Power and Influence

Power and influence normally reside in a company’s Board of Directors. The people who get to sit in the Board have the power to decide on the company’s present problems and future plans. However, it is also not unusual that specific members of the Board hold more power and exhibit more influence due to their positions in operating and running the business/company.

In the case of Rural Bank of Galvez, it appears that three members exude more power and influence over the other four members. Using the Model of Power and Influence, the sources of personal power and position power of these members can be analyzed:

a. Miguel Zarate – Chairman of the Board

The Chairman’s source of personal power could come (but not solely) from personal attraction and legitimacy. If he was elected to be the chairman of the Board, then he must have exhibited a sense of leadership, inspiration, and vision. Such positive attributes attract support and harmony. Since this person exhibits likeable behavior, he does not court conflict or harsh confrontation, but rather uses amiable and morale-boosting methods in demonstrating his power in the company.

As Chairman, his power is also dictated by the centrality and criticality of his position. Heading a Board of Directors necessitates being at the center of the information and communication network. Moreover, his position is critical because he is expected to exhibit wisdom and good judgment in protecting the interest of all the stockholders in instances where the decisions are at a stand-still.

b. Tony Gonzalez – President and Vice-Chairman

As President of the bank, Mr. Gonzalez heads the company. His personal source of power is expertise, considering his educated as a Certified Public Accountant, which was further honed by his experience running the bank. Heading the company with profitable returns for the past five years also indicate that his power and influence emanates from effort that is visible to his employees. Because he is very much informed of the operations of the bank, the president obtains power from the centrality, visibility and relevance of the position to the company.

c. Victor Montes – Vice-President and General Manager

The position of General Manager requires deep involvement in the day-to-day operations of the bank. As such, the source of power in this position comes from the centrality, flexibility, visibility and relevance. Because of the approval he gives and decisions he makes on a daily basis, his staff recognizes his power and influence