Running head: ORGANIZATIONAL POWER 1
Organizational Power
DB4
Liberty University
ORGANIZATIONAL POWER 2
Abstract
Power is an intangible force in organizations. It cannot be seen, but its effect can be felt.
Power also is an important part of all organized behavior. It exists in every corner of
organizations and affect every aspects of organization operation and interorganizational
communication. This paper includes a review and analysis of the classical concepts of
organizational power in management literature, a description of power basis, and research
findings on the crisis associate with power in organization. Then, the paper will introduce several
ways of power management and will cite how to use power as an effective tool for organization.
Keyword: Organizational power, Source of power, expert power, reward power, referent power,
legitimate power, cheap leader, hierarchical abuse of power, power sharing, maintain power,
conflict control.
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Organizational Power
Fairholm (2011) states that “power also is an important part of all organized behavior; It
characterizes all human interaction” (p. 14). Organizational power is an essential characteristic
of all organizational actions and affects every aspect of interpersonal communications in
organization. For organizations, the difference between proper and improper use of power is the
difference between success and failure, high and low productivity, motivation and
disillusionment (Fairholm, 2011). Singh (2011) also concludes the power in organization as,
“dedication to the power is not enough to make an organization successful; the absence of a
proper dedication results in poor organizational health and low productivity” (p. 166).
Definition. It is important to understanding what organizational power is. Draft (2012)
defines organizational power as, “the ability of one person or department in an organization to
influence other people to bring about desired outcome” (p. 531). Organizational power is a result
of structural characteristics, because organizations are large and complex system that may
contains thousands of employees and hundreds of departments. These departments and system
have their own hierarchy structure. For these departments, some positions have access to more
information and greater resources, or their performance and contribution to the organization are
more critical. So, organizational power reflect large organizational relationships, both horizontal
and vertical (Draft, 2012).
Power and management. Singh (2011) states that, “power is needed even to run the
most trivial functions of an organization or project” (p. 166). Power is a prerequisite for success,
inspective of people’s inner needs for power. The magnitude and direction of the exercise of
power is a function of the intentions and skills of the wielder. Organizational power is
consequently seen as a management resource, much like information and technical expertise,
ORGANIZATIONAL POWER 4
which are management resources in their own right. The judicious use and design of
organizational power is thus significant (Singh, 2011).
Power Basis. Elias (2011) states five major types of power in organization, they are
“reward power, coercive power, legitimate power, expert power, and referent power” (p. 269).
First, Legitimate power is the formal power and authority legitimately granted to the manager
under charter by the organization’s peers. This power is clearly assigned by written or verbal
contract, and it outlines the manager’s responsibilities. Second, reward power is the ability of the
manager to confer or withhold rewards such as money, privileges, promotion, or status.
Managers may use coercive power as a tool to mention their subordinates that he or she may be
deprived of something if he or she does not comply. Third, with expert power, employees
comply with the request of managers because managers are more knowledgeable than their
subordinates. With referent power, employees comply with the request of managers because
employees identify with the managers (Elias, 2011).
Crisis and problems with power. Power can brings positive effect to the development
and operation of organization if it has been well used, but the power also could bring negative
effects to organization itself, if managers abuse of the power. Knuth, R (2012) brought a new
definition, cheap leader, to someone who lack of leadership and abuse of power, “cheap leader is
flexible disposition, varying as fortune and circumstances dictate; cheap leaders exist at every
level of the organization” (p. 44). Cheap leadership is motivated by self-benefit and lust to the
power, especially reward power. Cheap leaders use power on the personal use of organization’s
resources foe private purpose and abuse power to his or her subordinate (Knuth, 2012).
Donald V and Brender Y (2013) state power is necessary for organization, but it must be
used responsibility, because of opportunities for abuse. They state one of the important power
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abuse, which is hierarchical abuse of power in most organizations. According to Donald V and
Brender Y (2013), “the hierarchical abuse of power is the organization managers can abuse
organizational members or the organizational itself through power, specifically on managers’
abusive exercises of power with subordinates” (p. 1337). Power exists everywhere in
organization, a power holder’s interpersonal exercise of power can result significant influence on
his or her subordinates, no matter what actions are inadvertently or intentionally. The
hierarchical abuse of power directly causes two results, 1) a power holder’s exercise of power
can increase or decrease others’ feelings of dignity and self-respect, and 2) the exercise of power
can contribute to or diminish subordinates’ job performance and acquisition of deserved rewards
(Donald V & Brender Y, 2013).
Power Management. It is important for managers and organizations to know how to
managing power and how to use their power effectively. According to Richard & etc. al, “power
is not an aberration in organizations, but organizational power is a natural consequence of their
structure with its specialization and limited communication” (p. 19). It is important for the
responsible development and exercise of power in order to aligning the organization with the
appropriate factors, resources, and opportunities (Richard & etc., 2012). McManus (2013)
provides several helps suggestions for managers to know the way to maintaining and managing
power. The first opinion is power sharing. McManus (2013) states that “Power sharing is a
strategy for resolving difference of opinions over who should have the power” (p. 29). Power
sharing theory does not address the struggle for power over employees and who should have
more power than whom but usually focus on the joint exercise of power. Power sharing can
provide minor groups independence and allowing them to form its own sovereign nation state.
One of the most important benefits of Power sharing is that it can be integrative by provide
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leaders power from each group who work cooperatively to make decisions and resolve conflicts
(McManus, 2013). An example about the use of power sharing in reality is Morningstar. Inc.,
which is an investment research and investment management firm. The Morningstar Inc. was
founded on a very different idea. It has no formal hierarchy, no bosses, few job titles, and offers
associates autonomy in choosing their work and negotiating roles within teams (Benz & etc.,
2013).
The second opinion is about maintaining power. McManus (2013) points out, “the
purpose of power is to maintain itself and to extend itself” (p. 31). One of the importance reason
of maintaining power is that people in power have a tendency to reject the discrepant
information, even they have been challenged. It is no wonder that changing circumstances may
causes those in power to lose that power. To avoid losing power, managers should go with the
tide of rapid changes in the political, economic and social environment, and understand how a
particular management style, or a particular set of actions harm their position and power base
(McManus, 2013). Engineering is an example to classify how to effectively develop and exercise
power, because engineers has many characteristics that tend to enhance power in organizations.
In the organization, engineers must establish themselves as participants in a wide range of
activities within the organization. Engineers usually focus on the use of teams in which
engineers can play a key role and link several different departments together in a problems.
Moreover, engineers often work to develop an effective network of communication throughout
organization in order to avoid isolation from others. Engineers must learn to use their unique
power, the control of resources of information and innovation, to establish their concerns as a
part of the organization’s dialogue. It is obvious that engineer is in a very strong position in
organizations, and they have power to force change in organization (Richard J, 2012).
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The third suggestion is about managing conflict. According to Rude C.E & etc. (2011),
“conflict is inevitable for leaders, and it exists at the root of some of their best ideas and at the
core of many of their worst failures” (p.1). Managers and leaders play important role in the
process of solve conflict, because leaders are leaders not because they have title and position, but
they are leaders because of what they do and how they do it. A good leader know how to use his
or her power to control and solve conflict and minimize the damage of conflict to the
organization. Leaders not only keep damage situations under the control, they discover any
possible options and solutions to prevent unseen and unknown conflict. A successful leader
requires thoughtful and careful understanding about the cause of conflicts, not the speed to solve
problems. A good leader know how to manage conflict effectively not only because conflict may
cause many problems to the organization’s operation, but also conflict can be an opportunity for
growth and a source of creative energy (Rude C.E, 2011).
Conclusion. Power and organizations are mutual exclusive in today’s business
environment. The development and normal operation of organizations rely heavily on power. If
managers have necessary knowledge about what power is and how to use it effectively, the
power would bring positive effect to the organization. However, the power also contains several
risks and crises to the organization, because the positive effect of the power to the organization
is based on the correct use; if managers’ abuse of the power, the organization may face serious
problems. So, power is a Pandora’s Box for both managers and organization, the organizational
power is a decision-making exercise for which the managers have to place organizational
interests above personal interests. It is only when the managers lead well that personnel will
enthusiastically follow and the organization will continuously develop.
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References
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