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Leadership the productive and moral application of influence!!
Ethics and Profit in all organisations and societies at some point these areas are often in conflict with one-another (doing the right thing morally and doing the right thing for your profits will always create a dilemma).
So what do I mean by Leadership the Productive and Moral Application of Influence?
Well this implies that Leadership can be applied morally or immorally even coercively in organisations to attain an intended goal or state.
I f you know my thoughts on this matter, you will be aware that I am totally perplexed by the sheer number of leadership models being peddled across the world, and of course you have those that are in and out of vogue models reinvented from the past and models wearing a different disguise.
I am still after many years in teaching leaders and managers about the use of â€śPowerâ€ť of the opinion that Itâ€™s the power element of influence in leadership that is either moral or immoral in how it is applied to people or situations.
The Financial Crash of 2008 is a prime example and should have taught us much about how not to apply power. The Leader CEO Dick Fuld at Lehman Brothers – who I now use as a major case study on how not to lead an organisation. More important the case evidenced how not to operate and manage an internal audit system, and how not to operate an internal Corporate Governance model.
Although I am not into reinvention, Nicole Lipkin discusses the different types of power in her new book, “What Keeps Leaders Up At Night.” Her analysis uses the five types of power introduced by psychologists John French and Bertram Raven in 1959, along with two types that were introduced later.
Legitimate Power is where a person in a higher position has control over people in a lower position in an organisation (moral imoral opportunity).
“If you have this power, it’s essential that you understand that this power was given to you (and can be taken away), so don’t abuse it.” Lipkin says. “If Liz rises to the position of CEO and her employees believe she deserves this position, they will respond favourably when she exercises her legitimate power.
On the other hand, if Liz rises to the position of CEO, but people don’t believe that she deserves this power, it will be a bad move for the company as a whole.”
Coercive Power is where a person leads threats and force. It is unlikely to win respect and loyalty from employees for long (imoral).
“There is not a time of day when you should use it,” Lipkin tells us. “Ultimately, you can’t build credibility with coercive influence â€” you can think of it like bullying in the workplace.”
Expert Power is the perception that one possesses superior skills or knowledge.
“If Liz holds an MBA and a PhD in statistical analysis, her colleagues and reports are more inclined to accede to her expertise,” Lipkin says.
In order to keep their status and influence, however, experts need to continue learning and improving.
Informational Power is where a person possesses needed or wanted information. This is a short-term power base that doesn’t necessarily influence or build credibility.
For example, a project manager may have all the information for a specific project, and that will give her “informational power.” But it’s hard for a person to keep this power for long, and eventually this information will be released. This should not be a long-term strategy.
Reward Power is where a person motivates others by offering raises, promotions, and awards.
“When you start talking financial livelihood, power takes on a whole new meaning,” Lipkin says. For example, “both Liz and Bob hold a certain amount of reward power if they administer performance reviews that determine raises and bonuses for their people.”
Connection Power is where a person attains influence by gaining favour or simply acquaintance with a powerful person. This power is all about networking.
“If I have a connection with someone that you want to get to, that’s going to give me power. That’s politics in a way,” Lipkin says. “People employing this power build important coalitions with others … Liz’s natural ability to forge such connections with individuals and assemble them into coalitions gives her strong connection power.”
Referent Power is the ability to convey a sense of personal acceptance or approval. It is held by people with charisma, integrity, and other positive qualities. It is the most valuable type of power.
“People with high referent power can highly influence anyone who admires and respects them,” Lipkin says.
Our next post on Leadership will be a close look at Narcistic Personality Disorders at the Top in Fortune 500 Companies.