Organization Power

Etudes

Organization Power:
It is the ownership of power and authority delegated to a person over the people in the workplace. The power can have either positive or negative impacts in an organization depending upon how a designated person uses it. The classification of power was established by an American sociologists John French and Bertram Raven who created a list of five types of social power that affects relationships in the year 1959.
These 5 classifications are – Legitimate power, Expert power, Referent power, Coercive power and Reward power.
(Smallbusiness.chron.com, 2018)
Legitimate Power:
It is the power of a person who holds in an organization. This type of power is also known as “Positional Power”. A person only uses this power when he earns it like the CEO of a company.
In Nestle, the legitimate power is usually with the CEO and then he is the one who hire other people and give them power to coordinate people and achieve the organizational goal.
(Smallbusiness.chron.com, 2018)
(Coursehero.com, 2018)
Expert power:
This is a type of power when a person having special kind of knowledge or skills in a particular field. This help the employees to take necessary steps to tackle major problems. Those with advanced skills are respected than those with less experience in the field.
(Smallbusiness.chron.com, 2018)
Referent Power:
This power is acquired when a person enjoys being around a person or even desire to be like them. This people influence others because people are eager to give them what they want just because there is an element of respect between them. This power comes into act when a person respects another due to inter relation between them.
Nestle has different people coming from different cultural backgrounds who work under one roof with harmony. They lift and help each other in achieving their personal skills. Motivation plays a vital role in this power.
(Smallbusiness.chron.com, 2018)

Coercive Power:
This power is exercised when a leader is able to control other people through punishments or threats to manipulate the behavior of the work. A manager can force his employees to work for extra-long hours to meet the deadline of a particular project. This power helps to make sure that the employees are doing their work responsibly in an organization.
Nestle permits their managers to have a control on the employees in order to keep them on the right path. The manager can use coercive power if his staff is not working according to the code of conduct of the organization. Improper use of this power leads to chaos in the company.
(Smallbusiness.chron.com, 2018)
Reward Power:
This power highlights that a person’s ability used to motivate workers by offering them incentives or rewards to the subordinates. Reward can be in a form of salary, promotion, yearly bonus etc. These type of rewards boosts up the level of the employees which keeps them motivated which in result keeps them indulged in their work.
In Nestle, the managers and leaders gives their employees rewards which keeps them motivated to work harder for the future.
(Smallbusiness.chron.com, 2018)

Influence of Power on Organization:
Power is the ability to make something happen or to cause something by using force inside an organization. Power has a very important influence on Nestle. The power can either come from individual or from top management. Managers of Nestle follow both formal and interpersonal power in the company.
Positive Influence:
Nestle attempts to utilize power in a way which is most suitable for the workplace. The managers uses the ability to train their staff in any every better way possible. He can motivate the employees by providing rewards as per the work done and provide them instructions in the best manner. He is also allowed to punish them if required. With the help of the assigned power the managers in Nestle keep up a decent connection with the partners of the organization.
(Harvard Business Review, 2018)

Influence of Organizational power on Team Behavior and performance:
Nestle follows “Referent, Coercive and Reward” power which can create a company’s team happy and maintain a good discipline along with efficiency of work within the organization. “Referent power” is used by the leaders of Nestle to know the culture and beliefs of the general population working in the organization. This will definitely help the leaders to choose the best policy which will encourage him/her in motivating and fulfilling worker’s needs.
As for Team behavior, under the influence of good power, the teams and employees of the firm can work more effectively and know exactly who to report and know who have the power and can communicate directly with them.
On the other hand, the leaders also utilizes” Coercive are reward” power in order to control to maintain decent level of harmony in the organization. If the power is used properly by the leader then he can easily increment its individual’s behavior and team’s performance as well. As a result, misuse of the power will crumple his team and hence there won’t be any profitability in the organization.
(Harvard Business Review, 2018)
Influence of Organizational power on Individuals:
As an individual, when power is given to him/her he feels more recognized and therefore gets more motivated. This can be found under Maslow’s level of hierarchy. Each and every person in Nestle has some power which will encourage him/her in doing the task legitimately and at the right time. Having a certain power or force will help the individual in realizing their responsibilities. Every single person utilizes the power assigned to him/her according to the interest of the organization. But if the person uses the power for his/her personal interest then the organization won’t be able to achieve its goals and objectives.
(Harvard Business Review, 2018)
Negative Influence:
Despite the fact that power is useful in an organization but there are some negative influence that comes along as well. If power is used in an evil way which prompts demotivation and conflicts among the workers.
Individual’s gets demotivated, when something is imposed or forced onto the employee, they get upset and becomes less productive. They won’t perform as efficiently and gets a sense of lack of power and acceptance in the organization as a result turnover can happen in an organization. The leaders can misuse their authority by giving reward according to favoritism based or gender based. Abuse of Power is one of the most common things we can observe.
And when compared to team behavior, when one person enjoys more power or even favoritism by someone with power, he or she can get away with stuffs easily when they are found to be in trouble. This can really tip off the balance and coordination between other members of the team.
(Harvard Business Review, 2018)
Organization Politics:
It is refer to the activities taking place in an organization which are connected with the improvement of individual instead of focusing on the objective of the company. It is recommended that people with good politics skills are able achieve the goals in a more appropriate manner. It could be Power, Position or any of that could matter. They work and only care for obtaining that goal in the organization, this creates a political environment inside the organization.
Positive Influence:
The employees who already have a thought regarding the politics of Nestle are regarded as more profitable than those who don’t have any idea about them. With the Political system that exists in the organization, the employees become much more competitive and also creative. They always brainstorm for new and better ideas that could outpace their competitor’s idea. Positive politics helps the employees to communicate their problems to the manager easy and get a quick feedback which will help them in productive working.
(Harvard Business Review, 2018)
Influence of Organizational politics on Team Behavior and performance:
Having a good Organizational politics help in encouraging and inspiring the workers, they will be willing to take part in various tasks and events which helps the organization in accomplishing its goals. Positive politics will lead to friendly environment as a result helps to improve the performance of the team but on the other hand negative political issues will lead to disappointed among the group.
(Harvard Business Review, 2018)
Influence of Organizational politics on Individuals:
If the employees working in Nestle have a Positive political atmosphere. This helps to achieve the goals of the organization. The political system helps in creating motivation since the employees are working hard to earn that position or goal. On the other hand if the people have a negative and evil mentality then they won’t help anyone. This can lead to unhealthy competition in the future and will additionally affect the productivity and profitability of Nestle.
(Harvard Business Review, 2018)
Negative Influence:
Negative politics in Nestle can lead to serious clash among the members as every single worker need to achieve the best level. Since there is a competition, there is dishonesty and no trust between colleagues as each of them are trying to achieve their own goals. If political culture is not mentioned clearly, then the employees won’t be able to understand and exercise their orders coming through the chain of command from top management. In this kind of environment, Team spirit is lost. Even if the top management forms a team, the productivity and contribution will decrease. Everyone would rather do it themselves than divide the work.
(Harvard Business Review, 2018)