Power of Position in an Organisational structure

Introduction
Most Managers believes that authority, or position power is the most effective tool for influencing subordinate performance. Structure of organizations are therefore characteristically with authority in mind. Pyramidal structures make the exercise of authority easier. Pyramids create differences rank and status, and people in higher ranks can use their authority to influence lower ranks. As a result managers in organizations tend naturally to authority when a problem arises with the subordinates.

Both observation and systematic research, however suggest that the capacity to influence subordinates is derived not only from authority but also from other sources such as personality and expertise. Evidence from research also suggests that different type of power vary in their impacts of employee performance and satisfaction. Thus, managerial power appropriate from one type of work situation may not be appropriate for another.

Bases for Managerial Power
Much has been written on power and its classifications. One useful classification which identified five types of power: reward, coercive, legitimate, expert and referent.

Rewards power is based on manager’s control over organizational rewards, such as pay increase, promotion, favorable work assignment, increased status, formal recognition and more responsibility. Effective use of reward power demands two conditions. One, the manager must be able to deliver rewards such as higher wages, praise, or recognition that the sub-ordinates values. Two, the subordinate must believe that by confirming to the desires of manager he will reap this reward.