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Chapter Eight – Power, Authority and Politics in Organization

Authority and its Distribution
What is Authority?
Authority is the right to command resources of organizations or the right to give orders within a
given hierarchy to exact obedience. A manager derives authority by virtue of his position as
manager. By virtue of his authority, the manager acquires the right to decide, to act and to
command the persons working under him. Thus, all organizational members have responsibility
to carry out the best of their abilities, the duties that their superiors assign to them and the
functions of their positions. In other words, authority is the set of rights that enables members to
discharge their responsibilities and it can be viewed from different perspectives. This
perspectives are called authority theory. To mention

1. Classical authority theory (Top-down theory of authority)

According to the classical view, authority originates from a very high level then it is lawfully
passed down from level to level. At the top of the hierarchy may be God or the state. This is
known as top-down authority. It supports the principle of scalar chain or organizational
hierarchy. In this theory, authority flows from top to bottom through various levels of
hierarchy.The military has long operated on this view.
According to classical authority theory authority flows from the Board of Directors to managing
Director, to general managers, to middle-levelmanagers, lower-level managers, supervisors and
finally to workers. "very subordinate acceptsthis authority and obeys instructions issued by the
superiors. Disobedience is followed by coercive measures to demand obedience. This authority is
derived by virtue of position in the organization when that person leaves the organization, he
loses the authority to issue of instruction also. The flow of authority is governed by the process of
delegation. And each level in scaler chain can exercise only that much authority delegated
through superiors.
2. Legal/Formal Authority
According to this theory authority is based upon the rank or position of the person and this
authority may be given by law or by social rules and regulations protected by law. Law has
granted authority to a policeman to arrest person committing a crime. The chief executive of a
company may take action against an employee for not complying with rules because company
rules have given this authority to him. This authority is called formal authority which is given in
the bureaucracy also i.e., where authority is bestowed upon contractually hired and appointed
officials.

3. Traditional Authority Theory

In a family system, father exercises traditional authority over members of the family. It is the
father who guides the activities of the family and others obey out of respect and traditions. In
traditional form of authority there is no formal law or structured discipline and relationships are
governed by personal loyalty and faithfulness rather than compulsions of rules and regulations
or duties of the office. Elders in the society have rights to command, etc

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4. Competence Theory
According to this, authority has its source in the technical competence of the superior. The
manager, according to this theory, has no authority but his words are heard and orders are
obeyed only because of his intelligence, knowledge, skill competence and experience. If he has
no skill or knowledge, he can exercise no authority on others.
When a doctor advises rest to a patient, he accepts his advice because of doctor’s knowledge and
not because of his formal authority or legal right. The patient will get relief only if he obeys the
doctor. Similarly, we accept the diagnosis of a car mechanic without questioning it because of
his competence for this work. So the knowledge or competence of a person gives him a status
where his authority is accepted by others.
5. Charismatic Authority Theory
The charismatic authority rests on the personal charisma of a leader who commands respect of
his followers. The personal traits such as good looks, intelligence, integrity, etc., influence others
and people follow the dictates of their leaders because of such traits. The people follow the
leader because they feel that he will help them in achieving their goals. The charismatic
leaders are generally good orators and have hypnotic effect on the followers. Aand actresses
have been successful in raising huge funds for calamities etc. because of their charismatic
personalities. Even political parties associate actors and actresses with them to collect crowds
for their rallies. People follow some leaders/persons because of their charismatic personalities
and not because of any other factor.
6. The Acceptance Theory
This theory was popularized by Chester Barnard. Management theorist Chester Barnard
believed organizations need to be both effective and efficient. Effective means meeting
organizational goals in a timely way. Efficient, in his opinion, means the degree to which the
organization can satisfy the motives of its employees. In other words, the organizational goals
will be accomplished and authority will be accepted when workers feel satisfied that their
individual needs are being met. This is known as the acceptance theory of authority. It is also
known as bottom-up authority. It is based on the premise that authority does not flow from top to
bottom but flows from bottom to top. It implies that superiors can exercise authority only if it is
accepted by the subordinates. Acceptance view of authority finds the basis of authority is the
influenced rather than the influencer. The acceptance of authority by subordinates, thus, vests
management with authority. The flow of authority takes the form of request by top managers. If
this request is accepted by subordinates, managers exercise the authority, and if subordinates do
not accept it, no authority is exercised by managers. This view says authority of management is
only to the extent of which subordinates are willing to accept.
Acceptance theory of authority states that a manager's authority rests on workers' acceptance of
his right to give orders and to expect compliance. Workers have to believe that the manager can
legitimately give orders and there is legitimate expectation that the orders will be carried out.
Bernard observes that a subordinate will accept an order if:
 He understands it well
 He believes it to be consistent with the organisational goals
 He feels it to be compatible with his personal interest.
 He is fit (mentally and physically) to comply with it.

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The subordinates may accept order if they gain out of its acceptance or lose out of its non-
acceptance. It can be said that acceptance of on order is the function of advantages from it. The
acceptance theory, though supporting the behavioural approach to management, brings many
problems in organisation. It undermines the authority and the role of a manager in the
organisation. He may not be sure whether his orders will be accepted or not. He will know if
only when his orders are actually implemented. It means that orders flow from bottom to
upward. If the subordinates do not accept the orders of a superior there will be no use of
exercising authority

Types of Authority
1. Line Authority: defines the relationship between superior and subordinate. It is direct
supervisory relationship. Line authority is represented by the standard chain of command
or it flows downward in an organization directly from superior to subordinates.
2. Staff Authority:-is advisory in nature. Managers whose role is to provide advice or
technical assistance are granted advisory authority. Staff authority is not providing any
basis for direct control over the subordinates or activities of other departments with whom
they consult. (Within the staff managers own department he or she exercises line authority
over the department’s subordinates.”
3. Functional Authority:-The right to control activities of other departments as they relate to
specific staff responsibilities is known as functional authority. It is authority delegated to
an individual or department over specific activities undertaken by personnel in other
departments. Staff departments may be given functional authority to control their systems
procedures in other departments. For example, Audit department has legitimate authority
to control and regulate the activities of other departments such as finance, inventory etc,
(Here it can be considered as both expert and legitimate power), and Personnel
department has legitimate power to control recruitment, selection performance appraisal
system with in other departments.
Staff - Line relationships

Line authority Staff Authority

General Manager

Legal Research &dvtddDdeDevelopment

Marketing Finance Production

Staff and functional r/ship

Line Authority Functional Authority

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President

Marketing Personnel Finance

Credit Funds Acquisition

Advertising Sales

Power Vs Authority
Many scholars argue that terms power and authority are synonymous, but the words are only
related to each other. Power comes from the Latin word potere, which means "to be able." But
things with power are much more than able — they're able to exert a lot of force. "The powers
that be" are those who hold authority, and "the power behind the throne" refers to the people
who exert influence without being formally in charge. Power is the ability to exert influence on
other people; power can be present in any relationship. Still, managers are not the only people
who can exert influence at organizations. Employees say and do things to influence managers.
Authority on the other side only holds functional with relationship within organizations.

The Sources of Power

Power does not drive simply from an individual’s level in the organization hierarchy. The source
of power may be present in a variety of human relationships. In an organization, each may occur
at all levels. French and Raven, researchers at the University of Michigan, identified five
bases or sources of social power in 1959. Before diving into the different bases of power,
it’s important to understand that they are not all equally effective. Some types of power may
oblige your employees to comply with your demands, but they will fail to win employees’
support. Nonetheless, these types of power can sometimes be useful in situations that
require disciplining an employee.
Other types of power are more influential. They help you gain the support and commitment
of your employees, leading to better outcomes for your organization. By understanding the
different types of power, you will know which ones are most likely to give positive results.
You will also know which power bases you should avoid relying on too heavily. A great
leader knows how to draw on different types of power depending on the situation at hand.
Mainly these powers con come from two forms formal Power: Reward Power, Reward Power
and Legitimate power and personal power: Expert Power and Referent Power. The following are
among sources of power.
 Reward Power: - is based on one person (the influencer) having the ability to reward
another person for carrying out orders or meeting performance requirements which may
be expressed or implied. Reward power is conveyed through rewarding individuals for
compliance with one’s wishes. This may be done through giving bonuses, raises, a

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promotion, extra time off from work, etc. For example, the supervisor who provides
employees comp time when they meet an objective she sets for a project.
 Coercive power: - based on the influencer ability to punish another individual for not
meeting requirements. It is virtually the opposite of reward power. Coercive power is
conveyed through fear of losing one’s job, being demoted, receiving a poor performance
review, having prime projects taken away, etc. This power is obtained through
threatening others. This type of power can be used to set high expectations for employee
performance. Leaders can use coercive power to establish innovation as part of their
employee’s responsibilities if people aren’t able to come up with new and inventive ways
of doing things, then they might get replaced with someone who can provide that value.
 Legitimate power: - (formal authority) exists when employee or influence acknowledges
that the influencer is entitled to exert influence within certain bounds. The right of a
manager to establish reasonable work schedules is an example of "downward" legitimate
power. A plant guard may have the 'upward' authority to require even the company
president to present an identification card before being allowed onto the premises.
Simply, legitimate power is the power which is derived from a person’s official position
in an organization.
 Expert Power: - is based on the perception or belief that the influencer has some relevant
expertise or special knowledge that the person being influenced doesn't. As we gain
experience in particular areas, and become thought leaders in those areas, we begin to
gather expert power that can be utilized to get others to help us meet our goals. For
example, the Project Manager who is an expert at solving particularly challenging
problems to ensure a project stays on track. When we do what our doctors tell us we are
acknowledging their expert power.
 Referent Power:- is based on the identification of an individual with who is held in high
esteem, admired, and often imitated by the subordinates. Referent power comes from
being trusted and respected. We can gain referent power when others trust what we do
and respect us for how we handle situations. Charismatic managers usually have this
power.

Leading Teams through Transformation

We live in the age of agility, meaning that businesses either must adapt or fall behind. You can
change your processes, upgrade your tech, and increase your market visibility as much as you
like, but if these changes aren’t backed up by the people at your company, your efforts will
inevitably fall short.
It’s up to leaders to make sure that their organizations can keep up with these changes by
driving cultural transformation alongside all other transformation efforts. This is best done by
strong leadership who aren’t afraid of using their power for the good of the company and who
care about empowering employees across the business to grow and innovate.
Being cognizant of how leadership’s power effects their employees is a great first step but needs
to be followed with a commitment to change. And for this change to make the biggest impact, it
needs to involve each and every employee in your company
The power system is a network which consists generation, distribution and transmission system.
It uses the form of energy (like coal and diesel) and converts it into electrical energy. The power

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system includes the devices connected to the system like the synchronous

generator, motor, transformer, circuit breaker, conductor, etc.

Additional types of power to influence others in Leadership

A leader's influence can determine how well common goals are met in the workplace. This power
is a fundamental tool used by great leaders. The type of power used varies from person to person
based on environment, personality and skill. In this, we define what leadership power is and the
additional types of power in leadership.
Leadership power is the influence that leaders have over their followers. It persuades others to
support their efforts and do as they ask. Influence is essential to leadership because leaders
cannot exist without it. It is also a key component of power and authority.
Power and authority are often used interchangeably but their meanings have nuanced
differences. Power is the influence someone has over another. It refers to the ability to
accomplish a goal with the help of others. Authority is the right to exercise that influence.
Supervisors have authority because of their position in the workplace. They possess a type of
power because of this, but a staff member can also have power if they are well-liked by
colleagues. The staff member has no authority but colleagues are willing to follow them because
of their relationship.
A leader is one who inspires others to act. Good leaders possess a type of power that encourages
self-improvement and team building and promotes a positive work culture. The types of power
are how people are influenced. These common types of power in leadership are:
1. Charisma
Charisma is the nature of attractiveness or charm that compels others to follow someone.
Charismatic power inspires positivity and joyful feelings in others. The persuasive nature of this
power is reliant on the engaging quality of the leader's personality. This power does not have to
exist with any explicit skills or refined leadership qualities. People are naturally drawn to the
charisma of others. When used as a tool in conjunction with well-rounded leadership, it can
inspire great change.
Charisma is a natural byproduct of an outgoing personality. It works best when felt honestly.
Learn to be charismatic by developing confidence in your unique abilities. If you feel more
comfortable connecting with people one-on-one rather than in large groups, this may be your
way of displaying charm. Embrace your strengths and use them to your advantage.
2. Information Power
Power based on information lasts as long as the information is not known to others. This puts the
person in possession of the information in a unique position to leverage this power however they
choose.
While having information power can be a one-time occurrence, you can become a person who is
known to have key information on the industry, products or market. By developing a curiosity for
important news and innovations in your field, you may become a valued resource to your
colleagues.
3. Moral power
A leader with moral power inspires action based on their beliefs and behavior. Moral leaders
live by a principle that others can see and decide to follow. Employees are inspired by these
leaders because the leader builds trust through their ethics. They become a role model for setting
personal standards.

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To use moral power in your career, establish a personal mission statement and philosophy to
live by. When you make this statement known to others and consistently live by your principles,
they come to trust your example.
4. Connection power
Leaders have connection power when their alliance with influential people is admired and
desired by others. The connection gives people the sense that the leader possesses or has access
to the same power that the influential person has. This is beneficial in cases where the leader has
connections to possible business investors.
Building relationships establish a framework for connection power. Take advantage of
networking opportunities to make lasting friendships throughout your career.
5. Founder power
Founder power exists when a leader is the founder of an organization, ideal or movement.
Others defer to this person's power because there is a perception of having a deeper knowledge
than the others through experience. Becoming an entrepreneur of a successful business gives you
founder power even after you have stepped down from running day-to-day activities.

Qualities of Effective leader

Leadership is a combination of qualities that inspire others to achieve a common goal. Certain
qualities of leadership occur more readily in some people than in others. Through patience
and goal setting, anyone can learn to be an effective leader. Here are some common qualities of
a successful leader:
1. Honesty:-Honesty in a leader builds trust and credibility among employees. People are
more willing to work with someone they believe can deliver promised results. An honest
leader also inspires a culture of taking responsibility for your work and actions.
2. Integrity:- Integrity is a consistent upholding of personal principles. It is important in
leadership because it inspires trust and reference in others.
3. Confidence:-An effective leader must have confidence in their own actions to inspire others
to act in harmony. Confidence gives the impression that a leader knows what they are
doing and are capable of solving the current problem.
4. Empathy:-The ability to see things from the perspective of others is an essential quality of
leadership. With this core skill, the leader can suggest changes that help team members
improve on their personal strengths.
5. Enthusiasm and aspiration:-Like charisma, enthusiasm stimulates people into action. It
inspires positive feelings that help employees push through challenges and discover
innovative solutions. An enthusiastic leader keeps motivation high and inspires confidence.
6. Accountability:-Leaders demonstrate accountability when they consistently deliver on their
promises, take responsibility for their actions and live up to a high-performance standard.
These standards can be the result of a personal philosophy or an organizational goal.

Power influence and leadership

Put simply, the power definition is: having the capacity or ability to act in certain ways or
impose your will on others. But in a work context, people interpret the concept of power in
different ways. Some people see power as something they receive from an external source.
This could be an assigned title or position that gives someone control and authority over
others. Other people believe power is an innate quality that can be cultivated internally and

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that manifests externally. In this sense, a person’s personal power grows as they develop.
True power is a combination of both internal and external power. This means that anyone
can access a certain amount of power, regardless of their position in the hierarchy.

Power vs. influence

Powerful leaders have a great capacity to influence others. Their power is based on a
combination of their innate leadership qualities and the way others perceive them. However,
having power does not necessarily equate to having influence. The most powerful
leaders support and uplift their team members instead of dominating and controlling them.
Also known as servant leaders, those who put the needs and development of their employees
first have the greatest influence.
The most powerful leaders have clarity and self-discipline. This allows them to lead by
example. By modeling disciplined behaviors, they encourage and inspire their team
members to do the same. And when employees are self-disciplined, they require less micro-
management. This, in turn, increases the leader’s power, creating a virtuous cycle of trust
and self-leadership.
Insightfulness is another key aspect of a leader’s power. An insightful leader has the
capacity to see the bigger picture and communicate that vision. Their insights give them
greater power and influence over their team members. The greater the impact a leader can
have, the more they will be perceived as powerful by their employees. Using your creativity
to find solutions, make decisions, and set organizational goals can increase your perceived
power among your employees. Confident leaders also have more power and influence over
their subordinates. You can cultivate confidence by acting in line with your values and
defending your positions.

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What power do effective leaders use the most?

Effective leaders know how to draw on the different types of power in different situations.
This is usually a skill that develops with experience. Bear in mind that certain types of
power are only effective in situations that require immediate action or resolution. In the
case of employee misconduct, you might use coercion to persuade your employee to stop
their inappropriate behavior. Use your discretion to determine whether this is the right
course of action. For the most part, you will rely on softer types of power to encourage
employee commitment to organizational goals and plans. These include legitimate, referent,
and expert power.
The ability to change both your leadership style and the power base from which you operate are
important skills in situational leadership. The reason for this is because if you approach a
problem from the perspective of each power base, then each power base will have a varying
degree of effectiveness. A great leader understands the different types of power and knows
how to use them in combination with influence tactics. They know this is the best way to
achieve results.

Chapter Eight: Power, Authority and Politics in Organization

Prepared By Wodesilassie Hailemichael,BA and MBA in management