7.

Nature and Basis of Power

2023 (2a) How is power used as a tool of organisational control? Elaborate in detail the various sources of power.
(20 marks)
2021 (1e) Explain- Power and Authority. (10 Marks)

Chapter Outline
• Introduction
• Features of Power
• Significance of Power
• Bases of Power
• Sources of power
• Basis and sources of power and Interactive influence
• Power Structure in Organisations
• Power Structure and Politics
• Organisational Politics
• Influence
• Traits of Successful Power Users
• Power vs. Authority
• Theories of Power
• Power refers to the ability of a person which enables him to 'affect' other's behaviour. As per P.M. Blau 'Power
is an exchange process. A person who commands services needed by others exchange them for compliance
with his/her request due to power'. Salancik and Pfeffer states that 'power is ability to get things done by way
one wants them to be done'.
• Influence is generated by power in form of negative/positive rewards due to non-compliance/compliance, such
as
○ Giving rewards, promising rewards.
○ Withdrawing or threatening to withdraw rewards.
○ Punishment or threat thereof.
• Features- Certain features emerging from above meaning and definitions of power are as follows-
○ Reciprocity: Power exists only if two or more persons have reciprocal relationship. More the mutual
reciprocity, higher will be scale of power.
○ A flexible feature: It can expand or contract, because dependency is also a flexible term. Besides it,
higher the position, more will be power.
○ Power is neither completely formal nor informal: Really, it is a mix of both. Purely formal power is
known as authority. Purely informal power doesn't create reciprocity. (e.g. father and son relation doesn't
have power).
○ Power is specific i.e. situational or event based use. A person can't always be powerful.
 Role specific power- Role creates dependency and hence specifies its use.
○ Leaders have as much power as followers allow them to have.
○ Sometimes, appearing to be powerful may be more significant than being powerful i.e. power in form of
deterrence.
• Significance of Power-
○ In spite of all its negative connotations, power is vital and necessary part of organisations. It is essential
because it is like fuel that provides energy to run organisational machinery. It is a necessity because
managers without power are merely figureheads and can't effectively function to deliver goods.
○ The contemporary social scholars considered power and influence and political factors as the major
determinants of behaviour.
○ Generally, power is seen negatively. Human beings can't avoid use of power to serve personal interests
beyond a certain extent. Despite negative role, it has positive functions.
 Order in organisation: Formalised power ensures compliance.
 Source of motivation: Power is most essential human expectation and phenomenon in social
working. From top level to lowest levels, social and esteem needs are satisfied by power as we
observe from Maslow's, McClleland's description.
Basis of responsibility: Power is inherent in authority. Responsibility without authority can't work.

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 Basis of responsibility: Power is inherent in authority. Responsibility without authority can't work.
○ McClelland has found that successful managers need to have more power to serve organisations. Only
powerful managers can encourage team spirit, support subordinates, reward their performance and
increase level of morale. Power can fill gap requirement between goal and resource availability.
• Bases of Power-
○ A base of power refers to the thing controlled by any person due to which he exercises influence over
others.
○ J.R.P. French and Raven has mentioned formal and informal bases of power.
○ Formal Power is based upon an individual's status in any organisation. It is of four sub-types-
1. Coercive power: Ability to punish/threat or application of physical sanctions by position holder.
2. Reward power: Opposite of coercive power. It is authority to reward performance, financially/non-
financially.
3. Legitimate power: Power due to structural hierarchy i.e. formal authority to control and use
organisational resources. It's broader than coercive and reward power.
4. Information power: Access to and control over information useful for others will make them
dependent.
○ Personal Power- Power due to own attributes. It is due to individual's unique characteristics such as
expertise, charisma and public liking (Referent Power).
○ Amitai Etzioni mentions three means of exercising control over others i.e. organisational as well as
personal power in form of-
1. Coercive
2. Utilitarian
3. Normative power.
• Sources of power-
○ Normally, sources and bases of power are not taken differently. French & Raven have also done so. But
Bachasch & Lawler said that French & Raven have confused bases of power with source of power.
○ Difference between basis and source of power as said by S.P. Robins: Source of power refers to
'from' aspect, which grants a person power. But the base of power refers to the 'tool' used to influence
behaviour of others such as punishment, reward, promotion of excellence and knowledge. Their
respective counterpart 'sources' of power are- position, personal characteristics, expertise and
opportunity to control information.
○ Bachasch & Lawler said that 'base' of power refers to 'what' a person controls that allows him to
influence other's behaviour or what is that which gives an individual or a group influence over others.
Source of power denotes where power holders get his power base or how a person happens to control
his base of power. (Information is base of power & control over information is source of power.)
○ Bachasch & Lawler mentioned 4 sources of power-
1. Position power: because of position of a person in organisation.
2. Personal power: Influence attributed to a person's individual characteristics.
3. Expert power: Control over specialised information.
4. Opportunity power: Opportunity to receive and obstruct flow of information. A person having
right information at right place has opportunity power.
• Basis and sources of power and Interactive influence: Basis and sources mentioned here can't work in
isolation with from each other. They are inter-dependent to affect and get affected. It is as follows-
○ More use of reward power increases referent power because level of liking and admiration increases.
But more use of punitive power reduces referent power. Coercive use also reduces legitimate power.
More the legitimate power, more will be referent power.
○ Referent power normally increases other powers. Legitimate right to hold any position and concerned
power is enhanced by referent power. Referent power is also seen as a source of reward.
○ Expert power enhances referent power because judicious application of expertise increases referent
power.
○ With increase in legitimate power, reward and coercive powers also increases.
• Power Structure in Organisations-
○ Organisations are created and work on the basis of authority, but authority works on the basis of power
provided to position holder. In any organisation, power structure is established vertically as well as
horizontally.
○ Vertical spread of power is based primarily on line concept of organisation i.e. responsibility to produce
end results. Hence, different persons at organisational hierarchy or positions are given different powers
in accordance with quantum of responsibility undertaken. Higher the level, more the power. Vertical flow

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in accordance with quantum of responsibility undertaken. Higher the level, more the power. Vertical flow
of power is based upon vertical definition of organisations. It passes through a chain of command or
organisational hierarchies. Diagrammatically-

○ Horizontal spread of power in organisation is based upon functional definition or differentiation of

organisation. Various functional heads— purchase manager, finance manager, marketing manager,
personnel manager— are given different powers to discharge functional responsibility. Conceptually,
every function is equally significant. Hence, power flow will be as depicted by following figure-

○ Hickson has said that power holder, whether vertically or horizontally, gets its quantum due to
criticality of his task. More critical the role, more will be power. Three factors make role critical as
depicted by following diagram-

• Power Structure and Politics-

○ Logical power— horizontally or vertically— can't work in practice. Primary reason is politics in
organisation. It is a practical situation and human nature wherein power may concentrate in hands of a
few in spite of structural, functional adjustments. Michaels has said that due to 'iron law of oligarchy',
powerful tends to and makes efforts to remain powerful (iron law of oligarchy states that all forms of
organisation, regardless of how democratic they may be at the start, will eventually and inevitably
develop oligarchic tendencies, thus making true democracy, practically and theoretically, impossible,
especially in large groups and complex organisations). Michaels argues his theory on two factors-
1. Significance of size of organisation.
2. Conflict among specialists.
○ As the size of organisation increases, despite mass working, mass participation in power can't work. Few
persons begin to control most vital functions of organisation and thus acquire more power at the cost of
power of others. In this manner natural working of power structure as depicted in figure may be replaced
by power politics depicted by figure two below-

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○ As it is clear, middle-level manager or central functional specialist has acquired more power even at cost
of other functional heads as well as power of top management. It is done by adopting various strategies
such as controlling communication channels or crucial information, forming coalition and co-optation
besides bargaining and competition.
○ Power politics results in power centres. Power centres may not be stable. Power centres may work with
extra commitment towards organisational goals or may work for personal ends against the organisation.
○ It may be disastrous for organisation because power politics will brings 'change for sake of change'
beyond organisational needs. Organisation without power politics can't be expected to work at all points
of time. But following tools can be used to avoid organisational power politics-
1. Well-defined goals
2. Clear earmarking of sphere of job and clear authority.
3. Effective Management Information System.
4. Fair system of performance appraisal.
5. Fair rewards system and judicial allocation of resources.
○ Organisations can't be politics-free. Managerial leadership can ensure proper functioning by keeping
proper checks and balances over political behaviour. Empire building efforts in organisation should be
taken care of seriously.
• Organisational Politics-
○ Politics refers to way a person is able to get power over others and the way in which that power is used
over others. Necessarily, political behaviour aims at controlling and using power beyond formal
authority. It brings compromise, accommodation and bargaining in decision-making instead of
rationality.
○ As per Peterson, "Politics refers to those activities beyond formal role that attempt to influence the
distribution of advantages and disadvantages within the organisation".
○ Causes of Political Behaviour-
 To command resources.
 Lust for power.
 Self interests.
 To exercise discretionary authority and enhance comfort zone.
 To overcome saturation in career.
○ Organisational conditions creating way for Political Behaviour-
 Uneven distribution of resources and authority.
 Lack of clarity among roles and goals.
 Need for inter-departmental coordination.
 Excessive managerial levels and Horizontal differentials.
 Un-manageable operations and size of business.
 Scarce resources.
 Complex and ambiguous decisions.
○ Political Tactics or Strategies- People play politics or use various tools to enhance their hold over
power in organisation or any social situation. Some of these are-
1. Bargaining over distribution of resources, seat sharing, resource sharing, positions in
organisations, etc.
2. Competition: using organisational strength to over-power the opponent, such as better
performance by worker to get promotion.
3. Co-optation: means taking the important functionaries into confidence to maintain control over

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3. Co-optation: means taking the important functionaries into confidence to maintain control over
situation or resource or monopoly. For example- managers giving extra benefit or pre-maturity
promotion to the trade union leader to reduce union power.
4. Coalition: making unity against any common enemy such as formation of coalition government in
case of fractured mandate. Coalition helps gathering wider support against any single force. At
work-place, workers may make secretive coalition against managers to protect against wishful
decisions by mangers.
5. Pressure- use of organisational or financial power to tone down another party. Union leaders may
use their union strength through strike or gherao to force managers accept their demands.
Pressures enhances political strength. Controlling information and communication channels so that
another party remains weak due to lack of critical information. Information is power. Example-
managers not sharing performance data of the firm to keep workers demands low.
6. Master-minding or planting situations that create need for support or solution by the political
mind. Finance manager may create financial crunch and later prove his worth by providing solution
he has pre-scripted. Making networks with powerful resourceful people.
7. Creating Obligations.
○ Negative Consequences or Dysfunctional aspects of Politics- Organisational politics effects resource
allocation and manner of power use. Generally, it has following consequences-
 Use of power and resources for self interests.
 Reduction in overall organisational motivation and morality
 Change for the sake of change
 Increase in organisational conflicts
 Working of Iron law of oligarchy
 Goal displacement
○ Tools of Handling Organisational Politics-
 Job and role clarity
 Well-defined organisational goals
 Mature, capable and responsible managerial behaviour
 Effective, open and two-way communication and MIS.
 Unbiased, fair evaluation system
 Well-established resource distribution policies and judicial allocation of resources.
 Hiring non-political workers.
 Increased opportunities of dialogue among people.
 Peer pressure against politics.
 Removing political norms.
 Managing change effectively.
 Providing sufficient resources.
• Influence-
○ Influence is a process affecting the behaviour of others. It denotes any change in behaviour of a person
or group due to anticipation of the responses of others.
○ The term influence is often used in conjunction with other terms such as power, authority, control and
conformity.
○ Power is the capacity of the influencer or agent of influence to affect others’ behaviour, which accrues to
him because of his resources like strength, wealth, or knowledge.
○ Control is an extreme form of influence in which the person not only influences others to behave in a
certain way but also enforces limits to that behaviour.
• Traits of Successful Power Users-
○ John Kotter has developed a list of characteristics/principles that he found to be common in managers
who used their power successfully. These are as under-
1. Effective managers are sensitive to the source of their power and are careful to keep their actions
consistent with people's expectations.
2. Effective managers recognise that all bases of power have merit in certain circumstances. They try
to develop their skills and credibility so that they can use whatever method is needed.
3. Successful managers have career goals which will allow them to develop and use power.
4. Effective managers temper power with maturity and self-control. They avoid impulsive or egoistical
displays of their power.
5. Successful managers know that power is necessary to get things done.
○ Acquisition of Greater Position Power in an Organisation- A manager has a two-dimensional power
base. The first is the positional power by virtue of the status in the organisation and the second is

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base. The first is the positional power by virtue of the status in the organisation and the second is
personal power because of personal characteristics and knowledge. Building up of both the bases is
essential for the acquisition of power in the organisation. However, the position power can be increased
by the following factors (same as Hickson)-
 Becoming central to flow of tasks, information and scare resources.
 Dealing more with environmental uncertainties.
 Becoming non-substitutable through expertise.
• Power vs. Authority-
○ Ability- Power is the ability of an individual to affect and influence others. Authority is the right to
command and extract work from employees.
○ Leadership- Power is generally associated with leadership, managership. Authority is vested with
manager.
○ Broad- Power is a broader concept and includes authority also in some sense. Authority is nothing but
institutionalised power. Authority is a narrow concept. A manager may have considerable authority but
still may be powerless.
○ Two faces- Power has two faces— negative and positive. Personal domination at the expense of others
is negative; socialised power is its praiseworthy positive face. We can't make such markedly distinct faces
of authority.
○ Personal- Power is a personal quality. Authority is mostly vested in the position. Legitimate power is
similar to authority.
• Theories of Power-
○ Power and resistance-
 Power and resistance are two separate, although interdependent, aspects of social life.
 Resistance emerges when power is exercised or perceived. Resistance to power is part of the
power relations.
 Two types of resistance-
□ Effective or organised resistance like opposition in Lok Sabha.
□ Episodic like strike by union against management.
 If there is no resistance, it is not power. It is extension of coercion.
○ Clegg's Circuits of Power- Stewart Clegg (1989) sees power as a circular process that flows in three
channels. Each of these three circuits of power has a dynamic form of its own-
1. Overt circuit of power- Power according to the traditional explanation: A activates resources and
means, and influences B.
2. Social circuit of power- Power is based upon meanings, membership and belongingness.
3. Systemic-economic circuit of power- Power on account of creation of material and non-material
resources. It is called the circuit of system integration.
○ Giddens on Power-
 Society and human beings are inter-dependent and part of each another. This relationship is built
around power structure.
 Social norms and rules are source of power and limitations on human actions.
 Individual capabilities and actions are also source of power and influence.
 Power intervenes both in a dynamic and processual manner.
□ (Processual- relating to or involving the study of processes rather than discrete events).
○ Gaventa's Theory of Power-
 Power is founded upon glaring social inequalities.
 It survives on the phenomenon of quiescence or silent agreement.
 Social elite makes use of its power principally to prevent the rise of conflicts in its domain and to
attain social quiescence.
 The purpose of power is to prevent groups from participating in the decision-making processes
and also to obtain the passive agreement or mute compliance with the situation.
○ Mann's Organisational Outflanking-
 It is a strategy by which powerful succeed in overcoming those who lack it. It is ability to eliminate
resistances, with relative ease, to prevent other in advance by means of organisational priority, as
well as to impose the desirable order.
 Outflanking benefits out-flankers as opposed to the outflanked.
 Powerlessness of outflanked may be due to-
□ Lack of knowledge about the rules of the game or about others who share the same fate.
Division or separation of outflanked by the out-flankers. For example- in the name of

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□ Division or separation of outflanked by the out-flankers. For example- in the name of
maintaining secrecy, workers are prohibited from telling one another how much they earn; in
the name of efficiency, workers are forbidden to organise and co-operate with one another.
○ General Dependence Postulate-
 Developed by R.E. Emerson in his article "Power dependence Relations".
 R.E. Emerson has said that 'power is a function of ties of mutual dependence in social
relationships'. He advocated that a person (say X) exercises power over another (say Y) on account
of dependence of that another person (Y). Greater the dependence, greater the power. Or PXY =
DYX i.e. more the dependency of Y upon X more the power X will have on Y. The dependence is
defined in terms of resources like time, money, raw materials and other physical objects, etc. If the
person completely controls resources, he will have greatest power. Thus, the teacher has power
over the student, the lender has power over the borrower and so on.
 H. Mintzberg has opined that degree of dependence depends upon:
□ Importance of resource to end uncertainty faced by another person.
□ Resource is scarce and its supply can't be increased.
□ Resource can't be substituted.
○ Machiavellianism (By Niccolo Machiavelli)-
 The term 'Machiavellianism' is known as a set of beliefs about human nature, and a person's ability
to use various tactics, irrespective of their moral value, in order to achieve his ambitions.
 Christie and Geis have developed an attitude scale in conformity with the basic tenets of
Machiavelli's writings.
 The characteristics of people who are high on Mach Scale are as follows-
□ They have high self-esteem and self-confidence and behave in their own self-interest even at
the expense of others.
□ They are considered by others as cool and calculating and they would not hesitate to take
advantage of others.
□ They tend to form alliance with people in power for the-sole purpose of benefiting
themselves.
□ They believe that ends justify means even if it involves lies, deceit and moral compromise.
□ They will say what others want to hear but they will not let others stand in the way of their
personal gain, etc.
 Individuals with the above Machiavellian traits are believed to engage in political behaviour more
often. Accordingly, management must be aware of such individuals within the organisation and be
prepared to take reasonable measures to counter any damaging activities by such individuals.
○ Power Distance-
 Power distance concerns how culture deal with inequity.
 Hofstede suggests that a country can be high on power distance or low on the same. In the
former, inequality is accepted and even taken as good. Low power distance cultures are found in
societies that seek to play down such inequities as much as possible.

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