In the first scenario where employees are encouraged to work overtime to earn bonuses, employ reward power to encourage workers and keep them motivated towards their work. Reward power is being used by providing them the chance to receive good yearly rating on their evaluation. The constant reminder proves the marketing manager’s ability to avail a positive outcome.
However a problem that exists with using this power is that every time this power is used the reward has to be bigger to attain the similar motivational impact. It may be that frequent rewards hinder employees’ willingness to achieve them. (Northouse, 2009) Moreover, employees may misuse this opportunity by unethically meeting the reward criteria.
Lastly, this type of power may divert employee’s attention from work and would rather focus on the rewards instead. Similar problems exist in the given scenario that employee 1 is willing to attain the bonus at any cost to be able to get a good planned vacation.
In the second scenario, the CPA is using expert power and to some extent coercive power as well. Employee 2 is using his/her expertise of being the only accountant to get his demands accepted. Because he is the only one to be able to make financial statements company has to accept his commands. He is in a way using coercive power by negotiating on four day work to which accounting manager cannot deny to as he is the only one with the expertise.
Also, the CPA has legitimate power which means employees tend to also follow him as he is authorized with such position. He as a CPA has the authority and permission to work four days a week because of his hierarchical position and expertise. His subordinates must follow him and comply with his rules regardless of their lack of commitment or cooperation.
Accounting manager has also used reward power of allowing compressed work week to employee 2 as the company does not have another option to. The company is dependent on the limited experience experts it employs.
In the third scenario, employee 3 working in the sales department has gained popularity because of his charismatic and positive personality. This type of power used is called referent power where the person is well liked and is looked up to. Referent power is used by one who has strong influence on the other people and can make others feel good around them.
By using the referent power employee 3 was able to gain trust and confidence of his colleagues. Furthermore this led him to lead the entire team for his successful marketing idea that increased sales.
Corporation A used its legitimate power to decide on who should be the leader of the team. Regardless of all the reasons of not assigning employee 3 as a team leader like lack of experience and short tenure, he was selected because of his positive personality that attracted people towards him. It can also be said that coercive power has been used as well by the corporation by considering employee 3 only and not others.
Also, in the beginning other employees were not sure of his idea or did not support him. There may be a chance that other employees were not satisfied or agreed with the decision corporation made based on employee 3’s admiration and praises he got from the team.
Describe the relationship between the bases of power demonstrated At Corporation A and dependency in the organization.
From the above three scenarios at Corporation A it can be concluded that each if not entirely use all bases of power to some extent. The five bases of power being used are:
They relate to one another at Corporation A by that each employee is important to the organization. The organization cannot work without these three employees that it is at some point dependent on them or for atleast the CPA and the Employee 1. The same can be said for employee 3 as his idea has benefitted the company. All three of them are a valuable asset for the company. Therefore, they possess such powers of coerciveness, legitimacy, referent and expert power. In addition to that because the corporation is dependent on their expertise, it also employs coercive and reward power to value and appreciate their work.
The company relies on these employees can be seen from the fact that it couldn’t deny the CPA’s request to work four days a week. It had to allow since he/she was the only one to be producing financial statements for the company. Similarly, the company depends on the workers dedication to work and keeps motivating them through yearly bonuses and rewards. Because it values their productive work, it must give them the encouragement and incentives.
In the third case, because the employee benefitted the company with his idea, it was company’s responsibility to move him up the ladder to boost his morale and enthusiasm and devotion to work well with others. So he was chosen to be a team leader. This is an example of how company rewarded him with i.e. intrinsic benefits.
Northouse, P (2009) Leadership: Theory and Practice, SAGE