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Contingency approach of power suggests that no particular power base is effective in all situations; rather, effectiveness of power base depends on its matching the situational requirements prevailing at the time of use of power.

Contingency variables that affect power effectiveness:

Agent's Characteristics: The agent characteristics determine the extent to which power exercised by him will be effective or not. An agent may exercise power in both directions, downward or upward. Therefore it is not necessary that the agent always functions as superior: he may be a subordinate and influences his superior's behaviour. Two characteristics of an agent affect power effectiveness:

1. Organisational Position:Organisational position of an agent determines his positional power. In a traditionally designed organisation structure with a large number of hierarchical levels, a person at a higher level commands more power bases than a person at a lower level. Thus, people at higher level can use positional power more effectively to get things done.

2. Personality Characteristics: It has been observed that people working at the same hierarchal level in the same organisation differ in terms of power use; some people become more effective in power use, others remain less effective. Following conclusions about personality characteristics and power effectiveness can be drawn:

· People with high mach score (high mach score means high willingness to twist and turn facts to influence other) tend to use coercive power and information power more effectively than those with low mach score.

· More conscientious people use legitimate and reward power more effectively than less conscientious people.

· People with self-esteem rely more on personal power than their positional power. This happens because such people develop expertise and other relevant skills to protect their high self-esteem.

· People with high openness and extroversion tend to use personal power more effectively than other people.

Target's Characteristics: Power effectiveness based on agent's characteristics is moderated by target's characteristics because power involves a reciprocal relationship between the agent and the target. Therefore, any power used by the agent will be effective or ineffective depending on the influencibility of the target. This influencibility is affected by the following factors:

o Dependency: Dependency of the target depends on the resources controlled by the agent. If the dependency is high, power influence will be high or vice-versa.

o Uncertainty: Certainty or uncertainty in the mind of the agent about appropriateness of his behaviour determines his influencibility.

o Personality: There are various research studies show relationship between personality and influencibility. For example, people who cannot tolerate ambiguity or who are highly anxious are more susceptible to influence.

o Intelligence: Though there is no conclusive proof about direct relationship between intelligence and influencibility, it has been observed that more intelligent people are less susceptible to influence generated by positional power.

o Culture: Characteristics of culture to which targets belong affect their influencibility. For example, people coming from a culture which is oriented to authority are highly susceptible to influence while people coming from a culture having low authority orientation are less susceptible to influence.

Organisational Characteristics: Power relationship between agent and target does not exist in a context; in the society, in social context, in the organisation, organisational context. Therefore, in organisational context, power relationship between the agent and the target based on their characteristics is modified, to a great extent, by the organisational characteristics. The major organisational factors that affect power relationship are:

1. Organisation Structure:Organisation structure prescribes relationship among different positions. Since these positions are held by individuals, organisation structure prescribes relationship among different individuals.

2. Nature of Task: Nature of task in terms of autonomy and visibility affects power relationship. Degree of autonomy indicates whether the task performance is autonomous or it is dependent on others. Task that have autonomy have in-built power for task performance. Visibility of task determines its power. For example, marketing function in a business organisation has high visibility and, therefore, more power; human resource function has low visibility and less power.

3. Performance Evaluation and reward system: Irony is that performance evaluation is done not by those who perform but by those who have control over reward distribution. If this performance evaluation and reward system if faulty, task performers are highly susceptible to power influence.

4. Organisational culture: Organisational culture is the set of assumptions, beliefs, values, and norms that are commonly shared by organisational members. Organisational culture is, perhaps, the most important factor that affects management practices including power relationship among organisational members. Every organisation sets its culture, either explicitly or implicitly to be identified by the behaviour of people, more particularly those who are at higher levels.

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