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Power - The ability to exert influence; that is, the ability to change the attitudes or behavior of individuals or groups.

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Power * The ability to exert influence; that is, the ability to change the attitudes or behavior of individuals or groups. Formal Power a. Reward power b. Coercive power c. Legitimate power d. Information power Informal Power a. Expert power b. Referent power c. Charismatic power Kotter's key characteristics of successfully handled power Kotter maintains that managers who handle power successfully: 1. Are sensitive to the source of their power. 2. Recognize the different costs, risks, and benefits of the five bases of power. 3. Appreciate that each of the five power bases has merit. 4. Possess career goals that allow them to develop and use power. 5. Act maturely and exercise self-control. 6. Understand that power is necessary to get things done. - Powerlessness is a difficult condition to overcome. Kanter's key means to organizational power 1. Extraordinary activity. 2. Visibility. 3. Relevance. 4. Sponsors. - Power is not limited to managers. All members of an organization can have a great deal of power because of their knowledge, their skills, or resources they control. Knowledge, combined with hands-on input into daily activities, is tantamount to power, and those members of an organization who possess key skills are in a position to secure themselves a base of practical power. ...read more.


6. Coalition formation - A way of gaining both power and influence. A coalition is a specific arrangement of parties working together to combine their power, thus exerting influence on another individual or group. 7. Joking and kidding - Good-matured ribbing is especially effective when a straightforward statement might be interpreted as harsh criticism. Delegation * The act of assigning formal authority (legitimate power) and responsibility for completion of specific activities to a subordinate. * The assignment of responsibilities by a manager to a subordinate. * The granting of permission (authority) to make commitments, use resources, and take necessary actions. * The creation of an obligation (responsibility) on the part of the subordinate to the manager to perform the duties satisfactorily. The advantages of delegation 1. The more tasks managers are able to delegate, the more opportunities they have to seek and accept increased responsibilities from higher-level managers. 2. Delegation causes employees to accept accountability and exercise judgement, and further improves their self-confidence and willingness to take initiative. 3. Delegation frequently leads to better decisions. 4. Effective delegation also speeds up decision making. 5. Facilitates division of work and thereby specialization. 6. Permit decisions to be made closer to the scene of action. ...read more.


3. The drawback is potential paralysis of decision-making and poor morale. 1. Control by many because men at the top believe that participation will increase efficiency and effectiveness. 2. As a result of the above attitude, decisions are made throughout the organization. 3. The drawback may be control by many. Advantages vs. disadvantages Advantages of decentralization: 1. Unburdening of top managers. 2. Decision making is frequently better because decisions are made closer to the scene of action 3. Better training, morale, and initiative at lower level 4. More flexibility and faster decision making in rapidly changing environments. Disadvantages of decentralization: 1. Total decentralization with no coordination and leadership from the top would clearly be undesirable. The very purpose of organization - efficient integration of sub-units for the pursuit of organizational goals through the strategic plan - would be defeated without some centralized control. Advantages of centralization: 1. Specialized skills, talents, and technology are sometimes neither affordable nor practical in decentralization. 2. Decentralization means an increase in overhead and staff. Coordination of products, money, and control also add to the cost of decentralization. Disadvantages of centralization: 1. Potential paralysis of decision-making and poor morale. Factors influencing decentralization 1. The external business environment. 2. The characteristics of the organization. 3. The rate of growth of the organization. 4. The cost and risk associated with the decision. 5. An individual manager's preference and confidence in employees. 6. The organizational culture. ...read more.

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