 Hi, and welcome to the video review of our course Managing People. In this video, we'll be talking about Unit 8. Our unit structure, we've been talking about eight units and we're on our last unit, which is focused on power politics and change. Our learning objectives for this course are important as all of the test questions that you'll be working through, both in the practice exam and the final exam are tied to these learning objectives. So you just want to read through them and make sure before you take any exam that you're very familiar with all the content and definitely go back and reread content if you don't feel comfortable with it quite yet. So let's read and take a look at these learning objectives together. Describe how power basis such as legitimate power, reward power, expert power, information power, coercive power and referent power work and how they influence people in organizations. Explain common power tactics in organizations and power shifting strategies to effectively manage workplace politics. Evaluate methods to manage organizational politics by using rational processes, strategic leader power, reducing system uncertainty, breaking up political fieldings and reducing competition for scarce resources to ensure appropriate and ethical behavior. Summarize the models of change management in organizations such as Lewin's three-step model, Cotter's eight-step plan, Nadler's system model and action research as well as planned organizational development and crisis management. Analyze how firms use agility and address change in a complex, turbulent and uncertain business environment. And finally, our last learning objective is develop processes to manage change mindsets and instill a collaborative culture to solve business problems. So let's next look at the topics we'll be addressing within this unit. Here's a list of the vocabulary terms that we'll be going over in this unit. Our main topics for unit eight include power in organizations, the ethical uses of power, the management use of power, change management models and how we might apply them as well as leadership mindsets. So let's go ahead and get started in the content. Our first topic is looking at the basis of power and whether you're a leader or a manager or an employee, understanding these bases of power can be really helpful at understanding the best way to navigate a challenging work environment and it can help you choose the best way to wield the power that you might have in your organization in a fair and ethical way too, of course. So some of these bases of power include referent power, which is the type of power where you're a role model as a leader and as a manager, you are sensitive to people's needs and feelings and everyone is treated fairly. This type of power is, we can call it charisma sometimes and can be really important and really valuable in order to get things done within your organization. Our next form of power is expert power and this type of power results from someone being really good at what they do. So for example, if you work in a technology company, a lot of people may listen to a particular person because they're an expert networking systems, for example. So that person is able to use power because they're an expert within that area and they're very knowledgeable, they have a lot of experience. So people look to them in that particular area. Legitimate power is the type of power that is usually given as a result of a title. So someone is a manager, they're a director, they're a chief something, chief executive officer or something along those. So this type of power is given based on title and the structure of the organization. Let's look on our next slide at a couple of the other different bases of power that we might wanna consider. We also have reward power, which is something that managers can use quite often where we have the power to reward someone if they've met a specific goal or a certain criteria. So this is a type of power that managers often use. And then we have a coercerer, which is a little bit more negative type of power where we remind subordinates and our employees of punishments that could occur and we really focus on kind of the negative reinforcement rather than the positive reinforcement. So while this type of power can be useful at times in different situations, it's just important to note that you only wanna use this in certain situations as the other forms of power tend to be a lot more powerful for sure. Some other types of power that you might consider are affiliation power and this type of power occurs through association. So let's suppose that you work for an organization and your best friends with the CEO of the company. Well, because of that, you have affiliation power. People know that you're best friends with her and therefore you may wield some power within your organization simply because of that point of affiliation. The next is group power, which is where if we gather in groups as employees, we can wield a significant amount of power to make change in our organization. So group power is really just focused on there's a lot of weight with a lot of numbers and solidarity among employees to wield this kind of power. And then finally, technology power is the type of power that some people may use because they're able to use technology better than others. Maybe they're really fluent in a particular software, so they're able to use technology power in or or they can control access to technology in order to wield power. Some people take certain actions in order to use their power. Some of these can be positive or negative depending on the particular situation, but use of power, some people may try to control the agenda. So if something never gets talked about, then they always get there away. So that would be an example of controlling the agenda, just making sure that things aren't talked about so that they're able to get ultimately and push for what it is that they want. Sometimes people will use outside experts and say, oh, well, the research says this, so therefore we can't on that particular. Sometimes it's a justified use of power, but sometimes if we try to use outside experts or outside research, even if it's true, it may amiss use of power in some situations and to some extent. So we wanna try that part of it. People sometimes will use bureaucratic gamemanship and this refers specifically to really working the politics of relationship that you have among others in order to gain power over a particular situation. And this type of power is, depending on how you use it definitely can be a negative type of power that we want to avoid. And a more positive type of power is to try to create alliances and coalitions within the people that you work with in order to impact a positive change within the organization. One of the ways that we can look at trying to manage some of the politics and power within organizations is having analytical processes. So this would be a process that's already set and agreed upon to determine answers to problems. So when we do this, it allows us to have a process by which we can go through that wouldn't allow people to circumvent using some of the other more negative sources of power. So analytical processes can be a good way to ensure that power is used reasonably within your organization. We can also have a consensus and cooperation culture and this is focused on the ability to build relationships and connections among members so that politics isn't necessary. And this method helps to build quite a bit of trust within the organization. We can also look at how managers or leaders sometimes lose power within their organizations. And there are many more than just these, but these are the main ones that you read about. And that can include being technically incompetent. So not able to use certain technology or certain tool. A leader that's self-serving or an ethical tends to lose power within their organization. Micromanagement, which really looking after your employees a little bit too much and telling them exactly how to do their job and following up too frequently. This can cause managers to lose power within their organization. Of course, the arrogance can cause loss of power explosive. So a manager or a leader that gets angry and explodes can lose power in the eyes of their subordinates and their employees. And finally, a leader that's inaccessible. So they're not able to meet with and or talk with them. That definitely can cause a power loss as well. We're now moving our conversation here to the idea of change management. And there are several models that can help guide us for change management. So we're going to look at a few of those models now. And this first one is Lewin's model. And it's a fairly simple three step model as you see, which consists of unfreezing movement and refreezing. So there are a lot of strategies that you might want to implement within this process, but the unfreezing phase is really what drives the change. So we can look at unfreezing in terms of driving forces and restraining forces. So those things that are preventing a change and those things that are causing a change. And once the driving forces are stronger than the restraining forces, that's when we're able to make a change within the organization. So then the second phase of this model looks like movement and that involves making plans and making the changes within the actual organization. And refreezing, another way to say that is getting the change to stick. So putting policies, procedures, and other operational consideration in at this point will help get those changes to stick. Let's look at another model of change that's actually based on this model that we've just discussed. Another change management theory that is similar to the one that we just looked at is the Cotter theory. And as you can see, it's similar to Lewin's theory, but it gets into a lot more detail. So the steps for change management with this theory include the first step, creating a sense of urgency for the particular change, build a guiding coalition or a group of people that will help support the change and help move the change forward, building your strategic vision and of course the initiatives around that vision for change enlist a volunteer army. So these would be individuals that ultimately would help you drive the change and make many of the tactical decisions that need to be done in order to make that change happen. Next would be to enable the action by removing barriers. So we wanna make the change as easy as possible for our employees. So we want to eliminate as many barriers as we can to make the change go a lot more smoothly. We also want to look at short-term wins and sustain the acceleration or the movement toward the change and then of course institute the change. So as I said, this model is a little like Lewin's model, but it is a lot more detailed in a lot more detailed steps. Number of system model is our last change model that we'll take a look at, but just be aware that there are a lot of different change models available if your organization is going through a change. But this model is focused on the different elements that you might need to consider before, during and after you've made a change. So the first is the informal organizational elements. So this is the communication patterns, the types of power, the leadership of the organization and so forth. So informal organizational elements. The formal organization elements include things like the organizational structure and the work processes. So you'll want to look at these and consider how these will change given the large change that you wanna make within your organization. Next, we then look at individuals, the employees, the management, what are their abilities? What are their characteristics? How are they going to accept the change? Do we have a gap in skills with this change where we may need to hire people? So we want to look at the individual characteristics. And then finally, we want to look at the individual tasks. What are the tasks that need to occur in order to make the change happen? Who can be responsible for those tasks and how are you going to follow up to make sure that those tasks are successfully accomplished? Our last way of looking at change management is through action research. And action research is essentially a phase that can or a series of steps I should say that can help you determine what type of change and when you may want to make a change. So the first step is diagnosis. So perhaps you diagnose an opportunity or a problem that you want to address with a change in your organization. Then you analyze that particular change, what the problems, what the challenges are and how you may resolve it. And then you get feedback on that. You will want to run it by anyone that's impacted by the change you're going to think about making and gain feedback and hopefully buy in as well. And then you'll take action on that change. So implement the change. And finally, once the change is done you'll want to go back through and evaluate and see how well the change worked and make any small adjustments that you may need to make in order to make that change accepted. Our last section of this unit addresses leadership mindsets. And I think it's important to reflect on this a little bit as you think about finishing this course in terms of how you manage people, how you want to manage people and the kind of leader that you want to be. And when we think about leadership mindsets leaders always self monitor. So they monitor their self talk. And when I say self talk I mean that internal voice that's in our head. And we want to try to have as much positive self talk as possible to gain that leadership mindset. We also want to consistently be examining our assumptions and our beliefs about other people, about our self, about the world around us. This keeps us updated and constantly aware of any changes that we may need to make either within ourselves or within our organizations. Many leaders and managers will only look at what is going wrong. And when we look at a leadership mindset we want to also look at what's going right and figure out how do we make that thing that's going right? How do we make that go right in other areas of our business? So you can think about that in terms of thinking positively and learning from the things that do go positive. Instead of looking at conflict as a negative we always want to look at conflict as an opportunity as a leader. Of course we want to build trust with our subordinates, our employees and our colleagues. And being humble and not letting that ego get in the way is an important aspect to have that leadership mindset. Let's talk about what you've learned in terms of our learning objectives. You learned about power bases such as legitimate power and reward power. You also learned about common power tactics in organizations and how strategies can be used to shift power and manage workplace politics. We also talked about evaluating methods to manage organizational politics using a variety of processes. We talked about the models of change management including Carter's eight step plan as well as Lewin's three step model. We also talked about how firms use agility to address change in complex environments. And finally we talked about how to develop processes in order to effectively manage change in our organization. I'd like to congratulate you on being done with all of the videos for our course managing people. In order to prepare you for the practice exam definitely re-review the study guide and the course materials and I wish you the best of luck on the practice exam.