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Chapter 8

BUS 272 Chapter Notes - Chapter 8: Organizational Commitment, Hierarchical Organization, Job Satisfaction


Department
Business Administration
Course Code
BUS 272
Professor
Zorana Svedic
Chapter
8

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272 CH8 POWZER AND POLITICS
Definition of power
- Refers to a capacity that A has to influence the behavior of B, so that B acts in
aodae ith As ishes
- Power makes people uncomfortable, but it also has positive influence within
organization
- Power satisfies the thirst for choice and choice quenches the desire for power because
each replenishes a sense of control
Bases of power
Formal power
- Based o a idiiduals positio in an organization
Coercive power
- Power that is based on fear
- Eg A has coercive power over B if A can dismiss, suspend, or demote B
- People in an organization who has data or knowledge others need can make others
dependent on them
Reward power
- Power that achieves compliance based on the ability to distribute rewards that other
view as valuable
- Eg financial or non-financial, eg recognition, promotions, interesting work assignments
Legitimate power
- Power that a person receives as a result of his position in the formal hierarchy of an
organization
- People will obey those who appear to have legitimate authority, even in questionable
circumstances
Personal power
- Coes fo a idiiduals uiue haateistis
Expert power
- The influence based on expertise, special skills or knowledge
- Become a powerful source nowadays as the world become more technologically
oriented
Referent power
- Influence based on possession by an individual of desirable resources or personal traits
- Develops out of admiration of another and a desire to be like that person
- Eg celebrities
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Information power
Responses to the bases of power
Response to the base of power:
- Commitment: the person is enthusiastic about the request, and shows initiative and
persistence in carrying it out
- Compliance: the person goes along with the request grudgingly, puts in minimal effort,
and takes little initiative in carrying out the request
- Resistance: the person is opposed to the request and tries to avoid it with such tactics
as refusing, stalling, or arguing about it
- Coercive power resistance and increased mistrust affect employee satisfaction
and commitment
- Reward power compliance if the rewards are consistent with what individuals want
- Legitimate power compliance, but not result increased commitment
- Expert and referent powers commitment employee satisfaction and
organizational commitment performance
- Most often used: coercive, reward and legitimate (but least effective)
Dependency: the key to power
- Dependence: Bs elatioship to A when A possess something that B requires
- The greater Bs depedee o A, the greater the power A has o B
- who eeds who? (the person who has most need is the one most dependent on the
relationship
- Eg within large organizations, the IT group often has considerable power, because
everyone (even CEO) is dependent on their technical expertise
- Dependence is inversely proportional to the alternative sources of supply (eg in the
iles of the supe ih, oey doest esult i poe
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What creates dependence?
Importance
- To create power, the thing you control must be perceived as important
- Varies among organizations and over time
Scarcity
- a resource must be perceived as scarce to create dependence
- eg how low-ranking employee gain power if they have important knowledge not
available to high-ranking employees;
eg the bargaining power of finance faculty allows them to negotiate higher salaries
because the market for finance professors is tight
Non-substitutability
- The fewer substitutes there are for a resource, the more power comes form control
over that resource
- Eg when a union goes on strike and management is not permitted to replace the striking
eployees, the uio has osideale otol oe the ogaizatios aility to ay
out its tasks
Influence tactics
- Operates up, down, and across the organizational hierarchy
- soft (personal sources of power)/ Hard (position power
1. Rational persuasion: using facts and data to make a logical or rational presentation of
ideas
2. Inspirational appeals: appealing to values, ideals, and goals when making a request
3. Personal appeals: appealing to loyalty and friendship when making something
4. Consultation: gettig othe ioled to suppot oes ojeties
5. Ingratiation: using flattery, creating goodwill, and being friendly prior to making a
request
6. Legitimacy: claiming the authority or right to make a request, or showing that it
supports organizational goals or politics
7. Pressure: using demands, threats, and reminders to get someone to do something
8. Coalitions: getting the support of other people to provide backing when making a
request
9. Exchange: offering favors or benefits in exchange for support
- Rational persuasion, inspirational appeals, and consultation are the most effective;
pressure is the least effective
- You can also use 2 or more tactics together to increase your chance of success
Factors that affect the effectiveness of influence tactics
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