Organizational Behavior Final
1. Power and Influence
Read this case: “Nab's Rogue Trader” (page 312).
1A. Power
The sources of contingency of power model applies to the situation described in case study 10.2 in McShane & Von Glinow (2010) book through legitimate and coercive sources of power and visibility and discretion contingencies of power. Whether power is used in an ethical (good) or unethical (bad) way power is still power. Power is defined by McShane & Von Glinow as “capacity of a person, team, or organization to influence others” (2010, pg. 290).
This ability to influence people is shown by Luke Duffy in the case study through mainly coercive power but also legitimate power. Duffy’s power was derived from legitimate power because of the position he held within National Australia Bank’s (NAB’s) foreign currency option desk. Duffy’s boss, Gary Dillon, enforced this legitimate power by keeping him this position. Legitimate power that Duffy receives is due to his agreement within the organization and originates from his formal job description and informal rules of conduct. In the case study, Dennis Gentilin who is Duffy’s subordinate, states that Duffy is one of the “untouchables” and is used to getting his way. Legitimate power does have limitations and Duffy gets around this issue by also using coercive power to control or influence the staff to do what he wants and stay loyal.
Duffy’s other source of power that he used to stay in his position was coercive power. By using his ability to apply punishment Duffy utilizes his coercive power. He does this several ways, one by inducing fear that he will use the punishment of transferring off his team and the other by mocking (bullying) them into submission. A good example from the case study is when it is explained how Duffy uses this mocking against a coworker in the London by making fun of him, which in turn kept the employee compliant. The employee did not want to be made fun of so the easiest way to make Duffy stop making fun of him
Read this case: “Nab's Rogue Trader” (page 312).
1A. Power
The sources of contingency of power model applies to the situation described in case study 10.2 in McShane & Von Glinow (2010) book through legitimate and coercive sources of power and visibility and discretion contingencies of power. Whether power is used in an ethical (good) or unethical (bad) way power is still power. Power is defined by McShane & Von Glinow as “capacity of a person, team, or organization to influence others” (2010, pg. 290).
This ability to influence people is shown by Luke Duffy in the case study through mainly coercive power but also legitimate power. Duffy’s power was derived from legitimate power because of the position he held within National Australia Bank’s (NAB’s) foreign currency option desk. Duffy’s boss, Gary Dillon, enforced this legitimate power by keeping him this position. Legitimate power that Duffy receives is due to his agreement within the organization and originates from his formal job description and informal rules of conduct. In the case study, Dennis Gentilin who is Duffy’s subordinate, states that Duffy is one of the “untouchables” and is used to getting his way. Legitimate power does have limitations and Duffy gets around this issue by also using coercive power to control or influence the staff to do what he wants and stay loyal.
Duffy’s other source of power that he used to stay in his position was coercive power. By using his ability to apply punishment Duffy utilizes his coercive power. He does this several ways, one by inducing fear that he will use the punishment of transferring off his team and the other by mocking (bullying) them into submission. A good example from the case study is when it is explained how Duffy uses this mocking against a coworker in the London by making fun of him, which in turn kept the employee compliant. The employee did not want to be made fun of so the easiest way to make Duffy stop making fun of him
References: McShane, S., & Von Glinow, M. A. (2010). Organizational behavior. (sixth ed.). New York: McGraw-Hill Irwin.