1. Power & Organizational Life Chapter 13: 406-422 Organizational Behavior 261 Gabrielle Durepos

2. Reminders for Today Attendance Individual Assignment due now Check Moodle for the group composition –Posted under “Group Project Guidelines” Midterm exam is in 2 weeks –Worth 10% of your final mark Trudy Eagan Women in Business Speaker Series Presents: –Mrs. Margaret Franklin CFA, CEO and President of Kinsdale Wealth Management –Wednesday Oct 5 th –2.15PM – 3.30PM Auditorium SCHW 110

3. Outline Toward an understanding of power Perspectives of power: –Radical / Critical theory Resistance and Power Sources of power: –French and Raven –Morgan –Griener and Schein Exercise Conclusions

4. Toward an understanding of: Power Power –The ability to influence behaviors to lead to desired outcomes –The ability to get others to do what you want –Can be an action, structural, attribute, position, institution, relation –Can be enacted through politics (the application of power) –Can be enacted through resistance Rational definition of power dominates in OB literature –Illegitimate sources of power are seen in a negative light Different models of power –All highlight different aspects of power

5. Critical Theory Radical Perspective of Power 1/3 Focus on: –Power as domination and control of ideology Ideology as systems of meaning –Resistance Acknowledges a plurality of voices in the employment relationship –Power as domination and control through: Social Structures Work Structures –Example on next slide…

6. Critical Theory Radical Perspective of Power 2/3 Power in organizational / work structures –Traditional bureaucratic / hierarchal organizations Control lies in formal rules & structures –Self Managed Work Teams Before - scientific management –individuals work alone, compensation is based on individual performance Now – SMWT –If workers are organized into teams, compensation is based on team work, teams have a lot of autonomy over work design –Self managed = team create it’s own rules –Domination and control are seen through the development of shared belief system, norms & rules which are created and enforced by a team –But through abiding by team norms & standards - the team’s rules and system becomes just as strong than what was imposed on them from management

7. Critical Theory Radical Perspective of Power 3/3 Managers exercise hegemonic power –Hegemony the ability of one group to exercise influence over other groups over an extended period of time and create / sustain world views –Example of Hegemony: employment relationships in capitalist economic system Capitalism: is a powerful system that tell us that it is normal and acceptable to have rich and poor people Rich = own the means of production Poor = ARE the means of production; are a human resource meant to be “managed” Rich control the poor… control “what will count as ‘good’” Capitalism tells us this is normal – therefore the rich will continue to control the poor

8. Resistance and Power Resistance as: –Refusal to change, maintain status quo = INACTION –Changing the status quo = ACTION –Resistance can be: A response to power A form of power Many models of power do not acknowledge resistance –employee is seen as a passive enabler of the firms goals –View the employment relationship in unitary terms There is “one” view From the manager’s point of view Do not acknowledge employees as having an active voice & involved in the employment relationship

9. Sources of Power Refers to all the resources available to individuals –through which control or influence can be exercised We now turn to three theories which look at sources of power: 1.French & Raven Notice all the sources reside in the individual 2.Morgan Notice that the sources of power are more inclusive 3.Griener and Schein Notice that source of power is from either individual or department

10. Sources of Power: French and Raven Five sources of power: –Coercive “they have power cause they can punish us if we don’t comply” Dependent on fear and represents the application or threat of real or perceived negative sanctions Rank and performance appraisal systems –Reward “they have power cause they control our pay or promotion” Power resides in an individuals ability to distribute or withhold resources perceived as valuable Determining pay rates and promotions –Expert “they have power cause they have the skill set or knowledge” Power through possessing important skills or knowledge that provides direct value to an other department or individual –Legitimate “she has power cause she is the CEO” Power that resides in a formal position, represented through the hierarchy of the organization –Referent “he has power cause of his personality type” Derived from the personal characteristics of an individual An individual who can assess situations, handle them in a non-confrontational manner Charismatic authority Power holders can have more than one source available to them These sources are all akin to residing in individuals - Or some “thing” individuals “have”

11. Sources of Power: Morgan’s Typology 1/2 Highlights sources of power as: –Individuals –Interpersonal relationships Part of important relationships, access to knowledge –External to the organization –More systematic sources of power Management of meaning Possession of information

12. Sources of Power: Morgan’s Typology 2/2 These are only some of Morgan’s outlined sources of power: Formal authority –Legitimized power that is respected and acknowledged by those who are familiar with its source Authority one already has – ability to maintain or access information or influence Control of: –Scarce resources –Decision making –Knowledge and information –Technology –Counter – organization –Structures, rules and procedures within the organization Management of meaning: –Implications for gender; symbolism Ability to cope with uncertainty

13. Sources of Power: Griener and Schein Individual Bases of Power: –Knowledge Expert Information Tradition –Personality Charisma Reputation Professional credibility –Other’s support Political access Staff Support Departmental Bases of Power –Ability to cope with uncertainty –Substitutability / Indispensable –Centrality in the workflow Two bases of power: Individual and Departmental

14. Conclusions Most literature on power is limited to: –One dimensional model –Two dimensional model No one view of power will provide us with a complete understanding of the sources and implications of power relations for individuals and groups Must acknowledge and be CRITICAL of our assumptions