10-1

Power
- the capacity of a person, team, or organization to influence others.
Sources of power
1. LEGITIMATE POWER
-agreement among organizational members that people in a certain roles can request a set of
behaviors from others.
2. REWARD POWER
-ability of a person to influence the allocation of incentives in an organization.
3. COERCIVE POWER
-ability to apply punishment.

4. EXPERT POWER
-derived from possessing knowledge or expertise in a particular area..
5. REFERENT POWER
- power arises from charisma,

14-3

Organizational culture
- refers to the beliefs, ideologies, principles and values that the individuals of an organization
share.
Important functions of Organizational Culture
1. Control system
2. Social Glue
3. Sense making
Three important contengencies of organizational culture
1. Culture Content Alignment with environment
2. Avoiding a Corporate Cult
3. Culture is an Adaptive Culture