Professional Documents
Culture Documents
HRM SectionB Group6
HRM SectionB Group6
Meaning of Power
The concept of power is quite complex and it is not easy to provide a commonly acceptable
definition. It shall, therefore, be desirable to discuss some definitions of power to reach an
acceptable conclusion. Prof. Morgenthau defines political power as “a psychological relation
between those who exercise it and those over whom it is exercised.” According to
Achwarzenberger “the power is capacity to impose one’s will on others by reliance on
effective sanctions in case of non- compliance”. In the broad sense, power can be defined as
“the ability or capacity to control others and get them to do what one wants them to do and
also to see that they do not what one does not want them to do.”
Sources of Power
When most people think about power, their minds go immediately to the control that High-
level leaders exert from their positions atop the organisational hierarchy. But power extends
far beyond the formal authority that comes from a title (or from having corner office with a
view). Leaders at all levels have access to power; often that power goes unrecognised or
under-utilised. Previous research in this area has identified seven bases of power that leaders
may leverage.
The power of position is the formal authority that derives from a person’s title or
position in a group or an organisation.
The power of charisma is the influence that is generated by a leader’s style or persona.
The power of relationships is the influence that leaders gain through their formal and
informal networks both inside and outside of their organizations.
The power of information is the control that is generated through the use of evidence
deployed to make an argument.
The power of expertise is the influence that comes from developing and
communicating specialised knowledge (or the perception of knowledge).
The power of punishment is the ability to sanction individuals for failure to conform
to standards or expectations.
The power of reward is the ability to recognise or reward individuals for adhering to
standards or expectations.
Leaders can be more effective when they emphasise the power of relationships and the power
of information, and also develop their other available bases of power. Make relationships a
priority. Identify the people with whom you need to establish or develop a relationship. Your
ability to use the power of relationships will be compromised if you are not connecting with
the right people. Invest time and energy into your existing relationships. Seek to understand
others better and acknowledge the needs of others in order to build the social capital required
to influence others now and in the future. Repair damaged relationships and the image others
may have of you. Look for ways to reestablish trust with others through face-to-face
interaction and the sharing of honest feedback.
Meaning of Politics
The term politics originates from Greek word "polis". Aristotle opines that it is "zoon
politikon", which means political animal and suggests that man can only reside in a group
(i.e public) that necessarily leads to politics. Politics is the study of influence and the
influential. Influence is measured on the basis of the number of shares one or a group has in
the preferred values or attributes. The more values or attributes shared, the greater the
influence.
One of the other definition which serves to explain it is “politics is the process of seeking and
using power”. Politics can simply be defined in three ways:
Firstly, it attempts to discover the general principles, formation and functioning of
government.
Secondly, it is concerned with people and the way in which they make decisions and
the way those decisions are reached.
Thirdly, politics is that part of the social sciences which treats the foundations of the
state and the principle of government, governmental, social and economic programs,
international relations, organizations and cooperation.
Politics goes beyond the activity of government, the political parties and the politicians.
Politics is a universal phenomenon that is; it is present in all human organisation such as the
family, trade unions, corporations, universities, etc. In all these organizations, politics is
characterised by struggle for power and influence, conflict, bargaining, reconciliation,
resolution and consensus.
The foregoing is an indication of the extent to which politics or the use of power pervades
organisational life. When individuals interact there is power exchange (clash of power
attempts) with attendant conflicts that lead to more and more exchange of power attempts.
This is the basis of politics. Politics in organizations means those curious irrational behaviour
plus the more rational (official) ones that take place in organizations. Political behaviour in
organisation means employees behaving politically. This includes attitudes of formal
compliance with orders and rules, as well as those actions of a political nature lying outside
the official relations of power. Included among these attitudes are those activities that are not
required as part of one's fontal rote in the organisation, but that influence or attempt to
influence: the distribution of advantages and disadvantages within the organisation. Also
included are' patterns of learning and experiences in the workplace by which the worker
acquires political behaviour (political socialisation ). This process of socialisation could be
found to lie outside formalised codes of conduct, involves unstructured situations and may
embrace behaviour that could be termed illegitimate. Employees can use blackmail, gossips,
rumours, backbiting , concealment of vital information, trading of favours, and leakage of
damaging information to the media to achieve one aim or the other. At times, they engage in
promoting their self-image, or form or join coalitions to promote their interests. The essence
of political behaviour, invariably, is to cope with the complexity of the organisational
environment.
The thoughts on politics are various in natures and attitudes human nature to attain power
discovered a way “politics”. As Merriam Webster defines it as "competition between
competing interest groups or individuals for power and leadership". People who use political
relationships in the workplace often wield power that is either disproportionate to their
position, or enhances their power beyond the position they hold. But where does this power
come from? Why do some people exert tremendous influence, while others can't even lay
claim to the power that comes with their title? Is political power always exploitative, or can it
be moral and constructive?
The state is a particular kind of society, a group sovereign over a specific territory, and the
balance of powers manifesting this sovereignty is the political system. The political system
may not encompass all of society, and indeed may be restricted to a limited sphere.
Nonetheless, the type of political system and type of society are harmonious. The political
system is an aspect of the social field and as that field manifests a particular form of power,
the political system will be its image. The power to influence others comes with a price; the
responsibility to act ethically. While the use of political power for selfish ends may seem
beneficial to the individual in the short term, it is ultimately self-defeating, as it erodes trust,
commitment, and loyalty. Ethical use of political power can motivate people to work together
to accomplish goals that provide individual and collective benefits. Taking an honest look at
your own motivations is a first step towards building and using political power constructively
and ethically.
Example of Infosys
India’s best-known software exporter is facing an impossible trinity of sorts: Out of sales,
margins and governance, Infosys can hit only two goals at a time. Or so it would appear from
yet-to-be-proven whistle-blower allegations against Chief Executive Officer Salil Parekh and
Chief Financial Officer Nilanjan Roy that they used hyper-aggressive accounting practices to
hide from investors the lack of profitability on large deals. The stock tanked as much as 16
per cent in Mumbai after the letter was published by the Deccan Herald.
It’s a deja vu moment for co-founder and non-executive Chairman Nandan Nilekani, who
returned to the Bangalore-based company two years ago during a previous crisis — sparked
by a set of different anonymous charges against Parekh’s predecessor, the former SAP
executive Vishal Sikka, who was accused of impropriety in a $200 million acquisition in
Israel. That scandal culminated in an unseemly spat between Sikka and the board on one side
and N R Narayana Murthy, another of the company’s co-founders, on the other. Sikka
resigned in August 2017. The new board exonerated him, but by then the damage was done.
It’s been a slow road to recovery. At a one-year-forward price-to-earnings multiple of 20
times at the end of September, Infosys’s valuation is now almost 50 per cent higher than at
the depth of the last crisis. The risk is of a repeat of that slump.
If investors start to believe that the culture at the software services provider, once seen as
India’s most transparent company, is beyond redemption, expect a durable deepening of the
10 per cent discount at which Infosys traded against larger rival Tata Consultancy Services,
or TCS, at the end of last month. Since the company’s American depository receipts trade in
New York, there’s also the threat of expensive class-action suits. The allegations are being
evaluated by the audit committee and the board. The CEO and the CFO won’t be a part of
those deliberations. Whatever the truth of the whistle-blower’s complaints, another protracted
governance saga could be just as damaging. It might not be a bad idea for a buyout fund to
step in and take Infosys out of the glare of the public markets. As a private company, it could
rediscover its moorings and find a new purpose in a digital world where clients increasingly
want nimble, cloud-based, on-demand software, rather than clunky, on-premise enterprise
solutions. At $12 billion in the fiscal year that ended in March, Infosys revenue is nowhere
close to Sikka's 2020 target of $20 billion. An operating margin of less than 23 per cent was
lower than the near 26 per cent at TCS, according to data compiled by Bloomberg. After a
period of rehabilitation, Infosys should be able to deliver all three targets: sales growth,
margins and good governance. Some private time could be just what it needs to get fixed.
GROUP- 6
Sami Sharma 19PGDM107
Priyanka Gadia 19PGDM098
Rohan Shah 19PGDM102
Madhav Upadhyay 19PGDM085
Aditya Vyas 19PGDM065