Term
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Definition
is the ability to exert influence over objects, persons or situations.
It may or may not be formally conferred in an organisation in the form of legitimate authority. |
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Term
| types / sources of power (French & Raven) |
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Definition
legitimate
referent
reward
coercive
expert |
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Term
| legitimate power (French & Raven) |
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Definition
legitimate (position) power
formal organisational authority
purchasing officials have direct line authority over the members and activities of their department, section or team |
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Term
| referent power (French & Raven) |
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Definition
referent (personal) power
based on individual personality, charisma
via inspirational role modelling, persuasive influencing, trust / rapport in relationships etc |
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Term
| reward power (french & raven) |
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Definition
reward (resource) power
based on controlling rewards valued by others |
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Term
| coercive power (french & raven) |
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Definition
coercive (physical) power
based on ability to intimidate or threaten sanctions
generally dysfunctional in business, because only secures compliance (often with resistance, resentment, potential for broken relationship). |
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Term
| expert power (french & raven) |
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Definition
expert power
based on having knowledge recognised and valued by others
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Term
| situations leading to power |
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Definition
a purchasing manager has legitimate/position power (within own function);
expert power within the organisation (eg to set purchasing policy or advise on negotiations);
reward/resource power within the supply chain (through awarding contracts);
referent / personal power (through rapport with individual supplier representatives)
coercive / physical power may be used inappropriately to win concessions on contracts |
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Term
| expert power - potential source of political issues |
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Definition
potential source of political issues:
perception of undermining line authority; ivory tower advice;
territorial expansion by red tape etc >> need for scope / limitsto be clearly defined;
mutual line / expert respect fostered;
purchasing demonstrateawareness of strategic / operational objectives of internal customers. |
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Term
| expert power - staff authority |
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Definition
| staff authority - expert power of a specialist giving advice or guidance to another manager or department |
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Term
| expert power - functional authority |
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Definition
functional authority
expert given legitimate authority to direct the activities of line managers and departments in the area of his or her expertise (eg centralised purchasing on behalf of user departments, or imposing tendering procedures, standard forms etc for users). |
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Term
| reward power - over purchasing staff |
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Definition
| reward power over purchasing staff: control over pay and benefits, praise, promotion prospects, development opportunities, info etc |
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Term
| reward power - over suppliers |
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Definition
reward power - over suppliers:
control over contracts, recognition etc.
power stronger if supplier dependent on buyer for major proportion of income;
difficult for supplier to attract other buyers;
buyer perceived to have dierct control over decision.
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