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The "business system," that totality of all businesses in a nation or the world, is said to be one of the most powerful institutions known to humankind. The other major candidates for this honor are typically government and the military. One of the most often repeated accusations about large businesses is that they have too much power. It is also claimed that they abuse this power. Business power is the ability to produce an effect-to get things done and to bring about its desired state of affairs. It's about business getting its way. One way of thinking about business power is to frame it in terms that analysts have claimed are relevant in understanding power. John French and Bertram Raven have argued that business has five types of power: coercive power, legitimate power, reward power, referent power, and expert power. Each of these may be thought of from the perspective of a large business. Coercive power occurs when a manager in authority forces someone to do something-usually with some threat of punishment. Legitimate power exists when a person in the chain of command has a title or position that implies he or she has the authority to take some action. Reward power is manifested when a boss uses rewards to get things done. The rewards may not only be monetary, such as pay increases and promotions, but may also be psychological, such as praise. The flip side of reward is punishment and it is part of reward power as well. Referent power is gained by leaders due to others admiring him or her as a role model. Finally, Expert power arises when someone becomes highly regarded due to their superior training, expertise, and/or experience.
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2. Is business power too great? Does business abuse its' power?
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