By Mario Shilongo
Power in organisations is both pervasive and elusive. While its effects are undeniable, power remains covered in mystery. Those who possess and seek it, deny it, those who want it, disagree seeking for it, and those that are good at acquiring it tend to be secretive about their methods.
All organisations, have centres of power, understanding power dynamics is imperative for career advancement and success.
Power in its purest form is neutral. It is the application of power, that can either advance an organisation or undermine its integrity. Mismanagement of power has had severe consequences. Power has ruined careers, destroyed talent and failed organisations. Furthmore, power has defeated competence, integrity, and even justice systems.
At its essence, power is the ability to influence individuals or decisions. Recognizing where power resides within the organisation is crucial. While organisational charts outline formal lines of authority, they reveal very little the actual sources of power. Therefore, recognizing individuals with power involves carefully observing those with significant influence on decisions and outcomes.
Identifying influential individuals within the organisation can be complex and may vary across different contexts. However, certain common factors can serve as indicators of influential individuals.
For example, individuals who are adept at navigating their colleagues out of difficult situations, or those who consistently exceed their budget limits with no repercussions, demonstrate significant power. Similarly, those with access to sensitive information prior to public release or those able to sway the opinions of the CEO or the board, to secure unusual approvals, are indicators of significant power.
The nature of industry or the organisation’s core activities can also provide insights where power is concentrated. Those that directly manage critical business activities typically possess a great amount of power.
Power manifests itself in five distinct forms: reward, coercive, legitimate, referent and expert. Understanding these forms of power provides valuable insights into the power dynamics at play and the methods leaders use to exert influence on subordinates. Reward power is exercised where the extension of rewards such as promotions, bonuses are used as a source of influence.
Coercive power, is derived from the capacity to impose penalties or threats, creating fear and exerting influence through force. Legitimate power is exercised through formal authority and position within the organisation’s hierarchy. Referent power is exercised when the individual is admired and able to influence through respect and admiration.
Expert power is exerted, when the individual possesses, expertise and specialized knowledge or skills giving them the ability to influence. Although these forms of power are commonly used, their effectiveness varies. Research suggests that reward and coercive are the least effective forms of power, as they lead to employees complying only when the enforcer is present. This necessitates micromanagement of employees and creating a hostile work environment.
In contrast, referent and expert power are the more effective sources of power, as the encourage voluntary compliance to instructions. These forms of power have been associated to improved organisational performance and a strong commitment to the organisation’s vision and objectives.
Understanding and navigating the dynamics of power within an organization is both crucial and complex. Power while inherently neutral, has a significant impact on the outcomes of the organisation depending on its implication. Its effects are not solely determined by formal authority, but by the interplay of influence and control within the organisation.
Exerting influencing through rewards and coercion only leads to temporary compliance with no commitment to the organisation’s vision and objectives. Understanding and leveraging power dynamics is not just a strategic advantage but a critical skill in achieving professional success and organizational effectiveness.
*Mario Shilongo I am a holder of an MBA from the University of East Anglia (UK), and a Management Consultant at Iron Financial Services. I can be reached at mario@ironfinancial.uk
