USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

ORGANIZATIONAL PSYCHOLOGY SEMESTER-III

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

SUBMITTED BY GROUP 9
AAKANKSHA JHA CHIRAG JAIN DIVYA MURALI NIDHI LOHATI SAMBHAV KRISHNA SYED AFIEF III Semester BBM

Date of Submission: 1st July, 2011

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

CONTENTS
I. Introduction

II. Understanding Power Pluralism III. Types of Power IV. How to Use Various Bases of Power in Interest of the Organization V. Conclusion VI. Bibliography

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

INTRODUCTION
Since the beginning of human civilization, people have been fascinated by power, its acquisition and usage. Keeping the pros and cons aside, it is undeniable that power is imperative for people to establish certain actions in order to accomplish their desired goals. Power is the ability that a person may use to get others to do what he/she wants to be done. The nature of power is the control over other people, caused by deliberate action or words or even naturally. In an organization, power of a person can be derived from interpersonal, structural and situational bases. The truth about power is that people crave for it. A person with power commands respect. The differences are in the degree and intention; whether someone desperately pines for power, and whether the need for power is directed towards personal or organizational purposes. The issue of power in an organization needs to be closely studied because it affects the efficacy & atmosphere of the organization. Various issues in an organization are created by improper use of power by the employees at various levels and degree. There are instances where the managers made in charge of undertakings lack required knowledge and skills; sometimes a senior employee blatantly takes credit for a task that is actually done by his junior employee as he possesses positional power, on a positive note, a manager who is perceived as someone powerful in an organization will serve as a positive influence & a brilliant leader. There are also cases where the managers are intentionally sought power in the organization for their personal benefits. Power is intuitively thought of as something evil and politically incorrect, however, not always so. Power is important to many people as it can be meant for status and prestige, and also for promotion, leading and ruling. Anyhow, such intentions if not properly associated with the organizational purposes and directed goals, will not benefit the organization.4 In the corporate world, it is essential, especially for the HR department, to regularly monitor & analyze the domain and strength of power and take corrective measures to ensure that most of it is in the interest of the company. This report is a study of the bases and use of power in an organization directed towards the interest of the organization. 3

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

UNDERSTANDING POWER PLURALISM

What is Power? Power is a measurement of an entity's ability to control its environment, including the behaviour of other entities. In the corporate environment, power is often expressed as upward or downward. With downward power, a company's superior influences subordinate.1 In organizational context, the term power refers to the ability of individuals to influence the conduct or activities of others. People in an organization draw such power from many sources such as formal authority defined by organizational structure and policies, expert knowledge and skill, ability to control resources, and interpersonal skills. In their book, Power and Influence in Organizations, Roderick Moreland Kramer & Margaret Ann Neale talk about factors that produce illusions of control, dysfunctional effects of power, and ways of overcoming illusions of control; they stress that a systematic change in the organization requires formal power, the ability to convince people of the value of change, and knowledge of the current emergent or social structure of an organization.2

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

Types of power
One of the most notable studies on power was conducted by social psychologists John French and Bertram Raven in 1959. They identified five bases of power:

Positional Power Sources: 1. Legitimate Power It refers to the power possessed by a person because of the official power he
or she is holding. Be if the General Manager or a company or a principal of a school, people who enjoy legitimate power are people who hold a position in their job or profession. Social hierarchies, cultural norms, and organizational structure all provide the basis for legitimate power. However, legitimate power is very unstable as no position or job is permanent. 2. Reward Power When people control and induce other people to do something or refrain from doing something in exchange of a reward such as promotion, desirable assignments, training opportunities etc. It is called reward power. It can not be used extensively and perpetually due to certain managerial restrictions and motivation being a subjective matter. 3. Coercive Power Threats and punishment used in order to gain power and make people do as one desires them to do is called coercive power. It is often criticised due to resulting in unhealthy behaviour and dissatisfaction. Threats, denied privileges, demotions etc, are some tools used under coercive power.

Personal Power Sources: 4. Expert Power Expertise, knowledge, skills, solid judgement, influence on people etc, are certain
qualities that if possessed by someone, makes him looked up to as an inspiration or leader. People are enchanted by the intelligence and performance of the people and therefore the person who possesses these traits are powerful. As a subject matter expert, his ideas will have more value, and others will look to him for leadership in that area. 5. Referent Power The charisma and charm makes a person powerful as their appeal influence people around them, examples celebrities. Referent power can be a big responsibility, because you don't necessarily have to do anything to earn it. Therefore, it can be abused quite easily. Someone who is likable, but lacks integrity and honesty, may rise to power and use that power to hurt and alienate people as well as gain personal advantage.

Apart from the above mentioned basic types, we can also categorize power to be of the following nature:

Influential Power Power of Applied Pressure Power of Raw Force Assumed Power Organizational Power Ascetic Power 5

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

HOW TO USE VARIOUS BASES OF POWER IN INTEREST OF THE ORGANIZATION?

Now that we have understood the basic concept of power/authority pluralism, the obvious question is how does one use this knowledge to enhance efficiency and productivity in a company? How can it be used to the advantage of a company? In an organization, it becomes an essential task to congregate all sources and bases of power in such a manner that it contributes to constructive development, avoiding negative politics and accentuating roles of powerful people for good. It is a tedious task to ensure there is no conflict of interest within an organization and at the same time not come across as a strict controller and regulator causing uncomfortable atmosphere in the organization. The following measures could be taken to ensure the establishment, the conduction and the execution of power is used in best interest of the organization:

1. The various sources of authority need to be identified and intelligently incorporated into the existing framework of decentralisation. Basically, these differing sources of authority need to be institutionally recognized and then channelized in such a manner so as to circumvent any obstructions and blocks, and promote the free flow of directives through the traditional chain of command. This power plurality offers an alternate and possibly more effective method of issuing directives through personnel. The following is a hypothetical example substantiating the above:

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

Let us assume, the above depicted chart represents the hierarchical structure of a small department in a company. It is possible that AGM 1 is preferred by his subordinates over AGM 2 and that he enjoys far more power, respect, reverence and authority as compared to AGM 2. Keeping aside AGM 2s incompetence if any, the immediate policy which must be implemented is the channelling of directives from the MD through AGM 1 to the subordinates instead of AGM 2. This ensures smoother, more efficient working of the system. It circumvents the possible friction between the subordinates and AGM 2, creates a more friendly work environment and serves as an excellent catalyst to provide better productivity. Now, AGM 2s incompetence or unpopularity may not be enough to terminate his services, even if it be assumed that he is incompetent and unpopular. It is also possible that his presence is vital to the companys interests. It is also possible that he is popular among a different set of subordinates and enjoys more power and authority among those subordinates as compared to these. In such a situation, it is best to use the more efficient channel of AGM 1, and yet enjoy AGM 2s presence in the company and benefit from his productivity.

2. Power should be vested and concentrated to those who ensure that the flow of orders and instructions is received and executed effectively. Individuals should try and choose positions that fit their personality and the top level managers should also appoint employees to their respective task or allot them to groups keeping their individual traits in mind. Extraverted employees should choose positions that require them to work in teams. Introverted employees should choose positions that require them to work more on individual projects. Higher level managers and the HR department must also try to build a coordinal environment and appoint tasks so that extrovert and introvert people, i.e. people who enjoy legitimate & influential power and those people who are less interactive get the chance to mingle and learn from each other. This helps in decentralization of power.

3. Individuals who wish to influence others should take into account the nature of the position. If the position is one that values interaction and teamwork then using a more outgoing, extraverted approach may be the best way to influence the other individual. If the

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

position is more independent, then perhaps using a more introverted, autonomous approach will be the most effective influence tactic.

4.

Finally, individuals can change their own behaviour and enjoy a powerful hold through leadership training programs that decouple the link between personality and behaviour. Sessions must be conducted to motivate people to use the power vested directly or indirectly in their hands keeping the companys interest as priority and then for the welfare of their co-workers and then self.

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

CONCLUSION The knowledge of these various power sources in a corporate structure may enable smarter allocation of managers, and may help re-design better teams, and a smoother chain of command. This knowledge should be effectively put to use by implementing such policies and thereby increasing efficiency, effectiveness, and productivity to the advantage of the company. If a company is able to understand the dynamics and domain of power and its usage in the organization, it can reason how people are influenced, and decide if the company want to accept the bases of power being used or get rid of it. The recognition of individual sources of power will also help organizations to use them as motivational and influential tools. As one of the streams in studying organizational behaviour, understanding and using existence of the various kinds of power in an organization for organizations good become very crucial. On many levels, power is extremely important in terms of providing direction and assisting in the management process. Power may be exercised by individual and groups of individual to achieve their personal objectives, in ways that may interfere with achievement of organizational objectives. Therefore, it is important to understand the nature of such power and regulate it. It is best if ways can be found to channelize such power to assist in achievement of organizational goal. When that is not possible, at least it must be kept in check to minimize negative impact on achievement of organizational objectives. 5 Organizations must also encourage its employees to be effectual and authoritative on their own. Each employee should be encouraged and motivated so that he or she can serve as a powerful tool for the organization, both in and around it. After all, like the great Chinese philosopher Lao Tzu said, He who controls others may be powerful, but he who has mastered himself is mightier still

USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

BIBLIOGRAPHY 1. http://en.wikipedia.org/wiki/Power_%28philosophy%29 2. http://findarticles.com/p/articles/mi_m4035/is_1_45/ai_63018125/ 3. http://infosky.wordpress.com/2007/01/02/power-in-the-organization-a-short-note/ 4. http://www.enotes.com/business/q-and-a/why-power-important-organisation-136021

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USING VARIOUS BASES OF POWER FOR ORGANIZATIONAL ADVANTAGE

ownward. With downward power, a company's superior influences subordinate.1

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