UNIT –IV Presented By Senthil kumar.N

Today's Discussion Review of last class Sources of power 2UNIT IV O & B

POWER Ability to do or act; capability of doing or accomplishing something. UNIT IV O & B3

SOURCES OF INDIVIDUAL POWER The five sources of a leader’s power come from distinctly different sources. Here’s an overview: Expert Power: When a leader has significant domain knowledge/skills. E.g. an expert accountant influences how junior accountants go about their tasks Positional Power: Comes when a leader has a legitimately held position of authority. E.g. typically, the CEO of an organization has the highest positional power UNIT IV O & B4

Reward Power: Is evident when a leader can give, or take away, a reward. E.g. a leader can influence a follower’s behavior by awarding a bonus, or taking away perks Coercive Power: This is felt when a leader creates the perception of a threat. E.g. a leader has coercive power if her followers believe that she will initiate disciplinary action UNIT IV O & B5

Personal Power: Influence gained by persuasion. E.g. a manager may have to rely on nothing more than a friendly please and thank you for an employee to perform a task So now we will look at each of these sources of power and consider when they could be used, and when it’s not appropriate to use them… UNIT IV O & B6

STRUCTURAL SOURCES OF POWER Much of the attention directed at power in organisations tends to focus on the power of managers over subordinates. An additional perspective is that the characteristics of the situation affect or determine power. Important structural sources of power include knowledge, resources, decision making and networks. UNIT IV O & B7

Knowledge as Power: Organizations are information processors that must use knowledge to produce goods and services. The concept of knowledge as power means that individuals, teams, groups, or departments that possess knowledge are crucial in attaining the organization's goals. Intellectual capital represents the knowledge, know-how, and competency that exist in the organization. This intellectual capital can provide an organization with a competitive edge in the marketplace. UNIT IV O & B8

Resources as Power: Organizations need a variety of resources, including money, human resources, equipment, materials, and customers to survive. The importance of specific resources to an organization's success and the difficulty in obtaining them vary from situation to situation. The departments, groups, or individuals who can provide essential or difficult-to- obtain resources acquire more power in the organization than others. UNIT IV O & B9

Decision making as Power: The decision making process in an organization creates more or less power differences among individuals or groups. Managers exercise considerable power in an organization simply because of their decision making ability. Although decision making is an important aspect of power in every organisation, cultural differences make for some interesting differences in the relationship. For example, in Chinese organisation, decision making power was more decentralized in manufacturing firms than in service organizations. The reverse was true in British firms, with power being more decentralized in the service organizations than in the manufacturing firms. UNIT IV O & B10

Networks as Power: The existence of structural and situational power depends not only on access to information, resources and decision making, but also on the ability to get cooperation in carrying out tasks. Managers and departments that have connecting links with other individuals and departments in the organisation will be more powerful than those who don't have. UNIT IV O & B11

Bases of power : Etzioni identifies three basic resources of power namely, (a) coercion, (b) remunerative power, (c) normative power. UNIT IV O & B12

Coercion means the ability to manipulate physical sanctions including physical chastisement, forcible detention, to deprive a person of food, sleep and other physiological needs. Force is therefore required in order to obtain compliance. Examples of such organisations include jails, detention centres, concentration camps, and some psychiatric hospitals. UNIT IV O & B13

Remunerative power refers to the ability to manipulate material rewards and sanctions including salaries, wages, promotions and training. Utilitarian organisations engage in 'producing goods and services for sale in the market place. Material inducement is required to procure compliance. Such organisations include factories, hotels and commercial enterprises. UNIT IV O & B14

Normative power rests upon human need for approval and recognition. It refers to the ability to manipulate symbols including medals, gadgets, badges and certificates. Normative organisations are those whose mission is primarily idealistic or value-based. Such organisations include voluntary organisations and political groups, schools, universities and hospitals. The members of these organisations are highly committed. UNIT IV O & B15

According to Etzioni each form of power is associated with a particular form of involvement. Coercion is associated with alienation and hostility, remunerative power with calculative involvement and normative power with moral involvement. UNIT IV O & B16

POWER CENTER Power center is a person who is close vicinity of higher management and whom management trusts and takes feedback from. It is very important to understand the actual people who are powerful in the company these people may not be on very important designations but may be the source of information to the boss. UNIT IV O & B17

HOW TO USE POWER CENTER? There are two ways to use these people. 1) you should use to advertise your achievements and your plan to these people in a very discrete manner, which does not disclose the full plan but gives only hints. Discuss what you are doing and what you will do in the future with these people. Never ever criticize the company or your boss in front of these people 2). Pass on the negative information about your competitors to these people and thus defame your competitors tell them how others are giving loss to the company UNIT IV O & B18

THINGS TO REMEMBER WHILE TALKING WITH THESE PEOPLE Identify and select more than one power center Selectively disclose the things Make them feel important Never criticize the company or your boss Spend some money to power center UNIT IV O & B19

THANK YOU,,,,, 20UNIT IV O & B