Power and Organizations a Case Study Power

Power and Organizations a Case Study

Power and Organizations: A Case Study

Who is in charge is a huge element that determines the organizational structure of a company. Part of understanding this notion is examining the bases of power and the delicate balance between dependency and power. The bases of power are important in understanding the organizational structure of a company and how its leadership delegates authority over the subordinates and other members of the organization as a whole.

One of the most basic bases of power is that of coercive power. Here, the research describes coercive power as "the ability of a leader to punish those who do not conform to their ideas or demands" by withholding rewards or punishing those who are not obedient to the leader's demands (Tran, 2007, p 2). One major example of coercive power is the marketing manager's enforcement of forty-hour work weeks for everyone except employee 2 who is a CPA. This is not an issue that can be debated, and can be seen as a form of coerced power from the managerial voice that forces the subordinates to bend to this will.

Moreover, there is the notion of legitimate power. According to the research, "legitimate power stems from an individual's position within an organization and their right to require and demand compliance from subordinates" (Tran, 2007, p 2). This type of power is incredibly formal, and thus based on the structure of the organization and the leader's position within that organization. The individual who most represents the sense of legitimate power is employee 2. This employee has a Certified Public Accountant degree (CPA), and as such holds a certain formal power being the only individual within the organization that can compile financial statements and documents. As such, employee 2 wields that power to negotiate a shortened work week base don the fact the are in a position of formal power based on the place within the company and how much their work is needed within ongoing operations.

Then there is reward power. Essentially reward power is "based on the perceived ability of a superior to grant positive or remove negative consequences to those who conform to ideas or demands" (Tran, 2007, p 2). Out of the three individuals within the case study, it is employee 1 who obviously works the hardest. This individual puts in a lot of overtime, both at nights and on weekends. Due to this hard work, that employee is rewarded. The supervisor who granted the yearly bonus to employee 1 was using their reward power to reward employee 1 for the hard work that individual put in. This will not only encourage employee 1 to keep up the hard work, but it may also encourage other members of the organization to strive to work just as hard so that they can also receive financial rewards and recognition from the leadership within the company.

Another base of power is what is known as referent power. From this perspective, the leader holds power because they embody the coveted role of a role model, where people admire and respect their role and perspectives within the organization. From this respected position, the leader can command subordinates to follow their instructions based on that shared common respect. Regarding the case study, employee 1 can wield some referent power within the larger structure of the organization. Once again, employee 1 works incredibly hard, extending working hours ate into evenings and on the weekends, showing the respected position of a dedicated worker within the company. Moreover, the employee has been with the organization for twelve years, making them a huge part of what the company is today and putting them in a respected place of a seasoned and experienced member of the team.

Finally, there is expert power. This is a base of power which "is the power of knowledge" and is "based on the perception of the leader's ownership of distinct superior knowledge, expertise, ability, or skill" (Tran, 2007, p 2). Employee 2 is another example for expert power. This individual has the knowledge that no one else has within the organization, and as such wields a sense of power that allows the individual to avoid the forty-hour work week because of the expert knowledge in finances. Because of the expertise this employee has within financial knowledge, they gain a sense of power over all of the other individuals within the organization.