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Organisation theory and management
SEMESTER 1
Ms. Neha Puri
LECTURE 3
m
MODULE 3
Interpreting the Organizational Reality
Definition
Person
A
Person
B
Person
Bs Goals
Person As power
over Person B
Dependency
The party exposed to power must be
dependant.
The powerful party controls something that is
desired.
There often exists a counter-power. e.g. a
powerful manager who controls rewards may
be dependant on the employee to achieve
his/her goals.
Position Power
Legitimate power
Reward power
Coercive power
Information power
Personal Power
Referent power
Expert power
Bases of power
The bases of power can be classified as follows:
Coercive power
The coercive power base is defined by French and
Raven as being dependent on fear. One reacts to this
power out of fear of the negative results that might occur
if one had failed to comply. It rests on the application, or
the threat of application, of physical sanctions such as
the infliction of pain, the generation of frustration through
restriction of movement, or the controlling by force of
basic physiological or safety needs.
Coercive Power
Coercive Power: the opposite of reward power: the
power that is based on fear of negative results.
The power to give or withhold punishment, such
as suspension, termination, or even the
withholding of praise and goodwill.
Reward power
The opposite of coercive power is reward power.
People comply with the wishes or directives of another
because doing so produces positive benefits; therefore,
one who can distribute rewards that others view as
valuable will have power over them. These rewards can
be anything that another person values. In an
organizational context, we think of money, favourable
performance appraisals, promotions, interesting work
assignments, friendly colleagues, important information,
and preferred work shifts or sales territories.
Reward Power
Legitimate power
In formal groups and organizations, probably the most
frequent access to one or more of the power bases is
ones structural position. This is called legitimate power.
It represents the power a person receives as a result of
his or her position in the formal hierarchy of an
organization.
Positions of authority include coercive and reward
powers. Legitimate power, however, is broader than the
power to coerce and reward. Specifically it includes
acceptance by members of an organization of the
authority of a position
Legitimate Power
Ones structural position
The power a person receives as a result of his or her
position in the formal hierarchy of an organization
The power to control and use organizational
resources to accomplish organizational goals.
Information Power
Information power is power stemming from
formal control over information people need
to do their work.
A sales manager who controls the leads from
customers inquiries holds considerable
power.
Expert power
Expert power is influence wielded as a result of
expertise, special skill, or knowledge. Expertise has
become one of the most powerful sources of influence
as the work has become more technologically oriented.
As jobs become more specialized, we become
increasingly dependent on experts to achieve goals.
So, just as physicians have expertise and hence expert
power most of us follow the advice our doctor gives us
so too do computer specialists, tax accountants, solar
engineers, industrial psychologists, and other specialists.
Expert Power
Informal power that stems from superior
ability or expertise (knowledge, skills &
abilities)
The perception by others that one has
superior judgment or knowledge on some
topics, often specialized in nature.
Influence is based on special skills or
knowledge
Referent power
The last category of influence that French and Raven
identified was referent power. Its base is identification
with a person who has desirable resources or personal
traits. If I admire and identify with you, you can exercise
power over me because I want to please you.
Referent power develops out of admiration of another
and a desire to be like that person. In a sense, then, it is
a lot like charisma . If you admire someone to the point
of modelling your behaviour and attitudes after him or
her, that person possesses referent power over you.
Referent Power
Informal power that stems from being liked, admired,
and respected.
Develops out of subordinates' admiration for leader
and his/her desire to model behaviour and attitudes
after that person. The person builds feelings of
support, liking, admiration, and respect with
subordinates.
Power of ones personality (charisma).
Importance of power
It is very important aspect and plays significant role in the
organisations. Its not only organisations but people in
the organisation also seek power. It is important for the
organisation and for its people due to the following
reasons and they are:1. Power helps in controlling the people and other
resources in the organisations so that they cooperate
and help to achieve an organisations current goals.
2. Power is used to engage in politics and influence
decision-making process. It helps in promoting new and
more appropriate organisational goals.
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POWER
Organizational politics may exist to
acquire the power .
POWER
FREEDOM
SUBORDINATE
S
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INFLUENCE&
ADVANCEMENT
SENIORS
High
None
Influence Sharing
Manager: leader
consults followers
when making
Authoritarian
decisions.
Power Manager:
Power Sharing
Manager: leader &
followers jointly
make decisions.
Power Distribution
Followers: granted
authority to make
decisions.
leader imposes
decisions.
Domination
Consultation
Participation
Delegation
Low
political behavior
High
Organizational factors
Reallocation of resources
Promotion opportunities
Low ambiguity
High performance pressures
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Unclear
performance evaluation system
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favorable outcomes:
Rewards
Averted
punishments
Decreased job
satisfaction
Increased anxiety
And
stress
Increased
turnover
Reduced
performance
Organisational politics
Attempts to influence others using discretionary
behaviours to promote personal objectives
discretionary behaviours neither explicitly prescribed
nor prohibited
Politics may be good or bad
for the organisation
POLITICS
Politics refers to the structure and process of the use of
authority and power to affect definition of goals, directions
and the other major parameters of the organization.
Decisions are not made in a rational or formal way but
rather through compromise, accommodation and
bargaining.
M. L. Tushman
Interplay between
leadership, authority,
influence and followers
How organizational politics is
related to leadership can be
better understood from the
fact that organizational
leadership occurs in the
context of groups, where
followers are influenced by
the leader to ensure their
commitment and voluntary
involvement towards
predetermined outcomes
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ORGANIZATIONAL POLITICS
According to Tushman , Politics refers to the
structure and process of the use of authority and
power to affect definition of goals, direction and
the other major parameters of the organization.
Decisions are not made in a rational way but
rather through compromise, accommodation and
bargaining.
In the words of Farrell and Peterson, Politics in
an organization refers to those activities that are
not required as part of ones formal role in the
organization, but that influence or attempt to
influence the distribution of advantages and
disadvantages with in the organization
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Organizational Politics
Open communication
Reduction of Uncertainty
Awareness
Effects of
Political
Behavior
Display loyalty
Manage your impression
Ask satisfied customers to contact your boss
Be courteous , pleasant, and positive
Ask advice
Send thank-you notes to large numbers of
people
Flatter others sensibly
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Be an effective decision maker. An effective decisionmaking process has these six characteristics
(1) It focuses on whats important;
(2) Its logical and consistent;
(3) It acknowledges both subjective and objective
thinking and blends analytical with intuitive thinking
(4) It requires only as much information and analysis as
is necessary to resolve a particular dilemma;
(5) It encourages and guides the gathering of relevant
information and informed opinion; and
(6) Its straightforward, reliable, easy to use, and flexible.
Decision making in management is an important skill and making the right decisions is essential. Every
manager should be looking to improve their decision
making skills.
The process of corporate decision making is of the
utmost importance for effective management. Your
decision making process in management must be
informed by expert knowledge and experience.
Decision making for managers is comprehensively
covered in the articles below and within them you will find
decision making tips and advice and examples of the
different types of decision making needed in business.
Thank You
Please forward your query
To: nehabajaj1984@gmail.com
CC:
manoj.amity@panafnet.com
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77
Thank You
Please forward your query
To: nehabajaj1984@gmail.com
CC:
manoj.amity@panafnet.com
78