Convenience

power
The ability to affect
the behavior of
others
legitimate power
Power granted
through the
organizational
hierarchy; the power
defined by the
organization to be
accorded to people
occupying a
particular position
Chapter 11:
Leadership and Influence Processes
3 2 9
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Reward Power
Reward power
is the power to give or withhold rewards. Rewards that
a manager may control include salary increases, bonuses, promotion recommendations,
praise, recognition, and interesting job assignments. In general, the greater the number of
rewards a manager controls and the more important the rewards are to subordinates, the
greater is the manager’s reward power. If the subordinate sees as valuable only the formal
organizational rewards provided by the manager, then the manager is not a leader. If the
subordinate also wants and appreciates the manager’s informal rewards, such as praise,
gratitude, and recognition, then the manager is also exercising leadership.
Table 11.1
Distinctions Between Management and Leadership
Activity
Management
Leadership
Creating an
agenda
Planning and budgeting
:
Establishing detailed steps
and timetables for achieving
needed results and allocating
the resources necessary to
make those needed results
happen
Establishing direction
:
Developing a vision of the
future, often the distant
future, and strategies for
producing the changes
needed to achieve that vision
Developing a
human
network for
achieving the
agenda
Organizing and staffing
:
Establishing some structure
for accomplishing plan
requirements, staffing that
structure with individuals,
delegating responsibility and
authority for carrying out the
plan, providing policies and
procedures to help guide
people, and creating
methods or systems to
monitor implementation
Aligning people
:
Communicating the direction
by words and deeds to
everyone whose cooperation
may be needed to influence
the creation of teams and
coalitions that understand
the visions and strategies
and accept their validity
Executing
plans
Controlling and problem
solving
: Monitoring results
versus planning in some
detail, identifying deviations,
and then planning and
organizing to solve these
problems
Motivating and inspiring
:
Energizing people to
overcome major political,
bureaucratic, and resource
barriers by satisfying very
basic, but often unfulfilled,
human needs
Outcomes
Produces a degree of
predictability and order and
has the potential to produce
consistently major results
expected by various
stakeholders (for example,
for customers, always being
on time; or, for stockholders,
being on budget)
Produces change, often to a
dramatic degree, and has the
potential to produce
extremely useful change (for
example, new products that
customers want, or new
approaches to labor relations
that help make a firm more
competitive)
Source: Reprinted with the permission of Free Press, a Division of Simon & Schuster, Inc.,
from
A Force for Change: How Leadership Differs from Management
, by John P. Kotter.
Copyright © 1990 by John P. Kotter, Inc. All rights reserved.