Power Bases in Leadership - Research Paper Example

Module Power Bases in Leadership Contemporary complex organizations require proper leveraging of power in order to achieve organizational goals and objectives. As Bal et al. (5) argue, power is the ability to influence others, which leaders use to enhance the performance levels of their followers and to ensure their superiors and peers arrive at the best decisions. The traditional view of power in an organization revolves around the control that individuals at the tip of organizational hierarchy have. However, leaders of different levels within an organization have access to power, whose effective harnessing is key to organizational performance (8). The importance of power in the organizational setting justifies studies into it and its influences. This study seeks to establish the power bases in an organizational setting, discussing the different sources of power and how they can be leveraged to achieve success. Exemplification through case scenarios will be applied to critically discuss the source of power. The Importance of Power in an Organization: The very first argument for the importance of power in an organization stems from the historical role of work groups in human history. People have formed groups to execute tasks and accomplish given goals, which forms the basis of an organization. However, the success of such groups is to a considerable extent dependent on the interrelationship of the individuals making the team (Wheelan et al. 1). This relationship in an organization entails the dynamics between the leader, the followers and the environment created for the group. A wrong miscarriage of power as depicted by a toxic triangle consisting of destructive leaders with susceptible followers in abuse-conducive environments is a recipe for organizational failure (Padila, Hogan and Kaiser 176). For instance, the leadership within an organization may develop the habit of exploiting the workforce through the power vested in them. Poor pay, overworking and overt and covert forms of vertical violence among other actions from the leadership are manifestations of such abuse of power (Van Vugt, Hogan and Kaiser 178). The motivation, commitment and thus performance of the employees may wane under such circumstances and thus inhibit productivity. In case the productivity remains high, the increased informed consumerism of today’s market may lead to the products of the firm being shunned when it is deemed that they abuse their employees (Crane et al. 287). Thus, how an organization manages its power within the hierarchy determines the direction and success of the organization. Sources of Organizational Power: The important role of power within an organization leads to the need to establish the bases of power; the different types of power and how they are obtained. There are five general bases of power within an organization; legitimate/positional, reward, coercive, expert and personal power (Kinicki and Williams 138). The discussion will focus on each source of power, critically analyzing how such power can be leveraged for the benefit of the organization, pitfalls and recommendations on how to maximize this power successfully. Legitimate/Positional Power: Positional power arises when a leader occupies a legitimate position of authority. The power is positional in that it resides in the office held; leaders get this power through being appointed to fill the position (Bal et al. 7). The organization specifies the powers held by the individual in that position and how such an individual can direct the subordinates. The legitimacy of positional power arises from the formal nature of the position. Examples of positions that have power in the organization include managers and chief executive officers. Individuals in such positions hold different levels of power, increasing as people move up in the hierarchy (9). For instance, junior level managers may have the power to recommend a promotion or punishment, while the CEO may offer the last word on the matter. Like any other form of power, the holder of the position may choose to wield or not wield their power. Besides, different types of organizations execute positional forms; some may have positions in their hierarchy as a formality while others may be quite strict. An example of the latter case is in the military, where positional power as is inherent to the different ranks is closely monitored, known by all members of the camp and strictly followed. Leaders in such positions typically wield their power, while, in organizations such as software development firms, there may not be many differences between the leader occupying a position and the followers (Griffin and Moorhead 379). Studies in management reveal that the manner in which positional power is articulated crucially determines the success of the firm. Hence, different management styles for people in power have been established including the broad classification of authoritative and participative forms of leadership. Studies indicate that positional power practiced in a participative manner proves more rewarding to the organization and its stakeholders (Gitman and McDaniel 323). A manager may involve their subordinates in decision making processes while seeking their contributions and discerning their concerns, which are then taken into consideration. A CEO who makes consultations with the relevant stakeholders instead of instituting a policy in a top-down approach may end up with better results. Participative practice of positional power enhances teamwork within the organization, boosts morale and leads to success; Starbucks attributes their continued market leadership and enviable financial performance to participative leadership by those in various positions (Plunket, Attner and Allen 423). Hence, execution of positional power in a participative manner is recommended in organizations. Coercive Power: Coercive power exists in an organization when the employees have the perception that a leader has the potential to threaten their well being. When employees feel that a given manager can initiate disciplinary action on them, the manager bears coercive power on the employees (Griffin and Moorhead 380). Coercive power may also be psychological, where the manager is viewed as potentially belittling an employee before the rest of the workforce. Subtle forms of coercive power also exist; for instance, the manager may threaten to transfer an employee to an organizational department regarded as a dead end, minimizing the chances of career advancement and personal achievement (Kinicki and Williams 176). Different leaders may have different levels of coercive power, depending on the amount of perceived negative sanctions the manager may institute. The more serious and number of sanctions a leader may institute, the more the coercive power they bear. Leaders may or may not institute the negative sanctions just described depending on the type of management they prefer. For instance, authoritarian managers may take advantage of coercive power to get things done while their participative counterparts may shun this form of power altogether (Gitman and McDaniel 324). Coercive power may indicate that the subordinates are aware of the details of powers wielded by leaders. However, Griffin and Moorhead (379), however, argue that execution of coercive power may be accompanied by negative consequences including resentment and hostility from the employees alongside the possibility of legal consequences. Reward Power: Reward power arises when a leader can evidently grant or take away rewards from employees. The power to give or rescind rewards can be used by leaders to influence behavior, conduct and performance of the workforce (Daft 78). In this case, rewards may either be positive or negative; they are what an employee receives for their performance or conduct in their respective roles. Excellent work may be rewarded with benefits while poor work or misconduct may be rewarded with punitive measures on the employee. A leader can use their ability to offer or take away benefits such as perks, or institute or remove disciplinary action to influence their employees and thus wield power (Griffin and Moorhead 381). Examples of rewards valued by employees include perks and bonuses, salary raises, promotions, holidays and other desirable packages. To the employee, these rewards may form an essential part of their livelihoods- especially in difficult financial times-, or cater for wants beyond their budgets. Thus, a reward is an extra incentive to work harder, increase productivity and organizational loyalty. Theories of motivation reveal that such rewards- including monetary gains and power advances- form an integral part of what motivates individuals (Griffin and Moorhead 381). Rewards are used by numerous organizations around the world to boost the performance of employees; increase the employees’ commitment to their work, and above all, the organization in order to ensure retention; and to genuinely appreciate the efforts put in by certain members of staff. The use of rewards is an age-old and evidence-based method of influencing the performance of employees, and so long as the employees are not held hostage, practicing reward power is recommended. Managers with reward power ought to use it appropriately since it may be counter-productive. The leader should verify that the task being rewarded for has been executed to ensure the link between performance and subsequent reward is appreciated by the employees. The leader also needs to ensure that the reward is reasonable and feasible; for instance, an expensive holiday or a substantial bonus may strain the finances of the organization regardless of the employee’s performance. Problems may also arise when the reward is viewed as a bribe or as a way of requesting an individual to undertake an improper or unethical task. Reward power may lose the influence it has on the employees if they realize that the leader cannot deliver the reward. The manager also needs to research and ensure the reward they present is valued by the employees. This is because the employees may not be interested in the rewards being offered and thus will not be motivated to work towards them (Griffin and Moorhead 385). Expert Power: Expert power derives from bearing significant knowledge and information on a certain domain in most cases to a level which other employees do not have (Kinicki and Williams 177). The more valuable the expertise is and the fewer the sources that have it, the more the expert power wielded. Examples of expert knowledge include high level programming in a software development firm; a highly experienced and superb accountant in a firm; and a researcher whose experiential or natural performance is of high value to the research firm among others. Expert power differs from the previous three forms of power discussed- legitimate, coercive and reward- in two ways. First, while legitimate, reward and coercive power normally correspond with organizational formal authority; expert power may or may not be based on positions. Secondly, expert power may transcend authority, with junior employees bearing fundamental knowledge that is beneficial to the organization (Daft 83). Such expertise may be rare, natural, time-consuming to gain or even impractical and cost-ineffective to pursue by other employees. The senior management of a firm may decide the firm’s strategic agenda but depend on their juniors who have the expertise to execute such strategies and tasks (84). Individuals with expert power and aware of it may wield it in many ways; for instance, an individual may be aware that owing to his high expertise, he is a valuable part of the organization. The organization would not wish to lose such an individual to competitors, besides being likely to make the individual as comfortable as possible in order to motivate and retain them. For example, a firm may implement flexible working schedules, involve the individual in decision making and provide grants and even appointments in order to make the expert comfortable. Such an individual wields expert power in an organization. As any human resource manager would attest, a win-win situation between the organization and its employees is an admirable scenario. When expert power is leveraged properly, the employee and the organization may benefit at the same time as both their objectives and interests are met simultaneously. Proper leveraging here involves not taking the other party hostage and being conscious of the greater good. Using expert power to gain explicit favors or advantages may cause discord among other employees especially in light of the emphasis placed on equity and equality in the modern organizational setting (Griffin and Moorhead 379). Withholding information and refusing to share and train others is a wrong approach to wielding expert power. However, as long as the individual and the organization both benefit from the relationship, expertise is an excellent source of power within an organization. Personal Power: Personal power is one that resides in an individual regardless of their position or authority within the organization. In this case, other employees identify with the individual and find themselves persuaded by the nature of this individual (Kinicki and Williams 178). Personal power stems from the qualities of an individual that elicit respect, admiration and following from other individuals - peers and juniors. Such qualities include high levels of charisma, trustworthiness and dependability, excellent people skills, rapport and other ways of building strong relationships. Griffin and Moorhead (382) argue that personal power may inspire followers towards more loyalty and dedication in comparison to positional power. The reason for this is that the nature of the followers’ response, while employees respond to positional power out of necessity, personal power has greater influence since followers act out of choice. In positional power, the followers react as dictated by organizational policy while they react out of will to personal power (383). However, personal power may be lost in case the qualities responsible for it are lost - the followers have the freedom to yield or not to yield to personal power than they have in the formal positional power. Personal power can be discerned in action in an organization when an individual without a position is consulted by both senior management and peers as well as treated with respect by both. Positional leaders can also have personal power since it is based on qualities; they may have it easier to deal with employees and receive more respect than positional leaders without personal power. The individual wielding personal power has audience to his views and may have an influence on the formulation of policy and strategic direction of the company (Daft 84). However, personal power also has the potential to be problematic in an organization as the individual bearing it may use such power to influence employees against organizational objectives or the legitimate leaders. Hence, the view that all types of power should be properly managed is upheld. On the other hand, the organization may harness personal power to meet its strategic objectives. Having a powerful individual in sync with the organization’s goals may help to convince the rest of the workforce of the organization’s intentions and directions. This is because such followers look up to the given individual and trust them. Exercising Different Types of Power Simultaneously; Organizational setting also presents individuals with more than one source of power. For instance, a leader with positional power uses reward power and coercion to influence the behavior and performance of employees (Griffin and Moorhead 385). The legitimate leader may also have a wealth of information and expertise that makes them all the more powerful through expert power. The leader may also have personal power that makes it easy for them to influence employees. Individuals with expert power or personal power may be rewarded with positional power and thus wield multiple sources of power. Different combinations of power sources result in different levels of overall power. The matrix below shows different combinations of positional and personal power and their overall levels of influence: High Positional Moderate Power Strongest Power Weakest Power Moderate Power Low Positional High Personal Figure 1: Matrix of Positional and Personal Power (Source- Griffin and Moorhead 382). The matrix above shows that holding high positional and high personal power results in one having the highest overall power. Having high positional and low personal power would result in having moderate overall power, as will having low positional and high personal power. Lastly, having low positional and low personal power results in low overall power. CONCLUSION Power refers to the ability to influence other individuals, and thus forms a crucial aspect of the organization. Proper management and leveraging of power is a crucial determinant of the success of an organization. Abuse and misuse of power may result in detrimental effects to the organization while appropriate use is the key to meeting organizational objectives. There are five bases of power in an organization; legitimate, reward, coercive, expert and personal. Legitimate power arises from holding formal positions; reward power stems from the ability to give or take away rewards; coercive power arises from the perception of threat from a leader; expert power entails having beneficial expertise/knowledge that makes one useful to an organization; lastly, personal power arises from individual qualities that make the person admirable and respected in the organization. The manner in which these different sources of power are used in an organization determines how effectively the organization meets its objectives. Moreover, individuals may bear different types of power such as both positional and personal power. In such situations, the higher the levels of each power held, the more the overall power and influence held by the person in the organization. Works Cited Bal, Vidula et al. The Role of Power in Effective Leadership. CCL Research White Paper. Web. 27 Jan. 2012. Crane, Andrew, et al. The Oxford Handbook of Corporate Social Responsibility. 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