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POWER and AUTHORITY

The document defines power and authority, and describes their primary sources. Power is the ability to influence or direct people's behavior or the course of events. The primary sources of power are reward power, coercive power, legitimate power, expert power, and referent power. Authority is the right to make decisions and give orders to others. The sources of authority are traditional authority, charismatic authority, and rational-legal authority. The document also discusses decentralization versus centralization of power and decision-making in organizations.

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Abdel Jhuhary-Alden Escander
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94 views22 pages

POWER and AUTHORITY

The document defines power and authority, and describes their primary sources. Power is the ability to influence or direct people's behavior or the course of events. The primary sources of power are reward power, coercive power, legitimate power, expert power, and referent power. Authority is the right to make decisions and give orders to others. The sources of authority are traditional authority, charismatic authority, and rational-legal authority. The document also discusses decentralization versus centralization of power and decision-making in organizations.

Uploaded by

Abdel Jhuhary-Alden Escander
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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POWER and

AUTHORITY
DEFINITION AND SOURCES
POWER
DEFINITION

It comes from the Latin word potere, which means “to be able”;

Generally, power is the ability to cause or prevent an action, make things


happen; the discretion to act or not act; and

The capacity or ability to direct or influence the behavior of others or the


course of events.
PRIMARY SOURCES

Reward Power
 It is the ability that one holds to dole out incentives and compensation in an organization.

Coercive Power
 It is what sets in the fear of being punished for poor performance and keeps us coming in early and staying at the office late.

Legitimate Power
 It is given to a person based on their position or role is known as legitimate power (or positional power).
(continuation)

Expert Power
 It is the ability to influence others because of recognized talent, abilities, and knowledge. 

Referent Power
 It is the ability to influence others because they respect, admire, or like you.
OTHER SOURCES
Formal Power
Informational Power
Connection Power
Political Power
Charismatic Power
AUTHORITY
DEFINITION

In general, authority is exercised to get things done through others;

It is the legal and formal right to a person, who can take decisions, give orders
and commands to others to perform a particular task.
SOURCES

Traditional Authority
 is based on customs and traditions which are long established. That is, people of a community show respect to a particular

authority on the ground that their forefathers did the same and naturally they cannot violate the tradition.

Charismatic Authority
 It stems from an individual’s extraordinary personal qualities and from that individual’s hold over followers because of these

qualities. Such charismatic individuals may exercise authority over a whole society or only a specific group within a larger society.
(continuation)

Rational-Legal Authority
 It is derived from law and is based on a belief in the legitimacy of a society’s laws and rules and in the right of

leaders to act under these rules to make decisions and set policy. 
CULTURE ASPECTS
POWER
Power can appear as dominance or control, as shown by the culture of tribes or
group of ancient people.

AUTHORITY
Traditional families and other social systems are highly authoritarian. Age,
power, prestige, and wealth are the chief sources of authority (Santos, 1983, p.
140).
BASES OF FORMAL
AUTHORITY
1. THE CLASSICAL VIEW
a) Constitution guarantees right to own property and control business

b) Managers issues commands

c) Commands obeyed
2. THE ACCEPTANCE VIEW
a) Managers issues commands

b) Recipient considers acceptance

c) Acceptance/Noncompliance
LINE-STAFF AUTHORITY
LINE AUTHORITY:
The most fundamental authority within an organization, reflects existing
superior-subordinate relationships. It consists of the right to make decisions and
to give order concerning the production,sales or finance related behaviour of
subordinates.

STAFF AUTHORITY:
Staff authority consists of the right to advise or assist those who possess line
authority as well as other staff personnel.
Staff authority enables those responsible for improving the effectiveness of line
personnel to perform their required tasks.
FUNCTIONAL AUTHORITY:
Functional authority consists of the right to give orders within a
segment of the organization in which this right is normally non
existent.
This authority is usually assigned to individuals to complement the
line or staff authority they already possess.
DECENTRALIZATION and
CENTRALIZATION
Decentralization
It is a rule under which the power is deputed to the lower level
management.

Advantages
◦ The concentration of top managers stays on the major issues.

◦ The job duties of lower-level staff are given the opportunity to


improve decision-making.
◦ The decision making process can become more fast.

◦ The lower-level professionals might know the in-depth condition of


the problem, which may result in better decision making regarding
the position of the lower-level employees.
◦ Similar independent units or departments are merged as a division
that allows a convenient measurement of regular outcomes.
DISADVANTAGES

oLosing of control over the day-to-day activities of your company.

oManagers may have a different agenda from yours, which can

create a schism between the goals you want to advance and the

goals they want to advance.


CHALLENGES and FACTORS
Development
The most important and obvious element in this exercise is the
development of the coin itself. 
Funding
Of utmost importance in the direction and structure of a coin is how
the bills get paid.
Decision making
One of the most overlooked aspects in cryptocurrencies is the manner
by which decisions are made concerning the direction of the project.
Network mining/maintenance
Even if the rest of the project operates well without any aspect or
person maintaining undue influence, how the network is run remains
an important part of the equation.
Ecosystem
Finally, the most often overlooked factor in the decentralization of a
cryptocurrency is its ecosystem. A coin can achieve decentralization
with all the other factors listed above and still be subjected to use
through a relatively limited spectrum of integrations.
Centralization
It is a rule which means that the power of decision making of the
organization remains under control of the top level management.

Advantages
◦ Centralization is convenient regarding coordination with different
individuals and units.
◦ Probably, the higher management might be extra professional and
experienced that may lead to effective and efficient decision making.
◦ Regarding decision-making, the higher management
possesses a broad perception as per various situations.
◦ It can help avoid the duplication of efforts performed
different units across the organization.
◦ The leadership that seems strong and efficient is
promoted.
DISADVANTAGES
◦ Delay in work

◦ Remote control

◦ No loyalty

◦ No Secrecy

◦ No special attention
- End -

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