Definition of Power

The ability to influence and control

anything that is of value to other.
Stephen P. Robbins
 Authority

Authority – is also a force for achieving desired

outcomes but only as prescribed by the formal
hierarchy and reporting relationships. Three
properties identify authority:
1. Authority is vested in organisational positions
2. Authority is accepted by subordinates
3. Authority flows from down the vertical hierarchy
• Authority is exercised downward along the
hierarchy

Business 5301
Winter 2007
Power vs Authority

Authority but Authority Power but

No power Plus power No authority

The right but The right and The ability but

not the ability the ability to get not the right to
to get subordinates subordinates to get other people
to do things do things to do things

The Relationship between Authority and Power

 Distinction Between Power,
Authority and Influence
 Power:

It is the ability to effect a change in an

individual or a group in some way. Power
may or may not be legitimate.
 Authority:

It is the power which is sanctioned by the

organization and is often the ‘source’ of
power. It is legitimate.
 Distinction Between Power,
Authority and Influence contd…
 Influence:

It is the ability to modify or change people in

general ways, like changing their
performance and satisfaction. It is broader
concept than both power and authority.
 The Dark Side of Power and
Politics
People associate power
and politics with attempts
to use organizational
resources for personal
advantage and to achieve
personal goals at the
expense of other goals.
 The Bright Side of Power

• Improve decision making quality

• Promote change
• Encourage cooperation
• Promote new organizational
goals
 The Dependency Factor

 Dependency is the most important element

in the study of power. An understanding of
the concept of dependency will help us
understand the working of power.
 If a person A is dependent on person B, it
is implied that B has power over A.
 Dependency: Key to Power
• To increase the dependency of others on
you, you need to
– Control things viewed as important.
– The resources must be viewed as scarce.
– The resource must have few or no substitutes
(nonsubstitutability).
Bases of Power: Formal Power
Formal Power
Is established by an individual’s position in an
organization; conveys the ability to coerce or
reward, from formal authority, or from control of
information.

Coercive Power
A power base dependent on fear.

Reward Power
Compliance achieved based on
the ability to distribute rewards
that others view as valuable
Bases of Power: Formal Power
Legitimate Power
(cont’d)
The power a person receives as a result
of his or her position in the formal
hierarchy of an organization.

Information Power
Power that comes from
access to and control
over information.
 Bases of Power: Personal
Expert Power
Power
Influence based on special
skills or knowledge.

Referent Power
Influence based on possession
by an individual of desirable
resources or personal traits.
 Evaluating the Bases of Power
• Coercive power tends to result in negative performance responses
from individuals, decreases satisfaction, increases mistrust, and
creates fear.
• Legitimate power does not have a negative effect, but does not
generally stimulate employees to improve their attitudes or
performance, and it does not generally result in increased
commitment.
• Reward power may improve performance in a variety of situations if
the rewards are consistent with what the individuals want as
rewards.
• Expert power relies on trust that all relevant information is given out
honestly and completely.
Power in Groups: Coalitions
Coalitions
• • Seek
Seektotomaximize
maximizetheir
their
Clusters of individuals size
sizeto
toattain
attaininfluence.
influence.
who temporarily come • • Seek
Seekaabroad
broadand
anddiverse
diverse
together to achieve a constituency
constituencyforforsupport
support
specific purpose. of
oftheir
theirobjectives.
objectives.
Two or more individuals who • • Occur
Occurmore
morefrequently
frequentlyinin
combine their power to push for or organizations
support their demands
organizationswith
withhigh
high
task
taskand
andresource
resource
interdependencies.
interdependencies.
• • Occur
Occurmore
morefrequently
frequentlyifif
tasks
tasksare
arestandardized
standardized
and
androutine.
routine.
Strategic Contingencies That Influence
Horizontal Power Among Departments

Dependency

Financial Resources

Centrality Department Power

Nonsubstitutability

Coping with Uncertainty

 Inter-departmental power
(horizontal)
– Dependency
• The power of department A over department B is
greater when department B depends on A.
– Financial resources
• Departments that generate income for an
organization have greater power.
– Centrality
• Centrality reflects a department’s role in the primary
activity of an organization.
• One measure of centrality is the extent to which the
work of the department affects the final output of the
organization.
 Inter-departmental power
(horizontal)
– Nonsustainability
• If an employee cannot be easily replaced, his or
her power is greater.

– Coping with uncertainty

• Departments that reduce the uncertainty for the
organization will increase their power; i.e.
technological developments for IT Departments.
 Power tactics
ways in which power holder translate power basis
into specific actions
• Reason:logical or rational presentation
• friendliness:use of flattery,creation of goodwill, acting
humble,friendly prior to making a request
• coalition:getting other’s support to back up
• bargaining:negotiation through favors exchange
• assertiveness: use of a direct & forceful approach
such as demanding compliance with request
• higher authority:gaining the support of higher
• sanction
Popularity of Power Tactics: From
Most to Least Popular

When Managers When Managers

Influenced Influenced
Superiors* Subordinates

Most Popular Reason Reason

Coalition Assertiveness
Friendliness Friendliness
Bargaining Coalition
Assertiveness Bargaining
Least Popular Higher authority Higher authority
Sanctions

*The dimension of sanctions is omitted in the scale

that measures upward influence.
 Definition of Politics
– Power – the available force or potential for
achieving desired outcomes
– Politics – is the use of power to influence
decisions in order to achieve those outcomes
Using Power:
Organizational Politics

Organizational politics are activities taken

within organizations to acquire, develop,
and use power to obtain one’s preferred
outcomes in a situation in which there is
uncertainty or disagreement about choices.

Individuals use various tactics to increase

their chances of winning
14 - the political game.21
 Organizational politics
1.Definition
• Politics is the application of power –building and
using influence towards intended purposes and
desired outcomes.
• Constructive politics is where organizational
interest comes before personal interest. It’s also
conducted within good ethical standards
• Destructive politics is where personal or sub-
group interest comes before organizational
interest or is simply building personal empire. It
is conducted without regards to ethical standards
 Politics: Power in Action
Political Behavior
Activities that are not required as part of one’s
formal role in the organization, but that influence, or
attempt to influence, the distribution of advantages
or disadvantages within the organization.

Legitimate Political Behavior

Normal everyday politics.

Illegitimate Political Behavior

Extreme political behavior that violates the implied
rules of the game.
 Why Do We Get Politics?
• Organizations are made up of groups and
individuals who have differing values,
goals and interests
• Resources in organizations are limited
• Performance outcomes are not completely
clear and objective
 Types of Political Activity
• Attacking or blaming others
• Controlling information
• Forming coalitions
• Networking
• Creating obligations
• Managing impressions
 Factors That
Influence Political
Behaviors
Employee Responses
to Organizational
Politics
Is A Political Action Ethical?
1. What is the utility of
engaging in the
behavior?
2. Does the utility
balance out any harm
done by the action?
3. Does the action
conform to standards
of equity and justice?
 Is A Political Action Ethical?

Utilitarianism
Utilitarianism Rights
Rights Justice
Justice
 Summary and Implications
• Power is a two-way street.
• Few employees relish being powerless in their jobs and
organization.
• People respond differently to various power bases.
– Employees working under coercive managers are unlikely to be
committed,
– and more likely to resist the manager.
• Expert power is the most strongly and consistently
related to effective employee performance.
 Summary and Implications
• The power of the manager may also play a role
in determining job satisfaction.
• The effective manager accepts the political
nature of organizations.
• The more political that employees perceive an
organization, the lower their satisfaction.
Chapter Check-Up: Power & Politics
When you go to work, what three
things can you do to make people in
your organization dependent on you?
Write down your answers on a sheet
of paper.

Discuss your answers with your neighbor.

Do you think it’s bad to plan how you’ll
get power over others?