Understanding Power: Definition, Classification, and Its Significance

Meaning of Power

Bass and Stogdill defines power as – Power refer to a capacity that A has to influence the behaviour of B so that B does something he or she would not otherwise do. Power is the capacity or ability to influence the behaviour of others to get what you want. 

Power is the ability that a person may use to get others to do what he/she wants to be done. The nature of power is control over other people. In the organization, power of a person can be derived from interpersonal, structural and situational bases. Basically, interpersonal power is vested in a person as prescribed by the organization (i.e.; legitimate, reward and coercive) and by the person’s qualities (i.e.; expert and referent). While structural and situational powers (i.e.; resource, decision making and information powers) normally go by the hierarchy of the organization’s structure, that is, the higher the position of a person as structured by the organization, the greater is his/her power in accessing to resources, making decisions and having access to important information.

Power in the organization is that people are having the need for it. The differences are in the degree and intention; whether someone is having a high or low need for power, and whether the need for power is directed towards personal or organizational purposes. Power is important to many people as it can be meant for status and prestige, and also for promotion, leading and ruling. Anyhow, such intentions if not properly associated with the organizational purposes and directed goals, will not benefit the organization. Thus, the reality of power should be widely accepted that it is important to enable someone to contribute effectively to his/her organization. Wrongly application of power such as corruptions and other unethical actions are simply the problems generated by the attitude of people in using their power. Most of the problems of effectiveness faced by the organizations are created by improperly use of power by the managers. There are cases where the managers made in charge of businesses are lack in the required knowledge and skills. Without sufficient capabilities, these managers would not be able to utilize their powers professionally, thus contribute towards reducing the performance of the organization. for example – power refers to A’s ability to influence B not A’s right to do so, no right Is implied in the concept of power. A related concept is authority. The manager has authority the right to request that the sawyer cut lumber to certain specification. One the other hand the manager would not have right to request that the sawyer to wash her car.

Classification of power

1. Coercive Power: Involves forcing someone to comply with one's wishes. A prison would be an example of a coercive organization.
2. Utilitarian Power: Is power based on a system of rewards or punishments. Businesses, which use pay raises, promotions, or threats of dismissal, are essentially utilitarian organizations.
3. Normative Power: Is power which rests on the beliefs of the members that the organization has a right to govern their behavior. A religious order would be an example of a utilitarian organization.

Authority

Simon is well renowned thinker has defined authority as “Authority is the power to make decisions with guide the actions of another. It is a relationship between two individuals, one superior, another subordinate. The superior frame and transmits decisions with the expectation that will be accepted by the subordinate. The subordinate executes such decision and his conduct is determined by them”.

Authority in business organisation is defined as the legitimate power of a person to use and allocate resources and make and or give orders so as to achieve the organisational objectives.

Authority features

1. Existence of right in authority
2. Right of giving of order is legitimate
3. Objective behind the use of authority is to influence the behaviour of the subordinates in terms of doing right things at right time so that the organisational objectives are achieved. 

Power Vs Authority

1. Authority is the right to command. Power is the capacity to command (the right to command does not necessarily includes the capacity to command. For example – a person in the society may have capacity to influence the behaviour of others by his money power or muscles power but he may not have right to do so.)
2. Authority is legitimised by certain rules, regulations, law and practices while power may or may not be such legitimisation.
3. Authority is institutional and originates because of structural relationships. Power emerges because of personal factors and varies with the individuals. 

Power Importance

Power (Positional or Personal) is crucial factor in influencing the behaviour in organisations. Hicks and Gullett has compared power with electricity in a motor. (motor like an organisation), power is a force that makes organisation operate.

1. Necessary for coordinated activities
2. Basis for authority and responsibility

Bases or sources of power

Raven has identified power bases into two broad categories – Positional and Personal Power.

Positional Power 

It is also known as formal power. It emerges from the position that an individual holds in an organisation. The power of position remains the same irrespective of who holds the position. The positional power may include to give rewards, to impose punishment and to share information with others. Positional power may be four types:

1. Legitimate power – Legitimate power is the power based on an organisational position to exert certain rights of authority and decision making over others. The power that comes from one’s organisational role or position. For example – a boss can assign projects, a policeman can arrest a citizen (doing wrong), and a teacher assigns grades. 
2. Reward power – It is power granted to a manager or leader that allows them to give a reward to an employee as an incentive to improve. This power is based on old saying that ‘wealth is power’. Leader can use this power to keep their team engaged and happy at work. 
3. Coercive power – It is a type of power that uses threat, force or other forms of coercion to get the outcome. For example – threats of demotion, bonus cuts, salary cuts, loss of privileges, suspension, termination.
4. Information power – the power held by someone due to their ability to access to information. People in an organisation who have information that others need can make those dependent on them. For example – knowing price information gives a person information power during negotiations. 

Personal power

Personal power (informal power) and resides with a person regardless of his position in the organisation. Individual personal power emerges from his qualities that are unique. These qualities help him in persuading others to follow him willingly. Because of followers’ willingness an individual with personal power often can inspire greater loyalty and dedication in followers then someone who has only positional power. Three bases of personal power 

1. Expert power – Based on the famous proverb ‘knowledge is power’. It is a type of power that comes as a result of having deep, expert knowledge on a subject or situation. For example – Only 1 employee in department knows to run the machine or software.
2. Referent power – It is a kind of power or influence that comes from being liked or admired. It can not be forced or assigned. It is built on respectful interpersonal relationships rather than manipulation or coercion.  A leader who is liked, trusted and respected likely has referent power.
3. Charismatic power - charismatic power emerges from an individual charisma, a quality that is unique. Charismatic power is the ability of a leader to inspire and influence their followers through their exceptional personal qualities and their vision. For example – Mahatma Gandhi 

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Sandeep Ghatuary

Finance & Accounting blogger simplifying complex topics.

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