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Management: Authority and Responsibility

ways to take advantage of the best ones. How effectively ing decisions, delegating decisions, delaying decisions,
goals and objectives are accomplished depends on how rejecting decisions, or supporting decisions. However, the
well the company goals are broken down into jobs and effective use of power does not mean control. Power can
assignments and how well these are identified and com- be detrimental to the goals of the organization if held by
municated throughout the organization. those who use it to enhance their own positions and
thereby prevent the advancement of the goals of the
INFLUENCE AND POWER organization.
Formal job definitions and coordinating strategies are not Truly successful managers are able to use power ethi-
enough to get the work done. Managers must somehow cally, efficiently, and effectively by sharing it. Power can be
use influence to encourage workers to action. If they are used to influence people to do things they might not oth-
to succeed, managers must possess the ability to influence erwise do. When that influence encourages people to do
organization members. Influence is the ability to bring things that have no or little relationship to the organiza-
about change and produce results; people derive influence tion’s goals, that power is abused. Abuses of power raise
from interpersonal power and authority. Interpersonal ethical questions. For example, asking a subordinate to
power allows organization members to exert influence
submit supposed business-trip expenses for reimburse-
over others.
ment for what was actually a family vacation or asking a
Power stems from a variety of sources: reward power, subordinate to run personal errands is an abuse of power.
coercive power, information power, resource power, expert People who acquire power are ethically obligated to con-
power, referent power, and legitimate power. Reward sider the impact their actions will have on others and on
power exists if managers provide or withhold rewards, the organization.
such as money or recognition, from those they wish to
Employees may desire a greater balance of power or a
influence. Coercive power depends on the manager’s abil-
ity to punish others who do not engage in the desired redistribution of authority within the existing formal
authority structure. People can share power in a variety of
behavior. A few examples of coercion include reprimands,
criticisms, and negative performance appraisals. Power ways: by providing information, by sharing responsibility,
can also result from controlling access to important infor- by giving authority, by providing resources, by granting
mation about daily operations and future plans. Also, hav- access, by giving reasons, and by extending emotional sup-
ing access to and deciding to limit or share the resources port. The act of sharing information is powerful. When
and materials that are critical to accomplishing objectives people do not share information, the need to know still
can provide a manager with a source of power. Managers exists; therefore, the blanks are filled in with gossip and
usually have access to such information and resources and innuendo. When people are asked to take on more
must use discretion over how much or how little is dis- responsibility, they should be provided with tasks that
seminated to employees. Expert power is based on the provide a challenge, not just with more things to increase
amount of expertise a person possesses that is valued by their workload that do not really matter. People need the
others. For example, some people may be considered legitimate power to make decisions without having to
experts with computers if they are able to use several soft- clear everything first with someone higher up in the
ware programs proficiently and can navigate the Internet organization. People who have power must also have the
with ease. Those who do not have the expert knowledge
necessary range of resources and tools to succeed. Access
or experience need the expert’s help and, therefore, are
to people outside as well as inside the organization should
willing to be influenced by the expert’s power. When peo- be provided and encouraged. People should be told why
ple are admired or liked by others, referent power may
an assignment is important and why they were chosen to
result because others feel friendly toward them and are do it. Emotional support can come in the form of men-
more likely to follow their directions and demonstrate loy-
alty toward them. People are drawn to others for a variety toring, appreciation, listening, and possibly helping out.
of reasons, including physical or social attractiveness, Sharing power or redistributing authority does not
charisma, or prestige. Politicians like John F. Kennedy necessarily mean moving people into positions of power;
were able to use their referent power to effectively influ- instead, it can mean letting people have power over the
ence others. Legitimate power stems from the belief that a work they do, which means that people can exercise per-
person has the right to influence others by virtue of hold- sonal power without moving into a formal leadership role.
ing a position of authority, such as the authority of a man- The ability to influence organization members is an
ager over a subordinate or of a teacher over a student. important resource for effective managers. Relying on the
In some respects, everyone has power to either push title “boss” is seldom powerful enough to achieve ade-
forward or obstruct the goals of the organization by mak- quate influence.

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 471