Power Bases in organizations -  Costs and Benefits of Using Power

Communicating with Internal and External Stakeholders

Communication and Impact Oriented Programme Management

 

See aslo  Perception and Personality in organizations     -  Power Bases in organizations - Costs and Benefits of Using Power  -  Organizational and Individual Change  ;  Organizational and Individual Change

Effective leaders tend to blend  position and personal powers and understand how each influences and expands the other.   Leaders use the power of their position when they hire, evaluate, discipline, transfer, demote or terminate people in the organization. Leaders use personal power when they direct, instruct, facilitate, explain, coordinate, delegate, support, or give and get feedback. 

There are several effects and consequences of the five types of social power outlined above. 

 

To begin, for all five types of power, the stronger the basis of power, the greater the power.  As illustrated in this slide, power can be based in organizational roles and in personal actions and attributes.

 

Second, for any type of power, the degree of influence may vary greatly, but in general, Referent Power will have the greatest range influence. 

 

Third, coercion results in less liking of the person and perhaps greater resistance. Reward Power results in increased attraction and low resistance.

 

Fourth, the more legitimate the influence attempt, the less likely it will produce resistance and likeability.  After all, sometimes a manager has to make tough decisions that require adherence from subordinates, but the decision is respected and followed when it is fair and without malice.

 

Reward and coercive power require surveillance.  You must be able to monitor employees sufficiently to know when rewards or punishment need to be given and if orders are being carried out.

 

Finally, power always resides in the receiver who has the choice of going along with an influence attempt.

 

Fourth, the more legitimate the influence attempt, the less likely it will produce resistance and likeability.  After all, sometimes a manager has to make tough decisions that require adherence from subordinates, but the decision is respected and followed when it is fair and without malice.

 

Reward and coercive power require surveillance.  You must be able to monitor employees sufficiently to know when rewards or punishment need to be given and if orders are being carried out.

 

Finally, power always resides in the receiver who has the choice of going along with an influence attempt.

 

See Politics, Power, and Influence

 

Evaluating “Power and You”

Now that you have read about the types of social power, return to the results of the activity “Power and You” and assess the kind of power you tend to prefer.  You may transfer your totals below.

 

Notice that columns a-e relate to reward, coercive, legitimate, referent and expert power, respectively.  Your lowest number indicates your favorite choice and visa versa.

 

 

Totals  _____a             _____b _____c             _____d _____e

           Reward              Coercive           Legitimate         Referent            Expert

 

            Now that you understand the nature of power, how would you, or would you, change the way you try to influence others?

 

 

  Costs and Benefits of Using Power

 

Balancing management and leadership functions clearly requires the use of all five forms of social power.  The question is not whether to use any of these five types of power; but, rather, the question for a leader-manager is when and why should certain types of power be exercised and how might I go about exercising my authority in the most appropriate ways.  In what follows, you are given a cost-benefit analysis of using each type of power:

 

 

Coercive power

Benefits

Costs

 

·  Effective for gaining obedience

·  Appropriate for disciplinary actions

·  Achieves quick results

 

·  Drains physical and emotional energy from user

·  Lowers task satisfaction of followers

·  Harms/destroys trust and commitment

·  Becomes less effective over time (must be repeated with greater force)

 

 

                                                                                 

Reward power

 

Benefits

Costs

 

·  Culturally sanctioned

·  An effective attention-getter for group priorities

·  Can enhance cooperation and a sense of self-worth

·  Can serve as an effective motivator

 

· Lower task satisfaction than with expert and referent power

· Not consistently linked with high task performance

· Escalating financial and material costs to provide higher and higher tangible rewards to offer

· Some groups have limited tangible rewards to give

· Ineffective if rewards are neither desirable nor attractive or if the wrong individuals are rewarded

 



Legitimate power

Benefits

Costs

· Culturally sanctioned

· Inorganizationals the weight of the whole organization

· Effective in gaining obedience

· Lowers follower task performance

· Lowers follower task satisfaction

· May become less effective over time

 

 

Expert power

Benefits 

Costs 

·  High follower task satisfaction

·  High follower task performance

·  Drains little, if any, emotional energy from user

 

· Takes a long time to develop

· Must posses the necessary knowledge and skills

· Not as effective in gaining obedience as coercion, reward or legitimate power, particularly in the case of misbehavior

· May not be effective if follower do not share the leader’s goals

 

Referent power

Benefits

Costs

·  High follower task satisfaction

·  High follower task performance

· Takes a long time to develop

· Can diminish if overused

· Must possess the necessary knowledge and interpersonal skills

· Not as effective in gaining obedience as coercion, reward or legitimate power, particularly in the case of misbehavior

 

 

Effective leaders, including change leaders, will likely need to influence using all five types of power.  The two forms of power that have the most positive effect on performance and satisfaction are expert and referent power.  There are times, however, when one will need to discipline using coercive power.  It is also important to note that the combination of legitimate, referent and expert power will allow a leader to exert significant influence.

 

A leader-manager is also someone who is seen as credible by both internal and external stakeholders.