In: Economics
Five Sources of Power: Legitimate, Reward, Coercive, Referent, and Expertise
Read each of the five scenarios below and choose one of the five sources of power to resolve the challenge in each scenario and explain why that source is appropriate.
Scenario #1
Assume you are a supervisor of an IT department at a website hosting company. You want your staff to complete a large project within the next two months. Usually such a project would take about three months to accomplish. To persuade your staff to rise to this challenge, you offer each of them three additional paid vacation days. Your staff enjoys taking three-day weekends, so the incentive should motivate them to finish the project within the shorter time frame.
As the supervisor, you are using ________________ power to motivate your staff.
Reason(s) for Choice:
Scenario #2
Assume you work at a local retail store. As a part-time employee working your way through college,
You are not interested in becoming a manager. Even so, sometimes you wish you were in charge. Just yesterday, your boss asked if you would be willing to work two extra days per week for a month. After you explained that you could work only your usual three days per week due to college and other commitments, your boss threatened to cut your hours indefinitely. Given how much you need the money, you grudgingly agreed to work the two extra days per week.
Your manager is using __________________ power to persuade you to work the two extra days.
Reason(s) for Choice:
Scenario #3
Assume you were recently promoted to assistant manager of the bank in your hometown. You are friends with the employees that now report to you. You notice that they still treat you like a buddy and do not seem to respect you in your new role. You decide that it will be in everyone’s best interest if you assert yourself by reminding them that you are now their manager (and not their buddy). This is a challenging transition, but you feel the need to have their respect now that you are the manager.
You are using __________________ power to encourage employees to respect you in your new role.
Reason(s) for Choice:
Scenario #4
Assume you are an experienced marketer of outdoor adventure trips. You recently changed jobs. While working for your previous employer, Outdoor Adventures, you created several successful marketing programs that resulted in a 30% increase in sales over a three-year period. Now that you recently joined Eco Tours & Adventures, none of your co-workers know the extent of your marketing knowledge. Your goal is to increase your power within the company. You decide to develop a really impactful and creative marketing campaign unlike any used by Eco Tours in the past.
You are using _________________ power to increase your influence at Eco Tours & Adventures.
Reason(s) for Choice:
Scenario #5
Assume you are a salesperson and just found out that your organization’s largest client is thinking about moving its business to one of your competitors. If this happens, you will lose about 30% of your commission this year, not to mention the loss of revenue to your company. You decide to rush over to see your contact at the client company. You spend two hours listening to why the client might leave and ask repeatedly what your company can do to make things right. You are nervous, but still use your charm and sense of humor to convince your contact that you and your company deserve one more chance. Your contact agrees to get you a meeting with the CEO and to put in a good word for your company. She says she is doing this because she likes you professionally.
You are using ________________ power to convince your contact that you deserve another chance.
Reason(s) for Choice:
Solution:
Case 1-
Reward Power (Explanation: Reward Power is used to motivate employees by providing them benefits, bonuses, promotion, etc. Here, three additional paid vacation days are being offered as reward.)
Case 2-
Coercive Power (Explanation- Coercive Power is used when the manager threaten the workers. It may include firing, reprimanding, abusing, punishing, shaming, etc. Here, boss threatened to cut hours indefinitely. )
Case 3-
Legitimate Power (Explanation: Legitimate Power is the power given to a person based on his/her position. It is determined by the organization’s hierarchy; junior managers will report to senior managers and senior managers will report to directors. Here, the power will be used to get respect as a manager.)
Case 4-
Expert Power (Explanation: Expert Power is a way to earn respect and power independent of the hierarchy because of the skills and talent you have. Here, power is being used because of the marketing skills.)
Case 5-
Referent Power (Explanation: Referent Power is when you don’t have any granted power in the organization but you have the ability to influence others because they either like you, respect you, or admire your behavior. Here, the power is being used because of the charm and sense of humor.)