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Power – the potential or ability to influence decisions and control resourcesOrganizational power can be derived from many sources
LEGITIMATE POWERPeople at at the highest levels in the organization have more power than people below them.Organizational culture helps establish the limits to anyone’s power Coercive powerA common coercive tactic is for executive to demote a subordinate manager if he or she does not comply with the executive’s plan for change
When leaders start losing to control resources, their power decilnes.Case Study : Donald Trump.When his holdings generates positive cash flow and his image was extra ordinary, he draws many investors.When his cash flow is negative, he finds difficultyin looking for investors.In 1993, Trump has improved his companyBy 1996 his company improved significiantly.In 2004, Trump casino filed bankruptcy to refinance his debt.
When an organizations faces lawsuit, the legal l department assumes power and influence over organizational decisions.Centrality is the extent to which a unit’s activities are linked into the system of organizational activities.
A leader’s power and influence increases when he shares power with others.A truly powerful leader makes team members feel powerful and able to accomplish tasks of its own.As Steven Covey notes, empowerment and leadership distribution are happening among progressive companies throughout the world.
1. Almost any form of participative management , shared decisionmakingand delegation can be regarded as empowerment
1. The focus of empowerment is on the changes taking place within the individual.
1. Organizational Politics refers to informal approaches to gaining power through means other than merit or luck.
Niccolo Machiavelli ( 1469-1527) , an Italian political philosopher and statesman . His famous work, The Prince, describes how a leader may acquiire and maintain power.Machiavelli’s ideal prince was an amoral, manipulating tyrant who would restore the Italian city-state of Florence to its formal glory.360 years later, a study by Gerald Biberman showed a positive relationship between Machivellianism and political behavior .