Answer to Question #234189 in Management for Graylin Lapi

Question

Describe the dependence model of power and the five sources of power in organizations. 

Answer 1

Discussion

Power-dependence theory is the name commonly given to the social exchange theory originally formulated by Richard Emerson (1962, 1972a, 1972b). As the name suggests, the dynamics of the theory revolve around power, power use, and power-balancing operations, and rest on the central concept of dependence. Mutual dependence brings people together; that is, to the extent that people are mutually dependent, they are more likely to form exchange relations and groups and to continue in them. Inequalities in dependence create power imbalances that can lead to conflict and social change.

Five Sources of power in an Organization

1) Legitimate Power.

Legitimate power is also known as positional power. As these names suggest, legitimate power is the power that a person in the organization holds because of his/her position and that is considered to be legitimate. A manager who leads a team has certain responsibilities and also the right to delegate tasks to his/her subordinates as well as review their work and give feedback.

2) Expert Power.

Expert power is that kind of power which an employee has due to the knowledge and expertise that he/she possesses. Expert power also acts as a stepping stone for employees to gain legitimate power. A good and acceptable display of expert power will lead to promotions and make an employee indispensable for the company. The promotions will result in legitimate or positional power. 

3) Coercive Power.

Coercive power is the power that a person has which he/she uses to coerce or threaten other employees. Coercive power is used to enforce strict deadlines and punishable actions in the workplace and scare employees.

Salary cut, leave cut or even terminations are certain threats that are used by bosses to get the work done by their employees. Bosses need to be strict with their employees and are justified in expecting professionalism and timely completion of work. Coercive power, if used optimally can improve the performance of employees and make them challenge themselves constantly.

4) Referent power.

Referent power is power that is a resultant of the personality of a person. The relationships that a person develops with co-workers and the charisma with which a person is able to present himself/herself to others results in a certain level of respect and approachability towards that person. Referent power can also be a result of closely knowing senior people in the organization or those who are at a position of leadership and authority of any kind.

5) Reward Power.

Reward power arises out of the authority that a person has to recognize and reward people. Ways to do this can be by salary hikes, bonuses, paid leave, company sponsored vacation or even promotions. Employees who possess reward power can influence the performance of employees considerably.

If used, as a motivating factor, reward power can make employees work harder and smarter and contribute more effectively to the organization. But if this is used in an unfavorable manner and any kind of favoritism is displayed, then it can severely harm the morale of employees and reduce their productivity, leading to the wastage of company resources.

Reference

Emerson, R. M. (1962). Power-dependence relations. American sociological review, 31-41.