Enhancement of Human Resource through Leadership Power

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1 Enhancement of Human Resource through Leadership Power Prof. S.Balakumaran MBA., (PhD), Assistant Professor, Institute of Management Studies, R V S College of Engineering & Technology, Dindigul Mr.S.N.Balaji, Chairman, Aishwariyam Institute of Airline & Airport Management, Dindigul Abstract: Leadership is one of the personalities which a human will show interest in developing it. For being a good leader certain powers should be followed. This article will clearly picture the powers which are needed by the person for being an effective & efficient leader. There are five major powers which is utilized or used by the leaders, they are as follows: 1. Reward Power 2. Legitimate Power 3. Expert Power 4. Referent Power 5. Coercive Power To get the work done by others is leadership. It s the leader responsibility to understand for using the powers depending upon the subordinates. Keywords: Leadership, Management, Human Resource, Powers Introduction: A leader is one who knows the way, goes the way, and shows the way. John Maxwell Leadership is a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task". Leadership is "organizing a group of people to achieve a common goal". The leader may or may not have any formal authority. Studies of leadership have produced theories involving traits, situational interaction, function, behavior, power, vision and values, charisma, and intelligence, among others. Somebody whom people follow: somebody who guides or directs others. There are five basic powers which were identified by John French and Bertram Raven in the early 1960 s through a study they had conducted on power in leadership roles. The study showed how different types of power affected one s leadership ability and success in a leadership role. The five bases of power are divided in two categories 1. Formal Power 2. Personal Power Power means many different things to different people. For some, power is seen as corrupt. For others, the more power they have, the more > RJCBS: Volume: 02, Number: 08, June-2013 Page 41

2 successful they feel. For even others, power is of no interest at all. These five distinct bases of powers of a leader are legitimate, reward, coercive, expert and referent. Reward Power: A leader who provides more rewards for their subordinates will get more power as reward from them. This type of power involves having the ability to grant another person thing which that person desires or to remove or decrease things the person does not desire. Present subordinates with outcomes that the subordinate regards in a positive manner. This type of power is based on the idea that we as a society are more prone to do things and to do them well when we are getting something out of it. Social exchange theorists as well as Power-Dependence theorists continue to focus on the idea of reward power. The most popular forms are offering raises, promotions, and simply compliments. One of the frustrations with using rewards is that they often need to be bigger each time if they're to have the same motivational impact. Even then, if rewards are given frequently, people can become dissatisfied by the reward, such that it loses its effectiveness." In Group Dynamics Forsyth described this distinction as: "Impersonal rewards are material resources, such as food, shelter, protection, promotion, wages and awards. Personal rewards are positive interpersonal reinforcements, such as verbal approbation, compliments, smiles, and promises of liking or acceptance." Organizations are motivated by rewards, giving a reward power to push organizations to excel. When an organization knows that it will be rewarded for the efforts it gives, then it will be more likely to strive for success. Money is a great reward that gives a certain power over organizations. When offered a reward, power is held over the organization because the organization is being pushed towards success. A reward is a great incentive. Reward power is conveyed through rewarding individuals for compliance with one s wishes. This may be done through giving bonuses, raises, a promotion, extra time off from work, etc. For example, the supervisor who provides employees comp time when they meet an objective she sets for a project. Legitimate Power: Legitimate power comes from having a position of power in an organization, such as being the boss or a key member of a leadership team. This power comes when employees in the organization recognize the authority of the individual. Legitimate power comes from the authority of your rate and position in the chain of command. Although legitimate power increases with added responsibilities, you can decrease that power if you fail to meet all of your responsibilities. For example, the CEO who determines the overall direction of the company and the resource needs of the > RJCBS: Volume: 02, Number: 08, June-2013 Page 42

3 company. "Rewarding and Punishing subordinates is generally seen as a legitimate part of the formal or appointed leadership role and most managerial positions in work organizations carry with them, some degree of expected reward and punishment." People traditionally obey the person with this power solely based on their role, position or title rather than the person specifically as a leader. Therefore this type of power can easily be lost and the leader does not have his position or title anymore. This power is therefore not strong enough to be one's only form of influencing/persuading others. To increase your legitimate power, assume some of the division officer s responsibilities. At first, the division officer will be glad to have the help. In time, the division officer will view the responsibilities as yours and formally delegate additional authority to you. That would increase your legitimate power without diminishing the power of the division officer. Just as you can increase your legitimate power by assuming more responsibility, you can decrease that power by losing responsibility. For example, if you permit the division officer to assume some of your responsibilities, the division officer will eventually begin to view your responsibilities as his or hers. You will then have less legitimate power. However, when a subordinate wishes to assume some of your responsibilities, formally delegate those responsibilities to the subordinate. That makes the subordinate accountable to you. You then increase the subordinate s power while retaining your power. Coercive Power: This type of power is based upon the idea of coercion. The main idea behind this concept is that someone is forced to do something that he/she does not desire to do. The main goal of coercion is compliance. The power of coercion has been proven to be related with punitive behavior that may be outside one's normal role expectations. However coercion has also been associated positively with generally punitive behavior and negatively associated to contingent reward behavior. Coercive power is the opposite of reward power, and is based on the ability of the individual to sanction (punish) or prevent someone from obtaining desirable rewards. Rewards and punishment are powerful motivational tools, and leaders are generally better served by the exercise of reward power than by the exercise of coercive power. Coercive power is conveyed through fear of losing one s job, being demoted, receiving a poor performance review, having prime projects taken away, etc. This power is gotten through threatening others. For example, the Vice President of Sales division threatens sales folks to meet their goals or get replaced. Coercive power results from the expectation of a negative reward if your wishes are not obeyed. For example, suppose you have counseled a subordinate twice for minor infractions of regulations. At the third counseling session, you threaten the subordinate. At the next occurrence of the un-desirable behavior, you place the subordinate on report. Coercive power works, but is not the preferred method of leading subordinates. It works best if used when all else fails and you feel sure you can carry through with a threat. Before giving a threat, you should have some insight as how to handle the case. This source of power can often lead to problems and > RJCBS: Volume: 02, Number: 08, June-2013 Page 43

4 in many circumstances it involves abuse. Expert says that "coercive power can cause unhealthy behavior and dissatisfaction in the workplace". This type of leader relies on the use of threats in their leadership style. Often the threats involve saying someone will be fired or demoted. Expert Power: Expert power comes from one s experiences, skills or knowledge. As a consequence of the expert power or knowledge, a leader is able to convince his subordinates to trust him. The expertise does not have to be genuine - it is the perception of expertise that provides the power base. When individuals perceive or assume that a person possesses superior skills or abilities, they award power to that person. As we gain experience in particular areas, and become thought leaders in those areas, we begin to gather expert power that can be utilized to get others to help us meet our goals. For example, the Project Manager who is an expert at solving particularly challenging problems to ensure a project stays on track. Expert power comes from your knowledge in a specific area through which you influence others. You have expert power because your subordinates regard you as an expert in your rating. Subordinates may also have this type of power. When you combine expert power with other types of power, you will find it an effective tool in influencing others. However, when you use it by itself, you will find it ineffective. Expert power derives from having knowledge that is valued by the organization or individuals with whom the person interacts. Expertise in a particular field or at problem solving or at performing critical tasks is types of expert power. Expert power is personal to the individual who has the expertise; hence it is different from the other three sources of power previously mentioned. However, the possession of expert power may be the basis for rising to a management position in the area of the expertise, now providing the incumbent with expert power as well that legitimate, reward and coercive power. Referent Power: The power of holding the ability to administer to another a sense of personal acceptance or personal approval. This type of power is strong enough that the power-holder is often looked up to as a role model. This power is often regarded as admiration, or charm. The responsibility involved is heavy and the power easily lost, but when combined with other forms of power it can be very useful. Referent power is commonly seen in political and military figures, although celebrities often have this as well. Referent power derives from your subordinates identification or association with you. You have this power by simply being "the chief." People identify with the ideals you stand for. The chief has a pre-established image. You can enhance that image by exhibiting charisma, courage, and charm. An improved image increases your referent power. Always be aware of how others will perceive your actions. A negative image in the eyes of others will lessen your power and render you ineffective. Maintain a positive image! Referent power results when the individual engenders admiration, loyalty and emulation to the extent that the person gains the power to influence other. Charismatic leaders have > RJCBS: Volume: 02, Number: 08, June-2013 Page 44

5 referent power. They have a vision for the organization that they lead, strong convictions about the correctness of the vision, and great confidence in their ability to realize the vision, and are perceived by their followers as agents of change. Referent power is derived from the interpersonal relationships that a person cultivates with other people in the organization. People possess reference power when others respect and like them. Referent power arises from charisma, as the charismatic person influences others via the admiration, respect and trust others have for her. Referent power comes from being trusted and respected. We can gain referent power when others trust what we do and respect us for how we handle situations. For example, the Human Resource Associate who is known for ensuring employees is treated fairly and coming to the rescue of those who are not. Conclusion: Power is a neutral tool which can be used for positive or negative outcomes. I found from my research that when power is treated as an opportunity to do good for others and the organization, everyone benefits. In many aspects power is like love, the more it is shared, the more it grows. Many managers have trouble sharing power for fear they are giving away a scarce resource and once power is given away it is lost. Good leadership is of primary importance in that it provides the motivating force which leads to coordinated action and unity of effort. Personnel leadership must be fused with authority since a leader must encourage, inspire, teach, stimulate, and motivate all individuals of the organisation to perform their respective assignments well, enthusiastically, and as a team. Leadership must ensure equity for each member of the organization. Concerning actions in his or her area of responsibility, the leader should never allow a subordinate to be criticized or penalized except by him or herself or such other authority as the law prescribes. I always appreciated the words of Harry Truman..."when your term of public office is over you put away the tools (power) the public has given you since the tools are not for your personal use but rather to help you do your job"...or words to that effect...this is my interpretation. I think managers think they are the power in much the same way that politicians believe they have the power rather than the "tools" to do their job. When managers think they have positional power because of who they are rather than the position they hold in the organization, they are headed for trouble. References: 1. Aguinis, H., Nesler, M. S., Quigley, B. M., & Tedeschi, J. T. (1994). Perceptions of power: A cognitive perspective. Social Behavior and Personality, 22(4), Barnard, C. (1938). Functions of the executive. Cambridge, MA: Harvard University Press. 3. Brown, M. T. (2006). Corporate integrity: Rethinking organizational ethics and leadership. New York, NY: Cambridge University Press. 4. Carson, P. P., Carson, K. D., & Roe, C. W. (1993). Social power bases: A meta analytic examination of interrelationships and outcomes. Journal of Applied Social Psychology, 23(14), Craig, C. S., & Douglas, S. P. (2006). International marketing research (3rd ed.). New York, NY: Wiley. 6. DuBrin, A. J. (2009). Political behavior in organizations. Thousand Oaks, CA: Sage. 7. Finkelstein, S. (1992). Power in top management teams: Dimensions, measurement, and validation. Academy of Management Journal, 35, > RJCBS: Volume: 02, Number: 08, June-2013 Page 45

6 8. Flynn, G. (2011). Leadership and business ethics. New York, NY: Springer. 9. French, J. R. P., & Raven, B. (1959). The bases of social power. In D. Cartwright (Ed.), Studies of social power (pp ). Ann Arbor, MI: University of Michigan, Institute for Social Research. 10. Gibson, J. L, Ivancevich, J. M., Donnelly, J. H., & Konopaske, R. (2012). Organizations: Behavior, structure, processes (14th ed.). New York, NY: McGraw-Hill Irwin. 11. Greenberg, J. (2011). Behavior in organizations. Upper Saddle River, NJ: Prentice Hall. 12. Haugaard, M., & Clegg, S. (2012). Power and organizations. Thousand Oaks, CA: Sage. 13. Huber, V. L. (1981). The sources, uses, and conservation of managerial power. Personnel, 51(4), Kreitner, R., & Kinicki, A. (2010). Organizational behavior (9th ed.). New York, NY: McGraw-Hill Irwin. 15. Kudisch, J. D., Poteet, M. L., Dobbins, G. H., Rush, M. C., & Russell, J. E. A. (1995). Expert power, referent power, and charisma: Toward the resolution of a theoretical debate. Journal of Business and Psychology, 10, Luthans, F. (2011). Organizational behavior (11th ed.). New York, NY: McGraw-HillIrwin. 17. Mabey, C. (2001). Closing the circle: Participant views of a 360-degree feedback program. Human Resource Management Journal, 11, McClelland, D. C., & Burnham, D. H. (2003). Power is the great motivator. Harvard Business Review, 81(1), McLean, B., & Elkind, P. (2003). The smartest guys in the room: The amazing rise and scandalous fall of Enron. New York, NY: Penguin Group. 20. McShane, S. L, & Von Glinow, M. A. (2011). Organizational behavior (5th ed.). New York, NY: McGraw-Hill Irwin. 21. Mossholder, K. W., Bennett, N., Kemery, E. R., & Wesolowski. (1998). Relationships between bases of power and work reactions: The mediational role of procedural justice. Journal of management, 24(4), Price, T. L. (2009). Leadership ethics. New York, NY: Cambridge University Press. 23. Robbins, S. P., & Judge, T. A. (2011). Organizational behavior (14th ed.). Upper Saddle River, NJ: Pearson. 24. Tosi, H. L., Misangyi, V. F., & Fanelli, A. (2004). CEO charisma, compensation, and firm performance. Leadership Quarterly, 15(3), Tracy, D. (1990). The power pyramid: How to get power by giving it away. New York, NY: HarperCollins. 26. Tracy, D. (1991). Ten steps to empowerment. New York, NY: HarperCollins. 27. Tracy, D. (2001). Take this job and love it: How to turn the job you have into the job you want. Naperville, IL: Sourcebooks. 28. Zaccaro, S. J., Rittman, A. L., & Marks, M. A. (2001). Team leadership. Leadership Quarterly, 12(4), Zaccaro, S. J. (2007). Trait-based perspective. American Psychology, 62 (1), Zaleznik, A. (1977) "Managers and Leaders: Is there a difference?", Harvard Business Review, May June, > RJCBS: Volume: 02, Number: 08, June-2013 Page 46