Culture of power and influence and how the informal organization impacts people’s attitudes

The Effects of Culture, Power, and Politics on an Organization

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In the business world, we have all witnessed, across diverse backgrounds, the struggle to find a balance between politics, power, and culture.

 

In the business world, we have all witnessed, across diverse backgrounds, the struggle to find a balance between politics, power, and culture.

 

To defend their beliefs, many people have gone to great lengths, including fighting countless battles and risking their lives.

 

In this blog, we will discuss the Effects of Culture on Different Organizations. Politics, power, and cultural influences have infiltrated the workplace. Today, people care about much more than simply completing assigned tasks.

 

Daily operations within an organization are governed by organizational culture, power dynamics, and office politics. The influence of politics and power at work directly reflects the company’s official and informal culture.

 

 

A healthy organizational culture provides direction and stability to the company and its employees.

 

Employee attitudes and behaviors, performance, and staff turnover can all be affected by organizational culture.

 

Numerous scientific studies have established that organizational culture is characterized by seven key traits: innovation and risk-taking, results orientation, people orientation, team orientation, aggressiveness, and stability.

 

8 points on how factors such as power, culture, and politics affect the organizational environment

 

Political Hierarchy

People typically have a solid foundation within organizations. In short, businesses exist to meet market demands and generate a surplus of revenue over expenses.

 

However, organizations are also political structures that offer individuals the opportunity for professional advancement and, as a result, provide spaces for the expression of personal interests and goals.

 

To translate personal interests into actions that impact others, it is necessary to accumulate power. This is especially true at the highest managerial and professional levels.

 

Demand and Opposition

In a system of scarcity, where people compete for power, a political pyramid develops. In other words, people cannot simply demand the power they desire. Instead, they must participate in decisions about how to allocate authority within a specific formal organizational structure.

 

There are two sets of circumstances that lead to a scarcity of power:

 

Situations in which individuals acquire total authority at the expense of others.

 

When a relative gain is obtained at the expense of others—not literally at their expense—resulting in a relative change in the power structure.

 

In any of the above cases, comparison and a sense of scarcity prevail.

 

Constituents and Clients

Power and politics in organizational behavior develop from the presence of constituents, in addition to conditions of scarcity and competitiveness.

 

A superior may be satisfied with changes in the distribution of resources and, consequently, power, but they represent subordinates who, for various reasons, may not be.

 

These subordinates praise and assist their superiors. They may also cease to provide further support and affirmation, which would isolate them and have all the negative consequences that entails.

 

 

Strength and Action

The constant drive to wield power is another element that intensifies the struggle for power, a hallmark of all political organizations. In a power dynamic, companies often have an implicit banking system.

 

Three components comprise an individual’s initial «capitalization,» which constitutes their power base:

 

The degree of official authority attributed to their position compared to others.

 

Authority is derived from their knowledge and experience (a factor weighted by the importance of experience for the corporation’s growth areas compared to the historically stable areas of its business).

 

Their appeal to others in terms of personality (a combination of respect and likeability, although these two sources of attraction are often in conflict).

 

This capitalization of power represents the general respect people feel for the individual.

 

The mechanism by which a person internalizes all sources of power capital is not yet fully understood, but it is similar to how they build self-esteem.

 

The person is aware of their influence, realistically assesses it, and is willing to risk their self-esteem to influence others.

 

Conflicts of Interest

On the one hand, organizations demand joint effort and dedication to shared goals. On the other hand, conflicts of interest exist between individuals who, ultimately, share a common destiny and are expected to cooperate, as experience in organizations demonstrates.

 

The paramount importance of conflicts of interest is what transforms a company into something more political and less ideological and rationalistic.

 

Power Structure

Contradictions abound in organizational life within a political framework. Although it is a rational exercise, the beliefs of those in power, whose content and origin are vaguely understood, are what give it its energy.

 

It addresses the sources of power and its distribution, but depends primarily on the existence of a balance of power in the hands of a person who takes the initiative and produces results.

 

It involves several rituals, such as participation, democracy, and the sharing of power, but the end result is the concentration of power around a single person with whom other people develop strong emotional bonds.

 

 

 Faulty Alliances

Key executives form coalitions within the authority of the official organizational structure. Different coalitions take different forms, and these also have different psychological implications.

 

However, without a consolidation of power in the connection between a leading figure and their chosen group, no organization can function. A coalition between the CEO and their direct subordinates or staff is not necessary.

 

In fact, one can omit the second level, as is the case with US presidents who rely on members of the executive team or specific individuals outside the formal structure instead of forging strong bonds with members of their cabinet. The lack of a coalition within an organization’s executive structure can generate serious problems, such as infighting and open rivalries within the executive group, paralysis in the form of an inability to make decisions and evaluate performance, and paralysis in the form of inaction.

 

Unintentional Collusion

Both groups and individuals face stressful situations that trigger the mobilization of defenses. It is not surprising that coalitions adopt defensive strategies when stress levels exceed what is normally tolerable.

 

However, a more significant problem arises when the primary factor holding people together in a structure is the desire to protect themselves or act in the face of conflicts that individuals cannot handle alone.

 

Collusions indicate the prevalence of unconscious conflict and protective behavior,

 

while coalitions represent the accumulation of power with the conscious intention of leveraging members’ capabilities for constructive purposes.

 

The existence of conflicts and their causes often becomes an impasse in organizational life that must be resolved before any change can be implemented.

 

Conclusion –

 

To conclude this blog, we can say that the fundamental lesson is that people in positions of power differ from ordinary people primarily in their ability to enforce their personal defenses in the business environment.

 

We must not lose sight of this. Fortunately, relationships can be managed intelligently, and the purpose of this article’s conclusion is to analyze the nature of this wisdom.

 

 

 

 

How does informal organization work in modern companies?

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Informal organization is a network of personal and social relationships that arise spontaneously among employees within a formal organizational structure.

 

Unlike formal structures, these relationships are not officially sanctioned or deliberately created by management, but they significantly influence employee behavior, communication, and decision-making.

 

 

DC Miller and William H. Form define informal organizations as “networks of personal and social relationships that are not defined by formal structures.”

 

The informal organization functions as the interconnected social structure that governs collaboration among people in practice. It comprises a set of norms and personal and professional connections through which work is done and relationships develop among individuals who share common organizational affiliations. These networks evolve organically as employees interact to meet social and psychological needs that the formal structure might not address.

 

According to Chester Barnard, “an informal organization is a set of interpersonal relationships without a conscious purpose, but which can contribute to shared results.” Similarly, Schein points out that an informal organization exists without legal boundaries, membership lists, tangible assets, formal structure, or official leadership.

 

Key characteristics of informal organizations include:

 

Dynamic and constantly evolving nature

Flat and fluid structure without a defined hierarchy

Grassroots formation based on social interactions

Cohesion through trust and reciprocity

Collective decision-making processes

Ability to respond quickly to changing situations

Excellent member motivation

 

The Importance of Unofficial Channels

Studies on organizational behavior indicate that more than 70% of workplace communication occurs through unofficial channels, underscoring the importance of the informal organization for daily operations. Communication flows more rapidly in informal structures because it does not follow a chain of command, allowing information to transcend departmental boundaries and hierarchical levels.

 

For example, in a mid-sized accounting firm, staff from the HR, finance, and audit departments might regularly meet for lunch, discuss work-related matters, and assist each other with activities outside their official responsibilities. This unofficial support network improves morale, speeds up communication, and benefits the formal business by addressing minor issues without official intervention.

 

 

Informal organizations develop primarily to meet the socio-emotional needs of employees.

 

They allow workers to connect emotionally, forge friendships, and satisfy their fundamental need to socialize. Furthermore, these structures help employees collaborate more effectively and achieve organizational goals more quickly thanks to stronger connections among colleagues.

 

Despite the lack of formal rules or procedures, informal organizations exist in all business environments. They often operate in parallel with formal organizations, complementing their explicit structures, plans, and processes. When managed effectively, informal organizations can improve responses to unforeseen events, foster innovation, and create pathways that indicate where formal structures might need development.

 

However, informal organizations can sometimes hinder the achievement of formal organizational goals if they form cliques or opposing groups. The contemporary management approach recognizes both the strengths and limitations of informal organizations, seeking to integrate them with formal structures rather than viewing them as inadequate organizational byproducts.

 

Types of Informal Organizations

Informal organizations manifest in various structural patterns in the workplace, each addressing distinct social and professional needs. These natural groupings form in response to employees’ social needs beyond their primary job functions.

 

Interest Groups

Interest groups are made up of people who come together because of shared hobbies, activities, or interests. These associations develop naturally as employees discover mutual passions beyond their immediate job responsibilities. For example, book clubs within an organization allow literature enthusiasts to connect across departments. Additionally, cause-based interest groups unite employees who support specific beliefs or social initiatives. Sports clubs represent another common example, where employees participate in team activities that foster camaraderie beyond professional interactions. Interest groups often form horizontally across departments, creating connections that might not otherwise exist within the formal structure.

 

Friendship Groups

Friendship groups emerge from the personal relationships and mutual interactions among employees who develop close bonds. These groups often extend beyond the workplace into social settings, where colleagues attend movie nights, dinners, or other recreational activities together. Forging friendships at work offers substantial benefits, as research indicates that organizations that create spaces for such connections experience significant improvements in performance and greater employee well-being. Interestingly, studies show that approximately 30% of Americans report having a «best friend» at work, while many more maintain varying levels of friendship with their colleagues. These relationships foster psychological safety, vulnerability, and compassion—crucial elements for innovation and job satisfaction.

 

 

 Vertical and Horizontal Groups

A horizontal organizational structure is composed of employees working at identical hierarchical levels within a company. Members of horizontal groups share similar professional problems, concerns, and interests. These formations promote information sharing and mutual support, allowing members to resolve problems internally without involving supervisors.

 

In contrast, vertical groups are formed by individuals at different levels of authority who establish relationships that transcend hierarchical boundaries. These connections develop through higher-level relationships; for example, junior employees form bonds with senior managers based on mutual respect or shared interests. Vertical groups improve organizational communication channels and provide faster access to emerging problems, creating pathways that bypass traditional communication chains.

 

Mixed Groups

Mixed groups incorporate individuals from diverse departments and hierarchical levels who connect through shared personal interests, social activities, or common practical agreements.

 

Examples include carpooling groups, gym memberships, or club memberships that bring together diverse members of the organization. These cross-functional relationships create valuable connections that transcend departmental silos. For example, a president of sales might develop an informal relationship with a chief technology officer based on shared interests outside of work. Mixed groups foster broader interactions across the organization, creating networks that might not develop solely through formal channels. These diverse connections often lead to innovative collaborations that benefit the organization by facilitating knowledge sharing across traditional boundaries.

 

How the Informal Organization Influences Workplace Culture

The influence of informal organizations extends deeply into workplace culture, shaping values, behaviors, and organizational effectiveness beyond its structural dimensions. Studies indicate that nearly 80% of communication within organizations occurs through informal networks, fundamentally altering how decisions are made and how collaboration unfolds across the enterprise.

 

Informal organizations act as powerful channels for cultural transmission, conveying values, norms, and beliefs among employees. The tone and content of communication flowing through these networks directly affect employee morale, job satisfaction, and overall perception of the organization. Consequently, when employees feel connected through personal relationships, they demonstrate greater commitment to both their work and the company’s goals.

 

 

 A McKinsey study reveals that 72% of employees report greater engagement

when connecting with colleagues informally, highlighting the crucial role these networks play in fostering positive work environments. Furthermore, IBM studies suggest that teams utilizing their informal networks complete projects 25% faster and experience a 30% increase in overall satisfaction and morale.

 

Informal organizations serve as essential channels for knowledge transfer, especially when formal training programs may fall short. Through informal interactions, employees share expertise, solve problems collectively, and develop innovative approaches to addressing challenges. This process occurs primarily because informal networks break down departmental silos, fostering cross-functional cooperation that might otherwise be hindered by formal structures.

 

The social fabric of informal organizations significantly influences employee well-being. These networks provide emotional support, peer encouragement, and opportunities to build meaningful working relationships. In companies where the work environment is perceived positively, employee satisfaction rates reach approximately 86%, which directly correlates with successful adaptation to organizational change. Specifically, organizations characterized by a supportive environment typically experience a 30% increase in employee productivity during periods of change. Informal organizations act as buffers, protecting employees from rigid formal structures while satisfying their need for psychological safety. They create spaces for social interactions that foster friendship, camaraderie, and a sense of belonging. This social dimension helps build strong interpersonal connections that improve organizational cohesion.

 

However, informal networks present certain challenges to workplace culture.

 

At times, these structures can undermine formal authority or generate conflicts of interest. Not everyone is necessarily included in informal groups, which can lead to feelings of exclusion or division among staff. Furthermore, informal organizations sometimes resist changes that alter established norms, making the implementation of new policies particularly difficult.

 

Companies that recognize and effectively manage informal networks gain substantial advantages. Organizations with dynamic informal networks report a 25% increase in productivity. Furthermore, workplaces characterized by a positive climate experience a 21% increase in profitability, along with a reduction in employee turnover of up to 25%.

 

The informal organization ultimately determines the «why» of employee behavior, while formal structures dictate the «what» and the «how.» This emotional and motivational foundation is essential for fostering creativity, inclusion, and open communication—elements that substantially improve an organization’s ability to adapt, innovate, and thrive in contemporary business environments.

 

 

 Informal vs. Formal Organizations

The distinction between formal and informal organizations represents a fundamental aspect of organizational structure, as each type performs complementary, though different, functions within the business environment.

 

Formal organizations are deliberately created structures with specific goals and objectives, operating through established hierarchies and clearly defined roles. In contrast, informal organizations arise spontaneously from the social interactions and personal relationships that develop naturally among employees. While they coexist within the same business environment, they differ substantially in their purpose, structure, and operating mechanisms.

 

Specific Business Objectives

 

The purpose of formal organizations is primarily focused on achieving specific business objectives through structured processes. These organizations function like well-oiled machines, where each component has a defined role within an orderly structure. Informal organizations, on the other hand, focus on meeting the social and psychological needs of employees, fostering creativity, motivation, and job satisfaction through social interaction and flexibility.

 

Key Differences Between Formal and Informal Organizations:

 

Aspect Formal Organization Informal Organization

Creation Deliberately established by management Arises spontaneously among members

Structure Defined hierarchical structure Lacks formal hierarchy; more fluid

Authority Clear delegation of authority and responsibility Informal power dynamics without clear accountability

Communication Follows predefined channels and protocols Relies on informal and spontaneous communication

Decision-making Structured process that follows established rules Less structured, often based on consensus

Rules Adheres to established procedures Generally lacks formal rules; more flexible

Focus: Job performance and task completion. Interpersonal relationships and social needs.

Stability: Stable and enduring. Dynamic and constantly evolving.

 

Regarding communication patterns, formal organizations use official communication channels following predetermined protocols, while informal organizations facilitate the rapid exchange of information through spontaneous interactions. This distinction allows informal networks to bypass formal channels for urgent information, facilitating real-time problem-solving and decision-making.

 

Authority structures also differ significantly between these types of organizations. Formal organizations maintain clear hierarchical structures with established authority relationships following a chain of command. Simultaneously, informal organizations operate without such hierarchies, allowing their members to have equal authority in decision-making processes.

 

Formal organizations provide structure through stability and consistency, but can struggle with bureaucracy and resistance to change. Informal organizations offer flexibility and emotional support, along with potential challenges such as unofficial power structures or favoritism. The relationship between these types of organizations is symbiotic, as formal organizations benefit from the emotional support, peer motivation, and collaborative opportunities provided by informal structures.

 

 

 In essence, both types of organization coexist within the same entity, influencing and shaping each other.

 

Successful companies effectively leverage the strengths of both formal and informal organizations, integrating structure and flexibility. The balance between these networks optimizes communication and organizational effectiveness, maintaining formal structures for stability while allowing informal networks to flourish.

 

Advantages and Disadvantages of Informal Organization

Examining the dual nature of informal organizations reveals significant benefits and potential drawbacks for modern businesses. The unplanned social structures that develop alongside formal hierarchies fulfill critical functions, but can sometimes conflict with organizational goals.

 

Faster Communication and Trust

Informal organizations enable a rapid exchange of information that bypasses bureaucratic channels. Information flows in virtually all directions without following specific rules or routes, allowing for quick feedback and decision-making. Studies indicate that informal communication channels disseminate information significantly faster than formal ones, improving overall communication efficiency. This speed is invaluable in the face of unexpected events, as informal groups can respond quickly across different organizational boundaries.

 

The direct nature of these interactions fosters trust among colleagues. As employees develop personal connections, they become more comfortable seeking help from peers outside their immediate teams. This improves workflow, as employees don’t hesitate to ask for assistance, ultimately optimizing business operations.

 

Increased Morale and Job Satisfaction

Informal organizations fulfill crucial social and psychological needs that formal structures often neglect. These networks provide emotional support, guidance, and assistance that create a sense of camaraderie. Job satisfaction increases as social needs are met, directly contributing to organizational stability.

 

The social fabric of informal groups instills unity and solidarity among their members through frequent interpersonal interactions. Research shows that employees with friendships at work experience less stress and greater motivation. Consequently, the positive influence of informal organizations often leads to increased productivity.

 

They can spread rumors or resist change.

 

Unfortunately, informal communication often spreads rumors and misinformation. Studies reveal that approximately 70% of the information disseminated through informal organizational structures consists of rumors that can confuse employees. Once incorrect information circulates, it becomes extremely difficult to correct, generating anxiety and eroding trust among workers.

 

Informal groups often resist changes introduced by management. Because these groups develop their own norms and values, they may feel threatened by new policies or technologies. This resistance can delay or restrict organizational growth when informal organizations oppose the implementation of changes. Members often conform to group norms even when these norms conflict with the organization’s interests.

 

 

They can undermine formal authority.

Informal leaders sometimes challenge formal management structures. When employees trust their informal leaders more than formal managers, implementing organizational decisions becomes problematic. This dynamic makes it difficult to maintain proper discipline and control within the organization, resulting in the formalization of various activities and processes.

 

Furthermore, informal groups can create conflicting goals and priorities. Members often pursue group objectives even when those interests conflict with the organization’s formal goals. This misalignment leads to outcomes that negatively impact overall performance. Excessive conformity to group norms that contradict the organization’s interests presents another significant challenge.

 

The coexistence of positive and negative aspects requires strategic management approaches that maximize benefits and minimize potential disruptions. Organizations that effectively leverage informal networks gain valuable advantages in flexibility, speed of communication, and employee satisfaction.

 

 

How to Manage Informal Organizations in Businesses

Effectively managing informal organizations requires strategic approaches that leverage their inherent strengths and mitigate their potential drawbacks. Leaders who successfully integrate these natural social structures into their management practices gain significant advantages in communication efficiency, employee engagement, and organizational agility.

 

Encouraging Open Communication

Creating an environment that fosters open dialogue across all levels of the organization helps channel informal communication productively. Leaders should establish formal channels that complement the informal exchange of information, while maintaining transparency regarding which topics require formal documentation.

 

Providing dedicated spaces for informal interactions, such as break rooms, cafeterias, and collaboration areas, facilitates the natural flow of informal communication. A physical workspace design that encourages spontaneous interactions breaks down departmental silos, fostering cross-functional teamwork that transcends formal boundaries.

 

Identifying Informal Leaders

Recognizing employees who influence others through their experience, personality, or relationships, despite lacking formal leadership roles, is crucial for effective management. These individuals often play a vital role in shaping organizational culture and driving change.

 

Supporting informal leaders with additional resources, mentorship opportunities, or public recognition strengthens their positive impact across the organization. Managers can develop these influential employees through targeted training programs that enhance their current contributions or prepare them for potential formal leadership positions.

 

Aligning Informal Goals with the Company Vision

Informal networks operate most effectively when their goals support broader organizational objectives. Creating alignment requires clear, consistent, and strategic communication at all levels of the organization, incorporating company goals into regular team discussions, leadership meetings, and performance reviews. When informal groups understand the organization’s strategic direction, they can channel their collaborative energy toward those shared goals. This integration helps prevent conflicts between informal and formal priorities, ultimately increasing overall productivity.

 

 

Use HR Tools to Support Informal Networks

Human resources departments play a vital role in strengthening informal organizations through targeted policies and practices. Organizational network analysis (ONA) enables HR to visually map informal connections, providing strategic insights into collaboration patterns, talent identification, and diversity integration.

 

These analyses reveal key individuals who are central to communication networks, enabling targeted development initiatives. Furthermore, HR can implement recognition programs that acknowledge the contributions of informal networks, as organizations with such programs report nearly 15% higher employee engagement and productivity. Regular feedback mechanisms through informal channels provide valuable insights into employee satisfaction and emerging organizational issues.

 

Key Takeaways: Understanding and leveraging informal organizations can transform workplace culture and business performance through the strategic management of natural employee networks.

 

• Informal networks drive 70% to 80% of workplace communication, making them more influential than formal structures in daily operations and decision-making.

 

• Four key types emerge naturally: interest groups, friendship groups, vertical/horizontal connections, and mixed groups that span departments and hierarchies.

 

• Strategic benefits include faster communication, increased trust, and 25% higher productivity when informal networks are aligned with company objectives.

 

• Potential risks require management: rumors spread quickly, informal leaders can undermine authority, and resistance to change can arise.

 

• Effective management involves identifying informal leaders, fostering open communication, and using HR tools such as organizational network analysis to support these structures.

 

• Balancing formal structure with informal flexibility involves creating spaces for spontaneous interaction while aligning informal objectives with the company’s vision.

 

With proper management, informal organizations become powerful catalysts for innovation, employee engagement, and organizational agility in modern business environments.

 

 

Frequently Asked Questions

What is an informal organization in a business context?

 

An informal organization is a network of personal and social relationships that develops naturally among employees within a formal organizational structure. It operates without official rules or procedures but significantly influences workplace communication, decision-making, and employee behavior.

 

How do informal organizations differ from formal ones?

 

While formal organizations have defined hierarchies and structured processes, informal ones are more fluid and spontaneous. Formal structures focus on specific business objectives, while informal networks address the social and psychological needs of employees, fostering creativity and job satisfaction.

 

What are the main types of informal groups in the workplace?

The main types of informal groups in the workplace include interest groups (based on shared hobbies or activities), friendship groups (personal bonds between colleagues), vertical and horizontal groups (connections between or within hierarchical levels), and mixed groups (diverse connections spanning departments and levels).

 

What are the benefits of informal organizations in modern businesses?

 

Informal organizations facilitate faster communication, build trust among employees, boost morale and job satisfaction, and can increase productivity. They also provide emotional support, encourage innovation, and help companies respond quickly to unexpected situations.

 

How can managers effectively manage informal organizations?

 

Managers can effectively manage informal organizations by fostering open communication, identifying and supporting informal leaders, aligning informal goals with the company’s vision, and using HR tools such as organizational network analysis. Creating spaces for informal interactions and recognizing the contributions of informal networks can also be beneficial.

 

Interested in learning more about current HR terms like Employee Assistance Programs (EAPs), boomerang employees, 360-degree feedback, or HR consulting? Dive into our HR glossary and get clear definitions of the terms driving modern HR. Explore Taggd for RPO solutions.

 

 

 

 

Power and Influence

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Power

Power is the ability to influence others to achieve results. Those who hold power can influence the behavior of others to reach a goal or objective. Although power is sometimes considered bad or corrupt, it is an organizational reality and, in itself, is neither good nor bad. In the business context, leaders can use power to benefit or limit others, to achieve organizational goals, or to undermine them.

 

Another way to view power is as a resource that people use in their relationships. When a leader influences their subordinates, it is called downward power. We can also think of this as someone exerting power over another person. On the other hand, subordinates can also exert upward power by trying to influence their leader’s decisions. In fact, leaders depend on their teams to achieve results and, therefore, are subject to the power of their members.

 

 

The Relationship Between Dependence and Power

Dependence is directly related to power. Specifically, the more someone depends on you, the more power you have over that person or group. The strategic contingency model offers a useful explanation of this concept. According to this model, individuals or groups gain power when others rely on them to address challenges or problems. The degree of dependence on others is based on three key factors: scarcity, importance, and substitutability. Having just one of these characteristics makes others dependent on you to some extent; possessing two significantly increases their dependence; and having all three can make you indispensable to them.

 

In the context of dependence, scarcity refers to the uniqueness of a resource. The harder something is to obtain, the more valuable it tends to be. Effective influencers exploit this reality by making an opportunity or offer seem more attractive because it is limited or exclusive.

 

Importance refers to the value of the resource. The key question here is, «How important is this?» If the resources or skills you control are vital to the organization, you will gain some power. The more vital the resources you control, the more power you will have.

 

Finally, substitutability refers to the ability to find another option that works just as well as the one offered. The question of whether something is substitutable is: «How difficult would it be for me to find another way to accomplish it?» The more difficult it is to find a substitute, the more dependent the person becomes and the more power another person has over them.

 

Sources of Power

A well-known typology identifies six distinct sources and types of power that people can draw upon: reward, coercive, legitimate, referent, expert, and informational.

 

Reward power stems from the ability to bestow valuable material rewards or create other positive incentives. It refers to the degree to which a person can provide external motivation to others through benefits or gifts. In an organization, this motivation might include promotions, salary increases, or additional time off.

 

Coercive power is the threat and enforcement of sanctions and other negative consequences.

 

These can include direct punishment or the withholding of desired resources or rewards. Coercive power relies on fear to induce obedience. Legitimate power, also called «positional power», is the power that people have because of their role and status within an organization.

 

 

 Legitimate power typically involves the formal authority delegated to the officeholder.

 

Referent power stems from an individual’s ability to attract and retain others. It is based on the personality and interpersonal skills of the person in power. A person may be admired for a specific personal trait, such as charisma or likeability, and these positive feelings become the basis of interpersonal influence.

 

Expert power is based on an individual’s skills and knowledge and is especially potent when an organization urgently needs them. More limited than most sources of power, expert power is usually applied only to the specific area of ​​their expertise and credibility.

 

Informational power comes from access to facts and knowledge that others consider useful or valuable. Such access may indicate relationships with others in positions of power and convey a status that creates a positive impression. Informational power offers advantages in building credibility and rational persuasion. It can also serve as a basis for beneficial exchanges with those seeking that information. Video 1: Leading with Influence: The 6 Bases of Power. Subtitles available. Click HERE to read the transcript.

 

The Relationship Between Power and Obedience

Not all forms of power are equally effective, nor is a leader’s total power base simply the sum of the powers at their disposal. Different types of power generate different forms of obedience. Reward and legitimate power (i.e., relying on one’s position to influence others) produce inconsistent results. Sometimes these powers lead to performance and follower satisfaction, but sometimes they fail. Coercive power can result in favorable performance, but follower resistance and dissatisfaction are not uncommon. On the other hand, leaders who utilize referent and expert power often experience a favorable response in terms of follower satisfaction and performance.

 

Effective leaders, whether formal or informal, develop numerous sources of power. Leaders who rely solely on legitimate power and authority rarely generate the influence necessary for long-term success. In the process of building their power base, effective leaders have discovered that the use of coercive power tends to dilute the effectiveness of other forms of power, while developing and using referent power tends to magnify the effectiveness of other forms of power. A compliment or reward from someone we like generally carries more weight than one from someone we dislike, and punishment from someone we admire and respect is usually less offensive than pain inflicted by someone we don’t respect.

 

In short, a key to effective leadership, especially regarding the exercise of social and interpersonal influence, relates to the type of power the leader wields. Leaders are typically most effective when people follow them because they want to.

 

 

 Influence

Influence occurs when a person’s emotions, opinions, or behaviors are affected by others. It is an important component of a leader’s ability to use power and maintain respect within an organization. Influence manifests itself, for example, in peer pressure, socialization, conformity, obedience, and persuasion. The ability to influence is a valuable asset for leaders and is also an important skill for those working in fields such as sales, marketing, politics, and law.

 

Influence Tactics

Researchers have identified various influence tactics. Nine of the most common are described below.

 

1. Rational persuasion involves using facts, data, and logical arguments to try to convince others that your point of view is the best alternative. This is the most commonly used influence tactic.

 

2. Inspirational appeals seek to connect with our values, emotions, and beliefs to gain support for a request or course of action. When President John F. Kennedy said, «Ask not what your country can do for you, ask what you can do for your country,» he appealed to the higher self of an entire nation. Effective inspirational appeals are authentic, personal, forward-thinking, and enthusiastic.

 

3. Consultation refers to the influencer’s request for assistance in directly influencing or planning their influence on another person or group. Consultation is most effective in organizations and cultures that value democratic decision-making.

 

4. Ingratiation refers to various ways of making others feel good about themselves. Ingratiation includes any form of flattery performed before or during an attempt at influence. Research shows that ingratiation can affect people. For example, in a resume study, those who included a cover letter with flattering information received higher ratings than those who did not. Except for the cover letter, the resumes were identical. [5] Effective flattery is honest, infrequent, and well-intentioned.

 

5. Personal requests involve asking someone to do something for you, as a favor. This tactic relies on friendship or positive relationships and is therefore most effective with people who know and like you.

 

6. Exchange refers to a quid pro quo where someone does something for you and you do something for them in return. The rule of reciprocity states that «we should try to repay, in kind, what another person has given us.» [6] Applying this rule obligates and indebts us to the giver. An experiment illustrates how a small initial gift can open the door to a much larger request later. A group of subjects was given a bottle of soda. Afterward, all subjects were asked to buy raffle tickets. On average, those who received the drink bought twice as many raffle tickets as those who did not.

 

7. A coalition refers to a group of people working together to achieve a common goal and influence others. Common examples of coalitions within organizations are labor unions, which may threaten a strike if their demands are not met. Coalitions also leverage social pressure. The influencer attempts to build a case by enlisting unseen allies to convince someone to think, feel, or do something.

 

8. Pressure refers to exerting undue influence on someone to do what is desired, or else something undesirable will occur. This often includes threats and frequent interactions until the affected person complies. Research shows that managers with low referent power tend to use pressure tactics more frequently than those with higher referent power.[7] Pressure tactics are most effective when used in a crisis situation and when they come from someone who has the other person’s best interests at heart, such as getting an employee to attend an employee assistance program to address a substance abuse problem.

 

9. Legitimation occurs when the appeal is based on legitimate or positional power. This tactic relies on compliance with rules, laws, and regulations. The aim is not to motivate people, but to align them under a particular direction. Obedience to authority carries both positive and negative connotations. Position, title, knowledge, experience, and conduct all confer authority, and it is easy to see how this can be abused. If someone uses the legitimate authority of others to impose their will, they may appear clumsy and powerless.

 

 

 

Effectiveness of Influence Tactics

 

Research examining the use and effectiveness of influence tactics revealed that inspirational appeal, ingratiation, and pressure were primarily used in downward influence (e.g., with subordinates); personal appeal, exchange, and legitimation were often used laterally (e.g., among peers); coalitions were used both laterally and in upward influence (e.g., with superiors); Rational persuasion was primarily used in upward influence. Rational persuasion, inspirational appeal, and consultation were the most effective influence tactics, while coalition, pressure, and legitimation were the least effective. Flattery and exchange proved somewhat effective with subordinates and peers, but not with superiors.[8]

 

Responses to Influence Tactics

People’s susceptibility to different influence tactics varies. In organizations and in most aspects of life, sources of influence surround us. Therefore, our behavior can be influenced by how they communicate with us and how we perceive them.

 

Responses to attempts at influence include resistance, compliance, or compliance. Resistance occurs when the person being influenced does not wish to accede to the request and rejects the attempt, either passively or actively. Compliance occurs when the person being influenced does not necessarily want to comply, but does so. Commitment occurs when the person being influenced not only agrees to the request but also actively supports it. Within organizations, commitment facilitates success, as others can help sustain initiatives long after changes have been made to meet needs or resistance has been overcome.

 

 

Figure 1: Relationship between influence tactics and responses. Research on the nine influence tactics described above has sought to link them to the three possible responses (Figure 1). One study revealed that consultation and appeals to inspiration were most frequently associated with commitment, while coalition, pressure, and legitimation were just as likely to generate resistance as compliance. The remaining four tactics—exchange, ingratiation, personal appeals, and rational persuasion—were more evenly distributed across the three outcomes.

 

Cultivating Power and Influence

Power and influence enable individuals to shape decisions, overcome obstacles, and lead with impact. Cultivating power and influence is essential for driving meaningful change, both within organizations and in the world at large.

 

 

 

 

 

10 Principles of Organizational Culture

The following contribution comes from the Strategy + Business portal, a PwC publication.

Author Profiles:

Jon Katzenbach is a renowned executive advisor at Strategy&, PwC’s strategic consulting group. He is Managing Director of PwC US, based in New York, and founder of the Katzenbach Center, Strategy&’s global institute for organizational culture and leadership. He is a bestselling author on organizational culture, leadership, and teamwork; his books include *The Wisdom of Teams* (with Douglas K. Smith; Harvard Business School Press, 1993) and *Leading Outside the Lines* (with Zia Khan; Jossey-Bass, 2010).

Carolin Oelschlegel is Director of the Katzenbach Center for Strategy&. She leads the center’s global operations and advises clients worldwide on culture and leadership issues. Based in San Francisco, she is a Director at PwC US.

James Thomas is a thought leader on organizational culture at Strategy&. He heads the Katzenbach Center for the Middle East and is an expert on organizational culture and issues. Based in Dubai, he is a partner at PwC Middle East.

Also contributing to this article were Strategy& specialists Varya Davidson (partner at PwC Australia), Kenji Mitsui (partner at PwC Japan), Henning Hagen and Rutger von Post (directors at PwC US), and Shona Especkerman (senior manager at PwC Malaysia).

 

 

 

Companies can leverage their natural advantage when they focus on changing a few key behaviors, recruit informal leaders, and harness the power of employee emotions.

 

How many times have you heard someone—a new CEO, a journalist, a management consultant, a leadership guru, a colleague—talk about the urgent need to change the culture? They want to transform it into a top-tier organization. To eliminate all the nonsense and negativity that irritates employees and prevents good intentions from translating into progress. To implement a completely different approach, starting now.

 

These criticisms of culture are as common as complaints about the climate, and almost as effective. How often have you seen ambitious aspirations to «change the culture» actually succeed in altering the way people behave and work? And how often have you seen noticeable long-term improvements?

 

If the answer to these last two questions is «rarely,» we wouldn’t be surprised. We don’t believe that a rapid, sweeping cultural shift is possible, or even desirable. After all, a company’s culture is its core personality, the essence of how its employees interact and work. Yet it is a complex and elusive entity that survives and evolves primarily through incremental changes in leadership, strategy, and other circumstances. We believe the most useful definition is also the simplest: culture is the self-sustaining pattern of behavior that determines how things get done.

 

 

Composed of instinctive, repetitive habits and emotional responses, culture cannot be easily copied or assimilated.

 

Corporate cultures are constantly renewing themselves and evolving slowly: what people feel, think, and believe is reflected in and shaped by how they work. Formal efforts to change a culture—to replace it with something entirely new and different—rarely get to the heart of what motivates people. Strong memos from the top are erased within hours. You can plaster the walls with large banners proclaiming new values, but people will go on with their lives, right under those banners, maintaining the habits that are familiar and comfortable to them.

 

But this inherent complexity shouldn’t discourage leaders from trying to use culture as leverage. If you can’t simply replace the entire mechanism, work on realigning some of the most useful gears. The key is to leverage what cannot be changed, using some of the emotional forces of today’s culture in a different way.

 

 Three dimensions of corporate culture influence its alignment: symbolic

reminders (highly visible elements), key behaviors (recurring acts that trigger other behaviors, both visible and invisible), and mindsets (widely shared, but exclusively invisible, attitudes and beliefs).

 

Of these, behaviors are the most powerful determinant for real change.

What people actually do matters more than what they say or believe. Therefore, to gain more positive influences from your cultural environment, you must begin by working on changing the most critical behaviors; mindsets will shift over time. Modifying behavioral patterns and habits can yield better results.

 

You might ask: if changing culture is so difficult, why should we even try? Because an organization’s current culture contains vast reservoirs of energy and emotional influence. Executives who work with these can significantly accelerate strategic and operational imperatives. When the forces of a positive culture and strategic priorities are aligned, companies can harness the energy of their people. This accelerates the company’s process of gaining a competitive edge or regaining lost ground.

 

Research shows that companies that utilize specific cultural catalysts—that is, those that employ informal emotional approaches to influence behavior—are significantly more likely to experience lasting change. Of the companies that reported consciously using elements of their culture in Strategy&’s 2013 Global Culture and Change Management Survey, 70% claimed to have achieved a sustainable improvement in organizational pride and emotional commitment. This compares to 35% of companies that did not use culture as a lever. While there is no magic formula, brilliant algorithm, or numerical equation that guarantees results, we have gained valuable insights through decades of research and observation across dozens of companies, including some of the most successful in the world. By adopting the following principles, your organization can learn how to implement and enhance its culture in a way that increases the likelihood of financial and operational success.

 

1. Work with and within your current cultural context. Deeply ingrained cultures cannot be replaced with simple updates, or even major overhauls. Nor can you simply swap a culture for a new one like an operating system or a CPU. To a certain extent, the current cultural landscape is what it is, and it contains components that offer natural advantages to businesses, as well as components that can act as brakes. We have never seen a culture that is entirely bad or entirely good. Therefore, to work effectively with culture, you need to understand it, recognize which traits are preeminent and consistent, and discern under what conditions these traits can be a help or a hindrance. In other words, cultural traits have their positive and negative sides.

 

For example, a European pharmaceutical company with a strong pipeline of products in development tended to be introspective. It had a strong execution capability and an excellent track record of compliance with international regulations. However, when the new products were ready for launch, the company struggled to market them to physicians and healthcare professionals. Instead of lamenting the company’s deep-rooted isolation—for example, its collective tendency to value the opinions of internal colleagues more than those of external experts—the leaders decided to leverage this characteristic of their culture. They implemented a program whereby employees were recognized and rewarded by their peers for going the extra mile to support customers. By acknowledging a new kind of internal authority, the company tapped into a powerful existing emotional trigger and generated a new (and strategically important) behavior within its sales team.

 

 

2. If behaviors change, mindsets will follow. It’s a common belief that behavioral change follows mental change, as inevitably as night follows day. That’s why organizations often try to change mindsets (and ultimately, behavior) by communicating values ​​and presenting them in high-quality brochures. This technique didn’t work well at Enron, where accounting fraud and scandals were part of daily practice, even though the values ​​of excellence, respect, integrity, and communication that the company promoted were engraved on the marble floor of the atrium of its global headquarters in Houston. In reality, culture is much more a matter of doing than saying. Trying to change a culture solely through top-down messaging, training and development programs, and identifiable cues rarely changes people’s beliefs or behaviors. In fact, neuroscience research suggests that people act to believe, rather than think to act. Therefore, changes in key behaviors—tangible, feasible, repeatable, observable, and measurable changes—are a good starting point. Some good examples of behavior change, which we have observed in various companies, relate to empowerment (reducing the number of approvals required to make decisions), collaboration (establishing simple ways to initiate joint projects), and interpersonal relationships (devising mutually respectful practices for raising contentious issues or complaints).

 

Neuroscience research suggests that people act to persuade, rather than think to act.

 

A telecommunications company was looking to improve its customer service. Instead of trying to influence mindsets, for example, by posting signs urging employees to be polite to disgruntled customers or providing empathy training, the company focused on what psychologists call «precursor behavior»: seemingly innocuous behavior that reliably precedes problematic behavior. Leaders had observed that poor teamwork led to poor customer service, so the company implemented a plan to foster better and more effective teamwork in call centers. To achieve this, they organized regular design sessions to improve practices. When employees felt part of a happy team and perceived greater support from their colleagues, they began to treat their customers better.

 

In another example, a resource company in the Middle East sought to improve workplace safety. Instead of posting signs threatening workers with consequences, the company focused on a relatively basic precursor behavior: cleanliness. It organized a trash-picking campaign. Picking up trash as a team helped employees feel more pride in the workplace, which fostered a greater sense of care for colleagues and made them more likely to report unsafe situations. Change behavior, change mindset.

 

3. Focus on a few critical behaviors. Conventional wisdom advocates for a holistic approach: everyone should change everything that isn’t perfect! But companies must be rigorously selective when choosing behaviors. The key is to focus on what we call «the critical few»—a small number of important behaviors that would have a huge impact if practiced by a significant number of people. Discern a few things people do across the company that positively influence business performance, such as how meetings are initiated or how customers are spoken to. Ensure these are aligned with the company’s overall strategy. Also, verify that people feel good about doing these things to foster emotional commitment. Then, codify them: translate those critical behaviors into simple, actionable steps that people can implement daily. Next, select groups of employees primed for these few behaviors—those who will respond strongly to the new behaviors and are likely to implement and spread them.

 

 

At an Asian banking company, rapid inorganic growth had led to diverse working styles across different units and geographies. To focus on improving teamwork, customer outcomes, and the ability to create synergies, the CEO and management embarked on a cultural evolution program. They focused on just three critical behaviors: going the extra mile to delight customers, valuing performance over seniority, and supporting one another. They then translated these three general behaviors into specifics for each area of ​​the company. Delighting customers, for example, meant that customer service staff collaborated with colleagues to resolve customer issues and prioritized implementing process improvements that impacted customer outcomes. For all three behaviors, management recognized and celebrated examples of individuals who went the extra mile. Senior leaders acted as role models, explicitly demonstrating these three new behaviors. The company also identified influential frontline, customer-facing employees who could demonstrate these new behaviors in action.

 

 

4. Implement your authentic informal leaders. Authority, which comes with a formal position, should not be confused with leadership. Leadership is a natural attribute, exercised and demonstrated informally, regardless of title or position on the organizational chart. Because authentic informal leaders, present in all organizations, are often not recognized as such, they are frequently overlooked and underutilized when it comes to shaping culture. These leaders can be identified through interviews, surveys, and tools such as organizational network analysis, which allows companies to map complex internal social relationships by analyzing email statistics and meeting records. Once identified, these leaders can become powerful allies who can influence behavior through action. In fact, when companies map their organizations, they can identify leaders who exhibit different leadership strengths (see «Four Types of Authentic Informal Leaders»).

 

Four Types of Authentic Informal Leaders

Every organization has people who influence and motivate others regardless of their title or formal position in the hierarchy. We call them «authentic informal leaders.» They are a powerful resource for disseminating crucial behaviors from the ground up. Among the many types of informal leaders present in organizations, the following are the most common:

 

Pride Promoters are master motivators and catalysts for improvement around them. They are often found in line management roles and understand the motivations of those who work with them. They know how to foster a sense of excellence among others. They are found at all levels of the hierarchy; some of the most effective Pride Promoters are near the front line, where they can interact directly with customers and employees. Pride Promoters typically have a deep understanding of the culture and the behaviors most likely to lead to improvement.

 

Exemplary individuals are role models. They embody vital behaviors or skills, and others pay attention to them. They are highly respected and influential among peers at middle and upper management levels.

 

Networkers are hubs of personal communication within the organization. They know many people and communicate with them freely and openly. They serve as bridges between people who might not otherwise share information or ideas. If you want an idea to go viral in the company, involve your networkers.

 

Pioneers enthusiastically embrace new technologies, processes, and ways of working and experiment with them. Involve them in your performance pilots or whenever you want to demonstrate an impact quickly.

 

At a major oil company, an informal leader named Osama became known as the «turbo collaborator.» His official role gave him very little formal influence. But when he started working at the refinery, he walked the plant with the engineers, maintenance technicians, and operators, taking copious notes. As a result, he got to know everyone and forged cross-disciplinary relationships. Whenever someone wanted to know how the place really worked, they would talk to Osama, who either had the answer in his notebook or knew the right person to ask. When the company created a collaboration program between operations and maintenance, with the goal of fostering teamwork to improve plant reliability, it knew it needed Osama at its center. He connected people, defined templates to encourage collaboration, and captured success stories. Identifying, engaging, and supporting these informal leaders allows companies to leverage their talent and drive the company’s transformation efforts.

 

5. Don’t let your formal leaders get away with it. Most organizations tend to relegate culture to the HR silo. But leaders in all areas of the company are critical to safeguarding and promoting desired behaviors, energizing personal feelings, and reinforcing cultural alignment. The signal of emotional commitment sets the tone for others to follow. If employees perceive a discrepancy between the culture an organization promotes and the one its formal leadership follows, they will quickly distance themselves from the advertised culture and simply mimic the behavior of their superiors. Those at the top must demonstrate the change they want to see. This is also where the few critics come into play. A handful of capable leaders need to step up to initiate the process.

 

 

When Jim Rogers was CEO of GE Motors in Fort Wayne, Indiana, he was frustrated

that his senior leadership group, composed of more than 15 leaders, rarely functioned as a «real team.» As Jon Katzenbach and Douglas K. Smith describe in *The Wisdom of Teams: Creating the High-Performance Organization* (Harvard Business School Press, 1993), a real team is one with a high level of emotional commitment; leadership roles shift freely among members based on their skills, experience, and the challenges of the moment, rather than on any hierarchical position. Team members hold each other accountable for the quality of their collective work.

 

Interestingly, at GE Motors, members of the senior leadership group often demonstrated true team capabilities while managing their individual business units and functions. Therefore, Rogers decided to find ways to divide them into sub-teams of three or four members to address specific organizational problems facing the larger group. Over time, he combined the sub-groups to adapt to emerging problems. By working in different sub-group environments, the executives developed camaraderie, which in turn improved the effectiveness of the group as a whole.

 

6. Link behaviors to business objectives. When discussing feelings, motivations, and values—vital elements of a strong culture—the conversation often veers into abstractions. It can then stray too far from what is needed to succeed in the marketplace. Too many employees leave public meetings focused on culture or discussions about values ​​wondering how advice on being better people actually translates to their work. To avoid this disconnect, offer tangible, well-defined examples of how cultural interventions lead to improved performance and financial results. Select behaviors specifically aimed at improving business performance that can be measured over time.

 

Mark Bertolini’s Preventive Disruption

by Jon R. Katzenbach, Gretchen Anderson, and Art Kleiner

An oil company’s effort to reduce maintenance costs at an industrial facility highlights the importance of this approach. Key behaviors included empowerment and sound decision-making. One of the company’s exemplary employees (employees who lead by example) decided it would be a good idea to make costs visible to workers. So, they placed price tags on various machines. These signs inspired behavioral changes related to decisions about repairing or replacing equipment. Workers and managers began recommending repairing expensive equipment instead of replacing it. The company celebrated and publicized the cost savings identified by employees. These behaviors led to a shift in focus and mindset. When an employee noticed that fans were cooling the machinery during the winter, they felt confident enough to point it out and ask if it was necessary. It turned out it wasn’t, and as a result, the company saved $750,000 annually in energy costs.

 

7. Demonstrate impact quickly. We live in an age with a notoriously short attention span. This applies to both organizational culture and people’s media consumption habits. When people hear about new, high-profile initiatives and efforts and don’t see any related activity for several months, they disengage and become skeptical. That’s why it’s crucial to demonstrate the impact of cultural initiatives on business results as early as possible. One effective way to do this is to organize performance pilots—high-profile demonstration projects. Pilots are relatively low-risk initiatives that introduce specific behaviors that can then be evaluated. They are often based on a panel that defines the desired impacts, the tactics used, and the specific metrics to be employed.

 

When Bell Canada first explored using new frontline behaviors to improve its customer service and profitability, there were far more skeptics than believers among management. There simply wasn’t any numerical proof that the tactics worked. So, CEO Michael Sabia decided to implement a pilot program in a sales unit near Toronto. The trial sponsors set a tight eight-month timeframe and developed realistic methods to measure behavioral change, customer reactions, and actual sales and margin performance. With positive results in these areas—a 29% increase in customer satisfaction in retail stores and a 31% increase in call revenue in call centers—the company accelerated the rollout of these frontline initiatives across different geographies, functions, and business units.

 

8. Use cross-organizational methods to go viral. Ideas can spread virally across departments and functions within an organization, from both the top and the bottom. One effective way to disseminate ideas is through social media: blogs, Facebook or LinkedIn posts, and tweets—not from senior management, but from some of the authentic informal leaders mentioned in Principle 4.

 

By now, it’s widely known that social media can be more effective at spreading information, news, and music than traditional media. The same is true for critical behaviors. People are often more receptive to changes in «the way we do things» when these changes are recommended or shared by friends, colleagues, and other associates. This kind of credible social proof is more convincing than similar testimonials from someone whose job is to sell something.

 

Just as viralizing content is an art, viralizing behavior is an art. For example, in a model we’ve successfully tested in various situations, a company starts with a few carefully selected groups of 12 to 15 informal leaders in three or four different areas of the business. After several weeks, another 10 to 15 informal leadership groups are created in each business unit. After about three months, the existing groups are encouraged to expand and incorporate new members. After another three to six months, the groups gain greater autonomy and can control their own growth. Meanwhile, the company facilitates connections between the groups to share learnings and perspectives. As the behavior spreads, company leaders observe increased performance, as well as recognition from peers and leadership.

 

9. Align programmatic initiatives with behaviors. We’ve emphasized the role informal leaders can play in making ideas go viral. But it’s also important to align the new cultural direction with existing ways of doing business. Informal mechanisms and cultural interventions should complement and integrate with the more common formal components of the organization, not operate in contradiction with them. By providing the structure within which people work—through disciplines such as organizational design, analysis, human resources, and lean process improvement—the formal organization provides rational motivation for employee actions, while the informal organization facilitates the emotional commitment that characterizes peak performance.

 

The United States Marine Corps offers a classic example of integrating formal and informal leadership efforts. The «rule of three» dictates how Marines design their organizations and projects, and how they execute hierarchically. (Three squads form one of three divisions, which in turn form one of three battalions.) Formal leaders of these units are expected to know the intent of the officer two levels above them and to report any orders or situations they perceive as inconsistent with or conflicting with that intent. But informal leaders also exist: each of the four members of a frontline rifle team is prepared (and expected) to take the lead when the formal leader becomes incapacitated or loses their dominant position. This means that informal leaders also need to know the intent of that officer two levels above them. Integrating informal norms with formal structures facilitates the timely adjustments on the battlefield that have been so useful to the Marine Corps for more than 200 years.

 

 

10. Actively manage your cultural situation over time. Companies that have had great success working with culture—we call them “cultural superstars”—actively monitor, manage, nurture, and update their cultural forces. Why? As we mentioned at the beginning, when aligned with strategic and operational priorities, culture can provide hidden sources of energy and motivation that can accelerate change faster than formal processes and programs. Even if you have a highly effective culture today, it might not be enough for the future.

 

 

 

Southwest Airlines is an example of a company with a proven track record, whose culture has been carefully cultivated over time. Famous for its long-term success in an industry where even the largest companies frequently fail, Southwest has been driven for 40 years by a deep sense of pride among its employees. Southwest has found that building an environment that prioritizes its employees over customers and owners fosters a sense of emotional commitment and pride that delivers excellent customer service. But at Southwest, the work on culture never ends. Just as the airline’s strategy, tactics, and technologies have evolved to adapt to a changing external environment, specific HR practices, including informal behaviors, have changed over time.

 

Living in Your Culture

While challenging, multidimensional, and often difficult to manage, a company’s cultural landscape constitutes a powerful set of emotional resources. As with other resources—human, technological, and financial—it is the responsibility of leaders to strive to make the most of it.

 

To a certain extent, culture can be compared to natural forces like the wind and tides. These elements are present in the background, sometimes unnoticed, sometimes obvious. Endowed with immense power, they can hinder plans and inhibit progress. They cannot be controlled or radically altered. But if you respect them and understand how to harness them to their fullest potential, if you work with them and tap into their hidden power, they can become a source of energy and provide powerful support.

 

The best way to begin is to ask yourself a series of questions: What are the most significant emotional forces that determine what your people do? What behavioral changes would be most important to meet strategic and operational imperatives? Who are the authentic informal leaders you can recruit? And what can you and your fellow senior leaders do differently to highlight and reinforce those critical behaviors?

 

Of course, you shouldn’t plan for dramatic overnight results. Expect evolution, not revolution. One of the challenges of working with culture is that, as we’ve noted, it changes gradually—often too slowly for leaders facing dynamic competitors. That’s the bad news. The good news? If you approach culture with respect and intelligence, as an environment in which you and your company operate, you can use it to boost your competitiveness. There’s no better time than now to start.

 

 

 

 

Power Dynamics at Work [Manager’s Guide]

The following contribution comes from the DISC website, which defines itself as follows: DISC is the best-selling, non-judgmental personality and behavioral assessment, used by more than one million people each year to improve teamwork, communication, and productivity.

It is authored by Avery Harris-Gray, who writes about leadership and emotional intelligence.

 

 

 

Power dynamics at work manifest themselves when managers provide feedback to employees.

 

Power dynamics at work influence communication patterns, feelings of psychological safety, and organizational culture. Negative experiences with power dynamics at work can cause stress and high employee turnover.

 

In this article, we will explore the different types of power dynamics at work. We will also analyze how managers can create positive power dynamics instead of a toxic environment.

 

Key Findings

 

Simple definition of power dynamics: How power is distributed and experienced among people in a group.

 

Types of power dynamics at work include: legitimate, reward, coercive, expert, referent, informational, ecological, and connection.

Power can be formal (such as a title) or informal (such as a cultural privilege). People can use power in both positive and negative ways.

 

Power dynamics shape company culture, communication, collaboration, morale, and employee retention. What are power dynamics?

 

Power dynamics refer to the ways in which power is distributed, exercised, experienced, and negotiated

within a particular social or organizational context. They involve the relationships and interactions between individuals, groups, or entities where one party possesses or exerts influence or authority over others.

 

We sometimes think of power as a quality that a person either has or doesn’t have. However, power is not something that can be possessed; it is not static. Since power exists between people, it is a constantly changing force; after all, that is what the word «dynamic» means.

 

Therefore, when we talk about power, we are referring to interpersonal relationships. Power is always relative. Power is always relational.

 

Types of Power Dynamics

Power dynamics in the workplace can be formal or informal, positive or negative.

 

Formal vs. Informal Power

 

Formal power comes from a person’s title or position in the organizational hierarchy.

 

Informal power arises when a person’s influence comes from sources other than their title. This can include a persuasive personality, seniority or experience, cultural privilege, strong relationships, and so on.

 

 

 Positive vs. Negative Power

 

Power can be positive, such as using your influence to build a more equitable work culture.

Power can also be negative, such as harassment or abuse.

 

Within these broader categories, there are many types of power dynamics. These include:

 

Legitimate power: The authority granted by an organization.

Reward power: The ability to reward someone.

Coercive power: The ability to punish someone.

Expert power: Possessing skills and knowledge.

Referent power: When you have earned respect and a reputation for trustworthiness.

Informational power: Having access to or controlling the distribution of information.

Ecological power: Control over the physical work environment, directing how work will be done, what tools will be used, and how the group will work.

Connection power: Based on who you know, your networks, and relationships with influential people.

 

Sources: Jim Hoar, University of Minnesota; French and Raven; Morton Deutsch

 

Examples of Power Dynamics in the Workplace

Power dynamics in the workplace can manifest in a variety of ways. In fact, it can be difficult to imagine situations in which they don’t manifest in some way, whether positive or negative.

 

Examples of Negative Power Dynamics in the Workplace

In a team meeting, the manager consistently dominates the discussion, dismissing or minimizing the contributions of junior members.

Colleagues deliberately withhold important information or resources from others, exerting control and undermining collaboration.

A new employee questions an established workflow, causing resistance among more experienced colleagues. They see the change as a threat to their power.

 

Examples of Positive Power Dynamics in the Workplace

Power is often easier to spot when it is used negatively. However, power dynamics can also contribute to positive change.

 

Mentoring and Coaching: A more experienced employee supports a less experienced employee in gaining influence and developing skills.

 

Delegation and empowerment: A team leader distributes power and authority for decision-making. Inclusive decision-making: Senior management incorporates employee input into their decisions.

Recognition and appreciation: People in positions of power publicly acknowledge the contributions and achievements of others.

 

When used responsibly and ethically, power can be a positive force for transformation, driving innovation, engagement, and growth within organizations.

 

Power dynamics at work affect virtual meetings.

 

Understanding how power dynamics affect the workplace.

 

Power dynamics influence many workplace experiences:

 

 

Company Culture

 

In a workplace where power is centralized at the top, employees may feel discouraged from contributing their ideas and disconnected from the overall mission.

 

Conversely, in organizations where power is distributed more equitably or where those in power use it constructively, employees feel more valued and motivated to contribute to the work culture.

Communication

 

Power imbalances can influence communication patterns in the workplace. For example, employees may be afraid to speak openly, or someone may withhold information to maintain power.

 

In environments where leaders concentrate power at the top, communication tends to flow in only one direction. Directives and decisions flow downward, with little opportunity for input or feedback from lower-level employees.

 

Good communication involves sharing information openly and receiving feedback from everyone. This can help reduce the negative impact of power differences on communication. Collaboration

 

Organizations with centralized decision-making can stifle collaboration, as employees feel discouraged from challenging authority or sharing innovative ideas.

 

In places where people share power and involve everyone in decisions, collaboration tends to flourish. People feel empowered to share their perspectives and skills.

 

Employee Engagement and Retention

 

In environments characterized by high levels of power imbalance, employees may feel disengaged, demotivated, and disillusioned with their work.

 

In workplaces where employees feel empowered, valued, and respected, they are more likely to be engaged in their work. They are also more committed to the organization’s goals.

 

How to Create Positive Power Dynamics in the Workplace

Choose Managers Wisely

When companies need to fill a management position, they may look to promote the highest-performing employee on that team. The top salesperson becomes a sales manager. The most skilled software developer begins managing the development team.

 

“In many companies, the path to promotion and greater responsibility is only achieved by managing others,” writes Deb Liu, a Silicon Valley executive. To advance your career, moving from individual contributor to manager is often the option presented. “The problem, of course,” says Liu, “arises when you’re asked to take on those responsibilities without understanding the differences between management and your previous role.”

 

When hiring managers, assess which employees might be ready to become managers. Consider both technical competencies and interpersonal skills. How has this person demonstrated that they will prioritize empowerment, collaboration, and inclusion? What is their approach to conflict? Have they demonstrated the ability to communicate honestly and transparently?

 

Good managers are role models for their team members. Their behavior sets the tone for the team culture. Choose managers who can contribute to positive power dynamics in the workplace, and they will inspire employees to do the same.

 

 

Offer or seek interpersonal skills training

If you were recently promoted to manager, congratulations! As you probably know, much more than your job title has changed. Your work is now being directed by others in a new way.

 

In addition to setting project-based goals, be sure to dedicate time to defining your values ​​and aspirations as a leader. Remember that tasks like coaching and culture development are not add-ons or perks; they are essential and fundamental responsibilities of your new role.

 

According to the authors of The Leadership Pipeline:

 

“Although this may seem like an easy and natural leadership transition, it is often one that people stumble over… they make the job transition from individual contributor to manager without making a transition based on behavior or values.”

 

Managers must have both the job skills and the soft skills necessary to lead a team. A promotion to management should include management skills training. Without these skills, new managers may feel insecure and overcompensate for that feeling by engaging in negative power dynamics.

 

Create a healthy work culture. Be proactive in addressing any abuse of power, information hoarding, or cliques. Set clear expectations about how people should share power and information on your team. Establish boundaries regarding acceptable behavior and provide guidance on how to address any conflicts or concerns.

 

An effective manager empowers team members. Encourage employees to take ownership of their work and provide them with opportunities for professional growth. Regularly solicit feedback on how the team experiences power dynamics in the workplace.

 

Recognize and reward behavior that contributes to positive power dynamics. Praise what you would like to see more of, such as collaboration and information sharing.

 

And most importantly, lead by example: model transparency, fairness, integrity, and respect. Hold your employees, colleagues, and managers accountable for building a healthy work culture.

 

 

Encourage open communication.

As a manager who communicates with employees, you can model open communication in a way that contributes to positive power dynamics.

 

Practice active listening by giving employees your full attention and trying to understand their perspectives without judgment.

Openly share information about the organization’s goals, challenges, and decisions, and provide the context behind those decisions to help employees understand the rationale.

Create opportunities for employees to share ideas and express their concerns.

When giving feedback to employees, consider how power dynamics might influence this sometimes stressful interaction. Focus on specific performance issues with practical suggestions for improvement.

Publicly acknowledge employees’ contributions.

You can also model positive power dynamics when communicating with your fellow managers and with the organization’s leadership. Many of the suggestions above (active listening, sharing information, celebrating success) also apply to peer interactions.

 

By dedicating time to building cross-departmental relationships, you contribute to a culture of trust and balanced power within your organization.

 

Power Dynamics Reflected in One-on-One Meetings Between Managers and Employees

 

Avoid Silos

When groups or departments are isolated from one another, it rarely bodes well for positive power dynamics in the workplace. Silos can contribute to negative power dynamics in several ways, including:

 

Concentration of power in certain departments

Competition for resources or hoarding

Lack of transparency, leading to a lack of accountability

Communication breakdowns

Inhibition of collaboration

Resistance to change

A fractured culture, with loyalty to the team rather than to the overall mission of the organization

Managers may have an unspoken incentive to maintain silos as a way to retain power. However, if managers want to improve power dynamics at work, they must create a healthier culture for their teams. They need to work together to break down silos. This can be addressed in many ways:

 

Reinforce the overall mission of the organization.

 

Promote cross-departmental collaboration by creating opportunities for interdisciplinary projects, working groups, or committees.

 

Identify and eliminate communication barriers between departments.

 

Clarify roles to ensure there is no duplication of effort. This also helps prevent turf wars and the demoralizing experience of performing redundant work. Reward collaborative behaviors.

Offer cross-departmental training to foster a more comprehensive understanding of the organization’s operations.

Align incentives with organizational goals rather than individual departmental objectives.

Lead by example and evaluate and adjust regularly.

Consider power dynamics during meetings.

 

«Every meeting is an opportunity to strengthen a group’s power and transform power dynamics,» according to the Interaction Institute for Social Change. «Every element of meetings needs preparation so that power and decision-making are transparent.» They suggest considering these questions when organizing a meeting:

 

Who is attending the meeting and who is not? Why or why not? What’s on the agenda, and what shouldn’t be discussed? Who will make the decisions stemming from what’s discussed (both in and out of the room)? Who plays which roles, and why? What work will be done outside of the meeting? What information from the meeting should be shared, and with whom?

 

Leadership consultant Jim Hoar also emphasizes the importance of meetings in shaping an organization’s power dynamics.

 

For planning and strategy meetings, he suggests: «Ask what impact the ‘boss’s’ presence will have. What is the purpose of the meeting? Will attendees feel safe and comfortable expressing themselves with that person in the room?» In this situation, the boss could be you or someone higher up.

 

 

If the team would benefit from discussion time without the CEO present, discuss it with that person beforehand. Hoar suggests language like, “Hi, I’m preparing for meeting X. I’m thinking about the impact of your presence in the room on topic Y. How about giving us the first half hour to brainstorm/contribute before you arrive?” If you are the CEO, you can be proactive in offering this time to your team.

 

Develop self-awareness

You, as a leader, and those you are training for leadership, need to develop self-awareness around power dynamics. As a manager, you have the formal or legitimate power that comes with your role. You also have the power to reward and punish, the power to share or withhold information, and many other forms of power.

 

Even if you feel you don’t have much power at work, it’s important to really see where you fit into your workplace’s power network. Many people benefit from power structures without realizing it. Furthermore, many people miss opportunities to leverage their power and influence to make a positive impact.

 

Therefore, a manager’s first task is to understand their blind spots (we all have them!) and personal biases (we all have those too!). Try a power mapping exercise to uncover the overall power dynamics in your company and where you fit in.

 

Self-aware managers recognize the impact of their actions. This awareness allows them to adjust their approach to foster positive power dynamics and build trust with their team members. After making a decision, observe what happens next. Who was affected, and how? What changed, and how was that change experienced? You don’t have to do this every time, but an occasional «post-decision audit» can be fruitful in understanding your power.

 

Self-awareness enables managers and leaders to manage their emotions and reactions effectively, especially in challenging or high-pressure situations. By maintaining composure, they can address power dynamics with sensitivity and professionalism, minimizing conflict and fostering constructive dialogue.

 

Managers can use self-awareness to align their values ​​with their actions. This kind of integrity sets a positive example for others and contributes to a culture of transparency, fairness, and accountability in the workplace. If you haven’t taken the time to articulate your values, you are less likely to invoke them in your actions.

 

Personality Types and Power Dynamics

Personality types play a significant role in shaping power dynamics in the workplace. This is because your personality type is reflected in every interaction you have with your coworkers.

 

Tools such as the DiSC assessment can improve workplace power dynamics by developing individual self-awareness and interpersonal communication skills.

 

For example, it can be helpful to learn how people with each DiSC style typically influence others.

 

A person with an «i» style is likely to use charm, optimism, and energy when they want to influence others. A person with an S style is more likely to use patience and empathy.

A person with a C style may use logic and demanding standards.

People with a D style are likely to resort to assertiveness and competition in these situations. These natural tendencies have their advantages, but also their disadvantages when overused.

 

Fostering a positive work culture involves addressing power imbalances, promoting equity and accountability, and providing opportunities for employee engagement and growth. Through personality assessments and other tools, managers can commit to building healthier power dynamics within their teams.

 

This information has been prepared by OUR EDITORIAL STAFF