When I was nineteen years old I was working at a call center for XM radio. We took calls all day everyday as any other call center would. We would take calls concerning loss of service, bill payments, and a number of other things but most importantly we needed to sell. While I was reading the power and influence chapter I remembered the incredible amount of stress we were under when I worked at the call center. Our supervisor was always over us making sure we were trying and actually selling.
There are five sources of power: expert, referent, reward, coercive, and legitimate. Expert power is one that a professor might use to influence his students (Richard, 1993). It is being knowledgeable about something and using that knowledge (Richard, 1993). Referent power is used when there is a strong or good relationship between leader and follower (Richard, 1993). Legitimate power is power attached to a title or formal authority (Richard, 1993). A police officer, principal, and judge are but a few with legitimate power. Having legitimate power does not equate to good leadership (Richard, 1993). When leaders can reward by giving raises or day offs to yield influence they are using reward power (Richard, 1993). This takes me back to the days of trying to sell ten radios a day in order to get a bonus at the end of the month. We all wanted a bonus at the end of the month but we actually preferred skipping out on it if it meant being left alone (Richard, 1993). Using reward power can be effective but in my situation it was exhausting and obvious. This was the main form of power used by supervisors at the call center. We had one goal which was to sell radios and that’s it. We didn’t have time to build strong relationships so the use of referent power was limited (Richard, 1993). Rewards produced compliance but not commitment (Richard, 1993). We had an incredible high turn over rate because people would become frustrated with the high emphasis on sales. The most common used tactic was pressure. Pressure tactics are threats and constant reminders (Richard, 1993). We had a big chart with the names of employees and next to the names the number of radios sold. This was a constant reminder of how poorly or good we were doing. To make matters worse it was publicized for everyone to see. I have to acknowledge that the supervisors using reward power through pressure tactics were also subjected to the same treatment.
Working at XM radio was incredibly stressful. I dreaded not selling radios every single day. The reward power used was more harmful that useful as we all felt manipulated (Richard, 1993). Most leaders use a combination of power sources when appealing to their followers (Richard, 1993). It is difficult to use only one source of power. However at XM radio the most prominent one was definitely reward power. The pressure tactics only made matters worse and contributed to the stressful environment. The supervisors weren’t given many tools to lead other than the rewards the resorted to.
Works Cited
Richard, H. (1993). Power and Influence. In H. Richard, Leadership: Enhancing the Lessons of Experience (p. 24). Homewood: Irwin.
Nicholas Davis says
The pressure sales environment you described is unfortunately prevalent in many other organizations. This “toxic high-pressure sales culture”, as Chris Arnold of National Public Radio (NPR) described it, has shown to be detrimental to the organization and their workers. A good example would be the recent discovery of illegal sales practices being performed by Wells Fargo bank employees (Arnold 2016). Similar to your situation, the bank employees were given a sales goal to meet each day (Arnold, 2016). The established sales goals were considered by some people to be unrealistic (Arnold, 2016). When the sales goals were not meet, then the leaders within the sales departments would use coercive power to intimidate and threaten the sales employees into selling more (Arnold, 2016). After verbally reprimanding an employee in front of the other sales workers, leaders would then take them into a conference room where they would threaten to fire them (Arnold, 2016).
The constant negative feedback from the overused coercive power created a work environment that actually made employees physically and mentally sick (Arnold, 2016). Some sales employees turned to illegal sales practices as a way to meet the demanding sales goals (Arnold, 2016). The fear that was instilled in sales workers by the leaders’ use of coercive power pushed them to behave in way that should have been unacceptable, however in this situation the illegal behavior was supported by the leaders (Arnold, 2016). As noted by Hughes et al. (1993), coercive power can provide an effective means of influencing others (p. 119). However, the situation and the followers will dictate the appropriate use of coercive power (Hughes et al., 1993, p. 119). To be an effective leader, all sources of power should be considered and each used in an appropriate manner to provide the capacity to influence others (Hughes et al., 1993, p. 120)
References:
Arnold, C. (2016). Former Wells Fargo Employees Describe Toxic Sales Culture, Even At HQ. National Public Radio (NPR). Retrieved from http://www.npr.org/2016/10/04/496508361/former-wells-fargo-employees-describe-toxic-sales-culture-even-at-hq
Hughes, R., et al. (1993). Power and Influence. Leadership: Enhancing the Lessons of Experience. (pp. 107-131). Homewood, IL. Irwin.