MGC1010 Lecture Notes - Lecture 3: William Gaddis, Knowledge Economy, Silvio Berlusconi
26 May 2018
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Department
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Professor
MGC1010 Week 3 - Authority and Influence - Power
in Management
Overview
●What is power, the forms, and sources of power in organisations?
●What are the different symbols of power and how do managers use power?
●What is the dark side of power? (negative impacts)
●QUESTION EVERYTHING
●What are the implications of shifts in power?
○There is always a power play in every organisation
Power: An Introduction
●Power is the capacity to influence others who are in a state of dependence
●Power applies to both individuals, groups and departments within organisational
practices
●Power doesn’t corrupt people, people corrupt power - William Gaddis
●Positive potential of power:
○Influence
○Mentorship
○Role modelling
○Empowerment
Power in Organisations
Legitimate Power
●Formal appointment/role/post in the organisation
●Agreement that people in certain roles can request certain behaviors or others
●Based on job descriptions & mutual agreement from those expected to abide by this
authority
●Legitimate power range (zone of indifference) is higher in high power distance
cultures
Reward Power
●The ability to control the allocation of rewards valued by others and to remove
negative sanctions
○Reward can be tangible and intangible
○Most important thing = valuable to the person
●Operates upward as well as downward
○As long as there is dependency there is power
○Eg: Christmas cards, good workmanship
Coercive Power
●Ability to apply punishment (opposite of reward)
○Shunned and considered controversial in Australia
●Can be essential to the job eg: police officers
●Exists upwards and downwards
Document Summary
Mgc1010 week 3 - authority and influence - power in management. What is the dark side of power? (negative impacts) There is always a power play in every organisation. Power is the capacity to influence others who are in a state of dependence. Power applies to both individuals, groups and departments within organisational practices. Power doesn"t corrupt people, people corrupt power - william gaddis. Agreement that people in certain roles can request certain behaviors or others. Based on job descriptions & mutual agreement from those expected to abide by this. Legitimate power range (zone of indifference) is higher in high power distance authority cultures. The ability to control the allocation of rewards valued by others and to remove negative sanctions. Most important thing = valuable to the person. As long as there is dependency there is power. Ability to apply punishment (opposite of reward) Can be essential to the job eg: police officers.
