Here, we’ll look at the kinds of power you can find in an organisation.
Official and unofficial power
We can divide ‘power’ into two groups: official and unofficial power.
Official power
Official power is legitimate: it has been authorised by the organisation and its owner. It is sometimes called authority. Managers require formal authority so that staff will comply (obey).
Ultimately, the owner of the business has all the power, but gives enough to managers so that they can run the business. Managers in their turn give some of their authority to those they delegate responsibility to.
Unofficial power
Some power in an organisation is unofficial, or informal. In this case it is the result of strong personalities, friendships, special knowledge and skills and other qualities not recognised by the formal organisation.
Interpersonal power
Power can also be divided according to where it comes from or where it is based. Now we’ll have a look at seven interpersonal power bases.
1. Legitimate power
Legitimate powercomes from a person’s job and is similar to authority. It usually increases as a person moves up an organisation. Staff usually decide whether the power can be used: if they think the power is legitimate, they will comply.
example
Jo, a front-line manager, asked her staff come in early for a week to get over a backlog of orders. The staff saw this request as a legitimate use of power, and they complied. Later that week, she asked her staff to vote for her political party in a local election. In this case, staff didn’t see this as legitimate, and they did not comply. In fact, they got angry and complained to Jo’s boss.
2. Reward power
Reward power is a person’s ability to provide tangible rewards (for example, a good job assignment or a pay rise) or intangible rewards (for example, recognition or praise) to those who do their jobs well.
example
Ted uses cash bonuses and prizes to get his sales staff to meet their targets.
3. Coercive power
Coercive power is the ability to punish (or reward) someone.
example
Ted also uses fines to punish staff who don’t arrive at work on time.
4. Expert power
Expert power is the influence someone has because of their special experience or skills.
example
People who are experts in their fields, whether they have authority or not, can get the respect of colleagues. A staff member who has been in an organisation for a long time and who knows a lot about the industry might have expert power.
5. Referent power
Referent power comes from respect or admiration. This can be based on characteristics like intellect, size, beauty, personality, energy or reputation.
example
Advertisers sometimes use referent power. For example, a sports star who advertises toothpaste is being used for their referent power.
6. Information power
Information power is when a person has information (or access to information) that others think is valuable.
example
Personal assistants and executive secretaries often hold high information power in an organisation because they are trusted with information by senior managers and are often the first to know about plans and decisions.
7. Connection power
Connection power is based on a person’s connections with important people inside and outside an organisation.
example
If a filing clerk is the CEO’s nephew, he may have connection power.
How do managers use their power in the workplace?
Managers must be comfortable with the use of power (authority). Different people use authority in different ways, especially in leading others. Some delegate as much of it as possible. Others want to keep as much power as possible for themselves.
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