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Agency source of power has to do with the power to make decisions on the use of the agency’s human and material resources. This includes the restructuring of the organization, changing staff schedules, unbundling of production process or entering into strategic partnership for the purpose of improving quality of goods and services and/or empowering clients.
Closely related to agency source of power is legitimate power. This is the power one has by virtue of his position in an organization. Having legitimate powers means having authority or control over the behaviours and performances of others. The president of a company has legitimate power over all other employees of the company. He can give every other person orders and expect him/her to obey.
Expert power is the power that even individuals at the lower levels of the organizational structure can acquire and accumulate. The possession of superior knowledge, ideas, skill, experience and abilities, and how these are used can earn one reputation and power. An employee with expert power is a master in his professional niche and he can use the power s/he accumulates to sway others into taken decisions that affect the overall functioning of the organization.
Until my employment, the company I am working with was into hotel business. It nearly crumbled due to superior competition. The business was sustained with returns from the president’s plantation. The ‘management’ of the hotel was then lead by a president and had two-level organizational structure. No line managers. No board meetings. It was small. Every employee reported to the president. Two of the four senior employees were sons of the president. They were presidents-in-the-waiting. The business was on the verge of been mismanaged as family business if not for the president’s foresightedness. He knew his children were incapable of managing the inherited business. The hotel needed

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