Power in Organizations

Overview

• Power is held by both individuals and groups.
• Individuals may respond differently to gaining power.
  • Altruistic Use: For the benefit of others.
  • Selfish Use: For personal gain.

Definition of Power

• Power refers to the potential of a person or group to influence another to do something they would not ordinarily do.
• Effective leadership is often driven by the need for power rather than just the need to achieve.

David McClelland's Findings

• McClelland emphasized the leader's need for power as crucial for performance.
• Key elements for positive power use:
  • Postponing Immediate Gratification: Avoiding impulsive actions.
  • Leadership Motive Pattern: High need for power with high impulse control and low need for affiliation.
  • Associated with high managerial performance.

Types of Power

• There are seven recognized types of power:
  1. Legitimate Power: Authority associated with a position.
  2. Reward Power: Control over rewards.
  3. Coercive Power: Control over punishments.
  4. Expert Power: Based on knowledge, skill, or ability.
  5. Informational Power: Control over information.
  6. Referent Power: Based on subordinate respect.
  7. Persuasive Power: Ability to use logic and facts to persuade.

Organizational vs Personal Powers

• Organizational Powers:
  • Legitimate, reward, and coercive powers.
  • Linked to organizational position; greater in higher organizational levels.
• Personal Powers:
  • Expert, informational, referent, and persuasive powers.
  • Depend on individual characteristics.