Different Sources of Power in Organisation
Power refers to that control or holds over another person, organisation or body of people. When talking about it in terms of a country, the Prime Minister or President holds the most amount of power, in businesses, the board of the company will hold the most amount of power. The person that you report to at your workplace holds power over you, as do your teachers in your school.
However, the more power you have, the more responsible you must be with it. We will now look at the sources of power and the various power tactics involved when someone holds a good amount of power.
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What are the Sources of Power?
There are 5 basic sources of power that we should know about for our levels of knowledge. Here are the 5 sources of power, listed as follows:
1. Power of Reward
The power of reward is also called the power of using positive reinforcements. Positive reinforcement refers to when we reward good behaviour to make sure that this positive behaviour continues forth. For example, if we get rewarded with chocolate every time we finish our homework on time, this will encourage us to finish our homework on time.
2. Power of Coercion
The power of coercion refers to when power is exerted using negative reinforcement. Negative reinforcement refers to when we are punished or threatened to be punished for carrying out bad behaviour, which will then encourage good behaviour. For example, if we refuse to do our homework on time, our moms can threaten to take away our screen time for the day, which forces or coerces us to finish our homework on time.
3. Legitimate Power
Legitimate power refers to the power that a person attains concerning his or her position at the workplace, or in other strata of life where the position that they are in earns them the respect which turns into power. For example, your mom has legitimate power because of her position in your life as your mom, or your boss has legitimate power because of her or his position as your boss.
4. Expert Power
This kind of power comes into play when you have certain knowledge and learnings which earn you a level of respect. In this way, your knowledge will become the source of your power. For example, our teachers are knowledgeable and thus gain the powerful position of being your teacher.
5. Referent Power
Referent power refers to the power that a person has over someone else who looks up to them. Celebrities are the biggest example of the people who hold referent power - they can influence their fans to do things like buy products, start a social media uproar, etc. because of the liking that the fans have taken to the celebrity. This kind of power can be tricky and people can be easily manipulated when someone is granted this power.
Power Tactics
There are several power tactics that individuals may use when trying to persuade them about something. Let’s take a look at these power tactics to exert power in organisational behaviour.
Rational Persuasion:
Rational persuasion refers to when a powerful entity uses reason, facts and rationality to persuade or influence another person.
Inspirational Appeals:
This refers to when an appeal is made to the person’s emotions, feelings, aspirations or dreams to persuade them for something.
Personal Appeals:
Using a personal relationship with someone to persuade them, such as friendship, a familial or a romantic relationship, etc.
Consultation:
Getting people involved with the process to make them feel included and in turn persuaded.
Ingratiation:
Showering a person with compliments, flattery and being helpful to the person to get them to listen to you and to what you want them to do.
Pressure:
This is one of the more coercive power tactics where one may use force or the threat of danger or harm to persuade a person.
Exchange:
This is one of the most common power tactics where one chooses to agree to what someone wants them to do or say in exchange for the promise of an “IOU” or a favour in return.
Coalition Tactics:
This is a tactic which uses an all-vs-one method where multiple people get together to have one person agree to what the larger group wants.
Legitimating Tactics:
This tactic is the best one as it involves using protocols, rules and regulations, even laws, to persuade the person to do what the persuader wants them to, and there is no way around them.
FAQs on The Concept of Power in Organizations
1. What is the concept of power in an organization?
In an organizational context, power is defined as the ability of an individual or a group to influence the behaviour, actions, or decisions of others to achieve specific objectives. It is a capacity that one person holds over another, which may or may not be based on a formal position. Power is essential for directing resources, implementing strategies, and guiding employee efforts towards organizational goals.
2. What are the main sources of power in an organization?
The primary sources of power within an organization, based on French and Raven's model, are categorized into formal and personal power. The five main types are:
Legitimate Power: This power comes from the formal position or title a person holds in the organizational hierarchy, such as a manager or CEO.
Reward Power: This is the ability to give positive reinforcement, such as bonuses, promotions, or praise, in exchange for compliance.
Coercive Power: This is the ability to punish or issue threats for non-compliance. Examples include demotions, warnings, or termination.
Expert Power: This power stems from an individual's specialized skills, knowledge, or expertise in a particular area.
Referent Power: This is based on charisma, interpersonal skills, and the admiration or respect others have for an individual, making them want to follow or be associated with that person.
3. How is 'power' different from 'authority' in a business context?
While often used interchangeably, power and authority are different concepts. Authority is the formal right to command and make decisions, granted by the organization based on one's position (a form of legitimate power). It is official and usually flows downwards. Power, on the other hand, is a broader and more informal capacity to influence others. It can be derived from various sources, not just a formal title, and can flow in any direction—upwards, downwards, or sideways within the organization.
4. Can you provide examples of common power tactics used in organizations?
Yes, individuals use various tactics to translate their power into specific actions. Some common examples include:
Rational Persuasion: Using logical arguments and factual evidence to convince others.
Inspirational Appeals: Appealing to a person's values, ideals, and emotions to build enthusiasm.
Consultation: Involving others in decision-making to gain their support.
Exchange Tactics: Offering a reward or favour in return for compliance.
Coalition Tactics: Gaining the support of others to persuade someone to agree.
5. Why is it crucial for a company to effectively manage power dynamics?
Effectively managing power dynamics is crucial because it directly impacts organizational health and performance. When power is used positively, it can motivate employees, foster collaboration, and drive the company towards its goals. Conversely, the misuse or imbalance of power can lead to low morale, high employee turnover, unethical behaviour, and poor decision-making, ultimately hindering the organization's success and creating a toxic work environment.
6. Can an employee with no formal managerial title still hold significant power?
Absolutely. An employee without a formal title can hold significant informal power. This is typically achieved through expert power, where they are the go-to person for a critical skill or knowledge, or through referent power, where they are highly respected and admired by their peers. Such individuals can influence team decisions, shape opinions, and guide projects even without any formal authority, making them key influencers within the organization.
7. What is the key difference between formal power and personal power?
The key difference lies in the source of the power. Formal power is established by an individual's position within the organization's hierarchy. It includes legitimate, reward, and coercive power. In contrast, personal power comes from an individual's unique characteristics and is independent of their job title. It includes expert power (from skills) and referent power (from charisma and respect). Effective leaders typically leverage both formal and personal power.
8. What are the potential negative impacts of the misuse of power in a business?
The misuse of power, such as excessive coercion or manipulation, can have severe negative consequences for a business. The most common impacts include:
Decreased Employee Morale: A climate of fear and resentment reduces job satisfaction and motivation.
High Turnover: Talented employees often leave toxic environments, leading to increased recruitment costs.
Poor Communication: Fear of retribution can suppress open communication and feedback, hiding critical problems.
Unethical Decisions: An unchecked power-holder may make decisions that are illegal or harmful to the company's reputation.
