Organizational Power Let1 317.1.5-10

835 Words4 Pages
Organizational Power There is a tricky balance of power at Corporation A. It is obviously working, at least on some levels, because keeping a company alive for more than twenty years in today’s challenging economy is a great accomplishment. The problem states the company wishes to foster a team environment throughout the organization while helping clients improve their real estate sales. How do power and dependence have an impact on this type of environment? Each of the five bases of power, first introduced by noted social psychologists John French & Bertram Raven (French & Raven, 1959) are demonstrated in the scenario given. Legitimate power, which comes from the belief that a person has the right to make demands and expect obedience, is demonstrated by the accounting manager. The accounting manager exercises this by only allowing one member of his department to work a shortened work week and holding the rest of the department’s staff to a more traditional, and less desirable for most, five day work week. The accounting manager’s scheduling control is the base of this legitimate power. The second base of power, reward power, is held by the marketing manager. Reward power is the ability to compensate another for compliance. The rating on the yearly performance evaluation conducted by the marketing manager determines if Employee 1 receives their large annual bonus. This is clearly a powerful reward, as employees accustomed to receiving an annual bonus are likely to have it spent before it arrives. This very important financial incentive is the base of the marketing manager’s strong reward power. Next is expert power, based on a person’s superior skills and knowledge. This power is demonstrated by Employee 2. As the only CPA in the accounting department Employee 2 has proven their skills and knowledge to be superior. The knowledge that

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