IMPACT OF POWER AND

POLITICS
AT WORKPLACE
 POWER
The capacity or ability to direct or
influence the behavior of others or the
course of events.
 POLITICS
The art of influencing people to achieve a common
goal.
TYPES OF POWER

Reward power - Ability to provide positive outcomes to others.

Coercive power - Ability to punish others.

Legitimate power - Authority that comes with a position.

Referent power - Ability to influence others based on their admiration or respect

for the power-holder.

Expert power - Power that comes from possessing superior knowledge or skills
 Source of power
1)Hierarchical position Executive Level

Senior Management

Middle Management

Individual Contributors
2) Expertise in workplace

Soft Skills
Ad
l ap
a
ic s e Co tab
n
h rti Le ntin ility
c
Te xpe ar u o a
n i u s nd
E ng
3) Personal relationships

Mentorship
Friendships
Relationships

Family
Relationships
4)Control over resources
Employee
motivation and
engagement

Decision-
Job satisfaction
making
Impact

Innovation and Productivity

creativity and efficiency
Power & Influence

Hierarchical Informal
Influence Networks

Perception Decision
of power Control
 CONFLICT AND POLITICS
PYRAMID
SHAPED LIMITED
ORGANIZATION RESOURCES
STRUCTURE

SUBJECTIVE
FACTORS REALITIES OF UNEQUAL
STANDARD CONTRIBUTING POLITICAL POWER
PERFORMANCE DISTRIBUTION
TO POLITICS COALITION

ENVIRONMENTAL
UNCERTAINITYAND
SAFEGUARD
TURBULANCE POSITION
 How to Limit the Effects of Political
Behavior in Modern Organizations
• Introducing clear rules
• Measuring performance and not personalities
• Provision of sufficient resources
• Free flow of information and open communication
Case - Tyco International (Misuse of power and
scandal)
About - Tyco designed and produced underwater telecommunications systems, fire
protection, plastics and adhesives, electronic security services, specialty valves
Ethical scandal: The CEO and CFO started to Commingle the assets.

Accounting scandal : Tyco distorted its financials by overstating the results through
misusing acquisition accounting standards.
Unauthorized Bonuses and Loans

Inflated Salaries and Benefits

Misrepresentation of Financial Statements

Corporate Expenditure Misuse

 Tyco's reaction and measures after the scandal

REORGANIZED COMPANY AND CREATED A WEBSITE VITAL TYCO GUIDE TO ETHICAL

IMPLEMENTED SAFEGUARDS VALUES ETHICS REFLECTIONS CONDUCT
WEBSITE
 Case – BharatPe Controversy
• BharatPe hired Pwc for a corporate governance audit.
• The preliminary investigation found some issues
• All suspicious activities were tied to Madhuri Jain Grover.
• BharatPe then appointed PricewaterhouseCoopers (PwC) for a
complete financial investigation, covering:
i. Expenses
ii. Hiring
iii.Approval process
iv.Accounting
v. Any possible financial irregularities.
Outcomes of Investigation
The PwC report's findings led
the BharatPe board
Mr. Grover attempted to sell
his 9.5% stake in the company

Investors rejected both offers