Importance of Power in an Organization for Organizational Growth

Existence and use of power is endemic to every organization. So it is very important form organization point of view. The importance of power in an organization can be judged from the following points:

  1. It is necessary for survival and growth: There are so many jobs in an organization and each job has its different value to the organization. Some jobs are more important for organizational survival and growth than others. The importance of job itself brings power to those job holders regardless of the individual and their leadership qualities. Such job holders influence the decisions.
  2. Organization itself allocates the power: The importance of power lies in the fact that organization itself allocates the power to the persons. It does so in two ways:
  • by creating hierarchical levels, i.e., structural power, and
  • By dividing work among members resulting into specialization, i.e., functional power.

The organization gives the authority to personal having structural power in order to enable him to play his role assigned to him in that hierarchical chain. The higher the hierarchical level the greater the amount of authority.

It means structural power is institutionalize power. But simply holding the power does not make the position-holder powerful unless he makes use of it. If he does not question the erosion of his power, it will weaken.

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Importance of Power in an Organization

Functional power is derived from the fancier’s, one performs, i.e., the jobs that one does. Division of labor and specialization provide the dependence upon one another.

That dependence creates power. The important job an individual does; the greater is his power. The power is increased by the scarce skill, experience, access to higher persons and information.

Thus, the power position in an organization is very important from the organizational point of view. The organization must consider the power centers before taking any decision.

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