A. Formal Power: It is based on the position of an individual in an organization. Formal power is derived from either one’s ability to coerce or reward others or is derived from the formal authority vested in the individual due to his strategic position in the organizational hierarchy. Formal power may be categorized into four types which are as follows:
1.Coercive Power: The coercive power base is being dependent on fear. In an organization one can exercise power over another if they have the power to dismiss, suspend, demote another assuming that the job is valuable to the person like Mr. Parhi often uses it in our case.
2.Reward Power: The opposite of coercive power is reward power. Reward power is the extent to which a manager can use extrinsic and intrinsic rewards to control other people. Examples of such rewards include money, promotions, compliments, or enriched jobs like Mr Shah often uses it in our case.
3.Legitimate Power: The third base of position power is legitimate power, or formal authority .It stems from the extent to which a manager can use subordinates’ internalized values or beliefs that the boss has a right of command to control their behavior.
4.Information Power: This type of power is derived from access to and control over information. When people have needed information, others become dependant on them.For example, managers have access to data that subordinates do not have. Normally thehigher the level, the more information would be accessed by managers.
B. Personal Power: Personal power resides in the individual and is independent of that individual’s position. There are following three bases of personal power:
1.Expert power: Expert power is the ability to control another person’s behavior by virtue of possessing knowledge, experience, or judgment that the other person lacks. A subordinate obeys a supervisor possessing expert power because the boss ordinarily knows more about what is to be done or how it is to be done than does the subordinate.
2.Rational persuasion: Rational persuasion is the ability to control another’s behavior, since, through the individual’s efforts, the person accepts the desirability of an offered goal and a viable way of achieving it. Rational persuasion involves both explaining the desirability of expected outcomes and showing how specific actions will achieve these outcomes.
3.Reference Power: Referent power is the ability to control another’s behavior because the person wants to identify with the power source. In this case, a subordinate obeys the boss because he or she wants to behave, perceive, or believe as the boss does.
1.Coercive Power: The coercive power base is being dependent on fear. In an organization one can exercise power over another if they have the power to dismiss, suspend, demote another assuming that the job is valuable to the person like Mr. Parhi often uses it in our case.
2.Reward Power: The opposite of coercive power is reward power. Reward power is the extent to which a manager can use extrinsic and intrinsic rewards to control other people. Examples of such rewards include money, promotions, compliments, or enriched jobs like Mr Shah often uses it in our case.
3.Legitimate Power: The third base of position power is legitimate power, or formal authority .It stems from the extent to which a manager can use subordinates’ internalized values or beliefs that the boss has a right of command to control their behavior.
4.Information Power: This type of power is derived from access to and control over information. When people have needed information, others become dependant on them.For example, managers have access to data that subordinates do not have. Normally thehigher the level, the more information would be accessed by managers.
B. Personal Power: Personal power resides in the individual and is independent of that individual’s position. There are following three bases of personal power:
1.Expert power: Expert power is the ability to control another person’s behavior by virtue of possessing knowledge, experience, or judgment that the other person lacks. A subordinate obeys a supervisor possessing expert power because the boss ordinarily knows more about what is to be done or how it is to be done than does the subordinate.
2.Rational persuasion: Rational persuasion is the ability to control another’s behavior, since, through the individual’s efforts, the person accepts the desirability of an offered goal and a viable way of achieving it. Rational persuasion involves both explaining the desirability of expected outcomes and showing how specific actions will achieve these outcomes.
3.Reference Power: Referent power is the ability to control another’s behavior because the person wants to identify with the power source. In this case, a subordinate obeys the boss because he or she wants to behave, perceive, or believe as the boss does.
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