7Final Prep

7Final Prep - BUAD 304 – FINAL PREP I. POWER AND POLITICS...

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BUAD 304 – FINAL PREP I. POWER AND POLITICS WITHIN THE ORGANIZATION A. Power : This refers to the potential ability to influence others so that they would things that they would not otherwise do. B. There are two major forms of power: 1. Formal Power – This power is based on the individual’s position within the organization. These power bases, from which this type of power can be derived, includes: - Coercive Power : An individual reacts to this power out of fear of negative results that may occur if they fail to comply. - Reward Power : This is the opposite of Coercive Power. The ability to distribute rewards that others view as valuable, grants an individual power. - Legitimate Power : This power represents the formal authority to control and use organizational resources. Members of the organization must accept this position as one of authority. - Information Power : This power comes from access to and control over information. Individuals who have knowledge or wisdom that others need can make those others dependent on them. 2. Personal Power - This power comes from the individual’s unique characteristics. The bases of Personal Power includes: - Expert Power : This is power to influence others as a result of expertise, special skill, or knowledge that one possesses. AS the world has become technologically oriented, expertise has become one of the most powerful sources of influence. - Referent Power : This power is based on the identification with a person who has desirable resources or personal traits. This type of power develops out of admiration of another and a desire to be like that person. - Charismatic Power: This type of power is an extension of Referent Power, stemming from an individual’s personality and interpersonal style. C. Dependency : Dependency is one of the main drivers of power. The greater the dependency that exists, the greater the power one individual has over another. Factors that contribute to the extent of this dependency include: 1. Importance : to create dependency, the things that an individual control must be perceived as being valuable and important 2. Scarcity : A resource needs to be perceived as scarce in order to create dependency. 3. Non-substitutability : The more that a resource has no viable substitutes, the more power that control over that resource provides. D. How has Power-Dependency changed over time: 1910s- 1950s : During this period, Scientific Management and Efficiency was emphasized. Individuals who -1-
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could help the organization to be more productive had power. 1960s- 1970s : During this period, sales were emphasized. Individuals who could successfully market products and sell them had power. 1980s : During this period, expansion and the ability to finance growth were emphasized. Individuals involved in the Financial and Legal aspects of the organization held power. 1990s
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7Final Prep - BUAD 304 – FINAL PREP I. POWER AND POLITICS...

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