In relations with others, in all facets of life, power can be a significant ingredient. On the geo-political level, power can surface in a negotiation when a stronger nation exerts force to enforce its will. In the business world, the use of one’s power can stop an initiative from occurring or launch one in the face of numerous obstacles. In one’s personal life a parent’s desire and power can supersede a child’s preference. All of these situations are examples of situations involving imbalances in power. The reality is that imbalances in power can and frequently do impede an individual or group’s ability to effectively manage conflict (Wilmot and Hocker, 2007).
Within the business environment, power or the perception of an individual’s power surfaces frequently. Some individuals within an organization have high power. These individuals have titles and responsibilities that go along with their high power. Other individuals in the organization may perceive themselves or be perceived by others as having low power and influence within an organization. These individuals may feel a lack of ability to achieve their own goals or even feel a silent sense of despair regarding their status (Wilmot and Hocker, 2007).
For the high power party, an unchecked ability to utilize power can lead to the temptation of the individual to use that power for illegal purposes (Wilmot and Hocker, 2007). We saw this frequently in the late 90s and early 2000s as numerous organizations and individuals succumbed to the abuse of power. One example is Enron, which collapsed amidst improper accounting procedures and the willful attempt of many of its leaders to defraud the public, while profiting from illegal activities. Eventually, many of the perpetrators were arrested, tried, and sentenced to lengthy prison terms. One example includes CEO Jeffrey Skilling who was found guilty of 19 counts of insider trading, securities fraud, and conspiracy (Houston Chronicle.com, 2008).
With low power parties, continual losses and setbacks can result in the individual or group becoming disenfranchised by the organization (Wilmot and Hocker, 2007). This attitude could manifest itself in the employee becoming frustrated with the organization and the individuals who lead it. Worse yet, this feeling of powerlessness could lead the parties to perpetrate crimes against the organization to include theft, sabotage, or in extreme cases, even violence.
The important factor for individuals in high power positions to keep in mind is that restraint is a critical lever in the use of power (Wilmot and Hocker, 2007). This necessitates high power groups (in the corporate environment, this is the manager or supervisor) affording others around them the opportunity to gain power. This can be done, in part, by presenting others the opportunity to make key decisions regarding a project or encouraging others to take a more active role in groups or committees. This will not only enhance their power within the organization but increase their self-esteem as well. Creating a more power balanced organization where everyone has the opportunity to contribute is not only the right decision, it is the smart one financially as well.
References
Houston Chronicle.com (2008) The fall of enron. Retrieved October 21, 2009 from http://www.chron.com/news/specials/enron/
Wilmot, W. & Hocker, J. (2007). Interpersonal conflict. New York: McGraw-Hill
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