Precarious profits? Why firms use insecure contracts, and what would change t...
Understanding Types and Consequences of Power in Organizations
1. It takes place when someone in higher
authority threatens a subordinate with
different punishments if certain tasks or duties
is not performed or completed in time and
correctly.
This power is conveyed when through fear of
being demoted, losing one’s job, or receiving a
poor review of performance. It is gotten
through threatening others.
TYPES OF POWER
1. COERCIVE POWER
2. It comes from having a position of power in an
organization; example is being a boss in the
organization or a key member of a leadership
team.
It exist when subordinates of someone in
authority obeys orders given to them they
believe that the person is in a position of
power to be able to give them such orders.
2. LEGITIMATE POWER
3. The subordinates are rewarded and
given incentives for carrying out tasks
and orders given by a superior.
Rewards include promotions, bonuses,
increase in salaries, extra-time off from
work, public praise, and so on. The main
aim of reward power is spurring up
subordinates for effectiveness and
productivity.
3. Reward power
4. The power comes from being
respected and trusted.
Leaders in the business industry have
gained referent power by entrusting
their employees with so much tasks
and responsibilities in performing
their jobs.
4. REFERENT POWER
5. This is a type of power that comes
from one’s skills, knowledge and
experience.
People naturally respect and follow
those who are experts in a certain
field.
5. EXPERT POWER
6. A very common attribute of power is that the
wielder of power has the ability to coerce the
target into compliance through the threat of
some kind of punishment. The basic transaction
is hence ‘’DO AS I SAY OR ELSE I WILL HARM
YOU IN SOME WAY’’.
The person is then faced with the choice of
obedience or suffering the consequence that
the powerful person can create.
CONSEQUENCES OF POWER
1. PUNISHMENT
7. Prevention in business situations could be
loss of cooperation or stopping the
person from getting promoted.
It is also seen in gateway roles, for
example a personal assistant who has the
power to allow others to speak with their
manager or turning the target person
away.
2. PREVENTION
8. There is also consequence for the person
wielding power. Sometimes use power
of power leads to gaining more power
dominated person becomes cowed and
hence easier to persuade in future.
Sometimes the use of power has the
effect on the balance of power in the
future.
3. POWER LOSS
9. Power creates harmonious and enduring inter-
organizational exchange relationships.
Power can take the relationship out of the
realm of chance and give it purpose, order, and
direction.
Power can have a positive role in the
achievement of integration, Adaptation, and
goal attainment within the channel system.
SOME POSITIVE CONSEQUENCES OF
POWER
10. Power can help to promote common interests
and collective goals within the relationship, as
well as enhance a friendly and constructive
atmosphere
Power helps to increase financial and social
benefits, through.
Power can be regarded as a mechanism for
coordinating social interactions effeciently and
allows relatively stable relationships to
develop between cooperating social actors.
11. Power can be used by the focal
actor as an effective tool in
coordinating and promoting
harmonious relationships, solving
conflicts, and, therefore ,enhancing
the performance of the whole
network as well as its individual
members.
12. Power negates cooperation
More powerful actors attempt to
control the resources of the less
powerful actors.
When one party is threatened b y
the imbalance of power.
Power will exploit the other party
Power as the antithesis of trust.
SOME NEGATIVE CONSEQUENCES OF
POWER
13. 1. The following statements best describes the nature of power
EXCEPT:
a. it is the ability to implement one’s will
b. Is the fundamental concept of social science
c. Is an escapable feature of human social life and structure
d. none of these
2. The ability to do something on one’s own is referred to as
_______.
a. ‘’power over’’ b. ‘’power to’’ c. ‘’power with’’ d. ‘’power of’’
3. The type of power that makes person to be respected due to his
or her skills and knowledge.
a. Coerceive power b. expert power
c. Legitimate power d. reward power
MULTIPLE CHOICES: Choose the letter of the best
answer.
Instruction: Choose the letter of the best answer.
14. 4. One of the attributes of power is that the person
exercising power can urge the target into compliance
through threat of punishment. The transaction that best
describes this attribute is _______.
a. ‘Do as I say or else you will not get what you want’
b. ‘Do as I say or else I will harm you’
c. ‘Do as I say or else you will forever feel the guilt’
d. ‘Do as I say or else I will be harmed ’
5. This power is usually comes from force and threat.
a. ‘’power over’’ b. ‘’power to’’
b. c. ‘’power with’’ d. ‘’power of’’
15. From personal experience, cite 3 examples of situation that
shows exercise of power and its consequence. Identify if it is a
consequence and explain why.
Activity 1
Situation that
shows exercise of
power
Consequences Positive or
negative
Why is it
considered as
positive or
negative
1.
2.
3.
