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Power in Organization

Essay Instructions:

Which position or group of stakeholders has the most power in your organization or one with which you are familiar? Is their power obtained through formal positions, or does the culture of the organization lead to some people or groups having more power than others? How can the distribution of power be used to motivate employees? How can the organizational structure of a company impact the distribution of power?

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Power in an Organization
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Power in Organization
In an organization, power is an important aspect as it determines and governs the decision-making process in an organization as the management uses it to influence and motivate workers toward the organizational goals. Also, power in any organization enables management to control input and output by ensuring the process is efficient. Different people or groups in organizations acquire powers through various means clearly defined by an organization. Ideally, the culture of an organization determines how power is distributed in an organization. For example, some organizational culture values its employee while in other cultures market and productivity defines their company. Therefore, the decision-making authority in an organization determines the success of a business.
In an organization, a stakeholder is an individual(s) directly or indirectly affected by any decision made by an organization. The position or group of stakeholders that own a lot of powers in the organization are the board of directors, who are still the investors, shareholders, or the owners of the entire organization. The organization's success depends on the board of directors that controls all the management activities and decision-making in an organization. This group of stakeholders uses their power to control the input and output processes in an organization.
Noteworthy, in an organization, the board of directors acquires power through formal positions, which are generally linked to their duties mandated to their responsibilities and culture; thus, they allocate powers depending on their status, knowledge, and skills. For instance, a person in a certain group may take casual positions based on their status than their experience since the board of directors is sanctioned by the votes of the organization's owners. Further, the organizational culture allocates more power to some individuals or groups of stakeholders than others. The culture of organizations has its criteria with given authority and responsibility. In this case, managers are always allocated more powers in an organization. The culture of an organization enhances the long term success of a company by paying more attention to the observant systems; physical factors that define a company espoused factors; establishes the mission, vision, and values of an organization and the basic assumptions; which are companies traditions and can be difficult to change which includes leadership of a company.
There are four types of organizational culture that help managers to comprehend, change and measure the competitive value of an organization. Firstly, Clan culture in an organization focuses on values flexibility and not control or stability. The organization with clan culture is more identified with a strong sense of commitment to the organization. These organizations invest resources to train their employees and develop a relationship with their customers as they view them as partners. A strong sense of loyalty characterizes employees to the company they end up working for a long period. Secondly, the Adhocracy culture of an organization is best known for its innovative nature. It is also a risk-taking culture where employees are promoted based on their creativeness and dynamic nature. Third, hierarchy culture focuses on control and stability. They have a set of rules and a structured mechanism that helps a company to operate the way it does. It is majorly characterized by rules that are passed from one employee to another. Finally, the market culture of an organization focuses more on profits and competitiveness of the company; more value is given to the productivity, customers and not to the employees. This organizational culture dictates how power is distributed in an organization and enhances the continu...
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