Power in Organizations

Introduction
*Power is a critical part of organizations. Understanding power
dynamics can help us to understand how organizations operate.
*We can understand every interaction and social relations in
organizations by the help of power concept.
*People manipulate power to accomplish goals and, in many cases, to
strengthen their own positions in organizations.
*using power/reacting to power
The Concept of Power
*The terms power and influence are frequently used interchangeably in
the management literature.
Influence is a transaction in which person B is induced by person A to
behave in a certain way.
e.g;
if an employee works overtime at the manager’s request, that
employee has been influenced by the manager.
The Concept of Power
Power represents the capability to get someone to do something.
-influence is the exercise of that capability.
*Power is the potential to influence, while influence is power in action.
Power-capability
Influence-power in action

You can not influence anyone without power.

The Concept of Power
Power is not an attribute of a particular person. Rather, it is an aspect
of the relationship that exists between two (or more) people.
No individual or group can have power in isolation; power must exist in
relation to some other person or group. (Social, relational)

Power relations in organizations could be symmetrical or asymmetrical

(gain/loss power)
Authority
*The right to give orders and expect obedience.
*Authority legitimizes power.
*A way of exercising power.
*An organizational position based right.
*The right to influence managers to get subordinates to do their jobs.
*Authority is accepted by subordinates. Since subordinates believe that
a person in a certain position has the right to exercise authority, then
they accept the authority and comply with it.
Type of Power in Organizations
LEGITIMATE POWER
Refers to a person’s ability to influence others because of the position
within the organization that person holds.
It is derived from the position itself.
The organization gives to an individual occupying a particular position
the right to influence—command—certain other individuals.
This type of formal power is called authority.
Type of Power in Organizations
LEGITIMATE POWER
Orders from the managers are followed by subordinates because the
manager has authority to command (has legitimate power).
An individual has authority because of the position he/she holds, not
because of any specific personal characteristics.
Type of Power in Organizations
LEGITIMATE POWER
For a subordinate to comply with an order from a superior requires that
the order fall within the subordinate’s zone of indifference.
Zone of indifference-For example, a request by a manager that a
subordinate complete her expense report might be an acceptable
order.
However, if the boss were to request that she record expenses she did
not incur, or that she otherwise falsify the expense report, such a
request might well fall outside her zone of indifference.
Type of Power in Organizations
REWARD POWER
Reward power is based on a person’s ability to reward a follower for
compliance.
It occurs when someone possesses a resource that another person wants
and is willing to exchange that resource in return for certain behavior.
e.g; recognition, extra time off, a good job assignment, a pay raise,
opportunity to attend a training program, etc.
However, that if what a manager is offering as a reward has no value to
an individual, it will not likely influence behavior.
Type of Power in Organizations
COERCIVE POWER
The opposite of reward power is coercive power, power to punish.
Influence over others based on fear.
e.g; A manager may block a promotion or criticize a subordinate for poor
performance.
One need not be in a position of authority to possess coercive power. For
example, fear of rejection by co-workers for not complying with group
norms (e.g., punctuality, reliability, or high performance) represents
coercive power even though one’s co-workers have no formal authority.
Type of Power in Organizations
EXPERT POWER
A person has expert power when he or she possesses special expertise
that is highly valued.
Experts have power even when their formal position in the
organizational hierarchy is low.
e.g; the IT support person who always solves computer problems for
employees.
The more difficult it is to replace the expert, the greater degree of
expert power he or she possesses.
Type of Power in Organizations
REFERENT POWER
Power based on a subordinate's identification with a charismatic
superior.
(personality, behavioral style)
The strength of a person’s charisma is an indication of his or her
referent power.
Contingencies of Power
SUBSTITUTABILITY
*Having a monopoly over a valued resource gives you power.
*Power decreases as the number of alternative sources of critical
resource increase.
*Substitutability not only refers to other sources but also to
substitutions of the resource itself.
e.g; Artifical intelligence (AI) can replace some employees. (employees’
power diminishes)
Contingencies of Power
CENTRALITY
*Refers to the power holders’s importance based on the degree and
nature of interdependence with others.
*Centrality increases with the number of people dependent on you.
*If you decided not to show up for work for two days, how many
people would have difficulty performing their jobs because of your
absence?
*If you have high centrality, many people at work would be adversely
affected by your absence. (quickly, severely)
Contingencies of Power
VISIBILITY
Power increases with your visibility.
Employees gain power when their talents remain in the forefront of the
minds of managers, coworkers, and others.
e.g; taking on people-oriented jobs, frequent interaction with
executives.
e.g; Professionals displaying their educational diplomas and awards on
office walls to remind visitors their expertise.
Contingencies of Power
DISCRETION
*Refers to the freedom to exercise judgement-to make decisions
without referring to a specific rule or receiving permission from
someone else.
e.g; lack of power of many first-line supervisors