The Most Powerful Group in the Organization

Power in the Work Field
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Power in the Work Field
The Most Powerful Group in the Organization
Organizations include individuals and groups that use power and authority to accomplish tasks. Power is distributed at every organizational level to get things done. Power is considered an ability to influence the behaviour of people. Employees hold power through formal positions within an organization.
Every position possesses greater or lesser power, but one of the most powerful groups in any organization is the board of directors. They are the ultimate authority in any corporation, and their decision is unchallenged. The shareholders of the organization select the board of directors, and they are responsible for the approval of crucial business decisions. Although the CEO of any firm makes daily corporate decisions and carries out business operations, he is working on the board’s direction. Therefore, every decision made by CEO needs approval from the board of directors.
CEO is considered the higher position in any organization selected and terminated on the board’s orders. According to a group of scholars, although the external control system of any organization is directed by several factors but the internal control system of the corporation is led by the board of directors (Schalka & Sarfati, 2014). The board of directors is responsible for the well-being of the investors and all the business’s key stakeholders. So their decisions are primarily for the benefit of the shareholders.
The board makes all the major investment decisions, appoints executive positions, determines their compensation plan, and sets corporate goals. Besides, the board of directors holds the highest hierarchical position in the company, which gives them the ultimate power.
The Source of Power
Power in organizations comes from different sources. Mainly the energy in any modern corporation is obtained through formal positions. The proper organizational position in the corporate hierarchy system assigns different levels of power to respective individuals, which allows them to exercise their authority within the workplace. The formal position decides the different degrees of power at different levels. The higher we move to the corporate hierarchical structure, the greater the control will be. It offers legitimate authority to the individual at any specific designation providing them to take actions and make decisions within the organization. Although culture also decides a company’s power system, large corporations do not support the culture of informal power distribution within the company.
In modern business, the organization’s culture also strongly impacts a company’s power system. Power and authority usually come with a formal position and a job rank or title. For instance, a manager’s power increases when promoted to the general manager position. Moreover, an organization may have a centralized or decentralized power culture. In centralized culture, although formal positions and designations are assigned to the employees in a company, the workplace culture promotes decentralized power, which shows that the power is distributed equally among all the employees. They are not accountable to anyone in the organization.
The centralized power culture can promote control of decision-making where no employ...