, demonstrate skills, or give direct instructions to employees as

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they perform their jobs. In government one is more likely to find administrators supervising and evaluating how well the employees are following directives and procedures rather than providing one-on-one direction and control of the people. The Relevance of a Manager's Title

For each of the management levels identified in a business, it is clear that the person who has the job designation must be committed to the task of managing. One would correctly expect that the position one holds indicates a level of authority. In each case the manager's title indicates responsibility for a function, for the activities of people, or for the allocation of resources and services. The designation of the position relates to the manager's level of responsibility and the degree of independent authority that can be exercised within the organization. In general, most titles relate to the function of the job rather than to people or leadership. The title of a person in one organization and that of someone performing essentially the same duties in another may not come close to resembling each other. The president of one company may be called a general manager in another. Most large organizations establish several levels of management in their hierarchies. Smaller organizations try to consolidate the span of the hierarchy within as few levels as possible. Titles usually have an order of rank to them. As an example, the manager of corporate legal services may report to a director, legal department, who in turn reports to a vice president, legal department. Those who are under the manager of corporate legal services may be designated by the various functional areas of the law in which they are involved, such as patent law, contracts, antitrust, and the like. There are many possibilities for the designation "manager." The Title and the Task

This book has not tried to discern a relationship between a manager's responsibilities and the title. Nevertheless, it is interesting to observe in what manner names are applied to the tasks of management. Throughout most of this book the use of job titles are avoided so as not to associate specific designations with any particular level of management. Positions are too different from industry to industry and company to company to indicate any relevance from name designations. In some corporate environments the title of "manager" is prefaced by a word that identifies the area of the company in which the manager is to perform. Examples would be marketing manager, product manager, sales manager, store manager, office manager, or administrative manager. In other organizations, or perhaps different areas of the same company, the

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manager designation may be followed by a functional description, such as manager, cost accounting, manager, quality control, manager, information services, or manager, research and development. The level of authority is not indicated by these designations; rather, it is the functional area in which the manager works. Managing the Misuse of Power

The misuse of power within a manager's area of responsibility usually means someone is interfering with employees and their work. When interference comes from outside of a manager's direct area of responsibility or from other managers it is often difficult, but nevertheless very necessary, for the manager to regain control, exercise authority, and visibly exert the power of the position. This is not to say that managing is primarily establishing position power. It starts with confirming who has the authority and the capability to control all of the power within the working environment. Controlling the potential power sources within a manager's area of responsibility is essential for the power of managing to be effective. When he or she suspects the misuse of power, one of the most important points for a manager to resolve is the why of the matter. Using power is often quite visible, and to improperly utilize it is even more so. Often those who misuse power are not aware of it. They may be unskilled or do not realize that they are exercising power at all. The executive in control must first question whether or not the one abusing the situation is aware of the problem and then determine why. Later chapters provide many examples of the perversion of power. Often when presumed power is implicated it is because the manager is not exercising sufficient control to maintain order in the workplace. Competition and Cooperation

The scientific experts (Freud, Skinner, and Maslow) all wrote about the impact of fear in the decision-making process. The greater the risk or fear of failure, the poorer the results. These scientists and others also dealt with the effects of competition on competency. Detailed research has proven that the greater the competition, the less accurate the results. Competition creates action, but not accuracy. As reported by Alfie Kohn in the January 1988 issue of The Rotarian, studies conducted by Robert Helmerich and colleagues on businessmen, academic psychologists, undergraduates, pilots, and reservation agents show a significant negative correlation between competitiveness and achievement. The structural order of an organization is established so that all functions can cooperatively interface and serve one another for the benefit of the organization. If cooperation is replaced with competitiveness, the very order of the organization is stressed to function as intended.

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Many companies feature the competitive aspects of management and often pit one manager against another. The most highly paid "motivational" speakers are often former sports figures who inevitably center their message on competition and the domination of one individual or group over another. To them, winning is all that matters. In the business environment, a win-lose result is seldom the outcome of competition. It is more usual that one company will lead and others will follow; in these circumstances the followers are not losers. Because Pepsi is second to Coke in cola consumption does not make Pepsi a loser. There are goals to achieve and competition to overcome, but not by elimination. This is especially true when managers in the same company are competing for the attention of high-level corporate executives. It is unfortunate that cooperation is seldom perceived as motivational. One does not get excited about cooperation, but competition involves a substantial amount of emotional energy. Nevertheless, it is employees working together, rather than in competition, that creates a positive environment in which individuals can respond with greater productivity and corporate functions can interact as intended. For this reason, managers must encourage their people to work cooperatively, with the focus on people working together for the common good. There will always be those men and women who show themselves to be outstanding achievers, and they will rise above the level of their fellow workers. Cooperation will serve these achievers as well or better than competition with their close associates. For managers to build a team of inspired employees it is critical to avoid adversarial relationships among team members. This creates winners and losers on the same team and destroys cooperation. Individual effort should be recognized and rewarded, but corporate goals also need to be achieved. One cannot efficiently reach objectives by creating losers on one's own team. Adversarial Relationships

There are many factors that contribute to the makeup of adversarial relationships. At lower levels in the organization, the effects of these situations are relatively benign. It is a different story when two managers with the same boss but representing different functions within the organization become advisories. Adversarial Relationships Example

Since there have been significant organizational changes in the subject company where this situation occurred, it is safe to make reference without infringement on current conditions. The company enjoyed a prominent position in two markets that sold animal health products. One group, the professional veterinary division, sold

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products for use or dispensing by licensed veterinarians. The other group was the proprietary animal health division, which sold its products over the counter through farm stores. Each of these divisions was headed by a director of marketing, who was also responsible for sales and the development of product profiles for future needs. Both positions were of significant stature in the organization, with occasional exposure at the board-of-directors level. The two directors of marketing were not directly competitive in the marketplace, but at corporate headquarters it was a different story. The director of the proprietary division was brought into the company over the heads of every other manager in both divisions. This was a difficult decision for the company to make, as most of the executives that reached the director level in the hierarchy were lifelong employees of the company who started at the bottom and worked their way up. The new director had no trouble with the managers in his division, but his relationship with the director of the veterinary products division, who was his equal, was troubled. It is understandable that an "outsider" may find it more difficult to gain acceptance by competitive peers than one who came up the corporate ladder. The division vice president, who was the superior of the two, understood the troubled relationship, but he nevertheless gave the new director coveted memberships on two corporate committees that were withheld from the long-time employee. This action exacerbated the situation. The vice president fervently wished to ameliorate the situation and tried several different ways to bring the directors together into a more congenial relationship. Nothing worked, even though both sides seriously tried to improve the situation. The basic problem was one of resentment by the long-time employee, who saw the newcomer given responsibility for the largest division and membership on the two influential committees that was withheld from him. After less than two years, in a desperation move to solve the problem, the vice president switched the two directors of marketing, making the longtime employee director of marketing for the larger proprietary products division and the newer man director of the veterinary products division, but allowing him to keep his membership on the two important committees. It was the vice president's opinion that if each more fully understood the problems of the other they might find common ground in their relationship. It did not work. The analysis of this situation starts with the assumption that the vice president created a situation that caused predictable and expected problems for which he had not provided a plan for resolution in a logical and routine way. In retrospect, it might have helped for the vice president to have discussed with the career employee his plans to bring in a new man from outside the company. He could have used the power of participation to include the established employee in the selection and decision-making process. This would have been initiated with a consultive management style.

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This ploy would have provided the current employee with the self-esteem of being a part of the hiring process of the new man. One would logically believe that if he felt some responsibility for the position being offered, he would have some interest in helping the new person to become successfully ensconced. In addition, it would have been helpful if some accommodation could have been made concerning the committee memberships previously denied the older employee. Exchanging the job responsibilities of the directors was a bold move, but one that increased the competitiveness between the two managers, who were now each placed in the position to outperform his predecessor in the position he previously held. It is not clear that there was ever a derogatory impact on the productivity of either division caused by the personality conflict of the two directors of marketing. Perhaps there should have been an effort to further separate them rather than bring them together. The primary consideration in presenting this case is in regard to the lack of cooperation between two functional elements of the organization. When the behavior of advisories creates a conflict that results in a negative effect on productivity, it must be stopped. In the situation presented the different divisions operated with sufficient autonomy that they had little effect on one another. When the conflict is within a closely functioning group, the manager must become involved to eliminate the possibility of losers on his or her team. No one likes being cast in the role of a loser. Winners, on the other hand, can be very magnanimous in their description of losers. They are referred to as "worthy opponents," "good sports," even "fierce competitors." Moments before they were engaged in a fierce battle, but now the winners, in the glow of victory, bestow upon the losers a title befitting their "valiant efforts," even though they came up short. The title is "loser" no matter what the label. The compliments of the victors are often unacceptable condolences to the defeated and may be seen as elevating the winner even higher for having overcome such a "gifted adversary." Managers should point out the accomplishments of the whole group even when honoring individuals. The objective in providing and maintaining a productive working environment is for everyone to be a winner. Those who seek to distinguish themselves will learn that personal progress depends on cooperation rather than exercising overbearing position power. Being part of a successful team brings a measure of success to everyone, even though some employees may share less than others in the rewards. Using Power in Managing Functions

Since we have already established that the authority of one's position is primary in managing functions, the use of power is considered a support

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activity. It is appropriate and necessary to use power when directing and controlling the people that perform the work of the functional activity, but it is the authority of the position that exerts the control. The type of power and the force of its use is normally much less intrusive for managing people in functional positions than with direct people management, such as in sales or manufacturing. In that the trigger for people-management consideration in a functional position starts with a recognized problem in work quality, the power used is directed to change the way a task is being performed. Criticism of the work rather than the worker is most usual and consistent with the need to make a change in what is produced. It may be that a process or a method of calculation or selection of materials has resulted in the reduction of work quality, and it is in these areas that the manager will direct his or her immediate attention. Failing to find a problem in the instructions or materials provided, the manager of functions will look next to those doing the work. Carelessness or any of the four C's used in the process of evaluating may be involved. Usually capability will not come into play, since the people in these positions are hired because of their technical competence. Compatibility, continuity, or commitment may be a part of the problem. A joint evaluation by the employee and the manager focused on why the work quality is substandard is usually the most productive procedure. The power used is persuasion, to objectively evaluate what has happened and why it took place. All the power-booster benefits of evaluation noted in Chapter 8 should come into consideration during the manager-and-employee discussion of the problem. Employees who are in positions to supply resources or provide services know their work affects other areas of the organization, as they are facilitators for other functions. This visibility relates to quick and effective resolution of any problems resulting in poor work quality. Position power should be used when expedience is of the essence. Most managers of functions, and especially those who are providers, must exercise a high degree of control over the people who are their responsibility to prevent intervention of managers who use their services. Those who need resources will not hesitate to exert pressure when their work is affected by a slow provider. SUMMARY

Combining persuasion with position power allows managers to address the problems of individuals more easily than when only authority is brought to bear. The key to maintaining a high degree of productivity for functions is found in evaluating a problem situation and then supporting whatever resolution seems to be feasible. Since resource positions become very visible when their lack of support leads to the underperformance of other corporate functions, those who manage resources must be problem preventers

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rather than problem solvers. A constant review of work quality will provide immediate information related to how employees are performing. Institutional management involves much less use of personal supervision than one will find in business corporations. In the government, reliance upon directives to inform employees what is expected is universal. Those who are in top positions will meet as scheduled to discuss progress and possible changes in direction. Individual directions are seldom provided. Control activities also depend upon formal reviews and ranking employees by a forced rating system. Educational institutions provide no day-to-day management of employees and nearly ignore any direct control measures. There is little accountability for personal performance, since subjective measurements are unreliable. Functional management should be founded upon cooperation between the various segments of a corporation. A competitive environment may lead to more errors and lower productivity. Since the structure of most organizations is designed for interdepartmental dependency, cooperation best serves functional interaction.

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FOURTEEN When to Manage, When to Lead To provide a clear picture of the differences between leadership and managing, consider the role of a symphony orchestra conductor. During rehearsals the conductor is acting as a manager by giving direction and instructions to each of the orchestra's members or instrumental sections to perform in a particular relationship to the entire organization. The director instructs and guides the contribution of each section to ensure the proper balance, dynamics, and interpretation of the music for the performance to come. During the concert, the director provides leadership to the group as a whole to perform as a unit in the way they were instructed (managed) during the rehearsal. The essential actions are to direct and control the progress of the work or activity, while at the same time providing encouragement and harmonious cooperation to facilitate a successful performance. There is no doubt that the example of the orchestra conductor oversimplifies the differences between managing and leadership, but it does provide an important distinction. Managers are held responsible for the work to be accomplished. They instruct, encourage, direct, and control the activities that lead to a collective accomplishment for the unit. Effective management may not require the benefits of leadership in order to be productive. Yet those who also can be inspirational will get the job done with much less tension, stress, and conflict. Leadership makes the task more fun, the risks

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less stressful, and the results more satisfying. In his book Managing by Objectives (1974), Anthony Raia makes this statement: "Good leaders are not necessarily good managers, but good managers most certainly are good leaders." In general, I agree with this statement as it applies to those who manage people. I might also change the words around to read, "Good leaders are not necessarily good managers, but good managers are certainly better when they can also provide inspirational leadership." Some managers exhibit the qualities of a leader in nearly everything they do. Others show these characteristics in only a few selected situations, if at all. It depends on the need as well as the ability and skill of the manager. Employees who respond to a leader feel as though they are all pulling together. They are motivated by the desire to contribute their best to the unified effort. THE POWER OF LEADERSHIP AND MANAGING

Executives who lack effective leadership abilities often use too much topdown position power. It is significant to note that employees responding to position power will often react as individuals rather than as a team. Leaders inspire the unifying effort of cooperative teamwork. When the person in charge must manage many functions and activities, a unified effort is essential. A cooperative effort is the effort of people who are eager to do what is being asked of them, rather than being required to produce in response to obligation or fear. In the military there is no need for management, since the power vested in the position is used as the only necessary authority to motivate the required action. The provision for instruction (direction) is accomplished through formal training. Control is enforced by the power of one's rank. Those whose rank is below that of the one in charge will either follow orders or face disciplinary action. The lower-ranked people react out of discipline (enforced by fear) or respect for the power represented by higher ranks. Outstanding officers are distinguished by their ability to gain voluntary support for their authority rather than having their orders reluctantly followed out of fear. Position power is at the center of military discipline, but it can be made more effective by incorporating the qualities of a leader into the position. It is these attributes that make managing with position power acceptable and more effective. A manager is most effective when communicating, facilitating, motivating, evaluating, and supporting with the ability of a leader. Employees must accept the management authority of superiors, but they often decide for themselves whether or not to accept the manager as a leader. Yet for some the need to take a leadership role may or may not be a priority. As an example, accountants, computer programmers, and research scientists are hired because of their highly specialized skills. These people may

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also become good managers of functional duties, such as working with numbers, computer systems, or successfully developing organizational skills. The leadership ability of these managers is not a primary attribute in performing their jobs, even though many people in these positions are excellent leaders. Marketing or sales executives, who must gain support for ideas and programs, will find that leadership skills are essential attributes. Example

The vice president of marketing for the Campbell's Soup brand has two new soup varieties to consider for marketing. He has looked at his budget and concluded that only one new product introduction can be supported by the money available. The variety selected will be the one that most positively affects net profits of the group over the next twelve months. The vice president asks the chief accountant and the director of marketing to provide critical information in consideration of which to choose. The director of marketing is to provide the accountant with a proposed advertising and promotion budget for both new products, with a twelve-month sales forecast for each soup variety in both units sold and gross dollars of revenue. The plans developed for the introduction program will also be provided. The accountant is asked to evaluate the profit potential for each product and inform the vice president of his answer. Important in this example is which manager will depend upon his or her management skills and which will be using leadership abilities to provide the needed information that will influence the decision of the vice president. Each will use the authority of his or her position (not their position power) to contribute to the decisions they will make. Obviously, the chief accountant will ask for factual numbers related to net profits at different levels of sales volume and dollars of revenue. This person's job is that of a manager using the authority of his or her position to get the information needed. The marketing group will be engaged in the acceptance of a new idea (the product variety) and how it is to be presented to the public for maximum acceptance. The perception of product benefits must be translated into advertising copy, promotional offers, customer satisfaction, and product acceptance. All this will be accomplished with a substantial use of the power of persuasion. Projecting the value of the new idea requires the convincing influence of a leader. The consumer's good experiences with the Campbell's brand offers the promotion of trust and dependability as key elements of motivation for the public to try the new product. The management task for the marketing people is to determine which of the new products will be the most compatible in the product line (which will sell as new units rather than replacing an existing product). This calculation relates to net new sales for the whole soup product line. Motivating the public to accept a new idea (product) is much more problematic than man-

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aging the calculations of profitability or product sales. The critical power source for one involved with presenting new ideas, new programs, or changes in existing situations is the skillful use of leadership in influencing acceptance for what they propose. Obviously, persuasion power is the dominant resource for creating influence. Acceptance must then be followed by providing the appropriate motivation to encourage the required involvement of those who will make the changes. Managers Must Use Their Power

One who holds a manager's position will exercise power over people, functions, programs, resources, or other activities in the organization. When these supervisors depend upon their authority to direct or control activities, they are managing from the structured power of their position. This may be position power, provider power, or policy power. Leadership is not essential when the power of one's position is the dominant force. When one is using persuasion and expecting an enthusiastic response from employees, the skills of a leader will greatly enhance effectiveness. It is logical to assume that the presence of a leader is necessary when directing the collective participation of a group. Every committee, task force, board of directors, or work detail identifies someone as the leader. For business units, the one in charge is called "manager." Why do we not call the person heading up a committee a manager? The answer is because they are in charge of nothing other than keeping order or following the agenda set by the group. Yet the one who has acquired the qualities of leadership may very well influence committee members to follow his or her suggestions, and in so doing assume the position of manager. When the chair has gained the ability to direct and control a committee, he or she is in control and is effectively managing with position power. MANAGING

There is a distinct difference in the way we perceive the actions of a manager and those of a leader. Managers are customarily evaluated by the results they produce. They may manipulate, coerce, plan, entice, and even demand employees perform as instructed. By whatever means, managers will seek to produce the results expected. It is helpful if managers use not only their position power along with the five power boosters, but also include the power of persuasion in their management style. An influential and convincing dialogue is developed by managers who effectively communicate, facilitate, motivate, evaluate, and support the actions of their employees. Managers are easily identified and thought of as bosses. These are the people who are visibly in charge. On the other hand, when one is managing with leadership, one is more likely to be identified as a leader than as the

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boss. Leaders are nearly always perceived to be positive. They are skillful communicators and excellent providers of motivation. They may also facilitate, evaluate, and support those they lead, but these activities are centered in the power of managing and are not an essential part of the leadership role. The most essential use of power for leaders is persuasiveness that leads to a feeling of trust and respect in those they wish to influence. When managers add the attributes of a leader to their managing style they may also motivate, influence, and convince employees to optimize the use of their professional capabilities. Inspiring, persuading, and motivating are part of the attributes of a manager who can be recognized as a leader. It should not be forgotten, however, that the first duty of a manager is to control the forces that lead to the successful completion of his or her responsibilities. Titles Relate to Managing and Authority

Titles are provided to indicate the level of power one can exercise. The rank or hierarchy of title relationships within an organization indicates who has power over others. We easily understand that the president of a company has power over all who hold the title of vice president. Below that level, the relationships become less obvious. The subject of titles was briefly covered in Chapter 13, yet it is important to relate this subject to both managing and leadership. Titles used in corporate organizations will universally identify the management activity of the job. The emphasis is placed on the function for which the manager is responsible, such as marketing, accounting, legal, research, or regulatory affairs. Even at the highest levels of the corporation the titles are descriptive of the management responsibility rather than relating to leadership. Consider these titles in regard to the holder's primary accountability: chief executive officer (CEO), chief financial officer (CFO), chief operations officer (COO), or even the title of president, which relates to the ultimate authority in the company. In each of these titles one can easily identify the area of responsibility. The CEO relates to executive authority, the CFO is responsible for financial matters, and the COO is the officer in charge of operations. Further down the hierarchy the titles become more descriptive and less obvious as to the position and the power they enforce. In a marketing organization, from the vice president of marketing down to the marketing director, marketing managers, and the product or market managers, the titles relate to management activities or responsibilities. Even here, where we expect leadership to be an important management attribute, there are no individual titles related to leadership positions. The closest we can find in corporate organizations are titles such as group vice president, chairman, director, coordinator, or foreman. Yet the people in these positions function as managers with a considerable amount

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of authority but little personal power. They function more as administrators than as leaders. In religious organizations, governmental bureaucracies, and especially the military, all of the titles relate to the rank of the position in the organizational hierarchy and the level of authority the position represents. Upper-Level Executives

In most organizations the top executives usually deal with a fairly small group of managers whose competence is recognized. The undisputed power incorporated into the positions of these people is well recognized and established by the high positions they hold. Top-level executives can use their power to any extent they wish, however those who have mastered the power of persuasion seldom need to impose their position power. The primary benefit to the upper level is enjoyed when the second level of responsible executives is controlled by persuasion. When this is the case, these executives will manage by their own initiative and the higher-level executives do not risk the exposure of authorship for the actions of their employees. In this way the upper level of authority uses its power as an influence for the next level to be guided in using its power. As this concept is applied to managers further down in the hierarchy, we find that the lower one goes, the more direct position power is needed to control the actions of subordinates. This is considered necessary, as lower-level managers have less experience and perhaps less ability to effectively manage without closer direct supervision. In this way the supervising manager's power is used not only to control the activities of subordinate managers but also to supplement their power in support of their actions. The executives immediately under the top officers of the company should not need, nor do they receive, direct supervision to perform the duties of their work. It is assumed that they got where they are because they have proven themselves capable of performing at that level of expertise. Managers just below the top executive positions look for leadership rather than help with their management abilities. Most top executives develop a cadre of managers willing to follow and support their initiatives. The leadership that the second-tier executives incorporate into their management encourages a willingness for the next level below them to follow the example, seek higher levels of responsibility, and use their management power to productively support the objectives set by the upper-level managers. The Management by Objectives System

The development and wide usage of the management by objectives (MBO) system has gone through at least three major evolutionary changes since the concept was first discussed by Peter Drucker in the mid-1950s. Several management systems based on MBO but modified by companies for their

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specific needs are effectively used today. Our interest here is in examining how power is intended to be used in a management system and how it has evolved in today's business environment. It was Drucker's contention that the most critical task of management should be management by objectives and self-control. This is initiated by each manager for his or her own unit. The primary job of the manager is to instill the idea of self-control in subordinates to facilitate the achievement of their own objectives in support of the goals of the unit. The requirements of each subordinate's job is detailed and written into a document referred to as the employee's "objectives." The manager discusses the objectives proposed with each employee and negotiates a commitment that becomes an agreement for performance during the coming year or work period. This agreement is signed by the employee as one might sign a contract. The power to enforce the agreement is fear supported by the manager's position power. MBO should have been named management by obligation. MBO provides for a scheduled review of the progress for each employee as well as for the manager. Keep in mind that the manager is also obligated to sign a detailed performance agreement that represents the total of the objectives to be reached by his or her employees. The inherent power represented by the signed documents is intended to act as a motivational incentive for employees to become voluntarily self-disciplined and perform up to expectations. The idea of self-control by each employee, first expressed by Drucker, was to provide the motivation to complete one's work as agreed. The MBO process included goal setting, action planning, self-control, and periodic progress reviews. All of these are worthwhile objectives in any management situation and are used in many management systems today. Self-control makes the individual, not his or her supervisor, responsible for controlling his or her own work ethic. Any needed corrective action required to reach the objectives is also the responsibility of the individual. This concept evolved into an attempt to manage without the need for leadership. In my opinion it was and is a major flaw in any management philosophy that depends on self-motivation provided by the pressure of an obligation. Employees who are committed by an agreement to reach specific objectives still need the resources of a facilitating manager as well as the encouragement of a knowledgeable leader. When employees need direction, it will come from a manager; when they need inspiration, it will come from a leader. As the MBO system evolved and was replaced with newer more organization-oriented programs, the self-control or self-management aspects were dropped in favor of position power to exert what is today viewed as a need for more direct control over employees. Under these circumstances, enlightened leadership is essential for optimal results. Unfortunately, it is too often missing. Since it is difficult to use position power across structural boundaries in an organization, the influence of a skilled leader is critically

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important when success is dependent upon the cooperation of other people, departments, functions, and even subordinate managers. When managers exercise authority from the power of their position, they find it is convenient to ignore trying to influence employees with persuasion. Yet we know that employees will seldom stretch to reach their potential when persuasive leadership is neglected. Most people who are obligated to follow instructions want to know why they are being told what to do. Anticipating the questions in the minds of employees and answering them before they become concerns is the act of a considerate leader. This is the missing motivation in MBO type systems. LEADERS

Leaders are often known by their ability to influence, inspire, and persuade others to follow their direction. Much less attention is given to what they accomplish than to how they are able to prompt others to follow. The skills that are required to establish the role of a leader are often misunderstood. We talk of their charisma, courage, and other personal characteristics that concern the regard others have for them. Yet those we recognize as truly great strive to instill the feelings of trust, loyalty, and respect rather than awe in their followers. These qualities can only be accomplished over a period of time and with a background of many good experiences. In the military leaders are easily identified by the stars, bars, and stripes they wear. The rank of admiral, general, captain, or sergeant indicates the role of one who is the head of a fleet, an army, a company, or a platoon. Those who are under the command of an individual with a higher rank have no option other than to accept the fact that the designated superiors are in charge. They are not known as managers. As previously stated, position power is the ever-constant and predominant authority in the military. Directing and controlling others by using one's authority requires less management or direct involvement than any of the other positions of power. It also takes less time. In the military the responsibility for communication is significantly shifted to the listener rather than the one initiating the message. Facilitation and support is provided by the organizational structure; the evaluation process is arbitrary and not negotiable. It is also true that in the military motivation comes more from within the individual than from a superior rank. Even so, inspirational leadership in the military can be found at nearly every level. The Power of Leadership Skills

In general, managers in a corporate, governmental, or religious hierarchy often do not have a highly developed perception of leadership skills or an awareness of the need to use them. This is not considered to be an essen-

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tial element of managing. Managers are trained to perform functional duties in a field of expertise that is of their own choosing. The concept that whoever is in charge is also the leader is a false one. Many managers do not find that building allegiance with employees is a task they can easily assume, so they will use the power of their authority in its place. Leaders have a considerable amount of power, but employees seldom feel that it is used to coerce them or demand they perform. Their power is focused in the ability to convince and influence employees to do what the manager wants. American Management Association Example

Most of the structured training programs designed to institute the principles of leadership start by emphasizing the importance of persuasion and influence (two key attributes), and from there they evolve into using power to bring about and reinforce the leadership position. In most programs this is position power presented as the expedient way to authenticate one's superior position. The only true power that one can use to establish a following is the power of persuasion. The role of power in leadership training too often obligates employees to follow rather than influences them to make that choice. In many leadership programs the power and authority of management is positioned to dominate the power of persuasion, which is the hallmark of leadership. This concept needs to be challenged by placing persuasion as the preferred first element of demonstrating leadership in preference to position power. The most effective and beneficial of the programs with which I am familiar are offered by the American Management Association (AMA). In the premier leadership program, which I attended several years ago, for the opening exercise each participant is asked to present a one-minute profile of himself or herself in front of the whole group of about sixty or seventy executives. The idea is to "profile" your capabilities and, by mutual agreement, join with two others to make up a team with the potential to effectively work together. This opening can be a bit chaotic, but eventually it resolves into teams of three people. Each team then joins with three others to form a group of twelve. Every day during the week a different group of teams comes together to engage in different training exercises. Under the watchful eye of a trainer, activities such as problem solving, decision making, organizational manipulation, building influence, and personal recognition are undertaken. In addition, everyone has the opportunity to impress not only their own team members with their leadership abilities, but also others who made up the teams of twelve. The idea is to first establish oneself as the head of the team of three, and then with each group of twelve. In that none of the participants has a power position over any other, the program starts with everyone on an equal footing. This concept of ere-

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ating the conditions that can allow the leaders in the group to gain control is quite sound. In a business unit, leading and managing are not separate or independent, but rather interactive. If this is true, and I am quite certain that it is, then it would be beneficial to provide a source of power incorporated into the exercise to also integrate the managing activity. Since position power is not available at the AMA seminar I attended, the power of persuasion, a primary attribute of leaders, is intended to become the dominant power influence. Perhaps provider power could also be used. As each team of three starts working together, one member always gains leadership by using persuasion power. It is a logical next step for this person to incorporate presumed power in his or her actions as the team leader. This is logical, because as one team member assumes power over the others by permission of the other two, the presumption of a power base is established with position power over the other team members. Step by step the power position evolves from persuasion, to presumed, to position power. In the final step one incorporates his or her authority. When the head of one team is strong enough to persuade others in the group of twelve to accept him or her as a leader, the same presumed power is exercised over the group. Position power is subsequently expanded over the four teams comprising the group of twelve. Keep in mind that some force of power is required to establish the management aspects of participating in the activities of the group. This makes the acceptance of a group leader or manager not only desirable, but necessary to undertake the tasks the group is asked to consider. When twelve people are sitting in a room with no organizational structure and no one in authority to get things started, someone must presume to take the role of leader. If a stalemate or inactivity continues, the trainer will push the group to start considering how they are going to make decisions. The trainer will ask everyone in the group to make a statement of how he or she thinks they could get started. This outside use of power to get things going is intended to start the flow of persuasion power from one speaker to the next and eventually establish who will become the consensus voice of the group. It begins with the persuasion power of the speaker, leading into presumed power over others in the group and/or participation power as the speaker persuades participants to give their support. Before the session is over, the acclaimed leader will demonstrate position power within the group. Leadership is at work in these meetings and a valuable experience is available to those who choose to participate in the competition that leads to establishing one person directing the activities of the group. Not everyone will make the choice to participate or try to be identified as influential in the group. However, most of the participants in these training sessions are active and vocal supporters of those they chose to be at the forefront of the activity.

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Managing is also at work, since power is needed to move the process forward and accomplish the tasks assigned to the group. The use of power by someone is always necessary to focus energy into productive activity. In the end, the AMA program proves the point that leadership skills can be learned and used by managers. This experience may be of even greater benefit if the power used to obtain and maintain a leadership position is identified and evaluated in the training process. The essential elements of trust, respect, and loyalty required to sustain a leadership role are not mentioned in most leadership training programs. Obviously, one cannot develop trust, respect, or loyalty within the period of one week, but the highly competitive atmosphere of vying for a position of power in a short period of time obfuscates the characteristics of sustainable leadership. It would be a valuable perspective for participants in these programs to understand the basic elements that together establish a lasting leadership position. Leadership in Action

In most organizations two different types of leaders evolve. There are those who authenticate themselves by position and authority and those who assume to be self-appointed. Both types will exercise influence in the organization. The self-appointed leader is one who has presumed to have power not provided by the position he or she holds. As we have learned, assuming a role without the rightful authority creates an unauthorized power base in the organization. Unauthorized leaders frequently try to influence fellow workers with repressive criticism and obstructive interference, yet this is not always the case. When the one who has actual authority over the group does not fulfill the role, one who is not empowered may step forward and provide helpful suggestions to fellow employees to fill the void of command. When this occurs, a critical evaluation is needed to determine if and why the self-appointed leader is seeking power and how that person intends to use it. It is the motive that determines whether his or her actions will be acceptable. When employees know the motives of their superiors are unselfish and objective, they can be directed with a minimum of pressure, whether the power source is true or self-appointed. In the presence of a strong manager, the influence of a self-appointed leader is ineffective. In situations where executives find that an employee has assumed a position of influence, they need to review their own effectiveness. Unauthorized leaders are often trying to satisfy a need not being fulfilled by the one with the authority. When managers are in control of the power within their working environment, capable employees are free to work with innovation and creativity. As interference is eliminated, the authority figure should get out of the way of productive employees and facilitate the opportunity for them to work by

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their own initiatives. The following statement sums up this idea: Good management is like a good stomach. When it is functioning properly, you don't even know it is there. This statement was borrowed from a reference to good government, but it very adequately illustrates the requirement for competent management in any organization. When managers who are not natural leaders provide a positive working environment, they can get out of the way of willing employees, who will feel free to innovate, self-motivate, and produce effectively. MANAGING PEOPLE

The act of managing people should include the elements of both leadership and management. Most managers will include the power of persuasion in their management style, whether they recognize it or not. It is also true that there are few business situations in which the power of persuasion alone is more effective than combining it with the position power of a manager. The Relationship between Managers and Subordinates

Executives will often approach the task of managing people as though it is an independent activity, and fail to consider the need to develop personal relationships with subordinates. Managing people is not a function to be performed; it is a process that develops between the supervisor and a subordinate over a period of time. It is also directed to specific people, who may have different needs that require the manager to be sensitive to the varied interests and achievements of subordinates. As a manager moves up the hierarchy, the need to incorporate leadership into his or her management style becomes ever more important. Because of their experience, those at higher levels in an organization are usually more skilled managers than those at lower levels. For this reason, one who has extensive experience will often emphasize the ability to influence over exercising the power of their position. The Power of a Manager or Leader

It is unfortunate, but nevertheless a fact, that people are often hired with little consideration for their leadership ability. The perception of an applicant's charisma, persuasiveness, and ability to be influential or to inspire others is considered by many to be too subjective and difficult to evaluate. These hard-to-identify qualities are seldom given more than passing attention in employment interviews. Some interviewers question the sincerity of those with charisma as being too grounded in the immeasurable qualities of persuasion and influence. One interviewer of a job applicant expressed this view: "This person is just too charming and not sufficiently authoritative

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for the position." It is odd that such a statement would originate from one in a personnel position, who should know that using authority and providing leadership are complimentary to each other when skillfully blended. In the military, where position power is dominant, leadership and authority are often found working together. The infantry sergeant who is at the front of the group going into battle is picked because his troops will follow him. It is understood that the sergeant, and the troops under him, are trained to do their job. The sergeant will lead more than direct his men. Senior officers are selected for their ability to manage resources, produce plans, and act as strategists and tacticians. If they are inspirational or charismatic as well, this is a bonus. Except in a very few cases, as exemplified by people such as Generals Douglas MacArthur and George Patton, the impact of one's personality will affect only the officer's immediate staff. Referring back to the example of the symphony orchestra, one can assume that the conductor has little to do with the development of the individual skills of the musicians, but he has everything to do with how those skills are blended into a cooperative effort within the orchestra. The conductor establishes the tempo and dynamics of each section. He also provides guidance by giving instructional directions during rehearsals. In the concert performance the musicians trust the conductor's ability and are motivated to contribute their best efforts. A similar relationship can exist between managers and employees who are pursuing a common goal. The premise regarding the power of a manager or leader is as follows: Managing actions are needed to provide direction as well as to facilitate and control the progress of an employee's activities. Leadership is needed to encourage everyone, both individually and collectively, to put forth their best effort in reaching the objective. "Direct," "facilitate," and "control" are the key words for managers. For leaders the words are "communicate with persuasion" and "motivate with inspiration." Managers are needed to establish goals and maintain control of an activity. Leaders will inspire employees to reach a successful conclusion without conflict. Those who use their authority and those who inspire should be one and the same. Managing People with the Power of Leadership

Pure leadership requires none of the attributes of managing. The qualities of a leader are in people skills. It all starts with communication that facilitates motivation. Taking genuine satisfaction in the achievements of others is the mark of a mature leader. The use of power in managing people is more complicated than pure leadership. Seldom is there an opportunity to act purely as a leader in the business environment, where managing is a constant necessity and the use of power is needed to get things done. Employees will respond either to a convincing message or to a manager's power, whatever is used under the circumstances. That is to say, a voluntary re-

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sponse to one who is inspirational will often produce the same results as the response to a forceful manager. The reaction of employees to the use of power by a superior must be considered in the context of the person or people involved and the circumstances of the management situation. Employees often respond to management pressure with different reactions, whereas the response to influential persuasion will usually produce a similar reaction. When everyone is motivated to respond alike, the management job is greatly simplified. What is generally recognized is that the expertise needed to manage people starts with the five basic power enhancers introduced in Chapter 1: communication, facilitation, motivation, evaluation, and the ability to support subordinate employees. When the qualities of influence and persuasion are incorporated into managing people, the emphasis is upon communicating and motivating. These people may or may not facilitate, evaluate, or support their followers. Those activities are best accomplished by managers who use their power for the benefit of individual employees and their company. The role of a leader is centered upon influencing people to become involved in a task rather than providing the resources needed to accomplish it, support it, or review what happened. These people are not so concerned with how they will reach the goal, they just want to get there. Leaders Are Persuasive Communicators

Probably the most important element one can perfect in influencing people is centered on how well one communicates with subordinates. Being a persuasive communicator is considered to be an essential quality. We are told that the power of the word is greater than that of the sword. The manager would say that power comes from what is said; a leader would say it comes from who is speaking. Neither position is incorrect, as both the message and how it is communicated can be persuasive. Managers will stress the content of the message, whereas leaders will depend upon the convincing influence of the one who delivers it. In the words of Harry A. Overstreet, "The very essence of all power to influence lies in getting the other person to participate." Before one can become a participant, it is essential to understand how one is expected to perform. This is accomplished through effective communication (see Chapter 8). The Power of Motivation

There are many ways by which a leader or a manager can motivate others (see Chapter 8). Within the context of management, the most critical motivational requirement for subordinates is a good reason for them to become enthusiastic. People are willing to follow when they trust and respect their

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leader or manager and are convinced that what they are asked to do is reasonable and worthwhile. Trust and respect, coupled with confidence in the leader's management capabilities, provide the foundation for establishing a relationship that will last over a long period of time. Motivation based on emotion is usually of short duration. Emotional highs do not provide sustainable motivation. Those in management positions know that to be successful they cannot depend upon persuasion alone to support their decisions. Controlling the working environment is more important than manipulating the people in it. This means that facilitating, evaluating, and supporting the efforts of subordinates must be compatible with the reasons that motivate. Although we recognize that those who stimulate others to follow are usually motivational, those who provide direction and control can also be very successful motivators by providing exciting programs and reachable opportunities and giving recognition to employees for their accomplishments. Expressing one's satisfaction at the efforts of others is motivational, no matter who expresses the compliment. Competent managers routinely express their satisfaction at the work produced by their employees. It is interesting to note that leaders will usually compliment the person for their achievement, whereas a manager will more often compliment the employee's excellent work. This can be explained by the premise that leaders feel the person is more important than what he or she does, whereas the manager will value the work first and then recognize the one doing it. Competent leaders and managers are known to be skillful communicators, effective motivators, and consistent supporters of their employees' efforts, recognizing both the excellence of the work and the person who produced it. In the business environment, managers will often be called upon to provide true leadership. Those who understand the difference between managing and leading can accomplish both successfully. Forceful managers must understand that leadership is based on trust and respect. William Hazlett reminds us, "You may order and drive an individual, but you cannot make him respect you." This comment is appropriately followed by the words of J. S. Knox, who said, "One cannot antagonize and influence at the same time." Manage the Differences

In situations where employees are experienced, well trained, or engaged in work involving a special skill that they are qualified to perform, the manager's role will mostly be that of a facilitator. There is little need to provide direct supervision for nurses in an intensive care unit. These highly trained people know how to do their jobs. Yet the nurse in charge (the manager) of the intensive care unit must be sure the necessary resources for the work are available, direct the activities, and provide the leadership required to encourage (motivate) excellence.

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Highly Skilled Employees Example

Consider this scenario. A large pharmaceutical company engaged in research to discover a vaccine for the prevention of AIDS needs a specialized piece of equipment to advance this work at a more rapid pace. It is estimated that the equipment will save two years of development time. There is still no guarantee that a new vaccine will be discovered to safely provide the level of immunity necessary for a commercially acceptable product. This equipment will only provide answers more quickly and easily. The cost of the equipment, its installation, and the training for those who would use it is about $6.5 million. There are many places the company can spend that amount of money with an assured and satisfactory return on the investment. The research director's job, in this situation, is to compile evidence and make a convincing appeal to top corporate management to allocate the money for the equipment. He must also project the image of self-confidence that he can properly allocate the equipment to the most qualified personnel who will produce the expected results. Compiling the convincing evidence calls for strong management control, whereas making a convincing appeal requires the persuasion power of a leader. This scenario offers a view of facilitating and control management that requires little day-to-day leadership. It also identifies a situation where leadership may be incorporated to encourage the best results. One can readily see that no amount of coaching or cash incentives will expeditiously motivate scientists to discover a new effective vaccine. This is not the mode of discovery. The role of the one in charge is to encourage, influence, and persuade the most capable people to put forth their best effort. Strong management is required early in this project to prepare the budget request and develop the evidence presented to the decision makers. Recalling that there is nothing more convincing than indisputable facts, the presentation to inspire top management to pursue the opportunity should be focused in this direction. Success depends upon influencing the decision makers to favor their project over those of other managers who are also seeking the same dollars. Since the decision to allocate the money must be made without a guarantee of positive results, a significant amount of confidence building is needed to provide support for the proposal. Leadership skills, rather than managerial skills, are required to create the vision of success in the minds of decision makers. However, when millions of dollars are involved, the integrity of the numbers used to justify the expenditure must also be without question. It is not unusual for upper management to preferentially provide resources to a group for no reason other than they feel good doing it. The research director's influence (leadership) upon the decision makers could be the deciding factor. When a research person is required to be motivational and feels inadequate to provide what is needed, the help of professionals may be enlisted

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to develop presentation materials and prepare other aspects of the project. This would represent reasonable management judgment. In that leadership is grounded in trust, respect, and confidence, the research director must have these credentials already established with upper management to expect them to follow his recommendations. Unlike the efforts needed to secure the money for the new equipment, the manager's responsibility concerning the productivity of the group of scientists he or she manages has little to do with his or her ability to inspire. Persuasion alone can make little contribution in bringing a successful result to the research effort. This manager must be a skillful facilitator and controller of the working environment. He or she must know what is needed, how it is best used, and how to balance or allocate the resources available to the people who are the most capable. In addition, the manager must direct and motivate those in the laboratory to ensure that nothing gets in the way of progress. Motivation in this situation may be nothing more than providing resources and supporting the scientist's efforts. Complimenting good work habits can provide a substantial amount of motivational impact in these situations. The Unskilled Employee

In extreme contrast to the research group, people who are inexperienced or less-skilled workers are clearly dependent upon the manager's direction and guidance. Employees who have few personal resources look to their manager to be in control of the workplace. This is done with position power. Inexperienced workers will keep their attention focused on their manager as the champion and role model who can bring them success. They usually know their own experience is inadequate to bring a satisfactory result without help. As these people become more experienced and capable, the need to closely direct and control their activities will diminish. During this phase the challenge for the manager is to keep out all negatives influences that may distract the employees. The leadership role becomes more important with the need for greater production and an independent desire to excel. Many managers are capable and excellent leaders. By example, they set the standards for acceptable performance, behavior, attitudes, and in some situations even an acceptable dress code. If the manager's function is to allocate resources and expedite actions, there is little need for a high degree of inspirational persuasion. It should be recognized, however, that management without leadership places too much emphasis on controlling rather than encouraging employees. As we have pointed out, control can best be exercised when management actions are directed by those who are trusted, respected, and in whom the employees have confidence. The power of a manager combined with the influence of a leader provides highly effective management.

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In organizations where change is rapid and constant, management often focuses on the abilities of a leader as crucial to success. Making the best choices under stress and taking the most productive risks can be greatly influenced by the support of a courageous leader. The manager who is also recognized as a leader can expect results with little conflict. Respect, trust, and confidence are the essential attributes of managers who are also leaders. SUMMARY

The question is not whether one should strive to become an effective manager or a capable leader, since both are essential attributes of a successful executive. There are few qualities more difficult to acquire than those that require the person to be inspirational, persuasive, or convincing. On the other hand, the impact of a manager who is capable in using his or her power is far more important to the sustained success of an organization than that of a charismatic leader. Winston Churchill was recognized as one of the most charismatic men of his time. Yet the success of the Allied command in winning World War II was credited more to the organizational skills of General Eisenhower and his staff than to any act of leadership. When managers know how to effectively use their power and can also incorporate the qualities of a leader into their management style it makes the job of managing easier and reduces the potential for conflict. It should be understood that the first obligation is to become a competent manager who properly uses his or her power. The difficult decision for many is determining when and how to include leadership into their management style without diminishing their authority. Managers who induce cooperation from subordinates by using raw position power cannot expect a consistent or sustained effort. On the other hand, if a cooperative and supportive relationship is encouraged by building trust, respect, and confidence, then leadership has been included. Employees will note that this is a manager who cares as much about how results are achieved as he or she does about what is being accomplished, and they will accept the manager's efforts as reasonable and inspirational. Winston Churchill was one of the best at presenting insightful and inspirational messages. He is credited with saying, "All the great things are simple, and many can be expressed in a single word: freedom; justice; honor; duty; mercy; hope." In the context of a relationship between managers and subordinates, I would add trust, respect, and loyalty to the list.

FIFTEEN Manage with Power and Style Management style is difficult to define. Essentially it is the method or technique that a manager uses to communicate with subordinates. Referring to management style as the way managers conduct themselves in their daily interface with employees is a poor description of the process involved. How a manager manages is more accurately related to his or her demeanor, manner, and substance than it is to a process or method of creating a management position or stance most suitable to the situation at hand. Nevertheless, "style" is the word traditionally used and the circumstances of the management environment dictates the true meaning of the designation. Employees' perception of a manager's ability, attitude, sincerity, honesty, concern for their well-being, and underlying motivation make up the basis of their feelings and attitudes. The most basic objective for managers should be to validate the certainty that their people trust and respect them. This is the basis upon which leadership is developed. Unfortunately, not all managers believe that the opinions of subordinates are to be considered important. RECOGNIZED MANAGEMENT STYLES

We all know that the reply to a question or the response to a request is directly related to how one interprets the communication. Parents teach

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their children to use the magic words, "please," "may I," and "thank you," if they expect to prompt a favorable response. Communicating with employees is not that simple, but the objectives are the same. If managers expect others to respond favorably to what is asked of them, they must communicate in an understandable and mutually acceptable manner. In the context of this chapter, the way in which managers communicate with their subordinates sets their management style. It should be noted that it is not uncommon for those in management positions to communicate with peers and those who are their superiors distinctly unlike the way they speak with their employees. This many be understood when one considers that the messages are significantly different. When managers are offering instructions, giving orders, or generally providing direction and control to subordinates, their demeanor will be consistent with the message being communicated. When reporting to superiors or in discussions with peers one would be more inclined to try to create a very favorable impression. This does not indicate inconsistency; rather, it exemplifies how we naturally use the style of communication that best fits the situation. It also indicates that managers who are intuitive can develop an effective management style to suit the climate of the management situation. Most managers are unaware of whether they have adopted a specific style of managing or even need one. This is not to say they express themselves poorly; it only reflects that managers who are in tune with the working environment will naturally communicate with employees in a manner that is consistent with the circumstances and the results they expect to attain. Their normal way of managing is to get results, and the most effective managers have learned how this is accomplished. Why is it necessary to learn the different management styles and how to use them? This question is not easily answered. One logical reason is to introduce new managers to their options from the several recognized management types. Another reason is that experienced managers who have not yet learned how to intuitively influence subordinates could improve their relationships with these people by engaging a more effective way of directing and controlling their employees and the work they perform. When power is incorporated into one's method of managing, five of the six positions of power and all of the power boosters may be blended into the effort. The one not applicable to a management style is policy power. The basic management-style options and the positions of power they embrace are noted in the following list. The primary power position is listed first and the support power source is listed second: Style Management by authority Management by example Management by instruction

Power Position and Provider Provider and Position Persuasion and Provider

Manage with Power and Style

Management by participation Management by consultation Management by assumption

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Most managers who are conscientious of effective communication will alternate between two power positions. At times persuasion is combined with each of the primary positions of power. Those in authority face a variety of management situations during the workweek. Each situation may be best managed by a specific approach to the task. Those who communicate factually, fully, and frequently will be more able to force the reaction of employees to the way they manage, and by perfecting the most appropriate management style be able to perform the duties of their job with less conflict. Selecting the Proper Style Example

When a cable breaks releasing a two-ton beam, one does not want a participation manager to call to attention those in the path of its fall, explain the situation, and then ask for their opinion of the options. Neither would you want an instructive manager to say, "OK, group, today I will explain the fine points of evading a falling beam." The manager who wants to provide an example and says, "Watch me and I'll show you how to jump aside," isn't much help either. This is clearly a place for the voice of authority to forcefully shout, "Jump!" while participating in the needed visual example. Everyone Can Develop a Management Style

Those who are responsible for managing people should make a sincere effort to develop a basic management style with which they feel comfortable. The manager who cannot intuitively adjust to employee attitudes and different situational requirements should adopt and consistently use one effective method that identifies how they will manage. It may be one of the basic styles of management or a combination of several. It is easier on the manager and on subordinates if there is a high degree of consistency in the manager's behavior. Those who are predictable and reasonable in their actions will be able to create a positive attitude among employees. Subordinates will know what to expect from the boss and will not need to interpret moods to predict expectations. Supervisors are not the only ones who dislike surprises; neither do employees. It should be understood that those who intend to manage people will find it is necessary to use but not abuse power when speaking with the voice of authority. Using an appropriate approach to the management task will set in motion the spirit of cooperation rather than one of confrontation. The inclu-

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sion of power with one's manner of managing should be stable and consistent. If the supervisor is trying to be persuasive, he or she cannot be an antagonist at the same time. The objective is to get employees to participate and predictably react to a manager's directions. To elicit cooperation and participation requires the use of persuasion from a superior. When authority is vested in a management position, most employees will recognize it is there for a good reason. That realization does not mean employees enjoy playing a subservient role. The key difference between managing with power and managing with power and style is that the style (the mode of managing) encourages the employee to instinctively (or at least reactivity) work more productively. In reality, we know that not all employees care to improve their productivity, and not everyone is capable of sustained self-improvement. Becoming a more effective manager assumes that the employees who are competent to perform at a higher level of productivity will be encouraged to do so because they recognize it is to their benefit. It is realistic to expect that a positive response to encouragement from a manager may not be applicable to everyone in the workforce. Style in managing people is also related to the manager's five power enhancers: communication, facilitation, motivation, evaluation, and support. Providing inspirational leadership based on trust and respect should also be incorporated in one's style of managing. The premise is that the manager who uses his or her power position to maintain a stable working environment will communicate factually, fully, and frequently, provide resources, stimulate motivation, and support employees when needed. Combined with leadership to make the use of power more palatable, the manager will have included all of the necessary ingredients of a productive management style. Those who aspire to management positions usually enjoy the use of power. They like to make independent decisions, give orders, control situations, give approval or disapproval for the efforts of subordinates, and interface with higher-level executives in the company. Managers may also be attracted to job perks such as titles, higher salary, bonuses, stock options, bigger offices, and many other incentives that go with promotions. Managing with both power and style will not only favorably affect the attitudes of subordinates, but also those of upper management. Which Style Is Best?

To manage effectively requires that the one in charge evaluate the circumstances under which giving directions and providing control are to be exercised. Consideration should be given to how employees are reacting to the management already in place. The outcome the manager is trying to encourage dictates how he or she provides instructions and initiates control.

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Under some circumstances the method used may change several times during the process of an ongoing project. Those who always use the same approach to managing, no matter what the circumstances, may not be the most effective, but they are at least predictable and their employees usually know what to expect. It is doubtful, however, that using the same management style for every situation will produce the best result. For this reason, managers should be familiar with the alternatives and how well they may be used to fit the circumstances. USING THE SIX BASIC MANAGEMENT STYLES

The six styles of management introduced earlier in this chapter are coupled to the power used to make the style more effective. For many managers it is the bringing together of more than one source that opens the door to optimum management effectiveness. Management by Authority

We tend to think of power and authority as being synonymous. In the context of a management style this is usually the case. However, employees do not often make the distinction between the authority vested in the position and the force that comes from the person in it. Managers should not lose sight of this important difference if they wish to lead without conflict. Providers should know it is appropriate for them to use the authority provided by their position, but they should avoid trying to enforce the mandates of their responsibility as direct challenges to subordinates or those who use their resource. Managers who adopt the management by authority style must first establish that they speak with the voice of one who holds the dominant position. Use of the word authority, as the operative word in a management style, is intended to indicate that the manager will use his or her power from a position of superiority. These managers will be sure that all of their employees know and accept that they are in control. To make this effective they will communicate with confidence and deliver their instructions with enthusiasm, encouragement, optimism, support, and any other nuances intended to produce the response anticipated. As one would surmise, position power is the primary source of strength. Managers who exercise pure position power will tell you what they want done and how to do it. The negative implication is that the employee may not be personally capable of taking independent or appropriate action. There is very little enabling present in this overbearing use of one's position and the force it represents. For this reason the manager must skillfiilly include the use of power boosters and other power sources (such as persuasion) to develop an effective style of managing that is independent of position power.

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It is appropriate under specific circumstances for the voice of authority to dominate the situation. Consider the position of a ship's captain facing stormy weather. This person must be the unquestioned voice of authority. It is likely that those under the captain's command will respond to orders with alacrity and understand his or her need to have undisputed control. In the traditional corporate environment there are few situations as clearcut as those that confront a ship's captain. The use of position power is a choice more than a necessity. In a corporation, management actions are planned and executed within the constraints of authorizations and clearly defined boundaries of control. The use of position power can be appropriate in this hierarchy to ensure progress. However, employees must understand the reason their managers choose to use the power of their position if enthusiastic participation is expected. The style of management used by the military is consistent position power. As we have previously noted, when one has the stripes, bars, or stars, he or she is in the position to order people to do what he or she asks and receive a "Yes sir" or "yes ma'm" in reply. Corporals will recognize that captains have authority over them and respond accordingly. It is possible that a corporal will have genuine respect for the person holding higher rank and may be motivated to follow orders more by trust and respect rather than because of the power vested in the position. Troops who have had good experiences with their officers will be motivated by regard for their officer's ability as a successful leader, and may perform very courageously under that officer's command. The use of power in the military is understood as necessary, and when used for the good of all concerned, it is motivation. When an officer or a manager has the trust and respect of his or her subordinates, it is there because it has been earned. The application of the authoritative management style in business is appropriate for the upper echelon in a company. It is usually recognized that those who occupy these jobs have them because they worked hard to earn their positions and have demonstrated that they belong there. However, whether the job was earned or inherited, it is not considered necessary for the president to explain to the staff why he or she wants something done. When the staff respects the judgment coming from that person, it is sufficient motivation to provide a positive reaction. It should be noted that most successful executives make the effort to earn the trust and maintain the respect of their employees and peers. Authority and Motivation

Incorporating motivation into the management by authority style is done by one of two methods. The first and most effective one is for the manager to build respect for his or her ability and management effectiveness. If one has accomplished this, the use of authority is tolerated with little animosity. This is the strongest type of leadership and a most effective management

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style in situations where direct and frequent involvement with subordinates is normal. The second method of encouraging employees to work enthusiastically under the authoritative management style is by instilling in them an understanding that the use of authority is necessary to get the job done. Motivation can be incorporated into these situations when managers keep employees informed of what may happen or what is likely to be asked of them. This is the communication booster of a competent manager. Enthusiasm for the task is established by apprising employees of what to expect and gaining their understanding for the necessity of authoritative management. When employees understand what to expect from the manager and why it is necessary, they can be motivated to perform at their peak capability even under the force of an authoritative manager. When the intercom of an airplane is switched on and a forceful voice says, "This is the captain speaking," he or she has everyone's attention with the voice of authority. The message is that severe weather is ahead and everyone should tightly buckle their seat belts. The captain concludes by informing passengers that the crew will rapidly pass through the cabin to check, and then return to their seats until further notice. The crew understands the situation, they know the captain is capable and that his or her request is reasonable and appropriate under the circumstances. The captain's order will be followed without question or rancor to the authority used. True authority may not be questioned. It also may not be accepted, even though not openly opposed. It does require understanding of the manager's reasons to earn employee support and manage without conflict. In many business situations the management by authority style, when used with persuasion and power enhancers, is very effective. In less-competitive environments, even within a corporation, the participation style of management is highly popular and well accepted. Management by example uses the authority of a provider as its primary power source. Management by Example

This frequently used management style often combines both provider and persuasion power. The manager is in the position of authority and provides the example he or she wants and a method or technique for everyone in the group to follow. The manager may say, "Everyone watch how I do this so you can do the same." If it is a method or skill, a demonstration of how it is to be executed will follow. Doctors who teach dentistry or other surgical techniques will often provide a visual example of how they perform a technique. They are recognized as essential providers when they are truly the best at what they do and when the example is given in a way to enable or facilitate progress. If the manager is less capable than some of those he or she is trying to instruct, the example will be ineffective. Sales managers frequently provide new em-

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ployees with direct demonstrations of how to plan calls, how to present the product or overcome objections, and how to close the sale. When people in charge like to show others how to perform a task they encounter two risks. The first is that they may not provide as good an example as one of the subordinates. The second risk is that they may not be making the best use of their time and energy. Leaders who are not highly productive cannot expect their employees to be so either. Managers who feel that they must consistently provide an example of how the work should be done end up doing a lot of the work. The infantry sergeant who leads his platoon into every battle does not last long. The one who directs squad A to the right, squad B to the left, sends C squad up the middle, and stays back in reserve to direct the need for reinforcements from squad D is managing all of the action. There are circumstances where the "watch me and I'll show you how" type of management is both appropriate and effective. Where physical skills and techniques are involved, the example is needed to give visual instruction. A golf professional giving a lesson in putting would be an example. There are also times when the sales manager will need to show the sales trainee now to perform a specific sales activity, such as making an organized presentation. In circumstances where the manager is required to give an example, adding motivation to the process is necessary to achieve the best result. To accomplish this the manager should demonstrate a job function, not a personal accomplishment. The presentation of the skill needs to be instructional and impersonal, rather than confrontational. If the motive of the manager is understood as objectively giving needed direction, it will provide an acceptable reason for an earnest effort by the employee. Managers who demonstrate their skill with the challenge that no one can match their ability have provided a built-in reason for failure. Who will dare to show up the boss who implies that no one can better the skill or ability he or she demonstrates? When managers adopt the management by example style there must be no hint of a challenge. The manager should offer words of encouragement with the attitude of a helpful instructor or coach. The examples, illustrations, or demonstrations presented by the manager are a way for employees to learn and improve, rather than implying that they do not know how to do their job. The manager should provide the needed example, then get out of the way as soon as possible. The professional may show the beginner how to effectively putt a golf ball, but the learning begins only after the beginner strikes the ball. Management by Instruction

This manager will give instructions, as a teacher, with the verbal details of how to accomplish the job. The instruction is not offered with the force of authoritative power. It is the statement of reason presented with persua-

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sion. This combination offers an acceptable motive to learn. Managers who are respected can expect acceptance of their instructions as a sharing of knowledge presented by an experienced leader. Those who instruct expect their subordinates to perform in the same way they are taught. These managers try to provide the benefit of their experience to those who have no experience. The manager's philosophy is that there is no need to reinvent the wheel every time a vehicle is built, yet everyone must know where the wheels belong. Instructional managers will provide the wheels and teach their subordinates how to use them. The challenge for these managers is to provide obvious and acceptable reasons to follow their instructions. Providing new methods and new techniques is acceptable and can be stimulating. The key is to know which employees need the instructions and then to teach, train, coach, advise, and direct with great objectivity. When using the instructional management style the manager often deals with a staff that is already trained. Motivating these people is not found in how the work is to be done, but rather in sharing why the task is being performed and what is to be accomplished. The employees may be accountants, members of a legal staff, engineers, scientists in research, or other positions in which technically trained, capable people are found. For these groups instructions are centered on facilitating the application of employees' skills, rather than developing them. A CPA asked to evaluate a company's balance sheet will not need instructions on how to do the task. However, in order to produce a satisfactory result the CPA will be interested to know why the evaluation is being made and what purpose it will serve. The instructional management style is not used by a manager who will demonstrate how his or her orders are to be carried out. This fact makes it even more important that directions are understood. To accomplish this requires the instructor to be fully capable of putting to use the communication skills presented in Chapter 8. This management style is founded on competent communication. Those who intend to use the management by instruction style must first establish that they have the authority and the knowledge to instruct. The fact that most college professors hold a doctorate degree does not mean they have the knowledge to teach a specific subject, but it does give them the authority to lead the class. The position power of the instructor-manager provides the authority. Once accepted, they can use persuasion as their primary source of power, coupled with the facilitation of a provider. There is no question that this manager's motive is to provide the information necessary for employees to become more productive people with greater value to the company and to themselves. The management by instruction style requires that one have patience, excellent verbal skills, and willing employees who will listen, follow directions, and carry them out.

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Management by Participation

Trainers frequently refer to the participation management style as the most effective way to bring democracy into the business hierarchy. The participation aspect suits managers who enjoy consulting with their staff as a functioning group. These are highly democratic leaders who will bring together all who are involved with a situation to discuss the various options before a decision is made. Here is an example of how it works. The vice president of production called a meeting that included the shop foreman, the materials-management supervisor, a representative from engineering, the safety manager, and the union representative. This group was told that production had slowed down over the past ninety days and had reached a level that was unacceptable. The group was challenged to participate in finding a solution. The vice president began by asking the safety manager if there had been an increase in accidents just prior to the slowdown. When asked a specific question, the safety manager became a part of the decision-making process. Employees react favorably to this democratic attitude in an executive. The safety manager reported that the statistics regarding accidents were the same both before and during the slowdown. He did not feel that being overly cautious was a significant factor. His contribution to the management process was well received by all. The vice president asked questions of each one he had invited to the meeting. In the end, both the problem and an acceptable solution were agreed upon. Since everyone was involved in the decision-making process, they were mutually committed to the successful resolution. When employees have this attitude, managing can be a pleasant task. In this example the participation management style was very readily accepted and found to be effective. It was democratic, since it involved subordinates in the decision-making process. However, there are pitfalls in this management style that can lead to lower productivity. When there is a conflict between employees or employee groups the participation manager should not place the opposing parties in the position to defend themselves. That will only exacerbate the situation. The manager must ask the people who are invited to discuss what is best for the group. The manager's questions should stimulate discussion of the options that are available to resolve the conflict. Never ask, "Jack, why do you think that you are right and Bill is wrong?" This type of comment stimulates dissension. A different problem resulting from the use of a participation management style is revealed in the following account, a true experience involving a manager who used a participation style that was not appropriate or effective for the situation. Two managers of different business units in the same operating division needed a decision concerning which business unit should take the lead re-

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sponsibility for a new business opportunity. At a joint meeting, each manager, assisted by their immediate staffs, offered a brief marketing plan to the divisional vice president of marketing. When the presentations were over, everyone turned to the vice president for his questions, comments, and decision. The vice president looked at the group and said, "You two managers are closer to this thing than I am. When you have come to a compromise agreement reflecting what is best for this division, bring me your conclusions and I'll go along with whatever you recommend." Every person in the room instantly lost the motivation (a reason) to produce the best answer. The risks involved in making the decision were passed to the two managers, and both teams were directed to produce a "no-win" solution. A very interesting conclusion to this situation occurred when the rival managers met to negotiate the suggested compromise. After an hour of fruitless discussion, they both agreed that a compromise would produce an ineffective program. They also agreed that either of the two marketing groups could successfully proceed with the opportunity. Since they both had the people, facilities, and budget to take on the project, there was no obvious choice. A great management decision was made when they decided to flip a penny and make a call. Mr. Lincoln decided the issue. Both managers were satisfied with the choice, since Mr. Lincoln had a fine track record for making good decisions. There are of course times when a compromise is needed. If both business units were to participate in the marketing action and were required to work together, then a compromise would have been appropriate. Nevertheless, when the best answer is needed, a compromise is seldom acceptable. Authoritative leadership and decisive actions may be the only appropriate management style in this situation. Participation in the evaluation of the alternative opportunities in this case was not the correct process. The error made by this participation-style manager was that he abdicated his authority. There was no doubt that each of the managers expected the vice president to assume the risk of making the decision. Instead, they left it to Lincoln. It takes a very open and objective person to successfully produce the best decision by participation management. This leader must be sure that all of those present are heard and that all "input" is given consideration. Care must be taken not to defer the decision to the consensus of the group, but still to gain general agreement in what should be done. The danger to those who use the participative style is that they give up their vested authority to become a committee chairperson. There is also the possibility that those who eagerly take part in the discussion become less enthusiastic when it appears they are obligated to share in the risks or to support a decision they do not fully agree with. The prospect of risk sharing can lead to a lack of objectivity, creativity, and innovation. The most destructive pitfall of the participation management style is that reaching the best decision is not always encouraged. Managers who try to

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be democratic too often stress unanimity that inhibits individuality. If the focus is to gain consensus rather than to explore ideas, the best solution may be compromised to gain universal agreement. Although there is less conflict in compromise, the conclusion is seldom the best. Managers must clearly take responsibility for all decisions. On the other hand, they must be sure that those who make significant contributions will receive a fair share of the credit. At the risk of appearing not to respond to all of the input, managers must sift through the options presented and adopt only the best. This is a hazard that the participation manager must address and resolve. Regardless of preference, he or she must be able to recognize when that critical time to put aside deliberations has arrived, sum up the contributions made, and reach a decision. There is another type of participation management that is quite different from what we have just reviewed. It involves managers who truly strive to assist everyone who works for them. They feel their primary job of managing is to be a provider. These are the facilitator managers. These people consistently expedite the progress of those who work for them, which provides very positive management. However, for this to be useful as a style of managing the manager must be perceived as one who foresees what is needed, understands when to take action as a provider, and follows up to be sure the resources are productively utilized. There must be an understanding that productive effort is expected from the receivers of this manager's attention in order to be worthy of his or her consideration. The use of participation power by the facilitator manager brings employees into a cooperative relationship with an obligation to produce. The manager must make it clear that helping the employee to function effectively is only half of the action. The other half is for the employee to put forth the effort to excel. The manager and the employees must participate together in a contract to cooperatively achieve results. Leadership abilities are essential for the manager who wishes to be a facilitator. This executive will seek opportunities for his or her employees and lead them with an inspirational challenge to participate in greater accomplishments. The Consultive Management Style Management by participation is often incorrectly referred to as the consultive management style. The difference between consultation and participation is that the consultive manager will ask for direct individual opinions and solicit input, but will not hold a roundtable discussion with those who are invited to provide their opinion. The consultive style of management may include several of the manager's subordinates who he or she asks to give information and opinions. These managers accept the idea that several points of view contribute to a better solution. They will collect all of the

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contributions one at a time from those deemed to have relevant input and then make the decisive judgment on their own. Although not widely heralded as a management style, many business executive will adopt this method of leadership. Few subordinates will become aware that their boss is engaged in the process of making a decision during their discussion. Since the consultations are one-on-one meetings, there is little or no outside conversation. This style requires the control of a positionpower executive supported by the influence of persuasion to elicit the best information from those consulted. The consultive management style is favored by strong managers who feel it is more important to maintain firm control of the decisions guiding their area of responsibility than it is to gain agreement from their employees. Since these managers will make the important decisions and not share the risk with employees, they implement their plans by edict. To gain cooperation from employees in the implementation process, the use of persuasion and the five power boosters is imperative. At this point the consultive manager needs to develop participation by employees to succeed. Full, factual, and frequent communications presented with the persuasion of a confident leader will bring success to this process. Management by Assumption

Managing by assumption is not a recommended style, but since it is a method used by many, it must be discussed. Managers in this group are often called the "good old boys." The application of presumed power may seem out of place as a part of any management style. Nevertheless, those who manage by assumption rely on presumed power combined with a significant amount of selective persuasion. They can be recognized by their broken promises, unfulfilled plans, general lack of support from other departments, and a shortage of needed resources for the people who are under their responsibility. Most of them are found in branch offices. Those who manage by assumption see themselves as leaders. They assume they can do what they want, and presume they have the authority to do it. An example is promising delivery of a product without the authority to make the shipment. The managers who assume control frequently overspend their budgets and may also be chronic policy breakers. They have the temerity to believe that they can convince another manager that their borrowed authority is justified for the action taken. The alternative for managers who choose not to use presumed power is to win over those who have true authority to use it on their behalf. They are very often successful in this appeal, as persuasion power is one of the most difficult kinds for anyone to resist. In cases where they are not sufficiently credible to get approval for a request, this type of manager may go ahead

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and do as they wish without it. When found out, they may again try to convince their superiors that the action taken helped the company and therefore is justified. Those who assume believe they can do anything they wish and not be discovered or held accountable. Management by assumption is a risky proposition. It is not often found in the home-office environment but can flourish in field offices where discipline is imprecise and strong authority is absent. Too often it is found as the dominant style for first-level sales managers. In many situations middle managers with considerable seniority and many old friends in influential positions use this style. They use presumed power to intimidate fellow workers by implying that they influence management decisions. In fact, the manager using presumed power will seldom ask for help, even when it is needed and reasonable. By not asking there is no risk of refusal. They take for granted that if it becomes necessary they will be able get permission. Managers who assume power try to look like the champion of "their people" by a long-suffering struggle with the home office. They frequently refer to how they "go to bat" and "stick out their necks" for the benefit of their team. Many of the unselfish actions they refer to are fiction. These managers actually do little to facilitate or motivate their employees, other than to solicit empathy for their long struggle. "Good old boy" managers can be found at any level in the business hierarchy. Those in high positions usually got there before the responsibility of the job equaled the title, and they found ways to accommodate their incompetence as the job grew. The "good old boy" manager most vivid in my memory was exemplified by a region sales manager located in San Francisco. His nearest superior was located in Kansas City, and their relationship went back to the days they both played football for Montana State College. This man earned his position because he was hired by the national sales manager, who was his best friend. He was big, physically intimidating, presumed to have the complete confidence of the home-office executives, and used his position power to protect himself rather than to manage his region. Those who were not close to him were convinced that he fought a never-ending battle with the corporate establishment for the good of his people. He was their champion. He was a staunch protector of the status quo, never taking a risk that could bring attention to him personally. He made many promises to the salespeople he was supposed to manage, but seldom fulfilled them. He did not manage by presumption, but rather did not manage at all. Since he was not a risk taker, he assumed he could have what was needed and acted accordingly. His demands were small, he was protected by his boss, and no one else paid any attention to him. This manager could not be depended upon to accomplish anything significant, and when his salespeople asked for his help and assistance or a decision he deferred to them and said "I'll stand behind you no matter how it comes out." He was their phantom champion.

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Managers who depend upon assumption as a style of leadership must use presumed power and closely tie it to the power of persuasion. Those who are skillful persuaders can manage with this style for a long time if they are agile in avoiding higher authority and are reasonably intelligent. Management Behavior

For many in management positions the development and use of an effective management style is not always the result of a conscious decision. Most will act as they do because that is their basic nature. Management behavior is established as an extension of the manager's personality. Many people cannot change their normal behavioral patterns and to assume such a change would be false and ineffective. Even so, the conscious selection and adoption of a management style is often necessary, especially for those who are first-time managers of other people. Most who are new to the job of managing have a difficult time developing the proper behavior and attitude to lead others. These people need to realize that the purpose of management is to encourage and facilitate productivity rather than to establish a personal power base. The key words for successfully managing people are "encourage" and "facilitate." Sometimes the focus of a management style is not directed to employees but rather to customers. In general, this is the relationship companies develop with those who buy or use their products and services. Employees must develop a way to deal with customers that will support the company's objectives. Companies who sell services will find their options with customers may be the same as with their employees. Here is an example: During the presentation of a seminar for a group of veterinarians, the speaker touched on the subject of management style. One vet asked, "Why do I need to worry about management style when there is only my wife and I in the practice?" The presenter replied, "Doctor, I would ask you to think of your practice as including all of your clients as well as your wife and you. Your clients are your business, and how you manage them determines the success and future of your practice." The lesson is that management style should be directed to those people involved with the productivity of the business. This usually concerns company employees, but it may include others as well. If there is a direct relationship with the consumer, as is the situation with personal services, the style one uses to sustain the relationship is critical to success. The successful salesperson becomes a master of knowing just the right approach or style to use with each customer or prospect. Managers who think of their employees as customers (the center of productivity) will exercise the most effective style possible. For most mature and established managers a basic change in behavior will not be possible or necessary. Experienced managers have made the changes needed during the process of developing their ability to manage.

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The conscious motivation of key employees is an element of the mature manager's customary way of managing. To use a management style effectively the focus must be on motivating workers to respond as expected. By consulting the checklist which follows, one can see the motivational stimuli that are effective with each. Management Style and Motivation

Managers may use the "how to add motivation" checklist to improve their effectiveness. The objective is to stimulate subordinates to favorably respond to the actions of the manager. Boosting the effectiveness of one's management style is dependent upon frank objectivity in evaluating the effects of one's current management behavior. A supervisor must first identify his or her predominant way of managing, then match the applicable element to improve that style: Management Style Management by Authority

Management by Example Management by Instruction Management by Participation

Management by Consultation Management by Assumption

To Add Motivation Gain respect, make motives known, provide reasons. Apply policies fairly and make no exceptions. Use position power for mutual good; inform the employee when, how, and why this power is to be used. Use the five power boosters whenever possible. Be instructional, be impersonal, issue no challenges, check your skills, provide coaching, give encouragement. Know the skills of your staff. Give only needed instruction, be objective, be persuasive. Listen to all participants, but include only those essential to the subject. Take responsibility for decisions, give credit, seek the best decision, keep the leadership. Use persuasion to gain support for conclusions. Success for this management style is dependent upon controlling the process and getting all of the facts. Use persuasion to encourage participation. This management style should never be used except in conjunction with one of the other management styles. Rarely is this style productive.

SUMMARY

For all situations it is vital that employees have a clear perception of the reasons behind a manager's endeavors. Managers must be certain that their activities are clearly recognized as in the best interest of the company or of

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the employees who are affected. If one wishes to be a manager who can stimulate others to perform effectively, it is necessary to be known as a manager who is also an enabler. It is an incontrovertible necessity that power must be appropriately placed in the hands of managers who are measured by their productivity. The business hierarchy is a structure that assigns power at many levels. The authority to use it must be supported with acceptable reasons that are easily understood by those upon whom the success of the enterprise depends. Employees will naturally respond to managers who seek their understanding. Managing with calculated power and the most appropriate style encourages the best possible results.

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SIXTEEN Manage Problems, Improve Productivity As frequently expressed throughout this book, the hierarchy of the business organization provides managers with the power to exercise control over employees. It is from this position that they make the choice to be firemen or influential leaders. Managers who spend most of their time putting out fires will miss the opportunity to provide those who are capable with the stimulus to excel at their highest level. It takes only a modicum of logic to conclude that the time a manager spends solving problems could be used much more productively. This is not to say that problems should be ignored; rather, they should be prevented. There is no profit in solving problems that can be prevented. Expanding the scope of opportunities has much more potential. It is appropriate for managers to deal with obvious disputes that must be resolved to eliminate the negatives in the workplace. It is at least equally important to learn how to prevent conflicts from becoming problems that require the attention of managers to resolve them. Problem-Solving Paradigm

1. Investigate—Clearly and accurately identify what is causing the problem to occur and how it is sustained. 2. Evaluate—What are the effects of the problem on the organization or the working situation?

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3. Alleviate—Identify and put into action a plan that will end the negative effects of the problem. 4. Initiate—Replace the negative difficulty with a positive action initiated to improve productivity. 5. Consolidate—Unify and strengthen the new positive position initiated in Step Four. Accurately identify the problem and the effect it is having on the working environment. Neutralize the problem and initiate a positive activity in its place. Be watchful that it does not resurface. Provide support for the corrective initiative. The relationship between problems and productivity is demonstrated by this example. The sales manager of a privately owned Mid-Atlantic state's distributorship envisioned his job as primarily using his expertise in problem solving. His practice was to spend one week every month traveling with sales representatives in order to observe their sales presentations and customerrelations skills. Salespeople were instructed to advise the sales manager of any problems they encountered between his visits. He would discuss and then demonstrate how to overcome them. The opening discussion was followed by customer calls and a critique by the sales manager of the persons' abilities. Suggestions followed that were expected to improve performance. Obviously, management by example was the primary style of this sales manager. It is difficult to criticize his actions, as they are directed to improving the abilities of the salesforce. Contrary to what one would expect, the more time the sales manager spent improving the skills of his salesforce, the less competitive they became. He was at a loss to explain to the vice president why this was taking place. The vice president initiated an in-depth investigation to find out what was occurring. The action revealed that the salespeople prepared for the sales manager's visits by fabricating problems they knew the manager would enjoy solving. It was obvious that this manager wanted to demonstrate his ability, and the salespeople who were well aware of this fact generously provided opportunities for him to perform. The tasks of prospecting for new business, evaluating their competitive position, identifying their customer's potential to buy more of their products, and in general taking care of their business were secondary to the sales manager's strong penchant for demonstrating his ability at product presentation and maintaining customer relations. Having identified the true problem with a thorough first-hand investigation, the vice president then made an evaluation of the effect it was having on their competitive position. He realized that the sales focus needed to be redirected to make the first priority the positive activity of producing greater sales rather than the negative examination of faulty sales skills. A perfect presentation that ignored their competitive relationship with customers was

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not productive. The problem was alleviated by directing the focus of sales activity on the positive effects of becoming more competitive. Having neutralized the negative, a new program was instigated that took into consideration not only the activities of the company's sales representatives, but also those of their major competitors. The sales manager was made responsible for providing the follow-up support that would consolidate the benefits of their actions to become more competitive. His direct activity in the process allowed him to show his ability as well as to provide the needed management support for the new program. The real problem was the loss of sales. The company was not spending its time to improve the actual problem, which was to be more competitive. USING POWER IN THE PROBLEM-SOLVING PROCESS

Problems fall into two major categories: those that originate as internal problems and those that are external to the organization. The ability to use position power or policy power in most situations stops at the boundaries of one's organization. The other four positions of power have no boundaries and can be used in almost any environment. Power Resolves Internal Problems

Internal problems are much more susceptible to the use of power in their settlement than are those that are external. When nothing else works, strong position power can always be brought to bear for resolution of the most difficult internal problems. The fact that the power of the hierarchy can come into the picture is one of paramount importance. The problem-solving paradigm noted earlier applies very favorably to internal difficulties. The Power of Investigation

The investigation process for internal conflict is simplified because all of the facts should be available to the investigator. This is not usually the case with those that are external. In most situations position power is the dominant force used to investigate an internal disturbance (get the facts). Too much time is involved with using persuasion power or any of the other power sources to make them useful in the initial investigation. The one in control needs the facts as rapidly as possible. Normally the first questions asked are, "what happened?" and "who's responsible?" Since the types of difficulties that managers face are so diverse, it is impossible to answer these questions with any objectivity. If they are considered as rhetorical, then what is being asked is, "What is the problem and how do we get to the source?" Answers to these questions will lead to a clear and accurate identification of the problem and a source that can pro-

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vide first-hand information on why it exists and how it got to the point of becoming a management priority to resolve. The investigation may be completed by the controlling manager or it may only be instigated by this person. Whatever the chronology of events, there will usually be very few people involved in the investigation. Once the facts are accumulated and the evaluation begins, more people will become involved. Evalua ting Problems

Most managers want to jump from discovery of the problem directly to providing a plan for its resolution. This is a significant mistake made by many. The important facts are not necessarily those related to what happened, but rather what it means to the organization. The evaluation will involve every important facet of the conflict and how it confronts the internal workplace and the workers. Evaluation Example

The housewife discovers that an outside hose faucet is dripping and reports this to her husband. He evaluates the problem as being a leaky faucet and immediately concludes that the resolution to the problem is to turn it off. In that he cannot stop the leak by hand turning the handle, he gets a big pipe wrench to force the faucet closed. In the attempt he bends the copper pipe leading to the faucet and breaks its handle, which causes the drip to become a major leak. A plumber is called who charges a minimum of $40 for house calls. He fixes the problem with a new $12 faucet and advises the housewife that all that was needed to stop the drip was a new gasket in the faucet at a cost of less than twenty-five cents. Had the husband made a thorough evaluation of why the problem occurred he could have easily alleviated the problem himself and saved $41.75. It would also be prudent to instigate a program of placing new gaskets in all of the outside faucets and consolidate the benefit by keeping gaskets on hand in the event they are needed in the future. This may be a simplistic example, but it clearly illustrates the benefit of a thorough evaluation of the problem before a solution is undertaken. True Example of Evaluating a Problem

A church with just over 100 members is the only beneficiary of a halfmillion-dollar estate and the income it generates. The leader of this congregation resolutely forms a governing body with eight of his close associates who will support anything he proposes. A major change in financial procedures is adopted that makes the leader responsible to no one in the church for the way he uses the money. He proceeds to spend thousands of dollars

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for his personal benefit, but is not held accountable. Some members want the minister removed to stop the problem. To alleviate the negative effects of the situation should be the first priority, not punishment of the person responsible. The critical questions relate to how the problem is affecting the financial condition of the church and to put an end to the negative impact. Once the problem is ameliorated, the question of what to do to ensure that it will not reappear goes directly to those who perpetrated the fraud. Instigate Positive Changes

In the example of the misuse of funds, the problem included the close associates of the minister who allowed the fraud to take place and continue unabated. The instigation of positive changes would include dealing with everyone involved and establishing controls that would guarantee the problem would not recur. Consolidate the Benefit

In this situation, consolidation of the benefits would be to periodically check to be sure the controls were not being ignored. Establishing controls that will ensure a problem is contained is excellent as long as the controls are enforced. Consolidation is accomplished by unifying the control effort and strengthening the resolve to be sure it takes place. Using Power to Resolve External Problems

To illustrate the restrictions on the use of power to resolve external problems I would like to offer a personal experience. This event took place in New York City at the headquarters of a large consumer-products company who held a dominant position in specialized consumer products such as shoes and swimwear. This firm also owned a small chemical company that was of little interest to the corporation since it was not only very small compared to the rest of the company, but was also completely out of the core business in which they wished to concentrate their future development. The company I represented wanted to buy the chemical business and was willing to make a reasonable offer to acquire it. After several meetings with a vice president of the company I presented a letter of intent prepared by our attorneys to purchase along the lines of our very amicable negotiations. The vice president found nothing unexpected in the proposal and said he would turn it over to their attorneys with a recommendation to write a contract incorporating the elements of the letter of intent. Since their company was selling corporate assets they insisted on writing the final contract. I had no objection. We had four meetings following the initial contract proposal to review what their attorneys thought should be included. Everything was finally

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negotiated until the finished contract was presented at the fourth meeting. It included a small paragraph in the neutral text giving patent rights to the selling company for any fiiture products developed from its technology that would have consumer rather than industrial use. Since my company would be doing all of the research, this proposal was unacceptable. Their lawyer would not budge in reconsidering the language of that paragraph. Failing to use his position power to resolve the situation along the lines of our negotiated agreement, the vice president and I decided to have a grand lunch at Club 21 and forget the whole matter. I never forgot the weakness of my position in the external environment where the only power I had was persuasion power. It was not enough in the face of a very contrary lawyer. The Available Power

As we have noted, one can use only the power of persuasion, the power of a provider, participation power, or presumed power to resolve external problems. There is one exception represented by conditions where a valued customer may hold a strategic position over a supplier. In these circumstances the customer has the final word in resolution to any conflict. At any time of their choosing they can refuse to buy. The unfair use of position power in competitive situations is not uncommon and companies in a position that require dealing with it must be prepared to either accept less than equity or resolve the problem with their power as a provider. Provider Power Can Be Significant

The recent problems experience by the state of California with the availability of electrical power sources shows the extremes of provider power. The sources enlisted to help solve their problem were often able to extract sizable profits in exchange for guarantees of available power over a period of several years. In more normal situations, consider this example: A medium-size producer of plastic containers with one very large customer representing nearly 50 percent of their production was shocked to face a competitive situation that could have bankrupted the company. The large customer advised the manufacturer that unless they were able to immediately reduce their price by 20 percent the business was being transferred to another manufacturer upon completion of their annual contract, which was only one month away. The company could not replace the loss of half of their business, nor could it stay in business without that volume. Both the supplier and the large customer had been doing business for many years, with an annual contract for production that allowed the manufacturer to borrow money at their bank to purchase enough materials to make a continuous run of this primary customer's product months in advance of its needs. It also allowed the best

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possible cost position with the equipment they had and also facilitated their ability to ship orders for their best customer immediately upon receipt. The latter capability was appreciated by the customer, for it precluded the need to warehouse large amounts of containers in advance of requirements. To solve the problem, the manufacturer would need to buy a new highspeed piece of equipment to significantly reduce its cost of production and maintain a satisfactory profit even at 20 percent below the current selling price. It could not buy the equipment and get it into production without additional financing and six to nine months time to get it up and running. By negotiating a five-year contract with a competitive-pricing clause and continued delivery upon demand, the manufacturer was able to secure the needed financing and buy the new equipment. This resolution to the problem required operating at a break-even point for several months before costs could be reduced on everything they produced, at which time the lost profits would be made up on the 50 percent of their business that required no price reduction. The power of being a valued provider allowed this manufacturer the ability to solve a major problem. Leveraging Provider Power

Even in the face of a serious competitive situation, the power of a provider can often produce solutions to very significant problems. The elements that providers can often use to leverage the power of their position include pricing, contractual benefits, financing, warehousing, and provision of additional services or other resources. Extended credit terms can often overcome a pricing problem, if only temporarily, while other solutions are found. There is also the power of a long-term relationship and recognized superior provider service that can contribute power to the provider in negotiations. Participation Power Solves the Problem

Several years ago I was involved in purchasing a fairly small company in the Kansas City area. This was a new company that had one unique product that was well covered by patent protection. I wanted that product to fill a significant hole in a line of products the company I represented was selling. The small company had no need to sell, as it was profitable and in the process of developing significant revenue for its five partners, four of whom were equal stockholders, each with 15 percent of the stock, and the fifth, the patent holder, with 40 percent. The company was willing to become acquired, but the patent holder wanted a significant up-front payment for relinquishing his patent, even though it was owned by the company. By bringing together the four partners who held 60 percent of the company, I was able to use participation power to win over the fifth owner and consum-

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mate a good contract for all concerned without any up-front money for the patent rights. Enlisting the participation of an opposing faction to support your proposal can be difficult. Nevertheless, this possibility should not be overlooked as a power source. Presumed Power and Problems

It is very difficult to use presumed power to solve external problems. Yet one must realize that those outside of the corporate boundaries do not know with finality what power one represents in the corporation. When presumed power is used to solve a problem, it is usually needed to resolve an impasse that is not a bluff. When an impasse is reached in negotiations, or the need for additional pressure is evident, one can occasionally use presumed power to move forward to resolution of the problem. Presumed Power Can Be Productive

A++est-Coast producer of food products (that we will call Company C) marketed its brand directly to supermarkets. They became aware of a problem with a competitor who stocked a shelf by placing their products in front of Company C's in an effort to increase its shelf "facings" to the shoppers. Company C was guaranteed a specific number of shelf facings for their products because of the consumer-advertising commitment in the supermarket's shopping area. The district manager for Company C decided to take matters in his own hands and confronted the manager of the problem supermarket, advising him that he had twenty hours to correct the situation or he would pull all of Company C's products out of the store. He did not have the authority to do this, but the presumed power worked and the store manager corrected the situation overnight. The critical element in this situation was that the district manager for Company C was in the right and the store manager knew it. When one is supported by the truth, presumed power can be very effective. ELIMINATE NEGATIVES, MAXIMIZE POSITIVES

The emphasis here is not to stop when the effects of a problem are no longer felt, but to press on and establish the benefits that can be derived from implementing progressive elements in the void left by eliminating a problem. Too often managers think that the job is done when the problem has been resolved. To be sure, this is a necessary activity, but not to the exclusion of maximizing opportunities. In the illustration of the sales manager who would rather train salespeople by giving how-to examples than resolve competitive problems, the vice president identified the real problem to be the misdirected expectations of the sales manager. His priority was to eliminate the

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negatives, yet there was no follow-up to provide benefits from this accomplishment. The sales representatives were so well trained that they needed to create fictional problems to discuss with the sales manager, who centered his management upon providing examples of his skills. When employees approach the point where they are producing near the limit of their potential, they will require a decreasing amount of direct management. At this level of proficiency, the task for managers is to occasionally review the direction in which employees are moving and reserve the control action for emergencies and unexpected situations that may lead to problems. In our example the sales manager equated sales skills with productivity, which was inaccurate. Focusing on productivity, the sales manager needed to realize that as capable workers gain in confidence, their actions will become more independent and individual self-discipline will significantly replace the need to exercise close control over their day-to-day activities. This view parallels that of Peter Drucker, in that he has for years been a proponent of self-directed achievement. Self-Motivated Managers

There is a time in the development of managers when self-direction replaces a significant need for supervisory control. This takes place when one is near or at the apex of one's managerial development. Once managers have all of the skills and are progressively productive, they can be trusted to self-motivate as needed and thus perform at their highest level of achievement with little upper-management direction or control. When executives reach this level of commitment, they may then devote more time to other matters and to people who are in less-critical positions. In this way productivity expands throughout the entire unit. Managers who substantially depend upon their own initiative can and will prevent problems from reaching the point where higher authority is required to solve them. Less-direct management also opens the door to error, which if not handled properly can lead to problems. Subordinate managers should know that they are expected to deal with situations that can potentially lead to problems. The objective should be to become proficient problem preventers rather than problem solvers. Using Power to Prevent Problems

There are managers who believe that preventing problems takes place when they refuse to recognize that they exist. Others have the same solution to every problem that comes to their attention: "Get over it." Both of these techniques embrace the idea that problems will take care of themselves if they are ignored. There is no power expended in either of these solutions and obviously corrective action is lacking.

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Using power to solve or prevent problems is not a new idea, but is one of the major considerations too frequently overlooked. The process includes a serious evaluation of what remains after the situation has been resolved. Most internal problems involve the actions of employees. If they are a part of the problem, they also may be a part of the resolution and consolidation of the benefits that replace the problem. It is seldom that problems are so severe that the employee(s) will be seriously affected. The objective of this alleviation step is to return the environment to normal so that one can instigate a positive plan for change that will prevent an abnormal situation from ever again becoming a systemic problem. The Positive Working Environment

The controlling manager should advise employees that the objective is to create and maintain a problem-free work environment. To accomplish this requires all of those who can contribute to be committed to the objective. This includes bringing to the manager's attention occurrences that may lead to problems if they continue. In numerous passages of this volume, references have been made to the conditions that allow employees to recognize that their working environment is free from unnecessary stress, interference, and potential conflict. Four elements have been cited as being essential in producing the conditions that support a peak performance. These four points are reiterated here as they apply to problem prevention with an emphasis on improved productivity: 1. Be a motivational example to employees. Check how your management style affects subordinates. Managers cannot prevent problems in others until they have dealt with their own. 2. Control negative pressure in the workplace. Pressures that discourage employees from productive work may lead to problems that must be neutralized before the spirit to excel is defeated. 3. Managers must serve as facilitators. Identify and support those who can "get going" and "keep going" by their own initiative. 4. Encourage the capable performers. Turn capability into the capacity to be more productive. The first element is concerned with correcting the problems managers may have with their own performance. This is followed by the need to neutralize negative activities in the working environment, whether from within or from other areas. The last two elements deal with facilitating those who show a desire to excel and encouraging independent initiative and selfcontrol. It is important to take note that these actions by the manager are intended to be selectively directed to specific employees who have the potential to be even more productive.

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It would be wonderful if managers had the time for an in-depth study of all employees, but this is not often practical. Yet everyone has individual and specific needs that are remarkably consistent, as noted in Chapter 12. Employees who seek excellence have many common values; however, this does not imply that key people in the same workplace will all be motivated by the same stimuli. Consider the example that follows. The Three Rings Example

Three people were asked by a behavioral researcher to perform the same small task. They were instructed to put three rings over a peg protruding from a square board placed on the floor in the middle of a room. The first person was a lawyer. When handed the rings, she asked, "Would you please repeat the instructions for this task. They seem too simple to be complete." "All that is required is to put the rings on the peg which is protruding from the board in the middle of the floor," said the young man. The lawyer then asked, "Is there a penalty for failure to accurately place the three rings on the peg?" "No, there is no penalty." She responded with a new question, "What is to be gained from placing these rings on the peg?" She was told that there was no direct reward involved in this task. Hearing that, she handed the rings back and said, "With no penalty or reward, you don't need a lawyer. What is the point in doing it?" The man with the rings commented, "I thought you might like to help us with this research program." The lawyer responded and took the rings, walked to the peg, and placed all three over it. She then turned and, shaking her head, walked out of the room. The next person asked to participate was an accountant. He too was asked to put the three rings over the peg. "Which one do you want first, the red, white, or blue ring?" he asked. "You're very perceptive, the order you suggested is correct." replied the researcher. The accountant then asked, "Do you want me to place them on one at a time, or all together?" "Oh, one at a time, please." "When I have finished that task, will there be another?" the accountant inquired. "No, you will have correctly completed all that is required," came the reply. "Thank you," said the accountant. He placed the rings one at a time over the peg. First the red, then the white, then the blue. Having finished, he smiled and without asking the purpose of the exercise walked out of the room.

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The third person, a salesman, was given the same instructions as the others. "Are there any other rules to the game?" the salesman inquired. "There are no other instructions," he was informed. The salesman stood three feet back and pitched one ring cleanly over the peg. He pitched the second ring from ten feet, and it too found its mark. He tossed the third ring from the back of the room. It hit the peg, and bounced to the floor without going around it. He ran back to the man with the rings and enthusiastically asked, "Let me have three more rings, will you? I think I can make it from back there." The first person, the lawyer, saw no motivational challenge without a clearly defined risk or reward. The second person, the accountant, gave importance to accomplishing the task precisely as instructed. He became motivated to take action only after the researcher clearly established the rules. The third person, a salesman, provided his own rules, and because of the significant self-imposed challenge, did not care that he missed the peg from the back of the room. He had no interest in the reward and penalty considerations of the lawyer or the precise rules required by the accountant. He set his own objectives and proceeded. All three were correct in what they did and no judgment was made as to which participant performed the most appropriately. The point is they were all different and responded according to their own perception of the situation. The Lesson of the Three Rings

To make individually oriented motivation effective, first determine what stimulates the individual involved. More than likely, it will be somewhat different for each person. Complicating the job of motivating people at the higher levels of productivity is the fact that what may be effective under one set of circumstances may not be in another. It is a lot like fishing: The same bait doesn't work every time. This statement does not mean a manager must constantly keep changing his or her method of encouragement, as people are fairly consistent in their basic responses, but the length of time it takes and the level of reaction it may provoke will vary depending on current priorities. For example, if you like chocolate cake, you always like it. However, if you have just had three pieces, the priority for another bite, and the need to take it immediately, is severely diminished. Managers must stay in close touch with the key people they wish to influence if they intend to evaluate current preferences. The Role of Leadership in Problem Prevention

Inspirational managers exhibit special qualities. They care for people and show it by being available to discuss the ideas and expectations of their

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close subordinates. In this way the controlling manager can use leadership to help prevent problems from occurring. Those who inspire excellence are leaders who exude self-confidence and share with their employees a sharply focused vision of a common mission. These exceptional executives demonstrate a contagious, boundless energy. It is exciting to work in their presence. They have the courage to take risks and will see opportunity in the constantly changing business environment. When employees identify these characteristics in their supervising executive, they are encouraged to trust him or her with their hopes and dreams for the future. Employees who seek status and advancement (the productive ones) look to their managers to offer the pathway to opportunity. Inspirational leaders will project an exciting vision of what lays beyond the curve in the road and offer a helping hand for those who want to venture on for a closer look. This is a far better activity than spending time in solving problems that may be prevented. Unfortunately, there are many who would like to take the next step, but few who posses the necessary management skills identified in this book to successfully move forward without creating problems. When subordinate managers lack experience and training to deal with difficulties, a challenge confronts the controlling manager with how to prepare them for these eventualities. The self-serving manager will never take the responsibility to direct or train subordinate managers. This reality leads us to question whether the organization should support a manager's self-centered aspirations. There is no clear-cut answer to this proposition, because some self-centered managers will interpret their success and that of the organization to be synonymous. Whatever is good for them is good for the company. They view problems, both actual and potential, as the responsibility of other people. Can a manager who is focused on his or her own accomplishments and progress up the managerial hierarchy also be productively objective in facilitating the success of fellow workers to benefit the objectives of the organization? It seems doubtful that both can be simultaneously accommodated. Too often the pursuit of personal success is at the cost of the organization and its employees. Yet personal success is admired and applauded by both peers and subordinates. There are many that give accolades, or show envy and the desire to emulate the personal accomplishments of self-focused managers. Yet those who are quietly efficient and make it possible for many people in the working environment to reach their potential are often ignored. The negative fallout is that of the many who try to get ahead by selfpromotion, very few will achieve. Those who fail harm the future of subordinates who were enlisted to support the manager on his or her way up the ladder. In Chapter 10 we noted the case of the national sales manager who enlisted the support of six regional managers in his unsuccessful attempt to replace the vice president of marketing. None of the six were considered for promotion beyond the position they held. In these situations the organiza-

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tion is the loser, for it is far better to have eight or ten very competent executives working cooperatively in an organization than one superstar with several self-promoting wanna-be's who copy his or her narrowly focused strategies for personal success that too often fail. There is a certain satisfaction that comes from identifying and solving problems. Managers who are capable of performing this task receive credit for removing an obstruction to greater achievements. On the other hand, seldom do managers receive the same credit when they inspire others to become overachievers or provide plans that avoid problem-producing situations. Usually the one who resolves a problem situation gets and deserves the credit. It is no wonder that solving problems is a popular pursuit for executives. Many resumes will prominently point out that the writer is experienced in problem solving. One would almost believe that it is a separate management function. Solving problems is an important capability for most managers; those who are the most successful are the ones who can clearly identify and quickly correct a problem. The premise of this chapter is that one should also identify employees who have the capability to expand their productivity and provide a way for them to succeed in reaching their potential. When preoccupied in the pursuit of correcting problems, managers will find little time to create opportunities or provide support for those who need encouragement. In part, this book has dealt with eliminating problems in the corporate environment by the productive use of management power along with an admonition that removing a problem is only part of the needed management action. The rest of the job is to initiate a positive activity in place of the negative one that has been resolved. This is accomplished by encouraging those who can make greater contributions to become actively involved in helping to develop and maintain a stable workplace that will not only be of benefit to them, but also their fellow workers. Managers need to determine how this highly important task is accomplished. The good news is that when the working environment is a safe and positive habitat, those who occupy it will help to keep it that way. The Manager's Partners

Most of what you have read in this volume deals with the actions that take place as the result of using power, authority, and management skills. Our focus is now directed to those wonderful employees who are eager to be as productive as possible. These winners are the manager's partners in promoting excellence. For a manager to establish partnerships with key employees, it is necessary to use the least amount of position power as possible. The manager will need to learn what motivates each key person to expend that special effort that leads to exceptional achievement. In today's language, managers need to find the "hot buttons" and learn what "turns on"

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those who display a high degree of capability and commitment. Since we are talking about people who are already productive, it might be more accurate to say the manager must learn what it takes to push into high gear those who are already on a fast track. This will not be accomplished by the use of top-down power. The first principle that must be instilled in those who will be partners for increased productivity is for them to make a conscientious effort to emulate the positive skills demonstrated by their manager. This idea, of course, requires the manager to be a suitable role model for subordinates. A competent manager will direct capable people to become outstanding communicators, facilitators, and motivators of fellow employees. Here we revisit the first three of the five basic managerial skills, which we call power enhancers. They are conveniently reoriented for use by subordinates. When the manager's actions are identified as worthy of being emulated by discriminating employees, they will quickly see the value of these qualities as enhancing their own self-worth. Subordinates who are encouraged to use their own judgment with their manager's approval are ready to become competent partners. For managers to expect the best performers to become even more productive, they must give up most of the top-down control aspects of their management and replace them by imposing an obligation on themselves and the high performers to exercise self-control. The power of persuasion coupled with the five power boosters will be the manager's most useful tools in this process. SUMMARY

Using power to enhance productivity is directed to oneself as well as individuals. Combining persuasion with position power allows managers to address the problems of individuals more easily than when only authority is brought to bear. The key to improvement in productivity by use of a manager's power is found in determining how problems can be prevented and in more time spent on providing opportunities. The availability of opportunities for capable people is where the resource for increased productivity is located. Utilizing this resource is accomplished when managers serve as motivational role models, when they control all of the negative pressures in the workplace, and when they facilitate the success of fellow workers and encourage key people to become partners in promoting the productivity of the entire enterprise.

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SEVENTEEN The Pathology of Power According to the Random House Dictionary of the English Language, one meaning for the word "pathology" is any deviation from a healthy, normal, and efficient condition. Using this reference to power and its pathological use provides a broad path to follow, but included here are also actual cases where the principal power abusers demonstrate the working of a sick mind. I am of the opinion that many CEOs are pathologically psychotic when it comes to how they use their power. Some of today's corporate leaders have run their companies into the ground rather than give up their power. The concept that power can corrupt is universal. That it can corrupt the mind was confirmed by many world leaders and heads of state. We need look back no further than to Adolph Hitler for a perfect example of a man with great power who was possessed by a sick mind. Hitler used his charisma and raw power to intimidate the general public with no compunction about killing millions of its citizens. The manifestation of power as a pathological illness has been with mankind as far back as history has been recorded. Napoleon came upon the scene and provided us with an easy reference to those who are obsessive about their power. We identify them as having a Napoleonic complex. Emperor Nero also made his impact upon mankind by his excessive use of power and pathological behavior. Before him there was Alexander the Great and Gengis Kahn, leaders who would stop at nothing to

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gain power and control. Alexander even imposed the Greek language upon his universe as the only legal language to be used. It would appear that absolute power in the hands of some men is more than they can handle without developing an unbalanced mind. This pathological need for power is easily developed in the hierarchy of our organizations. In this final chapter I will relate some outstanding examples of the pathological use of power. Most are from my own experience, but some come from others who have related their confrontation with the insanity that comes from people with too much power and little or no self-control. In the business world, where I spent most of my career, and more recently as a college professor, I found many abuses of power at every level in the hierarchy. The higher up the ladder one looks, the more tragic the circumstances become. INTERNATIONAL VARIATIONS IN POWER PERCEPTION

The pathological use of power is nearly the same wherever it occurs. A deviant mind in possession of great power will cause true inequities, pain, and suffering while acting in a dictatorial way, no matter what language is used to communicate the orders. The tolerance of some cultures to the misuse of power is much greater than in others, probably because of government orientation or the impact of religion on the population. In countries where the Muslim religion is predominant, women will seldom be found in positions where power is used, except perhaps within the immediate family and even there it is doubtful. The customs of a country may also have a significant influence on how power is used, even in a business situation. During a business trip in Tunisia, my interpreter and I were unavoidably delayed en route from Tunis to Sfax because of a bridge closure. This made us thirty minutes late for an important appointment with the president of a very large food-processing company. My interpreter informed me that after introductions he would be required to make a detailed and very lengthy apology and would be speaking French, the formal business language of the country. This would be followed with a more contrite and personal apology spoken in Arabic, the native language and considered more personal in its use. He also asked me to overlook the anger the president would display during the first apology because it was intended to show the height of his displeasure that we would keep one of such a lofty position waiting regardless of the reason. He was required to show his wrath because of his position. I was also informed that after the Arabic apology, the president would actually become friendly and show his pleasure that we honored him by our visit. The greater the contrast between the anger and the reconciliation, the more respect was exhibited. It was fortunate that the interpreter informed me in such detail because the wrath was indeed on display with desk banging and shaking of fists. When the performance was over, not a word of which I understood, the president, with a smile on his face, put his arm over

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my shoulder and asked me in perfect Oxford English whether I would like some coffee as he escorted me from his sumptuous office to a private sitting room where coffee and rolls were waiting. Had I not been informed what to expect, my reaction and surprise would have no doubt caused a social blunder that would have been difficult to reconcile. On a subsequent trip to Tunisia a different display of power demonstrated where the actual authority in the country was vested. As with most North African countries, Tunisia can get very warm, so I requested that my rental car be one that was air conditioned. A big black Mercedes four-door sedan became my transportation. It was very impressive compared to most of the small local automobiles. In that I was spending part of my time in the country to review government policies regarding agribusiness, I was scheduled to visit several large cooperative farms to study their marketing practices. This required me to have two interpreters, one local Tunisian who was the government official that had set up the trip, and one with a technical background in agriculture who could speak English, Arabic, and French. This interpreter had completed his doctorate at Oklahoma State and flew in from Morocco. Since there were to be four of us in the car, we dispensed with a driver and the Tunisian government official started driving since he knew the way through Tunis to the countryside. Once in the open country, the Moroccan took over the driving so the Tunisian could sit in the bapk with me and discuss what we planned to accomplish. We had traveled about 120 miles when we were stopped at a roadblock for a routine check of documents near one of the towns we needed to pass through. Only then did the Moroccan discover that he had left his driver's license at the hotel. We were escorted by guards to the police headquarters. Although we were not locked up, our hosts did not treat us with deference. The only suggestion they offered to settle the problem would be for one of our party who was legally licensed to drive back to Tunis, pick up the driver's license, and bring it back to the police station. That would have been a round trip of 240 miles. Our Tunisian official said that this was not satisfactory. After an hour delay, he was allowed to call his office. In less than thirty minutes a Jeep with two officers and two soldiers armed with automatic weapons screeched to a stop in front of the police station. They entered the station displaying considerable anger with weapons at the ready. The local police explained to them that they thought we crossed the border from Algeria and that the official government papers were false. Immediately the military took over, and after a brief discussion, the now smiling and cordial local police officers gave us coffee and biscuits and treated us with the greatest respect. In Tunisia the military authority supersedes that of any city police or other officials in the country. To me it was interesting that the government official did not ask for a higher bureaucrat to step in and solve the problem. The ultimate authority with power that needed no explanation was immediately called in to use.

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My first business trip to London brought some interesting insights regarding the differences in the way information is exchanged between one level in an organizational hierarchy and the next. I was scheduled to meet with the resident managing director of an international corporation to discuss a joint venture. To my surprise, my morning meeting was with his assistant and two other managers who would be involved if the venture was concluded. My meeting with the managing director would be in the late afternoon, followed by a dinner. I learned that it was unacceptable business manners for me to request a meeting with the managing director before his staff provided him with all of the information that I wanted to discuss with him. This protocol, I was informed, was standard procedure for meetings with heads of companies in England. The British way is for those who will be included in the decision making to be equally informed of the topics for discussion before the fact. Had I been better informed, this could have been handled by correspondence in advance of the scheduled meeting. In Germany I nearly made a most unfortunate blunder. The president of my company and I were to have a meeting with the chairman of the board for Bayer at their headquarters near Cologne. We happened to arrive at the main office building at the same time as the chairman, who greeted us, shook our hands, and then proceeded to walk to a door to enter the building. I took off right behind him but was unceremoniously grabbed by my president and informed that the door through which the chairman entered the building was reserved exclusively for him. This may not indicate pathological behavior, but if one did not know the groundrules it would seem a bit pretentious. In Germany I came to the conclusion that it was important to follow their rules for business relations, even while they felt no obligation to consider ours, even in our country. This should not be considered a criticism, but rather an observation of the way things are done. Rank is important and should be given the respect the position calls for. The general rules of business decorum in Japan and Korea are very similar. The primary difference, to my observation, is that Japanese businessmen prefer to have several levels of management represented in most business meetings, where as in Korea the president of the company is more likely to have only one adviser at a time in his meetings. In both countries the senior executive involved will make the final decisions and be accountable for the outcome. The relationship between the executive with the highest rank and those who are with him is more consultive in nature than participative in finalizing a decision. The point of this discussion is to inform the reader that what may seem unreasonable or irrational behavior to us may indeed be normal in other countries. The influence of power in business relations is fairly universal. In most countries with which I am familiar the use of position power is more often reserved for internal situations, whereas our executives, as well as those from Germany, will use their power wherever it can effectively be

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applied, whether it is position power, the power of a provider, presumed power, or the power of persuasion. POWER HAS ITS PRIVILEGE

As a young man fresh out of North Dakota State University, I joined a company that moved me to New York City and gave me a private office on the seventy-sixth floor of the Empire State Building with a window that looked out on the Chrysler Building. I was really on top of the world. Since my job was assistant to the technical director, I was quite sure that my private-office privilege was because the company had contracted for more space than they needed. The corporate president had his suite of offices on the eightieth floor. One of my first assignments was to write a fairly technical research proposal for the company. The proposal found its way to the desk of the president. He called me to his office to explain a part of the proposal that he could not justify with the conclusions I predicted. I listened as he carefully explained his calculations and why he felt my conclusions were not accurate. My response was to say, "I'm sorry, but you can't figure it that way." His reply was a quick and loud, "Get the hell out of my office." I left as rapidly as I could and returned in confusion to the seventy-sixth floor. As soon as I composed myself I informed my boss what had happened and he just laughed at me. I was told that George, the president, was given $21 million on his twenty-first birthday by his father. By the time he completed his MBA at Harvard, the $21 million was worth nearly twice that amount because of his keen ability to buy and sell stocks. He was a man that made very few miscalculations. About an hour after I had returned to my office, the president's secretary called me to return. Upon entering his executive suite, the president asked me to sit down and listen. I learned a valuable lesson I would never forget. "First," he said "the most junior person in the home office does not tell the chief executive officer of the corporation that he cannot do something." (I surely picked the wrong words to inform the president that his method of calculating was logical but not applicable because of the restriction I had included in preface to the research project.) The second lesson he taught me was to consider where I was before sticking my neck out. "When you get to know New Yorkers better you will understand," he advised, and it was not long before I knew exactly what he meant. In some situations power has its privilege and is appropriate even if it seems to be severe. In all situations one should remember who and where they are when they come into contact with those accustomed to using their power. This was not necessarily a pathological power play by the CEO, but it is a good example of just how explosive and unexpected the use of power can be.

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The National Sales Manager Was a Psychopath In Chapter 6 I described a situation where the national sales manager for a major American corporation, by the falsification of his expenses, was able to defraud his company in the amount of $25 to $35 thousand per year for a period of ten years without detection. This man held power over 250 people and had bigger problems than stealing money from the company. He was very intelligent, physically imposing, looked the part of the All-American boy, and displayed a charismatic persuasiveness in his personal contacts with people. He was also personally impressive. His power over the salesforce and two levels of field sales managers was absolute. No one was hired or fired without his approval. Over a period of years he established a unique format to the way sales representatives worked. None had a physical sales territory. In its place, at the beginning of each year everyone was given an account list that identified the retailers that would be their responsibility to sell and service. Although providing account lists rather than territories is not uncommon for some industries, this was the only company in its field that embraced this method of assigning sales responsibilities. There was, of course, a very good reason the sales manager made this choice. Most of the products sold were used either in the spring or fall of the year. The high volume of sales over a few weeks of time required a significant inventory buildup at the retail level to accommodate rapid sales. This led to extended payment terms for large orders that would be shipped months in advance of actual need and resold over a period of a few weeks. With generous terms allowed to pay for the goods received, the retailers were not reluctant to place stocking orders suggested by the company's sales representatives. The salespeople were given a quota based on gross sales (rather than net sales, which deduct returned products) on which bonuses, some over $40,000, could be earned for overperformance. A bonus-sharing scheme was devised where sales representatives who were recruited into the undercover program would keep half of their bonus and give the rest to their district manager, who would keep half of that and turn the rest over to the regional manager, who would keep half and give the rest to the national sales manager. To make the situation a sure thing for salespeople, the account lists were compiled from year to year to put all of the overstocked accounts on specific lists and those who were selected to end the year nearly out of stock on other account lists. The high-carryover accounts were assigned to a sales representative not involved in the bonus-sharing program. The accounts with little inventory would be assigned low quotas and would be loaded with product the next year, resulting in very big bonuses earned. To top off the money-making scheme, the account lists that were constructed to produce large bonuses were often sold to newly hired sales representatives with a guarantee that they would make their salary plus a significant bonus. Most of these people

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stayed for no more than two years in their sales job, which caused a serious turnover of sales personnel for some districts and regions. To reduce the possibility of being discovered, there were never more than two of the six regions, six of the thirty districts, and twenty to twentyfive of the two-hundred-plus sales representatives involved in the scheme in any given year. After it was uncovered the evidence indicated the program had been in effect for over ten years and had produced false bonuses that potentially may have reached $6 million over the ten-year period. If these calculations are representative of what actually happened, the salespeople received about $150,000 each over this time period. The district managers' share came to $250,000 each and the region managers took about $375,000 over the same time frame. That left a tidy $1.5 million for the national sales manager. The entire set-up was the brainchild of the national sales manager, but the fraud he perpetrated by overstated expense accounts and the bonus scheme were not his only power plays. One might consider his money fraud to be only the result of his greed or need for money, rather than the work of a pathological user of power, if it were not for other things he did. A motel in which he was staying called my office to report the national sales manager had stuffed towels under the door to the hall and left the motel by a patio door after he had turned all of the water faucets on and flooded the room. He was angry because the motel would not provide him with a new suit when he claimed a $600 suit had been stolen from his room by the motel's housekeeping staff. He tried this same fraud at several motels. This man's affairs were legendary in the industry. Since he traveled extensively, he could easily keep five or six relationships going at the same time. As previously mentioned, in the company's investigation of this man it was revealed that he also had two wives, one with six children and the other with two. Since I was the one responsible for his demise, he held me accountable and a few weeks after he had been terminated I received a telephone call from him with a very interesting message. He said, "One day soon you will walk out your front door and your wife will find you on the steps with a hole in the middle of your forehead. Count on it." This man was no doubt in need of psychiatric treatment. I never saw or heard from him again. To me, it is nothing less than amazing that he could keep his psychotic use of power a secret for so many years. The Disillusioned Minister

A close friend of mine is a man of sincere honesty and genuine personal charisma. He ministered to a rapidly growing church in the Kansas City area. The story of improprieties related to the leaders of the denomination could easily be those of a business or government organization. Here is how he told his story to me.

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I have seen the misuse of power on the highest levels of denominational authority. In our denomination we are organized into districts and each has a superintendent. He serves under (or over) a board elected by the district, but the board meets only once a quarter and the superintendent has full control of the agenda. Most of the members are busy people and have little time to delve into anything that goes on between meetings. The superintendent has a great deal of latitude. I know of one who had a credit card that the district allowed him to use when he was on the road doing business for the church. A friend of mine, the district's treasurer, was responsible for the accounting of expenses. He related to me that he often had to ask the superintendent about improper expenses charged to the district. He questioned items such as shirts, a sport coat, and a vacation trip for his family. When challenged, the superintendent would act innocent even though he made repeated charges of this type. He would then cover the "error" with a check. With an unlimited expense account he probably felt there was unlimited money for whatever he wanted. One of the greatest problems in situations like this is that no one holds the authority figure to any accountability. The treasurer is the only one who can do so, but when this person is promoted to that position by the superintendent, which often is the case, he may never question how the money is spent. My minister friend went on to disclose another incident. This was not church related. I served on the board of a retirement home in our community. The board, which was loosely organized, met only once per month. We were all busy people and had little time to devote to the retirement home operation. We hired a young man, who was well recommended, to run the retirement home. The problem was that he did not know how to handle the power that he suddenly found was his. Since I worked with the sales office, I was frequently at the home during the day and noted that the new manager often came to work at two in the afternoon even though his was a full time position. I learned he was operating another nursing home as well as a travel agency and a restaurant. For the latter he bought supplies on the retirement home account. Our practice, which was common for this type of operation, was to take people's homes for either the down or full payment for admission into the retirement home. The manager had full power to sell these homes. Every one that he sold went for well below the appraised value. I suspected, but couldn't prove, that he had an accomplice who dealt with the home sales and paid our manager for his participation in the deals. I believe the temptation to take advantage of a situation when full power is entrusted into one's hands is hard to resist. It was several years before I could get the board to investigate the manager. In this case an audit and the investigation of the operation revealed flagrant fraud involving much more than I have mentioned. A key point made by my friend was that people were not able to handle total authority. When there is no oversight, what starts as a small misuse of power grows into monumental fraud.

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The Cost of Conspiracy

A major industrial-chemical company realized it needed to diversify into markets that would be more profitable than the future held for their products. The profits in consumer markets were far greater than for industrial chemicals and the company had several consumer products already under development. The most critical question was whether they should license these products to other companies who were already successful in the consumer markets and become their contract supplier, or create a new marketing group of their own to pursue diversification. The company had already put into operation what they believed to be every possible cost-improvement program available to make their industrial chemicals very competitive, but they were still facing shrinking profits over the long term. They decided to diversify into consumer products and I was hired to organize the diversification project for the company. It was no surprise to learn that the marketing director was not in favor of diversifying and creating a new marketing group that would not be under his control. He had lobbied strongly to become a supplier to those companies who were already established in consumer markets. It was his opinion that the diversification should not include marketing, but only contract manufacturing for other marketers. He noted that it would be impossible to take on another marketing commitment without weakening their efforts in the industrial-chemical markets. In addition, some of their largest customers were participating in consumer markets and might see the company's diversification effort as a threat to their business. Although this man was never directly unpleasant to me, he obviously would not be counted among my friends. After four years of product testing and localized test marketing, we launched a nationwide program with four very innovative consumer products. The introduction program achieved its goals, with the establishment of 200 wholesalers accepting our products and the marketing program that supported all four products. Our group also received national awards for unique packaging and display materials. The revenue production was small for the first year, but nevertheless the goal of showing a strong net profit was reached. Everything was set for a banner second year with realistic projections of very substantial growth for the five-year planning period ahead. Unfortunately, I needed surgery to correct a medical problem. I entered the hospital with the belief that everything was in place for the future and I would be back on the job within a few days. The surgeon performed an "unscheduled procedure," which was an accident that caused severe complications. After a week in the hospital intensive care unit it was determined that I would recover, but I needed to spend several weeks in recovery away from the office. When I returned the president called me into his office and explained that while I was in the hospital the marketing director presented him with a document showing that the efforts of my group were not nearly as success-

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ful as we claimed (untrue), and that the proposal for the coming year was far too expensive, especially since we planned to spend much more advertising money than an industrial-chemicals business would normally allocate. Although it was true we were planning to spend more advertising money than one would for industrial chemicals, when this amount was compared to the net profit projections it was very much in line. The president also alluded to my physical problems and questioned whether I would be able to lead a new marketing effort with sufficient vigor. He then told me that the products in my division were sold to an outstanding major marketer of consumer products. A substantial initial order accompanied the marketing director's recommendation to the president to conclude the deal. All this activity was completed in secret while I was in the hospital and recovering at home from the botched surgery. The surgeon could not kill me, but the marketing director did a good job of ending the life of our budding consumerproducts division. He used his power, lies, and misinformation, and made his move when I did not have the ability to rally a challenge. The most important thing to this man was to control the company's marketing activities. He would use his power in any way necessary to accomplish this task, no matter what it cost the company. Two years later the company made a desperation move to get into consumer markets by spending millions to acquire and market a product with an obsolete but well-recognized brand name. In spite of a substantial advertising expenditure to reestablish the brand, it could not be revived. The products my group developed, which were subsequently licensed out, quickly established a very competitive and profitable place for themselves in the consumer market. One of these products is to this day the unchallenged market leader in its high-volume and high-profit category. An interesting conclusion to this true story is that the marketing director who so successfully attacked me when I was critically ill moved on to another company where his misuse of power led to losses that were measured in the hundreds of millions. When he was terminated for his incompetence, I was informed that a friend gave him an opportunity to recover by taking him into his own business as a top executive. It was reported that within two years he had maneuvered his friend out of the business and promptly sold it. I suspect the man who is the subject of this story also lost a very good friend. Any person with a rational mind would not deliberately act in a way that would so adversely effect those who tried to be supportive. The Pathological Use of Power Can Be Lethal

This case was related to me by an executive who was directly involved in the situation. A company that manufactured copper pipe and tubing brought a new CEO into the organization to help turn around a good company that was experiencing problems in profitability and production. The new man

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made some significant improvements in the production area, where he had experience and expertise, but the profits were still a problem. He decided that he could make money by cutting expenses and was unmerciful in budget reductions for every department of the company. Salespeople were provided the least-expensive automobiles the company could obtain. The cost-cutting ploy was a poor decision for this company, which traditionally operated on low budgets. Little was saved by letting good people go and cutting services that were a vital part of the operation. Contrary to the way he treated his employees, the CEO was more than extravagant with his own expenditures. He also became more and more abusive in using his power. Any executive who questioned his decisions or orders would very likely be looking for a new job the next day. This was graphically demonstrated at a staff meeting, where one executive suggested that the corporate jet be kept in the hanger until budgets could be improved. After the meeting he was asked to see the CEO before leaving for the day. He was told to clean out his desk and not return. This was a long-time employee who was valued for the many contributions he had made over many years. The problem, of course, was that the company jet was used almost exclusively for the CEO to either fly his mistress to him or for him to meet her. Her existence was an open secret, as they were seen in many of the better restaurants in the headquarters city. The tragedy of this man's perfidy was its effect on his wife and son. His son committed suicide. It was speculated that the teenager had appealed to his father about the pain he was causing his mother by openly flaunting his mistress in their hometown. He no doubt failed and perhaps because he was so depressed took his own life. The final note to this terrible sequence of events was that his wife also took her life. When it was learned that the president was still with his mistress a few weeks later, he was finally terminated. The tragedies that follow those who pathologically exploit their power are innumerable. The benefits of these actions are few even to those who use them. The lives that are touched reach far beyond those who are immediately involved. The only conclusion one can make is that, for many, power itself corrupts the minds of those who have it to use, and yet many of the most powerful are the least affected. It is my belief that one must not compromise a value system and moral standards for personal gain that leads to the detriment of others. Perhaps one of the qualifications for those who are given power should be that they demonstrate a sense of fairness and show true pleasure in the accomplishments of others. The Owner Was Not Trustworthy

At one point in my career I trusted and relied on the integrity of a business owner to honor and bind our agreement with a handshake contract. A

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good friend and a close business associate of mine left his business to his son and daughter before his death. The son took over the running of the company after his father's death and several years later came to me for help. His father had told him, "If you ever need someone you could trust to provide help, get in touch with Russ McCalley." He was having trouble maintaining a consistent profit flow in the business and wanted me to come into the company and "turn it around." At the time I held a substantial and vested position with a well-managed industry leader located in the Northeast. Six months before I was elected into the executive compensation program that included stock options and a significant bonus twice per year. Yet I felt a strong attraction to return to the West, where this business was located and where I had spent most of my business life. My children also lived in California. The owner who wanted my services said he could not provide a written contract because his sister and mother owned nearly half of the company and neither believed in employment contracts. I trusted the family and his handshake and started as vice president of corporate development. In six months I was to take over as president and CEO. My job was to get the company back to being a profitable operation, diversify into allied product groups, and hire competent department heads for marketing and product development. Since there was no possibility of stock options, I was offered 1 percent of gross sales for any new products or new business brought into the company. This offer included a reasonable base salary and bonuses based on improved profits and increased revenue. I allowed my good business judgment to be influenced by a past friendship and belief that the son would show the same integrity as his father. The handshake contract was never honored. I'm sure this practice would never take place in today's business climate, and perhaps that is as it should be. When I became president and CEO of the company, the owner retired at the age of thirty-six years to travel the world with his mistress. I was left with a disillusioned headquarters staff of people, some of whom were dishonest, inept, and out of control. As quickly as possible I made the personnel changes to bring some professionalism into the company. This accomplished, I found two small companies to buy (with no outlay of cash) and several good product acquisitions. The business began to grow and grow profitably as well. As the corporate head, I was held responsible for a false-claims advertisement that I told the advertising manager not to run, but he placed without my knowing. This resulted in a cease-and-desist action that, as the corporate head, required me to inform the government where I was working for the next ten years. The real pathology of this owner was revealed in his behavior. When he and his wife would go out to dinner he insisted that they order one dinner and split it between them. The only thing he would order to drink was

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water. He enjoyed alcohol but would never think of spending his money on drinks. If you were buying, he would happily indulge. If his turn to buy came around, it was time to leave. He bought a new expensive sportscar but left it in the garage because he was afraid the paint would fade in the sun. He had two expensive motorcycles that he kept in his living room on the white carpeting because he feared someone would break into the garage and steal them. He was obsessed by money even more than using power to control people. When I raised the executive salaries to be consistent with the work they were doing, he objected, but interfered only once by withdrawing the raise in pay I had scheduled for one person who was a long-time employee hired by his father. The employee's wife was in charge of purchasing for the company and the owner felt that the husband would not leave as long as his wife held a good job. I think he was surprised when both of them quit. When he was running the company he operated close to the cash float, which is risky but can be done on occasion. In order to keep our borrowing low he insisted that I continue with the same policy of writing checks over the amount in the checking account to the extent of three or four days of float, depending on the amount of the float and the receipts that would be deposited before overdrafts occurred. I had only one check bounce during my tenure. The bank called to inform me that one specific check did not have sufficient funds to be covered and wanted to know if the company wanted the bank to cover the overdraft with a short-term loan. When I learned it was the owner's monthly check I asked the bank to "bounce" it back to him with the usual comments that it could not be covered because of insufficient funds in the account upon which it was drawn. Our policy for tightening the use of the float was well accepted. In less than a year the owner tired of his retirement and returned. I had been president for just under two years when he decided to once again assume that position and manage his company, making me vice president. The decision to leave for greener pastures and less frustration was an easy one for me to make. The owner never paid a penny of the 1 percent promised to me for sales of new products. He also cancelled the deferred executive compensation plan that I had installed, without paying the deferred compensation earned by myself and other executives. Several promises were made to me and other employees that were never kept. He had no principles in this regard, but rather held the opinion that if he could get by with chicanery, there was no harm to him in using it. When trust is broken without causing a troubled conscience, the behavior is pathological. It was especially true in this situation, since I had substantially improved the fiscal health of the company and contracted for new products that has ensured the growth and profitability of the company. I was also a valued friend of the man's father, with whom I shared the pleasure of an occasional tip of scotch on his back patio while watching the son learn to swim in the family pool. So much for the value of a handshake.

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SUMMARY

The misuse of power is nearly as common as its beneficial use. Most of the misuse comes from managers who are poorly trained or lack experience. There are, of course, those who we have tried to profile in this chapter as pathological in their use of power. These are the executives that made life miserable for those who were under the influence of their power. They can destroy people, companies, and even themselves. Unfortunately, those who are pathological leaders are usually the last to suffer the effects of their sickness. It is not uncommon for whole companies to yield to the power of these egocentric people and allow them to lead them into oblivion. One such corporation, a former major consumer-products company known by everyone, fired one CEO who was a consummate position-power executive and so discouraged the other managers of the company that they became somnambulistic in their behavior. The company fired this CEO and hired another of the same ilk. The only difference was that the new CEO was even more crazy than the one before him. He divested the company of its most valuable products for cash that he wasted on programs to promote the image of the company that now had little to brag about. When this man was finally fired and picked up by another unsuspecting company, it was too late to resurrect what was left and massive layoffs were the order of the day. I have seen some of the better companies in our country protect a pathological power user for reasons no more profound than that they have been with the company for many years. Other companies like to see someone in charge who shows no restraint in taking action. People who do not shrink from using their power sometimes have a positive attraction to a board of directors who too often abdicate their responsibility to question excesses. Where the trend to be an overpowering manager ends is anyone's guess. From my experience it would appear that the overt use of power by top executives and their cadre is still a very popular style. Shouting down those who oppose the manager is not the way to secure the leadership of a group. There is hope of an awakening in some very large corporations to the need for inspirational managers rather than the control freaks who have so dominated American businesses during the past decades. It is time for managers to once again be valued by what they produce rather than how they establish and misuse destructive and pathological position power. More democracy and creative management is finding its way into many businesses, particularly those in the technology and biomedical fields. The time has also arrived for some of the mature corporations to recognize that management's power does not create innovation and productivity. Its value is found in the role of directing the constructive use of power to establish a workplace where those who are capable of greatness are encouraged to become its new leaders.

EPILOGUE Follow the Yellow Brick Road For many managers the task of helping employees to do a better job is very difficult. They may not wish to be critical of people who already are doing well. To help employees to do better and sustain the increased productivity is a indeed challenge even for very creative managers. This difficult job becomes much easier when employees want to be more productive and look for ways to be so. The best place to start is by ensuring that the working environment does not distract or inhibit those who strive to excel. When managers seek to prevent problems before they happen, everyone will have more time to engage in productive activities. One can be greatly aided in reaching their management goals by following the yellow brick road. It is paved with the golden words that motivate people to become all that they are capable of being. These golden words are the ones that have been used throughout the book as power boosters. They are communicate, facilitate, motivate, evaluate, and support. If everyone in the organization used these power boosters as productivity boosters, their relationships with fellow employees would result in a friendly place for all who seek to be achievers. Those who would like to manage a more-productive organization may find the task easier if they accept the following perception of management. This concept advances the premise that workers will become voluntarily

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more productive in an environment where they can depend upon fairness and are kept informed by considerate managers who are trustworthy. When people ask for work and seek the very jobs their managers want them to accept, they are inspired to do their best. Too many executives believe that managing involves using their power to manipulate people to follow orders. A better way to manage is to provide employees with convincing reasons to accept the plans and ideas presented, yet to also perceive that they can earn the right to accomplish objectives with their own initiative and with their own insights and creative energy. This concept is the cornerstone in establishing a more-productive working environment. MANAGE SUCCESS RATHER THAN PROBLEMS

There is a significant difference between managing problems and eliminating them. We have devoted a significant number of pages to this premise. The following story illustrates what happens when one tries to manage problems instead managing to prevent them from occurring. Very subtle changes in objectives take place that significantly divert one's attention from supporting productive activities to managing problems. The story is about a man who retired to a small village on the shore of a beautiful lake. Every day he ventured out on the lake to catch fish; he was proud of his ability as a fisherman. He also was quick to point out that he built his fine boat all by himself. At the end of each day the residents of the village gathered at the dock to see who was the most successful fisherman. The retiree in this story was usually the top producer, and because he was so productive, he happily shared his catch with his friends in the village. It did not take long for him to feel accepted by his new neighbors in the community. He also knew that his ability to catch fish gave him considerable recognition. This made him feel good about himself and secure in his position as one of the best fisherman in the community. One evening upon returning to the dock our fisherman's best friend noted that there was water in the bottom of the boat. It was obvious the boat had sprung a small leak that needed fixing. The friend offered to help "pull" the boat and fix the leak before it got worse. The fisherman gave a very short answer. "No thanks, I'll take care of it myself." The next day before leaving the dock he included a small bailing can with his fishing gear. A few days later, when the fisherman came into the dock his boat had much more water in the bottom than before. In addition, he was wearing rubber boots to keep his feet dry. Once again, his friend offered to help fix the leak, but the fisherman put him off with a terse comment, "All I need is a bigger bailing bucket." That day, like the days recently past, our fisherman had no extra fish to share with his friends and he was very unhappy.

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Two days later he returned to the dock just after noon. The water in the bottom of the boat was up to his ankles. Even with the big bucket he could not keep ahead of the leak, and he had no fish at all. He called to his friend to help him pull the boat out of the water to be repaired. "Well, today, it finally got the best of me. I was afraid I might sink out there. I just didn't feel safe." The fisherman commented. "Oh, no!" his friend replied. "What happened today is not what beat you. It was the first time you put a bailing can in the boat. That was the day you forgot why you were taking your boat out. You were spending your time just trying to stay afloat, when your real reason for being on the lake was to catch fish. Adding a bailing can to your gear did nothing to help you to catch fish." The fisherman had changed his objective and failed to recognize this fact. When he tried to solve his problem with a bailing can, his productivity dropped rapidly, but he did not consider solving the problem until his security was threatened. His self-esteem was in shambles and even his acceptance as a productive fisherman was in question. The objective subtly changed from catching fish to just staying afloat. It is the manager's job to help those employees who are capable to become more productive. When employees come to their manager with problems, temporary solutions just to "stay afloat" will not satisfy. Offering temporary solutions, like the fisherman's bailing can, will not improve productivity. Managers must resolve to create a working environment in which those who mean the most to the success of the enterprise will be motivated to spend their time in productive endeavors rather than trying to "stay afloat."

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Annotated Bibliography and References BIBLIOGRAPHY Block, Peter. The Empowered Manager. San Francisco: Jossey-Bass, 1991. Empowerment promises to instill in our institutional life the same values of individual freedom, dignity, and self-governance that we readily embrace as a society. Paternalism will no longer work, as it implies promises to employees it cannot keep. If one believes that leadership, direction, and control can best be exercised at the top of the organization, then employing the concept of empowerment is not possible. Cooke, Paul W., Jr., and George A. von Peterffy. Problems of Corporate Power. Homewood, 111.: Richard D. Irwin, 1966. The focus of this book is not just on corporate power and its use within the organization, but also the influences of a corporate entity on the political, social, and economic environment that surrounds it. Although it is an older publication, the theme is even more current now than at the time it was published. Corman, Steven R., and Scott Pool. Perspectives on Organizational Communication. New York: Guilford Press, 2000. This book presents a discussion of several theories related to trends in organizational communications, involving interpretive speculation of the meaning of "reflective research." The book uses complicated language to discuss ways of communication between people and organizations that encompass the interpretation of actions and directives.

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Daudi, Phillipe. Power in the Organization. New York: Basil Blackwell, 1986. A distinction is made between authority and power in this volume. It is the author's view that authority is potentially influential, whereas power has the capacity to directly influence. Power relationships are formed in organizations that have interdependent dimensions. The author quotes Berle, who proposes that power is exemplified by strength, leadership, authority, control, and influence, all of which result in the maintenance of stability. He also embraces the proposal of Zaleznik that organizations operate by the distribution of authority, which sets the stage to exercise power. Fradette, Michael, and Steve Michaud. Power of Corporate Kinetics. New York: Simon and Shuster, 1998. New leadership principles that encourage decision making at the front line are a major focus of this book. Employees are encouraged to go beyond the limits set by normal boundaries. Taking initiative is encouraged by leadership that recognizes that the people closest to the problems have the best information for decision making. Olmstead, Joseph A. Executive Leadership. Houston: Cashmen Dudley, 2000. Written in five parts, this book proposes in Part One that the executive leader uses influence as a direct function of the position he or she holds. Different levels of the position indicate different forms of influence that can be used. In the second part the idea is put forth that an executive is responsible for integrating, directing, and leading a complex organization as a whole, coping with internal and external influences as an integrated force on the organization. Part Three covers the process of executive influence, which involves influencing and controlling both individual and organizational behavior. Four important factors are goals, authority, control, and communication. In Part Four the reader is informed of the need for a crucial close relationship between executives and subordinates. The goal is to create synergism and avoid conflict. The final part of this book concludes that senior-level leadership is not simple but complex, as problems arise from multiple causes. Executives must manage many causative elements interdependently. An excellent reference book. Ruschemeyer, Dietrich. Power and the Division ofLabor. Cambridge: Polity Press, 1986. The thesis of this book is that the role of power is crucial for any understanding of the division of labor. The interests of the powerful and the conflicts among groups with different power resources critically shape the process that advances the division of labor or blocks it. That determines the form it will take. Ryan, Kathleen D., and Daniel K. Oestreich. Driving Fear Out of the Workplace. San Francisco: Jossey-Bass, 1998. Employees want a high-trust, high-performance workplace. The following points are raised as leading to that goal: (1) mutual helpfulness, (2) serve each other as a reality check, (3) provide feedback, (4) become a positive influence on each other, (5) humor and enjoy the company of fellow employees, (6) establish creative synergism, (7) respect the differences each brings to the workplace, (8) work through conflicts as a mutual task, (9) make a commitment to established goals, (10) establish an honest rapport with fellow workers, and (11) have straightforward communications.

Annotated Bibliography and References

267

Tingley, Judith C. The Power of Indirect Influence. New York: Amacon Books, 2001. The concept of "beyond assertiveness" is the central issue of this book. This concept is followed with examples of aggressive communications, but used indirectly. Examples include the following techniques: Modeling and matching, which is behavior you use with others to encourage them to treat you in a like manner. Acting in accord involves giving the person you want to influence what they want from you. Reframing asks the manager to communicate in such a way as to alter the meaning of what is said to downplay the impact. Paradox deals with the idea that alternative interpretations may result from different people hearing the same message. Confusion presents the opportunity for indirect influence by how one interprets what is said. The concept of "beyond assertiveness" proposes to intentionally influence a conclusion that may not otherwise occur. Torbert, William R. The Power of Balance. Newbury Park, Calif.: Sage, 1991. This book embraces the idea of "servant leaders." The responsibility of these leaders is fourfold: (1) respond to external problems and opportunities, (2) accomplishing role-defined tasks, (3) define and implement a major strategic initiative, and (4) clarify the organizational mission and encourage continual improvement. The author makes the comment that the idea of "might makes right" is the antithesis of the ethical use of power. Waterman, Robert H., Jr. Adhocracy: The Power to Change. Knoxville: Wittle Direct Books, 1990. Change cannot take place with business as usual: "Bureaucracy gets us through the day; it deals with everyday problems." Change ignores the conventional lines of bureaucracy. When work is organized to be accomplished by a task force or is presented as a project, the focus is on specific problems and objectives, and different disciplines can be brought together to more effectively accomplish the task. Whitney, JohnO. The Trust Factor. New York: McGraw-Hill, 1994. If trust can be established as a major factor in the relationship between managers and those subordinate to them, the organizational hierarchy can be turned from vertical to horizontal. Horizontal organization can establish relationships between bosses and employees as being equals. Zand, Dale E. Information, Organization, and Power. New York: McGraw-Hill, 1981. The emphasis of this book is on the need for upper managers to constantly reeducate themselves and their efforts, or an organization is in danger of decline. A basic premise is that knowledge is power, and managers, along with the organizations they serve, will lose their power if they do not keep their knowledge of the changing business environment ahead of competition. REFERENCES

Conger, Jay A., Kanungo, Rabindra N., and associates, Avolio, Bruce J., Bass, Bernard M., Bradley, Raymond T., Fodor, Eugene M., Gibbons, Tracy C , House, Robert J., Howell, Jane M., Kets deVries, Manfred F. R., Mintzberg, Henery, Roberts, Nancy C , Sushkin, Marshall, Westley, Frances R., and Woyeke, James. Charismatic Leadership. San Francisco: Jossey-Bass, 1988.

268

Annotated Bibliography and References

Congressional Quarterly's, Washington Informational Directory, ed. Jennifer Margiotta. Washington, D.C.: CQ Press, 2000-2001. Kotter, John P. Power and Influence. New York: Free Press, 1985. Kotter, John P. Power in Management. New York: Amacon Books, 1979. Peter, Laurance J., and Hull, Raymond. The Peter Principle. New York: Bantam Books, 1969. Raia, Anthony P. Management by Objectives. New York: Amacon Books, 1974. Srivastva, Suresh, and associates, Barrett, Frank J., Berlew, David E., Brown, L. David, Burke, Warner W., Cooperrider, David L., Golembiewski, Robert T., Greiner, Larry E., Kotter, John P., Louis, Meryl Reis, Miller, Eric J., Neilsen, Eric H., Pasmore, William A., Pettigrew, Andrew M., and Van Maanen, John. Executive Power. San Francisco: Jossey-Bass, 1986. Valentine, Raymond F. Initiative and Managerial Power. New York: Amacon Books, 1973.

Index Acceptance, 168-169, 173-174; power and, 174 Accountability, 181 Adversarial relationships, 189-191 American Management Association, 203-205 Authority, 3, 8; borrowed, 55, 102; implied, 55-56; management by, 217; managing people and, 163; motivation and, 218-219; and organizational structure, 119-120; power of providers, 33; structured, 32-33; and titles, 199. See also Functional management control Beneficial provider power, 42-44 Boosters, 97-116 Borrowed authority, 55, 102. See also Authority Business environment, 5 Business hierarchy, 168-170

Capability, 110 Collective bargaining, 48, 50 Commitment, 108-109 Communication, 98-101; power of, 98; essential steps, 98-100 Compatibility, 110 Competent manager, 145-146 Competition and cooperation, 188-189, 216 Continuity, 111 Control, 8-9, 150-152; of power, 142-143 Directing, 147-150 Direct responsibilities, of management, 152-153.++++++++++++++++++ Division of power, 5 Enhancers of power, 7-8, 97-116; communicate, 98-101; evaluate, 107114; facilitate, 101-104; motivate, 104-107; support, 114-116

270

Index

Evaluation, 24-26, 107; of problems, 234-235 Evolution of power, 4 Expedient participation, 55-56 Experienced employees, 209-210 Facilitating, 98-101; checklist, 102; See also Enhancers of power Franz, Andrew, 17-18 Functional management control, 185-187 Functions, organizational, 122-124, 147-148; management of, 181-187; with power, 191-192 Hierarchy, 6-7, 166-168; in business, 168-170; determination of individual needs, 171-179; of human needs, 166-168; of the military, 7; of peers, 114; supreme, 127-128 Implied authority, 55-56; See also Authority Incompetent managers, 18-20 Indirect responsibilities, 153 Influence, 143, 153-155, 171 Institutional management, 184 Jones, Channing, 155 Leaders, 202-209 Leadership, 196-198; in action 205; power 202, 207-208; and problem prevention, 242-245 Management: area of control, 185-187; behavior, 227-228; influence of, 154-155; institutional, 182-184; power of position, 156-157; power potential, 155-156; relevance of titles, 187-188; role of, 147-160; sphere of responsibility, 152-154; supervisory involvement, 157-159. See also++anaging and leadershi Management by objectives, 200-202 Management styles, 213-217, 227229; by assumption, 225-227; by authority, 217-219; consultive style, 224-225; by example, 219-220; by

instruction, 220-222; and motivation, 228; by participation, 222-224 Managers' power, 137-146, 196-198; of leadership, 202-206; misuse of, 188; and upper-level executives, 200 Managing, 198-202; differences, 209211; functions 181-187; and leadership, 195-197, 202; misuse of power, 188; people, 163-166, 206210; position power managers, 2330; problems, 231-238, 262-263; skilled employees, 210-211; subordinates, 206; unskilled employees, 211-212 Manpower, 36, 38, 40, 43 Materials, 38, 41,43 Money, 38-40, 42 Motivation, 104-107; authority and, 218-219; loss of, 113; and management style, 228; the managers, 116; power of, 208-209 Negative influence, 61-65; power, 238-240 New managers' use of power, 159 Operational relationships, 120-121 Opportunity, 168, 177-178 Organization, 3-10; cooperatives, 130131; group recognition, 48-49; special interest groups, 54-55; unions, 53-54, 128-130; United States Government, 132-136 Organizational structures and systems, 119-131; committees, 125; external, 126-127; internal, 125; supreme hierarchy, 127-128.++++++++Union and cooperatives, 128-129 Participation power, 47-57; collective bargaining, 50; expedient participation,+++++5-56; group recognition 49; informal, 50-51; management's use of, 51-53; practical participation,++6-57; and problem solving 237-238; trade associations and special interests, 53-55; United States Government, 132-136

Index

Pathology of power, 247-260; and conspiracy, 255-260; international variations, 249-251; power and privilege, 251-255 Persuasion power, 81-95; acquiring, 82-85; middle management, 86-87; nonmanagers, 87-89; and participationpower,+3; persuasion i++ positive, 81-82; and policy power, 94; and position power, 89-91; and presumed power, 93-94; and provider power, 91-92; and upper management, 86 Policy power, 71-80; areas of abuse, 76-80; and authority, 71-72; and enforcement 72-74; established, 7475; and persuasion, 75-76; potential, 76 Position power, 11-30; designation of, 12; experienced managers and, 1618; and incompetent managers, 1820; managing effects of, 23-30; new managers use of, 13-16; physical symbols of, 21-22; required use of, 20-21; over subordinates, 12-13 Power, 3-10; of audacity, 65; boosters, 146; and charisma, 65; developing and using, 137-140; directing and controlling, 8-9; division of, 5; evolution of, 4; integrity of, 140143; managers' power, 137-146; in managing functions, 191-192; and the new manager, 159; in organizationstructure++19-131; origin of, 60; of the position, 156-157; potential, 155-156; of resource managers, 36-42; six positions of, 6-7, 9; of seniority, 60-62; source, 146; over subordinates, 12-13; of superiority, 62-63; void, 63-65 Practical participation, 56-57 Presumed power, 59-69; from audacity,++;+y charisma, 66-68; and+ convenience, 68; from opportunity, 65-66; origin of, 60; and a power void, 63-65; and productivity, 238; self-service, 68; from seniority, 6062; from superiority, 62-63

271

Problem-solving paradigm, 231-236; eliminate negatives, 238-242; evaluating problems, 234-235; external problems 235-236; role of leadership, 242-245 Productivity, 231-245; maximize positives, 238-245; and presumed power, 238; and the positive working environment, 240-245; and problem prevention, 239-240; and self-motivation, 239 Provider power, 31-45; authority of, 32, 33; availability, 236; beneficial, 42-44; influence of, 32-33; leveraging,+37; of resource providers, 3642; of service providers, 33-36; can be significant, 236-237 Responsibility, 147-148, 152-153; direct, 152; indirect, 153 Risk sharing, 103 Security, 175-177 Self-respect, 173-175 Service providers, 33-36, 44 The six positions of power, 1-10 Stability, 140-142 Structure, 119-136; internal and external systems, 124-128; operationalrelationships,++20-122; power of structure, 122-124; unions and cooperatives, 128-131. See also Organizational structure Supervision, 157 Support, 8, 98; lack of, 112-113; supporting action, 114-115 The three rings, 241-242; lesson of, 242 Time, 38, 41-42; use accountability, 79 Titles, 187 Unions and cooperatives, 128-129 Unskilled employees, 211-212 Upper-level executives, 200 Vicarious involvement, 168, 178-179 Working environment, 240-241

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ABOUT THE AUTHOR RUSSELL W. McCALLEY is founder and President of R. W. McCalley & Associates, a management consulting firm in Sedona, Arizona. Formerly a professor of Marketing and Management at Arizona State University, he has held executive positions with such organizations as the Carnation Company, The Farnam Companies, Merck & Company, O.M. Scott, and ITT. Among his various publications are Marketing Channel Development+++++++++++++++++++++++++++++++++++++++++ Channel Management (Praeger, 1996).