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Why is power important in an organisation?

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Steph Müller eNotes educator | Certified Educator

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In the context of any organisation, be it a company, a charity, or a hobby group, the word "power" refers to management. Since the question was filed under the business category, I will discuss the importance of management within the context of a company.

Without management, there would be no one to determine what the right course of action would be in any scenario. To demonstrate why power is so important in the context of a business, I will mention five points.

Firstly, without management structures in place, there would be no one to make decisions about hiring new staff. This means that the the company's growth would be hindered.

Secondly, on the flip side of that coin, there would be no one to make decisions about disciplinary matters and to decide what constituted undesirable behavior or offenses for which staff members could be fired.

Thirdly, with no management structure, there would be no one to determine what stock needed to be ordered and what needed to be done in order to keep...

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krishna-agrawala | Student

In organizational context, the term power refers to the ability of individuals to influence the conduct or activities of others. People in an organization draw such power from many sources such as formal authority defined by organizational structure and policies, expert knowledge and skill, ability to control resources, and interpersonal skills.

Power is essential for smooth functioning of any organization. An organization usually consists of many people and the activities of these people need be channelled and coordinated in particular ways to achieve the organizational objectives. To do this most important is the power exercised by managers over their subordinates to direct and control their activities. However, members of organization also exercise power in some form or other over their peers and superiors also.

Power is important for organizations in another ways also. Power may be exercised by individual and groups of individual to achieve their personal objectives, in ways that may interfere with achievement of organizational objectives. Therefore it is important to understand the nature of such such power and regulate it. It is best if ways can be found to channelise such power to assist in achievement of organizational goal. When that is not possible, at least it must be kept in check to minimize negative impact on achievement of organizational objectives.