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BA 5201 Organization and Management Power and politics Instructor: Ça ğ rı Topal 1.

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Presentation on theme: "BA 5201 Organization and Management Power and politics Instructor: Ça ğ rı Topal 1."— Presentation transcript:

1 BA 5201 Organization and Management Power and politics Instructor: Ça ğ rı Topal 1

2 Authority Rationally based formal right to make decisions and influence behavior through instructions or directions to implement those decisions based on formal organizational relationships Based on private property ownership Associated with the responsibility to protect the interest of the organization and the owner 2

3 Managerial authority Right to make and enforce decisions Possessed by all managers Larger with the increase in the hierarchical level Based on the principle of parity of authority and responsibility 3

4 Staff authority Right to make suggestions and recommendations Possessed by everyone in an organization Based on the assumption that individuals should know best about their jobs Not exercised much in practice 4

5 Situational authority Right to make binding decisions within a very restricted area or scope Containing elements of both managerial and staff authority Delegated to an expert staff by a manager 5

6 Operative authority Right to determine certain components of the work and to work without undue supervision Regarding specific tasks and duties and work conditions Applying to all levels Supposed to be reasonably exercised 6

7 Power Potential or actual ability to impose one’s will on others Ability of one person to affect the behavior of someone else in a desired way Influence that does not necessarily depend on but nevertheless may extend from formal organizational relationships Not necessarily reflecting hierarchical relationships Based on single individual characteristics or dependency relationships 7

8 Individual bases Rational or legal or traditional power Acceptance that its exercise, by another person, agrees with some set of rules or laws or traditions considered legitimate by both parties Called legitimate power Function of culture when tradition-based Identical with authority when rule- or law- based 8

9 Individual bases Reward power Ability to control and dispense benefits to others Ability to shape the behavior of others by the act of dispensing or withholding benefits Based on the size of the reward and the belief that it will be dispensed Depending on the measurement of the behavior to be rewarded Indicating a dependency relationship 9

10 Individual bases Coercive power Ability to coerce into something or punish another person Effective to the extent that punishments are considered as punishing actually, strong enough, and likely Depending on the measurement of desired behaviors or task accomplishments Changing behaviors Potentially leading to avoidance and estrangement 10

11 Individual bases Referent power Identification with a person in a power position Not depending on explicit recognition Indicating role modeling Observed in hero worship or master/apprentice relationship Creating strong commitment 11

12 Individual bases Charismatic power Influence or power based on one’s personality Involving no special effort Helping followers attain personal goals Possible to involve referent power Indicating leadership qualities Easily attracting others Retained long after loss of official power positions or life 12

13 Individual bases Expert power Based on knowledge or special skills or academic and professional credentials Irrespective of hierarchical positions Involving a dependency relationship 13

14 Dependency bases Control of resources Power of individuals or departments who control critical or scarce resources within an organization Influencing organizational decisions through control of resources 14

15 Dependency bases Solving critical contingencies Power through possessing and using information, knowledge, and special skills Solving key problems facing an organization or reducing uncertainty Depending on the degree of pervasiveness of threats or uncertainty 15

16 Dependency bases Substitutability Power of individuals and departments with non-substitutable or difficult-to-substitute skills, expertise, and resources Outside availability and insiders’ loss of power New dependency relationships with outsiders 16

17 Dependency bases Location in the organization Being located near power sources Controlling the availability of decision-makers Network centrality and access to critical information 17

18 Dependency bases Position in the organization Power based on formal dependency relationships between hierarchical levels Emergence of informal dependencies Scarcity of expertise at middle and lower levels due to downsizing Reliance on sophisticated new technologies used by lower levels Longer organizational tenure Vacuum created by a transition in leadership Following organizational rules strictly 18

19 How to assess power Power determinants Consequences of decisions made by various organizational actors Power symbols Representational indicators of power 19

20 Dominant coalition in power Group holding extensive power and authority that may be separate from formal power Key group of decision-makers In-group members 20

21 Stickiness of power Individuals or groups trying to retain power as long as possible Transition of power problematic and costly Existing dominant coalitions reframing problems in line with their competencies New coalitions emerging and struggling for power 21

22 Politics and power Different groups different interests and goals Stakeholder-specific effectiveness Uncertainty and bounded rationality Dissociation of formal and informal power Organizational politics: those activities taken within the organization to acquire, develop, and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty or a lack of consensus about choices 22

23 Rational vs. political organizations Agreement on goals vs. multiple and conflicting goals Compatibility vs. incompatibility between formal and informal power, and centralized vs. decentralized power Low to moderate uncertainty overcome by more information vs. extensive uncertainty resulting in power games with information Rational-economic decision-making vs. bounded rational decision-making 23

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