What is power ? What are the kinds of power ?

Power refers to a capacity that A has to influence the behavior of B so B acts in

accordance with A’s wishes.

Someone can thus have power but not use it; it is a capacity or potential. Probably
the most important aspect of power is that it is a function of dependence. The
greater B’s dependence on A, the greater A’s power in the relationship. Dependence,
in turn, is based on alternatives that B perceives and the importance B places on the
alternative(s) A controls.

1. Coercive Power- This kind of power involves the usage of threat to make
people do what one desires. In the organizational set up, it translates into
threatening someone with transfer, firing, demotions etc. it basically
forces people to submit to one’s demand for the fear of losing something.
2. Reward Power- As the name suggests, this type of power uses rewards,
perks, new projects or training opportunities, better roles and monetary
benefits to influence people. However an interesting aspect of this type of
power is that, it is not powerful enough in itself, as decisions related to
rewards do not rest solely with the person promising them, because in
organizations, a lot of other people come into play like senior managers
and board.
3. Legitimate Power- This power emanates from an official position held by
someone, be it in an organization, beurocracy or government etc. The
duration of this power is short lived as a person can use it only till the
time he/she holds that position, as well as, the scope of the power is small
as it is strictly defined by the position held.
4. Expert Power- This is a personal kind of power which owes its genesis to
the skills and expertise possessed by an individual, which is of higher
quality and not easily available. In such a situation, the person can
exercise the power of knowledge to influence people. Since, it is very
person specific and skills can be enhanced with time; it has more
credibility and respect.
5. Referent Power- This is a power wielded by celebrities and film stars as
they have huge following amongst masses who like them, identify with
them and follow them. Hence, they exert lasting influence on a large
number of people for a large number of decisions; like from what car to
buy to which candidate to choose for a higher office in the country.

So, power can be defined in a number of ways however what is important is the
usage of the power by people who possess it. Within the organizational context the
power dynamics and equations need to be carefully managed as they have a huge
impact on the motivation and engagement level of employees. It also defines the
organization’s culture in general and people transactions within the organization in
particular

A very hierarchy and power driven organization finds it difficult to accommodate new
and innovative ideas, any change is vehemently refused, egos clash and lesser
opportunities are made available for the high performers, thus delaying
organizational growth. On the other hand, in an organization which is flat in
structure, people are encouraged to innovate and explore, thus bringing in new
concepts and ideas to accelerate organizational growth and expansion.

2 ) What are the main reasons for organisational

politics ?
Organisational politics is referred to the self-interest and agenda of an individual in
an organisation without any concern about its impact on the objective of the
company to achieve its goals. It is a process that is related to the self-serving human
behaviour and his interactions involving authority and power.

Reasons for organisational politics

Do not want to work hard

Numerous individuals wish to have everything that life has to offer and sometimes
even more without making an effort to achieve them through hard work. These
people always look-out for an easy short-cut so that they can come in the limelight
without much effort. Organisational politics is a tool for them to create a negative
image of the people they think are boulders in their pathway.

Cannot adjust to change

Change is a part of an organisation, and employees must always be ready to accept

the fact and work towards it. Some employees are unable to acknowledge the
changes, and it proves unsettling for them. When you have winners and losers
because of change, then the employees on the losing side will lash out through
underhand and subtle behaviour to demean the individuals who have willingly and
happily accepted the changes in the workplace.

Personal relationships
The personal relationship has no place in the professional world environment, and
people must keep personal and professional relations separate. It is often seen that
supporting someone you have a good relationship will drag you down the wrong
path and at the end of the day it becomes a reason for organisational politics

Lack of clarity

Lack of clarity leads to accusations and encourages rumour mills to work in full force.
The assumptions and perceptions have no basis on facts but often leads to
organisational politics.

Manipulations

If someone wants to mislead his superior then he will try to manipulate the
information and pass the wrong one with the help of organisational politics

Jealousy

Jealousy is bound to creep up between co-workers if someone is smarter than others

and especially if his efforts are appreciated by the top brass. This leads to
organisational politics as the rest of the individuals will try to tarnish his image in the
company

Lack of trust

An essential reason for corporate politics is the lack of trust between colleagues.
Employees do not want their colleagues to get more attention and
acknowledgement for work, and this becomes an essential reason for playing office
politics and finding ways to destroy their image and reputation in the company

Blame game

It is necessary to speak relevance without finding fault with others, but it does not
always happen this way. People generally overlook their shortcomings and tend to
shift the blame on others

Gossips

One of the reasons for office politics is the habit of employees in taking part in
unnecessary chatter about co-workers, peers and other people in the organisation

Struggle for power

The struggle for power in a company often becomes one of the primary reasons for
organisational politics. As one moves up the ladder the opportunities for quick
growth becomes less. Individuals struggle to prove themselves and reach the top.

3 - In what context , negotiation is preferred? Briefly

describe various steps in negotiation
What Is Negotiation?

A process in which two or more people exchange goods or services and attempt to
agree at an exchange rate for them.

Negotiation can take place between buyers and sellers, employers and prospective
employees, two or more governments, and other parties. Here is how negotiation
works and various steps involved in it.

Preparation
Before negotiations begin, there are a few questions it helps to ask yourself. Those
include:

 What do you hope to gain, ideally?

 What are your realistic expectations?
 What compromises are you willing to make?
 What happens if you don't reach your end goal?

Preparation can also include finding out as much as you can about the other party
and their likely point of view. It often helps to put your goals in writing and develop
a range of outcomes—from “most hopeful” to “minimally acceptable”—to keep
your attention focused.

Also, assemble any facts that will help you make a persuasive case. If you're
negotiating for a new job or a raise at work, for instance, come armed with concrete
examples of your accomplishments, including hard numbers if possible. Consider
bringing testimonials from satisfied clients and/or co-workers if that will strengthen
your case.

Many experienced negotiators consider preparation to be the single most important

step in the entire process.

Exchanging Information
Once you're prepped for the negotiation, you're ready to sit down with the other
party. If they're smart, they have probably prepared themselves, as well. This is the
point at which both sides will present their initial positions in terms of what they
want and are willing to give in return.

Being able to clearly articulate your wishes is critical to the negotiation process. You
may not get everything on your wish list, but the other party, if they want to reach a
deal, will have a better idea of what it might take to make that happen. You will
have a better idea of their position, and where they might be willing to bend, as
well.

Bargaining
Now that both parties have laid out their case, you're ready to start bargaining.

An important key to this step is to hear the other party out and refrain from being
dismissive or argumentative. Successful negotiating involves a little give and take on
both sides, and an adversarial relationship is likely to be less effective than a
collegial one.

Also bear in mind that a negotiation can take time, so try not to rush the process or
allow yourself to be rushed.

Closing the Deal

Once both parties are satisfied with the results, it's time to end the negotiations.
The next step may be in the form of a verbal agreement or written contract. The
latter is usually a better idea as it clearly outlines the position of each party and can
be enforced if one party doesn't live up to their end of the bargain.

4- How is organisational culture formed and

maintained?
Organizational culture refers to a system of shared meaning held by members that
distinguishes the organization from other Organizations.

Organizational cultures are created by a variety of factors, including founders' values

and preferences, industry demands, and early values, goals, and assumptions.
Culture is maintained through attraction-selection-attrition, new employee
onboarding, leadership, and organizational reward systems.
Founder Values

A company’s culture, particularly during its early years, is inevitably tied to the
personality, background, and values of its founder or founders, as well as their vision
for the future of the organization. When entrepreneurs establish their own
businesses, the way they want to do business determines the organization’s rules,
the structure set up in the company, and the people they hire to work with them.

Industry Demands

While founders undoubtedly exert a powerful influence over corporate cultures, the
industry characteristics also play a role. Industry characteristics and demands act as a
force to create similarities among organizational cultures. For example, despite some
differences, many companies in the insurance and banking industries are stable and
rule oriented, many companies in the high-tech industry have innovative cultures,
and companies in the nonprofit industry tend to be people oriented.

How Are Cultures Maintained?

As a company matures, its cultural values are refined and strengthened. The early
values of a company’s culture exert influence over its future values. It is possible
to think of organizational culture as an organism that protects itself from external
forces. Organizational culture determines what types of people are hired by an
organization and what types are left out. Moreover, once new employees are
hired, the company assimilates new employees and teaches them the way things
are done in the organization.

Attraction-Selection-Attrition (ASA)

Organizational culture is maintained through a process known as attraction-

selection-attrition. First, employees are attracted to organizations where they will
fit in. In other words, different job applicants will find different cultures to be
attractive. Someone who has a competitive nature may feel comfortable and
prefer to work in a company where interpersonal competition is the norm. Others
may prefer to work in a team-oriented workplace.

New Employee Onboarding

Another way in which an organization’s values, norms, and behavioural patterns
are transmitted to employees is through onboarding (also referred to as
the organizational socialization process). Onboarding refers to the process
through which new employees learn the attitudes, knowledge, skills, and
behaviors required to function effectively within an organization. If an
organization can successfully socialize new employees into becoming
organizational insiders, new employees feel confident regarding their ability to
perform, sense that they will feel accepted by their peers, and understand and
share the assumptions, norms, and values that are part of the organization’s
culture.

Leadership

Leaders are instrumental in creating and changing an organization’s culture. There is

a direct correspondence between a leader’s style and an organization’s culture. For
example, when leaders motivate employees through inspiration, corporate culture
tends to be more supportive and people oriented. When leaders motivate by making
rewards contingent on performance, the corporate culture tends to be more
performance oriented and competitive (Sarros, Gray, & Dernsten, 2002). In these and
many other ways, what leaders do directly influences the cultures their organizations
have.

Advantages & Disadvantages of Strong Organizational

Cultures:
Advantage
Coordination: Structural changes within organizations over the last decade
or so, have given rise to increased interdependence across functions and
activities. As such, coordination has become a critical success factor in
helping organizations achieve their goals. Where strong cultures exist,
communication is facilitated. Employees are not afraid to share information
and this will ultimately add value to the customer base.

Conflict resolution: When people share the same basic core values in an
organization, it can often lead to conflict resolution more quickly than in an
organization with a weak culture. While members of a not-for-profit might
argue over how to best deliver a service, agreement might be more readily
reached when they can all agree that they share the core values of serving
the membership to the best of their ability.
 Financial success: A number of studies have been done that indicate that
strong cultures (where the mission, strategy and goals of the organization
are supported) contribute to the bottom line. A study of insurance
companies found that managers who responded more consistently to a
culture survey had greater asset and premium growth than those with
disagreement.

Disadvantages
One of the cons to strong cultures was mentioned above, and that is of
colliding values and beliefs when organizations merge or are acquired. In
addition, one of the most significant downsides to a strong organizational
culture is a forceful resistance to change. In a new economy where change
has become the norm rather than the exception, organizations must be
flexible and adapt quickly to external influences. Often, this necessitates a
new perspective, part of which includes the adoption of new and different
beliefs and assumptions. Innovation might depend on a cultural change;
strong cultures tend to resist this.

A strong culture can also act as a barrier to diversity. One must be able to
“fit” with the culture of the organization, and often new employees,
because of race, gender, disability, or other differences, might not be
perceived as an appropriate “fit”. It is critical for managers to remember
that a heterogeneous work environment will provide a variety of strengths
within the organization.
Advantages & Disadvantages of Centralisation &
Decentralisation:
Centralization
The Advantages of it are as follows:
1. Transparency in the chain of command – The centralization of authority and a
defined chain of command are features of the centralized organization.
Employees are aware of whom they are supposed to report to, and there is a
clear line of authority delegation.
2. Lesser operational costs – The operating costs are lower when there is a
transparent chain of command because everyone knows their specific roles.
As everyone is informed of their duties, it lowers the cost of outsourcing.
3. Suitable communication channel – Here, appropriate communication routes
are established. Direct control and supervision are helpful to ensure that there
is no task duplication or poor quality.
#2 Disadvantages
Some of its disadvantages of it are the following –
1. Lack of individual initiatives – The fundamental issue with this system is that
staff members must be more active in decision-making. It is impossible to
value original initiatives and ideas. Also, it prevents workers from making
judgments or proposals. Instead, they adhere strictly to the written protocol.
2. Absence of specialization – The organization needs more effective handling of
specialized jobs because a single person makes all decisions in a centralized
structure.
3. Lack of loyal employees – Employers are viewed as cranks in this process. As a
result, in centralized organizations, only some employees show loyalty.
Personal initiatives are the source of employee loyalty.

Decentralisation

Advantages of Decentralization Disadvantages of Decentralization

Motivation of Subordinates Difficult to Coordinate

Growth and Diversification External Factors

Efficient Communication Narrow Product Lines

Ease of Expansion Expensive