Power: A Major Force in Work Organizations
Power is a formal force in work organizations that derives from an individual’s role or position, forming specific characteristics of the individual, such as work-related and expertise-based leadership qualities.
Sources of Power
It can take many forms and is derived from a variety of sources, but the two main sources of power are:-
■Organizational Power
■Individual Power
Organizational Power
The Power derived from a person’s position in an organization and from control over important resources conveyed by that position. These organizational resources can be tangible, such as money, work assignments, and office space, or more intangible, such as information or communication access to other people
Individual Power
Individuals gain power through personal characteristics such as specific expertise or leadership ability that provide value to the organization and its members.
Bases of Power in Work Organizations
■Having power and using power are two different things.
■For example, imagine a manager who has the power to reward and punish the employees.
■In fact, the manager can give rewards and punishments, which will be enough for the employees to follow his orders.
Types of Power Bases
There are six types of power bases and sources.
1. Legitimate power
2 . Reward power
3 . Coercive power
4 . Expert power
5. Informational power
6. Referent power
Legitimate Power
■Legitimate power is the power that comes from one’s organizational role or position.
■For example, a boss can assign projects, a policeman can arrest a citizen, and a teacher can give grades to a student.
■ Start-up organizations often have founders who use their legitimate power to influence work for longer hours to help the company survive.
Reward Power
■Reward power is the ability to grant a reward, such as an increase in salary, a perk, or an attractive job assignment.
■When Steve Jobs ran Apple, he had reward power in the form of raises and promotions. Another example of reward power comes from Bill Gross, founder of Idea Lab, who has the power to launch new companies
Coercive Power
■Coercive power is the ability to take something away or punish someone for non-compliance.
■Coercive power often works through fear, and it forces people to do something that ordinarily they would not choose to do.
■The most extreme example of coercion is government dictators who threaten physical harm for non-compliance.
■American presidents have been known to use coercive power on their staff.
Expert Power
■Expert power comes from knowledge and skill.
■Steve Jobs has expert power from his ability to know what customers want even before they can articulate it. Others who have expert power are employees, such as steel workers who know the temperature, combination, and lengths to get the best yield.
■Technology companies are often characterized by expert rather than legitimate power .
Information Power
■Information power is similar to expert power but differs in its source.
■Experts typically possess a vast amount of knowledge or skill, while those with information power stand out because they have access to specific information
■For example, knowing price information gives a person information power during negotiations.
■Those who can span boundaries and serve to connect different parts of the organization often have a great deal of information power
Referent Power
■Referent power stems from the personal characteristics of the person, such as the degree to which we like, respect, and want to be like them.
■People often refer to referent power as charisma—the ability to attract others, earn their admiration, and captivate them.
POWER DYNAMICS IN WORK ORGANIZATIONS
Researchers have investigated the distribution of power in organizations, the attempts of organizational members to increase power, power and dependency relationships, and the effects of power on important organizational outcomes, specifically job performance and satisfaction.
