COLLAB 2N03 Chapter 12: 1BA3 - Chapter 12.docx

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What is power: power is the capacity to influence others who are in a state of dependence. The other bases (reward, coercive, referent, and expert power) involve the control of important resources. Legitimate power derives from a person"s position or job in the organization. This is one reason why juries often fail to believe that top executive are out of the loop in ethical scandals. Coercive power: coercive power is available when the power holder can exert influence using punishment and threat. Like reward power, it is often a support for legitimate power. Managers might be permitted to dock pay, assign unfavourable tasks, or block promotions: coercive power is not perfectly correlated with legitimate power. Lower-level organizational members can also apply their share of coercion: when managers use coercive power, it is generally ineffective and can provoke considerable employee resistance. Referent power: referent power exists when the power holder is well liked by others.

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