- Category: Business , Economics
- Topic: Corporations , Management
Power is a term that is often used, but its exact definition is elusive. Power is the ability of an individual or organization to influence others to act in a particular way. It is the capacity to accomplish tasks according to one's will. Power can be wielded by both formal and informal organizations and individuals; having an official role or institutional approval is not necessary. Influence can manifest in various forms, including changes in behaviour, ideas, or perspectives, resulting from one's connection with others. In the organizational context, power can affect virtually any decision.
Power and authority are sometimes used interchangeably to mean the ability to influence others. However, there is a distinction between the two. Authority is legitimized by the law and institutions, whereas power is personal and doesn't have legitimacy. Power is a significant factor that affects behaviour at all levels in an organization.
John R. P. French and Bertram Raven identified five types of power: legitimate, reward, coercive, expert, and referent power.
Legitimate power is conferred by an individual's position in an organization. Organizations grant people in managerial roles the power to direct subordinates' activities. A formal organization can create, modify, revoke, or grant a legitimate authority. The organizational structure identifies the degree of legitimate authority each position holds. Hierarchical organizations, for instance, delegate greater authority to higher-level roles. The degree of legitimate authority granted to an individual depends on the organization. Such organizations' power structures are well-established, and few people challenge them.
Reward power is the extent to which someone can control valuable rewards. With greater perceived value, such rewards hold greater power. Organizational remuneration comprises salaries, promotions, and important clerical roles. Managers who have complete control over such rewards bear significant power. Praise and approval are also sources of power for managers.
Coercive power arises when one has control over punishment, such as dismissal, suspension, demotion threats, or ways of embarrassing people. Managers can inflict psychological harm on their subordinates as well. The more the manager has sanctions at their disposal, the more aggressive they can be. Although coercion may produce short-term gains, it often leads to organizational resentment and hostility, harming the organization in the long run.
Expert power emanates from individuals' strengths rather than the organization's power structure. Professional power is exerted through experience, specialized skills, or knowledge. People who possess difficult-to-replace skills or knowledge hold power as they can withhold these from others. Subordinates respect and follow superiors who are competent and knowledgeable. As long as subordinates possess critical knowledge that their superiors lack, they wield greater authority.
Overall, understanding the concept of power and the types of power in organizations is crucial in effective management and organizational behavior.
How do power dynamics and politics affect leadership in organizational life? Every environment has its own unique internal system that is shaped by elements such as power struggles and political maneuvering. These factors hold significant influence over the function and behavior of an organization, often molding its development and impacting its overall environment.
In corporate and organizational contexts, power and politics can resemble those of traditional government structures. Power is distributed across different sectors within the system and multiple sources of power often compete for control. Internal politics within organizations can also lead to divisions, but these can be overcome by implementing compelling and unique organizational strengths and policies that greatly influence behavior.
Power struggles are a common occurrence in business and society alike. When individuals want something from others but are not willing to compromise, power and authority can be used (real or perceived) to persuade the other party. However, this approach is not effective and can lead to a toxic and stressful work environment, wasting precious time and escalating the situation unnecessarily. Office politics can force individuals to take sides, which can ultimately lead to turmoil and conflict.
The ability to navigate power struggles is a valuable skill in any industry. Regardless of the industry, businesses and individuals alike need to survive such struggles. However, once the dust has settled, the after-effects of such situations can impact anyone involved. Admitting one's feelings and those of others is essential in such scenarios. Open communication and mutual understanding can help resolve these conflicts and ensure a healthier work environment.
Sources:
1. Francis, A. (2014, February 5). Concept of power in management. MBA Knowledge Base. https://www.mbaknol.com/management-concepts/concept-of-power-in-management/
2. Manzoni, J. (n.d.). Power and politics within a business organizational. UniversalClass.com. https://www.universalclass.com/articles/business/power-and-politics-within-a-business-organizational.htm