RE: Week 1 Discussion

Organizational Behavior Final Paper Xiaoran Zheng Keiser University Dr. Kevin Cojanu MAN571 10/26/2014 Case1, Power and Influence National Australia Bank (NAB) rogue trader Luke Duffy and his colleagues created losses of 350 million, thanks in part of Duffys power and influence tactics. Power is the capacity of a person, team, or organization to influence others. The five sources of power are Legitimate, Reward, Coercive, Expert and Referent. Legitimate power is Agreement that people in certain roles can request certain behaviors of others, it also based on job descriptions and mutual agreement from those expected to abide by this authority. Legitimate power range (zone of indifference) is higher in high power distance cultures. Reward power has Ability to control the allocation of rewards valued by others and to remove negative sanctions, and it operates upward as well as downward. Coercive power has Ability to apply punishment, and it exists upward as well as downward. For example, Peer pressure is a form of coercive power. Expert power means Individuals or work units capacity to influence others by possessing knowledge or skills that they value. Employees gaining expert power over companies in knowledge of economy. Referent power Occurs when others identify with, like, or otherwise respect the person. And it always associated with charismatic leadership. Contingencies of power are the process of sources of power turn to power over others, its substitutability, centrality, discretion and visibility. Some of historys earliest characterizations of leaders concerned their use of power. Current scholars have also emphasized the need to the conceptualize leadership as a power phenomenon. Many people use the terms power, influence, influence tactics synonymously, but it is useful to distinguish between them. Power is the potential of an individual (or group) to influence another individual or group it is the capacity to cause change. While we usually think of power