Chapter 8 - POWER OF LEADERSHIP

8 POWER AND POLITICS
LEARNING OUTCOMES
After studying this chapter, you should be able to:

 Define power
 Explain the differences between power and
leadership
 Describe the bases of power
 Identify the causes and consequences of political
power
 Understand what organizational politics is and its
effects on employees
Organizational Behaviour Second Edition All Rights Reserved

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POWER
Definition of Power
The ability of one person to influence others into
acting in accordance with his/her wishes.
(Sarah et,al.
2017)
Power is the capacity of a person, team, or organization
to influence others.
 is not the act of changing someone’s attitude or behavior; it is
only the potential to do so
Requires the perception of dependence, so people might gain
power by convincing that they have something of value, whether
or05/27/20
not they actually control that resources. 4
DEFINITION OF POWER

Power vs Dependence
 Power- the capacity that A has to influence the

behaviour of B so that B acts in accordance with
A’s wishes
 Dependence – B’s relationship to A when A
possesses something that B requires
(Robbin & Judge, 2019)

POWER AND LEADERSHIP

BASES OF POWER
 Power is a crucial ingredient to effective leadership.

 There are two sources of power:

Formal/Position-based POWER
Formal/Position based-Power
 Formal power is based on an individual’s position in an
organization.
 Four categories of formal power:

1. Coercive Power
a person who has control over a situation imposes
penalties/punishment on his/her followers when they failed to fulfill
the instruction given.
Control others by using fear of punishment/threat of negative outcomes
Examples of penalty or fear are:
– Verbal abuse
– Loss of promotion
– Possibilities that name is dropped from dealing in mega important
projects
– Possibilities of job losses
– Delayed for promotion

2. Reward Power
Happens when a leader has the ability and power to reward or
share positive values with his/her followers.
Benefits or rewards can be given through financial or non-financial
rewards.
– Financial rewards: Pay rises and bonuses
– Non-financial rewards:
• Recognition for a job well done (a box of chocolates or gift
vouchers)
• Opportunity to work in the organization’s mega projects
• Trust in relationship

3. Legitimate Power (formal authority)

The power of the person hold as a result of his/her
formal position of authority to control and use
organizational resources.
Leader possess power when follower believe that the leader has
“ a right” to instruct them and it is the obligation of the
employees/follower to follow the instruction.
Is a combination of both coercive and reward powers.
Indicate that the leader is accepted by the members in the
organization

4. Information Power
Information power is when a person has access to
key information in the organization.
Under information power, the person is in power as:
– He/She controls the flow of information to others.
– He/She has the ability to manage and control
environmental uncertainties
• Uncertainties can be managed through
prevention, forecast and absorption

Personal/person-based power
Personal/person-based Power
Personal power is when a person exercises power derived
from their unique individual characteristics.
Categories of personal power:
1. Expert Power
The ability to influence other people based on the expertise and
knowledge which one has.
A person who obtains special skills and knowledge, or is an expert in
certain areas (often an experienced person in organization though they
are not managers/supervisors).
Having special skills, knowledge and expertise allows him/her to be in
control.
BASES OF POWER (cont.)
2. Referent Power
The ability of a leader to influence a follower
because of the follower’s loyalty, respect, friendship,
admiration, affection, or a desire to gain approval.
This situation happens when followers tend to like,
respect and admire their leader (the follower desire to be
like the leader (personal liking, charisma and reputation)

DEPENDENCY, THE KEY TO
POWER
 The key to power is the extent of dependency to power between

the person who wields it and the person who is influenced by it.
 Level of Power dependency (level of power) is influenced by three
factors: (What Creates Dependency?)
– Importance of a resource/centrality – if nobody wants what you
have, it’s not going to create dependence – low level of
dependency/power
– Scarcity of a resource - if demand high, supply limited –
having high dependency/power
– Substitutability (Availability of substitutes ) – fewer viable
substitutes for a resources, high dependency/power the person
has.

Power Tactics
 Ways by which individual translate power into specific action(how
individuals influence other people to do things they want them to do
Power Tactics Description

1. Legitimacy Based on authority position and within the grounds of
organizational rules and regulation
2. Rational Request or instruction is based on facts and logical
persuasion arguments
3. Inspirational Use emotional commitment which motivates a person’s
appeals needs and wants
4. Consultation Guide and assist the person in making decisions oh how and
what to do
5. Exchange Exchange of rewards to the task done

Power Tactics
Power Tactics Description

6. Personal appeals Seek for assistance based on friendship and loyalty
7. Pressure Take advantage of demands, threats and issues of
warning
8. Coalitions Seek the aids of other people to persuade, support
and reason with the target

POLITICS, THE POWER IN
ACTION
 Organizational politics generate political behaviour.
 Political behaviour is defined as an activity which is not

required as part of one’s formal role.
 Political behaviour happens when people who lack power

wish to be involved or wish to influence a decision(s).

ACTION
 There are two ways to it, either via legitimate or
illegitimate means:

ACTION (cont.)
Employees’ Response and the Effects of

Organizational Politics
Employees’ will respond differently as it would depend on
how each employee acts, either positively or negatively, to
the situation.
Positive effects: Pushes the employee to work harder
Negative effects: Employees tend to pay less attention to
their work or task, and spoil the ambience of a harmonious
working environment, demotivate employees who work
solely following the rules and lost of trust.


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8 POWER AND POLITICS

After studying this chapter, you should be able to:

Organizational Behaviour Second Edition All Rights Reserved

Organizational Behaviour Second Edition All Rights Reserved

 Power- the capacity that A has to influence the

Organizational Behaviour Second Edition All Rights Reserved

Organizational Behaviour Second Edition All Rights Reserved

 Power is a crucial ingredient to effective leadership.

Organizational Behaviour Second Edition All Rights Reserved

Organizational Behaviour Second Edition All Rights Reserved

Organizational Behaviour Second Edition All Rights Reserved

Organizational Behaviour Second Edition All Rights Reserved

3. Legitimate Power (formal authority)

Organizational Behaviour Second Edition All Rights Reserved

Organizational Behaviour Second Edition All Rights Reserved

Organizational Behaviour Second Edition All Rights Reserved

 The key to power is the extent of dependency to power between

Organizational Behaviour Second Edition All Rights Reserved

Power Tactics Description

Organizational Behaviour Second Edition All Rights Reserved

Power Tactics Description

Organizational Behaviour Second Edition All Rights Reserved

 Organizational politics generate political behaviour.

 Political behaviour is defined as an activity which is not

 Political behaviour happens when people who lack power

Organizational Behaviour Second Edition All Rights Reserved

Organizational Behaviour Second Edition All Rights Reserved

Employees’ Response and the Effects of

Organizational Behaviour Second Edition All Rights Reserved

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