Nature and Basis of Power, Sources of Power, Power Structure, and Politics | Commerce & Accountancy Optional Notes for UPSC PDF Download

Introduction

• Organizational structure is fundamental for the effective functioning of any organization. It defines the positions within the organization, which in turn grant individuals power and authority. This power allows individuals to oversee and control the organization's activities. For instance, a Chief Executive Officer (CEO) holds a position that grants them power over all subordinates and the organization as a whole. Consequently, senior executives often aspire to attain the CEO position. Similarly, politicians within political parties aim to become Prime Minister (PM) or Chief Minister (CM) or occupy a leadership position within the party. 
• Power is a vital element for the efficient operation of an organization. According to the strategic constituency theory, power is necessary for organizations to address and resolve critical problems that arise due to environmental uncertainties. The organizational power structure is typically depicted through an organizational chart. However, power can also be acquired formally and informally. When top management understands the sources of power, they can better manage power dynamics and politics to benefit the organization while minimizing negative impacts. The success of a manager often hinges on their ability to accurately analyze the organization's power structure and politics.

Concept of Power

• Power is pervasive in all social situations and organizations. Various authorities have defined power differently. According to R. A. Dahl, power is the ability of one person or group to influence another person or group to do something they might not have done otherwise. It involves successfully influencing others according to one's desires. Power resides in individuals (such as managers and informal leaders), formal groups (such as departments and committees), and informal groups. It is the primary means of directing and controlling organizational goals and activities. 
• Managers or supervisors are considered to have power when their subordinates carry out tasks according to their wishes. Hence, a manager's ability to get work done depends on the power they possess. Almost everyone, from within and outside the organization, seeks to exert their power to get their work done. Therefore, understanding power dynamics within an organization is crucial for everyone, especially those in positions of power, to manage their activities and ensure the smooth functioning of the organization.
• It is essential to differentiate between power and authority. While these terms are often used interchangeably, they possess distinct differences. Power refers to the ability to influence others, while authority is the right to command. Authority is typically attached to a position and is legitimate. Authority is one of the primary sources of power. However, while authority can lead to career advancement within an organizational hierarchy, it may not necessarily be accompanied by the same amount of power. Moreover, while authority typically flows downward, power can move in all directions, depending on the individual's use of power within the organization. This is because power is not institutional, whereas authority is institutional.
• Power can be used in various ways to benefit the organization. For instance, it is considered positive when managers debate over the appropriate course of action to enhance the quality of organizational decision-making. In a positive sense, individuals seek to balance their personal and organizational interests and openly address organizational problems without any hidden agendas.
• However, power can also have negative connotations in the organizational context. It becomes negative when individuals use organizational resources for personal gain, pursue their personal goals at the organization's expense, and make decisions against the organization's interests. In such cases, there may be an illegitimate use of authority, resources, and organizational information.
• The terms "bases" and "sources" of power are often used interchangeably. However, the base refers to the platform from which power is generated. It encompasses what a person controls, ultimately enabling them to influence group behavior. The strongest power base is legitimacy and greater power, while the weakest is coercion.
• Organizations are inherently places of dependence, and the organizational structure further enhances this dependency. No one can accomplish everything alone, and everyone relies on others to get work done within the organization. When someone possesses something that others need, and only they control it, they make others dependent on them. As a result, the possessor of resources holds power over others.

Importance of Power in the Organisation

Power is vital for the functioning of an organization and is sought after by individuals within the organization for several reasons:

• Power is used to control people and resources within the organization, ensuring cooperation and the achievement of current organizational goals.
• It can be leveraged to engage in politics and influence the decision-making process to promote new and more appropriate organizational goals.
• Power influences the complexity, formality, and centralization of activities within the organization.
• Individuals with power often determine the size of the organization, the allocation of rewards, the selection of technology, and other critical decisions.
• Power is essential for the efficient functioning of the organization.

Sources of Power

French and Raven, leading authorities on power, have identified two sources of power: formal and informal.

1. Formal Power

Formal power is derived from the position occupied by an individual within the organization's structure. The higher the position, the more power the individual typically holds. When an individual accepts a formal position within the organization, they are granted formal power and authority to carry out their duties. There are four types of formal power:

• Legitimate Power: This is the power to control and use organizational resources to achieve organizational goals. It is the legal authority granted to an individual over organizational resources. Legitimate power includes the acceptance of positional authority by members of the organization, allowing a manager not only to control resources but also to influence the behavior of subordinates.
• Reward Power: Reward power involves the ability to provide rewards, such as promotions, praise, raises, and preferred work assignments, to subordinates. It can also include access to valuable information and friendly colleagues. Individuals who distribute rewards that others value hold power over them.
• Coercive Power: Coercive power relies on fear and involves the ability to administer punishment or withhold rewards. People often comply with this power out of fear of negative consequences. Coercive power can be used to demote, terminate, or suspend others and can be difficult to control.
• Information Power: This type of power is based on an individual's access to and control over information. Those with greater access and control over information can influence others to perform tasks as desired. For example, a manager with more information can better solve subordinates' problems, increasing their dependency.

It is important to note that while these sources of power can be effective, they are not always conducive to an empowered and effective organization where information sharing is crucial.

2. Informal Power

Informal power is not bestowed upon individuals by the organization in a formal manner and is not explicitly indicated within the organizational structure. People who possess informal power do not hold formal positions within the organization, yet they wield influence comparable to those who do. This power is often derived from factors such as knowledge, skills, and personality traits. Informal power can be classified into three main types: expert power, referent power, and charismatic power.

• Expert Power: This form of informal power is rooted in the expertise, specialized skills, or knowledge possessed by an individual. In today's technologically advanced world, expertise has become a significant source of influence. Individuals who possess unique knowledge and skills in various fields can exert power based on their expertise.
• Referent Power: Referent power is based on an individual's identification with another person who holds a desirable position, power, resources, or personal traits. When someone admires and identifies with a powerful person, they can use this connection to influence others. This type of power is similar to charismatic power but less deeply rooted.
• Charismatic Power: Charismatic power is a more profound form of referent power that is based on the emotions and feelings of followers. It arises from the belief that a leader possesses exceptional qualities and abilities that inspire and influence followers. This type of power is commonly found in religious, political, and union contexts. It is important to note that charismatic power is closely linked to the individual and often diminishes or disappears when the leader is no longer present. It cannot be delegated because it is tied to the leader's unique attributes, and followers may blindly follow the leader without fully understanding their responsibilities.

Process of Obtaining Power

To gain power within an organization, individuals and groups often employ a variety of tactics. Some of the common tactics used by individuals to acquire power include:

• Friendliness: Some individuals seek power by cultivating friendly relationships with those in positions of authority. They may use flattery, create goodwill, or act humbly to gain favor with powerful individuals within the organization.
• Making Oneself Irreplaceable: Individuals can gain power by developing specialized skills, knowledge, and relationships that make it difficult for the organization to replace them. This can involve taking on responsibilities that bring them into contact with influential managers, which may lead to promotions or rewards.
• Networking with Powerful People: It's not just about how many people one knows within the organization, but whom one knows. By identifying with powerful individuals who hold influence, higher authority, status, control over resources, or expertise, individuals can gain power.
• Building Coalitions: To achieve their goals, individuals may form alliances and coalitions with others based on common interests. These coalitions may need to be actively managed as individual interests change over time. Coalition-building is more common in organizations with high levels of task and resource interdependence.
• Being Assertive and Establishing Credibility: Assertiveness and credibility can be sources of power. Individuals who assert themselves, demand compliance, and establish their credibility through sincerity, honesty, and punctuality can gain power.
• Building Pressure: Some individuals may use pressure tactics, such as threats of strikes or slowdowns, to gain power. These tactics can be part of a power struggle within the organization.

Concept of Organizational Politics

• Organizational politics refers to the activities managers engage in to increase their power and pursue goals that benefit their individual or group interests. It involves using power and other resources to achieve preferred outcomes in situations where there is uncertainty or disagreement about choices. Employees may engage in political behavior to gain promotions or influence organizational decision-making in their favor.
• Organizational politics is closely related to power and involves resource allocation, conflict resolution, and decision-making processes within the organization. Politics can be positive or negative. Positive politics involves a balanced pursuit of individual and organizational goals, open problem-solving, and win-win outcomes. Negative politics involves pursuing self-interest, having hidden agendas, and viewing situations in win-lose terms.
• While political behavior is not part of an individual's specified job requirements, it is a fact of life in most organizations. Ignoring this reality can be risky, as political behavior can lead to disharmony, conflict, stress, anxiety, and uncertainty within the organization. Some common examples of political behavior include spreading rumors, leaking confidential information, exchanging favors, and lobbying for or against specific individuals or decisions.

Types of Political Behaviour

Political behavior within an organization can be divided into two categories: legitimate and illegitimate.

• Legitimate Political Behavior: This includes activities that comply with the rules and regulations of the organization. Legitimate politics may involve actions such as complaining to one's supervisor, bypassing the chain of command, forming coalitions, obstructing organizational policies, and developing contacts outside the organization through professional activities.
• Illegitimate Political Behavior: This involves extreme activities that are against the rules and regulations of the organization. Examples of illegitimate politics include sabotage, whistle-blowing, and symbolic protests like wearing unorthodox attire or groups of employees calling in sick.

Seven Categories of Political Activity

Steven and Mary Ann Von have identified seven categories of political activity within organizations:

• Attacking or Blaming Others: Members of an organization may attempt to blame rivals or unwanted individuals or groups for their own failures to project a negative image of these individuals or groups.
• Selectively Distributing Information: Individuals who possess strategic information may share it selectively with those who support them, increasing their power base.
• Controlling Information Channels: Those with power may control the informal behavior of others by encouraging or discouraging certain behaviors to please powerful individuals.
• Forming Coalitions: Individuals may form coalitions to influence the behavior of others or groups. This can be done to gain support or influence decision-making within the organization.
• Cultivating Networks: People develop networks based on various social relationships within the organization. These networks can provide information, support, and facilitate favorable decisions.
• Creating Obligations: Powerful individuals may create a chain of obligations within the organization to gain support from those who feel obligated to them.
• Managing Impressions: Powerful individuals may exhibit behavior that creates favorable impressions, such as projecting themselves as protectors of members' interests or being visible during crises to create a positive image.

Factors Influencing Organizational Politics

Several factors influence the political behavior of individuals within organizations, including:

• Individual Factors: Some individuals play politics to gain power, control, and influence within the organization. They may have a high need for power and are self-monitored individuals. Others may play politics to achieve quick success in life.
• Organizational Factors: Organizational factors that influence political behavior include limited resources, such as positions, power, and promotions, which are open to interpretation. Uncertainty and ambiguity in decision-making, subjective performance evaluations, high-performance pressure, and democratic decision-making cultures can also contribute to political behavior within organizations.

 The Basis of Organisational Politics

There are several ways individuals can improve their political effectiveness within an organization. Some common bases for improving political behavior include:

• Supporting One's Boss: Individuals can improve their political standing by supporting their boss whenever and wherever they need it. This can involve behaving in a manner that always portrays the boss in a positive light, which can help them be seen as part of the boss's inner circle.
• Expressing Reservation: Some people choose not to express their resistance to certain issues despite having reservations. They wait for a crisis to occur within the organization before expressing their reservations, hoping to gain favor and influence.
• Developing Powerful Allies: Individuals can improve their political standing by forming alliances with influential people within the organization.
• Appearing Indispensable: By showcasing their knowledge, skills, arguments, and deeds, individuals can appear indispensable and gain a political advantage.
• Gaining Control Over Resources: One can play politics by gaining control over scarce organizational resources.
• Showing Extraordinary Performance: Being visible through extraordinary performance can also help individuals play politics within the organization.

Conclusion

• Organizations are coalitions of interests, and the identification and resolution of problems often involve negotiation for consensus, which can lead to politicking. Therefore, the existence of power and politics is an inevitable phenomenon in every organization. To manage and be managed efficiently within an organization, individuals from top to bottom need to have knowledge of power and politics.
• The power structure of an organization is revealed through the organizational chart, which shows the formal sources of power possessed by individuals, groups, and departments in the organization. Decisions are also made visible through this chart. Since power enables individuals to control the activities of the organization, everyone desires power within the organization. There are two main sources of power: formal and informal. While formal sources of power are legitimate, people often use informal sources of power to their advantage. As positions are limited within an organization, so is positional power. Hence, people play politics to acquire positions.
• Organizational politics is self-serving behavior that is not officially sanctioned by the organization. Nevertheless, people engage in politics to be part of the distribution of advantages and disadvantages within the organization. Political behavior within an organization can be either legitimate or illegitimate. Various individual and organizational factors influence individuals to engage in political behavior within an organization. To engage in politics, individuals use different mechanisms. However, politics within an organization can lead to disharmony, anxiety, stress, and conflict, and can challenge formal authority. Therefore, it should be managed to minimize its negative impact on the organization.