Working Environment and Power

Power and influence are important concepts in leadership and management because they are intertwined. In essence, it's impossible for a leader to influence his/her followers without power, which is crucial in getting things done and accomplishing specified goals. The close link between these two concepts is also evident in the fact that power can be defined as the capability to influence others (Lunenburg, p.1). As a result, the effective use of power is an important component in leadership, especially with regards to management. Leaders have significant influence over others when they develop a strong power base in their respective area such as organizations, institutions, and the political arena. The ability of a leader to influence his followers or employees to accomplish certain goals and tasks is dependent on the strength of his power base. Without power (which is the capability to influence people), leaders are unable to persuade their followers to accomplish desired goals and tasks.

In light of these factors, power and influence are inseparable in the context of leadership and management. When a leader exercises inadequate power or lack power, he/she becomes ineffective because of failure to influence his/her followers towards achieving desired objectives. On the contrary, when a leader exercises sufficient power, he/she empowers his/her followers to accomplish tasks because sufficient power contributes to empowerment of followers. However, excessive use of power by a leader is also ineffective because it demoralizes people to an extent that it is considered as abuse of power (Whetten & Cameron, p.286).

Even though power is the pre-requisite for influence, not every powerful individual has influence since influence requires obtaining approval of others in order to achieve an objective. There are three major strategies that a leader can utilize to influence others towards certain goals i.e. retribution, reason, and reciprocity. Reason and reciprocity are the most effective strategies since they entail presenting persuasive facts or needs and bargaining respectively. On the contrary, retribution is not the most effective strategy because it entails intimidation and coercion which threaten or exerts pressure on people (Whetten & Cameron, p.298). The effectiveness of reason and reciprocity in influencing others demonstrate the significance of communication in appealing to individual values or ingratiation when exercising leadership.

Power is the pre-requisite for influence but it's highly unlikely for a leader to have influence over others without good supportive communication skills. Good communication skills confer influence on a person by providing a suitable platform and approach to bargaining, ingratiation, presentation of facts/needs, and appeal to individual values. The basis through which someone transforms power into influence is good supportive communication skills. Good communication skills helps transform power into influence through ensuring the selection of an appropriate strategy to influence others. Moreover, such skills help enhance authority through upward influence and to provide assertive feedback to unsuitable influence efforts by others (Whetten & Cameron, p.307).

Since power does not automatically translate into influence over others, it's possible for an individual to have formal power without influence. Actually, a person with formal power can be ineffective because of poor communication skills. Formal power is utilized effectively when it's transformed into influence using centrality, relevance, visibility, and flexibility. These measures require good communication skills which help in creating strong relationships and networks. Strong interpersonal relationships and networks are brought by good communication skills and help in enhancing the effectiveness of formal power.

The significance of good communication skills in transforming power into influence is evidenced in their role in building relationships. Through good communication skills, an individual communicates supportively and creates strong relationships, which in turn help in influencing others using personal and positional power. Research findings have indicated that strong interpersonal relationships are crucial in building positive energy and motivation in the lives of people (Whetten & Cameron, p.238). Positive relationships, which are brought by good communication skills, have proven beneficial in helping individuals carry out activities and even learn more effectively. When an individual with formal power utilizes good communication skills, he/she confers influence over others by generating significant emotional, social, psychological, and intellectual consequences. Moreover, good communication skills help create a suitable environment based on supportive communication, which is necessary for effective use of power to influence others.

McGuffey's Restaurant Case Study

McGuffey's Restaurant, which was founded by Keith Dunn after years of frustration as an employee at big restaurant chains, is experiencing tremendous challenges that have affected its productivity. While Dunn sought to build an organizational climate where employees feel appreciated, valued and engaged, recent employee survey indicates otherwise. Similar to a number of employees, some of the company's managers have started losing faith in Keith Dunn to an extent that some have resigned and are contemplating starting their own businesses. After consulting management gurus and implementing their recommendations in attempts to revive the company, Mcguffey's soon encountered similar problems that have affected its profit margins.

Problem Definition

The problem at Mcguffey's Restaurant is the lack of a supportive working environment for employees, supervisors, and managers. Even though the restaurant was founded as a people-oriented company, Dunn and his managers soon lost focus, which was detrimental to the business (Whetten & Cameron, p.217). As the restaurant became popular and profitable in its initial years of operation, Dunn together with his managers focused on rapid expansion and started embracing practices of big restaurant chains. Employees and managers became increasingly frustrated since the company was losing its founding values. Keith Dunn seemingly forgot his experience of frustrations while working in big restaurants since he started embracing some of these practices even after being warned by his kitchen manager. His attempts to revive the company after consulting management gurus also demoralized employees and managers since it create a competitive working environment. These efforts were detrimental to the business because they were largely centered on reduction of food prices and increasing sales. When organizational leaders lose focus on people, a competitive working environment ensues and results in high staff turnover as well as decreased profitability as evident in this company's case (Brown, p.767).

Alternative Solutions

The first probable solution for Keith Dunn is to re-design the CUDA contest in a manner that every employee benefits from bonuses. The current design of the contest is ineffective because it results in small group wins while majority of employees lose (Hyatt, par. 78). This contest can be re-designed to create a win-win situation where all employees receive bonus for excellent customer service and increase in profit margins. The second solution is to create a self-managing restaurant in which employees take center-stage in developing and implementing customer service initiatives. A self-managing restaurant will help create a supportive working environment in which employees feel valued and appreciated for their contributions.

Evaluation and Selection of a Suitable Alternative

The first alternative will be ineffective because it will still focus on profits rather than people, which is one of the root causes of the restaurant's problems. Creating a win-win situation for all employees through re-designing the CUDA contest will not resolve the problem because the current bonus plan cannot be provided to every employee. Moreover, re-designing this contest would still maintain a competitive rather than build a supportive work environment. Therefore, the most suitable alternative is the creation of a supportive work environment through establishing a self-managing restaurant. The company's problems have largely been centered on the lack of a supportive working environment characterized by supportive communication.

Implementing the Solution

A self-managing restaurant can be created through supportive communication that helps build positive relationships. Positive relationships have been found to be effective in motivating employees to work towards achieving organizational goals and objectives by creating positive energy (Whetten & Cameron, p.238). In this case, Keith Dunn will need to go back to the company's founding values and principles to establish people-centered goals. In essence, the first step towards creating such a working environment is developing an organizational policy that puts people at the center of every activity and strategy. Employees' well-being should take center-stage in the policy as well as excellent customer service. Through this, Dunn will change the organization's focus from profits to people, which is crucial for success.