Broad review and analysis of the field of leadership with application to business and other organizations

Power is the potential ability to influence behavior, to change the course of events, to overcome resistance and to get people to do things they would not other wise do. It is the ability or official capacity to exercise control or authority over a person, group, or nation. (1997) Power exists on all levels of life from the household to the government of a country. In some way we all have someone who can influence our behavior or our decisions. Power is vested in us by the dependence of others by how much they need what we control and by how few alternatives there are.

Leading people effectively is a tremendous challenge, a rest opportunity, and a serious responsibility. For our organizations to be effective and for our society to function successfully, we must be able to select the right leaders and help them succeed. Because the processes of leading others to achieve organizational goals are applicable in any institutional setting, this book presents a broad review and analysis of the field of leadership with application to business and other organizations. (Nahavandi 2003)

 

1. The sources of power that the CEO must have at her disposal

The power to reward- A reward is not purely financial. While the absence of money is indeed a problem its presence is not necessarily a motivator. Nonetheless, reward of both financial and non-financial benefits is one of the keys to power and leadership.

The Power to Punish- Punishment or providing penalties, is one of the most tangible and feared positions of leadership power. However, this power base is best used with a soft glove if the end objective is to help people to become more productive and to respect their leadership. The power to punish is best used lightly, tangentially, and infrequently.

The power of position- Hierarchical position has traditionally been the most important source of power and is increasingly becoming the least important, although it is still not to be ignored. It comes with title or position such as a police officer, teacher or CEO. Authority is given to an individual by an organization to influence the department or persons that the direct authority must govern. People have been socialized to accept the power system of boss and subordinate. The power that is inherent in any position is power vested by the majority.

The power of expertise- A person has expert power when he or she has special information or expertise that the organization values. This type of power can come from extensive background and education or an area where an individual displays extremely proficient skills. Expert power can be very beneficial to a manager. Of all the bases of power, expertise is most consistently associated with subordinate effectiveness.

Referent Power- Exists when the power holder is well liked by others. In this sense, charismatic leaders will have referent power. This type power is interesting in the way that the followers are easily influenced due to the genuine respect they hold for their leader. The leader who is popular and well liked is more apt to gain favorable response without the use of power or coercion. Networking in the workplace can be extremely beneficial for this type of individual, since he or she can form a basis for calling in favors in time of need.

2. Such powers above can be use to avoid certain operational, administrative and ethical problems if it is followed thoroughly without any negative connotations and biases. There should be an ample time in achieving these powers and it should be exercise effectively. A needed assessment as well as appraisals of such matter is vividly important in order to see changes in such context only if needed. These sources of power must be considered at all times to attain peace and unity in a certain workplace. It should be open to clarifications in case employees will ask some delicate matters involving such effectiveness of the sources being specified.

 

Three specific business problems that can be addressed through the use of “influence tactics”

      Financial Turn Around

It is essential that any company experiencing any financial stress acts quickly to stop such financial bleeding and plans to improve such internal efficiency and such ability to generate revenue. The influence tactic behind this problem is the overlapping of such expenses within the limited context and variations of such. The source of power of this kind would be the power of position because such financial problems could be in question directed to those authorities in higher position or level.

      Unhealthy Competition

Competition in industries that deal with scarce resources can stimulate unethical behavior. In highly competitive industries, there is a temptation to engage in price fixing. Also, in industries with no competition there could be temptation to engage in unethical behavior. Such influence tactic of this could be the rapid event of favoritism between the employees involved. The source of power could be the power to reward as well as the power to punish misleading actions and undesirable behavior.

      Work Conflicts and Miscommunication

This could be a major problem in business organizations because the occurrence of such truth could greatly affect the effectiveness of a particular worker in terms of his performance and level of accuracy during working hours. Spreading of rumors and gossips could be a valid tactic that accounts this type of problems at hand. The source of power could be the referent power.

Moreover, such tactics will definitely address the problem of the above data because it is a part of the real scenario in every business structure and has been a visible pattern within.

Contrasting these specific ethical dilemmas in business, there are also common themes that run through the ethical issues which managers face. An interview survey conducted on a diverse group of managers discovered seven themes that define their moral standards for decision making. They are:

      Honest communication

      Fair treatment

       Special consideration

      Fair competition

      Responsibility to organization

      Corporate social responsibility

      Respect for law

 

References:

Nahavandi A (2003) “The Art Science and Leadership”, Upper Saddle River New Jersey Prentice Hall

Green N (1997) “Creating an Ethical Workplace” Employment Relations Today vol. 24 pp. 33-44.

Krohe James Jr. (May 1997) “The Big Business of Business Ethics” Across the Board v. 34 p. 23.

Weiss, A “New Leadership for the New Millennium”. 

 

 

 

 

 

 

 

 

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