In: Operations Management
Define power and influence and give examples. What are the sources of power in policy
markets? (Write two paragraph)
Power and influence both refer to naturally possessed traits that follow as a consequence of authority. ... Power can be defined as the following: “The authority to change the behaviour of others and make them do things that they might not do otherwise.”
Difference between Power and Influence
An example of power is the strength needed to run five miles. An example of power is the authority a local government has to collect taxes.
Power is undemocratic while influence focuses on the team
Power remains in the hands of one person, or a small group. This independent approach to leadership means that the team is not consulted during the decision-making process, and are often micromanaged to ensure that the leader’s methods are upheld. This undemocratic response to leadership removes a sense of responsibility from the team, decreasing morale.
Influence understands that teamwork is a dependent process: the team is dependent on their leader for guidance and the leader is dependent on employees to produce excellent work. As a result, there is a shift from autocratic decision-making to an emphasis on transparency and getting the team involved at various stages of a project’s inception. This approach means that team members feel valued, and as a result, produce work that reflects that.
Power can cost a business money while influence improves retention
Power in the United States alone, only 32.6% of employees are engaged at work, which can cost a business up to $550 billion a year.4 This is the result of unhappy employees who are less likely to feel a sense of loyalty to their organisation and are more likely to hand in their letter of resignation. The consequences of bad leadership are not just social or emotional – a business’s bottom line can directly be affected.
Influence 46% of HR specialists say that retention is their biggest challenge when it comes to staff concerns.5 Influence boosts engagement in staff because they feel personally invested in the work they’re creating. This is coupled with the fact that exerting influence as a leader is inexpensive – it focuses on soft skills that can be learnt and practised and doesn’t require additional resource
The classic scheme for categorizing the sources or bases of interpersonal power includes legitimate, reward, coercive, expert, and referent power.
Researchers identified six sources of power, which include legitimate, reward, coercive, expert, information, and referent. You might earn power from one source or all six depending on the situation. Let us take a look at each of these in turn, and continue with Steve Jobs from the opening case as our example.