BUAD-304 Final Study Guide

BUAD-304 Final - Chapter 14 Power and Politics Power refers to a capacity that A has to influence the behavior of B so that B acts in accordance

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Chapter 14 Power and Politics Power refers to a capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes. This definition implies a potential that need not be actualized to be effective and a dependency relationship. Power is that it is a function of dependency . The greater B’s dependence on A, the greater is A’s power in the relationship. Leaders use power as a means of attaining group goals. Leaders achieve goals, and power is a means of facilitating their achievement. Bases of Power There are two general groupings of bases of power – formal and personal Formal Power – is a based on an individual’s position in an organization. Formal power can come from the ability to coerce or reward. Coercive power – the coercive power base is dependent on fear. One reacts to this power out of fear of the negative results that might occur if one failed to comply. At the organization level, A has coercive power B if A can dismiss, suspend, or demote B, assuming that B values his or her job. People in an organization who have data or knowledge that others need can make those others dependent them. Reward Power – the opposite of coercive power is reward power. People comply with the wishes or directives of another because doing so produces positive benefits; therefore, one who can distribute rewards that others view as valuable will have power over those others. Legitimate Power – represents the formal authority to control and use organizational resources. Legitimate power is broader than the power to coerce and reward. It includes acceptance by member in an organization of the authority of a position. Personal Power – power that comes from an individual’s unique characteristics Expert power is influence wielded as a result of expertise, special skill, or knowledge. As jobs become more specialized, we become increasingly dependent on experts to achieve goals. Referent power is based on identification with a person who has desirable resources or personal traits. Referent power develops out of admiration of another and a desire to be like the person. One of the ways in which individuals acquire referent power is through charisma. Both expert and referent power are positively related to employees’ satisfaction with supervision, their organizational commitment, and their performance, whereas reward
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and legitimate power seem to be unrelated to these outcomes. Dependency The greater B’s dependency o A, the greater the power A has over B. Dependency is increased when the resource you control is important, scarce, and non-substitutional. Importance – the things you control must be perceived as being important. Organizations actively seek to avoid uncertainty. The individuals or groups who can absorb an organization’s uncertainty will be perceived as important. Scarcity
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This note was uploaded on 04/30/2008 for the course BUAD 304 taught by Professor Cummings during the Fall '07 term at USC.

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BUAD-304 Final - Chapter 14 Power and Politics Power refers to a capacity that A has to influence the behavior of B so that B acts in accordance

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