Page 318 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Unit 15: Power and Politics

Because power is an ability, individuals can learn to use it effectively. Influence is the process of Notes
affecting the thoughts, behaviour and feelings of another person. Authority is the right to
influence another person. It is important to understand the subtle differences between these
terms. For example, a manager may have authority but no power. He or she may have the right,
by virtue of his or her position as boss, to tell someone what to do. But he or she may not have
the skill or ability to influence other people.
Interpersonal source of power: Interpersonal sources of power involve the relationship between
the person who holds power and those who are influenced by him or her. Interpersonal sources
or power are further classified as:

1. Reward Power
2. Coercive Power
3. Legitimate Power
4. Referent Power and

5. Expert Power

15.1 Sources of Power in Organisations

There is much more to managing than simply taking charge. Even if employees settled for being
ordered around, attaining a competitive advantage depends on manager's skills at bringing out
the best in their employees. This enlightened view of management implies that power comes
not only from having a job that gives you the right to issue orders, but from other sources as
well. Managers therefore need to recognize multiple sources of power. These sources may be
interpersonal or structural.
Structural Sources of Power

The degree of power wielded by a particular group/individual also depends on the structure of
work activities and communications in the organisation. Figure 15.1 below shows a group's/
individual's power base on three variables: ability to reduce uncertainty, lack of substitutes and
centrality of activities to achieve organisation's objectives.
Figure 15.1: Structural Sources of Power

Uncertainty
Reduction (High)

Inter-group Power
Substitutability
(High)

Centrality
(High)

Source: David J Hickson, C Robin Hinings, Cynthia A Lee, Rodney H Schneck and Johannes M Pennings,
"A strategic Contingencies Theory of Intra-organisational Power," Administrative Science Quarterly 16
(1971) Page 216-229.
1. Uncertainty Reduction: Organisations must operate in the face of uncertainty about their
key resources: Human capital, raw materials, supplies and equipment, money and

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