1. Organizational Psychology winter 2017/2018 Lecture 10 Jolanta Babiak
Power and influence
Organizational Psychology winter 2017/2018
Lecture 10
Jolanta Babiak

2. What is power?
Power is a capacity or potential to influence the behavior of others so that they act according to the wishes of a person(s) in power
Power is a potential – it can be used but doesn’t have to
A person A can have power over other person B as long as she’s (A) got something that person B desires
Important aspect of power is a function of dependence
Research on power focuses on tactics for gaining compliance
Where does power come from?

3. Formal power
Coercive power – is based on the fear of negative consequences for not complying: dismissing, suspending, demoting, unpleasant work, embarrassing comments, withholding information
Reward power – produces positive benefits if these are valued by the recipients: controlling pay raises, interesting work assignments, recognition, promotion
Legitimate power – represents the formal authority to control and use organizational resources as enabled by position held in organization; members shall accept the authority of a position

4. Personal power
Expert power – is based on the influence a person has due to his expertise, skill or specific knowledge; companies to great extent depend on experts to achieve their goals
Referent power – is based on identification with a person because of his possessions of desirable resources or personal traits; it develops out of admiration of another person – why are celebrities payed so much money to endorse products in commercials?
Expert and referent power are positively related to employee satisfaction with supervision, organizational commitment and job performance
Leaders in position of power pay greater costs for unfair/unethical behavior and are awarded greater recognition for success

5. Dependence
If someone is in control of something others require or desire they depend on the person who possesses it
If a person can rely on his own options the less he is dependent upon others; that’s why companies do not rely on one supplier but multiple; so many of us aspire to financial independence
Importance creates dependence – in companies these will be groups which control important resource, e.g. marketing department in P&C, engineering department at Audi
Scarcity creates dependence – e.g. when supply of labor is low relative to demand workers can negotiate better compensation and other benefits
No substitutability – the fewer substitutes for the resource the more power that resource has

6. Power tactics Legitimacy - relying on authority position
Rational persuasion – presenting logical arguments and factual evidence
Inspirational appeal – developing emotional commitment
Consultation – involvement in decision making
Exchange – functions as a reward for compliance
Personal appeal – compliance based on friendship or loyalty
Ingratiation – using flattery or friendly behavior
Pressure – using warnings and threats
Coalitions – recruiting others to have more persuasive power

7. Power and organizational politics
Using power to affect decisions in organizations
Attempt to influence the distribution of advantages in the organization
Political behavior lies outside of specified job requirements
Most managers think political behavior is a major part of organizational life
It’s possible for an organization to be politics free, but it is unlikely
Organizational politics behavior may be also labeled as effective management – depending on who speak: observer or maker
Two categories of factors contribute to political behavior: individual and organizational

8. Bibliography
Robbins, S. P., Judge, T. A. (2013). Organizational behavior. New Jersey: Person education, Inc.
Whetten, D. A., Cameron K. S. (2011). Developing Management Skills. New Jersey: Person education, Inc.