Asked by Marlon Amador on Jun 09, 2024

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Suppose you have formal authority to allocate performance bonuses to your employees.What contingencies must exist before this source of power will translate into actual power?

Performance Bonuses

Additional compensation awarded to employees based on the achievement of specific performance criteria.

Formal Authority

The power or right vested in an individual or role within an organization to make decisions, direct others, and enforce rules.

  • Comprehend the idea of power in organizational environments and its roots.
  • Implement insights on power and influence within actual organizational scenarios.
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Terrence KrugielkiJun 14, 2024
Final Answer :
This question requires students to consider all four contingencies of power and to apply these concepts to this situation.
Nonsubstitutability.Employees cannot receive performance bonuses from any other source; for example, another supervisor cannot give the same bonuses to the same employees.
Centrality.The performance bonus decision significantly affects employees.For example, power would increase as the performance bonus represents a larger percentage of each employee's paycheck; your power would also increase with the number of employees affected by your reward decisions.
Discretion.Your potential power increases with the extent that bonus allocation decisions are non-programmed, that is, there are no clear guidelines or procedures to direct the decision.
Visibility.Your potential power increases with the extent that employees realize that you (rather than regimented procedures or other people in the organization) determine the size of their performance bonus.