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The final exam question reads:
Power
played a significant role in the video "Final Offer". From French and Raven's conceptualization
of the bases of power, give examples (from the video) of three different bases of power.
Give two examples (from the video) of the Dependency Theory of Power.
There are several ways of looking at
this question. I propose that one useful approach might be to look at the major
players/actors in this real life drama. By doing so, you ought to be able to examine and
describe the relationships, and specifically, the power relationships between these people
or groups.
Let's list some of the key parties
first:
- Roger Smith, CEO of General Motors
- Rod Andrews, Chief Negotiator for GM
in Canada
- Fred, the Shop Foreman at the GM
assembly plant in Oshawa
- Owen Bieber, President of the UAW
(United Autoworkers Union)
- Bob White, Canadian Director of the
UAW
- Other (American) Directors of the UAW
- Danny Johnson, the amateur
weightlifter in the Oshawa plant
- The Committee Man (shop steward); the
union representative on the shop floor in the Oshawa assembly plant
- The workers in the Oshawa GM assembly
plant
Bases of Power (French and Raven)
Now let's use the French and Raven
conceptualization to examine the power some of these people have:
- Legitimate Power: Any
of the actors who hold positions of authority in any of the main organizations (in this
case, GM, the UAW, and the Canadian branch of the UAW) have varying degrees of power based
on legitimacy. For example, Roger Smith holds his positions because he has been hired by
the GM Board of Directors. These directors are elected by the shareholders. Hence, some of
Roger Smith's power is based on the legitimacy of his position: the shareholders have
"given" him the power to "manage" the General Motors Corporation. By
virtue of "delegation of authority", Rod Andrews also has power based on
legitimacy. Further down the line, Fred the foreman also has power based on legitimacy.
Whatever we have just said about
Roger Smith above, may also be said about both Owen Bieber, Bob White, and all the elected
union executives who sit on the union's Master Bargaining Committee. Because these people
are elected by the union membership, they have power that derives from legitimacy. Their
positions and the responsibilities and authority inherent in their positions are defined in
the union's constitution. On the union side of things, this legitimacy extends to the
Committee Man on the shop floor.
The relationship between Bob and Owen
is also interesting when viewed from the perspective of legitimacy-based power. Through
the union electoral process, Owen is Bob's superior. That is, Owen has legitimate power
over Bob. For example, Owen can determine whether or not Bob can take his Canadian UAW
members out on strike. What is interesting in this video is that, at one point, Bob makes
it clear that he must defy Owen -- given that he has an overwhelming strike mandate, Bob
feels that he cannot obey Owen's suggestions that he not go on strike. However, to defy
Owen is to engage in an "illegal" act. We say "illegal", not because
it is illegal according to the laws of the land, but because such an act would be contrary
to the union's constitution. Such an act would be mutinous. Of course, in the end, this is
exactly what happened; the Canadian workers broke away from the UAW to form the CAW
(Canadian Auto Workers).
Coercive Power:
Power based on coercion is relatively rare in modern corporations. We are given
interesting insight into this by Fred the foreman. Fred explains that, "in the old
days", foremen used to be able to give workers, who were not performing to the
management's satisfaction, more unpleasant jobs as a form of punishment. He then states
that union contracts have more or less put an end to this practice (you may wish to
consider this example when thinking about politics in the
organization -- getting or maintaining the power to direct activities in an
organization).
The rarity of coercion-based power in
modern organizations can be attributed, in part, to the power of unions in places like
Japan, Western Europe, and North America. In the political battle over governance on the
shop floor, collective bargaining agreements have largely curtailed managements' abilities
to punish workers. This, of course, restricts managements' abilities to influence their
workforce (their power is reduced). Unions' justifications for this reduction in
managements' power lies in the assertion that workers ought not to be subject to seemingly
arbitrary and capricious punishment. Collective bargaining agreements thus put systems of
progressive discipline into contract -- both parties, workers and managers, can thus
appeal to a system of organizational jurisprudence. Unilateral managerial power has
therefore been replaced by bilateral (and trilateral, if government agencies become
involved) policy-making power.
- Reward Power: An
interesting perspective on power based on the ability to reward, is how that power is
diminished in a unionized environment. In the on-going political battle over how the shop
floor is "governed", unions have managed to have promotion and remuneration
policies codified in the collective bargaining agreement. The consequence is clear. Since
management is curtailed in its ability to reward, its power has also been curtailed. In
that sense, neither the management nor the union have reward-based power over the
employees insofar as promotions or raises are concerned.
This inability to reward deserving
employees (according to most collective agreements, all employees doing the same job are
compensated equally, and promotions are based on seniority) is a restraint on
"management's right to manage" and an irritant or even a de-motivating factor to
individual employees who are particularly diligent or talented. Such collective agreement
provisions seemingly violate principles of equity (see Equity
Theory of Motivation). However, from a union perspective, these provisions were
intended to ensure equity. That is, these contract provisions are designed to eliminate
favoritism. Promotions or raises based on favoritism would also violate principles of
equity and lead to the de-motivation predicted by the Equity
theory of Motivation.
- Expert Power: In
modern organizations, most influence (power) is expert-based. The workers on the assembly
line in the Oshawa GM plant may accede to Fred's (the foreman) requests because of his
legitimacy-based power or his coercion-based power, but it is more likely that they
respond positively when his requests are based on his perceived expertise in the area of
automobile assembly. In fact, we know that when Fred exercised his coercion-based power --
to speed up the line or to force Danny Johnson to move -- the workers resisted and the
ultimate response was a grievance filed against the company. However, given that
automobiles do, in fact, get made in Oshawa (contrary to the impression we may have been
given by the video), we must assume that most of the time, Fred is, in fact, able to
manage and "influence" his subordinates.
When Bob White faces the members of
the Master Bargaining Committee, part of his power over them is expert-based. Bob is privy
to information that they do not have (he has meetings with Rod Andrews at which they are
not present). In influencing these people, Bob uses phrases such as "He told me
that... [certain actions] would result in the closure of Canadian plants." Given his
access to this information, he can influence members of the committee (he has power) to
accept his proposal -- the members respond to his expertise.
- Referent Power: This
video does not give too many examples of referent-based power. However, one of the opening
comments by the narrator gives perhaps the best summery of referent-based power in this
video. As we view workers leaving the Oshawa GM assembly plant, the narrator informs us
that Bob White has become somewhat of a hero to these men, and that when he asks them for
a strike vote, the result is more or less a foregone conclusion (greater than 90% in favor
of strike). As a "hero", Bob White has referent power over these men.
Dependency Theory of Power
The video is replete with examples of
the Dependency Theory of Power. The theory states that "Party 'A' has power over
party 'B' if 'B' is dependent on 'A'". The conditions of dependency are: importance,
scarcity, and non-substitutability.
In our examination of the video,
let's begin with the relationship between the UAW (personified by Owen Bieber) and its
Canadian division (personified by Bob White). If Bob White is to take the Canadian workers
out on strike, he needs access to the UAW's $500,000,000 strike fund -- he is dependent on
Owen Bieber. Hence, Owen has power over the Canadian workers. In classic bargaining style,
in a conversation with Owen, Bob seeks to minimize Owen's perception of the power he has
over the Canadians. In this conversation, Bob informs Owen that he has some financial
backing from the Canadian Labor Congress (CLC). In fact, Bob has no such financial
support. The statement, however, seeks to disabuse Owen of the notion that he has power
over Bob and his Canadian supporters. Bob is stating that there is, in fact, a substitute
for Owen's financial resources.
At a macro level, the dependency
relationship is played out in negotiations between Bob White and Rod Andrews. For example,
Bob contends that General Motors needs the UAW workers to run its factories. Bob is, in
essence, saying that he has power over GM. By the same token, Rod uses the dependency
relationship when he threatens Bob with the closure of Canadian assembly facilities if
Bob's demands are too extravagant. Rod exerts power by clearly delineating the dependence
Canadian workers have on the jobs provided by GM's on-going profitability. In their
point-counterpoint arguments, Bob and Rod rely on statements which focus on the importance
and/or the scarcity of the resources they control.
In the discussions we saw in the
video, neither sought to invoke the argument that there were substitute resources
available. However, whenever the issue of "contracting out" is discussed during
collective bargaining, substitutability is exactly what that argument is all about. Unions
usually resist managements' attempts to expand contracting-out provisions in collective
agreements for reasons having to do with power. With liberal contracting-out provisions,
management can claim less dependence on its unionized workforce (hence, the union has less
power). Conversely, unions generally seek to curtail managements' abilities to contract
out. The more the union can assert that there is no substitute for the labor its members
provide, the more power it will have.
When the workers in the Oshawa plant
engage in a wildcat strike (wildcat strikes are illegal strikes during the term of a
contract or strikes taken without the mandatory "notice" period as stipulated in
labor legislation), they are attempting to exert pressure on GM at the bargaining table.
They are demonstrating how dependent GM is on their labor because the shutdown of the
plants costs GM millions of dollars in lost productivity.
Within the union itself, dependency
is evident in the relationship between the membership and the executive. As democratically
elected officials of the union, the executive is dependent on the votes of the rank and
file membership for continued tenure. As the narrator informs us, these executives would
be back on the assembly line, driving bolts, if they didn't bring the members the kind of
collective agreement they were looking for. The members thus have the power to influence
the executives' behaviors. The executives, wishing to hold on to their positions would be
very reluctant to "sell out" their members by way of an unsatisfactory agreement
given their knowledge that doing so would mean their own loss of "privilege".
This vote-dependent power underscores
an interesting conundrum faced by most union leaders as they prepare to engage in
collective bargaining. In order to show management that they have power, they must have a
credible strike threat. Thus, they need to get strong strike vote from the union members.
In order to attain this overwhelming support, they often promise their members significant
improvements in their terms of employment. However, during the course of negotiations,
demands must be modified and often reduced. Then, when the executive finally arrives at an
agreement with management that is less than they "promised" their members, they
must convince these members that this agreement is indeed the best that they can do. They
then face the raised expectations they themselves fostered in their efforts to get out a
strong strike vote. In order to maintain their status as union executives, they are again
dependent on the votes of the union membership.
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